The Impact of the Australian Travel Ban

The Australian Government has chosen to extend the initial travel ban as a precaution to the recent outbreak

The Australian government has extended its ban on international arrivals who have traveled through China due to the coronavirus crisis despite negative implications towards the Australian economy.

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The ban, initially enforced on the 1st of February was scheduled to be upheld for 14 days, however, the government has just cited that it will into a fourth week, until the last day of February.

Given that China is the world’s second-largest economy, and has the highest Purchasing Power Parity. Its economic slowdown is expected to have a ripple effect across the world. Furthermore, approximately a third of Australian exports are received by China, it is a fact that the Australian economy will indefinitely feel the effects of the economic crash.

How dependent on China is Australia?

Iron ore and coal are Australia’s key exports, adding up to be worth well over $100 billion dollars. In 2017-18, China was by far Australia’s largest trading partner, contributing $194.6 billion worth of imports and exports. This was more than the combined value of trade with Japan and the United States ($147.8 billion).

The tourism sector is also a good indicating of Australia’s over-reliance on China. DFAT figures in 2019 have revealed that Chinese tourists spent a whopping total of $11.3 billion during their holidays in Australia. Put it simply, Chinese tourists alone have spent approximately more than a quarter of Australia’s total tourism market.

Another major export is the education services, which constitute 8 percent of the nation’s total exports ($32.4 billion) from international students. Due to the coronavirus outbreak, the ban enforced has stranded almost 70,000 international visa-holding students in China. This has hit the education sector hard and is estimated to cost the Australian economy $8 billion.

In conclusion, the travel ban is hindering the Australian economy by creating a shortage of supply of a major Australian resource——education services. I believe that if the travel is to be extended the Australian economy will suffer a huge hit due to the sole factor that the travel ban will coincide with the start of the school year. Therefore, I believe that the Australian Government will have to ease travel ban policies if they prioritize the economic welfare of the nation.