Ann: Half Year Results Presentation, page-26

'They also have a focus on Florida, which has the 4th highest GDP (US$883bn, 2015) in the US. Texas is second. Florida GDP grew by 3.1% in 2015, but 2017 should be a much better year.'

Florida like California has a large (mostly better educated) service sector that makes up its economy. In Fl it is the largest sector of the economy. Health is a significant sub sector with a significant number of young people and young families. However, because of the disproportionate number of retires and wealthy older couples living in Fl, there is also a significant middle class of privately employed workers (mainly, after health, in the subsector of law) . The middle class tend not to spend their money on the same activities as the working class. Especially in high volume businesses where waiting your turn is a regular and persistent reality – as it is for TME customers. So I would want to see consistent numbers over several reporting periods before I attribute success to this strategy in Fl.

'We are also seeing a rising oil price (good for discretionary incomes in Texas) and the likelihood of substantial personal tax cuts (good for incomes across the US).'

Certainly good for the economy of Texas. So why the TME forecast for low growth in Texas? Surely AAD board must consider such an important variable when formulating their forecast. The rising oil price also carries the negative that pump prices will also rise – for all US citizens.

'Re Dreamworld- as of December last year, Brisbane has just started to receive direct daily flights from Shanghai (population 24 million). The city and the Gold Coast are awash with Chinese tourists'.

One thing I have learnt from the Chinese is that they always seek value for money.
The little I know about DW's competitors is that they offer more modern and exclusive entertainments.

Does AAD have the ability to offer packaged holiday experiences for non-local inhabitants? Packages that include a tie-in with accommodation, meals and entertainment information?
The Chinese are very skilful at disenfranchising the local operator. AU may get a fantastic influx of Chinese tourists in the coming decade. But most will naturally buy from what is familiar or customary to them. Like the dairy product industry the entertainment/accommodation industry will see an incredible amount of Chinese investment in Chinese owned companies that own assets within Australia.

If AAD can competitively compete with the Chinese companies of the near future then all should be well.

As for being 'awash with Chinese tourists', politicians are always full of hope, hyperbole and platitudes when making public announcements. All the credibility of two grains of salt at a moisture-free pool party!


'I doubt these tourists, on their short holidays, will worry too much about an event that happened months ago.

An unknown that is for sure. However, I wonder what are the actual numbers who visit and what percentage of the gross number of visitors to DW the Chinese comprise? The vast majority of visitors to DW would remain AU travellers and locals.

And to top it off, in April next the Gold Coast will host the 2018 Commonwealth Games- with an additional 100,000 tourists expected during that period.'

Yes, the 2018 commonwealth Games will certainly be beneficial to the local economy but will be a one off. I also wonder how many beneficial dollars will end up in the accounts of DW. Many tourists will seek the cheaper delights of the Gold Coast beaches and inland environs. Especially those who travel from places where something akin to DW already exists.
Broosta