PRESIDENT UPDATE
Rising costs, real pressures and preparing for what comes next Tasmania’s hospitality industry is entering its next challenging phase. After a strong summer period, attention is quickly turning to the months ahead, and the pressures that are beginning to build across the sector. Rising fuel costs are now emerging as a significant concern, not just in isolation, but for the ripple effect they create across the entire industry. From freight and supply chains through to travel costs for visitors, increases in fuel are being felt at every level. For many regional operators in particular, those impacts are immediate. Early signs are already pointing to softer forward bookings, with some tourism businesses noting a degree of hesitation in the market as consumers weigh up the cost of travel. At the same time, these pressures are compounding with existing challenges. Energy prices, insurance premiums, wages and general operating costs remain elevated, creating a situation where margins are tightening from multiple directions. For an industry that relies on both volume and consistency, even small shifts in demand can have a meaningful impact. As we head into autumn and towards the winter period, this combination presents a clear test.
were required to pivot quickly – whether that meant changing operating models, rethinking service delivery, or finding new ways to connect with customers. While the current challenges are different in nature, that same resilience and adaptability remains one of our industry’s greatest strengths. What is important now is recognising the environment early and responding accordingly. Maintaining demand through the cooler months will be critical, particularly in regional areas. We have seen the role that major events and targeted activation can play in supporting visitation during quieter periods, and that focus will be as important as ever this year. At the same time, there is a need for continued support and understanding of the pressures facing hospitality businesses. Rising input costs, particularly those linked to fuel, are largely outside the control of operators, yet have a direct impact on both pricing and viability. Hospitality Tasmania will continue to advocate for measures that support the industry through this period, while working closely with members to navigate the months ahead. Our staff are doing an amazing job getting out and about into regions and venues, delivering outcomes for the industry. And through our CEO, we have direct access to politicians at every government level, ensuring our voice gets heard on the issues we face. There is no question the road ahead presents challenges. But if recent years have shown anything, it is that this industry is capable of adapting, evolving and continuing to deliver – regardless of the conditions.
However, it is also not unfamiliar territory.
Over recent years, the hospitality sector has demonstrated an ability to adapt under significant pressure. Throughout the Covid period, businesses
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Tasmanian Hospitality Review April/May Edition
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