• Victoria Tourism Industry Council (VTIC)
  • fb_icon
  • li_icon
  • tw_icon
  • yt_icon

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 voice of the Victorian tourism industry, representing key industry associations, operators and government agencies.

Events

february

28feb9:00 am3:00 pm2018 VTIC Visitor Economy Forum & Tourism Australia Industry Briefing9:00 am - 3:00 pm Melbourne Convention and Exhibition Centre

march

07mar5:30 pm7:30 pmVTIC 2018 Mixer Series - March Tourism Networking EventConnect and reconnect at our monthly mixers5:30 pm - 7:30 pm Novotel Melbourne St Kilda

15mar9:30 am5:30 pmTourism Australia's Destination Australia Conference 20189:30 am - 5:30 pm The Glasshouse

15mar5:45 pm7:30 pmVictorian Chamber presents: Business After Dark5:45 pm - 7:30 pm Roc's Bar

19mar9:00 am11:00 amDestination Melbourne presents: Tapping into Tourism9:00 am - 11:00 am Willis Room, Whitehorse Civic Centre

21mar10:30 am11:30 amVTIC Webinar Series: PR for Tourism Businesses - Telling your storiesImproving the world, one webinar at a time!10:30 am - 11:30 am

23mar7:45 am10:00 amVictorian Chamber presents: Grand Prix Breakfast7:45 am - 10:00 am Albert Park

april

04apr5:30 pm7:30 pmVTIC 2018 Mixer Series - April Tourism Networking EventConnect and reconnect at our monthly mixers5:30 pm - 7:30 pm Mercure Melbourne Treasury Gardens

18apr10:30 am11:30 amVTIC Webinar Series - Risk Management 101Improving the world, one webinar at a time!10:30 am - 11:30 am

may

02may5:30 pm7:30 pmVTIC 2018 Mixer Series - May Tourism Networking EventConnect and reconnect at our monthly mixers5:30 pm - 7:30 pm Mercure Melbourne Treasury Gardens

31may9:00 am5:00 pmDestination Melbourne presents: Melbourne LIVE9:00 am - 5:00 pm Arts Centre Melbourne - The Pavilion

july

30jul(jul 30)8:00 am31(jul 31)3:30 pmVictorian Tourism Conference 2018SAVE THE DATE8:00 am - 3:30 pm (31) RACV Cape Schanck Resort

X