In late March 2026 we surveyed South Australian tourism businesses to guage the impact of the Middle East crisis and associated disruptions.
We received 281 responses in just four days from businesses across South Australia and right across the tourism sector, highlighting the breadth of the impact being felt.
The survey results point to a sector under immediate pressure. Businesses are reporting higher operating costs, softer bookings, more cancellations and growing concern about the months ahead. For many operators, particularly in regional South Australia, the biggest issue is not only the cost of fuel, but the loss of confidence around whether travellers will be able to access fuel at all.
This is affecting decision-making right now. Businesses say visitors are hesitating to book, shortening stays, cancelling trips and spending less when they do travel. Many operators are absorbing higher costs to remain competitive and operational, even as margins come under increasing strain.
The findings make it clear this is both a cost challenge and a confidence challenge.
We moved quickly to share early insights from the survey with both the State and Federal Governments, along with the key actions industry said would make the greatest immediate difference:
- certainty of fuel supply in regional areas
- clear and trusted public communications to maintain and lift travel confidence
- advocacy to the Federal Government remove or reduce the fuel excise
Key takeaways:
- 64% of respondents said fuel cost increases are having a significant impact on their business.
- Businesses reported an average 29% increase in total operating costs since the conflict began.
- Businesses reported an average 32.5% downturn in revenue, enquiries or bookings.
- 47% said customer confidence and visitor demand is being significantly affected.
- 58% said customers are frequently raising concerns about travel costs or disruption.
- 64% are seeing fewer enquiries or bookings, while 53% are experiencing cancellations.
- While 35% said they are experiencing lack of fuel supply or availability, 50% report no issues at a local level.
- 75% are very concerned about ongoing impacts over the next three months.