Peter Forsyth

Monash University (Australia) · Department of Economics

This study adopts a Structural Path Analysis to explore the ways in which air cargo can play a role in reducing poverty in Vietnam. This study departs from the prevalent and extensively researched macroeconomic analysis of air cargo, focusing instead on the microeconomic and distributional effects. The results show that air cargo growth stimulates...

The airport market is considered to exhibit significant market power and has therefore been subject to different types of economic regulation. Multiple studies have been investigating the degree of market power in order to implement regulation accordingly. Different approaches are pursued in regard to market power assessment, including the switchin...

All airports serve a region and some also serve a nation. This chapter considers regional aspects of the evolution of airport governance and regulation over recent decades. This chapter both widens the scope of academic scrutiny to many countries previously neglected in the academic literature, but also considers how these changes may have been app...

Europe faces some of the most difficult airport environments in the world. Many airports are very busy, are difficult to expand, and several have high charges. In spite of this, in some ways, such as the allocation of scarce capacity without major delays, they perform quite well. This paper examines the interests of the main stakeholders, such airl...

Given the natural monopoly properties and higher levels of connectivity of large airports, workable airport competition may not be possible, requiring regulation. This simple rule becomes more complicated, when looking also at the product range of airports, difference in consumer preferences and their price elasticity or competition from other tran...

Regulation is known to change the incentives a firm faces to invest, inducing some firms to invest too much, and others too little. Regulators must set prices to achieve several conflicting objectives, including providing the incentive to invest. Optimising investment is a particular problem in regulated airports, and many of the inefficiency probl...

Recent developments in aviation markets, policy, and the literature concerning regulation and benchmarking necessitate a new overview about the current debates concerning benchmarking and regulation. This book offers this overview, focusing on theoretical aspects (Part I), benchmarking (Part II), and case studies (Part III).

To βιβλίο των Larry Dwyer, Peter Forsyth και Wayne Dwyer είναι ένα εισαγωγικό σύγγραμμα στα οικονομικά του τουρισμού κατάλληλο για προπτυχιακά αλλά και μεταπτυχιακά προγράμματα σπουδών στα οικονομικά και στη διοίκηση επιχειρήσεων. Επιπλέον, το βιβλίο αποτελεί εξαιρετικό εργαλείο και βοήθημα για τους επαγγελματίες του τουρισμού, που επιθυμούν να εμπ...

The problem of how to evaluate investments in airports has now been studied for over 50 years. This paper analyzes the use of different methods like cost–benefit analysis (CBA), economic impact analysis (EIA), and computable general equilibrium (CGE) models to address the question. It assesses the strength and weaknesses of each method, and it disc...

Airports are businesses which have major managerial and governance issues. Some of the main managerial issues concern the pricing of their outputs, control of costs and the pursuit of managerial efficiency, responses to competition and, in some cases, the development of alliances. However, airports also operate in environments with strong policy in...

This chapter examines the contribution of Computable general equilibrium (CGE) modelling to the quantification of the economic impacts and benefits of air transport infrastructure and policies, focusing primarily on the structure, overall operation, strengths and weaknesses of existing air transport focused CGE models.

•Airports would adjust their charges in different ways to a large demand decline.•Competitive airports would not be able to raise charges but monopoly airports and those subject to many kinds of regulation could do so.•Price increases would be inappropriate from the viewpoint of supporting airline and tourism viability and wider economic benefits s...

We study the effects of Chapter 11 bankruptcy protection on competitive product pricing in both domestic and international markets using data from the airline industry. We find a decline of about 5% in domestic markets and an even more significant drop in international markets. Further, in international markets the competing carriers respond by dro...

In special event evaluation, given the shift away from standard economic impact analysis based on input–output modeling, increased attention is being paid to the roles that computable general equilibrium modeling (CGE) and cost–benefit analysis (CBA) can play in event evaluation. This article analyzes the strengths and limitations of CGE and CBA in...

Many air carriers have challenged each other's financing arrangements, each asserting that the other benefits from substantial subsidies. We argue that the ‘subsidy’ classification is a distraction. Firstly, subsidies are quite difficult to define. Secondly, subsidies are little different in their economic effects to many other policy actions, and...

This paper assesses whether Chapter 11 is a form of subsidy for US airlines. US airlines have used Chapter 11 to restructure their operations. This has been criticized as a subsidy by major non US airlines and governments for a long time and recently, in the “level playing field” debate. Applying legal and economic perspectives of subsidy, we exami...

Relatively little attention has been paid to the existence of subsidies in aviation. As the sector's importance for economic development is often highlighted, this paper seeks to provide a conceptual overview of the various forms of subsidies in aviation, as a contribution to a more holistic understanding of economic interrelationships. Based on a...

This paper assesses the practice of pre-finance, which is very often used by airports to fund major investments, such as runways and terminals. It involves the airport charging airlines higher prices as soon as, and sometimes before, the project's construction commences, often well before it becomes operational. Generally, airlines strongly oppose...

We propose a measure of business risk in air travel demand at the route level that can reduce information asymmetry during route development negotiations between tourism destinations and airlines. Aviation-exposed risk (AER) conveys information about the level of uncertainty with regard to air travel demand from an airline’s perspective. Using AER,...

The Centre for Economic Policy (CEP) located within Australia's Sustainable Tourism Cooperative Research Centre, engaged with government, industry and researchers for over a decade to advance policy analysis in tourism contexts. This paper discusses the contributions of the CEP in three major areas-the development of tourism satellite accounts, eco...

The real exchange rate (REX) has long been used as the proxy for prices in tourism demand models. However it has limitations, particularly when it comes to models of outbound tourism. As an alternative, a price competitiveness index (PCI) is developed and used as a proxy for prices in a model of outbound tourism from Australia. Results obtained sho...

The aims of event assessment are often unclear. Failure to clarify objectives has resulted in a less than satisfactory approach to event evaluation given that the two major approaches, economic impact analysis (EIA) and cost–benefit analysis (CBA), can give conflicting results. Since economic impacts do not equate to net benefits, an important topi...

Increasingly, developing countries are embracing international tourism as a source of economic growth. Tourism is one of the world's largest economic activities. It is the leading industry in many countries, as well as a substantial source of job creation worldwide. In recent years, three tools of analysis have become available to inform tourism po...

Four major observations can be made about the state of research in tourism economics. First, there are ongoing areas of research very much within the single disciplinary mainstream economic methodological framework. Second, several areas of research in economics have emerged that were either non-existent two decades ago or were in their infancy. Th...

This paper contributes to the literature on the linkages between tourism and migration. Though it is widely recognised that the two phenomena are closely linked, and that migration may induce visiting friends and relatives) tourism (VFR), there has been little econometric evaluation of the relationship. The present analysis draws upon Australian da...

Sydney has one major airport, and it faces growing air transport demand – the airport is now becoming subject to excess demand, and this will be a major problem in the future. Investment in additional capacity will be required, and several options for a second airport are being considered. Unlike airports in Europe and North America, hub issues are...

This study estimates the flow and expenditure effects of the recent increase in Australia's Passenger Movement Charge (PMC), as well as the economic impacts on the Australian economy and the tourism industry. After discussing the nature of the PMC, it outlines the types of industry stakeholder concerns as to its effects on tourism both before and a...

The efficient targeting of destination marketing depends not only on identifying markets that are currently or potentially high yielding but also on the cost effectiveness of marketing expenditure in different markets. At least three different types of yield measures that are relevant to return on marketing investment have not been clearly distingu...

The article assesses the potential economic effects on the Australian tourism industry from the introduction of a carbon tax introduced July 1, 2012. The tax is projected to lead to changes in key macroeconomic variables, reducing growth in real GDP, real consumption, and employment. Most tourism industries in Australia will experience a small but...

The last few decades have witnessed substantial liberalization trends in various industries and countries. Starting with the deregulation of the US airline industry in 1978, regulatory restructuring took place in further network industries such as telecommunications, electricity or railways in various countries around the world. Although most of th...

Migration induces inbound and outbound tourism flows for a country heavily reliant on migration, such as Australia. Previous research has provided estimates for Australia of the effects of changes in migration on the volume of inbound and outbound tourism. When supplemented with information about tourist spending, estimates can be made of any expen...

This paper estimates the potential economic effects on the Australian tourism industry from the introduction of an economy wide carbon tax to be introduced in July 2012. The manner in which the tax is expected to work is examined together with a discussion of some concerns that have been raised by the tourism industry regarding its impacts on Austr...

Price competitiveness is a key factor in the overall tourism competitiveness of a country or a destination. Given its importance to overall destination competitiveness, various indicators of prices have been developed. Different indicators shed light on different aspects of competitiveness, and the measures which are most useful depend on what ques...

From about the mid 1980s, Australia has sought to improve the performance of its markets and industries by actively implementing a program of microeconomic reform. It was recognised that there was a plethora of distortions which had the effect of promoting inefficient performance, and the reform program was directed towards

a b s t r a c t Recent years have seen a global trend towards the emergence of multi-airport companies operating at a global scale. This paper employs industrial and transaction costs economics to identify the main drivers that shape the patterns of international cross-ownership structures that have emerged in the airport industry. In addition, imp...

Many would consider that the current reliance on air transport is environmentally unsustainable, especially given its impacts on climate change and its use of non-renewable resources. In addition, financial sustainability is often seen as inconsistent with environmental sustainability. The conclusions here are otherwise. Air transport does contribu...

Four major observations can be made about the state of research in tourism economics. First, there are ongoing areas of research very much within the single disciplinary mainstream economic methodological framework. Second, several areas of research in economics have emerged that were either non-existent two decades ago or were in their infancy. Th...

This second-edition text offers new insights, updated concepts and a new articulation of themes in tourism management. Part I (chapters 1-4) is now an enlarged element of the text and combines an analysis of the new tourism environment, economic development, tourism forecasting and new trends in tourism. Part II (chapters 5-11) now involves consume...

Discussions of how changes in exchange rates impact on international airlines tend to be ambivalent. In this paper, it is shown that the relative cost competitiveness of an international airline will decline when there is an exchange rate appreciation in its home country - as will be the case for other tradable goods and services. The extent to whi...

This paper explores the issues in estimating the greenhouse gas (GHG) emissions from the tourism industry and related activity in Australia. The scope of tourism consists of the economic activities defined as “tourism characteristic” and “tourism connected” as defined in the Australian Tourism Satellite Account (TSA). Two approaches are employed an...

Tourism Economics and Policy combines a comprehensive treatment of economic concepts and applications in tourism contexts. The topics covered are those that most occupy the attention of tourism economists in research and policy areas internationally. Content includes tourism demand and forecasting; tourism supply and pricing; measuring tourismߣs ec...

The break-up of BAA and the blocked takeover of Bratislava airport by the competing Vienna airport have brought the issue of airport competition to the top of the agenda for air transport policy in Europe. Airport Competition reviews the current state of the debate and asks whether airport competition is strong enough to effectively limit market po...

This chapter explores the issues in estimating the greenhouse gas (GHG) emissions from the tourism industry and related activities in Australia. A production-based approach is employed and its rationale is explained. The scope of tourism consists of the economic activities of tourism-characteristic and tourism-connected sectors as defined in the Au...

The standard approach taken to assessing the economic impacts of special events, using input-output (I-O) modeling, has come under increasing attack in the recent research literature. Critics have argued that both I-O modeling should be replaced by computable general equilibrium modeling and that cost benefit analysis should be used to account for...

Price competitiveness is an essential component in the overall tourism competitiveness of a country or a desti-nation.There is widely accepted evidence that prices are one of the most important factors in decisions about whether, and where, to undertake trips.This is reflected in the Travel &Tourism Competitiveness Index (TTCI), where, in pillar 10...

This article surveys the work of Yew-Kwang Ng who, in 2007, was elected Distinguished Fellow of the Economic Society of Australia. Emphasis is given to the distinctive, wide ranging and original aspects of his work. Copyright © 2008 The Economic Society of Australia.

An understanding of the yield potential of different source markets and segments can underpin destination marketing by both public and private sector organisations. The standard yield measure relates to expenditure injected into a destination from different market segments. This measure has several limitations, which are discussed in the paper. Wit...

This paper examines how climate change policy can impact on competition, prices and profitability in the air transport industry. It begins with an outline of the climate change policies that have been suggested, and it gives particular attention to the inclusion of air transport in an emissions trading scheme (ETS).This is likely to prove an import...

We consider monopoly private airports, lumpy investments, airlines under Bertrand competition and assume that the airport regulator wishes to maximize the weighted sum of consumer surplus and welfare. Then we compare airport performance under three regulation regimes: i) no regulation at all, ii) price-cap regulation and iii) cost- based regulation...

Transport is an essential element of tourism, providing the vital link between the tourist generating areas and destinations. Good accessibility, which is determined by the transport services provided, is a fundamental condition for the development of any tourist destination. Moreover the transport industry can be a major beneficiary of tourism bec...

The studies in this book have covered a wide range of aspects of aviation, leisure tourism, and the linkages between them. By way of conclusion, we draw together some of these themes which have been discussed- these cut across the different chapters. Some key themes which emerge are: the Changing Aviation Industry; Aviation Policy and its Implicati...