No job, no worries: backpacker market booming

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This was published 14 years ago

No job, no worries: backpacker market booming

People may be holidaying less because of the global financial crisis but it's not all gloom and doom for the tourism industry.

The Australian Tourism Export Council (ATEC) says the economic crisis has led to a sharp spike in the number of backpackers heading to our shores.

"The backpacker market is absolutely booming, we've seen visa applications up by 20 per cent out of Germany and Britain alone, and those figures are translating into business" ATEC managing director Matt Hingerty told AAP on Thursday.

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"Young people are saying there's no jobs, bugger it, I'm off, and the tourism industry is taking advantage of it."

Tourists also seem to be taking advantage of the heavily discounted airfares, and the $900 federal government cash bonus, he said.

Around 300 tourism operators will meet in Darwin this coming week to discuss the state of the industry at the annual ATEC conference.

Despite the boom in budget holiday makers, the local tourism industry, which employs more than 500,000 people, is set to decline this year.

The number of tourists coming to Australia is predicted to fall by at least 250,000, representing a loss of around $1 billion.

But Mr Hingerty says the industry is well-equipped to bounce back.

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"The industry's been through SARS, September 11, the collapse of Ansett, and the Bali Bombings, and we have learned and got better at recovery every time," he says.

"We also know that when the economy lifts again tourists usually come back in a rush.

"At Christmas time last year the industry was in a panic and predicting gloom and doom, but there is optimism out there".

Federal Tourism Minister Martin Ferguson, who will address the conference, says 2009 will be an extremely challenging year for the tourism industry.

"But we are already seeing the industry adjust to the conditions in which they are operating."

The government's $900 cash stimulus payments and campaign to encourage Australians to use tier annual leave by holidaying locally had already helped.

"While the $900 workers bonuses will not be paid in full until May 16, industry is already indicating that the stimulus package is assisting."

The government has also launched an $8.5 million grant program to support tourism innovation.

The ATEC conference will be held on April 29-30.

AAP

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