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International Handbook on the Economics of Tourism

Edited by Larry Dwyer and Peter Forsyth

This highly accessible and comprehensive Handbook presents a cutting edge discussion of the state of tourism economics and its likely directions in future research. Leading researchers in the field explore a wide range of topics including: demand and forecasting, supply, transport, taxation and infrastructure, evaluation and application for policy-making. Each chapter includes a discussion of its relevance and importance to the tourism economics literature, an overview of its main contributions and themes, a critical evaluation of existing literature and an outline of issues for further conceptual and applied research.
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Chapter 10: Aviation and Tourism

Peter Forsyth


Peter Forsyth Introduction Aviation and tourism are natural complements – for many tourist trips, aviation is the preferred means of travel and for some trips, it is the only means. For many journeys, the services of the air transport and the tourism industries must be consumed jointly. As a consequence, there are many ways in which the two industries impact on one another. Changes in the industry structure of one, such as those which came about due to liberalisation of air transport, have resulted in the stimulation of growth in the other, such as long-haul tourism. Technical progress in aviation has resulted in lower fares which have stimulated tourism growth. Government policies imposed on one industry, such as taxation of tourism, have impacted on the other. In spite of this, the two have rarely been analysed together. The World Tourism Organization has studied the links between the two (WTO 1994), and has convened seminars on the subject (WTO 2000). Some government policy advisory bureaux, such as the Australian Industries Assistance Commission, have examined the policy implications of the links (IAC 1989). The implications of aviation policies for tourism in Europe have been analysed by Papatheodoru (2002). The links between them and the implications for trade in services have also been considered (Findlay and Forsyth 1988), as have their links in the context of microeconomic reform in Australia (Dwyer and Forsyth 1992). There have been some textbooklevel studies which have highlighted the interdependence between the two (see Page 1999). Overall, however, while...

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