Western Australia's tourism industry is experiencing a significant downturn, with forward bookings for the next three months dropping by 30%, according to new data. The decline has forced approximately one-third of tourism businesses to reduce their workforce, sparking concerns about the state's economic recovery.
Sharp Decline in Forward Bookings
The Tourism Council WA revealed that forward bookings for the coming quarter have fallen by 30% compared to the same period last year. This slump is attributed to a combination of factors, including rising cost-of-living pressures, reduced domestic travel demand, and ongoing uncertainty in global markets.
Chief Executive Evan Hall said the data paints a grim picture for the industry. “These figures are deeply concerning. A 30% drop in bookings means fewer visitors, less revenue, and ultimately, job losses across the sector,” he stated.
Staff Cuts Across the Sector
The survey of tourism operators found that 33% of businesses have already reduced staff numbers or plan to do so in the coming weeks. Smaller operators, particularly those in regional areas, are being hit hardest. Many are struggling to cover operational costs as cash flow dries up.
“We’re seeing businesses make the difficult decision to let staff go, which is heartbreaking for the industry and the local communities that rely on tourism,” Hall added.
Impact on Regional Economies
The downturn is not limited to Perth; regional tourism hotspots like the South West, Margaret River, and the Kimberley are also feeling the pinch. Local economies that depend heavily on visitor spending are bracing for a challenging period.
Margaret River Tourism Association Chair Sarah Watts noted that many accommodation providers are reporting occupancy rates well below normal for this time of year. “Usually we’d be seeing strong bookings for the upcoming season, but that’s not the case. It’s a worrying trend,” she said.
Calls for Government Support
Industry leaders are urging the state government to step in with targeted support measures. Suggestions include marketing campaigns to encourage domestic travel, reduced fees for tourism operators, and direct financial assistance to help retain staff.
“We need the government to recognise the severity of this situation and act quickly. Without intervention, we risk losing many of our beloved tourism businesses permanently,” Hall warned.
The Tourism Council WA is also calling for a review of state taxes and charges that add to the cost burden for operators. They argue that reducing red tape and offering incentives could help stimulate demand.
Broader Economic Concerns
The decline in tourism adds to broader economic challenges facing Western Australia. While the state has benefited from strong mining and resources sectors, the services industry—particularly tourism—remains vulnerable to external shocks.
Economists warn that prolonged weakness in tourism could have spillover effects on related industries such as hospitality, retail, and transport. The loss of jobs in regional areas could also exacerbate population drift to the city.
“Tourism is a major employer in WA, especially outside of Perth. If this downturn continues, we could see lasting damage to the fabric of regional communities,” said Dr. Emily Chen, an economist at the University of Western Australia.
Looking Ahead
Despite the gloomy outlook, some operators remain cautiously optimistic. They hope that government intervention and a potential easing of cost-of-living pressures later in the year could lead to a recovery in domestic travel.
However, for now, the focus is on survival. Businesses are cutting costs, diversifying their offerings, and targeting niche markets to stay afloat.
The Tourism Council WA plans to release a full report on the survey findings next week, along with a set of recommendations for the state government.
