Rising costs impact SA

CONCERNS over rising costs, inflation, and labour shortages are impacting business confidence among tourism operators in South Australia, according to The Tourism Industry Council South Australia (TICSA) latest Sentiments Survey.

Just one in four businesses managed to increase their workforce over the Jun quarter, while 45% of tourism operators also reported an increase in wage expenses, with most doing so to attract and retain staff “in a tight, competitive market”.

Rising prices has led many tourism businesses to raise their costs with consumers, with the report showing that close to half of the state’s operators had hiked their rates since last year.

TICSA CEO, Shaun de Bruyn, said that while the survey certainly pointed to some promising recovery signs, the results were also a reminder that recovery from COVID-19 will not be a swift and smooth journey.

“Labour shortages, rising inflation, and an uncertain economy take the shine off what looks to be a pathway to the strong recovery of the tourism industry,” de Bruyn said.

“We must emphasise that recovery isn’t immediate, and despite things looking bright, we must continue to work with industry to build their resilience.”

On the plus side, just over 70% of businesses reported they were not experiencing a downturn due to COVID-19, while 49% of respondents said they had experienced an increase in the holiday/leisure market segment.

Close to two-thirds of businesses also noted they were either “extremely confident” or “confident” about how business will fare over the next 12 months.