One of the largest charter and tour bus companies operating in Central Australia has pulled its business out of Alice Springs, citing "external challenges" facing the region.
ATG Downunder, which offers a range of travel services to destinations including Uluru, Kings Canyon, and the MacDonnell Ranges, will relocate its assets to Darwin to focus on growing its business in the Top End.
In an email to employees obtained by the ABC, the company, which operates across Western Australia and the Northern Territory, said the decision to close down its Alice Springs arm had "not been made lightly".
"ATG have made the unenviable decision to cease tour and charter operations from our Alice Springs business," the email reads.
"The external challenges within the region have resulted in our inability to effectively operate our business.
"We are forever grateful for the support and commitment that you have provided ATG and our clients over this time."
It was unclear how many employees would be impacted by the decision.
The move comes as central Australia's tourism industry stares down the barrel of a languishing tourism season, resulting from soaring airfares and negative media attention around the crime crisis engulfing Alice Springs.
It comes after Qantas confirmed it was planning to cut 30,000 seats to the region during the 2023 peak tourism season.
Tourism Central Australia [TCA] chief executive Danial Rochford said the challenges facing the industry had been a slow burn since the COVID-19 pandemic.
"We are still very fragile post-COVID, and it's just little things that will make a huge impact, and unfortunately ATG's had to make this difficult decision," he said.
Mr Rochford said "nothing surprised" him in the current environment, and called for additional support to prop up tourism businesses and operators.
"You just have to walk up the Todd Mall," he said.
"We are an industry that needs support at the moment.
"We're very thankful for the start of that support that the government announced last week, and we're hopeful that our governments at all levels can continue to support our industry as we move forward."
The NT government recently rolled out a suite of new funding supports for the industry, including an advertising campaign and voucher scheme to help bring more visitors to the Red Centre.
But Mr Rochford said the measures didn't go far enough.
He said he had met with many tourism operators in Central Australia who were looking to sell their businesses.
"That may be to other operators or it may potentially mean closing down, but I think a lot of people are really strongly considering their future," he said.
ATG Downunder has been contacted for comment.
