Industry Confidence Surges – SATIC Tourism Barometer Sept 2017

27 October 2017

Tourism operators are feeling more confident about the immediate future according to the September quarter 2017 SATIC Tourism Barometer.

The short-term outlook index rose by 16 points to a high of 154 with the business activity index also having increased by 18 points to 128 (1 - see below). The results demonstrate that business activity was stronger across all sectors including leisure, events, conference and business.

Internationally there is greater political instability and a trend to protectionism and fragmentation with the Trump agenda, Brexit, Catalonia and the election of conservative governments elsewhere. These developments will continue to support both the international visitor market to Australia and the domestic market as travellers become more risk averse.

When asked what was behind their positive outlook, respondents pointed to solid forward bookings, new infrastructure in Adelaide including the expanded Convention Centre and associated Riverbank precinct, the upcoming events season including the popular Ashes test match and increased inbound demand from Asia – in particular China.

Regionally, the announcement that Qantas will fly to Kangaroo Island from December 2017 including direct flights from Melbourne, the condition of the Murray River, the strength of the touring markets, nature-based tourism and the support for tourism by the SA Government and regional councils all contributed to an improved outlook.

In a number of instances, operators also expected improved performance as a result of investment in upgrading or expanding their product offering. One third of the respondents also reported that they had employed additional staff in the business when compared with the same period last year.

SATIC’s CEO, Shaun de Bruyn commented that “business sentiment is very positive, respondents also pointed to some headwinds including the broader economic outlook for South Australia post the closure of Holden’s, economic pressures on families and the publicity associated with power pricing and supply, said Mr de Bruyn”.

“In some areas operators are challenged by increases in room supply, in particular due to Airbnb."

“The strong results are in-line with the visitor demand figures for South Australia published by Tourism Research Australia for the year to June 2017, which show interstate and international visitor numbers both up by 3%."

Read the full report > 


1. An index above 100 indicates growth with more businesses experiencing an increase when compared to those experiencing contraction. An index below 100 indicates more businesses experienced weaker conditions.

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