Travel is down but not out

Tourism figures around the world are showing a decline in tourism numbers. But people are still travelling. I went to a fascinating talk a few weeks ago on what people will give up in a recession. The first things to go are eating out and going to coffee shops. This fits with a recent article that Brits will eat sarmies (and cut back on bought meals) rather than give up their travel.

Some big ticket purchases go - like buying a new car - and that releases cash for other smaller purchases.

So right now restaurants and coffee shops are suffering as are car sales and retail in general. Here in Australia the shops are busy but not as frenetic as they have been at Christmas time in past years. Domestic tourism in Australia is 5% down.

What we don't know is how tourism will fare in the next 12 months. Long haul travel is a long term purchase. The tourists travelling now booked last year based on money they had earned the year before.

Some sources are saying that in Britain forward bookings are sharply down because people don't want to book ahead and then find that they have no job and can't afford to travel.