Iran conflict impacting Australia’s accommodation sector
Softening travel confidence, weaker forward bookings and rising fuel concerns are beginning to affect accommodation operators across Australia, according to Accommodation Australia.
Australia’s accommodation sector is beginning to feel the effects of the Middle East conflict, with industry leaders warning that weaker travel confidence is already impacting bookings and regional tourism activity.
The issue dominated discussions when the national board of Accommodation Australia met in Adelaide this week alongside the AHICE Conference.
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Accommodation Australia CEO James Goodwin said new occupancy and forward booking data presented by AA partner CoStar STR showed growing signs of softer consumer confidence as international uncertainty continues to affect travel sentiment.
“It’s clear consumers have less confidence to travel and member properties are feeling the effects of the conflict,” he said.
Mr Goodwin said accommodation operators were also facing increasing pressure from rising fuel costs and fuel availability concerns, particularly in regional and remote areas reliant on drive tourism.
“I think clear messaging and improved fuel information will go a long way to improve consumer confidence and get people back out on the road,” he said.
Accommodation Australia recently partnered with the Tourism and Transport Forum to help draw attention to the issue.
Despite the challenges, Mr Goodwin said the accommodation sector remained resilient, with strong member engagement helping operators manage ongoing uncertainty.
“We need all governments to work with tourism operators to continue to promote Australia to new and existing international markets,” he said.
“The uncertainty and challenges will continue but the accommodation sector is resilient and member engagement and support has been strong to help manage the headwinds.”
Workforce pressures also remain a concern across the country, with Accommodation Australia highlighting the continued importance of its ‘eeger’ employment platform, which now has close to 16,000 registered job seekers.
The board also received updates on measures aimed at improving visa processing as the sector continues to rely heavily on migration to support staffing needs.
Accommodation Australia Chair David Mansfield said meeting directly with members during uncertain periods remained important for the organisation.
“In uncertain times it is crucial to listen to our members and assure them the organisation is at the table with key decision makers, making sure their needs are heard in the corridors of power,” he said.
