Logic of Strategy: Tourism Edition

AFR: Chinese tourism slowdown surprises Australia

Chinese tourists spend more in Australia too, as the cliché of tour groups chasing after a guide with a flag has given way to cashed-up young couples travelling independently.

However, the narrative that the boom is going to last forever is no longer accurate. China's economy is slowing and its middle-class consumers are becoming increasingly cautious when it comes to spending.

Many are rethinking expensive family holidays to long-haul destinations in favor of cheaper options closer to home such as Thailand and Japan, and popular new destinations in Cambodia and Indonesia. Fewer are visiting Australia to buy property.

But there are other dangers to Australia's reliance on Chinese tourists that go beyond economics. Beijing's decision last week to issue a travel warning to travelers visiting the United States shows it will not hesitate to use its tourists and students against countries it falls out with politically.

Nations should strive for independence, from Beijing and from Washington.