• Victoria Tourism Industry Council (VTIC)
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High wages, lower prices a tough challenge for tourism sector

16 /02/ 2017 Comments are Closed

The latest Survey of Business Trends and Prospects has revealed the tourism sector faced a slowdown in customer demand, forcing selling prices down which, combined with high wages, made it the least optimistic peak season in years.

The survey of 378 businesses, 70 in the tourism and retail sector, showed the fourth quarter of 2016 was a frustrating period for many.

Victoria Tourism Industry Council Chief Executive Brad Ostermeyer said despite the survey period coinciding with the peak summer season, the tourism and recreational sector was notably the least optimistic about conditions for the year ahead, with 29 per cent expecting a weakening of the State’s economy.

“The reason for this negative sentiment is due to a damaging combination of high wages and lower selling prices, which considerably affects profitability. Some of the businesses said they were frustrated by difficulties in attracting trainees and apprentices and others noted a slowdown in customer demand,” he said.

Many survey respondents from the tourism and recreational services sector reported stagnant international visitation in the December quarter. This appears in line with the September quarter results from Tourism Research Australia’s International Visitor Survey which showed that although international visitors, nights and expenditure for Victoria continued solid growth, the pace of growth had softened. Moreover, spend growth for the period lagged behind the national average and key competitors.

“These results show the importance of workplace relations and other regulatory reforms that will ease the cost of doing business, as well as the need to stimulate demand and visitation through strong investment programs and marketing campaigns,” Mr Ostermeyer said.

As Victoria’s State Budget approaches in May, VTIC is calling for significant funds for interstate and intrastate marketing campaigns and ongoing funding for Regional Events, Business Events, and tourism infrastructure development.

VTIC

About the Author

VTIC

The peak body for Victoria's tourism and events industry, VTIC represents key industry associations and operators, with over 1400 members.

Events

july

20jul9:00 am11:00 amVictorian Chamber presents: ignite+VU9:00 am - 11:00 am MCG

30jul(jul 30)8:00 am31(jul 31)3:30 pmVictorian Tourism Conference 201830-31 July, Cape Schanck8:00 am - 3:30 pm (31) RACV Cape Schanck Resort

august

01aug5:30 pm7:30 pmVTIC 2018 Mixer Series - August Tourism Networking EventConnect and reconnect at our monthly mixers5:30 pm - 7:30 pm DoubleTree by Hilton Melbourne

15aug6:00 pm8:00 pmYoung Tourism Network presents: Grow and Glow6:00 pm - 8:00 pm Victoria University

22aug(aug 22)9:00 am24(aug 24)1:30 pmFeatured2018 Victorian Visitor Information Services (VIS) Summit9:00 am - 1:30 pm (24) Capital Theatre

28aug9:00 am12:00 pmDestination Melbourne presents: Transformative Technology Workshop9:00 am - 12:00 pm Citadines on Bourke

september

05sep5:30 pm7:30 pmVTIC 2018 Mixer Series - September Tourism Networking EventConnect and reconnect at our monthly mixers5:30 pm - 7:30 pm DoubleTree by Hilton Melbourne

11sep9:00 am5:00 pmDestination Melbourne presents: The Exchange9:00 am - 5:00 pm

october

16oct6:30 pm8:00 pmYoung Tourism Network presents: Emotional Intelligence with Mel Neil6:30 pm - 8:00 pm Victoria University

november

22nov6:00 pm11:00 pm2018 RACV Victorian Tourism Awards – Gala CeremonySave the Date6:00 pm - 11:00 pm Palladium at Crown Dress Code: Black Tie

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