Published on 30/01/2016 by Punchmedia

Australian Business Must Brace for Tourism Tornado

As income levels rise Chinese travelers are poised to look beyond nearby destinations such as Hong Kong and Macau as they widen their horizons, leading to an expected influx for the tourism industry in Australia. A recent report from broker CLSA has forecast that Australasia will experience the highest growth rate of any region in the world with Chinese visitors expected to increase by an average of 22 per cent a year between 2014 and 2020 after rising by 19 per cent a year from 2009 to 2014. According to the report, in contrast the most popular outbound Chinese destinations, Hong Kong and Macau, are poised to grow at a compound annual rate of just 2 per cent and 4 per cent in the years to 2020. "As people become more experienced and wealthier, they will travel further afield," Hong Kong-based CLSA regional head of consumer and gaming research Aaron Fischer said. "Income growth is still positive in China. As people earn more money they are looking to allocate more of their income and wealth to tourism and travel. Even if there is a slight slowdown in GDP growth, we don't see outbound tourism slowing at all." CLSA forecast the number of Chinese outbound trips was expected to rise to 200 million by 2020. That compares with last year's figure of 125 million trips, of which 58 million were to Hong Kong or Macau. The report believes that by 2020, 3.6 million Chinese visitors will have traveled to Australasia, more than double last year's figure of 1.37 million. Chinese tourists are already the most lucrative visitors to Australia, spending approximately $7.7 billion a year. According to CLSA's most recent annual survey of Chinese travelers, Australia ranked ninth as a preferred destination behind countries such as South Korea, Japan and Thailand, but that jumped to fourth if money was no object, behind only the United States, France and the Maldives. Australia is now not only seen as a top four destination with Chinese visitors if money is no object but importantly, it is also perceived as a safe place to visit. CLSA's survey found it ranked as the No. 1 consideration for Chinese tourists. * With AFR

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Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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