The economic impacts of a changing visa fee for Chinese tourists to Australia

Abstract

Chinese tourism demands in Australia have increased exponentially in recent time, driven largely by increases in the number of visitors. The hidden important fact of this market is its high price sensitivity, which is vital to the growth of the dominant Chinese tourism segment in the total inbound sector of the country. This article addresses a concern of the tourism industry regarding a possible policy change on a tourist visa fee for Chinese nationals that potentially has adverse impacts on the economy. The article demonstrates that the revenue objective of an increase in the visa fee for Chinese visitors is unlikely to be a successful policy, as it will take a long time for the visa revenue to compensate for the losses of gross domestic product. In the extreme, the GDP losses may never be compensated adequately by the increased visa revenue.

Young Chinese in Europe

“…Th e Chinese tourist nowadays is very open to the concept of smart tourism and embraces the use of technology while on vacations and takes advantage of new channels of information services. In addition, they are budget conscious and have a high price sensitivity (Dogru, 2016;Pham, Nghiem, & Dwyer, 2018) and seeks the greatest value for price, whether it be for outbound group packages, customized tours, or independent travel. Th ey need easy access to more practical information ("know-how" knowledge), as well as descriptive information of lesser known destinations ("know-what" knowledge) (Lojo & Timothy, 2020).…”

Modelling the economic impacts of a large event

“…As such, the long-run scenario will result in constant rates of return and changeable (endogenous) capital stocks. CGE models have previously been used in the context of tourism (Madden 2002(Madden , 2006Meng and Pham 2017;Pham et al 2015;Pham, Nghiem and Dwyer 2017) and events (Giessecke and Madden 2007;Li, Blake and Cooper 2011) and is the most appropriate approach for estimating the impact of a large event such as the Commonwealth Games, which was expected to attract a significant number of participants, spectators and tourists.…”

Los verbos modales en las introducciones y en las conclusiones de los artículos científicos de turismo

“…(3) (Introducción) Moreover, as emphasized by the industry, if the replacement eventuates, affecting only against Chinese visitors, this could easily be seen as a form of market discrimination, perhaps with political implications (Pham et al 2018).…”

“…(12) (Conclusión) This will raise a question as to whether or not the government is fully committed to the Potential target that both the government and the industry have set up… Consequently, this will lower business confidence in the sector, could affect the long-term investment strategy of investors and potentially be detrimental to trade and inflow of foreign direct investment (Neumayer, 2011;Song et al, 2012) (Pham et al 2018).…”

“…(13) (Introducción) The tourism industry in Australia has had good reasons to be concerned that the Federal government would continue to pursue revenue raising policies affecting the demand for inbound tourism, particularly as regards an expanding market such as China (Pham et al 2018 La forma shall es con mucho la que presenta las menores frecuencias relativas con unos valores de 0,40 y 0,24, en las secciones introducción y conclusión, respectivamente, como se indica en la tabla 2, arriba. Los valores medios, mínimos y máximos se ofrecen en el gráfico 10.…”