Fuel excise cut welcomed as Easter travel set to support regional tourism jobs

The Australian Tourism Industry Council has welcomed the Federal Government’s decision to halve the fuel excise on petrol and diesel for three months, saying the move should help families stay on the road during the Easter and school holiday period while supporting regional tourism operators and local jobs.

With regional tourism generating an estimated $15.4 billion in visitor spending and supporting around 53,700 jobs in the June quarter, ATIC said the timing is significant for destinations that rely heavily on peak holiday travel.

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ATIC CEO Erin McLeod said the announcement reinforces the importance of Australians continuing with their travel plans during one of the busiest periods on the tourism calendar.

“The decision to ease fuel costs will make it easier for families to get on the road these school holidays and continue supporting regional destinations,” Ms McLeod said.

Prime Minister Anthony Albanese announced on Monday that the fuel excise would be cut by 26.3 cents per litre for three months, reducing the cost of a 65-litre tank by nearly $19.

Keeping Australia moving

At a press conference, Mr Albanese stated that he wanted Australians to stick to their Easter travel plans.

“One of the things that we’re determined to do is to make sure that we do keep Australia moving, as the National Fuel Security Plan says.

“We want that to occur. People should enjoy their Easter. And it’s important as well that we keep the economy going. Easter is an important time for tourism destinations, for jobs. They rely upon that.”

Ms McLeod said the Easter school holiday period is one of the most important times of year for regional tourism businesses, with many operators relying on the peak travel window to sustain jobs and economic activity in their communities.

“That message is especially important heading into the Easter school holidays. Every trip taken, particularly to a regional destination, directly supports local businesses and the people they employ,” she said.

ATIC said it will continue working with the Federal Government and state and territory governments to support clear, consistent messaging and the ongoing strength of Australia’s visitor economy.

Shorter, closer trips likely

Caravan Industry Association of Australia (CIAA) general manager research and insights Peter Clay said in a recent post that fuel pressures were likely to amend Australians’ travel plans, rather than stop them.  

“However, we have seen a gradual softening in length of stay and a shift towards shorter trips closer to home over this period, reflecting tighter household budgets and increased international competition.

“Nights, rather than trips, may be where pressure emerges most clearly.”

“In that context, the caravan park sector is likely to remain relatively resilient. Being located closer to major population centres, combined with booking flexibility and the ability to help Australians manage their travel budgets, are clear advantages for our sector.”

Survey suggests half of Australians changing Easter plans

In the immediate term, though, a Pureprofile survey has suggested 50 percent of Australians were changing their Easter plans due to rising fuel prices.

The snapshot of around 1000 people showed that, of the number who said their plans had changed, 54 percent had decided to stay home. 33 percent said they would be travelling shorter distances, and the remaining 13 percent had either cancelled or postponed their trip.

Of the 37 percent who said they’d be travelling over Easter, the majority were staying in state or making day trips only. Just 7 percent were travelling interstate. 

Travellers may not benefit from fuel savings, AAA warns

The Australian Automobile Association (AAA), expressed reservations that the full fuel excise saving would be passed on to travellers and other consumers.