Modern Australian
Times Advertising

We depend so much more on Chinese travellers now. That makes the impact of this coronavirus novel

  • Written by Mingming Cheng, Senior Lecturer, School of Marketing, Curtin University

Australia has joined New Zealand, the United States, Indonesia, India, Israel and other countries in deciding to refuse entry to all foreigners flying from or who have recently been in mainland China.

These bans dramatically escalate the potential economic impact of the novel coronavirus.

Read more: How does the Wuhan coronavirus cause severe illness?

Over the past two decades China has grown from a minnow to a whale in international travel. Not counting mainland Chinese visiting Hong Kong and Macau (about 76 million in 2018), data from the United Nations World Tourism Organisation show the number of Chinese going abroad climbed from 2.8 million in 1997 to about 73 million in 2018.

This places China fourth in terms of international visits, behind Germany (about 92 million), the United States (88 million) and Britain (74 million).

Rise of the Chinese traveller

Besides Hong Kong and Macau, Chinese travellers most visit neighbouring nations – Thailand, Japan, Vietnam, South Korea and Singapore. Next is Italy, then the United States and Malaysia.

Australia is somewhat down the list – just the 17th-most-popular destination for Chinese visitors in 2018 (1.4 million visits). New Zealand was the 26th (about 448,000).

We depend so much more on Chinese travellers now. That makes the impact of this coronavirus novel CC BY But China is now Australia’s largest source of international visitors. Short-term arrivals from China overtook those from New Zealand (the top source for many decades) in 2017. We depend so much more on Chinese travellers now. That makes the impact of this coronavirus novel In the 12 months to November 2019, there were 1.44 million Chinese visitors to Australia, according to Tourism Australia. This was about 15% of the total 9.44 million short-term arrivals. But Chinese visitors contributed relatively more to the Australian economy. The average spend per Chinese trip was $A9,235. This compared with $A5,943 for Germans, $A5,219 for Americans, $4,614 for Japanese and $A2,032 for New Zealanders. This meant Chinese travellers contributed about A$12 billion to the Australian economy – or 27% of the total amount spent by all international visitors. International tourism accounts for about a quarter of Australia’s total tourism market. That means, in the greater scheme of things, Chinese travellers help create 0.6% of Australia’s annual GDP. We depend so much more on Chinese travellers now. That makes the impact of this coronavirus novel China overtook New Zealand as the leading country of origin for short-term arrivals to Australia in 2017. Mick Tsikas/AAP The student effect The reason the Chinese spend (on average) so much more than other visitors is due to the large number of Chinese who come to Australia to study. The Tourism Australia data show almost 275,000 of the 1.44 million Chinese visits – about 20% – were for educational purposes. By comparison, study was the reason for fewer than 14,000 – or less than 1% – of the 1.42 million visits by New Zealanders. Read more: Why New Zealand is more exposed than others to the economic chills of China’s coronavirus outbreak Chinese students stayed an average of 124 nights before going home and spent an average of $27,000. This is more than any other nationality. The average spent by all international students was A$22,000. Chinese tourists, on average, stayed an average of 14 days and spent A$4,655. The average for all international holidaymakers was A$4,286. The biggest-spending were the Italians (A$7,174), Germans (A$6,028) and British ($A6,011). So Chinese students accounted for just shy of 58% – or A$7.1 billion – of all the money spent by Chinese visitors. Ban impacts Australia’s travel ban has come just in time to disrupt the plans of thousands of Chinese students coming or returning to Australia. February is normally the peak month for Chinese arrivals in Australia. In 2019, the month recorded 206,300 arrivals – roughly double the average month. This is because this month is when many Chinese students arrive or return to Australia to start the university year. (It’s also due in part to the proximity of the Chinese lunar new year – January 25 this year, February 25 last year – when hundreds of thousands of Chinese travel for a holiday or to visit family.) Read more: The coronavirus outbreak is the biggest crisis ever to hit international education Chinese students enrolled in Australian universities comprise 38% of all full-fee paying international students. With international students now contributing about 23% of university revenues, this suggests the Chinese market alone contributes about 9%. More Chinese students come to Australia for vocational education and training or school. All up, Chinese students account for about 30% of total overseas student enrolments. We depend so much more on Chinese travellers now. That makes the impact of this coronavirus novel CC BY Long-term impacts Our main point of reference for the economic impact of the coronavirus is the impact of SARS in late 2002. The Chinese government imposed similar travel restrictions to now. But Australia did not ban travellers from China outright. It instead relied on screening at airports. In May 2003 just 3,100 Chinese visited Australia, a 75% decline on the 12,600 visitors in May 2002. Visitor numbers from other Asian countries also suffered, with the total number of international short-term arrivals falling 8.5% in April , then a further 2.6% in May. But SARS was contained relatively quickly. By July the Chinese government had lifted its restrictions. The following month Chinese arrivals were back up to more than 12,000. We depend so much more on Chinese travellers now. That makes the impact of this coronavirus novel Chinese visitor arrivals during and after the SARS crisis. Australian Bureau of Statistics The economic impact of SARS was therefore “short-lived and limited”, according to the Australian Treasury. Read more: Fear spreads easily. That's what gives the Wuhan coronavirus economic impact The economic impact of the novel coronavirus is shaping to be more signficant, based on the scale of crisis, the severity of travel restrictions, the likelihood travel bans will stay in place for longer and the much greater numbers of Chinese tourists and students on which Australia’s tourism and education industries have come to rely.

Authors: Mingming Cheng, Senior Lecturer, School of Marketing, Curtin University

Read more https://theconversation.com/we-depend-so-much-more-on-chinese-travellers-now-that-makes-the-impact-of-this-coronavirus-novel-130798

What People Mean by “Alternative Doctor” And Why Expectations Around Care Are Changing

When people search for an “alternative doctor,” they’re usually looking for something specific, even if they haven’t fully defined it yet. I...

Why Does My Power Keep Tripping? Common Causes Explained by Electricians Sydney

The electrical system is the lifeblood of your home, powering everything from your phones to cooking utensils and more. But from time to time, your po...

Interstate Car Transporter Urges Buyers to Book Early

As the conflict in the Middle East continues to put increasing pressure on local fuel supply, Australian transport companies are experiencing increasi...

Digital Minimalism for Business Owners: Fewer Tools, Better Systems

Be honest. How many apps are open right now? One for scheduling, another for invoices, a third for customer notes, plus a spreadsheet someone email...

The Importance Of Proactive NDIS Renewal Preparation For Sustaining Your Provider Business

Your NDIS renewal notice is not a signal to start preparing. By the time it arrives, preparation should already be well underway. For new providers, s...

Why Fire Extinguisher Testing in Sydney Is Becoming a Records Game, Not Only a Maintenance Job

A fire extinguisher used to feel like one of the simpler parts of building safety. It hung on the wall, wore a service tag, and sat there quietly unle...

The Switchboard Upgrade Question Every Melbourne Renovator Should Ask Before the Walls Close Up

Renovations have a funny way of making people think on surfaces first. Splashback, stone, joinery, tapware, paint. Fair enough too. That is the exciti...

Winter Sanitation Gaps in Parramatta Kitchens: A Hidden Pest Risk

Winter brings a host of changes to our homes, from the chill in the air to the cozy warmth indoors. However, this season also introduces sanitation ch...

When to Seek Advice from Employment Lawyers in Melbourne

Australian employment law is detailed and, at times, complex, with rights and obligations that aren't always obvious to employees or employers witho...

7 Benefits of Professional Gutter Cleaning for Australian Homeowners

Gutters aren't exactly glamorous. They sit up there on the edge of your roof, doing their job quietly - until they stop working. Clogged, overflowing ...

Pipe Floats Strengthening Pipeline Performance In Demanding Environments

Pipelines often travel through environments that are anything but predictable, water currents shift, terrain changes, and materials keep moving unde...

Why Ceiling Fans Are Essential For Comfort, Efficiency, And Modern Living

Creating a comfortable indoor environment is not just about temperature; it is about how air moves, how a room feels, and how efficiently energy is ...

Why Duct Cleaning In Melbourne Is A Smart Investment For Healthier Living Spaces

Behind your walls, ceilings, and vents lies a network quietly working every day to keep your home comfortable. Yet over time, this system can become...

Disability Service Providers Supporting Inclusive And Independent Living

Finding the right support system can feel like assembling a puzzle where every piece must fit just right. For individuals and families navigating di...

A Beginner's Guide to Owning a Caravan in Australia

Owning a caravan opens up a style of travel that's hard to match for freedom and flexibility. However, for those just starting out, the process of c...

Preparing Your Air Conditioner for Summer: What Most Homeowners Overlook

As temperatures rise, many homeowners switch on their air conditioning for the first time in months — only to find it’s not performing the way i...

What Actually Adds Value to Properties in Newcastle

Newcastle has seen steady growth over the past few years, with more buyers looking beyond Sydney for lifestyle, space, and long-term value. As dema...

What is Design and Build in Construction?

Imagine you’re about to start a new construction project, maybe it’s a custom home or a commercial building. You’ve got the idea, the land, an...