The Victorian tourism industry is concerned at today’s decision by the Reserve Bank to raise interest rates by 25 basis points.

“This interest rate rise follows fuel price rises that have hurt the tourism sector, particularly in regional areas”, says VTIC Chairman Jeremy Johnson.

“Along with building and construction, tourism is also an `interest rate sensitive’ sector of the economy.
 
“Apart from reducing operators’ profit margins and opportunities to borrow for further investment, we are particularly concerned about possible reductions in discretionary spending among consumers, who will be less likely to spend a night in a city hotel or drive to locations in regional Victoria.

“Tourism is also a big employer, particularly in regional Victoria, and this interest rate rise may also affect hiring intentions”, says Mr Johnson.

Background - what is VTIC

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.

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