Quantifying risk spillovers from exchange rates to inbound tourist arrivals by purpose of visit is essential for Australia to take proactive measures to achieve tourism business recovery and resilience after such critical events like the recent bushfires and the COVID-19 pandemic. Using a monthly dataset over the period January 1998–March 2020, this paper calculates the conditional value-at-risk (CoVaR) to evaluate how different types of inbound tourists to Australia respond to exchange rate fluctuations. The empirical results identify inbound tourist arrivals with the highest sensitivity to exchange rate fluctuations, confirming the role of exchange rates in determining inbound tourist arrivals by purpose of visit. Furthermore, these results shed light on provisions of tourism products, services, and infrastructural facilities to satisfy different requirements of Australia’s inbound tourists by purpose of visit, aiming to promote tourism business recovery and resilience in Australia.

Item Type:	Refereed Article
Keywords:	tourism business recovery, tourism resilience, exchange rate fluctuations, inbound tourist arrivals by purpose of visit, GARCH-DCC model, conditional value-at-risk
Research Division:	Commerce, Management, Tourism and Services
Research Group:	Transportation, logistics and supply chains
Research Field:	Maritime transportation and freight services
Objective Division:	Transport
Objective Group:	Environmentally sustainable transport activities
Objective Field:	Management of gaseous waste from transport activities (excl. greenhouse gases)
UTAS Author:	Shi, W (Dr Wenming Shi)
UTAS Author:	Nikolova, N (Professor Nataliya Nikolova)
ID Code:	148462
Year Published:	2022
Deposited By:	Maritime and Logistics Management
Deposited On:	2022-01-13
Last Modified:	2023-01-23
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