Dollar drop may boost SW tourism

Busselton tourism figures show the dominance of domestic visitors to the region means the falling Australian dollar won’t have a big effect on business here.

The dollar has slipped from above parity to US90c recently and economic forecasters are predicting a drop to 85c this year.

Observers say the dip should boost Australia’s tourism industry, which has struggled against the high Australian dollar for the past couple of years.

Bay View Geographe Resort general manager Mathews Abraham said he was more concerned about the price of iron ore than the dollar.

“Almost 88 percent of our traffic comes from Perth so the falling dollar won’t make much difference to us,” he said.

“We’re more focused on the resources industry. If the price of iron drops too much and mining jobs are cut then holiday cancellations come next.”

While the dollar has recovered slightly due to weakening US manufacturing data, economic forecasters predict it will remain well below parity for the foreseeable future.

Geographe Bay Tourism Association chief executive Simon Taylor said a low dollar would mean an increase in international visitors and less Australians travelling overseas.

“(This) would be a welcome relief for the local tourism industry after a tough few years,” he said.

City of Busselton commercial services manager Jenny May said bookings at the City-owned Kookaburra Caravan Park were more influenced by the price of fuel than the value of the dollar.

She said told the Times the park tended to get less interstate visitors when fuel prices went up.

“In the past when the share market has dropped we’ve seen a slight decline in bookings, particularly outside of peak season, as retirees may be nervous about how their super funds are performing, but generally occupancy rates have been consistent and we expect to see a steady increase in bookings over the coming year,” she said.

Busselton Chamber of Commerce chief executive Ray McMillan said businesses should wait for the dollar to settle before they negotiated new export arrangements.

Mr McMillan said on the whole Chamber members were not overly concerned by fluctuations.

“You have to weight it up because what’s good for exporters is not necessarily good for importers,” he said.