Australian tourism may suffer from Chinese investment restrictions
Australia's tourism industry could be hit by new Chinese government restrictions on companies investing overseas, the Turnbull government fears.
The Chinese government ban on "irrational" overseas investment by private Chinese companies, and move to put property and entertainment deals on a restricted list, could hit Australia's tourism and hotel sector, according to Treasurer Scott Morrison, who has sought clarity around the issue in a high-level meeting in Beijing.
Around 1 million Chinese tourists visit Australia each year, and are soon expected to overtake New Zealanders as the largest group of international visitors. But there is a shortage of hotel rooms in major cities.
Former trade minister Craig Emerson says Australia also needs better tourism facilities outside Sydney to cater to Chinese tourists.
Chinese companies were the largest group of foreign investors in Australia last year, with most deals in the property sector.
Mr. Morrison has told his Chinese counterpart, He Lifang, chairman of China's National Development and Reform Commission, that Australia would like to see Chinese investment in Australia continue.
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