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NEWS
Our sad boating balance of trade
NAB offers snapshot of boating imports/exportsSome interesting data has been published in the latest summer edition of Business View, the National Australia Bank’s business magazine. The big bank has written a cover story titled "The Business of Sport" and Australian boat imports and exports feature prominently.
Of course, Australia is a nation of sport lovers. The turnover in the sector is $6.2 billion, with total expenditure on sporting and physical recreation vehicles, equipment and services in 2009-2010 listed at $8,293.8 million or $18.94 per week per household. That sounds about right.
Now comes the interesting bit for those in the marine industry. The value of sports and recreational goods exported from Australia in 2011-2012 was $285.5 million, down 8 per cent from 2010-2011.
Of the major sporting exports by Australian businesses in 2011-2012, horses topped the list at $87.6 million but -- get this -- boats, yachts and vessels came in next, contributing a substantial $80.2 million to the bottom line. That’s more than swimming equipment and swimwear. Marine outboard motors contributed $15.6 million, even though we don’t manufacture them.
The value of sports and recreational goods imported to Australia in 2011-2012 was 2,006 million, a decrease of just 1 per cent from 2011-2012, but almost 10 times the value of our exports in the sport sector.
Heading the list of imports by Australian businesses in 2011-2012 was -- drum-roll -- boats, yachts and other vessels, with a value in that year alone of $447 million. To put it in perspective, that’s more than double the value of bicycles and other non-motorised cycles imported to Australia. Marine imports sure are big business and there's abundant choice for consumers.
Now to the balance of trade. New Zealand was the biggest market for Australian exports, taking $64.3 million in 2011-2012, almost double that of the next market, the UK. Marine dealers say exports of second-hand boats across the Ditch have remained exceedingly strong this year. It’s good to see some inventory leave our mainland.
The origins of imports by Australian businesses in 2011-2012 are China first with $754 million, the US second with $354 million, Taiwan third with $173 million, Japan next with $110 million and then New Zealand with $100 million.
In other words, our balance of trade is running at a shocking deficit in the marine game, with more than five times as many boats imported as exported here.
Sure, the high Australian dollar and our manufacturing costs are partly to blame -- and Australia's relatively healthy economy saw resilient demand for boats when global exports markets had foundered -- but some government assistance in promoting Australian marine products would not go astray.
Maintaining the status quo and the current arrangements could see our balance of trade worsen, even when export markets turn around.
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Written byDavid Lockwood
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Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
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