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Effects of the Sars Crisis on the Economic Contribution of Tourism to Australia

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Abstract:

In a context of uncertainty over traveler security, tourism experienced two major crises in 2003—the Iraq War and SARS. While the relative impacts of a complex array of impacts on travel decision making are almost impossible to dissect, this article explores the economic effects of the SARS crisis on tourism to Australia. Although the crisis resulted in less inbound tourism, it also has lead to reduced outbound tourism. The net economic impacts on the nation depend upon the extent to which cancelled or postponed outbound travel are allocated to savings, to domestic tourism, or to the purchases of other goods and services. Using a computable general equilibrium model of the Australian economy, simulations of the impacts of the events suggest that the net effects were not as severe as were perceived by tourism stakeholders.

Keywords: AUSTRALIA; COMPUTABLE GENERAL EQUILIBRIUM MODELING; DESTINATION MANAGEMENT; ECONOMIC IMPACTS; SARS; TOURISM CRISES

Document Type: Research Article

DOI: http://dx.doi.org/10.3727/154427206779307231

Publication date: September 1, 2006

More about this publication?
  • Tourism Review International is a peer-reviewed journal that advances excellence in all fields of tourism research, promotes high-level tourism knowledge, and nourishes cultural awareness in all sectors of the tourism industry by integrating industry and academic perspectives. Its international and interdisciplinary nature ensures that the needs of those interested in tourism are served by documenting industry practices, discussing tourism management and planning issues, providing a forum for primary research and critical examinations of previous research, and by chronicling changing tourism patterns and trends at the local, regional and global scale.
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