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Tourism industry advised to step-up alliances

Tourism is the third industry flagged in the IBISWorld report as directly feeling the effects of the infamous global financial crisis.

 

Joining the ranks of financiers and mining, tourism is facing many significant issues due to economic slowdown.

 

IBISWorld says while the decreasing number of travellers is a key issue, the level of industry expenditure is declining at a far greater rate.

 

It is predicted that domestic visitor nights will slide by a further 3.4 percent to 270.8 million over the coming year.

 

Visitor expenditure will fall by around 5 percent, marking a significant blow to the industry.

 

International arrivals are expected to fall by 7.5 percent to 5.12 million, with a drop in visitors from the US, Japan, China, India, Europe and the UK.

 

It is not just inbound figures feeling the pinch, as the number of Australians heading overseas is tipped to fall 7 percent to 5.4 million.

 

As flight schedules are cut due to reduced demand, the industry must look towards the positives in order to brave the storm.

 

IBISWorld has come up with five opportunities tailored for tourism’s recovery.

 

Firstly, tourism companies must focus on providing attractive packages with value-added extras.

 

However, it is advised to not over-discount, as this may prove difficult to revive when the market recovers.

 

Advertising and promotional expenditure is important in such times, and businesses should look to stay in touch with previous guests to promote ‘exclusive’ specials.

 

It is also important to form strategic alliances and participate in cost effective promotions with Government tourism bodies, airlines and local operators.

 

Placing more unsold stock on an online bookings site at discounted rates is also proven to generate sales, and boost revenue.

 

Finally, IBISWorld stresses the importance of customer service, and upholding the image of a company people can associate with positive travel experiences.

 

(Agencies April 7, 2009)