If you've been keeping up with global shifts in mining, then you're already aware that the Australian mining industry has been suffering for quite some time. With the end of Australia's mining boom have come concerns regarding how the entire country will be affected, and unfortunately, some of those concerns have already proven valid. Not only have small mining-centered towns been affected by shut-downs, but now even major cities such as Perth have also been negatively impacted.
Recently, Bradley Woods, the CEO of the Australian Hotels Association, expressed his concerns for Perth, revealing that occupancy levels in the city's hotels are down 3.1 per cent compared to the same time last year, a figure that parallels the mining slump.
"What we saw as a result of the mining peak in Western Australia was that there was huge demand from the corporate resources sector for accommodation in Perth. That drove up accommodation demand and price. There was a lot of additional business that came off that." (ABC)While Woods is justified in expressing concerns, he may soon find the trend reversed. With further stabilization of the Chinese economy, Australia can be somewhat assured of its demand in the coming years, since in recent decades a steadily-growing Chinese economy equals a steadily-growing demand for Australian iron ore. According to the Guardian, although the relationship between the Chinese economy and the strength of the Australian mining industry isn't exactly a sure thing, it's enough to give a glimmer of hope.
And sometimes a little hope is just what's needed to hang on until things turn around.
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