Australia’s tourism industry is facing a paradox: on the one hand, certain sectors are struggling, shedding jobs by the thousands; on the other hand, there are areas showing unexpected resilience. So, what’s really happening in this key industry, and why the mixed signals?
Let’s start by looking at some of the recent ABS numbers from the Tourism Satellite Accounts: Quarterly Tourism Labour Statistics, Australia (Experimental Estimates), released on 13th September 2024. In June 2024, the tourism sector employed a total of 634,400 people. Sounds impressive, right? Well, that’s down 11,500 jobs from the previous quarter, a 1.8% dip. But here’s where it gets interesting: over the year, tourism jobs have actually increased by 12,300, a 2% rise compared to June 2023. So, are things really getting worse, or are we simply seeing a temporary blip?
Accommodation Sector: A Surprising Decline?
One would assume that accommodation—a pillar of tourism—would be booming, especially as international borders have fully reopened. Yet, the sector has experienced a 2% drop this quarter, losing 1,500 jobs. Even more striking, on an annual basis, the sector has shed 3,900 jobs, down 5%. So, is the post-pandemic recovery not quite as rosy as we thought? Or could it be that operational costs and a changing workforce are playing a part in this downturn?
Despite these losses, accommodation remains a major employer with 74,000 people still holding jobs in the sector. Is this just a temporary lull, or does the industry need a serious rethink to adapt to changing tourist habits?
Restaurants and Pubs: Bustling or Busted?
You’ve probably noticed that cafes and restaurants are often packed, so why would the hospitality sector be shrinking? The numbers suggest something else is going on. Food services like cafes, restaurants, and takeaways lost 3,000 jobs June quarter, a 1.5% decrease. More concerning, there’s been a whopping 8.2% decline over the year, with 17,600 jobs gone. Are rising costs forcing businesses to cut back on staffing? And how sustainable is this trend in the long run?
Meanwhile, pubs, taverns, and bars also followed suit, with a 2.9% drop in jobs this quarter and an 8.1% decline over the year. That’s 3,600 fewer jobs in places many of us frequent. Yet, does it feel like there are fewer staff, or is the impact being felt more behind the scenes?
Transport: Wheels Keep Turning (Barely)
One bright spot, although a small one, is road transport and equipment rental, where jobs increased by 100 this quarter. However, the sector is still down 1.4% for the year. It’s a sliver of good news in an otherwise volatile area. Could this hint at growing demand for domestic travel options as air travel remains expensive and less accessible for some?
Air, water, and other transport, on the other hand, have seen some turbulence, with a 7.2% quarterly decline in jobs, losing 2,700 positions. But here’s the twist: over the year, this sector actually added jobs, with a 2% increase. Could this be a sign of resilience, or are we in for more job losses as global economic pressures weigh on the industry?
Travel Agencies: A Surprising Comeback?
In an unexpected twist, travel agencies and information centres, which many predicted would struggle post-pandemic, have seen annual growth of 14.1%, adding 4,500 jobs. This despite losing 1,100 positions in the last quarter. Is this the result of the resurgence in international travel? Or perhaps a reflection of the growing complexities of post-pandemic travel rules that require more human touchpoints?
Culture and Recreation: Where’s the Revival?
The cultural sector, which many hoped would bounce back as people return to museums, theatres, and galleries, has struggled. It lost 1,500 jobs this quarter, a 9.9% decline. Over the year, this sector has shrunk by 4.2%. Will a revival in arts funding be enough to turn things around, or are deeper systemic changes needed to make these jobs more sustainable?
Sports and recreation have taken an even bigger hit, with a 12.6% drop this quarter, losing 5,400 jobs. Still, the sector has grown by 3.6% over the year. Can sporting events like the upcoming Australia vs. India cricket series provide a much-needed boost to this struggling industry?
Male employment has declined by 4,200 jobs this quarter but grown by 3.2% over the year. Female employment, on the other hand, took a larger hit this quarter, with a 2% decline
Retail: A Small Spark of Hope
Retail is one of the few sectors with positive news, showing a 1.2% quarterly increase and adding 2,100 jobs over the year. Education and training are also thriving, with an eye-popping 80.9% annual increase—30,000 new jobs. With so much focus on skills development in Australia, is education now the hidden powerhouse of the tourism job market?
Full-time vs Part-time: Who’s Winning the Battle?
Full-time jobs make up 50.3% of tourism employment, with 318,900 positions. Yet, these roles have dipped by 9,400 this quarter. In contrast, part-time jobs, which account for 49.7% of the sector, have seen smaller losses of 2,100 positions. With many businesses tightening their belts, are we seeing a shift towards more part-time, flexible employment? And what does this mean for job security in the sector?
The Gender Divide: A Tale of Two Trends?
The gender breakdown reveals an intriguing story. Male employment has declined by 4,200 jobs this quarter but grown by 3.2% over the year. Female employment, on the other hand, took a larger hit this quarter, with a 2% decline. Is this disparity a reflection of the types of roles men and women typically occupy in tourism? Or does it point to deeper issues in the sector’s recovery?
Looking Ahead: Can Summer Save the Day?
As we move into the second half of 2024, the tourism sector remains at a crossroads. The June figures offer a mixed bag, and while some areas show signs of growth, others are clearly struggling. Insolvencies are rising, with over 7,000 companies entering administration in the first nine months of this financial year. Adding to this uncertainty is the global economic backdrop, where global liquidity has been rising due to looser monetary policies across major economies. Some analysts are even predicting interest rate cuts by the end of the year as central banks seek to stabilise their economies amid mounting recession fears.
Will the upcoming summer season, coupled with high-profile events like the cricket series, be enough to inject some much-needed life into tourism?
With international visitors expected to flock back, particularly from India, could we see a reversal of the current job declines in sectors like hospitality and accommodation? The next few months will be crucial in determining whether these sectors can weather the economic storm and thrive once again.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
🛫🇦🇺 Australia's #tourism sector shows mixed signals: job losses in hospitality & accommodation, yet resilience in transport & travel agencies. 📉 Is this a temporary blip or a deeper trend? Share your thoughts in the comments! ✈️ #TheIndianSun @ABSStatshttps://t.co/0Axju8ibQJ
— The Indian Sun (@The_Indian_Sun) September 14, 2024
Donate To The Indian Sun
Dear Reader,The Indian Sun is an independent organisation committed to community journalism. We have, through the years, been able to reach a wide audience especially with the growth of social media, where we also have a strong presence. With platforms such as YouTube videos, we have been able to engage in different forms of storytelling. However, the past few years, like many media organisations around the world, it has not been an easy path. We have a greater challenge. We believe community journalism is very important for a multicultural country like Australia. We’re not able to do everything, but we aim for some of the most interesting stories and journalism of quality. We call upon readers like you to support us and make any contribution. Do make a DONATION NOW so we can continue with the volume and quality journalism that we are able to practice.
Thank you for your support.
Best wishes,
Team The Indian Sun
