Tourism Earnings Instability in Singapore, 1972‐88

Abstract

Investigates the time series relationship between export earnings instability and instability in receipts from international tourism for Singapore between 1972 and 1988. Computes four standardized instability indexes for both merchandize exports and international travel receipts, having suitably adjusted the official export series for re‐exports and corrected the two data series for trend. There is some support for the view that export receipts are more unstable than tourism receipts. Although exports are generally more unstable over the whole period, they were relatively more unstable in the early to mid‐1970s during a period of international instability. Tourism receipts, on the other hand, were relatively more unstable in the 1980s, partly as a result of world recession, but also because of structural problems in the tourism industry in Singapore. Also finds that the development of the tourism sector in Singapore has exerted a net destabilizing effect on total exports of goods and services.

The Tourism Efficient Frontier

“…Employing the risk concept in the financial portfolio theory, one unique study by Wilson (1994) attempted to investigate the degrees of export earnings instability and variations in receipts from international tourism for Singapore between 1972 and 1988, and found that tourism receipts for Singapore during the period were more stable than export receipts, arguing the importance of tourism revenue for the economy. However, only a few research studies using the financial portfolio model in search of efficient solutions were found in the tourism literature.…”

Effect of tourism on environmental pollution: Further evidence from Malaysia, Singapore and Thailand

“…According to Wilson (1994) tourism being the most prominent industry of Singapore is also considered as one of the largest industries of Asia Pacific region. Keeping in view the economic context, Katircioglu (2014b) authenticates that hypothetical relationship between tourism and growth is suitable for economic setup of the Singapore where it serves as the locomotive sector.…”

Getting them to forgive and forget: cognitive based marketing responses to terrorist acts

“…Additionally, it is most signifi-cant in the developing world where economic growth is most difficult and essential (Sinclair and Tsegaye, 1991). It is sadly ironic that in areas where the traditional economic base is barely capable of sustaining basic subsistence, and where tourism would bring a new stream of income and economic diversification (Wilson, 1994), that terrorist acts, acts of war and general regional instability or adversity predominate. These actions exacerbate problems in an industry already characterised by an inherent instability of revenues (Sinclair and Tsegaye, 1991;Wilson, 1994).…”