International Visitors Survey shows TNQ falling further behind

Posted on March 30, 2019 by Pete Faulkner - Cairns, QLD, TNQ, Tourism, Uncategorized

The (delayed) release of the Dec 2018 International Visitor Survey from TRA (available here) shows the Tropical North falling further behind the nation and State. Nationwide international visitor numbers increased by 4.8% y/y for the year to Dec 2018 with expenditure up 8.0% y/y.

The visitor gains in Queensland were less impressive (up 2.3%) but expenditure jumped by a very healthy 13.3% and now sits just shy of $6bn for the year.

Unfortunately, although not surprisingly, TNQ has fared far worse. International visitor numbers fell by 3.8% with expenditure up just 0.2% (bear in mind these are nominal figures; real, inflation-adjusted expenditure will have fallen). All of TNQ’s major international markets saw visitor numbers fall; China was down 4.7%, Japan down 0.4%, US down 4.2% and the UK dropped 13.6%. Anecdotal evidence on the back of the poor wet season weather would suggest that the March 2019 quarter is unlikely to see any improvement to the region’s fortunes.

Since the peak in Chinese visitation to the region in Dec 2016 Chinese visitor numbers to TNQ have fallen by 10.2%; in the same period they have increased by 18.5% to Australia.

Recent concern from the industry, local government and (belatedly) the State government has seen a focus on formulating some possible solutions to the issue of international visitors to the North; time will tell how effective those prove to be.

TNQ is doing far better when it comes to the far larger domestic market where data for the year to Sept 2018 showed total domestic expenditure up 17.2% for the year. The next National Visitors Survey (originally due for release next Wednesday) will hopefully hold better news for the region.