Tasmania’s tourism operators have reported a solid Easter trade, but the industry operators say they are still worried how fuel costs and global uncertainty will affect the state in the coming months.
Tourism Industry Council Tasmania chief executive Amy Hills said early feedback indicated Easter was “a solid trading period” across the state.
“The current circumstances [are] pretty good and I think it’s testament to the Tasmanian travelling public and to our strength as a Tasmanian brand that people are heading here in Easter to support our industry,” she said.
Hills said conversations with operators in every region have now turned to the coming months.
Fuel supply uncertainty remains the biggest concern for operators heading into the traditionally challenging off-season period.
“Operators cannot plan or invest when they don’t know what their costs will look like, whether their guests can afford to travel, or whether supply chains will hold up,” she said.
The industry is particularly worried about regional areas, where higher fuel costs could deter the self-drive market that many operators depend on.
Hills said metropolitan areas would likely continue receiving visitors through air travel, but regions needed the driving market to remain viable.
“We really do need to drive the demand into our regions through that self-drive market, because that’s where the most hesitancy will sit,” she said.
The TICT has renewed calls for the state government to scrap its proposed short-stay accommodation tax, due to be introduced in July.
“Introducing a new tax on visitors to Tasmania at a time like this does not make any sense at all,” Hills said.
“The government should be backing the tourism industry, not creating new problems.”
Treasurer Eric Abetz released draft legislation for the levy in December, which see guests, not property owners, wear the cost.
“The levy will be paid overwhelmingly by interstate and overseas travellers, with an estimated 83% of Tasmanian short stays used by interstate or overseas travellers,” Abetz said at the time.
The government expects the tax to raise about $11 million a year, helping fund its stamp duty exemption on homes up to $750,000, along with a $30,000 first home owner grant.
Hills also highlighted the need for better electric vehicle charging infrastructure as Tasmania looks to capitalise on its renewable energy advantage.
“We operate on renewables. People are interested in EVs. Let’s get the charging infrastructure out there and get ahead of the game,” she said.
She said the state budget will be closely watched by tourism operators seeking assurance of continued government support through the challenging months ahead.
