The Australian Tourism Export Council has weighed into the debate over rising interest rates in the country.
ATEC managing director, Matt Hingerty, said the Australian retail banks were rubbing salt into the wounds of tourism operators across the country by raising interest rates higher than the new rate announced this week by the Reserve Bank of Australia.
Hingerty said while the high Aussie dollar is not a mortal blow for the industry, the combination of a high dollar and high interest rates is one of the industry’s greatest fears.
“The interest rates rise has created a toxic brew for the Australian tourism industry,†he said.
“Inbound tourism operators are now faced with a cut in margins due to the strength of the Australian dollar and now the higher interest rate is an added burden for small operators who are already struggling to keep their businesses afloat.
“Many small tourism operators barely survived the global financial crisis and were looking forward to solid trading conditions, but the double impact of a high dollar and high interest rates will make their recovery that much harder,†Hingerty said.
