Wherever there is an increase in jobs there’s an increase in demand for shelter. Property economics!

Tourism is one of Australia’s biggest employers. From hospitality workers at restaurants, cafes, and hotels, to roles related to transport logistics such as airports and taxi drivers, and positions at major attractions like theme parks, theatres and sporting events. 

Sydney, Melbourne, Hobart, Wollongong, Byron Bay and other popular tourism destinations are recent beneficiaries of solid property price growth. Others will follow. Our buyer’s agents are currently very active in some of these markets right now. 

AN IMPORTANT PISTON IN AUSTRALIA’S ECONOMIC ENGINE 

According to Tourism Australia, about 600,000 jobs are directly held within the tourism sector, which in turn generated about $136 billion in revenue in 2017. That’s some serious coin running through our cash registers! 

The New South Wales tourism industry employs more than 170,000 people directly and recorded revenue of $40.5 billion in 2016/17 (up 5.4% on the previous year). In Victoria, about 143,000 people are employed in tourism-related jobs, which generated about $31.2 billion (growth of 8.8%). 

All the way along the Queensland coast, the Sunshine State has arguably the most tourist attractions however, growth in tourism expenditure of 3.2 per cent last year was below the national average of 5.3 per cent. 

Australia’s biggest increase in tourism expenditure in 2017 was in Tasmania (up 20 per cent). Tourism played an important role in the overall turnaround in Tasmania’s economy from a post-GFC recession to now being one of the best performed economies in Australia. 

THE ASIAN CENTURY OPPORTUNITY 

Australia has long been a dream location for international visitors – and that dream is becoming a reality for millions more holidaymakers every year. Currently, about 27% of visitations by tourists are from overseas but that figure is growing fast, especially from Asia. 

The number of international visitors through our airports increased 6.5% in the 2016/17 financial year – including a staggering 23% rise into regional locations across the country. 

As I’ve written about before, the Asian Century is real, it’s already been directly linked to some strong property market performances and the future opportunities for property investors are very excitement exciting. 

Asia’s middle class – particularly in China – is expected to grow by an extraordinary 2.5 billion people by 2030 and they’re expected to spend some of their newfound wealth on overseas travel. 

According to data, there were about seven million new tourism jobs created across the Globe in 2017, which was actually one in every five new jobs created in the world. The sector grew by 50% more than the world’s economy generally, and that figure is just the tip of the tourism iceberg if you ask me. 

Of course, Australia is perfectly placed geographically to make the most of this. We’re also seen as a safe destination, plus we’re an English-speaking nation. 

Australia has an enormous diversity of attractions. The world marvels at our beaches, koalas, Sydney Harbour, kangaroos, Great Barrier Reef, our convict heritage, beautiful rural experiences, aboriginal culture, rainforests, Dubbo’s wild safari zoo, Tassie’s scenery, wineries, food and booze experiences, sporting events, the list goes on. 

THE TOURISM BOOM IS JUST BEGINNING 

While the property market performance of big cities like Perth (10% growth across the 5-years ending December 2017) and Brisbane (20%) resemble the largely underwhelming Australian property market post-GFC. 

We are only 18 years in to the Asian Century. That fast-rising middle class mentioned earlier is only just starting to grow wings. 

International tourists are increasingly keen to explore more of Australia’s diverse attractions. Growth in passenger volumes is 2- 4 times the national average in various regional airports including Cairns, Dubbo, Armidale, Ballina, the Sunshine Coast and Launceston. 

Acknowledging the enormous opportunity, Tourism Australia has flagged a long list of tourism infrastructure projects. The pipeline is estimated to be worth $37.8 billion across more than 200 projects in aviation, arts and recreation, and accommodation. It would be irresponsible not to mention that tourism, as with every industry, can be adversely impacted by unforeseen events which result in a downturn. 

Risks can include a high Aussie dollar, oil prices, airline strikes, political instability, and even terrorism attacks. Relative to other parts of the world, Australia’s industry risk is generally regarded as low.