The tourism industry worldwide is braced for a sharp downturn due to the terror attacks on the US and the potential for military conflict. While there is the potential for Australia to gain tourism business because of our reputation as a safe destination, the fallout from the Ansett collapse and a loss of confidence in the global airline industry will far outweigh any positive influences.

The last-minute cancellation of CHOGM will add to industry woes; with those Queensland businesses having prepared for the October 6-9 meeting facing collective losses of tens of millions of dollars, with about 3,500 rooms in hotels left empty by postponements.

In an attempt to boost the struggling Queensland tourism market, Tourism Queensland has launched a multi million dollar marketing campaign. The campaign includes centralising up-to-the-minute market information, seizing short-term opportunities and providing long-term capitalisation for a new tourism framework. Aggressive promotion followed by special deals under the banner of "Make Time - there's never been a better time to holiday in Queensland" will be at the forefront of the campaign.

However, the shocks to the industry will have major ramifications for a large number of tourism operators in the State, many of who operate on very small margins. With the economy also set to suffer from a downturn in international demand in the wake of the terrorist attacks in the US, the Queensland tourism industry will see many companies disappear. The longer-term impacts of this fallout in regional areas could potentially be devastating. As a result, additional initiatives may have to be employed by the government to shore up the tourism industry.

For more information on this issue book for our next conference "Economic Futures Queensland 2001," featuring keynote speaker Daniel Gschwind, Chief Executive, Queensland Tourism Industry Corporation.