Roller-coasting dollar no deterrent for globe-trotting Aussies
Research shows strong demand for international travel unwavering against significant financial changes
After more than two years of restrictions, new research reveals that most Aussies are keen to travel and spend overseas at almost any cost with some two-thirds travelling overseas, making overseas purchases, investing overseas or making donations offshore.
This is despite a declining Australian dollar which after a strong start of US $0.73 cents in January 2022, has been testing low in recent weeks, falling to US $0.65 cents
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The research results follow a recent survey commissioned by global comparison website Money Transfer Comparison, which canvassed an independent panel of 1000 Australians to find out how Australian dollar falls and increases will influence their overseas spending.
From the survey, Money Transfer Comparison found that Australian dollar movements had little impact on the overseas spending habits of Australians.
If the dollar were to continually decline over the next 12 months, almost two-thirds (61 percent) of respondents said they will continue any planned overseas travel, purchases, investments and donations. Conversely, if the dollar rises, 82 percent of Australians would be motivated to spend overseas in these ways.
Specifically, a strong demand for international travel is unwavering against significant financial changes. The survey found that 62 percent of respondents would travel overseas if the dollar continues to decline for another 12 months, while 70 percent would be motivated to travel if the dollar were to become stronger against other currencies.
Interestingly, the survey showed the likelihood to forego international travel due to cost increased with age with younger Australians, despite their lower income and net worth, were more likely to push on with international travel plans irrespective of any increased cost.
More than 40 percent of respondents aged 55 years or older would give up overseas holidays, compared with just 37 percent of 35-to-54-year-olds and 33 percent of 18-to-34-year-olds due to increasing dollars.
Money Transfer Comparison Managing Director, Alon Rajic said unlike previous economic periods which have seen the travel industry suffer when the AUD weakens, Australians seem to be unwavering in their commitment to travel and overseas spending in this dip and although the data shows there will be some impact, it is pleasing to know it will not be significant enough to create a crisis in the travel industry.
“While the Australian economy may not be directly impacted by the drive for international spending in an AUD decline, the weakened Australian dollar will likely bring on increased tourism within Australia from international countries such as the US who have seen significant growth in their buying power,” Mr Rajic said.
The Money Transfer Comparison also found that despite the decreased dollar, there is a strong desire to continue purchasing overseas products with 63 percent of respondents specifying they will continue to purchase overseas products if the dollar continues to decline over the next 12 months.
South Australians were most likely to disregard price hikes, with 76 percent indicating they would continue to purchase overseas if there was a continued 12-month decline in the dollar – followed by 70 percent of West Australians.
Overseas investing was also shown to be determinedly popular across the states over the next 12 months with 84 percent of South Australians, 74 percent of NSW residents and 73 percent of West Australians specified that they wouldn’t be averse to investing overseas with a continually weakening dollar.
Australians also proved themselves to be generous, with a high 81 percent proportion of all respondents saying they would continue aiding money to family and charities overseas if the dollar continued falling.
“Australians have come out of the pandemic with increased savings and a desire to spend after more than two years of limited activity. It is positive to see that despite recent economic troubles, most Australians aren’t feeling overly money-conscious and are able to continue investing and purchasing overseas despite inflation and currency falls,” Mr Rajic said.
“While the push to spend pandemic savings overseas is strong, there is a silver lining as Australian industries can be hopeful to receive an influx of overseas tourism on the weakened dollar.”
The full survey results, with age and state breakdowns, can be found here: moneytransfercomparison.com/australia-info/strong-dollar.html
Mike Parker-Brown is a UK-trained and qualified journalist and an award-winning travel communicator with more than 30 years experience.
Since 2002, Mike has worked as a freelance writer and PR consultant providing his services to major organisations in Australia and internationally in the tourism, aviation, hospitality, recruitment and export marketing sectors.
