Tourism and the Services Sector Growth in Singapore
Within the context of a trivariate vector autoregressive framework that includes the degree of services sector openness, this article examines the link between tourism growth and services sector growth in Singapore. Empirical analysis based on Johansen's cointegration approach shows that the three variables are cointegrated (i.e., a stable long-run relationship exists among tourism growth, the degree of openness of the service sector, and services sector growth). The services and manufacturing sectors are regarded as the twin engines of Singapore's economic growth. It can be argued that tourism growth contributes to economic growth in Singapore through its impact on the services sector.
Is There a Role for Wine Tourism in Regional Growth?
Sustainable development is an integral part of rural Australia. Many rural centres have experienced structural shifts over the past decade and, currently, economic uncertainty seems to be looming in the future given the current volatility of global markets (Introduction). At the time of the study the slowdown in the mining industry had begun and the community’s future, as in many regions across Australia was, and is, a concern (Chapter 3-4). Using economic base models and theory this thesis explores an established community from a bottom up approach (Chapters 2). Figure 1 is a contextual view of the thesis.
The Central West of NSW has a long history dating back to the colonial times in Australia, with a unique and cultural industry that continues to play a pivotal part in its existence. This industry brings people from all over the world seeking an experience that envelops the palette (Chapters 5-6). Surprisingly, no one has ever undertaken a detailed look at this important contributor to the economy (Chapter 5). Nonetheless, this thesis explores the region’s wine industry along with the other sectors of the community over a twenty year period (Chapter 4). This study dissects the past and future through detailed economic base modelling in order to place a numerical figure on an important amenity within the Central West of NSW and importantly the policies that will ground the region’s foundation in the future.
The Australian, New South Wales economies and wine industries were reviewed in order to gain an idea of the Central West’s industrial placement nestled within the larger economies (Chapters 3-4-6). Over 160 wine related business were surveyed in the Central West of NSW compiling a never before taken inventory (Chapter 5). The appropriate economic models were carefully selected along with two new indices. The data were then processed with nine input-output tables generated to examine the structure of the region with projections estimated to 2021 using data from 1981 (Chapters 2-3-6). Wine and Tourism play an important part in the local economy and understanding its linkages helps with policy design (Chapters 5). The impacts of this industry were generated with a set of novel spatial indices that landscapes the varietal palate of Australian wine regions in order to examine and enhance wine regions within Australia a local distinctiveness, provide a varietal price support.
The indices are presented in a series of maps to produce a geo-spatial economic visualisation of the Australian wine industry (Chapter 6). Polices were then reviewed to direct a sustainable long term growth.
The results highlighted the importance of combining economic modelling in order to gain a rigorous perspective on the local economic structure (Chapters 2-3). This careful selection of combined modelling techniques revealed a shift in the area’s dependence from agriculture to mining over the recent decade and the areas where pre-emptive strategies should be directed. Alarmingly also, the results indicate that even though there has been a significant increase to the Central West’s economy due to the mining, the area has not become more economically resilient or diversified and pre-emptive strategies are needed for future employment growth (Chapters 3-4). Furthermore, the local wine industry is significant in regards to local employment and value-added (Chapter 5). The newly developed indices suggest that more other red and white grape varieties (other than the thirty eight main varieties currently grown) should be planted in order to create a more robust varietal palate and price support (Chapter 6). This will also help with varietal marketing strategies very similar to some of the old world wine producers.
The thesis concludes with recommendations that a number of pre-emptive policies and strategies be made towards a number of industry sectors, particularly those that foster innovation and technology that can be harnessed to drive future regional growth (Chapter 4). This means, as the results suggest, shifting polices away from Mining to Agriculture and Trade and Accommodation that envelopes the local wine industry (Chapter 4). In addition, a tourism marketing strategy promoting the region’s food and wine and also that viticulturists plant more of rare grape varieties rather than keeping with the norms of most regions’ varietal mix.
This thesis makes a significant contribution to new knowledge by providing some substantial ‘meat on the bones’ of the prosaic understanding that the ‘wine industry’ is important to the Central West regional economy as in many economies across the globe (Conclusion). The modelling techniques developed in this study can then be applied to other regions both in Australia and internationally. In addition to this our understanding of I-O modelling and economic base theory methods this work does provide evidence that qualitative research is required for accurate policy design (Conclusion). Furthermore, the significance of this research is that the thesis provides essential information about the local economy which is invaluable to both government and industry in assessing and
implementing regional development policy and planning. Lastly, it also provides imperative information that offers practical solutions across key operational areas, including Sales & Marketing, Business Planning, Market Development, Financial Operations and Wine Tourism (Conclusion).