…Tasmanian economy surges on the back of tourism boom
In a trend that draws parallels to Australia’s resources boom, Tasmanian is currently experiencing a tourism boom according to the latest MyState Limited Tasmanian Economic Update released today.
The December quarter report shows Tasmania has recorded unprecedented tourism numbers and expenditure over the past quarter.
MyState Limited Chief Financial Officer David Harradine said the tourism boom and strong household consumption have seen the state’s economy continue to build on the solid growth generated during 2015.
“The MyState Limited Tasmanian Economic Update shows Tasmania has seen a significant increase in tourists to the State, with domestic and international tourist numbers up 17 and 19 per cent respectively,” said Mr Harradine.
“Coupled with the increase in tourist numbers, visitors are also spending more in Tasmania with domestic tourist expenditure up approximately 21 per cent (12 months to Dec 15) while international tourist expenditure has increased approximately 34 per cent on the previous year.
“Tasmania’s improved economic position has been aided by a lower Australian dollar, increased business confidence, low interest rates, and Tasmania’s competitive strengths in long term growth industries, with tourism being the clear standout.”
The update shows Tasmania’s exports have recovered strongly since bottoming in April 2015, with exports on track to exceed $3 billion this year for the first time since 2013 at the current run rate.
Retail sales also remain a strong area for the Tasmanian economy, increasing to approximately $490m in February 2016.
Mr Harradine said it is very positive to see retail sales in Tasmanian are growing faster than the national average.
“The increase in retail sales is a reflection of improved local confidence and a booming tourism sector.”
“Household consumption has been particularly strong which indicates a growing confidence across Tasmanian households,” said Mr Harradine.
State Final Demand (SFD), a broad measure of economic activity, has shown steady improvement since bottoming during the March quarter of 2013. SFD grew 0.6% in the December quarter and 2.8% over 2015.
In addition, the Tasmanian housing market appears to be performing well, with Hobart recording the highest price increase of the Australian capital cities in the March quarter.
Despite Tasmania’s strong economic showing, conditions in the labour market have weakened more recently following a period of strong improvement.
The state’s unemployment rate has increased to 6.8 per cent while the participation rate has fallen to just over 60 per cent.
These figures are somewhat at odds with the strength of a large majority of key economic indicators.
Key Findings
– Tasmania saw a 17 per cent increase in domestic tourist numbers and a 19 per cent increase in international tourists
– Domestic tourist expenditure is up 21 per cent on the same period last year
– International tourist expenditure in up 34 per cent on the same period last year
– Tasmanian household consumption increased over 1% in the December quarter to be up over 3.5% in 2015
– Exports have continued a strong positive trend since reaching their lowest point in April 2015
– Retail sales in Tasmania are growing faster than National sales reflecting improved local confidence and a booming tourism sector
– New vehicle sale declined over the last quarter in Tasmania while the national the number increased
– Regional employment growth in the state’s west and north west has fallen slightly but the west/north west region now boasts the state’s lowest unemployment rate, while Launceston/north east region has the highest.
Download Economic Update …
MyState_Tasmanian_Economic_Update_March_Quarter_2016.pdf
MyState Limited Chief Financial Officer David Harradine
