Analysts and tourism operators have predicted that European travel to Australia could fall by as much as 15% over the course of 2010 and have cited the new strength of the Australian dollar against the Euro and American dollar as the leading factor.

The Australian dollar is currently on a 25-year high when compared to sterling, and almost at record breaking levels against the Euro. This is seen as a particular hit when considering a drop in visitor numbers from Britain, Australia’s second-biggest inbound country, as research shows Britons have a tendency to stay in the country longer and spend more.

As Australia gradually becomes more pricey as a holiday destination for travelers from the northern hemisphere, adding to the dilemma is that many Australians are taking advantage of their strong currency and leaving the country on holidays to places where their dollar will perform better. Outbound travel in October 2010 saw a massive 11% rise when compared to the same month a year previous. Cheaper airfare is also touted as a reason for the mass exodus and around seven million Australians went abroad between January and October 2010. The key targets for Australian vacations appear to be the US, Fiji, New Zealand and Thailand.

However, it seems that there is a silver lining – tourism operators within the country have reported that American visitor numbers are likely to be stable for the foreseeable future and an increase in traffic from Asia is expected to rise over the year.

Reported by Mike Jordison.

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