The boom in Chinese tourism to Australia is continuing to provide a huge boost to the Australian economy, an economist at the Commonwealth Bank of Australia said on Friday.
Senior economist at the Commonwealth Bank of Australia Savanth Sebastian said that even as the Australian dollar strengthens, the tourist levels should continue to rise.
“I think we have seen signs of the growth rate easing compared to twelve or fifteen months ago, with growth rates now at 8 to 10 percent per annum. The pace of acceleration has certainly slowed, but the quantum in terms of the number of tourists will continue to grow,” Sebastian said.
The economist said inflow of tourists have significant knock-on effects for the overall Australian economy.
“It feeds a lot of different sectors, from transport to retail, to cafes and restaurants, even the support sectors around food and deliveries,” Sebastian said.
“It is providing a big win, and you can see it in a couple of the key capital cities across the eastern seaboard.”
But, it was not just the major capital cities in Australia that are benefiting the most economically from this tourism boom, and Sebastian identified one city in particular where tourists from China have had one of the biggest positive impacts of all.
“If you look at Hobart, which is a smaller eco-system and any sort of tourism impact is felt in an even bigger fashion, because it just feeds through the economy a lot quicker,” the economist said.
“So, I think its (Chinese tourism) a very big positive, and I think it is supporting a lot of the capital cities, particularly on the eastern seaboard.”