Queensland has recorded its worst start to the tourism season in four years with visitor numbers down 11 per cent across the state, according to the Outback Queensland Tourism Association.
Association chief executive Denise Brown said Easter was the first time in the past four years that tourism hotspots, including those on the coast, weren't full.
"The whole domestic tourism market is suffering," she said.
The dry spell has hit hard in the regions.
Min Min Encounter tourism officer Karen Savage said numbers were down 50 per cent at the popular tourist attraction in the outback town of Boulia, 1,000 kilometres west of Townsville.
The encounter is part of a circuit that road-trippers follow to explore Queensland's red-dirt country.
"That means 50 per cent less income coming into the town, which heavily relies on our tourism season, and that means the entire budget for all our businesses are down for the year," she said.
The town has had to postpone some of its main events because there are few visitors to attend.
Alan Smith, who runs a tour business covering most of outback Queensland, is also feeling the slump.
"It is slower and there is a bit of hesitancy … I think we are going to have to get clever with our marketing," he said.
Where are all the tourists?
A slew of factors is to blame for the lack of foot traffic.
During the end of 2021 and throughout 2022, costly international airfares and caution over COVID meant Aussies were eager to explore their own backyard.
But in 2023, travellers are trading road trips for Contiki.
"The whole world has opened up, international travel is well and truly back on the cards and with that comes the rise in competition," Ms Brown said.
Competing with cruises, cost of living
Cruises have recorded their first successful season since lockdowns ended and enticing holiday deals have lured Aussies to the seas.
"If you've looked at your newspapers and your news feed, they have been plagued with some attractive cruise deals which have seen the January to March season just absolutely swamped," Ms Brown said.
Meanwhile, rising interest rates and a spike in the cost of living are also hitting the tourism sector.
"All of those economic factors are creating a lack of confidence in the market," Ms Brown said.
Camping road trips have lost their budget-friendly appeal in outback Queensland, where fuel prices can reach nearly $3 a litre.
"When fuel prices are this high, we just aren't seeing the same numbers," Ms Savage said.
'Devastating' consequences
After owning the market for several seasons, domestic tour operators were bracing for a drop off in visitors as the world opened up.
"But if it doesn't pick up this year it will be devastating," Ms Savage said.
"There are a lot of small businesses in town that heavily rely on tourist dollars and their budgets will be down for the entire year if the season doesn't pick up."
Mr Smith said operators needed to get better at selling the Aussie holiday.
"The appetite is still there, we are now just competing with a lot more marketing," he said.
"We need to work collectively and get clever with how we offer up what people want to experience on their home soil.
"We can't forget that tourism is about people and connecting people with the heart and soul of this country, which is something Aussies will always identify with."
