THE Far North’s economy is showing some signs of weakening.
Cairns economist Bill Cummings said in his latest AprilMay 2023 economic trends report that the Reserve Bank’s actions to slow the economy were having an effect with some rise in numbers on unemployment benefits, patchiness in single house dwelling approvals and some evidence that domestic airborne passenger numbers were down on last year.
“After having flattened out following recovery from COVID restrictions (except for a one-month seasonal rise in December that occurs each year), in April the number registered for employment benefits rose by about 1000 in the Cairns region,” he said.
“However, it will be important to wait for a further month’s figures before it is certain that an upward trend is occurring.”
Figures show those on Job Seeker and Youth Allowance payments in April were 8875 in Cairns and 15,440 across the region, the highest since July last year.
Mr Cummings said passenger numbers through the airport overall were 11 per cent down on pre-COVID, the same as the previous month.
“The domestic terminal remains down about 6 per cent. Recovery through the international terminal continues but still remains 36 per cent down on pre-COVID,” he said.
“The indications are that domestic visitor numbers by air are down on last year.”
However, last month Cairns Airport figures bounced back after dropping in April.
Domestic passengers were up 10,349 or 3.4 per cent to 312,682 in May, while international numbers were up to 35,671, the best this year. Overall passenger numbers were up 13.2 per cent to just under 360,000.
Mr Cummings said Cairns Regional Council building approvals for separate house dwellings had become quite variable in the first five months of this year. April figures were very low (29) but there was some recovery in May (54).
“It is clear that the bounce in interstate migration into Queensland post-COVID is now over,” he said.
Mr Cummings said population growth was expected to be moderate when figures were released next year Mayor Bob Manning said the figures were “bouncing around a bit”.
“Does anyone know where we are going?,” he asked.
Cr Manning said it was currently “tough” for small businesses, but tourism was holding up, particularly domestically.
Cairns Airport chief operating officer Garry Porter said April, post-Easter and school holidays, and early May were traditionally softer periods for domestic travel to Cairns.
“Coupled with this, airlines’ domestic capacity has been lagging the same period of 2019. Some carriers unfortunately continue to face cancellations, with crewing and engineering having an impact on some services,” he said.
“The new Bonza services have been well supported and periods of both April and May were bolstered by relevant periods such as Easter and school holidays.
“We saw an influx of passengers during the sitting of regional cabinet, and during events such as IBECC, Cannes in Cairns and Crankworx.”
