Global concerns regarding climate change and the Coronavirus is affecting multiple countries on an economic-financial standpoint. There isn’t any nation more affected than Australia, who faced four consistent months of bushfires. Those horrendous bushfires were matched immediately afterwards with the Coronavirus, seeing all Chinese tourism halted in Australia. Considering this demographic accounts for 53% of tourist activity in Australia, the Coronavirus is expected to collapse the Australian landscape.
Those from down under already faced lowered profits with tourism following New South Wales being destroyed by the September to December wildfires. This doesn’t mean there isn’t the chance for recovery, with Australia previously having their tourism market crash with the SARS outbreak from 2006.
It should be noted that the Australian government followed Chinese lawmakers, implementing travelling bans on “Non-Australian Citizens from the DRC”. Immediately after this decision was made, tourism firms saw cancellations in bookings. The Cairns, Port Trips & Attractions firm expressed that 200+ staff are in jeopardy of losing their jobs. Nature reserve tours, bus reservations and adventure tours have all been terminated by Chinese guests. They estimate that yearly profits will deplete by 40% to 60% in comparison to 2019.
Global Destruction
The Chinese Economy hasn’t faced such a substantial setback in their history, with countless factories having been shut down for three to four weeks. This will create a global blowback that will see all significant economies, like North America and the European Union, suffer considerable losses in profit. Tourism is expected to be the most affected industry on the global stage, with millions terminating their trips following the Coronavirus. The Reserve Bank of Australia has advised global banks to begin preparing for the considerable fallback.
The Cairns, Port Trips & Attractions Firm has already lost $200 million since December 31st. That number will exceed $400 million by February’s end, with the overall projected yearly losses anticipated to surpass $1 billion. Considering multiple provinces in Australia rely on Chinese Tourism, such as the Gold Coast Jurisdiction, there could be a financial depression that affects this region.
Bushfires across the Gold Coast already forced rebuilding efforts, with losses in tourism funds forcing delays in redevelopment. Similar issues will strike other provinces in Australia, which could cause a potential economic downfall for one of the world’s most influential markets. Diplomatic efforts are being implemented to limit possible losses, with Australia’s government releasing an international marketing campaign. They hope that it’ll bring travellers from North America and Europe back to the outback.