City’s economy bouncing back but not quite normal yet

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The increase in international figures would involve the Virgin and Jetstar flights to and from Japan, increased services to Singapore and a potential re-start of the Hong Kong route, Mr Faulkner said.

He said international growth was being driven by Europe, the UK and Japan, the US and New Zealand, with China nowhere in sight.

“The UK and Japan have bounced back so dramatically, in particular Japan,” Mr Faulkner said.

He said new markets to target included India, Thailand, Cambodia and Vietnam where there was a growing “consuming middle class” in the sectors of tourism, international education and exports.

Mr Faulkner said tourism was the second biggest employer in Cairns (about 18,300 in 202122, and now estimated at 20,000 – 2017 figures) after health care and assistance (about 27,000), followed by construction and retail (14,000-plus).

He said while tourism was “a standout”, Cairns was not “a onetrick pony” town and was currently rated the most diversified regional economy in the state, according to the Hachman Index, behind the Gold Coast and the Sunshine Coast.

In other areas of the economy, Mr Faulkner said:

• Cairns Regional Council area’s gross regional product had broken through the $10 billion barrier for the first time (2021-22)

• Unemployment rates remained low at just below 4 per cent

• Normal employment levels were coming off record highs (about 136,000 people)

• The gap between males and females seeking jobs had closed from 15 points to 3-4 points

• The labour market was still tight with record job vacancies

• Interest rate hikes were not having much impact on real estate prices which had risen by 30 per cent since COVID

• Rate hikes had hit rents, which were about $500 for a threebedroom house and $400 for a two-bedroom unit but had probably reached a peak

• The rental market was extremely tight at just one per cent

• The state budget for Cairns was “relatively good”, 5.9 per cent of the Queensland total at $962 million, $3685 per person, up $605 on the state average.