A fall in the Australian Dollar will benefit tourists visiting Australia.
09 July 2013
Australian tourism set to benefit from dollar fall
The Australian tourism industry is eagerly anticipating a predicted fall in the Australian Dollar in the second half of 2013.
While the country's strong economy, a result of the still-strong mining and construction industry, may have kept Australia from the perils of recession in the wake of the Global Financial Crisis, the tourism industry struggled to battle the high riding dollar with international tourists reluctant to get less for their money and Australians eager to get more for theirs abroad.
But as other economies continue to recover and the mining boom beginning to settle in Australia, the dollar looks set to balance against other currencies, a prospect the Australian tourism industry will surely benefit from.
The Canadian Imperial Bank of Commerce - one of the most accurate predictors of Australian currency - predicts the Australian Dollar will fall to US$0.87 by the end of the year, compared to its current level of US$0.91.
Dianne Smith, chief of the Victoria Tourism Industry Council, says such a fall would be counteracted by a rise in inbound international tourism.
"The feeling from local operators, particular ones who deal with international visitors, is positive," she said.
A fall in the dollar not only spells good news for international tourism, but for domestic tourism too, with fewer Australians choosing to travel abroad should prices fall.
"Clearly the falling dollar makes it less expensive for international visitors but there is a double impact because it does have an impact on the domestic market where a lot of domestic travellers will be prompted to consider a local destination," added Ms Smith.
The Australian Dollar has already fallen from US$1.05 to its current level since April and results are already beginning to be felt with international arrivals up 4.4% for the year in May.
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