Welcome to this week’s China Ready Round-Up.
Last week, Shanghai-based China Capital Investment Group purchased South Molle Island, an island in the Whitsunday section of the Great Barrier Reef. On practically the same day, the Federal Government announced that it was blocking the sale of Ausgrid to two Chinese companies, sending mixed messages about Australia’s attitude towards foreign investment.
With only 13 of Queensland’s 24 Great Barrier Reef island resorts actually open, clearly our tourism industry could benefit from some foreign investment. And it makes sense for that investment to come from China, given it will be Australia’s largest tourist market by the end of this year. Provided proper measures are taken (such as having conditions and review mechanisms on sales), Chinese investment in Australia’s tourism industry should be encouraged and celebrated by all, as it will lead to more jobs, increased arrivals and greater spending.
And the first step to encouraging that investment? Making sure the Chinese tourists who come to Australia feel welcome while here. Because as a recent Australia China Business Council report showed, Chinese tourists who have great experiences in Australia are more likely to pursue further activity in Australia, whether that be through education, real-estate investment, business investment or purchasing Australian goods and services.
So, if you’re in tourism or know someone who is, tell them to get China Ready Now – the whole economy will thank them! We hope you enjoy this week’s Round-Up.
- Chinese company snaps up Queensland island: China Capital Investment Group (CCIG) has purchased South Molle Island for around $25 million. In February last year, CCIG paid $30 million to buy the resort on a neighbouring island.
- Chinese hotel investors fuel Australia’s tourism boom: A new generation of affluent Chinese are not only flocking to Australia for holidays – some are building a vested interest in the country’s tourism boom by buying up some of its well known hotels.
- International arrivals at highest level since 2005: Chinese tourists for June were up by 18% on 2015 figures.
- China is about to become Australia’s biggest tourist market: Bank of America Merrill Lynch (BAML) economists Alexandre Veroude and Tony Morriss say that after Chinese tourism grew 23% in 2015-16 they “see a similar growth rate achievable this financial year, due to increased aviation capacity between Australia and China and changes to visa requirements”.
- Australia 7th most popular destination for Chinese: According to Ctrip, Australia received the 7th largest number of visa applications from Chinese in the first half of 2016. The United States, Malaysia, Japan, South Korea, Singapore and Thailand were the top 6 destinations for Chinese visa applications.
- Tourism deal to showcase WA in China: Tourism WA has signed a deal with Alitrip to promote the state and its attractions on the OTA’s website, which was used by 100 million people to arrange their holidays last year.
- Alipay speeds up Europe expansion: Alibaba’s payment system will be more widely available to Chinese tourists in key European markets (France, Germany, the UK and Italy) as it cements deals with retailers. A similar roll out has already taken place in the US, so is Australia next?
- Chinese Tourists Choose New Zealand Over Europe Amidst Terror Concerns: Recent terror attacks have resulted in many Chinese visitors being scared away from travelling to Europe. Not only have France and Belgium been experiencing sharp falls in arrivals, but even peaceful Switzerland has seen a 20% drop in Chinese visitor numbers.
- How China is changing your internet: Want to understand China’s internet scene, and what it means for the rest of the world? The New York Times have put together this interesting, and slightly scary, 5 minute intro.
- Chinese Shoppers Make 40% of Luxury Purchases Abroad: Almost half of Chinese consumers wait until they are overseas to make luxury purchases, much to the delight of retailers worldwide.