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Macro Effects of Tourism in Victoria, Australia: A Nonlinear Input-Output Approach

Regional and Urban Economics Research Unit of the Department of Economics at the University of Queensland in Queensland, Australia

Ari Gamage

School of Hospitality, Tourism, and Marketing at Victoria University of Technology in Victoria, Australia

This article assesses the economic impacts of tourism on the Victorian economy in Australia using a modified version of the input-output model in which the linearity assumption is partially relaxed. The results indicate that in 1993-1994, in gross terms, day-trippers contributed the greatest amount to gross state product, followed by interstate, intrastate, and international visitors. If substitution expenditure effects by residents are taken into account, interstate tourism contributed the greatest amount to gross state product and employment, followed by international visitors. Per dollar of visitor expenditure, the Victorian government should promote interstate tourism for employment creation, although still encouraging international tourism for value adding.

Journal of Travel Research, Vol. 40, No. 1, 101-109 (2001)
DOI: 10.1177/004728750104000113


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