Near Double Digit Slump in Domestic Tourism

Domestic tourism suffered a decline of 9.9% in visitor nights for the first half of 2009, according to analysis of the latest National Visitor Survey data by peak national body, Tourism & Transport Forum (TTF).
Tourism Research Australia has this week released the June 2009 quarterly results of the National Visitor Survey, which show that fewer Australians are choosing domestic destinations.
TTF Managing Director Christopher Brown said the downturn in domestic travel has cost thousands of jobs, stating âAustraliaâs tourism industry has been hit hard by the global financial crisis and these figures are just the latest in a long line of evidence.
âA fall of 9.9% in the number of nights Australians have spent away from home travelling in Australia is disastrous, considering that domestic tourism accounts for almost three-quarters of the industry.
âThe worst impact is job losses in regional areas, especially in Queensland where visitor nights have plummeted by 12.8% compared to the first six months of 2008.
âThis has seen unemployment at around 10% in Far North Queensland, while youth unemployment in that region has surged at an even faster rate.�?
Brown said local destinations are increasingly competing with overseas locations.
âThe number of Australians travelling domestically fell 9.3% in the six months to the end of June compared to last year while, in stark contrast, the number of people heading overseas during the same period grew by 1.3%.
âOf even greater concern is the massive surge in outbound travel we saw in July as Australians took advantage of new air capacity and cheap airfares.
âThis growth in international airline capacity is a challenge that Australiaâs domestic tourism industry will be facing for years to come.
âWe simply canât afford to take domestic tourism for granted in the face of such intense competition for Australiansâ travel dollars and this emphasises the need for ongoing investment in tourism infrastructure and domestic tourism marketing to encourage people to holiday at home.
âWhile the various state governments have ramped up their tourism marketing, the Federal government has not yet seen fit to make a serious contribution to help turn around the industryâs flagging fortunes.
âWe estimate at least 20,000 direct tourism jobs have been lost as a result of the downturn.
âWeâre calling for the Federal Government to put up $40 million in emergency tourism marketing funding â to be matched by industry â to promote Australia both at home and abroad as a place to travel for business, employment and leisure.�?
Brown said overall tourism spending fell 5.6% for the first half of 2009 compared to 2008.
âBudget cuts have seen business travel expenditure fall a staggering 20.0%, off the back of a 15.6% drop in business visitor nights.
âSpending by holiday visitors is down 11.3%, with holiday nights down 7.6%, indicating that consumers are opting for more affordable alternatives.�?