23 July 2008

Qld tourism facing 'tough times'

ABC reports say that Queensland tourism leaders say the sector in Queensland is facing a major challenge from rising oil prices and cost-cutting by airlines.

Qantas has announced it is cutting jobs and reducing capacity on some routes, while Virgin Blue is taking two planes out of the domestic market, introducing new baggage fees, and raising some fares.

Daniel Gshwind from the Tourism Industry Council says it is a difficult period for the industry.

"Well, it is extremely worrying of course we are facing tough times," he said.

"We have had a number of factors line up against us, the high Australian dollar, the fuel costs which are now affecting the airlines severely, the interest rate rises and the lack of consumer confidence in Australia domestically and of course the global economic environment is not exactly making for happy times.

"People make a choice not to spend money on leisure travel and that is a concern for the industry."

A Report by The Mole from ABC

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