In the aftermath of the commodities boom, Australian exports to China are now becoming more diverse. There is strong growth in the export of services such as education and tourism, and growing Chinese investment in Australian real estate, infrastructure and different types of businesses. Growth in tourism has been particularly strong. Visitor arrivals from China hit 1 million per year for the first time in 2015, on the back of 19% annual growth between 2010 and 2015.3
This paper explores an emerging risk for Australian policymakers and businesses – that if they fail to adequately take into account the very strong linkages between Chinese visits to Australia and their possible ongoing relationship with the country’s trade sectors. That collectively we will fail to capitalise on the full economic opportunity.
L.E.K. Consulting has established that there are already very powerful links between Chinese tourism and other sectors of the Australian economy, which are not yet well understood.
03202018120328