Reimagining the Visitor Economy Business Survey Results

What Business thinks

July 2021

 

Publication summary

We asked businesses to let us know their views about the Australian visitor economy.  

We received 413 responses. 71% were from tourism businesses and 29% were other organisations.

Responses by sector

  • Accommodation – 78
  • Arts and culture – 15
  • Education – 22
  • Events – 20
  • Food and drink services – 28
  • Recreation and entertainment – 25
  • Tour operator – 53
  • Travel agent – 32
  • Other – 98
  • Local government – 25
  • Regional Tourism Organisation (RTO) – 17

Responses by state

  • Western Australia – 31
  • Northern Territory – 5
  • South Australia – 26
  • Queensland – 36
  • New South Wales – 78
  • Australian Capital Territory – 10
  • Victoria – 71
  • Tasmania – 10

Current challenges - top five

  1. International border closures
  2. State border closures and localised lockdowns
  3. Work force issues
  4. Reduced cash flow
  5. Lack of consumer demand.

Only 25% of respondents said most of their business was international. However, more than 60% said international border closures was a top challenge.

More than 40% of business respondents held peak body memberships. An additional 5% had let their membership lapse in the past 12 months.

41% of businesses said their business revenue was down more than 70% in 2020.

Future challenges

Most businesses who responded were positive they would still be operational in five to 10 years.

163 respondents said they had a business plan. Almost 80% of these were for short to medium term.

More than 85% of respondents said they would need to make changes to their business in the next five years:

  • diversify markets – 56%
  • introduce or change a tourism product – 55%
  • upgrade existing technology – 54%
  • adopt new technology – 51%
  • invest in new equipment and machinery – 42%
  • increase environmental sustainability – 41%
  • upgrade or make repairs to premises – 40%.

The most common barriers to business development were:

  • cash flow – 58%
  • work force – 56%
  • lack of demand – 32%
  • planning and regulatory approvals – 27%
  • capacity restrictions – 23%.

More information

Read the Opportunities for the Visitor Economy Report

Contact us

Email: visitoreconomy@austrade.gov.au