Effects of the Sars Crisis on the Economic Contribution of Tourism to Australia

In a context of uncertainty over traveler security, tourism experienced two major crises in 2003—the Iraq War and SARS. While the relative impacts of a complex array of impacts on travel decision making are almost impossible to dissect, this article explores the economic effects of the SARS crisis on tourism to Australia. Although the crisis resulted in less inbound tourism, it also has lead to reduced outbound tourism. The net economic impacts on the nation depend upon the extent to which cancelled or postponed outbound travel are allocated to savings, to domestic tourism, or to the purchases of other goods and services. Using a computable general equilibrium model of the Australian economy, simulations of the impacts of the events suggest that the net effects were not as severe as were perceived by tourism stakeholders.