Tourism in Australia Industry Market Research Report Now Updated by IBISWorld

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Tourism in Australia is a near $100 billion industry that has fallen on tough times. The global financial crisis resulted in international travellers from traditional markets staying home, while record numbers of Australians took advantage of the high dollar to head overseas. This combined with aggressive airline discounting is expected to result in industry revenue declining over the past five years. For these reasons, industry research firm IBISWorld has updated its report on the Tourism industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Increasing visitor numbers from Asia are expected to offset decreasing domestic travel

Tourism in Australia is a near $100 billion industry that has fallen on tough times. The global financial crisis resulted in international travellers from traditional markets staying home, while record numbers of Australians took advantage of the high dollar to head overseas. This combined with aggressive airline discounting is expected to result in industry revenue declining at an annualised 1.5% over the five years through 2012-13, to total $95.9 billion. This includes an expected decline of 1.6% in 2012-13. Domestic tourism accounts for the majority of industry revenue. According to IBISWorld industry analyst Naren Sivasailam, “the financial crisis resulted in thousands of Australians cancelling family holidays and a steady decline in domestic visitor nights”. Domestic tourism briefly returned to growth in 2011-12, but remains well below 2007-08 levels as Australians continue to choose international holidays over domestic travel. Although the global financial crisis and continuing economic turmoil in Europe and North America have resulted in lower visitor numbers from these regions, this has been more than offset by increased visitor numbers from Asia, particularly China.

Australia is expected to continue to lose its share of the global international traveller market as many new destinations emerge. Although tourism arrivals and departures will display better growth as the global economy recovers, the domestic tourism market will remain in limbo as it loses its strategic focus and its connection with travellers that now prefer to go overseas. However, the source of Australia's international visitors has changed dramatically, with China now one of the most valuable markets after surpassing the previously lucrative Japanese market in visitor numbers, nights stayed and dollars spent. Sivasailam adds, “industry revenue is expected to improve over the next five years, supported by better global economic conditions and a lower Australian dollar”.

The Tourism industry in Australia has a low level of market share concentration. The low level is not surprising given that the industry is one of the largest in the Australian economy, and is expected to be Australia's largest export earner by 2040. Industry operators range from small owner-operator tour guides and B&Bs to global corporations such as Qantas. The low level of concentration is also highlighted by the low number of employees per establishment. The two largest players are Qantas Airways and Virgin Blue. However, the market share of Qantas overshadows every other operator in the industry.

For more information, visit IBISWorld’s Tourism report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Tourism is the business of providing services to international and domestic visitors (whether on day or overnight trips). Tourism is defined broadly in the international standards to include visitors whose primary travel purpose includes business, conferences, government business, or the more familiar tourism for leisure, and to visit friends and relatives.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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