Estimating the economic impacts of tourism growth and special events
by Larry Dwyer (School of Economics, University of New South Wales), Peter Forsyth (Department of Economics, Monash University), Ray Spurr (University of New South Wales, Australia), & Thiep Van Ho (CRC for Sustainable Tourism, Monash University)
The paper provides an overview of some of the main issues that have arisen from the CGE modelling of Australian tourism undertaken by the authors in this CRC funded project. The economic simulations are based on different assumptions about the federal government fiscal policy stance, assumptions about the wage setting environment, and assumptions about the aggregate level of employment. Another set of simulations relate to a comparison of the economic impacts of a representative event using both Input-Output and CGE modelling. The comparison highlights differences in results of event evaluation using I-O and CGE models and provides further support to use of the latter technique and application of cost benefit analysis for governments concerned with efficient allocation of scarce resources to promote tourism development.