A study by the Australian Tourism Export Council (ATEC) has revealed that local tourism operators are paying up to twice as much on marketing compared to pre-COVID-19.
The news comes as many companies cite a variety of pressures on their marketing budgets, including increased spending from competing countries, trade show participation fees and increased advertising costs.
“We always knew that restarting tourism would be difficult. Border closures effectively shut down many tourism businesses serving international markets. And more than two years later, we still We are working hard to revive the tourist market,” said ATEC Managing Director Peter Shelley.
“Recent headwinds have added to the challenge, with geopolitical, environmental, aviation and economic concerns putting pressure on travel decisions.
“For Australian tourism businesses in particular, the cost of marketing their products in Europe and the US has increased significantly and this is really showing in our ability to secure space in the international travel market.”
Key findings from the survey showed more than 75% of Australian tourism businesses reported a 20% increase in marketing spend, with one in four saying their costs had doubled since 2019.
“While we are seeing pressure on individual businesses, the cost of marketing Australia to a global audience is also increasing for marketing agencies, as we continue to maintain a ‘first priority’ mindset for international travelers. “We need to significantly increase our advertising spending,” Shelley continued.
Mr Shelley also hopes to see more funding for Tourism Australia ahead of tomorrow’s budget announcement.
“To fail to invest in tourism is to fail to invest in Australia’s success story,” he said. “Tourism GDP grew by 3.5% in 2019, outpacing national GDP, and we must not forget that this is the economic benefit we are currently missing out on.
“We call on the Federal Government to support tourism and support the economy by helping tourism businesses across Australia get back on the market and back to their jobs.”
