Today’s release of figures for international passenger arrivals into Melbourne underlines the need for the Federal and State Governments to do further work to encourage more direct flights into Melbourne.

 

Melbourne Airport’s international passenger numbers have grown by 2 percent over 2005/06, which compares to Australian international passenger growth of 4.8 percent.

 

"In the years 1996/97 to 2004/05, Melbourne led international passenger growth among all major airports with annual growth of 7.5 percent, compared to Sydney on 3.7 percent and Brisbane on 5.7 percent", says VTIC Chief Executive Officer, Mr Wayne Kayler-Thomson.

 

"Melbourne Airport has fought hard to grow market share since its privatisation and new direct flights from non-Australian carriers have added to the strength of Melbourne as a tourism, event and investment destination.

 

"Foreign airlines are important to Melbourne because, they have delivered Melbourne’s international airline seat growth since 2000. Qantas has reduced its group’s seats (Qantas, Australian, Jetstar) since 2000 by 6.5%, and Qantas seats, the majority player in the group, by 17%. Foreign carriers during the same period have added 30%.

 

"Travellers want direct, same plane internationals services to major business and leisure destinations.

 

"This is important in terms of attracting tourists, business travellers and corporate head offices.

 

"For example, a domestic flight from Melbourne to an international Sydney transfer adds 4 hours each way to a journey when check-in, flight time and Sydney terminal transfer is included.

 

"Domestic transfers will also repel business from the growing north Asian holiday market that typically has 7 days in Australia. A domestic transfer takes 4 hours minimum door to door, making a potential Melbourne visit a half day of travel and transfers on a 7 day itinerary.

 

"Overall, this is a seat supply issue, not a demand issue. VTIC understands that several foreign airlines want to fly to Melbourne, either as newcomers or as providers of extra flights, but air service agreements have not yet been reached between the Federal Government and their country of domicile.

 

"However, between 2004 and 2006, seats into Melbourne (northern hemisphere winter) have fallen from 73,683 to 66,088.

 

"We are particularly concerned that, coincident with poor recent international passenger growth, international overnight visitor numbers to regional Victoria decreased by 9 percent for the year ending March 2006, compared to the previous year.

 

"In contrast, between 1999 and 2004, international overnight visitors to regional Victoria grew by 31.9%, roughly coincident with a period when there were an increased number of international flights to Melbourne.

 

"Regions that experienced a greater than average decline in international overnight visitors included the Grampians (-43%), Murray (-24%), the Great Ocean Road (-22%), Gippsland (-21%), Goldfields (-15%), and the Mornington Peninsula (-13%).

 

"Airline seat capacity is vital to international tourism growth, both in major cities and regional areas. Quite simply, no matter how Victoria is promoted, if international visitors can’t get a flight here, they will go somewhere else," says Mr Kayler-Thomson.

 

 

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