Bushfires hit tourism sector

MELBOURNE - Victoria's tourism industry, which has suffered a body blow with the recent bushfires, is feeling nervous about its future.

The quarterly survey of business conditions within the tourism sector by the Victoria Tourism Industry Council (VTIC) says the industry is expecting weaker conditions.

Only 18 per cent of respondents indicated they anticipate their business performance would be "much stronger" or "somewhat stronger" over the next 12 months - down from 24 per cent on the previous survey.

VTIC chairman Jeremy Johnson said that during the 2009 summer quarter, profitability declined, influenced by ongoing wages growth.

"Over the coming quarter, general business conditions are expected to decline, along with many other business indicators including sales, profitability, employment and overtime," Johnson said.

He said the results highlighted that the bushfires, general economic decline and pressure on wages was affecting employment levels within the tourism sector.

"This is bad news when considered in the light of the large jump in unemployment in Victoria in recent statistics," Johnson said.

"Bushfires have put a dint in the confidence of the tourism sector and governments and their agencies can assist by encouraging Victorians to holiday at home this Easter and return to visit regional areas affected by bushfires or close to bushfire-affected areas."

- AAP