Weaker $A set to push up holiday costs

Australian holidays are set to become more expensive as more overseas tourists take advantage of a currency trading below 90 US cents.

Weaker $A set to push up holiday costs

A weaker Aussie dollar is set to make domestic holidays more attractive, pushing travel prices up.

A holiday at Australia's tourism hot spots could be more expensive with room rate increases likely as the Aussie dollar falls below 90 US cents for the first time in almost three years.

With a weaker currency pushing up the price of overseas travel, popular getaways like the Gold and Sunshine coasts, Cairns and Sydney will likely attract more Australian tourists.

They'll also be more attractive to foreign tourists, with a lower Aussie dollar making a trip Down Under cheaper.

And that will push occupancy rates up, sending room rates higher.

"Yes, potentially increased occupancy drives increased room rates but the Gold Coast has managed to maintain a steady room rate," Gold Coast Tourism director of marketing Ben Pole said.

Queensland's tourism industry has thrived despite a strong Australian dollar, a report by auditing firm Deloitte found.

"Tourism in Queensland has been growing strongly over the last year, a trend that is expected to continue and perhaps strengthen if the long-anticipated depreciation continues," it said.

Still, Australian travel costs have actually become more affordable since the Australian dollar dipped below parity with the greenback in May.

Domestic travel and hotel prices fell four per cent in the June quarter, official figures show, even as the currency slid from a peak of 105 US cents to a level below 92 US cents.

On Thursday morning, it dipped to 89.26 US cents, the weakest level since September 2010.

And, it seems more American tourists have been visiting far north Queensland since the Australian dollar weakened.

"We have noticed that there have been a few more Americans travelling when their dollar is a bit stronger," said Sharada Van Min, a director of luxury rainforest lodge Silky Oaks.

Phil Warring, head of sales at Cairns-based tour firm Tourstogo, said a weaker currency could entice more overseas and local tourists to visit the Great Barrier Reef.


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Source: AAP


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