Purpose
The June Quarter 2023 saw the first decline in net business activity since the opening of Western Australia’s borders. Net business activity was -17%, however business activity varied significantly by region. Australia’s North West region reported -68% net business activity consistent with the impact of the Kimberley Floods. Respondents’ comments suggested that that Australia’s Coral Coast was bolstered by the Solar Eclipse event with a net positive business activity of 2%.
Intrastate business activity had the worse decline at net -22% which had a strong impact on Australia’s South West (-31%). Businesses reported net positive activity of 5% for international and -1% for interstate as the top performing markets.
Negative factors included declining destination visitation, weaker economy, rising cost of fuel, unfavourable weather and high cost to travel to the destination. Positive factors included increased visitors to local destination, reduced covid impact from 2022, introducing a new product or service and increased digital presence.
Tourism businesses continue to increase prices in response to rising costs but at a much lower rate and occupancy / usage of business capacity declined.
