Latest News

Back to Latest News back

 

ATEC warns domestic travel not a simple fix for Australia’s tourism industry

ATEC warns domestic travel not a simple fix for Australia’s tourism industry
June 23, 2020

Although Australians are being urged to boost the tourism industry by taking a “holiday at home” this year, the Australian Tourism Export Council (ATEC) warns it's not a simple fix for Australia’s tourism industry.

With the average spend of an international visitor being $5,211, ATEC Managing Director Peter Shelley notes that “it’s just not feasible to think most Australians would spend that amount of money on a domestic holiday in order to make up a $45billion shortfall."

“While the Government is doing the right thing in urging Australians to spend their holiday savings at home this year, the idea that it can somehow replace the income the industry derives from international visitors is unrealistic.

“Domestic holidays can and will help many Australian tourism businesses, particularly those set up specifically for local visitors, but for those who have strongly invested in the inbound market or who have a business set up purely to service the international visitors, domestic travellers just won’t generate the same income.

“Our research has shown that a third of tourism businesses will not benefit from the domestic tourism market with more than half of businesses expecting to not be viable within six months without international visitors.

Shelley said expectations on the travel budget capacity of our domestic market are unrealistic given diminished consumer confidence, perceived economic insecurity and disrupted leave entitlements experienced by many Australians this year.

 “We have already seen some tourism products adjusting their pricing to encourage locals to get involved, but this price reduction is often being massively and unsustainably subsidised and not delivering any real profits to the business.

“Many other tourism businesses are just not able to ‘pivot’ to the domestic market.  They are either exclusively focused on international visitors - like inbound tour operators who build itineraries for international travellers and support and service them during their stay, or tourism businesses which have invested in designing products to appeal to particular international markets.

Shelley adds “our export tourism industry has been an enormous success and has delivered double digit growth for much of the last decade.  What's important now is that we preserve the export tourism businesses which will form the foundation of our rebuilding so we can reignite that successful growth once international borders are open.

“In truth, there will be very few export tourism businesses who will benefit significantly from a domestic uptick and they definitely won’t be looking at the level of revenue our inbound sector has delivered in the past.

“While we encourage Australians to get out and see Australia, we need to recognise there are some valuable and otherwise viable businesses which will need Government support in order to make it through this long period of hibernation.

“ATEC is currently in discussions with the industry and Government agencies to negotiate an extension of industry support to ensure we protect this important part of our tourism eco structure and help build a plan to successfully drag our tourism industry out of this huge dark hole.”

Image courtesy of Tourism WA

Related Articles

22nd June 2020 - Tourism Australia launch new program to support domestic business events sector 

21st June 2020 - Northern Territory Government awards Aboriginal Tourism Grants

19th June 2020 - Tourism and Transport Forum calls for extension of JobKeeper for another six months

16th June 2020 - ATIC’s COVID Clean Program embraced by Tourism Industry

16th June 2020 - Australian tourism suffers 99.7% fall in international arrivals

15th June 2020 - Victoria Tourism Industry Council welcomes easing of restrictions but highlights challenges of the four square metre rule

12th June 2020 - Insurance refusals impacting adventure tourism operators

12th June 2020 - Rockhampton’s new $31.5 million Museum of Art to drive tourism

11th June 2020 - World Tourism Organization provides global resources for industry restart

10th June 2020 - Victoria Tourism Industry Council welcomes Sovereign Hill’s reopening announcement

9th June 2020 - Go with Tourism to sponsor tourism businesses and education providers for 2020 careers expos

1st June 2020 - Queensland Tourism Industry Council welcomes further easing of COVID-19 restrictions

28th May 2020 - TTA keen for focus on Vocational Training Skills to be extended to tourism and hospitality industry

26th May 2020 - Australian tourism industry requires ‘complete overhaul’ to succeed

13th May 2020 - ATEC highlights the harsh reality of a tourism industry in crisis

30th April 2020 - ATEC part of new Tourism Restart Taskforce to strengthen industry COVID-19 response

22nd April 2020 - ATEC considers diverse and competitive airlines to be critical to Australian tourism

6th March 2020 - ATEC highlights the ongoing threat of Coronavirus to export tourism industry

2nd March 2020 - ATEC remembers tourism innovator James Kwan

17th January 2020 - ATEC emphasises the need for positive messages to international tourists

28th November 2019 - ATEC recognises outstanding industry achievements for 2019


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

MYRTHA POOLS

Founded in 1961, Myrtha Pools® quickly became Italy’s première swimming pool company, and has since grown into one of the world's leading swimming pool construction…

read more

Aquatics / Design / Play / Waterparks / Wellness

 
 
 

Polin Waterparks

Polin was founded in Istanbul in 1976, and has since grown into a leading company in the waterparks industry. Today Polin is one of the world leaders in the design, production, and installation of…

read more

Aquatics / Attractions / Play / Waterparks

 
 

HRMWEB

At easyemployer we've come up with a software solution that manages one of your most important, and often most costly, business resources - your staff. We are helping 100s of clients to…

read more

Finance / Fitness / Technology

 
 

The Jump Pad

The Jump Pad is a safe, flat inflatable made in a variety of sizes which can be used indoor or outdoor. From 3mx3m up to a whopping 9mx21m. Markets include Indoor and outdoor playgrounds, schools,…

read more

Attractions / Entertainment / Play

 
 

Vticket

Vticket Pty Ltd is the Australian and New Zealand distributor for Gateway Ticketing Systems Inc., the world leader in high-speed access control, admission control and ticketing software for the…

read more

Attractions / Security / Technology / Ticketing / Venues

 
 

Hadley/Series Australia Pty Ltd

Hadley Australia and Series Australia Pty Ltd are the leading quality theatre chair manufacturers in the southern hemisphere. The businesses work closely with architects, interior designers and…

read more

Arts / Culture / Design / Entertainment / Venues

 
 

HIDROPLAY

Hidroplay welcomes you to the exciting world of children's Playscapes, waterslide's and Water Attractions. Appealing to families, Hidroplay increases patronage in your facility during those…

read more

Aquatics / Play / Recreation

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business