KI Traveller's Levy Economic Impact Assessment - Kangaroo Island ...
KI Traveller's Levy Economic Impact Assessment - Kangaroo Island ...
KI Traveller's Levy Economic Impact Assessment - Kangaroo Island ...
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Commercial-in-Confidence<br />
<strong>KI</strong> Traveller’s <strong>Levy</strong><br />
<strong>Impact</strong> <strong>Assessment</strong><br />
TABLE 3.2: GENERAL TRAVEL ELASTICITY ESTIMATES FROM THE LITERATURE<br />
Study Variable of interest Elasticity estimate<br />
Divisekera 2003<br />
Expenditure compensated<br />
international travel to Australia<br />
NZ -0.93<br />
US -1.20<br />
Japan -2.04<br />
UK -1.23<br />
BTE 1995 Air travel to and from Australia Business Leisure<br />
Ger -0.55 -1.23<br />
IATA 2007<br />
Crouch 1994<br />
Demand elasticities for air travel<br />
(USA data)<br />
Elasticities for Short-Haul versus<br />
Long-Haul Tourism<br />
Implications for <strong>Kangaroo</strong> <strong>Island</strong><br />
UK -0.21 -1.79<br />
Jap -0.24 -0.79<br />
Kor -0.20 -0.50<br />
Sin -0.22 -1.86<br />
NZ -0.16 -0.68<br />
USA -0.45 -1.85<br />
Route-market level -1.4<br />
National level -0.8<br />
International level -0.6<br />
International business -0.265<br />
International leisure -1.04<br />
Short domestic business -0.7<br />
Short domestic leisure -1.52<br />
Short- haul -0.60<br />
Long-haul -0.48<br />
As well as establishing a range in which the elasticity of demand for tourism lies generally,<br />
the findings from the literature have a number of direct implications for the elasticity of<br />
demand for visitation to <strong>KI</strong>:<br />
<br />
<br />
<br />
<br />
demand by leisure travellers (the vast majority of the <strong>KI</strong> market) will be relatively more<br />
elastic than visitors who travel for the purpose of visiting friends and relatives or<br />
business;<br />
demand by domestic visitors, particularly intrastate travellers, will be relatively elastic<br />
compared with international visitors;<br />
among each of these groups of travellers, demand will be relatively less elastic among<br />
those visitors for whom <strong>KI</strong> is the primary destination on their trip; and<br />
overall, as a relatively more unique destination for which there are limited substitutes,<br />
the elasticity of demand for visitation to <strong>KI</strong> is likely to be toward the more inelastic end<br />
of the spectrum.<br />
20