How did Australia respond to the global financial crisis?

Affected by the GFC, Australia’s total merchandise trade decreased by 11.6 per cent in 2009, and experienced the first fall in exports since 1964–65. Exports fell by $27.4 billion or 12.2 per cent to $196.9 billion from their record peak in 2008 of $224.3 billion.

How has Covid affected the Australian tourism industry?

Domestic tourists are taking shorter, more frequent trips, and spending less. The average trip spend in the June 2020 quarter was just $385 per person, compared with $648 per person in June 2019. Sudden closure of international borders hurt many parts of the industry relying on international visitors.

How did the global financial crisis affect tourism?

The global economic crisis of 2008-2009 had a significant impact on international tourism, the most severe so far in the last decades. International tourist arrivals declined by 4% and international tourism receipts by 6%.

Why did Australia fare generally well during the global financial crisis?

For many, the stock answer as to why Australia fared so well during the crisis was that it was “lucky”. This appears to be code for the view that Australia’s economy was buoyed by China’s seemingly insatiable demand for resources.

How did Australia survive 2008?

Australia hit the 2008 crisis in rude financial health: debt-free, growing strongly with significant assets and running surplus budgets. It is these robust foundations, along with very favourable terms of trade, which guaranteed that Australia would survive the crisis in very good shape.

How much money does Australia make from tourism?

Australia is a world-leading tourist destination. Our tourism sector contributes $152 billion to our economy, supports more than 300,000 businesses and employs more than 660,000 Australians.

What is the Australian tourism industry?

In 2019, tourism in Australia accounted for 3.1% of the national GDP, contributing $60.8 billion to the Australian economy. The means that tourism GDP grew at a faster rate than the national economy. Of this, 26% came from international visitors to Australia while 74% came from domestic tourism.

How does global recession affect travel and tourism industry?

The results suggest that the economic crisis has had a negative direct impact on tourism in the UK of around £42 million, although this was the relatively small difference between a large increase in domestic holiday tourism and falls in business and visiting family, friends and relatives spending.

How did Australia avoid the financial crisis?

In particular, the Reserve Bank lowered the cash rate significantly, and the Australian Government undertook expansionary fiscal policy and provided guarantees on deposits at and bonds issued by Australian banks. Following the crisis, APRA implemented the stronger global banking regulations in Australia.