In the medium to long term, the key to recovery for affected Asian tourism markets is general economic recovery. We need to be realistic, however, about the region's prospects - just as views about Asia's prospects two years ago were far too rosy, there is a danger of now of being far too gloomy. Asia's long term prospects are still strong. That doesn't mean we are complacent about the region's immediate future. The Government continues to monitor carefully those issues that could lead to further problems - such as the progress of economic reform in Japan, potential pressure on China to devalue its currency, and the impact Asia's troubles has on the US economy.
Japan is clearly an important part of the regional economic equation, including for tourism.
The change in leadership in Japan last week, and the likely confirmation of Mr Keizo Obuchi as Prime Minister later this week, provides Japan with an opportunity to strengthen its resolve to stimulate domestic demand and to continue with urgent structural reform. These reforms are essential if the Japanese economy is to return to strong growth, with commensurate benefits flowing through to Australian exporters and the tourism industry. Recognising the benefits that will flow from an early recovery for the region, the Australian Government has been at the forefront of international efforts to assist. Australia has played a key role by making major contributions to the IMF packages. I am confident that the reforms introduced with the IMF packages will pay dividends over the coming year.