Cairns political and industry delegation to Hong Kong coincides with cooling tourism market

A crack team of Cairns delegates is jetting to Hong Kong to convince a major airline to choose the Tropical North as its next flight route over other international destinations, including Paris.

A Cairns A-team is making their way to Hong Kong to return Cathay Pacific flights, and a $200m tourist market, to the Far North. Picture: File photos

A crack team of delegates will jet to Hong Kong this week to entice Cathay Pacific back to Cairns – a vital mission as the Far North’s post-Covid tourism market begins to cool.

The paramount task of the delegation is to convince Cathay Pacific Airways executives to choose Cairns as the airline’s next route over other major international destinations such as Paris.

Prior to Covid, Cathay operated up to four flights per week into Cairns, which were pivotal to bringing cashed-up Chinese tourists to the region – a market that was worth $200m per year.

Since Covid the Chinese tourist market in FNQ has barely lifted off the ground, but higher than normal domestic visitation has resulted in greater tourism revenue; the Far North’s visitor economy was worth $3.5bn in 2019, and $4.4bn in 2022.

But according to Tourism Tropical North Queensland CEO Mark Olsen, who will participate in the delegation, domestic visitors are arriving to Cairns in smaller numbers as the world has progressively opened up to international tourism.

Returning the Cathay flights, he said, would be crucial to keeping the Far North’s tourism bottom line healthy as domestic demand falls.

“Our domestic market is slowing. Expenditure by domestic tourists has been 165 per cent of what it was pre-Covid. That’s not sustainable,” Mr Olsen said.

“Getting that Chinese market back is essential to our recovery.”

Tourism Tropical North Queensland CEO Mark Olsen said the Far North’s domestic tourism market is cooling. Picture: Brendan Radke

The delegation will also include Cairns MP Michael Healy, Advance Cairns CEO Jacinta Reddan, Cairns Airport executives including CEO Richard Barker, and executives from Trade and Investment Queensland.

In 2022 the Federal Government allocated $15m in its budget for TTNQ to use for destination marketing.

Mr Barker said the Hong Kong delegation was a key opportunity to use that funding, as well as portion of the Queensland Government’s $200m Attracting Aviation Investment Fund, to market FNQ in southeast China.

“Cathay’s big challenge is they’re 1000 pilots short of pre-Covid operations. A lot of pilots and aircrew have left Hong Kong,” Mr Barker said.

“We’re competing with global destinations. (Cathay) has got lots of choices.

“We’re competing with destinations such as Paris and Shanghai as well as other cities throughout China and Japan.”

Cairns Airport CEO Richard Barker said Cairns will compete with destinations such as Paris and Shanghai for Cathay’s next route. Picture: Brendan Radke

On Monday Singapore Airlines officials confirmed an Airbus A350-900 widebody aircraft would be deployed between Cairns and Singapore four times per week from March 2024, a first for the airline.

Mr Barker said Singapore Airlines’ move would only increase industry confidence in Cairns as a destination.

“We need to show we’re an attractive destination for tourists and (a source of) high value produce exports … that’s why the delegation has representation from key tourism and agricultural businesses,” he said.

The trip coincides with China’s recent decision to place Australia back on its approved travel destinations list.

Jacinta Reddan said the delegation had a compelling case.

“Securing this route would have a significant impact on the regional economy, allowing our growers and seafood exporters the ability to provide their produce direct to market,” Ms Reddan said.

“Given the more than 25 years Cathay flew direct between Cairns and Hong Kong, it is clear that route has been commercially viable in the past.

“We believe the demand for regional premium produce is stronger than ever and our growers have the volume to meet that demand.”

Originally published as Cairns political and industry delegation to Hong Kong coincides with cooling tourism market