Tourism might replace mining as the driver of the Australian economy as new tourist attractions and a diving dollar increase the country’s appeal for Asian visitors.
After his business won the proposal to establish part of Brisbane’s waterside into a huge casino and resort complex, Echo Entertainment manager Matt Bekier said on Tuesday that Australia could be seeing the beginning of a tourist boom.
“This is going to be the next mining boom,” the Echo chief executive said. “If we search in Asia in terms of the aspiration of where individuals desire to go to, Australia stands apart as No 1 in terms of aspiration and desire to go to. But we have to do with number 14 of the places they actually go to, there’s a big opportunity.”
China is Australia’s fastest growing tourism market with 918,000 visitors in 2014 – an increase of 21.7 % – and second only to New Zealand. Chinese visitors were, however, the greatest spenders in Australia, splurging $5.7 bn in 2014, up 19 % on the previous year.
The continuing fall in the Aussie dollar, which some experts think could be up to around US60 cents, is most likely to assistto aid Bekier’s prediction by making tourists’ money go additionally.
The US dollar enhanced again overnight on Monday after James Bullard, who sits on the United States Federal Reserve’s rate-setting committee, said a rate rise was most likely in September.
Integrated with the falling rate of vital commodities such as iron ore, gold and oil, his remarks put more pressure on the Aussie which lost ground on Tuesday to sit at US73.51 c in afternoon trading.
The minutes of the July meeting of the Reserve Bank of Australia also kept the down momentum on the currency when they were released on Tuesday.
The bank stated the Aussie’s drop against the United States dollar to six-year lows was not enhancing the economy as expected.
“Further depreciation seemed both most likely and required,” the RBA said. Nevertheless, it kept in mind noted indications of ongoing improvement in the tasks market, and said inflation remains well consisted of.
Bekier stated Echo, which beat James Packer’s Crown Resorts to the Brisbane reward, would be moving its headquarters and 300 personnel to the city to manage the brand-new job.
The Queen’s Wharf waterside precinct consists of 5 hotels, 3 residential towers, 50 bars and dining establishments, a grand ballroom, a cinema and new footbridge to across the river to South Bank.
The Queensland premier, Annastacia Palaszczuk, said the task would bring in countless tourists each year.
“The flow-on impacts will be understandinged of decades to come,” she included.
Tourist Australia handling director, John O’Sullivan, said that Australia was getting in an important financial cycle where its service sectors would play an increasingly essential role in driving the nation’s future success and sustainability.
“With worldwide tourist to Australia continuing to grow to record levels continued financial investment in new product, consisting of integrated resorts, as well as existing tourism product is crucial to ensure we have the ability to cater to the growing variety of visitors,” he said.
“Guaranteeing we have a diverse range of item and experiences to meet the fast growth and requirements of this market in particular will end up being even more essential,” Mr O’Sullivan stated.
Construction on the Brisbane job is set to start in 2017.