Additionally, operators slashed prices with an aim of attracting customers. Take note that domestic tourism accounts for 75% of total industry revenue. In 2010-11, domestic tourism nights are anticipated to grow up to 256 million after three years of decline (Pambudi, 2009).
During the financial crisis the globe experienced the worst economic performance. Australia’s economy was equally affected. The Conditions were changing quickly and expectations were deteriorating rapidly. It should be noted that tourism spending fell more than consumer spending on average. There was a cocooning effect with both international and Australian tourists less not willing to travel to destinations far from home (Ramis Corporation, 1995).
These impacts were observed in Qantas’ profit downgrade, which led to large staff decrease and reduced capacity. Internationally the key business, conference and holiday tourism markets which are the backbone of tourism industry performance declined. It can be remembered that January and February 2009, the number of visitors arriving in Australia for business dropped by 16.5 per cent and conference visitor numbers fell by 28.7 per cent. This had a negative impact on economy.
But it is important to note the economy is gradual growing after the crisis. There is a positive index of economic growth. Take for example the previous year international visitors injected around $25 billion in to the Australian economy and this would benefit everyone. Also it provides valuable employment to around half a million of the Australians (Peisley, 1992).
During the crisis the tourism industry was negatively impacted and this affected the technology sector. It was observed that many small to medium technology firms are drivers of productivity for majority of sectors including the tourism.