TICSA Tourism Barometer Report Jul – Sept 2024

The 2024 September Quarter Tourism Barometer showed activity rebounded but remained marginally below the neutral level in the quarter. The Business Activity Index has now been below the neutral level for five of the last six quarters, reflecting the ongoing impact of higher interest rates and elevated inflation on household disposable incomes and, consequently, travel intentions.

The Business Outlook Index rose sharply, to move above the neutral level in the September quarter. This was a very promising development given the index had been below the neutral level for four of the previous five quarters. Taken in addition to the improvement in the Activity index, this suggests the worst may be behind the South Australian Tourism sector.

However, a variety of challenges remain, including increasing costs, which are putting the squeeze on the bottom line for many tourism businesses.