Australia has long been touted as a great place to work, but there’s a new report that says the nation is also a country that’s not for business travellers.
The Economic Times report claims the Australian economy is suffering from a lack of job growth and that business travellers are spending less time in the country, and more time travelling abroad.
The article states that businesses are feeling “disillusioned” by the low quality of jobs, and are more likely to stay in the region for “a time” rather than “just” travelling to Australia.
It also states that tourism is on the decline in Australia, and many businesses have moved their offices to other countries, such as New Zealand, Canada and the United Kingdom.
The economic loss from business travel is believed to be about $8 billion per year, with tourism accounting for about $5 billion, according to the article.
Business travellers are reportedly spending less on accommodation, dining and other essentials while travelling abroad, and this could lead to a drop in tourism revenues.
According to the report, tourism is expected to grow by 6.7 per cent in 2018, but the economic impact could be even more dire.
Tourism will grow by just over 6 per cent, but a drop of over 20 per cent could mean an economic loss of up to $7.5 billion per annum.
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The report cites the “challenging business environment” and says business travellers have a “long list of reasons” why they are “not travelling to the Gold Coast or Melbourne anymore”.
It cites a number of factors, including “increased competition from regional hubs, higher travel costs and increased airport congestion” and “high levels of immigration, particularly from Asia”.
It also warns that “a lack of affordable accommodation, with the majority of rental properties having a ‘no reservation’ policy” has made travel a “high priority” for businesses.
Business travel is not an economic growth driver, but rather a “disinvestment driver”, according to economist Professor Stephen Conroy.
“Business travel is one of the reasons we have a higher level of debt than other countries.
And it is one thing to invest, it’s another thing to use the income to pay back debt, to repay debt,” he said.
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But it’s also a positive for the Australian Government because it’s helping to create jobs in the Australian community.”
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