DIFFICULT TIMES FOR AUSTRALIAN TOURISM ANSETT GROUNDED

Australia's tourism industry will face difficult times in the short term with the grounding of Ansett Airlines and the impact of the terrorist attacks in the US, Australian Tourist Commission (ATC) Managing Director, Ken Boundy said today.

"The grounding of Ansett Airlines will have wide ranging ramifications for Australian tourism leaving a void in our aviation industry," Mr Boundy said.

"Air services are critical to the dispersal of international and domestic travellers in Australia and the suspension of Ansett Airlines will be devastating for many regional areas and non gateway destinations which are dependent on these services.

"We understand that in the short term Qantas is assisting stranded Ansett passengers where possible and it is hoped that in the longer term a new domestic airline emerges to service Ansett's existing major trunk and regional Australia routes.

"While Ansett only carries a small percentage of inbound visitors to Australia, it will directly impact on visitors ability to travel within Australia."

Mr Boundy acknowledged the important role that Ansett has played in the development of Australia's inbound and regional tourism industry helping to build tourism from a fledgling sector to a strong and valued industry.

Mr Boundy said the terrorist attacks in the US would also impact on Australia's tourism industry as a result of the anticipated decline in outbound travel from the US.

"In the short term, a slump in visitor arrivals from the US is expected, with consumer confidence rocked as a result of yesterday's tragic events," he said. "Reports from the industry indicate that US consumers are already cancelling holiday bookings to Australia and other destinations.

"The ATC has suspended all campaigns in the US and reduced our publicity activities in the country. We will continue to monitor the situation, will reinstate activity when timing is appropriate and work with our industry partners to retain as many holiday bookings to Australia as possible.

"Overall, we anticipate that the US incident will impact the global travel market with potential travellers postponing international travel plans.

Mr Boundy called on Australian tourism industry operators not to charge cancellation fees for passengers during this period of uncertainty as a result of the Ansett collapse and terrorist attacks in the US.

"These are challenging times and it is critical for the industry to work together to ensure that Australia's tourism industry continues to prosper."