The fuel crisis hits the tourism industry in South Australia
After some promising gains last quarter, the Tourism Barometer has taken a turn with every indicator decreasing, which demonstrates the impact of the fuel crisis. The business outlook is now at its second lowest reading on record (only March 2020 registered a lower reading). Tourism businesses in South Australia continue to struggle amidst the cost of living crisis (which dampens demand), rising costs (which puts pressure on profit margins) and an unstable geo political environment (which makes it difficult to have confidence in the future).
At the same time, visitor expenditure has continued to grow and now stands at $11 billion, a level it has never reached previously. Amidst the current uncertainty, international visitor numbers continue to grow as do overall passenger numbers through the Adelaide Airport.
As some respondents commented, hopefully the crisis in the Middle East will end soon and bring back some security and certainty regarding fuel. We could use some good news.