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

  • 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)

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
File Function: First version, 2006
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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
Date of revision:
Handle: RePEc:hai:wpaper:200602
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  1. 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.
  2. 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 531-54.
  3. 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.
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