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.”