REDUCTION IN QANTAS SERVICES - A SIGN OF TOUGH TIMES FOR TOURISM

The announcement today that Qantas would reduce services to a range of international destinations is a sign of the tough times facing inbound tourism to Australia, and global tourism in general, Australian Tourist Commission (ATC) Managing Director Ken Boundy said.

"While the decision by Qantas to reduce international services is symptomatic of the difficult market conditions, it is disappointing for our industry," he said.

"Airlines across the globe are faced with the same challenges as Qantas with the reduction of people choosing to travel for business and leisure.

"The decision clearly indicates that the impact of the September 11 terrorist attacks extends beyond the US and is impacting on outbound travel across the globe including some of Australia's key tourism markets.

"The aviation sector is not alone, with all areas of tourism from hotels to tour operators severely affected by people's reluctance to travel due to the ongoing war in Afghanistan and tightening world economic conditions.

"During these difficult times it is critical for the industry to continue to actively promote Australia as a tourist destination to minimise the downturn in inbound tourism. The ATC has a number of advertising campaigns underway in Asia and Japan, some in conjunction with Qantas to ensure our market share is not eroded.

"However, we are confident that in the long term conditions will improve and people will begin travelling again and it is hoped that Qantas will reinstate these services to Australia when demand increases."