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As the travel industry grapples with a two-year struggle to bounce back from the COVID-19 pandemic, Australia’s failure to fully revive its international tourism sector has reached alarming levels. The Australian Tourism Export Council (ATEC), representing over 800 domestic businesses focused on international tourism, has issued an urgent plea to Minister for Transport Catherine King, decrying suffocating airfares and limited airline capacity as the linchpins of a tourism trade crisis.

According to ATEC, even as airlines bask in a financial renaissance—posting record profits—the tourism sector remains in a tepid recovery phase. International arrivals in Australia persistently trail pre-pandemic figures, exacerbating the nation’s tourism trade deficit. The core issues, ATEC argues, hinge on the aviation industry’s dynamics: stratospheric airfares and scarcity of flight options are significant deterrents for potential visitors.

“Competition—or the lack thereof—in the aviation sector is strangling the lifeblood of our tourism industry,” ATEC’s letter to the Minister states, pushing for a reform of regulations that currently impede healthy competition among carriers. “This is not merely about holidaymakers. It’s about jobs, it’s about the economy, and it’s about Australia’s standing in the global tourism market.”

Statistical evidence underlines the urgency of the situation. ATEC points out that while some reports suggest airline capacity is creeping back to 2019 levels, these numbers are deceptively skewed by isolated spikes. A closer look reveals that key markets are operating at 50% to 80% of their 2019 capacity, leading to fewer flights and higher ticket prices.

In an era where tourism contributes significantly to Australia’s export earnings, the lack of international flights is tantamount to economic self-sabotage. ATEC advocates overhauling aviation policies to spur long-term efficiency, stimulate competition, and catalyze a broad economic uplift across Australia.

With global borders more open than in years, the time for action is now. Australia’s inability to leverage this momentum could cost it dearly in lost revenue, jobs, and global competitiveness, sealing its fate as a missed opportunity in the annals of post-pandemic recovery.