Quantitative analyses of the economies of sequence: The impact of new airport construction on tourism industry growth-a case study of Hong Kong and Singapore

Abstract

The authors explore what role (the opening of) an international airport plays in the creation of tourism clusters and what impact it has on the economy, using Hong Kong and Singapore as case examples. The process of development of the international airports and tourism industry clusters in the two countries is reviewed, and the trend in average annual rates of increase in the number of tourists and tourism revenue as well as tin gross domestic product growth rate is surveyed. Using the Granger causality test, the authors carry out a statistical analysis of tourism revenue and economic growth (gross domestic product growth rate) in Hong Kong and Singapore to explain how the two are causally related.