Australia is losing its appeal for Chinese tourists and students as the harmful trade war between the U.S. and Beijing, paired with a slowing economy at home, spooks them into staying put.
The number of visitors from China increased just over 1 percent in the 12 months through July, matching the weakest rate in nine years, while the growth in students traveling Down Under to attend university has also slowed rapidly. Even a weakening Aussie dollar hasn't managed to halt the downturn.
"We suspect the trade dispute is a large reason for the decline," said Hayden Dimes, an economist at Australia & New Zealand Banking Group Ltd. It "creates uncertainty for both visitors and, in particular, students."
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