Impacts of the Australian Exchange Rate

Impacts of the Australian Exchange Rate 1
IMPACTS OF THE AUSTRALIAN EXCHANGE RATE
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Impacts of the Australian Exchange Rate 2
Title: Research on the Impacts on Tourists Arrival in Sydney from Nepal
Introduction to problem statement and purpose of study
Tourism is the deed of going to another place away from to spend time leisurely, relaxing
and visiting the different places in that place. It also includes business reasons, education and
visiting friends and relatives. Tourism always involves paying for services and goods received by
the tourists and also paying for the places they visit. Money got from tourism is used by the
particular country in many ways, it may be used in development and infrastructure. Sydney in
Australia is the leading tourist destination for those who visit Australia for tourism. In 2012 there
were 10.5 million visitors and 4.3 million of them stayed within the city. The local community of
Sydney benefited directly from the tourists who stayed within the city. $1 billion dollars was
spent by them in shopping and another $2.8 billion spent in the hospitality industry excluding
already paid online accommodation fee. Most sites that attract tourists in Sydney are; Sydney
Opera house, Darling Harbor, Sydney Harbor bridge, Harbor Cruises from Circular Quay and
The Rocks. In 2018, there were 4.05 million international visitors and 10.67 million domestic
visitors. That means the numbers went up leading to a particular aspect being favorable. The
exchange rate of any country determines the number of tourists visiting that country. The
researcher in this report presents how the exchange rate of the Australian dollar has affected the
number of tourists streaming into Sydney from Nepal.
The number of tourists in Sydney Australia has been increasing for the past few years and
the number is expected to rise even more. The main reason found to bring the increase of tourists
is the weak dollar of Australia. The weak dollar enables the tourists to spend less in travelling
and also to spend in buying products and services. With the affordable rates large families are
able to come for holidays in Sydney. When rates are normally not friendly the number of family

Impacts of the Australian Exchange Rate 3
members tend to be reduced and even when they come, they do not stay for long since money is
needed every day as a tourist. Most of the tourists go to Sydney for leisure while some are found
to go visit those studying there (Plummer, 2019). There has been an increase of number of
students of Nepal studying in Sydney. A lot of Nepalese has preferred to study in Australia with
a number of 51, 334 being allowed by the government to study in Australia. Many cite the good
quality of education, the work-study wages which is higher compared to other countries which
enables students to pay their tuition with much ease and the peaceful environment offered to
student foreigners.
With increase of tourists to Australia has also caused an inflation in the tourism industry.
The increase of tourists has promoted industries such as transport, education, restaurants and
local businesses. Such businesses have evolved to change the lives of the local people in Sydney.
The tourism industry has boomed in Sydney especially the cruise ships. There has been an
increase in them lately. Two hundred and sixty-five ships docked the Sydney Harbor in
2012/2013. A study done by the City of Sydney in 2015 found that the impact caused by the
Cruise ships on the economic sector generated a total of $350 million in 2010/11 and is expected
to rise further in 19/2020 to $1.1 billon. The transport industry has benefitted from the influx of
tourists because of the many travels done by the tourists to different destinations.
Employment sector is also not left behind. Due to the exchange rate of the Australian
currency that has led to an increase of tourists from Nepal there has also been an increase of jobs
offered. The tourism industry has offered 486, 000 j0obs to the locals of Sydney. 171, 100 locals
were employed directly in hotels, transport systems, beauty and spa saloons, bars, translators,
take away services, retailers, and accommodation. Increase in employment has improved the
lifestyles of the people of Sydney.