• 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

august

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

22aug5:30 pm8:00 pmVictorian Chamber Presents: Fast Forward Speed Networking5:30 pm - 8:00 pm

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

11sep5:45 pm7:30 pmVictorian Chamber presents: Business After Dark5:45 pm - 7:30 pm Melbourne Convention and Exhibition Centre, Goldfields Café and Bar

12sep1:30 pm3:30 pmDestination Melbourne presents: Tapping into Tourism- September1:30 pm - 3:30 pm Hobsons Bay Civic Centre

21sep12:00 pm2:00 pmVTIC Premium Member Lunch with Helen SawczakConnect and reconnect at our monthly mixers12:00 pm - 2:00 pm Angliss Restaurant

26sep11:30 am4:00 pmVictorian Chamber and Pitcher Partners presents: Grand Final Lunch11:30 am - 4:00 pm Olympic Room, MCG

october

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

22oct12:00 pm2:00 pmVTIC Premium Member Lunch with Lyell StrambiConnect and reconnect at our monthly mixers12:00 pm - 2:00 pm Angliss Restaurant

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

28nov4:30 pm6:00 pm2018 VTIC Annual General MeetingConnect and reconnect at our monthly mixers4:30 pm - 6:00 pm VTIC Offices, Level 3

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