With the dipping Aussie dollar, more people travelling in than out of Australia
Many Aussies are rethinking their international holiday plans and opting for local travel instead, thanks to the weakening Australian dollar. While this may sound like a vacation dampener, it could actually help boost local economic growth in the coming years, according to experts.
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Business Insider reported that UBS economists George Tharenou and Scott Haslem have suggested that the lower dollar is helping boost Australia’s tourism sector at a time when other areas of the economy are misfiring.
With the Aussie dollar slipping against the greenback, growth in international departures has dipped to just 2% per annum since 2013, down from an average of 10% between 2003 to 2013.
On the other hand, growth in international arrivals has risen to 5% per annum, up from flat growth between 2005 to 2013.
These numbers suggest that net overseas arrivals is now running at the highest level since the Sydney Olympics in 2000. Given these trends, the economists predict that net exports of tourism services are now at the highest level seen since 2011, equating to 0.25% of total Australian GDP.
This means the dipping Australian dollar could actually benefit the economy.