New research has valued that the broader benefits of Chinese tourism to Australia could grow to an estimated $140 billion by 2025.
Commissioned and authored by LEK Consulting The broader economic potential of Chinese visits to Australia explores the broader economic potential of Chinese tourists to Australia.
Taking into account secondary transactions arising as a result of tourism - including education, goods and services, and growing Chinese investment in Australia – Chinese tourism presents an incredible opportunity for Australia, worth an estimated $140bn by 2025.
Australia China Business Council (ACBC) president John Brumby welcomed the release of the report, highlighting that “as this report identifies, Chinese tourists present Australia with an enormous opportunity to tap into the world’s largest middle class.”
“It is estimated that by 2025, 2 million Chinese tourists will visit Australia annually. Australia should view these tourists as brand ambassadors – a prime opportunity to directly market Australia as a provider of high quality products and services” Brumby said.
“As this report identifies, Chinese tourists present Australia with an important opportunity to tap into the broader Chinese market. When tourists have a great holiday in Australia they are more likely to purchase Australian products and services when they return home.”
Brumby pointed to the statistic that “Chinese tourists are more likely to buy Australian products and services after they return to China, with their average annual spend rising by 40% after their trip”.
However Brumby warned that while the headline figures in the report are impressive in themselves, the report also identified the need for both government and business to implement important structural reforms to ensure Australia remained competitive as an international tourism destination.
“With Chinese tourist numbers rising by 19% year-on-year between 2010 and 2015, there is no doubt that Australia presents an attractive product to Chinese tourists.”
However “in order to ensure that Australia is best placed to take advantage of this opportunity, it is critical that Australian business and government act in a coordinated approach.
“It is only when the wider business community is able to leverage the great experiences that Chinese tourists have in Australia, are we able to fully realise benefits that tourism brings to the Australian economy” Brumby said.
Key findings of the report include:
- 46% of Chinese visitors to Australia are repeat visitors.
- A significant proportion of visitors—20% of the survey sample—already have Australian permanent residence, even though they live in China. This group has an especially high propensity to participate in education in Australia, and to invest in real estate and businesses.
- A large proportion of all Chinese visitors say that they “probably” or “definitely” will engage in deeper economic engagement with Australia through tertiary education (64%), real-estate investment (43%) or business investment (38%).
- Of those who “definitely” intend to engage further, 85% said that their visit to Australia was “influential” or “very influential” in their decision-making.
- Visitors are more likely to buy Australian products and services after they return to China, with their average annual spend rising by 40% after their trip.