Abstract

The foot and mouth disease (FMD) outbreak significantly reduced tourism expenditures in the UK, as well as affecting the agricultural sector. This paper quantifies the effects of FMD on tourism, agriculture and all other sectors of the UK economy using a computable general equilibrium (CGE) model of the UK economy. The results show that the FMD outbreak had larger adverse effects on GDP through reductions in tourism expenditures than through other effects. The implication for policy makers is that the roles of tourism-related sectors should be considered in the formulation of agricultural policy.