Air transport policy and its impacts on passenger traffic and tourist flows

This paper attempts to derive policy indices to quantify the restrictiveness of the aviation regimes in the Asia-Pacific region, and use the indices to establish the relationship between people movement and liberalisation in policy. Australia and Singapore have the most liberalised environment in this region. Evidence has been found that passenger traffic between city-pairs has been hampered by the restrictive air transport policies. Restrictions on the air transport sector also have a substantial negative impact on bilateral tourist flows. Further liberalisation in this sector could help build up a stronger tourism industry.