Australian tourism businesses are grappling with exponentially higher marketing expenses as they endeavor to reclaim their position in the global travel industry, a sector that once served as a robust revenue source. Despite the fact that the influx of international tourists has not yet rebounded to pre-2020 levels, these businesses are now allocating up to double their former budgets to marketing efforts aimed at attracting foreign visitors.
Recent adversities, including geopolitical tensions, environmental issues, aviation challenges, and economic uncertainties, are complicating travel decisions. A recent survey conducted by the Australian Tourism Export Council (ATEC) revealed that over 75% of businesses focused on tourism exports have observed more than a 20% hike in their marketing expenditures, with one-fourth experiencing a doubling since 2019.
Factors pushing these costs upward include increased promotional spending by competing destinations, fluctuating exchange rates, the expenses associated with attending trade fairs, advertising fees, and general corporate travel costs. As the Federal Budget approaches, there’s noticeable effort from agencies like Tourism Australia to maximize outcomes with budgets that, in real terms, haven’t increased in a decade.
Mr. Shelley is hopeful that the Federal Government will acknowledge the economic gains driven by tourism exports by enhancing funding for Tourism Australia in the upcoming budget. “Neglecting tourism investment is tantamount to overlooking a proven Australian success story. It’s vital to remember that in 2019, tourism contributed a 3.5% growth to the GDP, surpassing the overall national GDP growth—an economic advantage we are currently forfeiting.”
