Investment needed to hit target: TTF

Investment needed to hit target: TTF
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Email the Travel Weekly team at traveldesk@travelweekly.com.au

Investment needed to hit target: TTF

Investment needed to hit target: TTF
By admin


The Tourism and Transport Forum (TTF) has reiterated the need for further hotel investment, as new figures suggest the industry’s goal to double overnight visitor expenditure by 2020 are likely to fall short.

The latest Tourism Forecasting Committee update estimates that inbound visitor numbers will grow at an average 3.2% each year over the next decade, with domestic visitor nights to increase 0.8% per annum.

Total tourism expenditure is also forecast to grow 1.6% per year, reaching $110 billion in 2020.

Noting that the forecast is “well below” the industry target of doubling overnight visitor expenditure to $140 billion, TTF chief executive John Lee has renewed calls for infrastructure improvements.

“We have seen strong growth in aviation capacity – both international and domestic – over recent years, but accommodation development has failed to keep pace,” he said.

“This is pricing some travellers out of the market, with a scarcity of accommodation in gateway cities reducing regional dispersal and reducing Australia’s competitiveness.”

With the latest Tourism Research Australia figures showing an average annual loss of around 9% for conference, convention and exhibition visitors since June 2000, Lee pointed to the government for support.

He also noted that further investment in accommodation and tourism infrastructure was likely to increase the length of stay and daily traveller expenditure.

“In a competitive investment environment, the rates of return offered by tourism must stack up relative to other asset classes… Government investment is required to address instances of market failure and to underpin private sector investment in additional tourism activities and accommodation,” he said.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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