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VTIC welcomes strong events forecast but stresses that attractions must plan for winter visitors
Victoria’s tourism sector experienced a quieter than expected September 2017 Quarter, despite major events such as the successful AFL Finals Series and the Dior Exhibition at the NGV.
While more than a third of businesses in the tourism sector reported a decline in profits during the September quarter, international visitation numbers remain strong and one in five businesses reported a rise in export activity.
Despite this, business conditions are expected to improve entering the final quarter of 2017, which heralds a strong calendar of events. Almost half of tourism businesses expect sales to increase and 43% expect profits to rebound.
Victoria Tourism Industry Council (VTIC) Chief Executive Brad Ostermeyer said the results of the Survey of Business Trends and Prospects showed that despite a promising outlook, important lessons for the future must be learnt.
Ostermeyer stated “the decline in profits over the September quarter was a disappointing but not surprising outcome.
“The winter off-peak is usually a quieter trading period for tourism business, and this is reflected in these results. International visitation numbers remained strong and 20% of businesses reported a rise in export activity.”
Looking ahead to the final quarter of 2017, the industry is naturally optimistic with Victoria’s events calendar heating up and the extended school holiday period approaching before Christmas.
Ostermeyer added “the cyclical and unpredictable nature of profitability and business conditions presents important lessons for the tourism industry. It is vital that we strategically market Victoria to interstate and intrastate visitors as well as our international visitors.
“Our international visitation numbers are strong but the cooler winter months are also a terrific opportunity for Australians to take advantage of lower airfares and accommodation prices and discover what Victoria has to offer.
“The industry’s upcoming peak trading period is a welcome relief but will also create rising employment costs. Almost a quarter of businesses in tourism plan to reduce overtime offered and only 22% are planning to increase employment levels. If business can benefit from consistent, year-round visitation numbers across international, interstate and intrastate markets, this will help off-set some of the impact of rising labour costs over the holiday period.”
VTIC is the peak body for Victoria’s tourism and events industry.
Images: Paddlesteamer at Echuca (top) and The House Of Dior - Seventy Years of Haute Couture exhibition at the NGV (below).
10th July 2017 - NGV’S VAN GOGH HITS RECORD 420,000 VISITORS
7th June 2017 - VTIC HIGHLIGHTS CHALLENGES FOR TOURISM IN REGIONAL VICTORIA
26th April 2017 - LOCAL COUNCILS MAKE BIG INVESTMENTS IN TOURISM
6th April 2017 - VISITOR ATTRACTIONS HIT BY STOLEN CREDIT CARD SCAM
31st March 2017 - HARD WORK AHEAD AS TOURISM SPENDING IN AUSTRALIA EXCEEDS $100 BILLION
24th February 2017 - VICTORIA TOURISM INDUSTRY COUNCIL WELCOMES REDUCED PENALTY RATES
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