It was a mixed year for Western Australia’s tourism industry, capped off by the release of the Tourism WA National Visitor Survey, which showed a drop in the number of domestic tourists but an increase in domestic tourist expenditure.
WA attracted more interstate visitors in the 12 months ending March 2006, up 5 per cent to 1.05 million arrivals.
But the number of WA residents travelling in their own state dropped by 6.7 per cent to 5.07 million arrivals.
Total domestic visitor expenditure, including both interstate and intrastate, increased 1.8 per cent.
International visitor numbers to WA also fell, but expenditure increased 6.6 per cent to reach an all-time high of $1.228 billion.
The United Kingdom, Singapore and New Zealand were the top three international markets into WA in 2005/06.
Tourism Council of WA CEO Ron Buckey was pleased with the upward trend of a few key markets but said the reduction in the state’s largest tourism market, the intrastate market, was disappointing.
Mr Buckey said there were many factors contributing to the downturn, including increasing fuel prices, the emergence of low cost airlines and changing consumer spending patterns, which is seeing discretionary spend drift away from holidays and more towards home improvements and items such as plasma televisions.
The drop in domestic tourism in WA reflects a national trend, with the Australian average domestic market down 6.6 per cent.
The increase in WA domestic visitor spending, up 1.8 per cent, was also better than the national average of minus 2.8 per cent.
However, the number of WA residents travelling overseas increased, and has been increasing substantially while domestic travel has plateaued or declined.
From 2003 to 2005, WA international outbound trips increased by 49.1 per cent, greater than the national average of 40.4 per cent.
Tourism WA’s recent analysis reveals that the increase in international travel by WA residents coincides directly with the decrease in intrastate travel, suggesting that as the cost of intrastate travel increases, international travel has become a relatively more cost competitive alternative.
The state government is investing more than $50 million a year in tourism, according to the 2006-07 budget.
Tourism Minister Sheila McHale has asked Tourism WA to continue to work with the local industry through the Tourism Council of WA to develop strategies and campaigns to deliver increased business to the declining markets.
