Tourism Demand Spillovers between Australia and New Zealand

Abstract

International tourism is susceptible to fluctuations and shocks. The spillovers of international inbound tourism between Australia and New Zealand have been one of the key issues for both governments and tourism authorities to address. This paper used a bivariate GARCH model to investigate the spillovers of international tourist arrivals between Australia and New Zealand from seven countries (Canada, China, Germany, Japan, Korea, United Kingdom, and United States). The monthly international tourist arrivals between 2000 and 2012 were used for the empirical analysis. The findings suggested a significant spillover of Chinese and Japanese tourists from New Zealand to Australia, whereas New Zealand’s tourism demand from China and Japan was not significantly affected by that of Australia. However, New Zealand’s inbound tourism from Canada, Germany, and United States was significantly affected by tourism demand from those countries to Australia. Furthermore, symmetric spillovers between Australia and New Zealand (in both directions) existed for UK tourists.

Modelling the volatility of international visitor arrivals to New Zealand

“…Second, the GARCH methodology has been applied in the tourism literature to model the volatility of tourism demand (e.g. Balli and Tsui, 2015;Chan et al, 2005;Chang et al, 2011a;2011b;Shareef and McAleer, 2007;Song and Li, 2008). The empirical models of this study have revealed that the macroeconomic factors contributed at various levels to different markets, and the models we provided made fairly accurate forecasts for the visitors originating from the selected markets.…”

“…Therefore, in the New Zealand context, a substantial body of literature has discussed the international tourism demand (e.g. Balli and Tsui, 2015;Becken and Gnoth, 2004;Chan et al, 2005;Chang et al, 2011aChang et al, , 2011bTurner and Witt, 2001;Yeoman et al, 2012).…”

Risk Spillovers in Returns for Chinese and International Tourists to Taiwan

“…Chang et al (2011) examined spillover effects of tourism demand for ASEAN countries to Taiwan. Balli and Tsui (2016) investigated interregional spillover effects for international tourism demand, such as Canada, China, Germany, Japan, Korea, United Kingdom, and United States to Australia and New Zealand.…”

International tourism demand, number of airline seats and trade triangle: Evidence from New Zealand partners

“…In New Zealand, international tourism has been the key driver of growth in its economy (and the largest export item) as well as the aviation sector makes significant contribution to its economy (Balli and Tsui, 2016;Becken, 2002;Becken et al, 2009;Duval, 2013;Tsui et al, 2017).…”