04 January 2011

Tour operators fear impact of strong Aussie dollar

AustraliaÃ¢â¬â¢s inbound tour operators fear that the strong Aussie dollar, which is at record levels against the US dollar, and performing strongly against the euro and UK pound, will have a sting in the tail for business this year.

The number of visitors from Britain and the rest of Europe is predicted to decline by as much as 15 per cent in 2011 because of the high Australian dollar and weak economies in several European countries.

One of Australia's largest inbound tour operators, AOT Group, told Fairfax newspapers bookings from Europe were soft and likely to fall 10 to 15 per cent this year.

''Eventually it gets to the point where the euro is really starting to bite,'' said Andrew Burnes, AOT's founder and chief executive.

Britain is Australia's second-largest inbound market, the source of about 700,000 visitors a year.

Burnes said tourism operators who relied on overseas visitors in areas such as far north Queensland, Kakadu and Alice Springs were ''feeling the pinch''.

Australians, meanwhile, continue to travel overseas in big numbers - 7 million in the year to October.

Flight Centre boss Graham Turner has sounded a note of caution, however, "It would appear that consumers have been more cautious over the last six months. My gut feeling is that will continue well in to next year,Ã¢â¬~ he said.