10 June 2008

Tourism outlook Ã¢â¬ÅâœdesperateÃ¢â¬~ says AustraliaÃ¢â¬â¢s peak body

SYDNEY - QantasÃ¢â¬â¢ decision to slash international air services to Japan demonstrates the extent of the disaster confronting the Australian tourism industry in the next 12 months due to fuel price increases, according to peak industry body the Australian Tourism Export Council (ATEC).

ATEC managing director Matt Hingerty said that the Qantas air-service cuts, and its decision to close its Cairns pilot base are just the latest in a long line of factors which have AustraliaÃ¢â¬â¢s export-earning A$24 billion inbound tourism industry in crisis.

Hingerty called for a rescue package, including direct financial incentives for Australians to take a holiday within Australia, as occurred after September 11 and the collapse of Ansett.

Ã¢â¬ÅâœThe situation is desperate Ã¢â¬' it is likely we are going to see numerous small tourism businesses go to the wall,Ã¢â¬~ Hingerty said.

Ã¢â¬ÅâœThe industry has not been crying wolf about this issue, and this decision by Qantas to cut services shows how grim things are getting.Ã¢â¬~

Hingerty said that Australian Bureau of Statistics figures demonstrate a continuing decline in visitor numbers from key tourist markets, and werer direct evidence of the industryÃ¢â¬â¢s malaise.

Ã¢â¬ÅâœBetween Federal tax rises on travellers, the high dollar, soaring prices for petrol, food and other business inputs, the tight labour market, high interest rates and more competition overseas, the tourism industry is facing the toughest trading conditions since September 11 and the collapse of Ansett,Ã¢â¬~ Hingerty said.

Ã¢â¬ÅâœWe have seen a deluge of tourism strategies from all sorts of governments, but we donÃ¢â¬â¢t need more process Ã¢â¬' we need immediate and direct financial aid.

Governments have been living off the fat of our endeavours through the GST we harvest, and other taxes and charges, and it is time they put something back.Ã¢â¬~