Rising petrol prices are causing tourism operators considerable hardship, with the hotel-motel sector particularly affected, according to a survey by Victoria's peak tourism industry body.

The Victorian Tourism Industry Council (VTIC) surveyed almost 160 tourism businesses across the State in September, ranging from major CBD attractions to regional bed and breakfasts.

"A total of 47 percent - almost half - of survey respondents indicated that the recent increases in petrol prices are a moderate, significant or critical constraint on their profitability, with only 11 percent reporting the rises to be no constraint," says VTIC Chairman Bob Annells.

"With petrol prices rising in Melbourne by roughly 30 percent over the past year, tourism operators are facing a "double whammy" as they are hit by significantly higher transport costs and also a reduction in consumer spending.

"Hotels and motels have been the hardest hit, with over 50 percent of those surveyed saying that the rising cost of petrol was a moderate, significant or critical constraint on their sales, costs and profitability.

"The tourism industry is not looking to Governments for short-term handouts in response to rises in petrol costs.

"What VTIC is calling on Governments to do is to reassure the industry that positive and proactive promotional measures will be maintained in coming State and Federal Budgets to ensure a buoyant tourism future for Victoria.

"Given the impact on the tourism industry of the rise in petrol prices, this is necessary to ensure that tourism can continue to play its vital role in our State's economy, directly and indirectly contributing around $10.6 billion per annum to Victorian output and employing more than 160,000 people," says Mr Annells.

Survey Results in Detail:

Impact of rising petrol prices on business performance

Respondents were asked to assess the impact of petrol price increases on performance across three key indicators: sales, costs and profitability. They were asked to indicate whether the impact posed a mild constraint, moderate constraint, significant constraint, critical constraint, or no constraint to business performance.

In terms of the impact on sales, 45 percent of all respondents rated increased petrol prices as a critical to moderate constraint, while 20 percent said it posed no constraint. The impact was greater on business costs, with 49 percent rating it a critical to moderate constraint. Respondents were also asked to assess the impact on overall business profitability, with 47 percent considering increased petrol prices to be a critical to moderate constraint.

Of the major tourism sub-sectors surveyed, the results indicate that hotels and motels are the most concerned about the rising cost of petrol, with over 50 percent indicating it is a critical to moderate constraint on sales, costs and profitability.

Background - what is VTIC

The Victorian Tourism Industry Council (VTIC) is the peak policy council for the Victorian tourism industry. Bob Annells chairs the Council, which represents key industry associations and operators, providing one united industry voice.