FED: Tourism looking good despite GST survey

AAP General News (Australia)
08-30-1999
FED: Tourism looking good despite GST survey

CANBERRA, Aug 30 AAP - Prospects for the tourism industry are bright despite an expected
reduced demand for services due to the GST, the leading industry body said today.

Inbound operators, airlines and the accommodation sector are the most optimistic about job
growth over the next six months, an industry survey found.

"Brighter business expectations for the tourism industry for the remainder of the year and
up to March 2000 is good news for the industry and should be further enhanced with the 2000
Olympics," Tourism Council Australia managing director Phil Young said.

But he said industry was concerned about the impact of the GST on both domestic and
international markets.

The effects would start showing up from mid-2000 onwards.

"This means the Australian tourism industry cannot afford to be complacent as we head into
the new millennium despite the positive trading expectations and outlook."

The survey shows more Australians (14 per cent) plan to travel abroad in the next six
months than a year ago (9 per cent).

There is a continuing shift to cheaper Asian destinations away from more expensive American
and European destinations.

"This trend towards travel in south east Asia clearly highlights the importance of price as
well as product in attracting visitors," Mr Young said.

From June 1998 to May 1999, outbound travel increased by about five per cent compared to
the same time last year.

Travel by Australians to south east Asia went up by 13 per cent while travel to the USA
fell by eight per cent.

More Australians plan to travel at home in the next three months (51 per cent) than a year
ago (40 per cent).

AAP wl/mfh/ah

KEYWORD: TOURISM

1999 AAP Information Services Pty Limited (AAP) or its Licensors.