Tourism in Massive Downturn

Domestic tourism endured a "horror" final quarter of 2008 with the latest National Visitor Survey data underscoreing the need for ongoing promotion of and investment in domestic tourism, according to analysis by peak national body Tourism & Transport Forum (TTF).

TTF Executive Director, Olivia Wirth, said the number of domestic visitor nights in Australia during the December Quarter fell seven% on the same period in 2007.

As Wirth explained, "these numbers are of deepest concern to us, because we had previously been expecting domestic tourism to sustain the industry as inbound international numbers fall.

"Even allowing for the usual fluctuations in sample surveys, data clearly show that those destinations furthest away from Australiaâs main population centres are suffering â with falls in interstate travellers to Western Australia, Northern Territory, Queensland and Tasmania above the average."

Data show that holiday travellers for the quarter fell 2.9%, with holiday visitor nights down 9.2%.

Wirth added "this suggests that holiday travellers are still inclined to travel domestically, but they are cutting the length of time they are away and tending to holiday closer to home."

Business travel numbers fell 4.0% and business nights fell 4.9% respectively.

The December Quarter concludes a poor 2008 for domestic tourism, in which total visitors fell 4.5% and total visitor nights fell 5.8%.

Wirth continued "total domestic visitor nights in 2008 hit easily their lowest level over the past decade.

"Indeed performance over the past 12 months fell 27 million visitor nights short of the 2005 record high â a huge blow to tourism operators both large and small."

The survey showed that total overnight expenditure for the year increased by around 2%, although this was mainly the consequence of a bumper first quarter.

Late this month, Tourism Australia is expected to launch a domestic tourism campaign encouraging Australians to take their unused leave.

Wirth concluded "business groups and the tourism industry must get behind the campaign to entice people who can, to take some of their accrued leave.

"The opportunity is there to help stimulate demand in the domestic tourism market and there are great holiday options available across the country.

"After a poor 2008, tourism operators are hoping that the first quarter of 2009, traditionally the most active for the domestic market, shows considerable improvement."