Record QLD visitor spend belies high costs and tight margins, QTIC claims

Despite record tourism spending of $35.3 billion in Queensland last year and a visitation growth rate of 4.8 per cent representing more than double the national average, the state's peak industry body notes the latest data shows a "a tale of two realities".

Following the latest data from Tourism Research Australia, Queensland Tourism Industry Council (QTIC) CEO Natassia Wheeler says record figures do not tell the full story.

“While the drive to travel remains strong, Australians are choosing to save money by holidaying intrastate or opting for cheaper, short-haul international trips,” says Wheeler says.

“Domestic holiday visitation is down, international visitor numbers have not returned to pre-pandemic levels, and forward occupancy data is deeply concerning across key markets.

“Queensland was previously the number one domestic holiday destination for Victoria and New South Wales. But cost of living pressures are forcing travellers to rethink spending priorities and we’re seeing this vital holiday market ease substantially”.

A spokesperson for QTIC tells Business News Australia that Queensland's international overnight visitor expenditure (OVE) was up 2.9 per cent on 2019 at $6.2 billion, but total international visitation was down 22.5 per cent on pre-COVID levels at 2.2 million.

Reduced discretionary income, rising operating costs, shifting economic conditions and intensifying global competition are also combining to put significant downward pressure on tourism operators.

“The margins for business success are shrinking as cost-related challenges become a growing obstacle for our business. High insurance costs, inflation and operating expenses are putting a strain on business,” says Craig Squire, director of Ochre Restaurant and Catering in Cairns.

“The costs of doing business have never been higher, with growing operational expenses squeezing profitability – forcing many operators to rethink their business strategies and whether they can keep their doors open”.

The tourism industry peak body is calling on governments to prioritise investment in destination marketing to better compete in a saturated market for the all-important international dollar.

“Behind the headlines lies a sobering truth – our visitor numbers are under significant pressure. Our tourism industry is facing one of its most challenging periods,” says Wheeler.

“Now is the time for decisive action. QTIC has called on the Federal Government to fast-track support to address insurance affordability and introduce immediate stimulus measures to rebuild consumer confidence.

“Tourism in Queensland is a $35 billion economic engine. It is not a ‘nice-to-have’ - it is a must-have for our state’s prosperity."

Wheeler says it is "time to stand behind our tourism operators", describing them as the backbone of regional economies and the future of Queensland’s economic growth.

"Despite current challenges, there is enormous opportunity ahead," Wheeler says.

"With plans for the Brisbane 2032 Olympic and Paralympic Games beginning to take shape across the state, Queensland is uniquely positioned to showcase our world-class destinations to a global audience.

"In parallel, we look forward to the release of the Destination 2045 strategy – which we hope will provide a strong, coordinated roadmap for long-term growth, resilience, and renewed investment in the visitor economy."