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

Author

Listed:
  • Carl Bonham

    () (Department of Economics, University of Hawaii at Manoa)

  • 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

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 Hawaii's 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.

Suggested Citation

  • 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.
  • Handle: RePEc:ewc:wpaper:wp87
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    References listed on IDEAS

    as
    1. Carl Bonham & Byron Gangnes, 1995. "Intervention Analysis with Cointegrated Time Series: The Case of the Hawaii Hotel Room Tax," Working Papers 199505, University of Hawaii at Manoa, Department of Economics.
    2. Nicholas G. Rupp & George M. Holmes & Jeff DeSimone, 2005. "Airline Schedule Recovery after Airport Closures: Empirical Evidence since September 11," Southern Economic Journal, Southern Economic Association, vol. 71(4), pages 800-820, April.
    3. 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.
    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.
    5. Enders, Walter & Sandler, Todd & Parise, Gerald F, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Wiley Blackwell, vol. 45(4), pages 531-554.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. repec:spr:qualqt:v:52:y:2018:i:3:d:10.1007_s11135-017-0527-2 is not listed on IDEAS
    2. repec:taf:defpea:v:27:y:2016:i:6:p:854-870 is not listed on IDEAS
    3. repec:wyi:journl:002100 is not listed on IDEAS
    4. Andrew Kato & James Mak, 2010. "Technical Progress in Transport and the Tourism Area Life Cycle," Working Papers 2010-13, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    5. 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.
    6. 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.

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