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Backpacking industry told to innovate

The CEO of Recreational Tourism Group, Campbell Shepherd, told the Conference that the industry needs to 'innovate or die'.

He told delegates dropping prices means lowering profit margins.

"It will only bring everyone else down with you," he warned.

He cited various factors that have affected the backpacking industry in Australia, including how the high dollar is shortening length of stay and spending, the increase in UK university fees, and it's cheaper for overseas visitors to head to the United States than it is to come to Australia. But he said Australia is the place to come for highly paid work to fund travelling.

"The industry has become pedestrian. There are very little new products and ideas in the market. I can't remember the last time anyone had something new, exciting, different and blows people out the water," Mr Shepherd warned. "We've got a poor industry profile in the media – it's sensationalistic. Where are all the good news stories about all the great things we're doing? It's something we need to change," he said.

"We need to innovate or die."

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