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The latest tourism industry data from Tourism Industry Council South Australia shows business outlook has deteriorated to the second-lowest level since 2010, after further restrictions and uncertainty leaves businesses struggling to stay afloat.

The quarterly sentiment survey, undertaken by 370 business across the state, conducted by Tourism Industry Council South Australia (TiCSA) for the October – December 2021, confirms that the constantly changing environment and lack of support still pose a threat to the tourism industry and its future.

Both medium and long-term business outlook has fallen significantly, to the second-lowest level since TiCSA began producing the quarterly Tourism Barometer in 2010. These results are second only to the June 2020 quarter, at the beginning of the pandemic.

Over 60% of businesses indicated they were ‘worried’ or ‘extremely worried’ about their business prospects for the next 12 months, caused by low consumer confidence, low business confidence, and the new Omicron strain of COVID-19. Tourism in almost all market segments also continued to decrease in the December quarter, with the largest declines seen in holiday and leisure tourism, and festival and event tourism.

TiCSA Chief Executive, Shaun de Bruyn, stresses that these results show a desperate need for industry assistance, particularly increased investment in marketing, demand stimulation, and recovery grants to help businesses invest in reactivating their ailing businesses.

De Bruyn notes “Last quarter’s Barometer reinforces that now, more than ever, our tourism industry needs support to survive, and then recover, from the effects of the pandemic. A staggering $2.3 billion has been wiped off the value of our visitor economy since the start of the pandemic.”

De Bruyn emphasised that businesses cannot be in any position to operate post-pandemic when many have let go of staff, sold their assets and depleted cash reserves just to cover their fixed costs and survive.  

“As such, we continue to push for further restart and recovery funding for tourism businesses here in SA. Furthermore, we need tourism demand stimulus through increased marketing budget for the SA Tourism Commission to be provided, to boost business outlook for the future.”

The results of TiCSA’s Tourism Barometer, along with the recently released Tourism Industry Recovery Agenda, will continue to drive the organisation’s advocacy for this assistance.

de Bruyn added “we will persist in our advocacy for the industry as the State Election approaches. The tourism, hospitality, and events industry is the vibrancy and appeal of South Australia which once directly employed over 40,000 South Australians. Now is the time to ensure there is a successful future ahead.

Key findings:

• 64.05% of respondents were experiencing a significant downturn in business as at 1st Jan, 2022
• 42.55% were open, but with reduced staff or operations
• Over half reported weaker activity compared to the same period in 2020
• 39.02% reported no change in their investment plans, while 36.59% are planning less investment
• Lack of consumer confidence and COVID-19 uncertainty remain key influences on business activity
• Significant decrease in both medium and long-term business outlook
• Over 60% of respondents ‘worried’ or ‘very worried’ about their business prospects for the next 12 months
• 74.56% report that low consumer confidence is a key issue for the future of their business

The Tourism Industry Council South Australia (TiCSA) is a not-for-profit, member-based organisation with over 1000 members. Established in 2009, TiCSA has two primary objectives – advocacy and business development.

For more information go to Tourism Industry Council South Australia 

Image: Adelaide Central Market. Credit: Food Tours with Mark Gleeson 

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