Trade war fall­out a con­cern for tourism

Broome Advertiser - - News - Jakeb Waddell

A trade war be­tween the US and China could have a flowon im­pact on tourism num­bers to the Kim­ber­ley, ac­cord­ing to one of the State’s lead­ing economists.

Speak­ing at the Kim­ber­ley Eco­nomic Fo­rum last week, WA Cham­ber of Com­merce and In­dus­try chief econ­o­mist Rick Newn­ham in­formed at­ten­dees of the reper­cus­sions of US Pres­i­dent Don­ald Trump’s tar­iffs on Chi­nese goods, which the re­gion would not be im­mune to.

Mr Newn­ham said the Asian mar­ket was cru­cial for the fu­ture of Kim­ber­ley tourism and a tar­iff would put fi­nan­cial pres­sure on po­ten­tial vis­i­tors.

“The trade war is very closely linked to the Aus­tralian econ­omy and this could in­clude the Kim­ber­ley,” he said.

Mr Newn­ham said 88 per cent of the re­gion’s tourism came from do­mes­tic vis­i­tors, which showed the re­liance on this mar­ket but there was a huge amount of po­ten­tial to tap into the Asian mar­ket.

“If the tar­iffs hit, there is a smaller piece of the pie to tap into in terms of the num­ber of vis­i­tors you are at­tract­ing,” he said.

“This would then add pres­sure on how well you can at­tract vis­i­tors to the area.”

But Mr Newn­ham said the im­pact might not be en­tirely neg­a­tive, with China’s threat to put a 25 per cent tar­iff on US LNG hav­ing the po­ten­tial to make the Aus­tralian prod­uct more com­pet­i­tive.

He said this would lead to more in­vest­ment in the State, es­pe­cially the Kim­ber­ley, with In­pex pro­duc­ing LNG through the Ichthys Project in the Browse Basin, 425km north of the re­gion.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.