Tourism troubles move from COVID to inflation
The majority of the state’s tourism industry is more concerned with inflation and rising business costs than the impact of COVID-19, according to a new survey.
A still from a SA Tourism Commission campaign. Photo: SATC/supplied
The Tourism Industry Council of South Australia’s latest industry sentiment survey shows confidence within the industry has dropped from 130 points in the March quarter to 118 points in the June quarter
That’s despite 49 per cent of businesses reporting an increase in business activity, with the survey’s indicators for employment and higher wages improving since March.
The online poll, which gathered 198 business responses from July 1 to July 8, saw more than 60 per cent of businesses list rising costs as their biggest issue, above lack of staff and lack of cash flow.
COVID-19 appears to be fading as an immediate industry problem, with 72 per cent of businesses reporting they were not experiencing a downturn due to the pandemic.
Increased interstate travel from last year and “reduced COVID-19 impact” were cited as the top reasons for positive business performance last quarter.
“Labour shortages, rising inflation, and an uncertain economy take the shine off what looks to be a pathway to the strong recovery of the tourism industry,” TICSA CEO Shaun de Bruyn said.
“We must emphasise that recovery isn’t immediate, and despite things looking bright, we must continue to work with industry to build their resilience.”
Of TICSA’s four market segments of the tourism industry, the Holiday/Leisure sector reported the biggest increase in activity, ahead of Festivals/Events, Business and Conferences and Business Meetings.
The survey also noted that despite 45 per cent of businesses reporting stronger business activity, only 25 per cent of businesses had increased their workforce.
