Global Power | Local Knowledge | Uniquely Personal
中文

Tourism benefits as a result of...

Tourism benefits as a result of the lower dollar

Although the Australian dollar falling will largely be seen as something of a negative for the country as a whole, according to some, the recent drop in its value has seen one sector receive a significant boost. 

While it may not be good news for the wider economy that the Australian dollar has somewhat fallen against the dollar and the pound in particular, the fact that it has has meant that both foreign and domestic tourism has increased. More people are staying at home because it costs more to holiday overseas, and more are coming from other countries because they are able to get more bang for their buck in the current climate. 

According to the findings published recently by the Australian government, there were some 620,000 foreign tourists in Australia in August of this year. This was a rise of two per cent compared to a year ago. In the same time period, the number of Aussies going on holidays overseas dropped by almost one per cent. 

"We are continually seeing very high numbers of short-term overseas arrivals and fewer Australians are deciding to go offshore because the currency has fallen by so much, and domestic trips become cheaper for them," explains Diana Mousina, an economist at the Commonwealth Bank of Australia.

Tourism is an important factor for Australia in the wider economy as well. For one, it employs, as a sector, more than 530,000 people across the country, and it continues to be the third biggest export the nation has, bringing in billions of dollars from across the globe year after year. 

On top of this, it also has the potential for showcasing the nation and all it has to offer to potential investors. Those who might buy property, for example, will often come to visit before doing so, and this can help to sway their decision making. 

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.

Subscribe Now