Year defined by low-cost carrier battle
Australian holidaymakers fell in love with their own backyard
this year, but the industry is warning more will need to be done to
keep this love affair alive.
The boost in domestic travel, which has lagged over the past few
years, thrilled industry experts who say the battle between
low-cost carriers has changed the way Aussies think about
travel.
“Domestic tourism has faced significant challenges in recent
years but the rise and rise of low-cost carriers is encouraging
Australians to take more frequent holidays in their own backyard,”
Tourism Transport Forum (TTF) managing director Christopher Brown
said.
He said the battle between Jetstar and Virgin Blue had not just
lowered fares, making the European style “city break” a genuine
possibility in Australia, it had reinvigorated tourism in regional
areas, particularly the Gold Coast, Cairns and Newcastle.
And with new Singapore Airlines budget offshoot Tiger Airways’
launch late this year, and plans to expand next year, the trend is
set to continue.
A report by the Tourism Forecasting Committee predicts the
country’s aviation sector will expand by 27 per cent in the next
two years.
The strong market is expected to provide huge falls in airfares
and encourage even more Australians to see their own country.
It’s good news for an industry which has recently worried that
the effect of rising living costs might stunt domestic travel.
More recently, a strong Aussie dollar threatens to draw more
Australians overseas on getaways that are more affordable now than
in the past.
Indeed, the Tourism Forecasting Committee’s report found that,
in the long term, domestic tourism would suffer intense pressures
from a drop in discretionary spending, propelled by high petrol
costs and increased jet fuel prices.
Mr Brown said the answer may lie in marketing holidays in the
same way as goods such as plasma televisions, which have soaked up
consumer spending in recent years.
“It is incumbent on the industry to continue to showcase
Australia’s home-grown tourism experiences,” he said.
“We must sell our product as effectively as consumer good
manufacturers sell theirs, not least if interest rates continue to
apply downward pressure on household spending.”
At the same time, concerns are held that the strength of the
dollar will deter international visitors, making other cheaper
destinations more appealing.
Australian Tourism Export Council (ATEC) managing director
Matthew Hingerty said a spark was needed to help operators who were
finding it increasingly difficult to compete in the strong
international market.
He said if Australia’s identity as a beach getaway did not
evolve soon, the industry would not meet its visitor targets -
projected to increase by 4.7 per cent per year to 2016 - and lose
market share to Thailand, China and Dubai.
Tourism brands had to think smarter and start advertising
products and experiences that could only be enjoyed in Australia,
such as health tourism, cultural heritage and indigenous tourism,
he said.
Mr Hingerty said rising costs of labour, food and beverages and
an increasing tax burden on inbound tour operators were also biting
and governments needed to give some “love and affection”.
“It’s okay for the (tourism forecasting) committee to throw
those numbers out there and they’re admirable … but the people
have to understand that it’s not just about marketing Australia and
the numbers will turn up,” he said.
Mr Brown agreed, saying the federal government needed to keep a
watchful eye on the industry to ensure the right climate existed
for growth.
He said there was currently a lack of investment in hotels and
new attractions, complex and lengthy planning processes and skills
and labour shortages.
“The tourism industry needs to take a long, hard look at itself
now and work out how it’s going to welcome 8.9 million overseas
visitors and lay the bed for a profitable and sustainable
industry,” Mr Brown said.
But it was not all doom and gloom, with figures showing record
spending by the affluent tourists Australia targets.
And increased routes into major cities and bigger aircraft
signalled by Qantas, Emirates, Etihad, Qatar Airways, Tiger Airways
and Air Asia X are expected to bring more big-spending tourists
from the Middle East.
The trend is something that new federal Tourism Minister Martin
Ferguson hopes will continue as the Rudd government assesses its
new policies for international marketing and target countries.
“The Australian tourism market, through their efforts in
providing world-class tourism experiences, have built the platform
to take advantage of the strong growth in international tourism,”
Mr Ferguson told AAP.
But he acknowledged the role the government needed to play to
ensure the right climate existed for growth.
He said he hoped the government could also work to lift the
pressure on family budgets to alleviate stresses on the domestic
market.
Changing industrial relations legislation to create better job
security would also allow more Australian to take the traditional
family break, he said.
“We must also recognise the importance of families being able to
take holidays together,” he said.
Only time will tell whether the new government will be able to
drive growth of the multi-billion-dollar industry and sustain
Australians’ love affair with their own shores.
AAP
Tags: consumer spending, director chris, minis, rta, showcase, target0
