Increasing visitor numbers from Asia are expected to offset decreasing domestic travel
Melbourne, Australia (PRWEB) September 06, 2012
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.
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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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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