Over the course of the past few years, it has become apparent that the major goal for many Australian casino operators is to attract high roller gamblers from Asia. It is a very lucrative market, but some business professionals are concerned that this may not be the most effective long-term plan.
Harrison Polites of the Business Spectator recently weighed in on the situation to examine whether or not Australia’s reliance on Asian tourism is actually going to bring about a huge windfall in the long run. He notes that the industry was initially estimated to be worth $9 billion by 2020; however, the figure was revised earlier this year to $13 billion.
By the year 2020, HSBC anticipates that 20% of all short-term visitors to Australia will be Chinese tourists. It is believed that these tourists will spend twice as much money on their trips than visitors from other countries, so it is no wonder why Australian tourism has jumped at the opportunity. Many tourism companies are beginning to offer increased services to Asian visitors.
We are also seeing many casino operators customising their services to high roller Chinese players. The great lengths to which the local tourism market is going to taking great care to appeal to Asian visitors will boost profits across the board, but is it too much? “One aspect that’s not being discussed is the idea of overexposure,” Harrison writes. “Is our tourism sector transforming into an industry that is too reliant on Chinese tourism?”
He notes that the Australian tourism market saw a similar situation in the 1980s. At the time, Japanese tourists were the focus of the Australia tourism industry. While the situation started out very lucrative, the Japanese economy took a tumble and Australia’s tourism market fell along with it. Harrison and other business professionals are concerned that history will repeat itself.
Fortunately, Australia has developed quite a diverse tourism market so we could recover if there were ever a dip in Asian visitors. However, it is still important that we continue to focus on visitors from other countries in order to ensure long-term success in Australia’s tourism market.