ACCC decision could impact China growth

The draft determination by the ACCC on a joint venture between Qantas and China Eastern, casts a negative light on the future growth of the Chinese visitor market to Australia, ATEC Managing Director, Peter Shelley said.

“The determination, which suggests denying authorisation for the airlines to coordinate their operations between Australia and China, will put a handbrake on what is expected to be a over 1 million visitors by 2020 and flies in the face of the Government’s attempts to build stronger trade relations with China,” Mr Shelley said.

“China is our fastest growing inbound market and will be worth over $8 billion in the next 10 years and we must have appropriate air capacity to cope with the increase in demand now, and into the future."

“This is not a stagnant market where individual share is a concerning factor, rather we have a rapidly expanding market and a limited ability to service that needs big picture thinking.”

Mr Shelley said the Chinese visitor market was evolving fast, moving beyond the big city destinations and regional connectivity, both here and in China, is an important element of the continued export tourism success.

“Even the most recent research has shown that younger Chinese visitors are exploring well beyond their arrival points and heading to regional Australia."

“Chinese visitors between 25-34yo are the biggest group of FIT travellers who travel to Australia as holiday makers, who are here on their first trip, and are more likely to travel more broadly, including to regional areas."

“This regional dispersal is not only a key to our continued success in attracting Chinese visitors, it is crucial to the survival of thousands of regional tourism businesses who are developing their product to capture this market."

With over half a million Chinese FIT visitors coming to Australia between 2011-2013, the data reveals first time visitors are most likely to be under 35 yo (34%) and 59% of those visitors are here for a holiday.

“As the representative organisation of export tourism in Australia, ATEC has taken an active role in both supporting our members to engage Chinese visitors, and in advocating to remove the impediments to the industry’s growth in this market."

“We would urge the ACCC to consider the long term demands, growth and opportunities coming from the China market and to ensure they support Australia's export tourism in their final decision.”

As part the export tourism industry in Australia, Qantas is a member of the Australian Tourism Export Council.

sourced:traveldailynews.asia