News
Tourism Sustains Tasmania's Economy
Posted on Wednesday, 18 March 2009 | Permalink
The latest visitor numbers released today show that tourism is sustaining Tasmania’s economy, Tourism Industry Council of Tasmania (TICT) Chief Executive Officer Daniel Hanna said today.
“The Tasmanian Visitor Survey showing that Tasmanian tourism has held up so strongly is very encouraging news when other destinations in our region are struggling,” Mr Hanna said.
Mr Hanna said that given that tourism is labour intensive, the buoyancy of tourism would have helped Tasmania sustain low unemployment against the national trend.
The TVS showed that Tasmania received 897,100 visitors in 2008, who spent some $1.48 billion in the State while they were here, a 12 per cent increase from 2007.
“Importantly, during the December quarter when the financial crisis really started to bite globally and domestically, visitor numbers rose by 9% and expenditure rose by 19% when compared to the December quarter in 2007. This growth will have benefited many industries throughout the state from retail and agriculture to manufacturing and not just direct tourism businesses like accommodation, restaurants and transport,” Mr Hanna said.
“The results confirm the predictions made by the TICT late last year that we were well placed to ride out the storm because Tasmania:
• is primarily a holiday destination as opposed to business;
• is primarily a destination for domestic travelers as opposed to international;
• is highly desirable with a strong brand presence; and
• is well placed to benefit from a weaker dollar, lower petrol prices and lower interest rates.
“The TVS shows that visitor numbers increased in all regions – which means the whole state benefits from a healthy tourism industry. The regional dispersal of visitors when in Tasmania is one of the defining features of our destination and means that the economic benefits are felt by every area of the state.
Mr Hanna said the current economic circumstances in Australia and key international markets underlined the urgency for Tasmania to more heavily promote the State as a destination – especially during the second part of this year.
“Tasmania has held up well to the end of 2008 and through the early months of the effects of the global financial crisis. However, 2009 is going to be a very tough year for every tourism destination throughout the country and we need to be aggressive to win market share. This is because the Australian travel pie will shrink in 2009 and we simply have to take a larger slice.
“Tasmania’s tourism strategies, including our marketing campaigns, have been effective over many years. During tough times it is vital that as a State we have the confidence to continue with the strategy that has served us so well in the past.
Mr Hanna said the industry would continue to focus on driving demand for people to travel to Tasmania, but it also needed the State Government to continue its commitment by providing additional resources to effectively promote the destination.
“Tasmania’s economy needs a strong tourism industry and we can’t afford to be complacent. During these difficult times, tourism can help to keep the Tasmanian economy growing and keep Tasmanians in jobs; but it is vital that the Tasmanian Government continues to resource our marketing activities strongly.
“Tourism is one of the only sectors where governments can stimulate demand and the TICT urges the Tasmanian Government to not just maintain the existing level of resources, but make additional investments in destination marketing.
“Now more than ever we need to continue to stimulate demand if we want to continue to grow and provide more jobs for Tasmanians,” Mr Hanna said.
