Australian travel agents and tourism businesses can expect overall growth of around 5% in the number of trips taken by Aussies in the 2018-19 financial year, a new study has found.
Analyzing Australian Bureau of Statistics (ABS) data, the IBISWorld study found that more than 11 million overseas trips will be made over the 12 months, compared to the 10.76 million trips made in 2017-18.
According to the research, growth is being fuelled by record low international airfares and capacity, which are outweighing the depreciation of the Aussie dollar over the past five years.
“Major Australian and international airlines are expanding their flight capacity to and from Australia, as competition on key international routes intensifies,” IBISWorld senior industry analyst Nathan Cloutman said.
“For example, budget carriers, such as Singapore Airline’s subsidiary Scoot and Malaysia-based AirAsia X, have extended their Australian route networks and passenger capacities over the past five years, and the increased competition has lowered the cost of airfares.”
The rise in outbound travel is also being driven by growing interest in the Asia-Pacific region beyond the likes of Bali and over traditional favourites New Zealand, US and UK.
“Bali is a popular destination in Asia for Australians and is now the second largest outbound market by visitor numbers. However, according to Tourism Research Australia (TRA), the number of visitor nights spent in Indonesia declined in 2017-18 compared with 2016-17,” said Mr Cloutman, who added that visitor nights in other APAC destinations such as Hong Kong, Japan and Vietnam had “grown significantly over the past year.”
Like in Bali, the number of visitor nights spent in NZ, US and UK by Australians had also fallen.
At AU$8.6 billion, the forecast value of the travel trade will bring with it more competition for travel and tour services, especially from the online market, IBISWorld revealed.
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