Falling Australian dollar lifts inbound tourism

Foreign tourist arrivals to Australia have lifted 3.1 percent in the past year according to data released on Tuesday.

While the rate has slowed a little in the past two months, the falling Australian dollar has made Australia an attractive option for visitors from countries with stronger currencies, such as the United States.

Australian local departures have also slowed with a 1 percent lift, again put down to the falling dollar as it makes countries such as the United States and Britain more expensive for Australian travelers.

"No doubt the volatility in the currency will play a significant part when deciding on future holiday destination," CommSec economist Savanth Sebastian told local media.

"Looking forward, not only will the fall in the Australian dollar drive further tourism inflows, but it should provide an additional degree of support to the domestic tourism sector.

"The cheaper currency should over time make it more attractive to travel within Australia rather than overseas, although it will take some time yet to make a significant dent in the tourism deficit."

He noted the annual number of tourists from the Chinese mainland and Hong Kong has more than doubled in the past five years.

New Zealand visitors to Australia increased 3.3 percent last year to a total of 1.26 million, while tourists from the Chinese mainland and Hong Kong grew 17 percent to 1.13 million.

If current growth rates continue, the number of visitors from the Chinese mainland and Hong Kong will surpass New Zealand in less than a year.

Meanwhile, the number of permanent and long-term arrivals into Australia has fallen to its lowest level in four years, just shy of 300,000 migrants.