Tourism Australia dismisses as ridiculous that performance is ailing

TOURISM Australia says Qantas Airways’ recent grounding of its fleet has had minimal impact on international inbound traffic at best, and dismisses as “ridiculous” that tourism is “ailing” based on just one month’s performance in September, when arrivals slumped nine per cent.

Managing director Andrew McEvoy, in an interview with TTG Asia e-Daily, said the period prior to the grounding decision, in fact, was more damaging, as it caused a lack of confidence among consumers to fly, whereas the court order to end the dispute and resume flights had brought back “certainty”, which the industry needed. “It’s the one, good result from (the saga),” he said.

Besides, McEvoy pointed out, Qantas only had an 18 per cent share of the international traffic to Australia, with the majority, or 82 per cent, flown by foreign carriers.

McEvoy also lambasted reports that suggested Australia tourism was ailing due to a nine per cent slump in arrivals in September, a month during which, he said, the Rugby World Cup kept the New Zealand market – which contributes some 1.2 million arrivals – at home, and when two key holiday periods for Indonesians and Malaysians did not occur during that period for the first time.

McEvoy acknowledged, however, that there was “a story of two worlds”, essentially a two per cent to three per cent decline in traditional source markets such as the UK, France, Germany and Scandinavia, but contrasting with stellar growth in Asian source markets such as China, India, Singapore and Indonesia.

Setting the record straight, he said international arrivals grew four per cent to 5.9 million in the financial year ending June, and that he was fully confident the figure would be “six million plus” in this financial year.

A lot of resources have now been shifted to Asia. The ratio is now 60:40 towards Asia, compared to 40:60 before.

Asian buyers from Singapore and Indonesia interviewed at Dreamtime 2011, however, said currency appreciation and high rates as a result of Chinese and Indians filling up rooms were having an impact on costs. Many were expecting “average” performance in the months ahead to Australia.

– Full report in upcoming issues of TTG Asia, TTGmice

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