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Quest: California feels the bite of austerity Europe
San Francisco (CNN) -- We have reached San Francisco, the end of our almost 4,000 km journey from Chicago. Here, I am meeting the former mayor Willie Brown. He ran the city for eight years from 1996 to 2004, and before that was the speaker of California's legislative assembly for 15 years.
The weather here is spectacular. It is in the 20s, and unusual to have such glorious warm days so late in the year. It makes the Golden Gate Bridge glisten. San Francisco must surely be the most beautiful of cities. But the beauty should not mask the terrible financial mess the state faces.
Gallery: Images from the journey
Expand: CNN's American Quest
It would take a voting catastrophe for President Barack Obama to lose in California. The state hasn't voted for a Republican presidential candidate since 1988. But the president (and the country) must listen closely to the trends coming from here, because what starts in California often ends up spreading across the country. Also there are some crucial Congressional elections which, if they go badly, would make it much harder for the Democrats to regain control of the House.
In California they are worried about the economy and jobs. The unemployment rate, at 10.2%, is the third highest in the country. Immigration and health are also big concerns. But here, they are used to a higher standard of living and superb college system: One which is now crumbling. There is a state budget deficit which would make even the eurozone blush. In May the Governor of California, Jerry Brown, announced the deficit was $16 billion. With the potential to balloon even higher unless something is done.
Read more: Romney's university worlds apart
With these facts, today's California is starting to look a lot like austerity Europe. Think about it. Over the past few years, California has made deep cuts in education, social services, and even releasing some prisoners early to save money. It has proposed raising income and sales taxes to close this stubborn budget gap, that is dangerously large and won't go away while the economy languishes.
There are more similarities. In the past, when California fell on hard times, it could rely on a rising national economy to pick up the slack. After all, the U.S. economy is one large locomotive, and when one state falls on hard times the others can lend a hand.
That can't happen this time, because nationally there is no extra economic oomph to pick up the slack. It is exactly the same as the eurozone, where even the German growth engine can't pull everyone out of recession. As the International Monetary Fund noted in the latest World Economic Outlook, everyone is cutting deficits at the same time and this makes a bad situation worse. California is as much a victim of this as any European country.
Colorado: Will frontier state call election?
I don't want to push this analogy too far. California's economy is in better fundamental shape than many eurozone countries. What I am suggesting is that the European austerity, which so far has not hit most of America, has well and truly arrived. This trend setting state is one of the first to truly feel the longer-lasting effects which I have no doubt will spread -- whoever wins the election.
Austerity California is a glimpse of the future for America; the rest of the country, blinded by extravagant election promises, just doesn't yet realize it.
Cheaper airfares offsetting high dollar
From: AAP October 18, 2012 11:21AM
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TOURISM numbers to Australia continue to grow in spite of a high Australian dollar, because competition is reducing airfares.
Tourism Australia has told a senate budget estimates hearing research found travellers see Australia as a "high value destination" even though it's relatively more expensive to visit.
"Numbers are still growing, largely led by Asia," Tourism Australia managing director Andrew McEvoy told the committee in Canberra on Thursday.
But there had also been a return to growth in the number of travellers in the US and Japan.
The high Australian dollar "is not stopping people from coming", Mr McEvoy said.
"Often the consideration for the consumer is the price of airfares, and at the moment aviation capacity to Australia is growing quite well and the is a lot of great price competition out there."
Mr McEvoy told the hearing tourism was also growing despite an $8 rise in the international passenger movement charge (PMC) to $55 on July 1.
Arrivals grew 6.2 per cent in August and by 3.5 per cent in the eight months to August.
Separately, the Tourism & Transport Forum (TTF) renewed its call for the charge to be reviewed, in line with a recent Trans-Tasman report by the productivity commissions of Australia and New Zealand.
The group said after the charge was increased, arrivals from New Zealand fell - by 4.5 per cent in July and by a 2.4 per cent in August.
"The PMC is a tax on tourism which places a disproportionate burden on visitors to Australia from short-haul destinations like New Zealand, our number one source market for international visitors," TTF chief executive John Lee said in a statement.
The TFF wants the charge to be halved for visitors from New Zealand.
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Eclipse Tourism in Australia
About - News & Issues
Unless you already dwell Down Under, it's a long haul to Australia. But if you're among the thousands of people making for the region of Cairns and the Great Barrier Reef in time for mid-November's total eclipse of the sun, you can bet the once in a ...
Australia's investment in tourism well working
Travel Daily News International
CANBERRA- The figures of international arrivals and Departures show investment to attract tourism from Asia to Australia is well working, said Australia's Minister for Tourism Martin Ferguson in a statement last week. According to the figures from the ...
Timezone Funtasia Wins Award As Australian Tourist Attraction
Vending Times
SURFERS PARADISE, Australia -- Timezone Funtasia was honored with the prestigious Tourism Hospitality & Events Award in recognition of the far-reaching appeal of its Funtasia Paradise Centre family entertainment center in the Cavill Mall here.
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Bad tourism slogans. Australia is not alone
Herald Sun
Still, although it is incredibly tempting to take a dig at the Poms, it's not like Australia is immune to badly thought-out tourist slogans. The most famous would be Bloody hell but there have been others much worse. At least we know we're not alone ...
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Australia's tourism growth – A balance of East meets West TravelDailyNews Asia-Pacific Balancing the complexity and volatility of Australia's key tourism markets over the next 10 years will be the key to our long term growth and sustainability, according to the forecast outlined in the latest Tourism Forecasting Committee (TFC) report. Related Articles » 10 years after Bali bombing, victims remembered as tourists flood into popular ... The Republic "There is peace in this island, and the knowledge that millions still come here for the same reasons you and your loved ones did," Australian Prime Minister Julia Gillard told victims' loved ones at a memorial service. "And perhaps there is a grim ... Related Articles » Tourism Australia signs new MoU with Emirates Financial Express Mumbai: Tourism Australia and Emirates have signed a global marketing agreement to further boost visitation from key markets in Europe and New Zealand. Under a new Memorandum of Understanding (MoU), the two parties intend to collectively spend up to ... Related Articles » Singapore's airport, tourism not celebrating Qantas-Emirates deal Sydney Morning Herald "Australia is an important market for us. "It's not the end of the world and the air space left behind by Qantas will eventually be filled up by regional airlines, but it's safe to say the airport and Singapore tourism are not celebrating. "Australia ...
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