Queensland’s peak tourism body has warned the industry is approaching a breaking point, calling for immediate, targeted cost relief to be included in the Federal Budget on 12 May.

The Queensland Tourism Industry Council (QTIC) has written to both State and Commonwealth Governments seeking urgent, coordinated intervention, with no formal response received to date.

QTIC CEO Natassia Wheeler said time was running out for many operators.

“Businesses are making decisions now about whether they can stay open. They cannot wait weeks or months for support,” Wheeler said.

Independent economic analysis shows the cost of inaction would significantly outweigh the cost of intervention. Even a small wave of business closures could result in up to $943 million in lost economic activity, nearly 7,000 jobs and more than $75 million in lost government revenue.

“This is a clear economic case for early action. Stabilising viable businesses now is far more cost-effective than responding after closures occur,” Wheeler said.

QTIC is calling for a targeted, time-limited stabilisation package, jointly delivered by State and Commonwealth Governments, focused on immediate cost relief and business continuity.

“We are seeing revenue declines of 30 per cent or more across parts of the state. These are viable businesses, but they cannot absorb sustained cost increases without support,” Wheeler said.

A support package in the order of $50 million is expected to be required over the next 90 days to stabilise the sector.

Tourism remains one of Queensland’s most significant economic pillars, generating more than $43 billion in visitor expenditure and supporting over 277,000 jobs.

“This is not a discretionary sector – it is economic infrastructure that underpins regional communities across Queensland,” Wheeler said.

The impacts are being felt most acutely in regional and remote areas, where operators are highly exposed to fuel costs, transport dependencies and distance.

“The fuel crisis is the tipping point after a decade of compounding pressures – from COVID and natural disasters to insurance, energy and labour costs,” Wheeler said.

“What we are seeing now is a viability challenge. Businesses are still operating, but margins have collapsed and cashflow is under pressure.”

QTIC warned forward bookings are already softening, particularly in regional and drive markets, signalling further deterioration without intervention.

“Without action, this will move quickly from margin compression to business failure,” Wheeler said.

The consequences extend beyond individual operators, with tourism playing a critical role in regional economies and the delivery of the Brisbane 2032 Olympic and Paralympic Games.

“The Games rely on the strength of the visitor economy. We are at risk of hollowing out the very industry needed to deliver that global experience,” Wheeler said.

Proposed stabilisation measures (for co-design with government)

QTIC has outlined a suite of practical measures for co-design with government, including:

Queensland Government (0–3 months)

• Temporary waiver or deferral of fees, permits and leases
• Targeted payroll tax relief
• Regional fuel support for transport and touring operators

Commonwealth Government

• BAS-linked cashflow support or tax credits
• ATO payment deferrals and concessional finance
• Targeted wage support if conditions worsen

“These are proven mechanisms that can be deployed quickly to relieve immediate cost pressures and keep businesses operating,” Wheeler said.

Longer-term reform

QTIC is also calling for a joint State–Commonwealth Tourism Industry Taskforce to address structural cost pressures across the sector.

“This is not just about short-term stabilisation. Without reform, the industry will remain vulnerable to future shocks,” Wheeler said.

With less than seven years until 2032, Wheeler said the window to act is narrowing.

“We are not asking for long-term support – we are asking for targeted, time-limited intervention to stabilise the sector now,” she said.

“If we act early, we protect jobs, regional economies and industry capability.”

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