Economic Analysis: Tourism and Hospitality in Australia - Report

This report provides an economic analysis of the Australian tourism and hospitality industry, focusing on the impacts of the COVID-19 pandemic and the 2020 bushfires. It examines trends in domestic and international travel, including changes in visitor numbers, spending, and travel plans. The report highlights significant declines in both international and domestic tourism, with detailed data on the impact of the pandemic on various markets, including China, the US, and the UK. It also explores the shift in travel preferences, the effects of travel restrictions, and the potential for recovery as restrictions ease. The analysis includes statistical data from various sources, offering a comprehensive overview of the challenges and opportunities facing the Australian tourism sector. The report concludes by suggesting a potential for gradual recovery as the country moves past the pandemic's peak, emphasizing the significance of domestic tourism's contribution to the overall industry revenue.

Economic of Tourism
& Hospitality
Organisation

Table of Contents
Q.1.............................................................................................................................3
Q.2.............................................................................................................................3
Q.3.............................................................................................................................3
Q.4.............................................................................................................................3
Q.5.............................................................................................................................4
Q.6.............................................................................................................................4
Q.7.............................................................................................................................4
Q.8.............................................................................................................................4
Summary...................................................................................................................5
APPENDIX.........................................................................................................................6

Q.1
Australian citizens spend a sum of $78.8 billion towards domestic overnight
travelling in a year till March 2020, around up 6 per cent over last year. Number of
Australians' overnight-travel trips have rose by 3 per cent to 112.3 million, with 405
m nights out of house.
The combined effect of bush-fires as well as COVID-19 was having a major
effect on March quarter tourists. Overnight visitors dropped in quarter by 18% while
spending fell by 10%. In Jan and Feb of 2020, Australian bush-fires reflected their effect
on domestic night-time travel performance, with 6 percent and 7 percent decrease in
trips relative to same month during previous year.

Q.2
The top 3 foreign markets in Australia have all posted a decrease in tourist
numbers and spending in year ending March-20. Most trips from China have cancelled
as a consequence of COVID from Feb, resulting in largest visitor drop down 19 percent
to 1.1 million as compare to previous year ending Mar-2019. US and UK both reported
a 5% decrease in visitors to 714,000 and 637,000 as compare to Mar-2019. In China
market grow will faster after vaccine for Covid-19 will available due to highest
population in population.

Q.3
Spending wise comparison shows that in top three foreign markets, in case of
China spending dropped 15 percent to $10.2 billion. Where as in US and UK spending
dropped 7% to US$ 3.7 billion and around 5% to UK$3.2 billion respectively.
Expenditure rely on rates of flight tickets while visitors of number rely on festivals,
exceptional circumstances like COVID.

Q.4
With COVID-19 's impact starting in Feb 2020 and spreading rapidly in Mar-
2020, international visitors decreased to around 8.1 million by 6 per cent for year ended
March 2020. Business visitors decreased most down 8 percent to 925,000, whereas
spending dropped to around $3.6 billion by 15 percent. Visitors to educations also
dropped dramatically – down 8 per cent to 537,000, whereas spending dropped 5 per
cent to $12.1b. Holidays tourists have dropped to 3.6 m by 7 percent and spent
$15.6b by 7 per cent. Visiting family members and friends travel was more robust, with
visitors falling 2 percent to 2.5 million, while spending dropped 3 percent to $7.3b.

Q.5
As per National Visitors Survey, one in three Australian had changed travelling
plans within country. For individuals who had previous trips affected as 66% were
cancelled trip, 28 % postponed trip and 6% cancelled travel-trip which they were
already-on. Although, there was more tendency to hold over instead of cancelling
domestic trips already planned in coming period. It has been accelerative as limitations
are being reduced as well as there's more certainty about travelling.

Q.6
Summer bush-fires led to 6 percent and 7 percent declines in night-time trips
in months of Jan and Feb 2020, with significant decreases in tourist numbers reported
in New South Wales in Jan 2020, 16 percent falling to 3.3 m trips and Victoria falling to
2.0 million tourists in Feb-2020, down 14 percent. Spending also dropped to $4.7 billion
in February, down 21 percent to $325 million, with the biggest decrease reported in
South Australia.

Q.7
With currently restricted outbound travelling by Australian citizens, Australians
have the ability to divert some of $65.5 billion they have been spent abroad in
year 2019 on travelling within Australia. In May and June 2020, Over half (53 per cent)
of those surveyed expected to go on a local trip within next 3 months including 80 per
cent within next 12 months.

Q.8
Although results of March quarter indicated a substantial reduction in
tourism, performance of country to date through COVID's flattening curve' has created a
potential to gradually loosen restrictions and unlock some state boundaries for non-
essential travelling. A progression along this route will provide potential for a steady
improvement of tourism industry, with local tourism adding 70 percent of the overall
produced tourism $107 billion in 2019 prior to such pandemic.

Summary
From above report this has been summarised that Corona Outbreak and bush-
fires have lead to substantial impact on international and domestic travel in Australia.
The impacts of COVID-19 also were higher, with no time for recovering. By March, the
number of visitors dropped precipitously by 39 per cent and spending dropped
significantly, down 41 per cent or $2.6 billion in Mar-2020.

APPENDIX