Events in Indonesia: exploring the limits to formal tourism trends forecasting methods in complex crisis situations

The desire to know the future is as old as humanity. For the tourism industry the demand for accurate foretelling of the future course of events is a task that consumes considerable energy and is of great significance to investors. This paper examines the issue of forecasting by comparing forecasts...

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Published inTourism management (1982) Vol. 24; no. 4; pp. 475 - 487
Main Authors Prideaux, Bruce, Laws, Eric, Faulkner, Bill
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.08.2003
Subjects
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ISSN0261-5177
1879-3193
DOI10.1016/S0261-5177(02)00115-2

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Abstract The desire to know the future is as old as humanity. For the tourism industry the demand for accurate foretelling of the future course of events is a task that consumes considerable energy and is of great significance to investors. This paper examines the issue of forecasting by comparing forecasts of inbound tourism made prior to the political and economic crises that engulfed Indonesia from 1997 onwards with actual arrival figures. The paper finds that current methods of forecasting are not able to cope with unexpected crises and other disasters and that alternative methods need to be examined including scenarios, political risk and application of chaos theory. The paper outlines a framework for classifying shocks according to a scale of severity, probability, type of event, level of certainty and suggested forecasting tools for each scale of shock.
AbstractList The desire to know the future is as old as humanity. For the tourism industry the demand for accurate foretelling of the future course of events is a task that consumes considerable energy and is of great significance to investors. This paper examines the issue of forecasting by comparing forecasts of inbound tourism made prior to the political and economic crises that engulfed Indonesia from 1997 onwards with actual arrival figures. The paper finds that current methods of forecasting are not able to cope with unexpected crises and other disasters and that alternative methods need to be examined including scenarios, political risk and application of chaos theory. The paper outlines a framework for classifying shocks according to a scale of severity, probability, type of event, level of certainty and suggested forecasting tools for each scale of shock.
Author Faulkner, Bill
Laws, Eric
Prideaux, Bruce
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  givenname: Eric
  surname: Laws
  fullname: Laws, Eric
  email: e.laws@rgu.ac.uk
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  givenname: Bill
  surname: Faulkner
  fullname: Faulkner, Bill
  organization: Centre for Tourism and Hotel Management Research, Griffith University, Gold Coast, Australia
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Scenarios
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Snippet The desire to know the future is as old as humanity. For the tourism industry the demand for accurate foretelling of the future course of events is a task that...
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SubjectTerms Asian financial crisis
Chaos theory
Forecasting
Indonesia
Risk analysis
Scenarios
Title Events in Indonesia: exploring the limits to formal tourism trends forecasting methods in complex crisis situations
URI https://dx.doi.org/10.1016/S0261-5177(02)00115-2
Volume 24
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