1 week Ago By Chris Zappone
The post-COVID travel surge may finally slow in the face of a weaker Australian dollar and share market losses, in a follow-on effect from a brewing global trade war. The dollar has fallen in response to the volatility spurred by US President Donald Trump’s tariff frenzy, while share market plunges have taken their toll on superannuation accounts . Will the tariffs and the weaker dollar quash travel? Credit: Louie Douvis The combined effect may force the public to rethink travel plans, cooling a period of robust demand in place since the pandemic lockdowns ended.
Data from the Australian Bureau of Statistics shows that after the COVID lockdown period ended in 2022, consumers prioritising post-lockdown overseas travel notched up 2.38 million departures in January. The figure fell to an estimated 1.
69 million in March – in line with the historical trend. “That was always likely to fade at some point,” said HSBC economist Paul Bloxham. “And this factor will be one that may see it fade a bit faster.
” Bloxham said consumer confidence is weakening and people are watching their superannuation balances. “So it’s possible that it will discourage people from wanting to do as much discretionary spending.” Withholding guidance: Delta Air Lines Credit: Boarding1Now In the latest turn of events, Trump has backtracked on tariffs on a slew of Chinese-made electronics, phones and computers , creating more uncertainty.
The Australian dollar has weakened since Trump won the US presidential election in November, slumping from US66.4¢ to US62.8¢ on Sunday.
It’s dipped as low as US59.9¢ on April 9, as markets digested the chaotic trade war news..
