Confidence is waning from decreased demand and increasing costs
The tourism industry in South Australia continues to struggle in a challenging environment. Prior to the June quarter 2025, there had been promising signs for South Australia’s tourism industry, with many Barometer indicators increasing and confidence returning to the tourismindustry. However, a vast area of South Australia’s coastline has been impacted by an Algal Bloom since March 2025, disrupting key tourism regions including the Fleurieu Peninsula, Kangaroo Island, Yorke Peninsula, Port Lincoln and Adelaide’s local beaches.
While the Algal Bloom has contributed, many survey respondents also continued to point to economic uncertainty, cost-of-living pressures and rising operating costs as significant challenges.
Even if an interest rate cut occurs in November and the holiday season is particularly busy, the tourism industry may still struggle to get its mojo back.