Tourism downturn forecast by Margaret River-Busselton Tourism Association

The great pandemic travel bubble looks to be a bust. Accommodation providers across the Margaret River region are reporting a steady drop in bookings at the same time the Capes’ key tourism body foreshadows challenges ahead. Margaret River-Busselton Tourism Association chief executive Sharna Kearney this week said operators could expect a downturn in the months ahead, based on emerging travel trends. “We are expecting that visitor numbers over the coming year will soften, as the barriers of overseas competition and cost of living outweigh the drivers of a recovering interstate international markets and low unemployment,” Ms Kearney said. “Last year was a record year in terms of visitor numbers and spend as a result of returning interstate and international visitation, and an intrastate market that continued to holiday at home. “We are already seeing evidence of this decline with many businesses reporting a drop off in the second week of the school holidays, and another significant drop at the end of school holidays.” The forecast follows accommodation providers noting booming occupancy rates during the past two years, buoyed by the Perth market cooped up during the lockdowns of 2020, were now dropping – in some case, dramatically. The Times recently reported a similar downturn in the real estate market which was likewise buoyed by the pandemic, with a significant decrease in listings signalling the end of that boom too. Sharpening interest rates and the return of international travel – plus the perennial Western Australian phenomenon of heading north during the winter – were considered key factors. Operators who pivoted their offering for the Perth market could now be forced to rethink their business plans yet again. Ms Kearney said the expected downturn would be a mixed bag for operators depending on their reliance on interstate and international visitors, who accounted for about 20 per cent of the market. “It was acknowledged that the while we, as an industry, will need to continue to adapt to evolving economic conditions, we must also be take a longer-term view of how we build a robust, sustainable and competitive tourism destination,” the chief said. “To support this, MRBTA has moved from a ‘destination marketing’ approach to a more holistic ‘destination management’ approach, with place and people at its centre.” At an industry forum earlier this month, MRBTA outlined its strategic thinking which included projects undertaken by its new Capes Foundation division. Figures from March showed in-bound international travel had recovered to 81 per cent of pre-COVID-19 levels. Hopes were also tied to a new signature culinary event next year to rival the Gourmet Escape.