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SYDNEY - Overseas tourists are spending more at travel agencies in Australia, despite the increasing popularity of online travel providers.
International visitors spent A$1.5 billion ($1.7 billion) on their Visa cards in Australia during the September quarter, an increase of 4 per cent on the same period a year ago, according to the latest available data from card group Visa International.
The largest rise in spending occurred at travel agencies, with cardholder spending climbing 22 per cent to A$108 million.
This was followed by hotels, with a rise of A$8.8 million, and business services, with an increase of A$3.8 million.
Travel agencies are thought to be losing a lot of their business to their online counterparts, but Visa International's executive vice-president for Australia and New Zealand, Bruce Mansfield, said spending was growing at both types of travel providers.
"We are seeing continued growth in online spending and expect this to continue [in 2007]," he said.
"However, as the economy continues to grow, we are also seeing a general increase in spending at travel agencies as more and more people travel."
Industry analyst IBISWorld estimates that Australia's travel agencies services generated A$2.451 billion in revenue in 2005/06, representing real revenue growth of 1 per cent.
IBISWorld says the industry continues to face significant operational challenges from online and direct bookings.
The industry's future will continue to lie in seeking out corporate/business accounts and concentrating on inbound and outbound travel - away from domestic airline travel, it says.
IBISWorld believes that the industry may face a brighter future if fees for service instead of commissions become the norm.
- AAP
