The post-pandemic honeymoon period for Queensland tourism may be dead after weaker than expected results over Easter.
The industry enjoyed a record-breaking run in 2022, capitalising on two years of pent-up demand after the start of COVID-19 but the cost of living crunch is being blamed for poor occupancy rates during the recent school holidays.
Despite a forecast $2.7 billion in overnight visitor expenditure across the state this month, Queensland Tourism Industry Council chief executive Brett Fraser says the market is "definitely" starting to soften.
"We are seeing the impact of cost of living pressures. People are staying a little bit shorter and spending a little bit less," he said.
"Consumers are pulling back and watching their dollars a little more carefully."
Mr Fraser said the public holidays would help, but what was really needed was the return of international visitors.
"We're expecting the Anzac Day long weekend to generate about $150 million and then the Labour Day [long weekend] about $110 million," he said.
"We need the international market to come back to replace the domestic visitation.
"Australians are starting to travel overseas at a quicker rate than foreigners coming in. There is a net deficit."
Booking numbers in decline
Marion Simon, who manages a holiday apartment complex in Broadbeach on the Gold Coast, said she had half as many Easter bookings as last year.
"It has been pretty quiet," she said.
"Up until April 15 it was OK and then we have dropped.
"This weekend we are at 49 per cent [occupancy], on Monday we will be at 38 per cent and on Tuesday we are down to 27 per cent. That's low.
"Higher occupancy means high rates so it affects not only the occupancy but the actual income.
"People are booking shorter stays and booking them a lot later. I think people are kind of waiting to find out what's happening with interest rates."
Destination Gold Coast's head of stakeholders and strategy Rachel Hancock said an influx of late bookings was not enough for the tourist mecca to match the number of visitors to the city during the corresponding period last year.
One third of Easter bookings were made in the four weeks before the holidays and she believes rising inflation and decreased consumer confidence had seen demand for travel return to normal.
Businesses feeling the heat
It is not just the Gold Coast that's impacted. Domestic visitation to Far North Queensland is also soft.
Tara Bennett, Tourism Port Douglas Daintree chief executive, said only 57 per cent of available accommodation had been booked next month — 20 per cent less than May last year.
"I would hope that with some short-lead bookings, we'll end the month at the 62 to 63 per cent mark," Ms Bennett said.
"There are some good opportunities for people looking to get away, but it won't be anywhere near as busy as 2022."
She has, however, noticed a "post-COVID trend" of larger groups heading to the region about an hour north of Cairns.
"It's been quite interesting to see how many multi-generational family groups you're getting through of kids, mum, dad and grandparents, really wanting to make the most of time together," she said.
"And that wasn't what we would've previously seen. It was much more traditional family and couple groups."
Tony Carter, manager of the Waters Edge on the Strand apartments in Townsville, said more people were looking for a bargain.
"This year, especially, everyone's trying to barter … a lot of people [are] shopping around," he said.
"They're using third party websites, booking.com, Expedia, etc and then calling us direct and we give them a cheaper price because then we don't have to pay the percentage to third parties."
Mr Carter said booking numbers often surged when the North Queensland Cowboys had a home game, but visitors weren't staying longer than one or two nights.
"We're 100 per cent booked this Saturday," he said.
"[People from] Mackay, Cairns and Mareeba, we do get them booking in for just the one night.
"They'll check in Saturday lunch and then are on the road the next day trying to get home by 10."
