FLIGHT PRICES HINDER CITY

Townsville gets raw deal with Cairns cheaper for southerners

TOWNSVILLE’S economy is being hampered by exorbitant airline prices, according to the city’s peak economic lobbying body.

Townsville Enterprise has made a submission to the Senate inquiry into regional airfares in which it says a 10 per cent reduction in prices would result in $ 26 million direct output increase and $ 57.5 million to the North Queensland economy.

It costs just $ 17 more for Sydney travellers to fly to Singapore than Townsville and there are 63 direct Sydney- Singapore flights a week compared to only 12 directly to Townsville.

TEL chief executive officer Patricia O’Callaghan said the cost of regional airfares had been acting as a significant impediment to increased investment, business and tourism in Townsville.

“Reducing the cost of Townsville’s airfares will not only support investment attraction and encourage visitation, but it will enhance liveability amongst our community,” she said.

HIGH airline prices are hurting the Townsville economy, with cheaper flights to Cairns and overseas destinations meaning many are avoiding travelling to the “capital of North Queensland”.

A 10 per cent reduction in prices would result in $ 26 million direct output increase and $ 57.5 million to the North Queensland economy, according to economic and develop- ment lobby group Townsville Enterprise.

The claims were made in submissions to a Senate inquiry which is probing the operation, regulation and funding of air route service delivery to rural, regional and remote communities.

Tourism is the sixth largest employer in Townsville and employs about 6100 people and TEL said a focus on air connectivity and pricing was vital for the industry to grow.

The competitiveness of international flights out of capital cities is also acting as a huge deterrent for holiday makers to choose Townsville as a destination. It cost just $ 17 more for Sydney travellers to fly to Singapore than Townsville. There are also many more flights with the Sydney-Singapore service occurring 63 times a week compared to only 12 times directly to Townsville.

TEL chief executive officer Patricia O’Callaghan said: “Cost, availability and reliability of air travel is a key consideration for North Queensland, which is why Townsville Enterprise commissioned AEC Group to conduct an economic impact assessment into regional air- fares to support our Senate inquiry submission. The cost of Townsville’s inbound and outbound travel has been a barrier for the region’s growth for far too long.”

Cairns is also receiving the lion’s share of tourism partly because of cheaper flights despite it being further away from Brisbane than Townsville. It’s about $ 50 cheaper for passengers from Brisbane, Sydney and Melbourne to fly to Cairns return than Townsville, according to TEL.

Ms O’Callaghan said from an international point of view, TEL was leveraging off oppor- tunities presented through the Australia Singapore Military Training Initiative and continuing to grow the relationship with Singapore, as well as strengthening the region’s already close ties with Papua New Guinea.

“Several targeted marketing campaigns with airlines such as Tigerair and booking platforms like Webjet are proving effective strategies in growing visitation to our region delivering thousands of additional passengers through the airport,” she said.

“These activities are also supported by the creation of new tourism products in the region such as the proposed Museum of Underwater Art.”

There is also strong support for regulated flights from Townsville to destinations like Mount Isa.

Queensland Airport Limited, which owns Townsville Airport, generally supports an unregulated airfare system. But QAL does support the regulated routes scheme on the basis that it delivers affordable, sustainable air services to regional and remote residents where passenger demand is not high enough to create healthy competition.