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Slowness for January 2008

Mixed feelings for Australia’s tourism performance in 2008

New figures confirm that despite a record year last year for international tourism to Australia, with 5.6 million international visitors arriving on its shores during in 2007, there has been some slowing in the sector for the first month of 2008. International tourist arrivals to Australia grew by two per cent in 2007 to reach 5.6 million visitors – more than any other year on record. However, new…

New figures confirm that despite a record year last year for international tourism to Australia, with 5.6 million international visitors arriving on its shores during in 2007, there has been some slowing in the sector for the first month of 2008.

International tourist arrivals to Australia grew by two per cent in 2007 to reach 5.6 million visitors – more than any other year on record. However, new figures released by the Australian Bureau of Statistics (ABS) show that international visitor numbers have slowed in January 2008, falling by 2.6 per cent compared to January 2007 with 446,100 visitors for the month.

Tourism Australia Managing Director, Geoff Buckley said Tourism Australia research suggests there is still strong demand for Australian tourism experiences internationally even though the year has started off with a mixed performance.

“Some of our major markets have started the year strongly – with increases in visitors from China (up 24 per cent), Malaysia (up 19 per cent), and Germany (up 6 per cent) – while others have not performed as well,” Mr Buckley said.

“There are a number of factors which have contributed to the slight fall in visitors to Australia from some markets during January compared to the same period last year.

“Australia is undoubtedly facing some challenges in the international market as a result of factors such as competition from other destinations, aviation constraints brought about by high load factors and more Australians traveling overseas, as well as the increased value of the Australian dollar.

“Indications are that in spite of the challenges there is still strong desire for Australia as a business and leisure destination.

“Tourism Australia research in international markets indicates that desire for Australia has increased in the past year especially in the UK and South Korea.

“With improved market conditions such as increased aviation capacity, with more larger A380 aircraft coming into service later this year, we will be able to realise some of that potential particularly from the US and UK,” Mr Buckley said.

Mr Buckley said there were very specific reasons why growth had slowed in some markets at the start of this year.

“From the UK we saw a significant boost in visitor numbers early last year due to the Ashes cricket series, which attracted thousands of English cricket fans to Australia,” Mr Buckley said. “Now in January this year we have seen the market return to previous levels.

“Tourism from Japan has been impacted by both their domestic economic and aviation factors. However, Australia continues to fair better than many of its competitors in that market. The current World Heritage campaign is also providing Japanese travellers with new reasons to visit Australia which will assist in the longer term recovery of the market. 

“In Singapore we are seeing the impact of increased competition from low cost carriers servicing nearby destinations as travellers opt for closer to home holiday destinations.

“In Korea there has been some realignment in the market, where a greater focus on better quality holidays coupled with a strong Australian dollar has increased the price of Australian holiday packages.

“Visitation from New Zealand was affected by the poor weather on the east coast of Australia during January, which is usually a peak travel time for Kiwis looking to take a short summer break.

“At the same time we have seen emerging source markets such as India go from strength to strength with visitor numbers climbing by 21 per cent to 7,600 for the first month of 2008,” he said.

Mr Buckley said today’s figures highlight the importance of having a broad and balanced portfolio of international markets to ensure that Australia can weather the challenges that come with doing business internationally.

“Tourism Australia has also strengthened its approach to increasing the spend by international visitors on their Australian holidays, rather than focusing on just visitor numbers, and there are strong signs that this strategy is working,” Mr Buckley said.

Mr Buckley said Australia’s competitiveness as a tourism destination had also been highlighted today with Australia being voted in the top four out 130 countries as one of the most competitive destinations in the world in the World Economic Forum’s Travel & Tourism Report.

“Over the coming months Tourism Australia will continue to promote Australia in 23 markets world-wide, to ensure that Australia continues to attract international tourists who deliver $22 billion to the Australian economy each year,” Mr Buckley said.

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