Petrol Changing The Family Getaway: NRMA Report

Author: NRMADate: 05 August 2008

The traditional family getaway has been significantly affected by petrol prices with families choosing to holiday closer to home and spend less, according to NRMA Motoring & Services’ first-ever Travel Habits survey.

NRMA's survey of almost 1,300 motorists in NSW and the ACT found petrol prices (54%) were having a greater impact on the public’s holiday plans than interest rates (44%).

The survey found almost two-thirds (61%) were changing their destination closer to home and 60 per cent cutting back on holiday spending.

NRMA is one of the state’s main players in tourism and travel - investing more than $275 million in hotels, holiday parks, travel services and car hire over the last four years.

Almost two-thirds surveyed (61%) said they would reduce their holiday spending with the majority expected to cut up to $500 from their holiday budget. Attractions (71%), shopping (62%) and nights out (55%) were expected to be slashed from the family holiday budget.

The findings were reflected in a corresponding NRMA survey of 55 tourist destinations, which found 74% reported a drop in revenue because of rising petrol costs.

More than half (52%) said if rising petrol costs were not addressed the long-term future of their business would be jeapordised. NRMA President Alan Evans said the NRMA’s first in a series of travel surveys identified a clear challenge for tourism industries in NSW and the ACT.

"It was assumed that petrol prices would impact on the tourism industry but nobody expected the traditional Australian family holiday to have changed so much," Mr Evans said.

"With only seven per cent of those surveyed saying they had cancelled their holiday because of petrol prices it is clear the tourism industry can withstand this storm.

"However, the decision by families to slash their spending by up to $500 and to holiday closer to home means an urgent campaign is needed to boost local tourism."

The NRMA believes a new campaign is needed to promote destinations further from metropolitan areas and encourage people to support local businesses.

With airline tickets becoming dearer because of rising fuel costs, the NRMA is urging NSW residents to consider holidays in NSW and the ACT to support their tourism industries.

"With families wanting to cut their travel to reduce petrol costs, tourist destinations further from metropolitan areas could suffer, particularly in areas already struggling with the effects of drought," Mr Evans said.

"That is why we want to see a new campaign promoting destinations on the far south coast, far north coast, ACT and western NSW."

In a first of its kind, the NRMA individually surveyed 55 tourist destinations about the impact petrol prices were having on their business. The selection of destinations contacted by the NRMA reported that:

• Almost 80 per cent (78%) believe there would be more visitors if petrol were cheaper
• 50 per cent have experienced a drop in visitor numbers
• 37 per cent have experienced a drop in visitor-spending at their destination
• 43 per cent have experienced a drop in bookings

Mr Evans said the findings highlighted that no part of the economy was immune from the negative effects of rising petrol costs.

"Almost 20 per cent of the tourist destinations the NRMA surveyed said they would be forced to lay staff off and a further 55 per cent will have to cut back on operating costs," Mr Evans said.
"If ever we needed a motivation to end the nation’s dependence on foreign oil and transform Australia’s transport energy future once and for all then this is it."

The NRMA recently released the Jamison Report, which provides a road map to wean the nation off its dependence on foreign oil and begin developing an alternative transport energy future that is greener than oil, less volatile and cheaper for Australian families.

This report is available at www.mynrma.com.au