Instead of trying to return to pre-pandemic norms, the travel industry should instead focus on new opportunities, Minister for Trade and Tourism, Senator Don Farrell, told attendees at Travel Daily’s Travel24 conference.
During his keynote speech, ‘The View from Canberra: What’s on the horizon for the travel industry?’, Farrell said the best way to grow int’l visitation above and beyond pre-COVID levels is to hone in on new and emerging markets in Southeast Asia and India.
Austrade is currently working on a visitor economy diversification strategy to attract high-yielding international travellers from a wide range of markets, Farrell revealed.
He also highlighted the government’s $9 million Reviving International Tourism Grant Program, which will directly support tourism businesses to return to international industry events.
“We need to be open to new opportunities, because the international market is highly competitive, and there is no single solution to growing our international visitor numbers.”
The industry is already well on the road to recovery though, with growth in total visitor spend projected to average 6% a year over the next five years.
Total short-term visitor spend in Australia is forecast to reach $223.3 billion in 2028 – 61% above 2019 levels – while international visitor spend in Australia reached $28 billion in 2023, up 121% on the prior year.
In order to keep growing these numbers, Farrell emphasised the importance of catering to consumer trends, particularly the increasing demand for accessible and sustainable tourism offerings.
Accessibility presents a ripe opportunity for tourism businesses, given that people with disability needs and those travelling with them accounted for around 21% of total domestic tourism spend in the Jun 2023 quarter, Farrell revealed.
Turning the discussion to sustainability, Farrell cited recent Booking.com consumer research which showed that 75% of travellers are looking to travel in ways that help the environment.
“Sustainability will be essential for the future success and competitiveness of Australia’s visitor economy…so, Australian businesses can benefit by adapting and taking action to operate more sustainably,” he stated.
Farrell concluded his address by thanking the trade, acknowledging that, “industry is nothing without each and every one of you, who dedicate your time, energy and effort to ensure visitors, both from home and abroad, have the adventure of a lifetime”.
