Tourism

ATEC slams federal government’s “unrealistic” view on Australia’s tourism recovery

Australians are being urged to help bring a much-needed boost to the tourism industry by taking a holiday at home this year, but the Australian Tourism Export Council (ATEC) warns it’s not a simple fix for our tourism businesses.

ATEC managing director Peter Shelley said that while the federal government is doing the right thing in urging Aussies to spend their holiday savings at home this year, the idea that it can somehow replace the income the industry derives from international was “unrealistic”.

“Domestic holidays can and will help many Australian tourism businesses, particularly those set up specifically for local visitors,” Shelley said.

“But for those who have strongly invested in the inbound market or who have a business set up purely to service the international visitors, domestic travellers just won’t generate the same income.

“Our research has shown that a third of tourism businesses will not benefit from the domestic tourism market, with more than half of businesses expecting to not be viable within six months without international visitors.

“This is hardly surprising given the average spend of an international visitor is $5,211. It’s just not feasible to think most Australians would spend that amount of money on a domestic holiday in order to make up a $45 billion shortfall.”

Shelley said expectations on the travel budget capacity of Australia’s domestic market are unrealistic given the diminished consumer confidence, perceived economic insecurity and disrupted leave entitlements experienced by many Australians this year.

“We have already seen some tourism products adjusting their pricing to encourage locals to get involved, but this price reduction is often being massively and unsustainably subsidised and not delivering any real profits to the business,” he argued.

“Many other tourism businesses are just not able to ‘pivot’ to the domestic market. They are either exclusively focused on international visitors – like inbound tour operators who build itineraries for international travellers and support and service them during their stay, or tourism businesses which have invested in designing products to appeal to particular international markets.

“Our export tourism industry has been an enormous success and has delivered double-digit growth for much of the last decade.

“What’s important now is that we preserve the export tourism businesses which will form the foundation of our rebuilding so we can reignite that successful growth once international borders are open.”

Shelley warned there would be “very few” export tourism businesses who will benefit significantly from a domestic uptick.

“They definitely won’t be looking at the level of revenue our inbound sector has delivered in the past,” he said.

“While we encourage Australians to get out and see Australia, we need to recognise there are some valuable and otherwise viable businesses which will need government support in order to make it through this long period of hibernation.”

Shelley said the ATEC is currently in discussions with the industry and government agencies to negotiate an extension of industry support to help drag Australia’s tourism industry out of “this huge, dark hole”.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Viking ups its marketing tools for Aussie agents

Looking to impress your friends and colleagues with some very specific cruise ship fun facts? You’ve come to the right place.

Share

CommentComments

Destinations

Giant 2,000-year-old cat mural found in Peru

A huge drawing of a cat relaxing has been uncovered in Peru’s Nazca Desert, and now we know where we’re headed the second international borders open.

Share

CommentComments

Destinations

Queensland to reopen borders to NSW (except for Sydney)

Sydneysiders were seen kicking cans down the street this morning while shaking their fists in Queensland’s general direction following the announcement.

Share

CommentComments

Travel Agents

Helloworld’s retail network “largely intact”, as company lays out border and travel ‘bubble’ forecasts

by Huntley Mitchell

Travel Weekly has poured over Helloworld’s quarterly update to bring you this package of highlights.

Share

CommentComments

Technology

Emirates unveils new NDC-powered gateway for travel agents

Have you always found Emirates’ online trade platform to be a little clunky and lacking in capabilities? Relieve your tech-induced pain here.

Share

CommentComments

Road & Rail

Velocity Frequent Flyer partners with Hertz-owned car share company

Are you seeking other ways to boost your Velocity points than by buying a case of Virgin Wines or signing up for another credit card? Look no further.

Share

CommentComments

Hotels

NSW introduces strict new laws to regulate short-term rental market

The new laws include a ‘three strikes and you’re out’ approach for irresponsible hosts. However, that’s not to say they will be forced to wield baseball bats or chew tobacco.

Share

CommentComments

Cruise

Royal Caribbean updates 2021/22 Aussie sailings

The cruise line has also launched a new agent-focused campaign to help you get clients booking early.

Share

CommentComments

Wholesalers

Intrepid slashes prices for NT trips

Show your clients that they don’t need to leave the country to experience epic scenery with this banger deal from Intrepid.

Share

CommentComments

Aviation

Qatar Airways entangled in online recruitment scam

Adding to its already horrendous news week, the airline has become embroiled in an online recruitment scam.

Share

CommentComments

Wholesalers

“It’s good business to have”: Contiki boss talks pivoting to domestic and why agents should target youth travellers

Adam Armstrong began his stint at Contiki at an interesting time, to say the least. Here’s his game plan for the brand and his advice for agents.

Share

CommentComments

Travel Agents

Flight Centre boss demands proof of Queensland’s border closure advice

Skroo’s patience with the Queensland government is wearing thin, after making yet another request to see the medical advice that influenced the state’s border closure.

Share

CommentComments