Territory Stories

Territory economic review

Details:

Title

Territory economic review

Creator

NT Treasury, Economic Analysis Division

Collection

Territory economic review; Department of Treasury and Finance newsletters; PublicationNT; E-Journals

Date

2001-10-01

Notes

Date:2001-10; Made available via the Publications (Legal Deposit) Act 2004 (NT).; This publication contains may contain links to external sites. These external sites may no longer be active.

Language

English

Subject

Northern Territory -- Economic conditions -- Periodicals

Publisher name

Northern Territory Government

Place of publication

Darwin

File type

application/pdf

Copyright owner

Northern Territorty Government

Parent handle

https://hdl.handle.net/10070/212445

Citation address

https://hdl.handle.net/10070/716385

Page content

OCTOBER 2001 10 TERRITORY ECONOMIC REVIEW www.nt.gov.au/ntt/economic The Territorys live cattle market recovered strongly following the dramatic falls of the Asian crisis. While live cattle exporters have diversified into markets in the Middle East, particularly Jordan, Egypt and Israel, current trade growth has plateaued. TOURISM Recent events will be negative Current issues in the industry relate to the effect of the attacks in the United States on air travel and the world economy, which had been weakening anyway, and to the collapse of Ansett. In the short term, there is likely to be a contraction in tourism-related growth. This is evidenced by reports by accommodation providers and other tourism operators of lost business and weaker forward bookings. In addition, the developers of a planned $100 million accommodation, office space and retail development in Darwins Mitchell Street have decided to defer construction for six months because of concerns over the strength of the Territory economy. global growth was already weakening. Slowing economic growth in the United States since the beginning of 2001 has been followed by weakening growth in Europe and slowing in many Asian economies. In the past, deteriorating economic conditions in developed countries, such as occurred in the early 1990s, have led to reductions in the number of international visitors. Over two-thirds of international tourists to the Territory come from the developed economies of Europe, North America and Japan. but the outlook has deteriorated The prospects for Territory tourism will depend on the impacts that recent events might have on: The world economy. Outbound travel from the United States, Europe and Japan given fear of further terrorist attacks. Possible destination switching from these countries to Australia. Australia may become a preferred holiday destination. International air access including the cost of stricter security and insurance, reduced numbers of international flights and increased fuel costs. Domestic air access and the effect of increased airfares. Conversion by Australians from international to domestic travel. with attacks in the United States. The attacks in the United States will impact on the tourist industry as Americans cancel or defer travel. North American tourists represented about 13 per cent of all international tourists to the Territory in 2000-01 and these visitors tend to visit in the December quarter, closer to the height of the northern winter. In addition, other international travelers may reduce travel in the short term because of security concerns. and Ansetts collapse The collapse of Ansett is having significant immediate effects on Territory travel and tourism. Around 250 former employees of Ansett are based in the Territory and many other local jobs may be affected, particularly in the accommodation, cafes and restaurants sector, as well as travel agents, resorts and tour operators. The extent of the impact will depend on the nature and timing of the replacement capacity that comes on stream. Already the loss of Ansett seat capacity has been offset to a degree by extra Qantas services, international airlines carrying domestic passengers and the fast tracking of the entry of Virgin into the Territory market. While the peak September quarter tourist season has passed, the December quarter shoulder season is just beginning. Both interstate and international visitors are being affected. Most international tourists enter Australia via the bigger centres such as Sydney, Melbourne, Cairns and Brisbane. Differences in seasonality mean that the Centre region, which attracts the greatest proportion of international visitors, will be more impacted than the Top End. International visitors peak in the December and March quarters, corresponding to the Northern Winter, while interstate visitors favour the dry season months of the June and September quarters. One large Territory resort has indicated that lack of flights to the Centre has been responsible for over 1 000 room-night cancellations costing the business about $1 million. Further out, the shake up in the domestic air service industry has the potential to produce a more efficient air travel sector. Qantas is currently considering relaunching low-cost domestic operations under the revived Australian Airlines brand. Important, because tourism is a key sector Although tourism is not measured as a separate industry, economic activity generated by tourists has both direct and indirect linkages across a range of industries. Retail sales are boosted by tourist expenditure, as is expenditure on transportation and travel. Tourism also generates activity in the construction industry with the construction of hotels and other tourist related infrastructure. All of these have flow on benefits to the rest of the economy.


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