Tourism slump fallout yet to hit
By Owen Hembry 4:00 AM Monday May 31, 2010 Facebook
Australia's healthy visitor growth has counterbalanced some rather sick major markets. Global recession has sped up changes in the tourism industry but some effects may not be felt fully for years, say industry leaders.
Tourism Holdings chief executive Grant Webster said companies across the industry had pulled back on capital investment and paid down debt.
"They actually used that cash flow to stay afloat and it's going to take them some time to actually get back into a position where that capital investment is going to catch up," Webster said.
"So we won't see that effect in the industry for a couple of years to come because the product's okay, you can defer things, you think of a campervan or a hotel room you're not going to notice in one year that it's one year older," he said.
"But in two or three years time when that sort of mounts up is where there's a longer-term issue for the industry."
Tourism Holdings, whose businesses included Waitomo Glowworm Caves and hiring campervans, had reduced some of its fleet, paid down debt and for the six months ending December 31 posted its strongest operating cashflow in years, Webster said.
Tourism Holdings was now catching up and re-investing heavily, he said.
Tourism Industry Association chief executive Tim Cossar said it felt like the impact of recession was behind the industry.