Australian tourism businesses are not optimistic about their prospects for 2009. A large survey has revealed that the luxury sector has been hardest hit with price reductions at five star hotels in Australia failing to stimulate a worthwhile increase in bookings. Indeed it is the student / gap year / backpacking sector which is proving to be the most resilient part of the Australia tourism industry. More at The Australian.

In the short term at least this should be good news for travellers from the UK looking for bargain flights and holidays to Australia as airlines and hotels reduce their prices for flights and accommodation. In the longer term we might see capacity reductions and at least the scaling back of ambitious growth plans such as more Qantas A380 aircraft at London.