Domestic travel and hotel prices have become cheaper despite a fall in the currency. Source: AAP
AUSTRALIAN holidays have become cheaper despite a sharp fall in the local currency.
Domestic travel and hotel prices dropped by four per cent during the June quarter, even as the Australian dollar fell from a peak of 105 US cents to below 92 US cents.
A weaker currency potentially encourages more overseas and local tourists to holiday within Australia, which in theory drives up accommodation costs.
Despite this, local holiday expenses posted the biggest decrease in three years, Tourism Research Australia figures show.
Meanwhile, international travel costs rose by half a per cent.
Tourism Australia (TA) managing director Andrew McEvoy says cheaper flights are stimulating competitive.
"Campaigns and offers being run by the airlines and travel operators are helping to drive down prices and offer domestic travellers great value for money," he said.
TA has launched a campaign to encourage families considering an overseas trip to instead stay in Australia.
A recent survey of 1000 people by TA found Australians preferred local beach holidays to overseas getaways.
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