The latest Inbound Tourism Pulse found that 64% of tourism operators predicted demand to decrease from Jul onwards, driven by cost-of-living pressures in key markets (35%), reduced confidence in international travel (19%), and challenges around converting demand (16%).
Meanwhile, 65% of survey respondents reported concerns around future fuel supply and pricing, as well as increasing Australian flight fares.
“This is not a collapse in demand, people still want to come to Australia, but they are taking longer to commit and are more sensitive to price and global conditions driven by the Middle East conflict,” ATEC managing director Peter Shelley explained.
“That hesitation is now flowing through to forward bookings, and that’s where our members are starting to see less certainty.”
Despite the concerning survey results, the report also found that 79% of tourism businesses are confident in their ability to deliver, with plenty absorbing increasing operational costs and adjusting schedules, Shelley said.
Shelley also noted that in order for the Australian inbound tourism sector to navigate its way through this period of global uncertainty, “staying visible in the market and being competitive on price” will be critical.
“That makes sustained investment in international marketing, including Tourism Australia, more important than ever,” he added.
