Australian tourism slows on global downturn

Tourist arrivals to Australia in 2009 are predicted to be the lowest since 1989.

Travel Insurance News - 01/01/2009

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The number of inbound tourists is expected to decrease by 4.1 per cent in 2009, due to the economic recession impacting Australia’s main tourist markets - New Zealand, Japan, Britain and the US - according to a new report issued by Tourism Australia.

“Tourism operators who are heavily reliant on international tourism are in for a tough time in 2009,” noted Bernard Salt, who is the chair of Tourism Australia’s Forecasting Committee. He added that arrivals from Japan are likely to fall by 30 per cent.

In the 15 years leading up to 2005, tourism to Australia grew by 250 per cent. In the years since then, it has levelled off and is now in decline. The drop in the tourism sector weighs heavily on a country that sees annual earnings of around A$20 billion from the sector, which is more than from any other industry excepting minerals and coal.

Matt Hingerty, the managing director of the Australian Tourism Export Council, said: “The Rudd government needs to act now to protect jobs.” In his emailed statement, he added: “The tourism industry is staring down the barrel at a situation which is just as, if not more serious, as that which faced the automotive or mining industries.”

Full-year figures for 2008 tourist arrivals are anticipated to show a decline of 1.5 per cent. It is expected that the sector will rebound by 2010, with a rise in that year of 5.3 per cent, according to the report.

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