Cairns Economic Monitor - March 2026
Cairns is seeing strong momentum in international visitor numbers, boosting confidence ahead of the peak tourism season as demand rebounds from key Asian and European markets. However, rising geopolitical tensions in the Middle East add a layer of uncertainty. Disruptions to European flight routes and higher fuel prices could shift travel patterns and impact visitation if instability persists.
At the same time, the economic picture is mixed. The Reserve Bank has lifted the cash rate to 3.85%, with inflation expected to remain above target until 2028, leaving the possibility of further rate rises this year. Meanwhile, building approvals have dropped to near six-year lows, raising fresh concerns about housing supply in an already tight market.
Despite these pressures, Cairns’ labour market remains a standout, with unemployment falling to 4.5%, the only region in Queensland to improve this month.