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5216.0 - Australian National Accounts: Concepts, Sources and Methods, 2000  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 15/11/2000   
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Contents >> Chapter 14: Final consumption expenditure >> Adjustment for expenditure overseas less expenditure of non-residents in Australia

Adjustment for expenditure overseas less expenditure of non-residents in Australia

Description

14.287 This item is included in HFCE COICOP items 01-12, which are discussed above, as an adjustment to each appropriate good or service so that total HFCE covers the expenditure only of resident households (in Australia and overseas). Thus expenditures by overseas visitors on fares, meals, accommodation, entertainment, recreation and other goods and services are deducted from the appropriate HFCE categories and expenditure by Australian residents abroad is added to each appropriate category. Calculation of net expenditure overseas is a two stage process. The first stage estimates the total value of net expenditure overseas. The second stage allocates expenditure to the appropriate HFCE category.

14.288 As the name implies, this is a net item composed of two major subitems offset against each other. The first of these is Expenditure overseas by residents. It is composed of two balance of payments items:

      • Personal travel debits; and
      • Expenditure of Australian Government employees.

14.289 Personal travel debits, as adjusted for national accounting purposes, records the acquisition of goods and services abroad by residents travelling at their own expense (i.e. other than by business travellers, whose expenditure is largely intermediate consumption of the employing business). Examples are purchases of accommodation, meals, ground transportation and tours. Expenditure of Australian Government employees records the personal expenditure abroad on goods and services by Australian diplomats stationed abroad and by their dependants.

14.290 The second major subitem, Expenditure of non-residents in Australia, is also composed of two balance of payments items:
      • Travel credits; and
      • Expenditure of foreign government employees.

14.291 Travel credits records the acquisition of goods and services in Australia by all non-resident travellers. Expenditure of foreign government employees records the personal expenditure in Australia on goods and services by foreign diplomats and their dependants stationed in Australia.

Sources and methods

Expenditure overseas by residents

14.292 The estimates for personal travel debits are prepared by multiplying the number of residents travelling overseas for other than business purposes by their average expenditure. The number of travellers is derived monthly by averaging the numbers of short-term overseas departures and arrivals of non-business residents from Overseas Arrivals and Departures, Australia (Cat. no. 3401.0). The Survey of International Trade in Services (travel component) provides a quarterly measure of the per capita expenditure of Australian travellers abroad using credit cards, travellers' cheques, cruise fares and other prepaid packages. It is supplemented with data every four years from the Survey of Returned Australian Travellers, which provides a split between business and non-business traveller expenditures as well as information on the cash taken abroad by Australian travellers and other sources of travel finance such as from earnings abroad.

14.293 Expenditure of Australian Government employees is estimated using information from Commonwealth government records. The annual estimates are obtained by summing the quarterly estimates.

Expenditure of non-residents in Australia

14.294 The balance of payments item Travel credits comprises three components: business travel; education-related travel; and other personal travel. The first and third categories are estimated by multiplying the number of visitors in these categories by their average expenditure. The number of visitors is derived monthly by averaging the numbers of short-term non-education arrivals and departures of foreign visitors from Overseas Arrivals and Departures, Australia (Cat. no. 3401.0). Their average expenditure is estimated using a number of sources. First, data are compiled from the International Visitor Survey conducted on behalf of the Bureau of Tourism Research, which collects, from short-term visitors immediately prior to their departure, information about their travel expenditure in Australia. Second, the Australian landed content of prepaid package tours by non-resident travellers is estimated from a variety of sources including a former ABS survey of inbound tour operators. The annual estimates are the sum of the quarters.

14.295 Third, on-carriage receipts of Australian domestic airlines measures the revenue of resident airlines for carrying foreign travellers on international airline tickets for domestic transport legs beyond their initial arrival in Australia. Quarterly estimates are compiled directly from the Survey of International Trade in Services (transport component) and annual estimates are the sum of the quarters.

14.296 Fourth, the expenditure of foreign military crews is estimated from advice by the Department of Defence regarding Visiting Military Personnel, which provides quarterly data on the number of foreign service personnel visiting Australia, together with per capita expenditure data supplied irregularly by the United States Navy. Annual estimates are the sum of the quarters.

14.297 The education-related component of personal travel credits is expenditure of foreign visitors coming to Australia for the purposes of education. The Department of Education, Training and Youth Affairs (DETYA) provides calendar year estimates of the number of foreign students in Australia within the scope of its statistics and indicative per capita course fees per student registration. These estimates are combined with per capita goods and services expenditure of foreign students (derived from the DETYA Survey of International Students conducted in 1991-92, 1996-97 and 1999) to estimate the total expenditure of foreign students studying in Australia. Annual estimates are distributed to quarters using data from Overseas Arrivals and Departures, Australia (Cat. no. 3401.0) as an indicator of arrivals of visitors for the purpose of education in Australia.

14.298 Expenditure of foreign government employees is estimated using the diplomatic and consular lists for the number of foreign diplomats and the Household Expenditure Survey for an estimate of their personal expenditure. Diplomats are out of scope of the HES, but the assumption is made that their expenditure is similar to that of high-income Canberra households. Quarterly estimates are obtained by equally distributing the annual estimates.

Allocation of net expenditure overseas to HFCE category

14.299 Data on categories of expenditure by visitors to Australia are published by the Bureau of Tourism Research.


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