The announcement this week by the Federal Government to boost airline capacity between Australia and the United Arab Emirates will deliver much needed international seat capacity to Australia, but more needs to be done, says VTIC.
Acting Prime Minister and Minister for Transport and Regional Services, Mark Vaile announced on Monday an agreement between the UAE and the Australian Government that will enable Etihad Airways to commence daily services to Australia from early 2007
“While this move is welcome, it is a small first step towards what should be an `open skies’ policy in Australian aviation”, says VTIC Chief Executive Officer, Mr Wayne Kayler-Thomson.
“We are also pleased to hear of reports that the Federal Tourism Minister Fran Bailey is lending her support to a proposed study into the economic benefits of an open skies policy, as well as strong support for an `open skies’ policy from State Opposition industry spokesperson David Davis.
“The proposed change in ownership structure at Qantas provides further impetus to move towards such an outcome.
“Foreign airlines are important to Melbourne because, they have largely delivered Melbourne’s international airline seat growth since 2000. Qantas has reduced its group’s Northern Summer seats (Qantas, Australian, Jetstar) since 2000 by 5.6%, and Qantas seats, the majority player in the group, by 14.7%. Foreign carriers during the same period have added 21.4%. In terms of Northern Winter seats, Qantas group has increased its seats by 1.1% over the same period while Qantas itself has reduced seats by 15.9%, compared with foreign carriers who have increased seats by 10.8%.
“Travellers want direct, same plane international 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 including Emirates 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.
“International overnight visitor numbers into Victoria increased by 7 percent in the year ending September 2006, boosted in large part by the Commonwealth Games – it is vital that this momentum is underpinned by the availability of direct international flights.
“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.
Background - what is VTIC
The Victorian Tourism Industry Council (VTIC) is the peak policy council for the Victorian tourism industry.
To arrange media interviews with VTIC, call Chris James on 0417 353 650 |
