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Budget 2013/14 Northern Territory Economy



Budget 2013/14 Northern Territory Economy

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Tabled paper 295


Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT




Tabled by David Tollner


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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170 Tourism 2013-14 Budget than domestically. It also reflects subdued international visitation due to the weak economic conditions in the Territorys key international source markets, as over 85percent of international visitors to the Territory arrive on a domestic flight. Both AliceSprings and Yulara airports also recorded declines in domestic interstate passenger movements (2.9percent and 4.3percent respectively), reflecting the overall weakness of the tourism market in Central Australia. However, by adjusting the available capacity, the airlines were able to maintain commercially sustainable services to the Territory despite the decline in the number of passengers at Territoryairports. In terms of capacity, in 2012 the estimated average annual weekly number of seats available in the Territory declined by 1.8percent to 35 268 seats compared with 2011. This decline was largely due to a substantial reduction in Jetstars capacity over a variety of routes, discontinuation of AirAsia flights, and the discontinuation of Tiger Airways flights to AliceSprings. Airline 2011 2012 Annual Change Qantas 16 863 16 514 349 Jetstar 11 996 10 476 1 520 Virgin Australia 3 631 5 599 1 967 AirNorth 1 525 1 737 212 AirAsia Indonesia 1 260 330 930 SilkAir 0 413 413 Sky West 145 119 26 Tiger Airways 480 0 480 Timor Air 22 44 22 Total 35 922 35 268 654 Note: Weekly capacity estimates related to the first week of the month. The inbound weekly seat capacity represents all available seats on all flights coming into Darwin, although for flights that transit through Darwin, only 50percent of the seats are considered as being available to passengers coming into Darwin and as inbound seats (the other 50percent are assumed to be occupied by transit passengers). Source: SABRE; Department of Business Outlook The continued strength of the Australian dollar as well as subdued economic and labour market conditions in many of the Territorys key international source markets are expected to continue to dampen international tourist numbers to the Territory in the short to medium term. Offsetting this, the number of domestic tourist arrivals is expected to continue to grow, primarily due to strengthening economic activity in the Top End of the Territory. The Territory Government has identified tourism as a priority area of development for the Territory economy as part of its threehub economic policy. This may help to strengthen visitor numbers over the coming years. Despite forecasts of strengthening global economic growth over coming years and a return to longterm trend levels from 2016 onward (seeChapter3: External Economic Environment), international tourism arrivals to the Territory are not expected to rebound strongly in the short to medium term. This primarily reflects forecasts for ongoing weakness in economic activity and subdued labour market outcomes in key source Table 13.2: Average Weekly Airline Seat Capacity into the Territory (domestic and international) International Outlook