Iran war causing ‘enormous’ tourism, freight disruption
Travelers stranded by massive cancellations caused by war in the Middle East are helping Australia’s hotels stay afloat.
The conflict has caused chaos in international travel and disrupted global supply chains, causing gasoline and diesel prices to rise domestically and jet fuel prices globally.
Accommodation Australia CEO James Goodwin said the country’s accommodation sector had faced widespread and significant cancellations over the past two weeks as tourists from around the world – many of whom planned to travel to or through the Middle East – were forced to stay at home.
“There has been a huge level of disruption in the industry,” he told AAP.
While Sydney, Melbourne and Brisbane were predominantly affected, other areas dependent on international travelers such as Kangaroo Island, Uluru and the Great Barrier Reef were also affected.
But Mr Goodwin said occupancy rates remained stable as stranded passengers and aviation staff were forced to stay in Australia longer than planned.
On one occasion, after the outbreak of conflict, a hotel in Melbourne was asked to provide 130 rooms to accommodate the air crew of a Middle Eastern carrier.
Tourism and Transport forum boss Margie Osmond said the industry expected Australian travelers to stay closer to home as high fuel prices and rising air travel costs took a toll on exotic destinations.
“I think for most holidaymakers the fuel issue is probably related to their own driving behaviour,” he said.
“This is more about consumer uncertainty than anything else right now.”
But Ms Osmond said a positive development would be likely in the form of generous deals to encourage Australians to continue traveling around the country.
While some passengers are still deciding how to respond, the country’s shipping industry says it is facing serious pressure from skyrocketing fuel prices.
Australian Logistics Council chief executive Hermione Parsons said ongoing price shocks were shaking the industry to its core and would leave a lasting impact.
Transport operators were negotiating with companies in the supply chain to pass on increased freight costs to customers over the next few weeks.
“Diesel is the main energy source for transport in Australia,” he said.
“The current instability adds pressure on top of pressure on a system that is already under pressure.”
A trucking industry source said some trucking companies have been forced to leave trucks in the yard instead of moving goods because of ongoing problems with fuel supplies.
Dr Parsons warned that global backlogs and price rises were likely to be felt for years after the end of the conflict in the Middle East.
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