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Tourism in Australia is the mo...

Tourism in Australia is the most prominent business sector

Tourism is becoming a prominent business sector in Australia and is on its way to being a cornerstone of the country's economic growth.

One of Australia's other large economic influences is its property market, which is fragmented enough to assuage any fears of a property crash.

It is to tourism however that Australia looks towards to help boost new project builds at the Great Barrier Reef.

Tourism looks to be on the increase in Australia in general as the dollar slipped against all but three of the Group of 10 currencies this past year.

This has made Australia one of the cheapest places to holiday for people travelling overseas.

Similarly, cruise companies are scheduling more regular trips to areas that are close to the reef, which is likely to draw a high level of visitors.

Overseas visitors aren't the only boost to the Australian economy as the falling cost of the dollar has encouraged a rise in domestic holidays.

As Australian residents are heading towards spending more money in-bound, the tourism sector is only set to rise further.

Neighbouring countries are also choosing to holiday in Australia as a cheaper option, for example tourists from China are a large area of growth for the country's tourism.

This is according to Gareth Aird, an economist at CBA, who has recorded that in 2014/2015 the amount of arrivals from China to Australia rose to 935k from 770k in the previous season.

He said said that: "If current trends are maintained, one million Chinese residents will holiday in Australia in 2016. In our view [CBA's view] this is likely to happen."

Mr Aird also claims that the rise in Chinese tourists to Australia is a reflection of the lowering Australian dollar and he expects that it will have a positive effect on inbound tourism from the UK and from America.

Australian states that are likely to receive the most benefit from the lift in tourism include New South Wales and Queensland - the home of the Great Barrier Reef.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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