Skip to main content
placeholder image

The effect of levels of air service availability on inbound tourism demand from Asia to Australia

Chapter


Abstract


  • The chapter aims to examine the interrelationships between aviation and Asian inbound tourism demand to Australia. First, the chapter introduces key factors in the economics of tourism demand and the empirical work in assessing the aviation–tourism demand relations. Based on 2005–2016 annual time series data across 12 of Australia’s main Asian markets, a dynamic panel regression model is applied to empirically examine the factors influencing tourism demand including exchange rates and disposable income. Using a generalized method of moments approach, the study accounts for the endogenous relations between levels of international air services availability (proxied by seat capacity) and tourism demand. The results suggest, on average, the generative effect of aviation exists albeit with small magnitude (0.1–0.5% increase in tourism demand per 100,000 additional seat capacity). The chapter concludes with a discussion on the shifting inbound tourism balance toward Asia and the implications for aviation policy to meet the high Asian tourism growth targets.

UOW Authors


  •   Koo, Tay T. R. (external author)
  •   Tan, David
  •   Duval, David Timothy (external author)

Publication Date


  • 2019

Citation


  • Koo, T. T. R., Tan, D. & Duval, D. T. (2019). The effect of levels of air service availability on inbound tourism demand from Asia to Australia. In X. Fu & J. Peoples (Eds.), Airline Economics in Asia (pp. 145-167). Bingley, United Kingdom: Emerald Publishing.

International Standard Book Number (isbn) 13


  • 9781787545663

Scopus Eid


  • 2-s2.0-85064627310

Book Title


  • Airline Economics in Asia

Start Page


  • 145

End Page


  • 167

Place Of Publication


  • Bingley, United Kingdom

Abstract


  • The chapter aims to examine the interrelationships between aviation and Asian inbound tourism demand to Australia. First, the chapter introduces key factors in the economics of tourism demand and the empirical work in assessing the aviation–tourism demand relations. Based on 2005–2016 annual time series data across 12 of Australia’s main Asian markets, a dynamic panel regression model is applied to empirically examine the factors influencing tourism demand including exchange rates and disposable income. Using a generalized method of moments approach, the study accounts for the endogenous relations between levels of international air services availability (proxied by seat capacity) and tourism demand. The results suggest, on average, the generative effect of aviation exists albeit with small magnitude (0.1–0.5% increase in tourism demand per 100,000 additional seat capacity). The chapter concludes with a discussion on the shifting inbound tourism balance toward Asia and the implications for aviation policy to meet the high Asian tourism growth targets.

UOW Authors


  •   Koo, Tay T. R. (external author)
  •   Tan, David
  •   Duval, David Timothy (external author)

Publication Date


  • 2019

Citation


  • Koo, T. T. R., Tan, D. & Duval, D. T. (2019). The effect of levels of air service availability on inbound tourism demand from Asia to Australia. In X. Fu & J. Peoples (Eds.), Airline Economics in Asia (pp. 145-167). Bingley, United Kingdom: Emerald Publishing.

International Standard Book Number (isbn) 13


  • 9781787545663

Scopus Eid


  • 2-s2.0-85064627310

Book Title


  • Airline Economics in Asia

Start Page


  • 145

End Page


  • 167

Place Of Publication


  • Bingley, United Kingdom