The number of overseas tourists and other short-term visitors to the ACT from offshore has rebounded to almost reach pre-pandemic levels.
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Australian Bureau of Statistics figures show there were 10,780 short-term arrivals to Canberra in July, almost double the amount from a year earlier and just 3.2 per cent shy of the number reached in July 2019.
The biggest group of arrivals were from China, accounting for 3060 trips, followed by New Zealand and the United States (890 trips each), then the United Kingdom, India and Singapore.
In a sign of the tourism growth potential, the ABS figures show short-term arrivals from China still remain well short of the numbers achieved pre-pandemic, when they approached 4500.
Overall, the country has experienced a strong rebound in the number of tourists and international students arriving.
The number of short-term arrivals from overseas reached 625,120 in July, an increase of more than 91 per cent from July 2022 and getting close to the 790,380 who arrived in July 2019.
Canberra Regional Tourism Industry Council chief executive officer Naomi Dale said Australia as a whole was still struggling to get international tourist numbers up to pre-pandemic levels but Canberra was benefiting from people coming from overseas to visit friends and relatives.
![There were almost 11,000 short-term arrivals to Canberra from overseas in July. Picture by Karleen Minney There were almost 11,000 short-term arrivals to Canberra from overseas in July. Picture by Karleen Minney](/images/transform/v1/crop/frm/202296158/8df4773b-7b74-4de8-90c2-55abe1009815.jpg/r0_285_5568_3428_w1200_h678_fmax.jpg)
Dr Dale said that segment of the market was "on par to where we were pre-COVID".
"The VFR [visiting friends and relatives] market is good because they have got a really powerful reason to catch up with people," she said.
Dr Dale said the overall tourism market was still down at around 70 per cent of where it was before the pandemic and might take some time to recover.
She lamented the fact that major carriers Singapore Airlines and Qatar Airways were yet to reinstate services to Canberra.
"Having lost Singapore Airlines and Qatar Airways, who were flying almost daily, is a real loss for us," she said.
International student numbers are recovering. In all, 131,640 arrived in July, more than double the result in the same month last year, but still 8.5 per cent less than pre-COVID.
The increased influx of international students is adding to the pressure on the property market, including for rentals.
Official figures show that Canberra had, on average, the costliest housing market in the country after Sydney in the June quarter.
According to the ABS, Canberra's mean dwelling price reached $947,900 in the June quarter, an increase of more than $6000 in three months but still cheaper than in the December quarter, when the mean price reached $962,800.
Sydney has the most expensive homes in the country. The mean dwelling price in the city was at $1.167 million in the June quarter.
House prices are strengthening as people become less worried about more rate hikes.
But confidence is still being sapped by high living costs, a survey of consumer sentiment has found.
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The two main measures of consumer sentiment, by Westpac-Melbourne Institute and ANZ-Roy Morgan, both recorded a drop in mood this month despite interest rates remaining unchanged for a third consecutive month.
The Westpac-Melbourne Institute measure dropped 1.7 per cent to 79.7 points and the ANZ-Roy Morgan index fell 1.1 points to 77.6 points.
Westpac chief economist Bill Evans said the result showed people remained deeply concerned about the outlook for the economy and their personal finances.
"Sentiment has languished at deeply pessimistic levels for more than a year now," Mr Evans said, exceeded only by that registered during the country's last recession in the early 1990s.
"The strong message from survey detail is of ongoing intense pressures on family finances," the Westpac economist said.
ANZ economist Madeline Dunk said the ANZ-Roy Morgan index has now been less than 80 points for more than six months - the longest period of sustained weakness in the survey's history.
The extended rates pause has brightened the mood of those paying off a home, whose confidence jumped 7.8 per cent, according to the Westpac-MI survey. But this was more than offset by continued deep concern about household budgets, particularly among renters and those who own their homes outright.
The survey's index tracking the assessment of family finances compared to a year earlier dropped 4.4 per cent to its lowest level in this cycle, Mr Evans said, with the recent surge in fuel prices, rents and energy costs all weighing heavily on sentiment.
The survey also found people expect unemployment and house prices to increase, and are much more focused on saving and reducing debt than making a big purchase.
Mr Evans said the results pointed to ongoing weakness in consumer spending, which grew by just 0.1 per cent in the June quarter, and added to the argument to keep interest rates on hold.
"Under these conditions, the case for the [Reserve Bank of Australia] board to increase rates further is quite weak," he said, tipping that the official cash rate will remain at 4.1 per cent until August next year, when rate cuts will begin.
"By then it will certainly be time for both the monetary and fiscal authorities to provide some much-needed support for households," the Westpac economist said.