Labour costs set to slow Victoria’s tourism sector

The Victoria Tourism Industry Council (VTIC) is predicting that the state’s tourism and recreation sector will take a hit later this year from easing domestic and international sales.

Commenting on a survey of tourism businesses VITC Chief Executive Diane Smith said that while almost a third of respondents reporting a rise in export activity, the latest snapshot of tourism business trends and prospects shows a lacklustre outlook for the third quarter of 2016

Smith (pictured) said that while sales are likely to slow, labour costs will continue to rise, putting pressure on the profitability of many tourism businesses.

Smith stated “these trends are likely to be due in part to the winter off-peak season which is often reflected by lower expectations from many in the tourism sector.

“There are longer term issues though, as many in this sector said they continue to be hamstrung by penalty rates and inflexible labour laws.”

The survey of 380 Victorian businesses by the Victorian Chamber of Commerce and Industry found workplace relations reform was a particularly important federal election issue to the tourism and recreational sector.

Smith said that as Victoria heads towards another summer season, the tourism and recreation sector should look to increase even further the record growth it experienced the year before.

She concluded “Victoria is well and truly on the global stage as a destination of choice for many international visitors, recording growth well above the national average.”

The VTIC’s 2016 Victorian Tourism Conference is being held in Bendigo next week.

Click here to view event details in the Australasian Leisure Management industry Calendar.

5th July 2016 - TOURISM TRENDS TO BE EXPLAINED AT THE 2016 VICTORIAN TOURISM CONFERENCE

24th June 2016 - OUTGOING VTIC CHAIR ACKNOWLEDGED FOR LONG STANDING CONTRIBUTION

28th October 2015 - BENDIGO TO HOST 2016 VTIC TOURISM CONFERENCE

8th September 2011 - TOURISM NEEDS LABOUR AND SKILLS