Leading consultants suggest Coronavirus impact could deal significant blow to Australian economy

January 28, 2020

Research by PricewaterhouseCoopers (PwC) found that Australia’s GDP could fall by as much as $2.3 billion and 20,000 jobs could be lost if the 9.2 billion spent per year by Chinese tourists and students declined.

As reported today by the Sydney Morning Herald, the impact would be on top of the damage already done to the Australian tourism industry as a result of the bushfires and drought.

PwC Australia Chief Economist Jeremy Thorpe told the Sydney Morning Herald "we’ve had a soft economy, the drought, the bushfires and now this virus ... It's bad news on top of bad news."

The research came as the Chinese Government imposed a ban on tour groups overseas to try stem the spread of the virus, forcing thousands of Chinese tourists to cancel their plans to travel to Australia.

While the Australian Financial Review suggested that the ban could last for two months, it may last longer if eradicating Coronavirus takes longer.

China Eastern Airways is also taking measures to stop the spread, suspending its Wuhan-Sydney service at least until the end of March. The service runs three times a week and is the only direct link between Australia and Wuhan, where the disease outbreak began.

China is the largest source of short-term visitors to Australia, with 1.45 million arrivals last year.

Meanwhile, the Australian Government is assessing how it can help evacuate Australians still in the city of Wuhan and the surrounding Hubei province.

ABC News has reported that at least 100 Australian children are in the area, from which travel is restricted. They are believed to be in the area celebrating Chinese New Year which occurred over the weekend.

Australian Foreign Minister Marise Payne said “all opportunities” were being explored to get Australians out of the region but there were “limitations” as Australia does not have a consular presence in the area.

At least 80 people have died so far from the virus, with confirmed cases climbing to 2,744 including five people in Australia.

Fears over the spread of the virus seen sporting event cancelled or relocated, theme parks closed and, as of today, Australasian Leisure Management has learned that fitness clubs and gyms in Bejing are closing their doors.

Image: Chinese tourists in South Australia.

27th January 2020 - Coronavirus impacts Asian sporting events

27th January 2020 - International adventure tourism community rallies to support Australia during bushfire crisis

26th January 2020 - Coronavirus fears sees closure of Hong Kong and Shanghai Disney resorts

24th January 2020 - Coronavirus sees cancellation of major events and closure of attractions in China

23rd January 2020 - Tourism Australia launches $20 million campaign to support bushfire affected industry

19th January 2020 - Federal Government announces $76 million bushfire recovery package

15th January 2020 - Environmental and wildlife organisations meet to steer recovery process following bushfires

14th January 2020 - Zoo and Aquarium Association develops plan to help wildlife recover from Australia’s bushfire crisis

10th January 2020 - Tourism Australia looks to reassure visitors with information on bushfire impacts

9th January 2020 - Bushfires have massive impact on Australian tourism industry

4th January 2020 - VTIC provides advice for businesses impacted by the bushfires

6th June 2019 - China named 2023 AFC Asian Cup hosts

21st April 2019 - Queensland Government aims to attract millions of Chinese tourists with new card payment scheme

12th August 2018 - PwC report says Sydney is ‘no fun’ for residents

2nd October 2017 - Chinese tourists changing their spending patterns

9th September 2016 - Record 133 million Chinese tourists to travel overseas

26th March 2015 - Study reveals future of Chinese tourism market

29th May 2010 - PwC predicts strong recovery for sports industry

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