Sting in the tail for inbound operators
SYDNEY – The cost of an overseas holiday has fallen almost twice as much as a domestic one over the past 12 months, according to analysis of the latest ABS Consumer Price Index data by the Tourism & Transport Forum (TTF).
Data for the September quarter shows the cost of domestic holiday travel is down 2.6 per cent, while international holiday travel is down 5.1 per cent from a year ago.
TTF executive director Brett Gale said this illustrates the challenges facing Australia’s tourism industry.
“An overseas holiday is 5.1 per cent cheaper now than 12 months ago,†he said, “and the number of Australians taking advantage of that continues to grow.â€
“While the cost of domestic holidays has also fallen, it is only down about half as much as international travel.
“Combine that with the strong Australian dollar and weak economies in some of our major international source markets and tourism operators in Australia can expect the subdued trading conditions to persist for some time.
“That being said, it is 2.6 per cent cheaper for Australians to holiday at home than it was a year ago – and that’s something we’d encourage people to take advantage of.â€
Gale said the figures also show that tourism was hit hard by the global financial crisis.
“Tourism operators cut their prices to stimulate demand during the downturn, and that’s reflected in these data.
“While the cost of living is up 1.3 per cent, the cost of holidays fell 3.7 per cent.
“That’s another indication of a two-speed economy: while some industry sectors are recovering strongly, tourism is being left behind.
“In light of this, TTF is urging the Federal government to at least maintain funding for Tourism Australia in the next budget, as well as allocating additional funding for the National Long-Term Tourism Strategy.â€
Ian Jarrett
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