death of domestic tourism

The death of domestic tourism

More bang for your buck abroad

Today my favourite low-cost-carrier announced some pretty big news — Air Asia is finally set to fly from Sydney, and to celebrate they're promoting fares to Kuala Lumpur for just $99 each way. That is insane. A quick search on their website reveals that the deal isn't one of those we-sell-three-tickets-at-that-price-with-zero-availability either — this is the real thing, and you can book a return flight most any day in June for $198.

And that's why Aussie destinations are suffering. Our neighbours in Asia are cheaper to get to, offer better value for money and unique, exotic experiences. Tourism Australia has done a good job of guilting Aussies into taking their holidays close to home, but even the most die-hard national will have a hard time spending his precious leave and dosh on a domestic when his dollar goes so much further abroad.

Let's look at the numbers:

If I want to fly from Sydney to Cairns for a dose of sun 17 June, returning 23 June, it'll cost me $318 on Jetstar. I can probably find a three-star hotel or holiday rental for about $100 a night. And before I've eaten or done anything fun, I've spent a grand. My cost-per-day for food will be similar to that at home, but the cost for activities (like a trip to the Reef) a few hundred dollars. I'm down $1500 to $2000.


But I don't have that kind of cash. What to do? How about plug the same dates in and head to Southeast Asia? If I do that I can fly further for less ($198 compared to $318). And I can get a three-star hotel in KL for $150 … total, for all six nights. The cost of food in Malaysia's capital is alarmingly low (for incredibly delicious dishes), and so is transport and the activities on offer. So I can get by, and have an excellent week, for $600 or so. Too easy!


Why wouldn't you head overseas?

I feel for Aussie operators, but given the option holidaymakers will go for value, and right now the value's too awesome in Asia.

Would you opt for a cheaper overseas holiday, or are you happy to pay more and stay in Oz?


Air Asia X's special fare is available until sold out for online bookings made between 17 and 22 January for travel from 2 April to 27 October. Connections across their network are also discounted; check airasia.com for more.

GLTA@QF