Australia's tourism is bracing for the impact of the Middle East conflict, with many inbound tour operators facing travel disruptions for visitors from the Northern Hemisphere transiting to the long-haul destination Down Under.

Peter Shelley, managing director of the Australian Tourism Export Council, said the effect on the travel sector followed the war involving the United States, Israel and Iran since Feb 28, which has disrupted oil and other global supply chains in the Middle East.

A check with the council's inbound operators found that about 70 percent reported some level of disruption, including cancellations and postponed bookings, Shelley said.

"The impacts are most evident in markets relying on Gulf airline networks, particularly for European leisure and group travel, where changes to routes and schedules are creating uncertainty," he said.

As the peak industry association for Australia's inbound tourism sector, the council represents more than 1,000 members across the country, including large multinational companies and small — and medium-sized enterprises.

International visits to Australia reached 8.3 million trips in the year ending December, with holiday travel hitting 3.6 million trips and visits to friends and relatives at 2.8 million trips, according to Tourism Research Australia, part of the Australian Trade and Investment Commission.

Visitors from the United Kingdom and the US formed a major part of the market, together with those from China and neighboring New Zealand, it said.

Shelley said "aviation is everything" for a long-haul destination like Australia. The industry is seeing "a mix of cancellations, softer forward bookings and more hesitation from travel planners" amid the Middle East crisis, he said.

"At the same time, rising fuel costs are flowing through to airfares, which adds another layer of pressure," he said.

"For a sector still rebuilding, these kinds of global shocks can slow the recovery by making it harder to convert demand into actual travel," he said, referencing the industry's struggles during the pandemic.

Shelley said the focus is on providing real-time insights from industry to government so that the effects are clearly understood.

"At the same time, operators are working closely with their international partners to manage disruptions and maintain confidence in Australia," he said.

"In this environment, having strong aviation access, efficient visa settings and sustained global marketing is critical to keeping Australia competitive."

Monitoring situation

Robin Mack, managing director of Tourism Australia, the government agency responsible for attracting international visitors to leisure and business events, said that despite some disruption to air travel, the country "continues to welcome visitors from around the world, including key markets like China".

"We are closely monitoring the situation as it is unfolding and engaging with our network of people and partners internationally, along with the industry here, to understand any impacts in tourism to Australia," he said.

"We continue to support the industry through our marketing activities around the world to build demand for Australia's tourism experiences both short and long term."

James Chen, who manages a tour agency in Melbourne offering Australian itineraries, said some inbound customers affected by the disruptions are also exploring alternative transit routes to the country.

It is important to provide updates via travel advisories, with coordination between industry and government, for travelers to make informed choices at this time, he said.

"Australia remains an attractive destination and we need to maintain safe, reliable travel for visitors."

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