27 March 2026: The Queensland Tourism Industry Council (QTIC) has written to the Prime Minister calling for targeted, time-limited support measures to address escalating fuel costs and mounting pressure on Australia’s visitor economy.
The correspondence comes as tourism businesses across Queensland face a convergence of rising operating costs, with fuel now emerging as an immediate and compounding challenge for both operators and travellers.
QTIC CEO Natassia Wheeler said while demand for travel remains strong, the cost of doing business is placing increasing strain on the sustainability of tourism operators – particularly in regional and remote areas.
“Tourism continues to perform strongly from a demand perspective, but that is happening alongside record levels of cost pressure for businesses,” Wheeler said.
“We are seeing a cumulative impact – insurance, energy, labour and compliance costs have all risen significantly over recent years, and fuel is now adding an immediate and visible layer of pressure.”
“Businesses have worked incredibly hard to absorb these increases, but there is a limit to what can be sustained without impacting pricing, operations and ultimately visitor demand.”
QTIC’s letter to the Prime Minister outlines four priority areas for coordinated national action:
A nationally coordinated domestic tourism activation campaign, delivered in partnership with Tourism Australia and the states, to encourage Australians to travel locally while maintaining international market presence
Targeted, time-limited financial support for businesses with high exposure to fuel and energy costs, particularly in regional and remote areas
Continued coordination to ensure fuel supply confidence across key travel routes, supported by clear and consistent communication to maintain consumer confidence
Establishment of a cross-portfolio Tourism Cost Pressures Taskforce to support real-time monitoring of emerging cost pressures and enable coordinated, time-limited responses
Wheeler said fuel costs are influencing both business operations and traveller behaviour, with early signs of shorter booking windows, increased price sensitivity and a shift toward shorter, closer-to-home trips.
“This is not a demand issue – Australians still highly value travel and experiences,” she said.
“It is an affordability and sustainability challenge. Consumers are becoming more price-conscious, and businesses are reaching the point where they cannot continue to absorb rising costs without adjustment.”
“For operators with high fuel dependency – marine tourism, transport providers, remote experiences – this is a direct and unavoidable increase in the cost of delivering services.”
QTIC said some businesses are already adjusting pricing structures, including introducing fuel-related surcharges, while others are reassessing service delivery to remain viable.
The organisation emphasised that maintaining confidence in travel, particularly in the lead-up to key periods such as Easter, is critical to supporting regional economies.
“Tourism is a cornerstone of regional Australia, supporting around one in nine jobs in Queensland alone and underpinning thousands of small businesses,” Wheeler said.
“Periods like Easter are critical. Ensuring people feel confident to travel, and that businesses can continue to operate sustainably, is essential.”
QTIC is working closely with national peak bodies, Tourism Australia and state governments to support a coordinated response, with a focus on maintaining fuel supply confidence and reinforcing positive travel messaging.
Wheeler said the current environment also presents an opportunity to strengthen domestic tourism.
“There is a real opportunity here to encourage Australians to explore their own backyard,” she said.
“Supporting domestic travel not only helps offset current pressures, but delivers immediate benefits to regional communities and small businesses across the country.”
QTIC noted that the visitor economy remains one of Queensland’s most significant economic drivers, generating $43.5 billion in visitor expenditure and supporting communities across every region.
“These are practical, targeted measures designed to support an industry that continues to deliver strong economic and employment outcomes, but is operating under sustained and increasing cost pressure,” Wheeler said.
“The industry is resilient – but resilience should not be mistaken for unlimited capacity to absorb ongoing shocks.”
ENDS.
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