The chief executive of the world's third-largest airline, China Southern Airlines, intends stepping up the number of direct flights into Australia to capitalise on booming Chinese tourist numbers into the country, which have jumped 20 per cent to 1.18 million in the year ended October 31.
The economic impact of the fast-growing Chinese tourist market is estimated by Tourism Australia at about $9 billion annually, with Chinese visitors spending on average $8000 per trip in Australia, compared with the average of about $5000 by other international tourists.
The airline already accounts for about one-fifth of all arrivals into Australia from China. China Southern Airlines president and chief executive Tan Wangeng said on Tuesday that he wanted to "increase capacity inwards" further as part of the over-arching growth strategy of the airline.
He was on the inaugural direct flight from Guangzhou to Adelaide on Tuesday as the airline expanded its reach into South Australia from mainland China for the first time. It will now operate three flights a week into Adelaide.
China Southern Airlines had begun ramping up its "Australia strategy" at the end of 2009, and now has 56 flights into Australia each week. It has increased the number of flights into Australia by 35 per cent in the past 12 months.
Mr Tan said it had been part of a deliberate strategy to internationalise the airline from 2009.
Multiple entry visas
"China Southern has seized the opportunity to turn itself into an international network-oriented airline," Mr Tan said in Adelaide. It is the third-largest airline in the world and the largest in Asia, based on passenger movement figures.
Authorities expect the decision in Australia to bring in a 10-year multiple entry visa system – which came into force on Tuesday for Chinese tourists – to make repeat visits easier and expand tourist numbers further.
Prime Minister Malcolm Turnbull said late in November at a tourist summit in Canberra that he and China President Xi Jinping were working toward making 2017 the year of Australia-China tourism.
Mr Tan said the direct flight from Guangzhou took about nine hours to Adelaide. It meant that Chinese travellers would no longer need to transfer to other flights in Hong Kong or Singapore.
South Australian Premier Jay Weatherill said on Tuesday it would help open up more business links between southern China and South Australia.
"It will help business people in both places," he said.
Strategic plans
He declined to comment on what incentives had been offered to ensure China Southern Airlines had brought forward expansion plans, to begin direct flights to Adelaide in 2016, ahead of their original strategic plans.
"We don't disclose that," Mr Weatherill said.
"It's great value for South Australia."
South Australian Tourism Minister Leon Bignell said there had been vigorous negotiations in April this year in Guangzhou to try to convince China Southern Airlines to bring forward its direct flights plans for the state.
"We weren't on the radar," he said.
He also said that he had been holding talks with quarantine officials in Guangzhou to try to make those quarantine processes as fast as possible, with a particular emphasis on expanding seafood exports.
Planned changes in cross-border e-commerce regulation by Chinese authorities have triggered a slowdown in the huge growth rates of Australian vitamins exporters Blackmores and Swisse, and also caused problems for Tasmanian infant formula maker Bellamy's.
