• Victoria Tourism Industry Council (VTIC)
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VTIC INDUSTRY SURVEY SNAPSHOT: BUSINESSES INDICATE OVERALL DOWNTURN IN CONDITIONS

23 /08/ 2012 Comments are Closed

Tourism businesses experienced a decline in conditions through the May quarter and have become less optimistic about the year ahead, the latest VTIC Survey of Tourism Performance and Outlook reveals.

A net 13 per cent of respondents to the survey reported a downturn in general business conditions, with 45 per cent indicating a decline in profitability. This may be linked to wages and labour costs, with 29 per cent of businesses surveyed reporting a rise in average wages and 45 per cent indicating non-wage labour costs had increased. This came despite reported falls in both employment levels and overtime during the quarter. Nine per cent indicated a decline in sales.

Overall, 42 per cent of respondents felt that their business was currently operating satisfactorily, down from 61 per cent in the previous quarter.

Business taxes, government charges and wages costs were rated as a significant or critical constraint by 46 and 44 per cent of respondents respectively, followed by local government regulations and business/consumer confidence. Significantly, less than one-third of respondents viewed exchange rate appreciation as a constraint on business, perhaps an indication that businesses have adapted to the high Australian dollar and accepted this as the new norm.

Similar to the previous quarter, 56 per cent of respondents also felt that insufficient international demand was not a constraint on their business. This reflects the results of the International Visitor Survey for the period ending March 2012, which showed that international overnight visitor estimates to Victoria increased by 5.5 per cent to 1.77 million. The greater concern is the stagnation of the domestic market.

The longer term outlook is less optimistic than in the previous quarter, with just a quarter of respondents expecting generally stronger business performance over the next 12 months (compared with 38 per cent in the February quarter). Meanwhile, 44 per cent of respondents expect a generally weaker performance in the year to come, compared with just 20 per cent of respondents holding this view in the previous quarter.

To see the results of the May quarter VTIC Survey of Tourism Performance and Outlook in full, click here.

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

may

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

june

06jun6:00 pm8:00 pmVTIC 2018 Mixer Series - June Tourism Networking EventConnect and reconnect at our monthly mixers6:00 pm - 8:00 pm SEA LIFE Melbourne Aquarium

08jun12:00 pm2:30 pmVictorian Chamber presents: The Hon Julie Bishop MP12:00 pm - 2:30 pm Melbourne CBD

13jun5:30 pm8:00 pmVictorian Chamber presents: Fast Forward Speed Networking5:30 pm - 8:00 pm RACV City Club

14jun9:00 am10:30 amVictorian Chamber presents: Workplace update - are your casuals really casual?9:00 am - 10:30 am Best Western Hovell Tree Inn

july

04jul6:00 pm8:00 pmVTIC 2018 Mixer Series - July Tourism Networking EventConnect and reconnect at our monthly mixers6:00 pm - 8:00 pm SEA LIFE Melbourne Aquarium

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

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

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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