NTA calls for alliance approval
The National Tourism Alliance has thrown its weight behind the proposed alliance between Qantas and Emirates, insisting it will deliver a vital boost to Australia’s tourism industry.
In a submission to the competition regulator, chief executive Juliana Payne highlighted a number of obstacles encountered by Australian tourism over the past decade which had seen its share of global international arrivals decline by 17.3%.
The industry’s exposure to “external shocks” was largely to blame, with the global economic crisis responsible for shrinking numbers from the UK, the US and Japan.
In addition, the strengthening of the Australian dollar had seen Australian travellers look overseas, while a shift in the sector’s cost structure meant tourism now had to compete with other industries for both labour and land.
“Enabling Qantas and Emirates to coordinate operations will assist Australian tourism to adapt and maximise its potential in a highly competitive and challenging environment,” Payne said in a submission to the Australian Competition and Consumer Commission.
If the tie-up receives approval, Qantas’ marketing activity would bolster Australia’s brand presence in a larger number of European and Middle Eastern countries, she predicted.
Domestic and regional destinations would also benefit from improved connections between inbound Emirates services and the Qantas domestic network, with Emirates frequent flyers also able to redeem points on Qantas domestic flights.
Meanwhile, the partnership would also allow Qantas to “dedicate services to the local Asian market”, Payne said, enabling it to leverage increased marketing by the state and federal governments.
“The rapidly evolving global economic environment requires businesses to be able to adapt and find new partnerships to stay competitive, and to take advantage of the opportunities that are arising in the growth of the Asian consumer markets,” she said.
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