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Government to pay airlines to come to QLD

The Queensland State Government has announced a plan to underwrite flights to Queensland tourist destinations to compensate for domestic flight cuts by the major airlines with a $4 million rescue package.

Both domestic and international flights could be underwritten, but the emphasis will be on international flights. Decisions will have to be made on how the flights are subsidised, and for how long.

Tourism Minister and member for Cairns, Desley Boyle has been working on developing an aggressive strategy to rescue Queensland tourism, which has been rocked by Qantas' decision to cut services from Japan to Cairns and Brisbane due to rising fuel costs and declining passenger numbers. Among the routes cancelled in June 2008 was Jetstar's Sydney to Proserpine route. The route is now only served by Virgin Blue, which is understood to also be considering cuts to services.

The number of Japanese tourists coming to Queensland has been in decline for several years, plunging 13.5 per cent since 2007, according to figures released last Friday. However, the slump in Japanese tourists has been offset by an increase in Chinese visitors, up 29.4 per cent in the 12 months to March 2008.

According to Ms Boyle , "While the north of the state has worn the brunt of these recent airline announcements, these are decisions that are affecting the entire state tourism industry including the Whitsundays and the Gold and Sunshine coasts."

 

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