SA visitor economy shrinks but workforce booms
The total value of tourism in South Australia fell from a record high, but nearly 10,000 jobs in the sector were created in the 12 months to June 30 – the highest ever single-year growth.
The South Australian Tourism Commission’s (SATC) annual report details the shrinking total value of the state’s tourism value, which fell slightly from $10 billion in 2022-23 to $9.9 billion.
But the sector added 9800 jobs in the last financial year – its highest ever single-year growth – bringing the total number of people directly employed by the state’s tourism industry to 40,600.
SATC CEO Emma Terry said the state’s visitor economy remained stable while “facing an emerging number of headwinds that are impacting many sectors”.
“Tourism is not immune to national and global events. Higher interest rates and a rising cost of living have led to a lower household discretionary income. While natural disasters like the recent Murray River flood have also had an impact on tourism in our key regions,” Terry said.
She noted the reinstatement of direct Emirates fights to Adelaide, the launch of new marketing campaigns and SATC’s events program including LIV Golf and AFL Gather Round as highlights for the state government body.
She also said interstate expenditure and visitation was “the standout”, with three million interstate visitors spending $3.6 billion – an all-time high.
In comparison, international expenditure reached $1.3 billion in FY24, up from $1.1 billion. Visitation increased to 451,000 people which is 8 per cent down on pre-pandemic levels.
“Interstate is the only market so far to exceed pre-COVID levels, while intrastate travel in South Australia remains below pre-pandemic levels,” Terry said.
“While we celebrate these wins, we must also position ourselves to overcome the challenges that current economic conditions pose for the visitor economy – a challenge that is being felt nationwide.”
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SATC said it ended the financial year in line with budget and met all savings targets. The Commission – owned by the SA Government – brought in $135 million of income but made a total comprehensive loss of $4.45 million, an improvement on a $7 million loss the year prior.
The lower loss was in part due to a reduced advertising spend and lower borrowing costs.
SATC’s main income was state government-allocated money from the Department of Premier and Cabinet’s Major Events Fund and government grants. Its biggest expenses were $60.1 million for “industry assistance” and $27 million for putting on events.
The organisation is still aiming to reach $12.8 billion in visitor expenditure by 2030; a goal outlined in its South Australian Visitor Economy Sector Plan 2030.
