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A tourism expert has warned Australia not to be complacent with the Chinese tourism market despite a boom in travellers from the Asian nation in recent years.
Key points:
- A UBS report found a sharp pullback in Chinese travellers' plans to visit Australia
- Downturn likely related to the weaker outlook for the Chinese economy and trade war
- A change in public sentiment around the country could also impact tourism to Australia
Sam Huang, a professor of tourism and services marketing from Edith Cowan University, said Chinese tourist numbers had been growing strongly for many years, but warned it could slow down as China's economy turns south.
"There's always a turning point — we haven't seen that point yet, but it could happen," he said.
Tourism Research Australia says more than 1.3 million Chinese — excluding children — visited Australia last year, accounting for more than 15 per cent of the total inbound market, and spent $11.5 billion.
Where Chinese tourists intend to visit in the next 12 months
| April 2018 | October 2018 | |
|---|---|---|
| 1 | Japan | Japan |
| 2 | Australia | South Korea |
| 3 | South Korea | Thailand |
| 4 | Thailand | Australia |
| 5 | Singapore | Maldives |
| 6 | United States | Singapore |
| 7 | Maldives | United States |
But a recent UBS report on Chinese overseas travel intentions found a sharp pullback in people's plans to visit Australia, which has fallen from the second most popular destination to the fourth.
UBS said it believed the downturn was likely related to a weaker forecast for the Chinese economy and the uncertainty brought by the China-US trade war.
Professor Huang said many Chinese, particularly those from the major cities, might not think of Australia as an exciting prospect.
"Lack of innovative promotions and advertising campaigns could give [Chinese tourists] a sense of boredom," he said.
"Attracting return visitors is pivotal to any tourism destination. If people don't perceive anything new and exciting happening, they wouldn't want to come again."
Mr Huang said Australia also needed to upgrade its infrastructure to remain attractive and to cope with the current volume of tourists.
On Tasmania's east coast, Glamorgan Spring Bay Mayor Debbie Wisby told the ABC earlier this month that the popularity of towns in her municipality, north-east of Hobart, had begun to place "a lot of pressure on facilities, such as toilets".
"I was told the other day there were 30 people lined up at the Orford public toilets," she said.
Professor Huang said public sentiment around the country could also impact tourism to Australia, particularly with the Chinese market.
"I feel the Australia Government's foreign policy stances could have potential effects on tourist numbers," Professor Huang said.
In April last year, China's Foreign Ministry issued a travel warning on social media ahead of the May Day long weekend when many Chinese travel overseas, highlighting unspecified security risks for its citizens visiting Australia.
However, there was no evidence the warning affected the number of Chinese tourists to Australia last year.
'For the short to medium term it's all about China'
Professor Brian King from Hong Kong Polytechnic University's School of Hotel and Tourism Management said South Korea, Japan, and Taiwan were all examples of places that had been targeted by China in the past, leading to a sharp drop of tourist numbers from China.
"There is a bit of sensitivity with China-Australia diplomatic relations, though I believe that Australia is less vulnerable than many other destinations that have been hit at various times by unfavourable attitudes from the Chinese Government," he said.
"Australia is fortunate in having other growth markets from Asia … and India will follow in due course.
"But for the short to medium term it's all about China."
Professor King said he believed the numerous direct flight routes established between Australia and major provincial capitals in China would mean many first-time tourists would still pick Australia for travel.
"Though the growth of the Chinese economy is decelerating — and some of this is a consequence of the trade war — the demand among Chinese consumers for services continues to grow fast, including for outbound tourism," he said.
"So I anticipate that [China's outbound tourism sector] will be growing faster than the overall Chinese economy."
Tourism Australia said Sydney, Melbourne, and the Gold Coast were still top tourism destinations while adding that spending by Chinese tourists had grown 12 per cent in the year leading up to September 2018.
"Our consumer research which we conduct regularly in China tells us that we remain a highly aspirational market for our target customers who value Australia for its nature and wildlife, safety and security, and food and wine," it said in a statement.
Australian Tourism Minister Simon Birmingham told the ABC that Chinese visitor numbers remained promising and that other market opportunities were still opening up.
"Recent growth in Chinese tourists has been especially strong among independent travellers, who we expect will continue to flock to our shores, enjoying our diverse natural beauty, amazing food and wine and varied cultural experiences," he said.
Topics: tourism, business-economics-and-finance, travel-and-tourism, lifestyle-and-leisure, foreign-affairs, world-politics, china, australia, melbourne-3000, sydney-2000, tas, asia