In a context of uncertainty over traveller security, tourism experienced two major crises in 2003- the Iraq War and SARS. While the relative impacts of a complex array of impacts on travel decisionmaking are almost impossible to dissect, this paper will explores the economic effects of the SARS crisis on tourism to Australia. While the events resulted in less inbound tourism, they also resulted in a reduction of outbound tourism. The net economic impacts on the nation depend upon the extent to which cancelled or postponed outbound travel are allocated to savings, to domestic tourism, or to the purchases of other goods and services. Using a computable general equilibrium model of the Australian economy, simulations of the impacts of the events suggest that the net effects were not as severe as were perceived by tourism stakeholders.