Australian domestic tourism spending hits record, but we're still keen on overseas

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This was published 9 years ago

Australian domestic tourism spending hits record, but we're still keen on overseas

By Jamie Freed

The Australian tourism industry continues to struggle to convince travellers to have a holiday at home, with new figures showing the rate of growth for overseas holidays was four times higher than for domestic holidays in the last financial year.

Tourism Research Australia on Wednesday released its latest domestic visitor survey, which showed spending reached a record high of $53.3 billion in the financial year ended June 30, with the 4 per cent growth driven in large part by a 7 per cent increase in spending by travellers visiting friends and relatives rather than taking a pure holiday.

That follows last week's international visitor survey, which reported international spending had risen by 7 per cent to $30.1 billion in the last financial year.

Tourism Research Australia strategic research manager Tim Quinn said the combined figure of $83.4 billion was a "great result" for the Australian tourism industry, which has targeted $115 billion to $140 billion of spending by 2020.

"However, we need to be mindful of lost opportunities," he said. "While the domestic tourism sector is the industry's bread and butter, responsible for three-quarters of tourism's $42 billion contribution to the economy, Australians' preference for overseas holidays continues."

Domestic holiday trips rose by 2 per cent last year but the number of nights fell by 2 per cent, leading to a flat spending result.

Overseas holiday travel, by contrast, rose by 8 per cent to 5.4 million in the year to March 2014, more than double the 2.2 million that took overseas trips in the year to March 2006. However, the growth was from a smaller base given there were 33 million domestic overnight holiday trips.

"While growth in overseas holidays remains solid, assisted by a stubborn Australian dollar, this is expected to moderate with some switching of demand toward domestic holiday travel," Mr Quinn said.

But with international airfares at record low levels, travel agents like Flight Centre Travel Group do not expect a fall in demand for overseas trips.

"The prices and affordability is exceptional and extraordinary and this will continue to drive growth," Flight Centre managing director Graham Turner said last month.

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Domestic travel spending fell in Queensland, Tasmania and the Australian Capital Territory last year but rose in the other states and territories.

The number of domestic visitors staying in hotels fell by 5.5 per cent in Queensland last year.

Only four regions in the popular holiday state managed to increase total domestic and international visitor numbers, including the Sunshine Coast, Townsville, Whitsundays and Brisbane.

Tourist numbers on the Gold Coast fell despite the high-profile launch last year of a $15 million marketing campaign designed to boost visitors to theme parks, which is jointly funded by the Queensland government and theme park operators.

Sunshine Coast Destination chief executive Simon Ambrose said a 4.6 per cent increase in domestic and international visitors to his region was even more impressive given it was achieved without a vast investment in advertising campaigns.

"Over the past year there has been a complete regeneration of Sunshine Coast Destination, with every area reviewed, revised and upgraded, and the results are now becoming apparent," Mr Ambrose said.

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