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19 Feb 2020
Australia: Coronavirus hit tourism – ANZ
Economists at ANZ have carried out research which shows a steep drop in airport spending in February, reflecting coronavirus-related travel bans and lower appetite for international travel. EUR/AUD is trading at 1.612.
Key quotes
“Spending in small airports with mostly domestic flights did not fall. Spending in major airports (Brisbane, Melbourne, Perth, Sydney) dropped 27% from the week ending 21 January to the week ending 8 February.”
“The effect of this fall in international tourism could be concerning for Australia’s economic activity. We recently estimated that GDP for the March 2020 quarter could go backwards as a result of the coronavirus-related drop in travel.”
“We expect airport arrivals and tourism spending to remain low, while the travel bans continue and some local residents elect not to travel internationally.”