Australian’s tourism sector suffers the biggest impact from the global economic downturn
The Australian Travel Industry Association (ATIA) has released its latest annual report for 2017.
Key findings: The economy was in freefall and travel was down by 13.9 per cent in the year to December, which is the biggest decline since the Great Depression.
The industry lost an average of $2.8 billion in the quarter, a 7.5 per cent drop.
Its total revenues fell by almost $3 billion, or about $15 billion, to $3.6 billion.
Travellers were also the hardest hit in Australia’s tourism industry, losing an average $1,100 a year.
“Tourism has been on the decline for the last couple of years,” ATCA CEO Nick Rimmer said.
While the travel industry was still growing, it was not as robust as it was during the recession.
Despite the downturn, Mr Rimmer believes tourism will bounce back in the coming years.
There were 2.5 million Australians who travelled overseas in 2017, but this is down from 3.5-4 million in 2016.
Tourism continues to grow, but the overall economy is still struggling.
For the year, the tourism industry lost $1.5 billion, about 7 per cent of its revenue.
In 2017, travel was one of the largest contributors to the economy, accounting for nearly $3 trillion.
Australia’s total gross domestic product (GDP) is estimated to be about $40 trillion, and tourism accounts for almost two-thirds of it.
Australian travel industry in 2017 Australian tourism is estimated by the Australian Bureau of Statistics to be $2 trillion, or around $15 trillion in the Australian economy.
Travel to the United States, Canada and Europe grew by $2 billion each year, accounting of almost $6 trillion of GDP.
But it was the Australian population that contracted the most, shrinking by 12 per cent, from 6.3 million people to 4.3 per cent.
Since Australia’s introduction of its travel visa regime in 2005, travel from Australia to the US has grown by about $400 million per annum.
Between 2000 and 2016, the number of Australians travelling to the USA has increased by more than 1.5 times.
When the economic downturn hit, it also led to a huge decline in the number and intensity of international travel, and the number, intensity and duration of visits to the world. AAP