Assignment 40 percent weighting Unit 6
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In no more than 400 words, briefly answer the following questions: Describe how one might consider using the IO approach to estimate the tourism impact of an ‘open-sky’ between two nations. What are the limitations of the IO approach in assessing the economic impact? Discuss the use of CGE and its advantages in this context. Is the application of the CGE approach warranted in all circumstances? The following reference may assist with this exercise. The first article looks at the economic impact of air transport liberalisation in Hamburg, while the second article looks at Australia. Don’t forget to consult Readings 1 – 3 of this Unit. Gillen, D. and Hinsch, H. (2001) Measuring the economic impact of liberalisation of international aviation on Hamburg airport, Journal of Air Transport Management 7, p.25-34 Forsyth, P. (2006) Martin Kunz Memorial Lecture. Tourism benefits and aviation policy, Journal of Air Transport Management 12, p.3-13
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