Experience washed away in wet season

Experience Co (ASX:EXP) has issued a trading update and revised market guidance: Experience Market Update

Exp update

Experience Co is down 15% in ASX trading this morning.

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Cairns Airport March

Cairns Airport numbers in March were up 3.1% for domestic and 1.7% for international compared to the previous year. In context this looks a bit ordinary if anything coming off the back of weak 2017 numbers and with the Easter period moving from mid April last year to commence in late March this year. April last year was a big month for the Airport with double digit growth.

Sydney and Auckland Airport reports both cited the early Easter for strong monthly growth. Perhaps there was also some Games traffic through SYD.

Airport JanuarySource: Cairns Airport

When results were first posted by the Airport I thought there was some commentary on positive FIFO traffic but either it has been removed or I have had a brain dysfunction.

Commonwealth Games: beyond hyperbole

Nick Behrens: Is hosting the 2018 Commonwealth Games really worth it?

In summary, there is no question the Games will showcase the iconic Gold Coast and Queensland’s spectacular destinations to a global audience that will have a return on investment for many years in the area of tourism. But there are questions that must be asked after the Games and answered not with ‘gut instincts’ but with evidence.

Gene Tunny: Qld economy well positioned in 2nd quarter 2018, esp. given Commonwealth Games

The state government is hoping for an ongoing rather than just a temporary economic boost from the Games, via greater tourism as a result of the international exposure, but I’m pretty skeptical about purported long-term economic impacts from sporting events. For example, the 2000 Sydney Olympic Games resulted in a surge in visitation for the period of the Games but no lasting impact (see this Conversation article Hosting the Olympics: Cash Cow or Money Pit? by two of Australia’s leading economic modellers, John Madden and James Giesecke).

John Quiggin: A policy lesson from G20

We won’t be lining up for another international summit any time soon, but the Commonwealth Games will be in the Gold Coast in 2018. I’m confident that an analysis after the fact will reveal very little to show for the $2 billion we are spending on them.

Google Trends: Commonwealth Games

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