Analysts at the Australia and New Zealand Banking Group (ANZ) anticipate coronavirus to have a little impact on tourism-dependent Pacific economies. The reason cited was less dependence on China for tourism.
Key quotes
While the necessary response to the coronavirus outbreak has been to restrict international travel, we think the tourism-dependent Pacific economies, such as Fiji, Vanuatu, Samoa and Cook Islands, will be relatively insulated.
Only a small proportion of tourists to the Pacific travel from China, accounting for less than 5% of visitors in 2019.
People from the bigger tourist groups – from Australia, New Zealand and the US – may offset that loss, if they divert travel plans from Asia to the Pacific.
We think Australia’s bushfires may also lead some Australians to choose the Pacific rather than domestic travel destinations.
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