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

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

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

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