Research suggests backpacker industry ‘in crisis’
Australia’s backpacker industry is ‘in crisis’, according to new figures from Tourism Research Australia.
The number of people staying in hostels has decreased by nearly seven percent in the year ending March 2012 in every state in Australia, according to an article in The Herald Sun.
There was also a 20 per cent fall in backpackers from the UK – Australia’s largest source market – since 2010.
A number of factors have been blamed for the decline, such as the strong Australian dollar, global economic uncertainty, increased competition from cheap Asian destinations, unpredictable weather and tight regulations.
Brendan McKenna from Base Backpackers said, “Sydney is very quiet… If Sydney is empty it is very worrying.”
This decline is expected to have lasting effects on the future of the tourism industry in Australia.