nep-tur New Economics Papers
on Tourism Economics
Issue of 2021‒11‒22
one paper chosen by
Laura Vici
Università di Bologna

  1. Diversion of Tourism Flows in the Asia & Pacific Region: Lessons for COVID-19 Recovery By Mr. Robin Koepke; Vybhavi Balasundharam

  1. By: Mr. Robin Koepke; Vybhavi Balasundharam
    Abstract: The COVID-19 pandemic prompted a collapse in international tourism, severely impacting the tourism-dependent economies in the Asia & Pacific region. Once countries start reopening, tourism diversion effects could accelerate the recovery in countries that establish themselves as more attractive travel destinations than competitors. We investigate the impact of previous shocks in tourism competitor countries on visitor inflows, with a particular focus on tourism-dependent Pacific Island Countries (PICs). We find that PICs were generally resilient to external shocks and benefitted from diversion effects for certain types of shocks. For example, the share of departures from Australia to PICs increased by 12 percent during the SARS outbreak. We then derive policy implications for the post-COVID-19 revival of inbound tourism to PICs and lessons for the future.
    Keywords: tourism diversion effect; tourism recovery; tourism sector; tourism determinant; tourism revenue; tourism development; Tourism; COVID-19; Communicable diseases; Asia and Pacific; Pacific Islands; Global
    Date: 2021–08–20

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