Analyse of the sector 30/11/2010
The tourism industry has its best year in 2008

Visitor numbers increased thanks to low air fares brought about by a decline in fuel prices in certain months throughout 2008. More families and older visitors had the confidence to travel and explore the country. All aircrafts entering Vanuatu were almost full. The occupancy rates of travel accommodation operators and sales of tour operators were at their highest in the review period. The number of visitors exceeded the vehicles available for car rental operators. All markets in the travel and tourism industry benefited from the surge in visitor numbers.

 

Tanna’s volcanoes become its most prized asset

 

The surge in visitor numbers brought a rise in trips to the island of Tanna, where the most accessible volcanoes in the world are located. Many visitors upon arrival realised that it was an interesting place to visit after meeting other travellers who had been there. As such, the number of visitors taking scheduled and chartered flights to the island rose significantly in 2008. Resort and hotel operators in Tanna saw a boost in guest numbers and their occupancy rates.

 

Competition remains friendly between operators in all markets

 

Because of the rise in arrivals, there was a large pool of visitors for all hotel, resort, tour, car rental and airline operators. A diverse range of visitors arrived in 2008, each with their own needs and budgets. Operators provided services which suited all visitors or catered to a specific group. Visitors had a wider range of services, destinations and accommodation from which to choose.

 

Online booking only favours the airlines

 

Not all hotel, resort, tour and car rental operators have online booking facilities. A few have their own systems which allow them to process payments electronically. Not all operators have the resources to establish the appropriate infrastructure to accept payments online. Because of the financial resources of the major international airlines, they were able to take advantage of the global rise in online bookings.

 

Most operators in all markets are uncertain about the future

 

The effects of the financial crisis in the US on the Australian economy are causing uncertainty amongst most operators interviewed for this report. Operators are concerned that fewer Australians will be able to afford to travel outside their country. Inflation and the potential rise in interest rates could reduce their incomes, and hence their confidence in terms of travelling overseas. Most visitors are Australians, and a drop in arrivals from this country could reduce the revenues and profits of many operators.