Iron ore prices are retreating again and the overall Chinese economy is growing less quickly, but one sector is skyrocketing: outbound tourism.
The United Nations World Tourism Organisation preliminary 2016 scorecard has Chinese spending $344 billion as foreign tourists, a jump of 12 per cent in local currencies and more than double the splurge of the next biggest spenders, Americans.
More Business Week Videos
- Video duration
- 02:00
The next Chinese statistic to count
The next Chinese statistic to count
Australian markets go through periods of being fascinated by Chinese statistics - and then seem to become bored and turn attention to another set of figures. Michael Pascoe comments.
Up Next
Michael Pascoe: Building the future
- Video duration
- 01:54
- Video duration
- 01:54
Michael Pascoe: Building the future
Michael Pascoe: Building the future
Australiaâs spending on road and rail is picking up the slack from housing construction. Michael Pascoe comments.
Up Next
IMF boosts global economic forecast
- Video duration
- 01:56
- Video duration
- 01:56
IMF boosts global economic forecast
IMF boosts global economic forecast
The International Monetary Fund offered a sunnier outlook for the global economy in 2017, predicting growth of 3.5 per cent this year.
Up Next
There's no housing bubble ... in some places
- Video duration
- 01:46
- Video duration
- 01:46
There's no housing bubble ... in some ...
There's no housing bubble ... in some places
No, Australia isn't suffering a housing bubble. Sydney and to a lesser extent Melbourne might be, but the whole nation is starting to pay the price for it.
Up Next
APRA's early Christmas for banks
- Video duration
- 01:47
- Video duration
- 01:47
APRA's early Christmas for banks
APRA's early Christmas for banks
They would have been breaking out the good stuff for Friday drinks in the banksâ executives suites â how else would the banks celebrate the Australian Prudential Regulation Authority telling them they have to make bigger profits and, therefore, collect bigger bonuses? Michael Pascoe comments.
Up Next
Protecting mugs from themselves
- Video duration
- 02:31
- Video duration
- 02:31
Protecting mugs from themselves
Protecting mugs from themselves
How far should our watchdogs go to protect mugs from themselves, crooks or bad luck? Michael Pascoe comments.
Up Next
Sydney: Australia's FIFO capital
- Video duration
- 01:38
- Video duration
- 01:38
Sydney: Australia's FIFO capital
Sydney: Australia's FIFO capital
For some time, the engineers who used to fly north and west from Brisbane have been flying south to Sydney. Michael Pascoe comments.
The next Chinese statistic to count
Australian markets go through periods of being fascinated by Chinese statistics - and then seem to become bored and turn attention to another set of figures. Michael Pascoe comments.
And while the more mature Australian outward bound tourism market can't compete with those Chinese numbers, we still recorded one of the highest spending growth rates of 8 per cent as we left $35.6 billion behind us overseas.
The jump in Australian spending comes on top of a resurgence in domestic tourism despite dismal wages growth and many local retailers being squeezed. It looks like we're preferring to spend more money on experiences than things.
Just as the explosion in Chinese demand for iron ore caught the world napping, so is tourism infrastructure struggling now to keep up with demand – and it's still early days for the Chinese outbound industry, an industry that has gone from virtually nothing to world-leading in two decades.
A decade ago, there were just 316,000 short-term arrivals here from China. Last year there were 1,213,000.
While Australia is doing very nicely indeed out of this next phase of China's economic revolution, that 1.2 million was less than 1 per cent of the astounding 135 million Chinese who travelled abroad last year.
The local industry is concerned about our market share slipping.
More Chinese took their renminbi to Switzerland last year than Australia despite Switzerland being more expensive, further away and seriously deficient in spectacular coastline.
The common complaint is that we simply don't have the beds. Just for starters, we suffer a shortage of four-star hotels. And while the populist end of Australian politics complains about foreigners buying the farm, Australians aren't grabbing the investment opportunity. It was left to China to make 38 per cent of last year's investment in Australian tourism facilities.
0 comments
New User? Sign up