How Trump’s Election Will Affect the Australian Hospitality Industry - The Talent Kitchen

How Trump’s Election Will Affect the Australian Hospitality Industry

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How Trump’s Election Will Affect the Australian Hospitality Industry

The electoral college vote seals Trump’s victory. Americans made their choice in a Brexit-like fashion and elected the tough-spoken Republican, Donald Trump as president. There are obviously going to be implications following to the election result. Among the sectors that will be affected in Australia is the hospitality industry which forms a significant part of the economy. Other institutions like the defense forces of the land will also be affected if Mr. Trump meant the words that he said during campaigns. These areas could impact directly or indirectly on the hospitality industries. Anyone who is interested in opening a restaurant in Sydney, Melbourne, Perth or any part of tAustralia has to evaluate the impact that the Donald Trump presidency will have on this industry which is no doubt cherished these sides.

Unemployment Rates in Australia

Before we go to what is coming ahead after the US elections, let us take a look at the current unemployment rates in Australia. A comparison by the experts between 2013 and 2016 has shown that there has been a drop in the levels of unemployment in Australia in the last three years. The figures by the Labor Force indicate that the number of those unemployed dropped by about 10,500. The economy is reported to have lost 3,900 jobs which is the lowest figure in three years. This shows some progress but what should we expect with Donald Trump now in the driving seat of the United States?

How Will Trump’s Presidency Change the Situation

We have seen that the hospitality industry has been experiencing some hard times, but a positive part is that jobs have been created in Australia, probably in other sectors. And here comes the Republican victory that will have a bearing on the sector. The question is just what impact, positive or negative?

Tariffs on Imports

Remember Trump said during his campaigns that he would raise the tariff fees on imports from foreign markets like China. This means that China, Australia’s good business friend for a long time will be affected a great deal and trade between these two nations will not be as smooth as it has always been. To some extent, this will have repercussions that will hit the food and accommodation investments because some of the products that are required to run such businesses come from China.  But now the import prices will be distorted, and this will likely cause a rise in the cost of running a hospitality business. The customers might have to pay more for the services and a decline in business might be looming. Australia is exposed to the global market, and if Trump’s US policies affect many nations, then Australians will feel the impact.   


Australia has fought alongside America for a long time since the times of the First World War. America has also been helping to keep South Korea and Japan safe from their ambitious neighbours such as North Korea who are striving to acquire nuclear powers. Australia, knowing that they also have interests here have been working with the Americans on these Asian borders. But Trump’s sentiments suggest that the United States forces are going to be withdrawn, and Japan and South Korea have to be on their own. The potential of insecurity is evident when this happens and if the insecurity overflows to Australia, people, especially tourists will not be much willing to risk their lives visiting the Lucky Country.

Although both Trump and Clinton said that their economic policies would boost the US economy, not many economic experts would back the former’. Even as the results were trickling in and Trump looked the likely winner, Australian shares began to fall, and the dollar also experienced a decrease in value. It is as if foreign investors fear Trump as a ruler and it will take some time before the brave ones decide to invest in regions that will be affected by Trump’s trade policies, of which Australia is a part.

The Admirable Resilience of Australia’s Hospitality Industry

Yes, Trump emerged victorious and we have looked at the negative possibilities that might be imminent. However, the best part is that a look at Australia’s hospitality industry today reveals a sector that is strong and resilient no matter the challenges coming its way. Though there has been closure of some restaurants and motels, there has also been a significant number of new ones coming up. On average, an Australian hotel employs 34.7 people. Figures from the AHA report that 188,000 jobs were created by the hotel industry. Besides, hotels in Australia host about 250,000 live music events which are very crucial in the development of local talent. This means that several positives can also be picked out from the hospitality industry and you won’t have to debate too much if you are thinking of venturing into it.

This moment might be a low one but the Australian hospitality industry will surely find a way out. Remember the boom that come to the sector during the hosting of Olympics and then the depression that followed in the coming years. Today, no one is feeling the pinch and it will as happen with the American election. After some time, Australian hotels will be near the topmost rungs of the ladder.

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