Australia under-prepared for Chinese tourism wave

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Chinese visitors to Australia now outnumber tourists from all other countries, and their numbers are expected to triple in the next decade.

"I think what we've seen is the growth in the market is absolutely phenomenal and we think that by 2026 and even outwards to 2030 you will see potential doubling and even upwards of 3.3 to 3.6 million Chinese visitors coming to Australia," said John O'Sullivan, managing director of Tourism Australia.

That's welcome news for "Catch a Crab" in northwest New South Wales.

The business offers what it calls "a seafood experience", allowing customers to catch their own seafood, which is later prepared for lunch.

"Catch a Crab" has been carefully crafting its tourism-based business to attract visitors from Asia since the 1990s, and Chinese tourists now make up the majority of the company's overseas business.

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"We have, you could say, a 90 percent occupancy rate in the Chinese New Year period, better known as the Golden Week. We are doing three to four tours a day just to cope with the demand," said general manager Matthew Eyre.

That massive projected increase is also raising questions about whether Australia is adequately prepared to handle the additional business.

The northern New South Wales town of Byron Bay is home to about 10,000 residents. Its pristine beaches and picturesque coastline help to draw two million visitors a year. The slow crawl through the center of town by car, now a common ritual, is just one example of the town's infrastructure struggling to cope with that many people.

"The model we are looking at at the moment, and there is a lot of talk with regional tourism boards, is to share the love with the broader region so it is not just about Byron," said Byron Bay Chamber of Commerce president Todd Southern.

Tourism officials say an increasing number of Chinese visitors are venturing outside of Australia's major cities, forcing many destinations to rethink how they can cope with the added business.

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"Looking at what are the regional investment opportunities, not only in accommodation but also in experiences and attractions in regional parts of Australia," said O'Sullivan.

"You have to give people a reason to get to regional Australia, you can’t just build a hotel or build a road and say, right, we are open for business."

A government survey shows that there is much more at stake than the immediate economic impact from increased tourism. It found that Chinese tourists who come to Australia and leave with a positive experience tend to buy more Australian goods when they return home, consider educational opportunities in this country and invest in Australia.

That's partly why an increasing number of Australian businesses, including "Catch a Crab", are focused on finding ways to create a memorable experience.

"That's how it works in the tourism industry. it is largely word of mouth," said Eyre.