AUSTRALIA: Australia's Tourism Booming, Supported By Weaker Australian Dollar,

Tourism to Australia from China surpassed tourism from New Zealand for the first time in September, in a sign of China's ever-expanding importance to the Australian economy.

Craig James, chief economist at CommSec, called it a "red-letter day" for Australian tourism, as seasonally adjusted tourist arrivals from China and Hong Kong totalled 113,500, outpacing the 110,000 from New Zealand, according to government data.

"With Chinese tourism rising at a 20 per cent annual rate, further history-making days aren't far away," he said. Four years ago the number of Chinese tourists was about half the number from New Zealand, Mr James added.

Australia's tourism industry is booming, supported by a weaker Australian dollar, down around 25 per cent in the past year against the US dollar. A recent industry report showed Australia is enjoying its biggest year for tourism since Sydney hosted the Summer Olympics in 2000.

The Australian government forecasts that by 2020, Chinese tourism will be worth 13 billion Australian dollars (about $US9 billion) a year.

Over the next year, recovery in such industries as tourism, health care and education is expected to support growth, helping offset falling mining investment and some slowing in housing construction as the economy searches for new drivers following a decade of being fueled by mining. The rebalancing has been slow, restraining overall GDP growth.

Mr James said economic commentators tallying factors likely to affect Australia's growth have focused too much on China's economic slowdown and falling commodity prices. China's shift from a production-led economy to one driven by household spending, he said, will benefit Australia massively -- assuming the country is prepared for it.

"Australia needs to ensure that we have the infrastructure to cope with perhaps 1.5 million Chinese tourists coming to our shores each year," he added.

New Zealand tourism still has the annual lead, but the trajectories suggest the lines will cross before too long. Over the past year a record 974,100 tourists came to Australia from China, up 22 per cent from a year earlier. With Hong Kong included, the total was 1.2 million, also a record and up 18 per cent.

New Zealand tourists, the government data showed, numbered 1,294,000 -- but up just 5.1 per cent.