Visitors from China could do wonders for Australia’s economy. Mining is slowing down and we need other sectors like tourism to pick up.
And this chart from HSBC shows what a significant opportunity they could be.
In 2011 60 million Chinese took an overseas holiday, and accounted for 9% of all visitors to Australia.
By 2015, HSBC says this could rise to 130 million, and 200 million by 2020.
“If Australia continues to attract its current share of these visitors and Australia’s traditional tourism markets grow at average rates, China will account for 21% of total visitors to Australia by 2020,” says HSBC economist Paul Bloxham.
“This will see China overtake New Zealand as Australia’s largest source of tourists.”
Some quarters are in uproar over the recently-released budget. Regardless of your views, all agree that it is tough.
The Government says it has to be, since we’ve become accustomed to the opportunities decades of mining-driven boom have afforded.
Inevitably this will continue to decrease. Resources will still be Australia’s primary export, but other sectors such as tourism will become increasingly important.
To make the most of a growing middle class in China, and emerging markets generally, Australia needs to ensure it has the tourism infrastructure in place to remain an attractive holiday destination.
HSBC’s economics team estimates 1.3 billion people will enter the middle class by 2030 as emerging markets continue to develop, which means more disposable income that could stimulate Australia’s economy.
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