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Terrorism and Tourism in the Asia Pacific Region: Is Travel and Tourism in a New World After 9/11?

Author

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  • Christopher Edmonds

    (East-West Center and Department of Economics at the University of Hawaii at Manoa)

  • James Mak

    (Department of Economics, University of Hawaii at Manoa)

Abstract

The paper reviews trends in travel and tourism in selected Asia Pacific countries before and after the terrorist attacks of September 11, 2001 (9/11) to consider the question of whether or not global tourism has fundamentally changed since 9/11. Tourism is an important economic sector in several Asia Pacific countries and is a "fragile" industry in that it is highly susceptible to external shocks such as wars, outbreaks of deadly contagious diseases, incidents of terrorism, and so on. The first part of the paper presents a stylized picture of industry response following terrorist incidents and other major negative shocks to tourism, and reviews international tourist arrivals at selected Asia Pacific destinations. A richer body of data available for Japan and the U.S. allows examination of the extent of substitution between domestic and international travel, and the impact of changed travel behavior on tourist spending. The paper finds that there has been significant substitution of domestic travel for overseas travel by nationals of both countries after 9/11, and that this has had a dramatic impact on the Hawaii tourism market. The paper explores some of the reasons for the differences observed in post-9/11 travel recoveries across Asia Pacific countries.

Suggested Citation

  • Christopher Edmonds & James Mak, 2006. "Terrorism and Tourism in the Asia Pacific Region: Is Travel and Tourism in a New World After 9/11?," Economics Study Area Working Papers 86, East-West Center, Economics Study Area.
    • Handle: RePEc:ewc:wpaper:wp86
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    References listed on IDEAS

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    1. Scott Blunk & David Clark & James McGibany, 2006. "Evaluating the long-run impacts of the 9/11 terrorist attacks on US domestic airline travel," Applied Economics, Taylor & Francis Journals, vol. 38(4), pages 363-370.
    2. Chong Ju Choi & Carla C. J. M. Millar & Caroline Y. L. Wong, 2005. "Knowledge and the State," Palgrave Macmillan Books, in: Knowledge Entanglements, chapter 0, pages 19-38, Palgrave Macmillan.
    3. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12426, December.
    4. repec:wbk:wbpubs:12425 is not listed on IDEAS
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    Cited by:

    1. Carl Bonham & Christopher Edmonds & James Mak, 2006. "The Impact of 9/11 and Other Terrible Global Events on Tourism in the U.S. and Hawaii," Economics Study Area Working Papers 87, East-West Center, Economics Study Area.
    2. Korede Ajogbeje & Oluwatosin Adeniyi & Oludele Folarin, 2017. "The effect of terrorism on tourism development in Nigeria," Tourism Economics, , vol. 23(8), pages 1673-1678, December.
    3. Ahlfeldt Gabriel M. & Franke Bastian & Maennig Wolfgang, 2015. "Terrorism and International Tourism: The Case of Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(1), pages 3-21, February.
    4. Jorge M. L. Andraz & Raúl F. C. Guerreiro & Paulo M. M. Rodrigues, 2018. "Persistence of travel and leisure sector equity indices," Empirical Economics, Springer, vol. 54(4), pages 1801-1825, June.
    5. Manuela, Wilfred S. & de Vera, Manuel J., 2015. "The impact of government failure on tourism in the Philippines," Transport Policy, Elsevier, vol. 43(C), pages 11-22.

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