While Australia commodity exports are taking a hammering, there are some bright spots.
Malcolm Wood, chief investment strategist at Bank of America Merrill Lynch, sees opportunities in tourism and education.
And China, whose slowing demand for the makings of steel is a key source of drag on commodity exports, is the source of of a rise in tourism.
It’s the merging middle class in China, and their rising demand for travel, who are driving a tourism boom in Australia.
The airlines have responded, increasing capacity between China and Australia, as this chart shows:
According to Bank of America Merrill Lynch research, seat capacity on flights between China and Australia will rise by about 44% by March next year.
This means the monthly capacity rising to more than 120,000 passengers from about 75,000 a month currently.
Arrivals from China have increased by 135% over the past five years, to 940,000 from 400,000.
And Chinese international student enrollments have increased by 11% so far in 2015 with the lower Australian dollar making fees cheaper .
Australia is third in the world when it comes to providing education to international students, according go this slide prepared by listed Australian provider Navitas:
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.