Sars and Iraq cut deep into Australian tourism

SYDNEY - The number of foreign tourists in Australia fell by a fifth last month and the fall is likely to increase, says a key tourism body.

The Australian Tourism Export Council said its latest survey of tourism operators found that the fear of Sars had slashed visitor numbers from some countries, such as China, by 50 per cent or more. Concern about the Iraq war was another factor.

On present trends, Australia's important tourism industry stood to lose between A$1 billion and A$2 billion ($1.1 billion to $2.2 billion) in revenues this year, threatening many of the sector's 550,000-strong workforce.

"The joint impact of Iraq and Sars is having a devastating effect on the tourism export industry," said the council's managing director, Peter Shelley, demanding the Government aid an industry that accounted for 4.7 per cent of gross domestic product.

The council said its latest survey of tourism operators found the number of visitors fell by 20 per cent in April, accelerating an 11 per cent decline posted in March compared with the same month a year ago.

Foreign visitors arriving in May could be 30 per cent down on a year before and bookings for June were 20 per cent lower, Shelley said.

"With the first two quarters of the year returning negative growth and the effect of Sars likely to be felt into the third quarter, the total economic loss to Australia is A$1 billion to A$2 billion," Shelley said.

Australia has been relatively isolated from Sars infections. Just four people have been reported to the World Health Organisation as probable cases.

But tourism, which employs 6 per cent of the workforce and is Australia's fourth-largest foreign exchange earner, has taken a severe hit.

The latest scare to hit Australia occurred over the weekend when a flight attendant for flag carrier Qantas was taken to hospital with suspected Sars symptoms. She has since been cleared of the disease and discharged.

- REUTERS