President Xi Jinping’s visit results in China becoming Tasmania’s first $1 billion export destination

Tasmania’s exports have surged since the visit of China’s President Xi Jinping five years ago.

TASMANIA’S closer relationship with China has helped fuel a $1.2 billion jump in the state’s annual exports since a whirlwind visit to Hobart by Chinese President Xi Jinping five years ago this week.

President Xi and his wife Madame Peng Liyuan dropped by Government House, cuddled a Tasmanian devil and inspected a Chinese icebreaker before the President took in the sights from atop Mt Wellington.

Brief it may have been, but the one-day visit put the state on the TV screens of 1.3 billion Chinese viewers and gave another boost to a trade relationship that was already on a steep ascent.

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In the year to August 2019, Tasmania exported $3.71 billion of goods worldwide, an increase of 34.1 per cent compared to the year to March 2014.

Over the past five years, China has become Tasmania’s first $1 billion a year market — our biggest trading partner — accounting for a third of overseas trade.

In 2017 alone, Tasmanian merchandise exports to China grew by 52 per cent.

President Xi Jinping and Madame Peng Liyuan meet a baby Tasmanian devil from Bonorong Wildlife Park at Government House during their 2014 visit.

It is not just traditional exports, but services such as tourism and education that have helped fuel the growth.

Last financial year, 44,400 visitors from mainland China visited Tasmania — up 66 per cent on 2014 — making the country Tasmania’s second largest international tourism source market.

At the same time there were 5456 Chinese students enrolled in Tasmania’s education system, comprising approximately 40 per cent of the state’s total overseas student enrolments.

Acting Trade Minister Jeremy Rockliff said building the relationship was to both nations’ advantage.

“The Tasmanian Government is committed to maintaining a positive relationship with China, which is identified as a key strategic priority market under our trade strategy,” he said.

“We see great opportunity into the future to further grow our export of agricultural products, resources, energy, tourism and services.

“This government will continue to proudly champion our businesses on the international stage through our trade strategy to maintain the growth in our economy and support more local jobs.”

Tasmania’s major exports to China include iron ore, processed zinc, Atlantic salmon, abalone and forest products.

Merchandise exports have almost doubled in the past five years, growing from $610 million to more than $1.1 billion last financial year — taking the total value of exports to China to $1.157 billion.

Five years ago, President Xi visited his nation’s first icebreaker Xue Long, which was berthed in Hobart.

Earlier this month, the ship, and its new sister vessel Xue Long 2 were again in port, underlining the importance of the state’s growing Antarctic sector.

Each such ship visit can inject $1 million into the local economy as they refuel and resupply.

Fish Frenzy manager Garry Shepherd and staff member Molly Hulton. The restaurant now carries Chinese language signage because of the upturn in Chinese tourism. Picture: RICHARD JUPE

University of Tasmania Vice Chancellor Rufus Black visited China recently, touching base with five partner universities.

Overseas students make up 20 per cent of the university’s enrolments and the 4156 Chinese university students make up the largest single overseas student cohort in Tasmania.

Professor Black said overseas students made an invaluable contribution to the university – and to the wider community.

“In recent years, our university has pursued a strategy centred on growth in international student numbers, particularly those coming from China and India,” he said.

“It helped to achieve the scale needed by a university with the breadth of offerings and multiple campuses that ours has; it strengthened ties to our global community, and added to the cultural richness and diversity of the Tasmanian community.”

Premier Will Hodgman is visiting Europe this week with an eye to building trade relationships there.

His delegation includes representatives from the Tasmanian Maritime Network, the Tasmanian Polar Network, the Australian Industry Defence Network, IMAS, the Australian Maritime College and Hydro Tasmania, as well as our Defence Advocate.

They will meet with senior government and business leaders in the UK, France, Spain and the Netherlands.

Mr Hodgman, who is the state’s trade minister, says he is keen to build on success to date.

“Tasmania’s economy is the fastest growing in the nation and our government’s plan is all about maintaining the momentum,” he said.

Mr Rockliff said building trade and broadening its base was one of the Government’s highest priorities.

“A thriving export sector does not happen by accident, it requires constant engagement with our overseas trading partners and ongoing development of new and existing markets,” he said.

“That’s why the Government developed Tasmania’s first ever trade strategy.

“The strategy is designed to position Tasmania to be globally competitive, help our businesses expand their presence in international markets, and attract investment and create additional jobs in our state.”

Data from Tourism Research Australia released in January showed a massive increase in the number of Chinese tourists coming to Tasmania, as part of an overall increase in international visitation of 15 per cent.

In the 12 months to September 2018, 51 per cent more Chinese visitors came to the state compared with the previous 12 months.

China is Tasmania’s biggest international tourist market with 52,300 Chinese visiting over the period covered by the data.

Luke Eliasz, from Earthfire Opals, said his Salamanca Market stall was much more popular with Chinese tourists, with very few visiting his Brooke St Pier store. Picture: RICHARD JUPE

Businesses on Hobart’s waterfront have mixed reports about the impact of increased Chinese visitation.

Fish Frenzy manager Gary Shepherd said the number of travelling Chinese coming to the restaurant had steadily increased since the President’s visit.

Fish Frenzy now carries Chinese language signage and menus.

“There was an increase immediately after the visit, but there’s been a continual flow since,” Mr Shepherd said.

“We had a table of 10 [Chinese visitors] in today.”

In the Brooke St pier, where a range of small Tasmanian businesses and artisans sell their wares, there has been less of a noticeable impact.

Julie Hoddy, of Island Tastings and Spirits, said the majority of tourists visiting her business were Australian.

”Most are from mainland Australia, and we have an even mix I would say between Japan, China and Singapore,” she said.

Ms Hoddy said Chinese customers usually were interested in a few specific products,

“Leatherwood honey, and tea is a big seller, as is fudge,” she said.

Jewellery maker Luke Eliasz from Earthfire Opals, who has a store in the Brooke St Pier and a permanent stall at Salamanca Market, said the market was much more popular with Chinese visitors.

“We get very few Chinese customers through the pier,” he said.