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Australian tourism operators are grappling with dramatically higher marketing expenses as they strive to reclaim their position in the global travel industry—a sector that previously served as a robust source of revenue. Although the influx of international tourists hasn’t yet rebounded to pre-2020 figures, these businesses are now allocating up to twice their former budgets to marketing efforts aimed at attracting foreign visitors.
“We always knew the restart of tourism would be tough – shutting borders effectively closed many tourism businesses servicing international markets – and more than two years on we are still working hard to revive our visitor markets,” ATEC Managing Director Peter Shelley said.
Recent adversities, including geopolitical tensions, environmental issues, aviation challenges, and economic uncertainties, are complicating travel decisions.
“Particularly for Australian companies, the cost of promoting their offerings in markets like Europe and the US has soared, impacting our competitiveness in the global travel scene,” stated one industry spokesperson.
A recent survey conducted by the Australian Tourism Export Council (ATEC) revealed that over 75% of businesses focused on tourism exports have observed more than a 20% hike in their marketing expenditures, with one-fourth experiencing a doubling since 2019.
Factors pushing these costs upward include increased promotional spending by competing destinations, fluctuating exchange rates, the expenses associated with attending trade fairs, advertising fees, and general corporate travel costs.
“While individual businesses are feeling the pinch, the overall expense of positioning Australia on the international stage has risen for our marketing firms as well. They’re having to boost their advertising budgets significantly to ensure Australia remains a top consideration for potential international tourists,” the spokesperson added.
As the Federal Budget approaches, there’s noticeable effort from agencies like Tourism Australia to maximize outcomes with budgets that, in real terms, haven’t increased in a decade.
“While our rivals have ramped up their tourism marketing investments, Australian state tourism budgets have been cut, reducing the collective funds available for promoting Australia to affluent international tourists,” noted Mr. Shelley.
Mr. Shelley is hopeful that the Federal Government will acknowledge the economic gains driven by tourism exports by enhancing funding for Tourism Australia in the upcoming budget.
“Neglecting tourism investment is tantamount to overlooking a proven Australian success story. It’s vital to remember that in 2019, tourism contributed a 3.5% growth to the GDP, surpassing the overall national GDP growth—an economic advantage we are currently forfeiting.”
He continued, “We urge the Federal Government to back tourism to bolster the economy, assisting tourism businesses nationwide to re-enter the market and excel in their specialties.”
The post Australia’s Global Tourism Influence Shrinks as Marketing Costs Soar appeared first on Travel And Tour World.
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