Australia tourism hit by terror

Australia tourism hit by terror

SYDNEY, Australia (AP): The terrorist attacks in New York and Washington plus the demise of Australia's second largest airline will take a heavy toll on Australia's lucrative tourism market, authorities said Monday.

Australia's Tourism Forecasting Council last month slashed its projection for international arrival figures down to a 4.5 percent growth rate from 8.3 percent growth due to the slowing global economy.

But after the terrorist strikes on the World Trade Center in New York and the Pentagon last Tuesday and the collapse last Friday of Australia's second largest domestic airline, Australian Tourist Commission managing director Ken Boundy said even that revised target would be hard to meet.

In the 12 months to last July, Australia had 5 million visits from international tourist. The Sydney Olympics were staged during that period.

"We will be doing well to maintain these numbers in the 12 months," said Boundy, who declined to speculate on the financial implications for the tourism market.

"We still predict that in the next 10 to 15 years tourism will be the number one or number two industry in Australia," he said.

Domestic media reported that Australia could face a zero or even negative growth for the next 12 months, costing an estimated A$1.7 billion (US$873 million) in lost earnings.

The ATC, the government's overseas tourism marketing arm, predicted the number of travelers from the United States will plunge due to concerns about flying.

Ansett, Australia's second largest carrier, which collapsed last Friday amid mounting debts, brought only four percent of visitors into Australia but as part of the Star Alliance network, it was a major player in domestic connections.