Will the Uluru closure effect the Australian currency outlook?

AUD GBP on the Retreat with BoE Rate Meeting Due

One of Australia’s biggest tourist attractions has recently held their very last visit from the public. The closure of the Uluru (or Ayer’s rock) has surprised many but has been coming for some time now, with it being a very sacred place for the indigenous people.

With such a huge draw for tourists now being off limits, there is a chance that the AUD currency outlook could be affected as Australian tourism loses one of its biggest draws and most historic attraction.

Possible effects from the closure

Sure, this isn’t the only reason tourists visit Australia but closing off Uluru to tourists means that the footfall is going to take a substantial hit.

With 9.2 million tourists visiting the country in 2018, a percentage of these may have been swayed to visit Australia over another destination by The Uluru.

Hotels in the area have reported around 80% capacity in recent years and have enjoyed this influx mainly due to a low Australian dollar as well as a raise in retiring overseas individuals.

Tourism is one of the key drivers of the economy in Australia. Should there be a slight decrease in tourism from this closure there is a chance that sales, profits, jobs and income could be hit with a knock-on effect, particularly for the surrounding area of the attraction.

Local businesses in the area will be the most impacted by the closure with some of the tour groups giving back to the local community through re-building schemes.

The closures effect on the AUD currency outlook

The AUD to GBP forecast is likely to be unaffected with the closure, as mentioned the slight drop in tourists visiting to climb the rock will be unlikely to cause a complete shift which may skew the relationship of the two currencies.

Overall, the closure is likely to have little effect in the long run, but there could well be a dip in the AUD’s strength before levelling out again thanks to recent gains.

Tourism in Uluru area may be lowered but for Australia as a whole, their currency outlook is dictated by a lot more tourist attractions that are unlikely to close any time soon. Think; Climate, beaches and people. This should help the Australian currency outlook navigate this brief dip in value.

Not only this, but plenty of tourists will still want to stop by for a scenic photograph at the foot of Uluru to tick off their Oceanic bucket list. These tourists are likely to visit the existing local businesses which may still have reason to operate with the steady influx of visitors that merely visited to see the wonder of Uluru with their own eyes.

Overall, the outlook is still good for the AUD. For more Pound and AUD news, keep up to date with our daily blogs here alternatively if you have a currency requirement you can get in touch on +44(0)1494 360 899 to discuss these factors in more detail. Thank you for reading and I look forward to hearing from you soon, Jonathan Watson – [email protected]