Heterogeneity of inbound tourism driven by exchange rate fluctuations: implications for tourism business recovery and resilience in Australia
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journal contribution
posted on 2024-09-18, 23:39authored byWenming ShiWenming Shi, Y Gong, L Wang, Nataliya Nikolova
Quantifying risk spillovers from exchange rates to inbound tourist arrivals by purpose of visit is essential for Australia to take proactive measures to achieve tourism business recovery and resilience after such critical events like the recent bushfires and the COVID-19 pandemic. Using a monthly dataset over the period January 1998–March 2020, this paper calculates the conditional value-at-risk (CoVaR) to evaluate how different types of inbound tourists to Australia respond to exchange rate fluctuations. The empirical results identify inbound tourist arrivals with the highest sensitivity to exchange rate fluctuations, confirming the role of exchange rates in determining inbound tourist arrivals by purpose of visit. Furthermore, these results shed light on provisions of tourism products, services, and infrastructural facilities to satisfy different requirements of Australia’s inbound tourists by purpose of visit, aiming to promote tourism business recovery and resilience in Australia.
History
Publication title
Current Issues in Tourism
Volume
26
Issue
3
Pagination
450-467
ISSN
1368-3500
Department/School
Maritime and Logistics Management, National Centre for Maritime Engineering and Hydrodynamics
Publisher
Routledge
Publication status
Published
Place of publication
London, United Kingdom
Rights statement
Copyright 2022 Informa UK Limited, trading as Taylor & Francis Group
Socio-economic Objectives
270201 Management of gaseous waste from transport activities (excl. greenhouse gases)