Special eNews Feature – Australia’s mixed domestic and international tourism picture

Are we in a domestic and international tourism crisis or not?

Queensland’s domestic and international tourism business is down but reports say that New South Wales domestic business is up?

New Australian Bureau of Statistics tourism figures have revealed that domestic visitors to Queensland declined by 6.6% and overseas visitors by 5% for the March quarter, compared to the same period in 2005 and the research also shows that occupancy rates have not grown during June.

The Queensland industry is blaming the domestic decline on Australians spending their disposable income on luxury items such as plasma TVs instead of taking holidays and the international decline on lack of interest in Australia from the traditional Asian markets including Japan, Singapore, Thailand and Malaysia.

Surfers Paradise Chamber of Commerce President and Hotelier Tom Tate told Queensland media that said there were few positives on the horizon, adding, “The only market that’s showing yield, that’s growing, is the Middle East, and that’s only for May and June”. 

“The Australian Tourism Commission’s “Where The Bloody Hell Are You” advertising campaign is also unlikely to provide any short-term relief, with Mr Tate saying it could take months before the impact of the campaign was known.

In an attempt to drive more international business, Queensland Tourism Minister Margaret Keech said that Tourism Queensland had opened a second Japanese office in Osaka and for the first time appointed a marketing manager in India, announcing an aggressive push into the emerging China and India tourism markets and accelerated activities in Japan.

Mrs Keech added, “We will be working together with Gold Coast Tourism and Tourism Tropical North Queensland to increase our focus on all of western Japan.”

An ACNeilsen report reveals that workers in the New South Wales have untaken annual leave of more than 20 million days worth $3.25 billion in wages and that Australian workers have about 70 million days of untaken annual leave, with New South Wales with the most of some 22 million days.

The report also reveals that 33% of workers don’t take any annual leave, while a further 60% don’t take all their allocated time off.

A Tourism New South Wales survey found fear of more work was the biggest obstacle to taking holidays, with 46% of respondents saying their workload got much heavier before and after a holiday with effect that it wasn’t worth taking a break.

Others not talking leave reasons included family commitments with 22% of respondents saying that their children’s needs came first and a further 33% saying that planning a holiday around their partner’s schedule was just too hard.  

The survey also found that income and funding holidays was a big obstacle, with rising living expenses, interest rates and petrol prices making it difficult for most people to afford a holiday.

State Tourism Minister Sandra Nori said holidays were important times to reconnect with one’s self, partners and family, with the survey was conducted to identify barriers preventing people holidaying in destinations within driving distance of Sydney.

The survey also identified what Sydneysiders look for in a holiday, with couples aged 45 and above having a strong focus on history and art and expecting quality food and wine;  singles 45 and above preferring group trips or visiting family and friends, while couples with children prefer short car trips that offer activities for children.

As a result of the study, Tourism NSW has released a series of short-break holiday ideas to entice people away from work, with Ms Nori saying “Most decisions to take short breaks are made one to three weeks before, so it is important people know there are accessible and economic getaway options close to the city.”

It is not known if this also involved a greater allocation of funding by the NSW Government.

In a report in the media this weekend, Ms Nori said that while domestic travel is on the rise, the Federal Government is not doing enough to attract overseas visitors with last week’s Tourism Research Australia report finding that for the first six months of this year New South Wales recording a 3.4% increase in overnight trips, which were also up by 1.5% specifically in regional NSW.

Ms Nori has continued to criticise the marketing performance of Tourism Australia, quoting successive failed Tourism Australia international campaigns with her latest criticism being what she believes to be the failure of the “Where The Bloody Hell Are You?” campaign. 

She also says that the situation has been exacerbated by 7% more Australians and 2.1% more New South Wales residents travelling overseas for their holidays.

Ms Nori said, “If I had a dollar for every person in the tourism industry who has quietly expressed to me real concerns about this advertisement and Tourism Australia’s performance, I would be very, very rich.”

The NSW government has hit back though at claims it is failing to support the domestic tourism industry, saying new figures must be considered in a global context as Liberals at both Federal and State level criticising NSW following the release of a Tourism Research Australia report.

Federal Tourism Minister Fran Bailey said that the nation’s performance was being dragged down by ailing figures in NSW, with the number of overnight domestic visitors in NSW falling by 443,000 in the past 12 month and domestic visitor expenditure in NSW the second worst in Australia, adding, “The NSW government has cut its tourism budget at every opportunity, including in its last budget, driving down regional tourism to NSW”.

NSW opposition tourism spokeswoman Katrina Hodgkinson said domestic visitor expenditure per night in NSW was the second worst in Australia, at $138, with since 2002, NSW government spending on tourism having dropped by $7 million, resulting in a 3% drop in market share and loss of 1,200 jobs.

Ms Hodgkinson added, “The tourism industry estimates the failure of the NSW Labor Government has cost more than $900 million in lost tourist expenditure since 2002”. 

Ms Nori blamed an increase in Australians travelling overseas for the domestic decline, with Victoria the only state which experienced an increase, thanks to the Commonwealth Games adding, “On a national level tourism expenditure had not kept pace with overall consumption”.

The industry is tiring of the ongoing political bantering and the question remains as to who is going to bring these organisations together into a productive resolution of what appaers to be a burgeoning domestic and international Australian tourism crisis.

Special Feature Report by The Mole