Measuring the Economic Impact of Australian Tourism Marketing

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Kulendran, Nada and Divisekera, Sarath (2007) Measuring the Economic Impact of Australian Tourism Marketing. Tourism Economics, 13 (2). pp. 261-274. ISSN 1354-8166


The objective of this study is to quantify the effects of marketing expenditure by the Australian Tourist Commission (ATC). Cointegration analysis and a dynamic modelling approach are used to estimate the elasticity estimates of income, price, price of substitute, cost of travel and marketing expenditure for Australia’s four major tourism markets, USA, Japan, UK and New Zealand. ATC marketing expenditure has a positive effect on international tourism demand and the magnitude of the effect varies from country to country. In promoting international visitor arrivals to Australia, not only ATC and non-ATC marketing but the word-of-mouth effect and visitor satisfaction leading to repeat visits also play an important role. The performance of the ATC marketing strategy measured in dollar return per dollar invested in the international tourism marketing is higher in the New Zealand market, followed by the UK, Japan and US markets. The estimated overall average dollar return per dollar invested in international tourism marketing is 8:1.

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Item type Article
DOI 10.5367/000000007780823212
Subjects Historical > Faculty/School/Research Centre/Department > Centre for Tourism and Services Research (CTSR)
Historical > SEO Classification > 9003 Tourism
Historical > FOR Classification > 1402 Applied Economics
Historical > Faculty/School/Research Centre/Department > School of Accounting
Keywords ResPubID12778, tourism demand modelling, marketing expenditure, marketing expenditure elasticity estimates, cost-effectiveness analysis
Citations in Scopus 46 - View on Scopus
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