International Trade: Supplementary Information, Financial Year

The balance on international trade in services was a surplus of $13,674m in 2020-21. This is the second surplus in a row, following 15 consecutive years of deficits from 2004-05 to 2018-19.

The size of the surplus increased $8,118m (146%) year on year, largely driven by a bigger fall in Travel service imports than in Travel services exports.

Due to a large decrease in Travel, states with significant exports of Travel services experienced related year on year decreases to their total export value.

The largest decreases were New South Wales, down $9,959m (25%), and Victoria, down $8,364m (33%).

The top three countries of export for services were China, United States of America and Asia, nes, which together accounted for 38% of the total exports value.

As with exports, states with significant imports of Travel services experienced related year on year decreases to their total import value.

The largest decreases were New South Wales, down $12,429m (33%), and Victoria, down $10,278m (50%).

The top three countries of import of services were United States of America, United Kingdom and Singapore, which together accounted for 36% of the total imports value.

Services exports decreased $29,508m to $62,527m in 2020-21. The largest contributors to the decrease were Travel services, down $27,556m (50%), and Transport services, down $3,147m (46%).

Partially offsetting Travel and Transport was Personal, cultural, and recreational services, up $2,868m (87%).

Other personal travel, down $15,980m (98%), and Education-related travel, down $9,784m (26%), were the main drivers of the decrease in exports of Travel services. These decreases were a result of COVID-19 restrictions, with travel restrictions in place throughout most of the 2020-21 financial year.

Despite the large decrease, exports of Travel services continued to be the largest contributor to total service exports, accounting for 45% of the total value in 2020-21 (down from 60% in 2019-20). Education-related travel accounted for 98% of the total Travel value, up from 67% in 2019-20, with many international students continuing their studies or having entered Australia before the introduction of travel restrictions.

New South Wales accounted for 37% of all Travel service exports in 2020-21, followed by Victoria (32%), with the two states hosting the largest numbers of international students.

Due to Other personal travel being at historically low levels, country breakdowns for exports of Travel services were predominantly driven by Education-related travel. 

China continued to be Australia's largest country of export for Travel services and accounted for 22% of Travel exports (down slightly from 24% in 2019-20). This was due to many Chinese students continuing their studies inside Australia or entering Australia to resume or commence their studies before the introduction of travel restrictions. Despite this, exports of Travel services to China were down 64% on pre-COVID-19 levels (2018-19).

While the international student population in Australia declined in 2020-21, the number studying outside of the country increased significantly. Many students were unable to enter the country to commence or resume their studies, leading to an increase in online study with Australian universities which is captured as a service in Other personal, cultural and recreational services.

Other personal, cultural and recreational services increased $2,911m (110%), and accounted for 90% of the total Personal, cultural and recreational exports value.

Together, New South Wales and Victoria accounted for 79% of exports of Personal, cultural and recreational services.

In 2020-21, China was the largest country of export for Personal, cultural and recreational services and accounted for 52% of the exports value, up from 34% in 2019-20.

Transport passenger was the main driver of the decrease in Transport services, down $2,404m (98%). As with Travel, Transport services declined due to COVID-19 related travel restrictions and the limited number of passenger flights operating.

Services imports decreased $37,626m to $48,853m in 2020-21. The largest contributors to the decrease were Travel services, down $34,419m (97%), and Transport services, down $2,518m (15%).

Other personal travel, down $31,079m (98%), and Business travel, down $2,937m (93%), were the main drivers of the decrease in Travel services.

Travel imports were significantly impacted by COVID-19 travel restrictions in 2020-21 and accounted for only 2% of the total services imports value, down from 41% in 2019-20.

Despite New South Wales’ value of Travel services imports decreasing 95% in 2020-21, its proportion of total Travel imports increased from 33% in 2019-20 to 53%. In contrast, Victoria’s proportion of Travel service imports decreased from 27% to 18% and Western Australia’s decreased from 13% to 7%.

The changes in proportions of travel service imports in 2020-21 were a result of:

• the trans-Tasman travel bubble with New Zealand
• varying restrictions across states
• state specific COVID-19 outbreaks and subsequent lockdowns.

In 2020-21, New Zealand was the largest country of import for Travel services and accounted for 40% of the value, up from 9% in 2019-20. The increase in the proportion of Travel service imports from New Zealand is due to the trans-Tasman travel bubble, with two-way quarantine free travel commencing in April 2021.

Transport passenger was the main driver of the decrease in Transport services, down $4,646m (87%). Offsetting Transport passenger, and increasing to a record high value in 2020-21, was Transport freight, up $2,555m (25%).

The limited number of passenger flights, coupled with increased global demand for physical goods led to shortages of shipping containers and port congestion throughout 2020-21. These supply chain disruptions resulted in unprecedented shipping costs.

This publication includes historical revisions which are also included in the Australian System of National Accounts, 2019-20 (cat. no. 5204.0), released in October 2020, and the September 2020 issue of Balance of Payments and International Investment Position (cat. no. 5302.0) to be released in December 2020.

01/07/2022 - In Table 6. International trade in services, debits, financial year by country and service, $m, the 2008-2009 figure for Government goods and services n.i.e., France, has been updated with the correct value.

The ABS would like to thank the Department of Foreign Affairs and Trade (DFAT) who have provided funding and support for this publication.

This release previously used catalogue number 5368.0.55.003.