Tourism vital to Australian economy

Australia's tourism businesses contribute immensely to the nation's economy, despite the number of businesses falling last year, according to new research.

Tourism Research Australia's just released 'Tourism Businesses in Australia' report, covering the period from June 2010 to June 2012, shows that there were approximately 280,000 tourism businesses in Australia in June 2012.

These businesses represented 13% of Australia's 2.1 million businesses.

Introducing the report, Tourism Research Australia Chief Economist Dr Leo Jago explained "while the number of tourism businesses fell by 2,900 (or 1%) in June 2012, their contribution to tourism's gross value added per business increased by around 13%."

The report identifies that more than 90% of tourism businesses are small possessing between one and 19 employees.

However, medium to large businesses (10% of tourism businesses) generate more than two thirds of total overall revenue.

Dr Jago added "this reminds policymakers and industry that tourism businesses large or small, play a significant role in the economy."

The report also revealed that growth in tourism businesses was generally limited to Melbourne and Sydney between June 2010 and June 2012, while regional areas across all states suffered a decline.

Meanwhile, the outlook for the Australian tourism industry has been upgraded according to Tourism Research Australia's new Tourism Forecasts.

While Tourism Forecasts shows that Australians continue to head overseas in record numbers, international visitor arrivals are forecast to grow 5.8% in 2013/14 to 6.6 million, while domestic visitor nights are forecast to increase by 2% in 2013/14 to 293 million.

Commenting on these figures, Dr Jago stated "the fall in the Australian dollar is expected to lead to increased inbound tourism and reduce the growth in outbound tourism, which should benefit the domestic market."

Australian Tourism Export Council (ATEC) Managing Director Felicia Mariani added "these improved projections in visitation, coupled with an increase in forecasted expenditure value to $29 billion in 2013-14, sets the industry up for a record performance this year.

"This is a significant and strong achievement for our industry. With high levels of growth out of new markets in Asia, supported by the rebounding performance from our traditional markets, the tourism industry has finally secured a positive path for growth."

Tourism & Transport Forum (TTF) Chief Executive Ken Morrison, said the latest tourism forecasts reinforced the potential for tourism to be an economic development strategy for Australia, concluding "tourism already directly employs more 532,000 people in more than 280,000 businesses across Australia but we have the chance to grow this contribution even further.

"The mining boom may be waning, but the people boom out of Asia is just beginning and the right investment in demand-driving infrastructure and tourism marketing can help Australia maximise the opportunities of the burgeoning global travel sector."

Image: Felicia Mariani 

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