Tourism must focus on growth markets

The Tourism Forecasting Committee half yearly report on the state of the industry has given a clear indication on the growth markets the sector must target in the short to medium term, according to Australian Tourism Export Council Managing Director Felicia Mariani.
The just released report confirms that emerging and developing economies such as China and India will continue to provide our strongest tourism growth market, while the long term tourism consumption rate has been forecast downwards to $106.7 billion in 2020 from previous predictions of $110.5 billionn.
Mariani explains "these findings reveal a clear path for the tourism industry over the short to medium term indicating a need to focus our efforts on building and growing markets from across the Asia-Pacific region.
"Markets such as China, South Korea, Malaysia, Singapore and India all had stronger than expected growth in 2010 and they continue to perform strongly this year, providing a signal the industry can't ignore."
The report found economic performance of the Asia-Pacific region was stronger than expected with upward revisions in visitor arrivals including:
ï¾ China, with 571,000 arrivals now forecast (growth of 25.8%, rather than 21.9%);
ï¾ Singapore, with 323,000 arrivals now forecast (growth of 4.9%, rather than 3.7%);
ï¾ Malaysia, with 251,000 arrivals now forecast (growth of 5.8%, rather than 5.7%); and
ï¾ India, with 153,000 arrivals now forecast (growth of 10.4%, rather than 8.4%).
Mariani added "Australia provides the closest 'Western' experience for many of these countries and we must take advantage of our relative proximity in attracting these visitors.
"At the same time, we must develop products that meet the needs of Asian visitors including in-language services, well tailored packages and unique and authentic 'Australian' experiences."
Mariani noted the report downplays the effect of the high Australian dollar on the inbound tourism market saying it had a 'relatively modest' and short term impact on the industry, stating "while visitors may find the costs of being here a little more expensive, the high dollar does not seem to be having a significant impact on the decision to travel to Australia.
"The reality is that Australia remains a much sought after travel destination and visitors will continue to come here regardless of the on-the-ground costs.
"It's up to our industry to provide the experiences that encourage these visitors to reach further into their pockets once they get here."
Mariani represents ATEC on the Tourism Forecasting Committee, which is administered by the Department of Resources Energy and Tourism and Chaired by Bernard Salt of KPMG.
The TFC forecasts are available for download from Tourism Research Australia's website

http://www.ret.gov.au/tourism/tra