ATEC said the decision to cut more than $50 million from Tourism Australia’s budget over the next four years, combined with a further $10 increase to the Passenger Movement Charge, sends the wrong message to an industry worth around $40 billion in export value.
Managing Director Peter Shelley said the inbound tourism sector was still stabilising after the pandemic and was now facing renewed pressure from rising aviation costs, affordability concerns and softer booking conditions linked to instability in the Middle East.
Recent international arrivals data showed holiday visitation momentum had begun to weaken in March, with travellers becoming more cautious about long-haul travel expenses and global uncertainty.
According to ATEC’s latest member pulse survey, 57 per cent of tourism exporters identified traveller hesitation as the biggest emerging risk to their businesses and distribution networks. While confirmed short-term itineraries remain relatively stable, forward demand sentiment is beginning to soften.
Shelley said international interest in Australia remained strong, but converting that interest into confirmed bookings was becoming increasingly difficult in a more price-sensitive travel environment.
ATEC is urging the Federal Government to treat tourism marketing as a strategic export investment rather than a discretionary cost-saving measure, warning that reduced funding risks weakening Australia’s competitiveness against other destinations as global travel markets continue to recover.
The organisation also called for stronger support for aviation affordability and long-term tourism growth as competition for international visitors intensifies worldwide.
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