Tourism is not only great for the economy but also for the property markets. And as the strong Australian dollar weakens Australians are more likely to travel domestically, while foreigners are more likely to finally venture to our shores.
Furthermore, the burgeoning middle-classes of China and India are seeking places to vacation and spend their hard-earned money. This has created a new population of tourists coming to Australia. In the past decade, the number of Chinese tourists visiting Australia has increased by 13.4% annually-overtaking Japan and Britain.
Interestingly enough, China is spending more money than the tourists coming from New Zealand or Britain. As the world expects the middle class of China to grow, this only means great news for Australia’s tourism sector. How will the tourism growth help the property sector? As more money goes into the system, this increases the money in many Aussie’s pockets and therefore results in spending rather than saving especially on property.
It is expected that this will help the three big capital cities the most as the average Chinese tourist spends more than two-thirds of their entire trip in the nation’s three biggest cities. And who knows, they might even take a look at the local property market for their own investment portfolios while they are in town.
Quotations and Figures taken from “New wave of tourism is good news for Australian property markets: Michael Yardney”, 7 June 2013 on Property Observer.