Chinese visa arrivals surge to record high

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The Australian Bureau of Statistics on Tuesday released its overseas short-term arrivals and departures figures for August.

The number of short-term visitor arrivals rose by 6.4% in the year to August, whereas short-term resident departures only rose by 0.7%. The ratio of annual arrivals to departures also rose to 81.5%:

That said, net short-term arrivals remain heavily in deficit:

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In the year to August 2019, 9.4 million inbound visitors arrived in Australia over the year – a 73% increase on a decade ago (5.4 million). The number of Australians traveling overseas was 11.5 million – an 86% increase on 10 years ago (6.2 million):

The next chart shows that short-term arrivals were dominated by holiday makers and those visiting friends and families:

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As shown below, most foreign visitors to Australia came from NE Asia, which accounted for 30% of arrivals:

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In particular, arrivals from China surged, hitting a record high 127,900 in August:

Chinese arrivals also hit an all-time high 1.46 million in the year to August, accounting for 15.5% of total arrivals to Australia:

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Therefore, while the number of Chinese international students is beginning to wane, as evident by the 3.3% decline in student visa applications in 2018-19, overall arrivals from China continue to boom, driven by tourism and visits to family members living in Australia.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.