Australia’s Failing Economy Boosted by its Tourism Industry

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Quantas. Source: Wikipedia

The plight of the Australian dollar has been well documented, and it doesn’t look like it’s going to recover any time soon. Currently it is struggling somewhere south of the 70 cents mark against the US dollar.

However, this depreciation of the Australian dollar hasn’t had a detrimental impact on all of its local industries. The tourism industry in Australia is booming because holidays to the Southern Hemisphere are now deemed more affordable for international travelers. With the price of the dollar nearly half of what is was only 5 years ago, vacationers are getting more for their money when they travel to Oz.

Back in 2003, the Australian dollar began increasing in value, eventually settling at 110 US cents during the early parts of 2011. Since then it has been on a steady decline.

In 2014 the country saw 935,000 international travelers fly into Australia. And aviation experts are predicting that this figure will surpass the 1 million mark in 2016 as more people are enticed by cheap holidays to Australia. The most significant amount of travelers comes from Asia especially China as the Yuan stands strong against the dollar.

Additionally, the country is seeing a steady influx of visitors from the UK. Australia has always been a go-to destination for many UK holidaymakers, and there’s a sizeable amount of UK nationals living in Australia now which means many family and friends regularly make the journey to visit their loved ones. In 2013, it was reported that 1.27 million Brits lived in Oz, and this is just one of the contributing factors to the increase in UK visitors. There has also been a marked increase since the 90s of over 100,000 UK expats living in Australia which is yet another determining factor for increasing statistics.

The majority of the travelers that come from the UK depart from its flagship airport, Heathrow, which reaches over 185 destinations across the globe and facilitates 80 different airlines. Heathrow is also the third busiest airport in the entire world with 5 very large terminals in operation. And while its most popular flights are to Hong Kong and New York, Sydney and Melbourne aren’t too far behind.

As the tourism industry continues to prosper, maybe this is the upswing that the Australian economy needs to help it get back on its feet. Australia is now a relatively cheap place to visit for the rest of the world but, for Australian nationals, it has become an expensive one to live, until its currency recovers.

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