The Australian has a story today on page three about the plummeting fortunes of Australia’s tourism industry. It highlights figures that show that at the start of this decade, Australia gained $3.6b more tourist dollars from overseas than we lost from our own travels abroad. Now, Australian tourists spend $9b per year more overseas than foreign tourists spend here.

The obvious explanatory factor isn’t the efficacy of our tourism ads or the deficiencies of our tourism industry. Other things being equal, Australia hasn’t become less attractive as a travel destination over the past decade. But one very big thing has changed: the value of the Australian dollar. The article does mention the soaring exchange rate as a factor, but quickly glosses over it. Read more »