New government warned of tourism trade deficit

Australia’s tourism trade deficit is a growing “black hole” and needs to be closely monitored by whoever forms the next federal government, the country’s peak tourism industry has warned.

Though confidence seems to be returning to the travel and tourism industry, figures recently released by the Australian Bureau of Statistics (ABS) highlighted a negative balance in the country’s tourism trade, Tourism and Transport Forum (TTF) boss Christopher Brown said in a Sydney Morning Herald report.

The warning comes as the number of Australians flying overseas for holidays in July was still more than 100,000 greater than the number of visitors the nation attracted for the month.

"For the year to the end of July, the difference is almost 1.1 million people, which is contributing to a projected tourism balance of trade deficit for 2010/11 of up to $9 billion," he said.

"This burgeoning black hole should be cause for concern for which party forms the next Australian government, and deserves urgent attention."

International tourist arrivals to Australia over the year to July displayed an 11 per cent growth, which the TTF attributed to the recovery of the Asian market after the crippling swine flu epidemic of 2009.

International arrivals from China rose 55.6 per cent (up 17,000 to 47,600), Japanese arrivals jumped 67 per cent to 35,600 and Hong Kong increased by 21.7 per cent to 16,800.

"The good news is ... [Asians] have resumed travelling to Australia, with arrivals from north Asia up 40 per cent,” Mr Brown said.

"Compared to last year, Australia welcomed an additional 51,000 visitors in July, with China and Japan accounting for more than 60 per cent of that increase."

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