• Victoria Tourism Industry Council (VTIC)
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Lukewarm trading through summer peak a concern for the tourism sector

27 /04/ 2017 Comments are Closed

The latest Survey of Business Trends and Prospects has revealed the tourism sector experienced mixed trading conditions during the peak holiday and events period. More than a quarter of respondents reported a decline in domestic sales and almost one-third reported a decline in profitability.

Victoria Tourism Industry Council Chief Executive Brad Ostermeyer said the soft domestic sales results and flat exports are a real concern, particularly as the March quarter is the busiest event period.

“The recent National Visitor Survey results for last year highlighted the stagnation in interstate visitor numbers and expenditure. Our own survey results, unfortunately, confirm this trend. A significant boost to the state’s new tourism organisation is required to reverse this worrying trend,” he said.

As in the December quarter, respondents from the tourism and recreational services sectors reported poor profitability. This can be attributed in part to high wage costs, but also increases in energy prices. The special question in the March quarter survey, relating to energy, showed these sectors were, along with manufacturing, the hardest hit by energy price hikes.

The volatility of energy market prices weighs heavily on businesses in the tourism sector, with more than one in four experiencing difficulties in obtaining competitively priced supplies in the past 12 months.

Mr Ostermeyer noted that one positive result of the survey was that the tourism businesses have continued to invest in their business. “These businesses should be applauded for taking a longer term outlook and making these investments. But if they are to succeed in the long term, it is important that we drive demand to their businesses, through targeted marketing campaigns, and through government investment in key attractions, events and tourism infrastructure,” said Mr Ostermeyer.

Ahead of the State Budget in May, VTIC is calling for significant funds for interstate and intrastate marketing campaigns and ongoing funding for Regional Events and Business Events.

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.

Media Manager:

Media enquiries: media@victorianchamber.com.au,

Anne Wright, Media and Communications Manager, (03) 8662 5310 / 0423 883 945

Ellana Katos, Social Media and Communications Advisor, (03) 8662 5205 / 0400 976 889

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

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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

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october

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

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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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