Why the rich Chinese are flocking to Australia’s Gold Coast

If you thought a slower economic outlook for China meant weaker overseas travel and investment, think again.

The natural bounty of the ‘land down under’ has made it a constant favourite with Chinese property buyers and holiday-makers, even more so with the comparatively weak Aussie dollar against the Chinese yuan.

Sydney and Melbourne have long been hotspots for Chinese buyers, but their attention is fast turning to a new up-and-coming favorite: the Gold Coast.

In 2015, Chinese visitors to Australia jumped 21 per cent to over $1 million, bringing with them total spends of $8.3 billion – up 45 per cent year-on-year.

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Just recently, the Gold Coast was named as a new property hotspot for the world’s super rich, but magnetism to the area doesn’t stop there.

Huge boosts in the form of a $345 million make-over of Jupiters Hotel and Casino, the $670 million investment in the Pacific Fair shopping centre, a new light rail extension and a planned $200 million airport expansion are capitalizing on some of the Chinese tourist growth seen nationwide.

The region’s $1.7 billion injection, which plans to gain attraction from deep-pocketed Chinese investors and also inter-state tourists, also comes ahead of the highly anticipated arrival of the Commonwealth Games in 2018.

Pacific Fair’s luxury brands draw in Chinese buyers

Kate Spade, Christian Louboutin, Kit & Ace and Uniqlo were just some of the stores which opened their doors at Pacific Fair’s new shopping centre on Thursday.

Other high-end international retailers, including Hermes, Chanel Beaute, and Tiffany & Co, will open at the centre throughout the remainder of the year, as part of its plan to make the mall a designer destination.

With more than 11.5 million international and interstate visitors each year to the Gold Coast, tourists are an important target market for the centre.

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Because foreign brands sold in China usually are priced higher due to import taxes, shopping is a big part of an overseas trip for many Chinese who have a soft spot for luxury labels.

The mall, which will increase to a total size of a staggering 150,000 square metres on completion to make it the largest shopping mall in the state, is not only directing its focus on luring tourists with big pockets to its high-end shops, but it also plans to cement itself as a destination for dinning, leisure and entertainment.

Jupiters Hotel & Casino transforms

Across the road, investment in tourism is also going ahead at Star Entertainment owned Jupiters Hotel & Casino, which is undergoing an equally transformative overhaul.

The current $345 million investment is expected to position the property as a world-class integrated resort, capturing not only the influx of Chinese and inter-state visitors, but also securing its reputation as a must-see destination even ahead of the Commonwealth Games.

Unveiled late last year, the hotel’s newly refurbished executive and terrace suit rooms complement work already done on the pool and injection of funds into three revamped restaurants.

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“We see enormous potential for the region in terms of long-term tourism and economic growth, particularly as we near the Commonwealth Games,” Star Entertainment managing director of Queensland Geoff Hogg said.

“The refurbishment of our existing facilities […] serve as a catalyst in providing new standards of excellence and guest services, while the addition of the city’s first six-star accommodation […] promises to enhance the region’s reputation as on of the world’s top tourist destination,” he said.

And this is just a glimpse of what is expected in coming years as the group also seeking approval for an additional hotel tower which would house a further 700 rooms and apartments, taking the overall accommodation capacity to almost 1400 rooms.

Pending approval, the total investment under consideration – of the new tower, plus further social areas – could reach another $850 million.