Cairns Post: Tourism Industry Looks on Bright Side as Aus Dollar Falls Against Major Currencies

Article written in The Cairns Post - Wednesday 5th October 2011

The Far North's $2.2 billion a year tourism industry is buoyed by predictions the Australian dollar could fall to as low as US80c in coming weeks.

Industry leaders said it would take time for the benefits of a lower Aussie dollar to flow through but it would make the Far North more competitive and attractive to international tourists and stop the flow of Australians holidaying overseas.

Yesterday, the Aussie dollar hit a low of US94.58c before closing at US95.22c on growing fears of a global economic crisis.

It comes after the tourism industry had struggled for the past year as the Australian dollar hit highs of US110c.

The high Australian dollar made rival destinations such as Bali, Thailand and the Pacific islands more economically appealing to both overseas travellers and Australian holidaymakers.

Tourism Tropical North Queensland chief executive Rob Giason said it would make agricultural exports and tourism better value.

"It will be good for the Christmas holidays and many Australians will take time to holiday at home instead of heading overseas," he said.

Herron Todd White Cairns research director Rick Carr said in his CairnsWatch report the falling dollar would make the region more affordable.

"Cairns’s economic recovery lost some momentum over the past month and looks even shakier against a backdrop of increased global economic and share market turmoil," he said.

"However, the fall in the Australian dollar will be welcomed by local businesses, as will recent rises in passengers through the international airport and a fall in local unemployment."

The report said passenger numbers at the international terminal had increased by 5.9 per cent since December, 2010.

Economist Bill Cummings said the falling Australian dollar would be good news for the regional economy.

"It will be especially good news for an embattled tourist industry," he said.

"The fall is pretty much across all currencies, although the fall is less against the Euro."

Cairns Airport acting chief executive officer Greg Eisenmenger said the first two months of the financial year showed international passenger numbers "remain strong".

On the Cairns Esplanade yesterday travellers welcomed news they could soon be getting a better return on their homeland currency.

"A year ago, this holiday would have cost me about 25 per cent less," Swedish tourist Mika Andersson said.

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