Domestic Travel in Aus in decline

A recent report released by Tourism Research Australia has highlighted a frightening fact than many of us may not have realised that domestic tourism is in decline and from reading the report it sounds like a serious decline. 

The report highlights says that many Australians would rather watch their flat screen TV than travel inside their own states, but how can that be in a country recognised for its outdoor lifestyle?

International travel is continuing to increase from its 2001 low, but leisure travel, worth $30 billion to the Australian economy seems on a very slippery and potentially disastrous slope.

The study reveals that domestic tourism is becoming a two-tier industry, with tourism and accommodation businesses located near low-cost carrier hubs doing well, while those without air access struggle.

Between 1998 and 2004, there was an 8% decline in overall domestic trips and this was despite booming air travel, which increased by 12% and a correlated spike in the use of hotels, resort or motels, up 10% over the past three years.

Clearly the quality of the product and in particular accommodation is a factor, with Managing Director of the Tourism and Transport Forum, Christopher Brown, telling The Australian recently that he believes the domestic industry will shed businesses that are not keeping pace with changing consumer expectations.  “They will – and should – go the way of the dinosaurs,” he added.

Meanwhile, AAA Tourism chief executive Jeff Floyd also said that well-branded professional accommodation providers in good locations would continue doing well, however, those who under-invest in refurbishments will struggle.

The increasing pressure of working life in the metropolitan areas are where the biggest changes are taking place with residents of Melbourne, Sydney, Adelaide and Perth becoming increasingly time-poor and higher in debt.  Domestic overnight trips by residents of these cities has declined by an average of 10%, with spending down even more as they increasingly stay with friends or relatives when away from home.

In the meantime, it appears that young people are really turning off domestic travel in their droves, with the sharpest decline in domestic nights being among young singles living at home, down 22%, working singles, down 6% and young couples, down 9%.  One of the theories being utilised to explain this is that their growing dependence on and fascination with, technology may be partly to blame.

It is also certain that high petrol prices also had an impact although they are beginning to come down a little.   

Pricing is also an issue, with domestic holidays costing as much as if not more than an overseas visit to New Zealand, Fiji or further afield.

Please let The Mole have your views on what the domestic tourism industry in Australia needs to do to turn this decline around – add your comments by clicking on the comments below.

Report by The Mole