The Impact of the 2008 World Financial Crisis on Tourism and the Singapore Economy and Policy Responses: A CGE Analysis

Title
The Impact of the 2008 World Financial Crisis on Tourism and the Singapore Economy and Policy Responses: A CGE Analysis
Publication Date
2010
Author(s)
Meng, Xianming
( author )
OrcID: https://orcid.org/0000-0002-3329-5277
Email: xmeng4@une.edu.au
UNE Id une-id:xmeng4
Siriwardana, Mahinda
Dollery, Brian E
Mounter, Stuart
( author )
OrcID: https://orcid.org/0000-0001-6637-3756
Email: smounte2@une.edu.au
UNE Id une-id:smounte2
Type of document
Journal Article
Language
en
Entity Type
Publication
Publisher
International Association of Computer Science and Information Technology (IACSIT)
Place of publication
Singapore
UNE publication id
une:6392
Abstract
Mega events such as the World Financial Crisis in 2008 have tremendous negative economic effects, particularly on tourism. This study employs recent Singaporean tourism survey data, the updated Singaporean input-output tables, and a Computable General Equilibrium (CGE) model to gauge the negative effects of the 2008 World Financial Crisis on Singapore and to simulate the effects of selected policy responses. The CGE simulation results demonstrate that at the macro level, although almost all variables are negatively affected, exports benefit greatly. At the industry level, a negative tourism shock impacts severely on the tourism-related sectors, impacts only slightly on sectors weakly linked to tourism, but tourism-competing sectors expand. In commodity market, prices and outputs decrease for most products but real household consumption and exports increase. In the labor market, low skilled workers are harshly affected, but some occupational groups benefit at the expense of others. The simulation results also suggest that, in response to an event like the 2008 World Financial Crisis, a slightly decrease in the GST rate is more effective than a significant increase in the tourism tax rate.
Link
Citation
International Journal of Trade, Economics and Finance, 1(1), p. 46-53
ISSN
2010-023X
Start page
46
End page
53

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