Tourism Confidence Down

New Tourism & Transport Forum (TTF) research released today shows a severe lack of confidence in the tourism industry for the October-December quarter.
The TTF Quarterly Sentiment Survey shows nearly two thirds of respondents rated overall tourism industry performance for the October to December period as âworseâ or âmuch worseâ than expected at this time of year.
TTF Executive Director Olivia Wirth said the drop in confidence is understandable in the context of the global financial crisis.
âWhen times are tough, the first thing people cut back is discretionary spending, and that includes holidays,�? Ms Wirth explained, adding âthis is obviously a concern for the 483,000 Australians who work in the tourism sector.
âMore than half of the businesses surveyed said forward bookings were âworseâ or âmuch worseâ than normal for this time of year.
âThereâs a fair degree of pessimism looking ahead as well, with numerous operators raising concerns about tourism activity in the first half of 2009.
âThere are clearly worries about the impact of the global financial crisis on international visitor numbers, especially from key markets like the UK and the US, with business and leisure travellers alike delaying their decisions.
âThis lack of confidence is also having flow-on effects in terms of product investment, refurbishment and the capacity to take on staff, all of which will have a negative impact on the overall economy.
âThe industry has also identified major events as an area which needs more investment, with less than half rating the current events calendars as âgoodâ or âvery goodâ.
âTourism attractions are another area some believe needs attention, with 1 in 6 rating them âpoorâ or âvery poorâ, while a similar number also described the availability of convention, exhibition and conference space as âpoorâ or âvery poorâ.
âA number of respondents to the survey have called for more funding for events and marketing, as well as increased investment in infrastructure and product development, to ensure the industry is ready to capitalise when world financial markets recover.�?
Ms Wirth said the effect of the global financial crisis could be mitigated by focussing on domestic tourism.
âIn recent years, Australians have been going overseas in record numbers, but with the current economic uncertainty and the sharp fall in the Australian dollar, we could see a shift back towards holidaying at home, which could help alleviate the impact of the economic slowdown,�? Ms Wirth stated, concluding, âbut that canât be left to chance. We need to actively encourage more Australians to holiday at home, and that requires governments to provide additional funding to promote tourism, especially considering the expected downturn in the number of international visitors.�?