Dollar impact "modest", report says

Dollar impact "modest", report says
By admin


The falling dollar will only have a limited impact on the number of arrivals to Australia but tourists will spend more once they are here if the currency continues to weaken, a new report has found.

In its latest Tourism Outlook report, Deloitte predicted arrivals will climb 4.5% each year for the next three years with visitor nights rising 4.9%.

Asia, predictably, will account for two thirds of that growth, with China the single largest contributor.

Deloitte tourism, hospitality and leisure leader Lachlan Smirl said the falling dollar will be welcomed by tourism operators.

“While its value may have a relatively modest impact on decisions to visit Australia, its impact on spending levels is considerably more pronounced,” he said. “We forecast, for example, that as the dollar moderates over the next three years, expenditure by international holiday visits will grow by 8% per year in real terms.”

The decline in the dollar is also likely to slow growth in outbound travel as Australian destinations become more price competitive, Smirl said.

Deloitte described the size of the much-vaunted Chinese market as “unprecedented”, noting that more Chinese travellers are venturing beyond capital cities.

“If [China’s] growth trajectory were to follow a similar path to Japan, then in little more than 20 years the number of Chinese visitors to Australia could parallel today’s entire international tourism market,” Smirl said.

“The economic benefits for the cities, regions and towns successful in luring the Chinese traveller will, therefore, be very significant.”

Domestically, Deloitte said visitor night growth continued in the December and March quarters – rising 6.7% and 11.6% respectively.

It forecast visitor night and visitor trip growth of 1.6% and 1.7% respectively for each of the next three years.

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