Asian turmoil hits Australian tourism<\/p>\n
By Jack Taylor<\/p>\n
SYDNEY (AFP): Australian flag-carrier Qantas yesterday became
\nthe third airline to suspend flights from here to South Korea as
\nAustralia's tourism industry braces for the impact of a deepening
\nAsian economic crisis.<\/p>\n
Qantas Airways Ltd. announced the decision to suspend its four
\nweekly flights to Seoul from Feb. 1 because of a sharp drop in
\ndemand for seats amid deteriorating economic conditions in South
\nKorea.<\/p>\n
Qantas also suspended plans to codeshare with South Korea's
\nprivately-owned Asiana Airlines on four flights each week between
\nSeoul and Sydney.<\/p>\n
Earlier this week, Asiana announced it was halting its two
\nflights a week into the northern Australian resort of Cairns
\nwhile Air New Zealand suspended four flights a week from Auckland
\nand Brisbane to Seoul from Dec. 31.<\/p>\n
The airlines' decision confirms the worst fears of Australian
\ntourism authorities, which have been forced to drastically revise
\ntheir projections of growth in Asian tourist arrivals which had
\nbeen buoyant until recently.<\/p>\n
Before the crisis Asian countries which accounted for half of
\nAustralia's 4.1 million tourists had been tipped to grow at a
\nfaster rate than any other markets.<\/p>\n
After enjoying 17 percent growth in Asian arrivals in 1996,
\nthey had been looking forward to continuing with similar double-
\ndigit growth into the foreseeable future.<\/p>\n
But after slashing 1997 growth forecasts for the Asian market
\nfrom 16 percent to about six percent in October, the Australian
\nTourist Commission (ATC) admitted this week it is now
\nanticipating a protracted slump with around six or seven percent
\ngrowth expected for up to five years.<\/p>\n
Tourism from South Korea, which had been one of the fastest
\ngrowing markets, was expected to be worst affected along with
\nThailand and Indonesia.<\/p>\n
ATC deputy managing director Bill Calderwood said that while
\nthe forecasts might alarm the local tourism industry, the decline
\ncould lead to new business from elsewhere.<\/p>\n
\"It is true to say that we are disappointed the double-digit
\ngrowth can't be sustained, but it gives opportunities to develop
\na wider spread of business,\" he said.<\/p>\n
Qantas executive general manager commercial Geoff Dixon said
\nFriday that in the past month, the airline had experienced a 65
\npercent drop in demand for seats on the South Korea route,
\ncompared with the same period last year.<\/p>\n
\"We are receiving widespread cancellations from tour groups
\nand individuals,\" he said in a statement.<\/p>\n
\"Other airlines have also encountered a severe decrease in
\npassenger numbers and have adjusted their schedules.\"<\/p>\n
Qantas did not expect travel between Korea and Australia to
\npick up in the short to medium term, he said, adding: \"We will,
\nhowever, monitor the situation and review our decision when
\neconomic conditions have improved sufficiently.\"<\/p>\n
The airline will maintain sales staff in Seoul and Pusan and
\ncontinue to sell Australia on Qantas' codeshare services with
\nAsiana.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-turmoil-hits-australian-tourism-1447893297",
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