A new analysis of business travel bookings across Australia has revealed a 29 per cent surge in regional travel this year – even after a 10.5 per cent increase in 2022 on 2019 – with one state attracting the majority of business travellers.
A travel expert says the fast-growing mining industry, including mining for critical minerals used for renewable energy infrastructure, is the reason for the travel boom.
Earlier this year, data from Corporate Traveller (corporatetraveller.com.au), the flagship SME division of the Flight Centre Travel Group, found the volume of regional flights was 10.5 per cent higher in the year to 31 December 2022 than in 2019.
This month, an analysis of its business travel bookings from January to September 2023, year on year, found that regional travel grew by another 29 per cent. Most significantly, some of these regional routes have grown by more than 60 per cent. Of all the regional travel in this 2023 period, nine of the top 10 routes are in Queensland.
| Ranking of top 10 regional business routes in 2023 | % increase in business travel from Jan-Sept 2023 YoY |
|
69 |
|
21 |
|
39 |
|
4 |
|
64 |
|
22 |
|
22 |
|
0 |
|
62 |
|
41 |
Tom Walley, Corporate Traveller’s Australian-based Global Managing Director, forecasts these routes will continue grow alongside the growth of the mining industry, particularly in Queensland and Western Australia.
There are currently more than 350 operating mines within Australia, with one-third operating in Western Australia and a quarter in Queensland[1], reflecting the growth seen in travel to regional areas in these states. Governments are approving mines for critical minerals throughout the country, and there are an additional 25 proposals for new mines or expansions.
Tom says there are several reasons behind Queensland’s prominence as a regional business travel hub. “Queensland boasts a wide range of economic activities, including a thriving mining sector and booming tourism industry. The State’s mining industry alone creates 50,000 jobs. Queensland is also the world’s largest supplier of silver.[2]
“The Sunshine State has a major agriculture sector, being the major producer of sugar cane, cotton, and tropical fruits. Additionally, there are more than 473,000 small businesses in Queensland, contributing around $117 billion to the state’s economy[3] and making it a popular destination among business travellers.”
Queensland also enjoys high population growth. In the 12 months to September 2022, the state saw a 2.2 per cent increase in its population (compared with the national average of 1.6 per cent) and made up 27.3 per cent of Australia’s population growth.
The route with the largest growth, at 69 per cent, is Brisbane-Mackay, followed closely by Mackay-Brisbane, at 64 per cent. Mackay’s growing popularity as a business destination could be attributed to its thriving mining service sector, despite the absence of mining operations in the region itself.
Growth was also seen in trips from Perth to Karratha, with a 62 per cent surge this year. Karratha’s unique blend of iron ore operations and natural beauty also positions it as an attractive destination for ‘bleisure’ travel.
The Gold Coast-Sydney route, although not in the top 10 in 2022, saw a 41 per cent surge in travel this year, taking tenth place in the ranking. The Gold Coast has enjoyed a growing population over the last 10 years – in particular after the pandemic, with an annual increase of 7098-11,614 people[4].
It is estimated to reach a population of one million by 2043[5], creating a healthy environment for business and job growth. The Gold Coast workforce almost doubled its size since June 2001[6].
Business travellers on this route may have ongoing commitments in Sydney or are combining business with family visits. Conversely, Sydney to Gold Coast, while ranking eleventh in growth this year, still experienced a six per cent increase in business travel bookings.
Additional routes that experienced substantial growth include Brisbane to Emerald (39 per cent), Brisbane to Cairns (22 per cent), Brisbane to Moranbah (22 per cent), Perth to Kalgoorlie (21 per cent), and Brisbane to Townsville (four per cent). All these destinations have a flourishing mining sector in common.
In 2022, the route from Perth to Brisbane was ranked ninth on the list, however, this year it has not made the top 10. On the other hand, the route from Kalgoorlie to Perth was the second most popular route this year, but data reveals a six per cent decline in business travel compared to 2022.
Tom says: “The growing shift to regional travel in Queensland reflects the mining industry’s exponential growth thanks to Australia’s push towards renewables, which requires more mining of critical minerals.
“With the Palaszczuk Government announcing a $245 million investment into the industry[7] for growth, jobs will boom, and so will business travel to mining regions. Overall, business travellers are adapting to changing circumstances and seizing opportunities in regions with robust economic activities, and we expect this growth trend to continue indefinitely,” says Tom.
