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The Impact of 9/11 and Other Terrible Global Events on Tourism in the U.S. and Hawaii

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Author Info
Carl Bonham () (Department of Economics, University of Hawaii at Manoa)
Christopher Edmonds (Department of Economics, University of Hawaii at Manoa, Research Department, East-West Center, Honolulu, HI)
James Mak () (Department of Economics, University of Hawaii at Manoa)

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Abstract

This paper reviews recent trends in travel and tourism in the U.S. and Hawaii to ascertain how the terrorist attacks of 9/11 and subsequent terrible global events affected their tourism flows and the manner and pace of their recovery. We note that tourism in the U.S. has not fully recovered from 9/11 and other international shocks; indeed recovery of international travel to the U.S. may be a long way off. By contrast, Hawaii tourism is enjoying robust growth in the aftermath of 9/11 as growth in tourist arrivals from the U.S. mainland has more than offset declines in Japanese and other international visitors. We suggest that Hawaiis current tourism boom is in part explained by the diversion of U.S. travel from foreign travel. The paper demonstrates the usefulness of vector error correction models to generate dynamic visitor forecasts which we use to ascertain whether tourism in Hawaii has fully recovered from 9/11 and other terrible international events. The paper considers policy options for facilitating the recovery of international tourism to the U.S.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_06-2.pdf
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File Function: First version, 2006
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Publisher Info
Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200602.

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Length: 33 pages
Date of creation: 2006
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Handle: RePEc:hai:wpaper:200602

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Related research
Keywords: Tourism; Terrorism; Impact; Recovery;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Scott S. Blunk & David E. Clark & James M. McGibany, 2006. "Evaluating the long-run impacts of the 9/11 terrorist attacks on US domestic airline travel," Applied Economics, Taylor and Francis Journals, vol. 38(4), pages 363-370, March. [Downloadable!] (restricted)
  2. Nicholas G. Rupp & George M. Holmes & Jeff DeSimone, . "Airline Schedule Recovery after Airport Closures: Empirical Evidence since September 11th," Working Papers 0207, East Carolina University, Department of Economics. [Downloadable!]
    Other versions:
  3. Bonham, Carl S & Gangnes, Byron, 1996. "Intervention Analysis with Cointegrated Time Series: The Case of the Hawaii Hotel Room Tax," Applied Economics, Taylor and Francis Journals, vol. 28(10), pages 1281-93, October. [Downloadable!] (restricted)
    Other versions:
  4. 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. [Downloadable!]
  5. Enders, Walter & Sandler, Todd & Parise, Gerald F, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Blackwell Publishing, vol. 45(4), pages 531-54.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Allison Zhou & Carl Bonham & Byron Gangnes, 2007. "Modeling the supply and demand for tourism: a fully identified VECM approach," Working Papers 200717, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
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