Deteriorating Australia-China relations and prospects for the Australian tourism industry: A dynamic demand analysis

Abstract

Inbound tourism from China contributes to around 15% of Australian tourist arrivals. However, the political and trade relations between the two countries began to deteriorate since 2018. Considering this environment, using annual data from 1991 to 2019, this study enables the identification of alternative tourism markets for Australia. The results suggest that maintaining price competitiveness and consumer satisfaction should be high priorities of the Australian tourism policy to attract more tourists. The findings of this study provide insights to formulate new strategies to attract tourists from the other top markets in the event of a decline in Chinese tourist arrivals to Australia.