Territory economic review
NT Treasury, Economic Analysis Division
Territory economic review; Department of Treasury and Finance newsletters; PublicationNT; E-Journals
Date:2001-10; Made available via the Publications (Legal Deposit) Act 2004 (NT).; This publication contains may contain links to external sites. These external sites may no longer be active.
Northern Territory -- Economic conditions -- Periodicals
Northern Territory Government
Northern Territorty Government
OCTOBER 2001 11 TERRITORY ECONOMIC REVIEW www.nt.gov.au/ntt/economic Using Accommodation, Cafes and Restaurants and Cultural and Recreational Services as a proxy for the tourism industry, tourism contributes approximately 5.6 per cent to Territory GSP (around $400 million) compared to 4.0 per cent nationally, more than any other jurisdiction. Similarly, Territory tourism is estimated to account for 8.7 per cent of total employment (around 8 500 people) compared to 7.5 per cent nationally. international tourism drives growth The number of international visitors to the Territory increased by an average of 9.3 per cent over the six years to 2000-01 compared to 0.4 per cent for interstate visitors and 1.1 per cent for intra-Territory visitors. International visitors represented 34.2 per cent of total visitors to the Territory in 2000-01 compared to 25.7 per cent in 1995-96. The largest proportion of international visitors in 2000-01 came from European countries, with 30 percent from the United Kingdom, Ireland and Scandinavia, and 30 percent form other European counties, particularly Germany (10 per cent). The remainder came from North America (13 per cent), Japan (10 per cent) and Other Asian countries and New Zealand with 6 per cent and 4 per cent respectively. in turn, affected by economic conditions Tourism growth over any period reflects the prevailing economic conditions both domestically and internationally. Factors such as exchange rates, and growth in particular countries household income, are critical drivers of growth. Airfares and the price of petrol also have an impact on tourism growth. In addition, one-off events such as the introduction of the GST, the Olympics and the East Timor relief effort, which boosted tourist related activity in late 1999 and early 2000, can also affect tourism growth. Territory Visitors 0 100 200 300 400 500 600 700 1996 1997 1998 1999 2000 2001 Intra-territo ry Inters tate International '000 Financial Source: NTTC Strong growth last year... There were strong gains in expenditure, visitor numbers and visitor nights during 2000-01. Strong growth of 12 per cent in visitor nights reflected not only increased visitor numbers but an increase in the average length of stay. International visitor nights increased by 8 per cent, while interstate visitor nights increased by 7 per cent. Visitor expenditure in the Territory increased by 11 per cent in 2000-01 compared to the previous year. Expenditure from international visitors increased 20 per cent, and 4 per cent from interstate visitors. Visitor numbers increased 10 per cent in 2000-01, with total visitors exceeding 1.5 million for the first time. International visitors increased by 4 per cent while interstate visitors increased 8 per cent. Exchange rates still a positive The ongoing effect of the weaker Australian dollar remains a positive effect, boosting the attractiveness of Australia as a holiday destination for international visitors. Similarly, the low value of the Australian dollar makes it relatively more expensive to travel overseas, increasing the incentive for Australians to travel to domestic holiday destinations. but weakening overseas income growth Falling growth rates and rising unemployment in the major economies of North America, Japan, Europe and the United Kingdom are leading to a deterioration in consumer incomes and confidence. Tourism expenditure is largely a discretionary component of consumer expenditure and is essentially a luxury good. Therefore, the effect of lower incomes and falling consumer confidence can be pronounced. Longer term positives from the Sydney Olympics The Olympics had the effect of pulling some visitors who would have come to the Territory to Sydney causing September 2000 to be weak. However, the Territory did benefit from pre and post Olympic touring. In the medium term international tourism in the Territory should benefit from the added world exposure afforded by the Olympics.