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Australian tourism 'in crisis'
by Staff Writers
Sydney (AFP) Nov 10, 2011


Australia's ailing tourism industry on Thursday warned it was in crisis, with arrivals in September slumping as its soaring dollar and global economic woes kept visitors away.

There were just 432,200 international visitors to Australia in September according to Australian Bureau of Statistics figures released this week, compared with 790,600 cashed-up locals jetting off overseas.

It was a 9.0 percent plunge from the same period last year, with arrivals contracting in the nine months since January.

The numbers of Australians taking a foreign holiday, meanwhile, has grown 10.3 percent across the calendar year, with 5.70 million departures as people take advantage of the strong Aussie dollar, which hit a record 110.81 US cents in July.

Tourism Minister Martin Ferguson said global events like Ramadan, reducing visitors from Indonesia and Malaysia, and the Rugby World Cup luring visitors to neighbouring New Zealand, had also made it an especially tough month.

Australia's key inbound markets were also struggling, Ferguson said, with Japan working to recover from March's huge earthquake and tsunami and high levels of economic anxiety and unemployment in the United States and Europe.

The tourism industry warned it was at breaking point after a steady decline in visitors due to the dollar's prolonged run above greenback parity, compounded by natural disasters and the recent shock two-day Qantas grounding.

Resort islands were literally closing down across the Great Barrier Reef and jobs were being axed as visitor numbers dried up, turned off by the high prices, said Tourism and Transport Forum chief John Lee.

He likened tourism's crisis to that facing the nation's auto and steelmakers and said non-mining regional Australia was "at the eleventh hour, in major shock," calling for government help for tourism-dependent towns like Cairns.

"There's this general attitude or malaise in a political sense where people say 'Well, tourism's fun so we can't help them out'," Lee told AFP.

"What people don't realise is our industry employs six times the number of people employed in mining, we're the heavy lifter of employment in the country."

Lee said the industry needed a major cultural overhaul, with no sign of recovery in Europe or the US for at least 12 months, and Asian markets, especially China and India, looking to pick up the slack.

"We need to put serious marketing dollars into these growth markets to cover for the losses we're getting in the traditional markets," he said.

"It's really important if you want to stem the number of job losses in our industry."

Chinese visitors jumped 19.2 percent in the nine months to September and Lee said the Asian giant would overtake Britain as Australia's second-biggest inbound group after New Zealand in a matter of months.

Qantas is to launch an A380 superjumbo on its Hong Kong route from January, describing it as a key market, and the Australian Tourism Export Council said it was a "great investment where we need it most."

"These new services will provide additional capacity on key growth routes for Australia in the all-important Eastern markets," said ATEC chief Felicia Mariani.

Qantas has announced a major Asia-focused restructure of its international business by starting two new airlines, Jetstar Japan and a premium carrier rumoured to be headquartered in Kuala Lumpur or Singapore.

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Qantas puts Hong Kong on A380 network
Hong Kong (AFP) Nov 10, 2011 - Troubled Australian carrier Qantas said Thursday it would add Hong Kong to its network of A380 routes from January with four flights a week to Sydney in its newest aircraft.

"Qantas will operate four return services per week between Hong Kong and Sydney from 15 January 2012," Qantas chief executive Alan Joyce said in a statement.

"Our A380 fleet has continued to generate extremely positive feedback from our customers since its introduction, and we are pleased to now add another destination to our A380 network."

Qantas has launched a public relations blitz after the recent two-day grounding of its global fleet due to an industrial dispute with workers, which left some 70,000 travellers stranded in 22 cities around the world.

Canberra was forced to step in to prevent huge damage to the Australian economy and end all industrial action at the airline, but furious passengers have vowed never to fly Qantas again.

The firm's image took another blow Friday when an engine problem saw a Qantas A380 diverted to Dubai, a reminder of the engine explosion that temporarily grounded its entire superjumbo fleet a year earlier.

Joyce kicked off the public relations offensive Sunday with a Aus$20 million (US$21 million) offer of a free return flight within Australia or between it and New Zealand for every customer stranded by his decision to ground the airline.

Announcing the A380 service to Hong Kong, the airline said Hong Kong was a "key market" for Qantas.

Qantas would receive its 11th and 12th A380s later this year, providing capacity for four return services a week to Hong Kong.

It said A380 services between Melbourne and London via Singapore would increase from six flights a week to daily, and services between Melbourne and Los Angeles would increase from four flights a week to daily.



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TRADE WARS
China's exports, imports fall in October
Beijing (AFP) Nov 10, 2011
The value of China's exports and imports fell in October from the previous month, official data showed Thursday, as domestic tightening measures and turbulence in Europe and the United States hit demand. The data is likely to fuel concerns over the country's manufacturing sector, which employs hundreds of millions of people and is a key driver of the world's number two economy, while boostin ... read more


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