While not unilaterally even across the country, Australia’s tourism sector is booming.
Earlier today the NAB released its Australian commercial property index for the March quarter. One of the key findings was that confidence among CBD hotel owners was the highest of any sector.
The chart below, supplied by the NAB, shows how it stands head-and-shoulders above all others.
It’s little wonder they’re feeling confident. The charts below show that on the back of a lower Australian Dollar, short-term visitor arrivals and services-related exports are booming at present.
RBA Australian Dollar TWI
From March 2013 until the end of April 2015, the Australian Dollar trade-weighted index fell by approximately 17.4%.
Australian short-term visitor arrivals
Arrivals numbered close to 6.879 million in the year to November 2014 according to the ABS, an increase of 8.5% on a year earlier and a record high.
Australian tourism-related services exports
Total tourism related exports grew to $38.9 billion in the year to March 2015, 9.7% higher than a year earlier and a record high.
After being suppressed by a soaring Australian Dollar up until 2013, the figures have all improved dramatically.
As long as the Australian Dollar can remain at-or-below its current level the outlook for the CBD hotel owners, let alone the entire tourism sector, looks like it’ll remain elevated for some time yet.