Decomposition of Australian Tourist Expenditure

Abstract

The economic contribution that tourists make to their host depends upon the total amount of their expenditure as tourists. This paper looks at the annual changes in the amount of expenditure by international tourists in Australia over the period 1985 to 1995. By decomposing these changes into components attributable to the three factors of numbers of tourists, their length of stay, and their average expenditure, insight is gained into how crucial the growth in numbers has been, and in particular, how important has been the growth in the number of Asian holiday-makers. The research also finds that there have been general declines in the length of stay, and the average expenditure for most categories of tourist.