(First published in Business First Magazine)
Tourism is on the rise in Australia against a backdrop of unease in other key tourism locations, and it’s shaping up to be a boom for the hospitality sector writes Steve Gagel, Director, Prosperity Advisers Group.
Fresh from a European holiday and close to the Nice attacks, I had a good opportunity to discuss holiday destinations with many locals in countries across Europe. The tension is palpable in the major cities. From the moment we stepped off a plane or train, we were met with multiple army personnel carrying machine guns and walking in formations up to six at a time. Understandably, citizens are nervous, and react to anything out of the ordinary in fear of another terrorist attack.
Europeans seem to be in awe of our watery boarders and in-the-main tend to like Australia’s “turn back the boats” policy. The Australian policy of not letting anyone in does disadvantage the many legitimate refugees trying to escape oppression and to make a better life from themselves, with some thinking it might keep out the extremists at the same time.
TOURISM ON THE UP
With the above in mind and the Australian dollar a long way under our previous highs of $1.10 to the US Dollar (currently A$ buying around US$0.76) there is effectively a 31% increase in buying power that international visitors now have in deciding to visit Australia.
Tourism Research Australia tells us there’s a healthy increase in total expenditure on international overnight visitors across all three eastern seaboard states – with the average for Australia up 17%. Perhaps the combined effects of safety and lower cost (due to the dollar dropping) is indeed creating more in-bound hospitality for Australia?
Domestically, it appears that Australians are turning their noses up at overseas destinations with domestic overnight spend increasing by 4.7% and domestic day trips also up by 4.6%. The scene is certainly set for growth among hospitality operators if they can leverage the current climate to their advantage.
Jacqui Lambie’s push for a reduction in the ‘backpacker tax’ to 10.5% has won senate approval yesterday.
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