Tourism

International visitors spend $38 billion

Kate Webster

International visitor spend continues to grow significantly, with figures up 17 percent in the past 12 months, led by the Chinese market reaching a record high of $8.9 billion.

Released today, the International Visitor Survey (IVS) also revealed over the 12 month period, international visitor spend reached $38 billion, up $5.4 billion.

Aided by a favourable exchange rate against the AUD, most of Australia’s key target markets enjoyed growth.

For the March 2016 quarter, Chinese visitor spend was up 21 percent, while other markets enjoying strong growth in the quarter included USA(+19 percent), Canada (+18 percent), Japan (+37 percent), Korea (+19 percent), Singapore (+17 percent), Indonesia (+20 percent), Hong Kong (+10 percent) and Germany (+19 percent).

Growth from Japan can be attributed to the leisure sector, with leisure spend recording an increase of 53 percent off the back of a strong 38 percent growth in visitor numbers, suggesting the market is responding very well to the aviation boost brought about by full service carriers.

Malaysia still displayed strong numbers despite significant aviation capacity cuts, with visitor spend up 18 percent for the quarter, while visitor spend from India was flat in this quarter, off the back of a strong Mar 2015.

Continuing to trend positively, UK visitor spend was up 6 percent, with growth largely driven by the holiday sector (+16 percent).

Tourism Australia managing director John O’Sullivan told Travel Weekly, “with another strong quarterly performance, international spending has now risen an impressive 17 percent over the past 12 months to a record high of $38 billion. The quarterly figures are particularly pleasing when you consider the same period last year was boosted by Australia’s successful hosting of the Cricket World Cup.”

“What these annual numbers show is that for every international visitor we attract to Australia, our visitor economy is benefitting to the tune of around $5,000. With international spending now growing at more than twice the rate of visitor arrivals, we are really starting to see the economic benefits of pursuing a high yield tourism strategy.

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