Strong Australian dollar fails to boost Pacific tourism

The rise of the Australian dollar has failed to boost the Pacific's tourism revenue according to the ANZ's Chief Asia Pacific Economist.

Since 2009, Australia's currency has risen from just more than US$0.60 to trading at more than US$1.ANZ's Chief Asia Pacific Economist Paul Gruenwald says the high Australian dollar is negatively affecting businesses and retail spending in Pacific countries.

He told Radio Australia's Pacific Beat program the currency's purchasing power means more people are bypassing the region's tourism."The attractiveness of going abroad is enhanced because of the higher currency," Mr Gruenwald said.

"But it looks like Australian tourists are actually substituting away from the Pacific and going in larger numbers to markets like the US and Europe, so the Pacific has actually not experienced a large increase in tourists from Australia and New Zealand."

Source = australianetworknews