Tourism Performance & Outlook On The UP

New information shows tourism’s growing contribution to the national economy, with more jobs and forecasts of continuing growth, including expenditure reaching almost $100 billion this financial year, according to peak national industry body, Tourism & Transport Forum (TTF).

The update released by the Tourism Forecasting Committee shows that international visitor numbers are expected to grow at 4.0 per cent compound annual growth rate (CAGR) over the period FY 2012/13 to 2016/17, up from 1.2 per cent CAGR over the previous five years. Domestic visitor nights are expected to grow at 1.3 per cent CAGR from FY 2012/13 to 2016/17, a turnaround from an average annual decline of 0.8 per cent over the previous five years.

TTF Acting Chief Executive Trent Zimmerman said this reinforces the importance of Australian tourism.

“The figures released today indicate a positive outlook for the tourism sector over the coming five years, with growth in domestic tourism and international arrivals,” Mr Zimmerman said.

“Visitor expenditure is tipped to rise by 3.3 per cent this financial year off the back of 4.4 per cent growth in 2011/12, reaching almost $100 billion, including $70.5 billion by domestic visitors.

“This equates to spending of more than $270 million a day, every day of the year.

“However, these figures are predicated on continuing investment and support for tourism and we cannot take this forecast growth for granted.

“TTF is calling on both sides of federal politics to commit to maintaining Tourism Australia and supporting its activities in the long term to help the tourism industry make the most of the unprecedented opportunities of the Asian Century, as well as taking steps to ensure tourism growth is not hampered by inequitable taxes or increases in fees and charges.”

Meantime, Mr Zimmerman said the ABS’s latest Tourism Satellite Account, also released today, show tourism GDP growth outpaced overall GDP growth in 2011-12.

“Tourism GDP rose 5.3 per cent in 2011-12, against GDP growth of 4.9 per cent for the economy as a whole,” Mr Zimmerman said, “with tourism directly contributing $41 billion to GDP and a total of 8.1 per cent of Australia’s total export earnings.”

“This growth has led to an expansion of the tourism workforce, which now provides direct employment for 531,900 Australians and supports 283,000 tourism businesses across the country.

“TTF’s new National Tourism Business Count and Employment Atlas illustrates the importance of tourism to every electorate across Australia, many of which are highly reliant on tourism for economic activity.”