Positive tourism outlook but doubt persists over targets

Confidence among Australia's tourism operators is improving, according to the latest edition of the TTF-MasterCard Tourism Industry Sentiment Survey - but doubts remain about whether the targets included in the Tourism 2020 strategy are achievable.

The survey has found the tourism sector enjoyed better than expected conditions during the final quarter of 2011 and over the Christmas-New Year holiday period, while expectations about the current quarter have also risen.

Tourism & Transport Forum (TTF) Chief Executive John Lee said the improvement is a positive sign, stating "while still below average, operators are telling us that things are looking up for both domestic and international tourism for the first time in two years.

"Considering 85% of respondents nominate the strength of the Australian dollar as having a medium or high impact on their business, affecting spending by international visitors and fuelling demand for overseas travel by Australians, that's a good result.

"This reflects the strong growth in arrivals from China and other Asian countries, and better than expected domestic tourism activity."

However, Lee added the survey also uncovered some concerns about the longer term, continuing "the Tourism 2020 strategy identifies four key constraints facing the industry and sets targets which will need to be met to reach the overall goal of doubling overnight tourism expenditure to $140 billion by 2020.

"But only one - lifting domestic aviation capacity - received a positive response from a majority of operators surveyed.

"The majority of respondents are sceptical that the other three targets - accommodation supply, international aviation capacity and labour force - are achievable, putting the ultimate goal out of reach.

"The industry would like to see interim goals set so we can measure the progress towards addressing those key constraints.

"With the deadline for the overall goal of increasing overnight tourism spending to $140 billion less than eight years away, it's critical that this begins sooner rather than later.

"Also, while supportive of the six strategic areas named in the Tourism 2020 strategy, respondents raised a number of additional areas of concern, including:

• Improving tourism product;
• Government support for business and major events;
• Flexible labour arrangements; and
• Reducing red tape.

"While we appreciate that the Tourism 2020 strategy is still in its early stages, the survey reveals concerns among industry representatives about the progress being made on the strategic priorities."

Image courtesy of Melbourne Convention and Exhibition Centre.

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