Summer-loving Australians have delivered a major windfall to regional tourism hubs, with spending in key holiday hotspots surging 80% over the peak period, new NAB analysis shows.
The summer spending spike is estimated to be worth an extra $84 million to local economies, driven largely by restaurants and retail as Australians took the opportunity to travel, take a break and dine out.
The surge comes even as households face persistent cost-of-living pressures, with annual inflation still running at 3.4% in November and the RBA signalling that near-term rate cuts are unlikely until price growth is firmly back in its 2%–3% target band.
NAB identified the top hotspots by analysing almost 500,000 merchant terminal transactions in popular beach towns over a two-week period when millions of Aussies visited, compared with a typical fortnight.
Julie Rynski (pictured), NAB executive of metro and specialised business, said the summer tourism rush is critical for regional businesses.
“Millions of Aussies are in holiday mode and enjoying a well-deserved break. The mass exodus from capital cities to holiday hotspots is crucial for smaller, local economies,” Rynski said.
Rynski said many operators rely on the holiday period for a significant share of their annual turnover.
“While visitors enjoy beach days and summer reads, business owners in these areas are often at their busiest as the population of holiday hotspots swell," she said. "This peak period contributes to much of their annual turnover as the increases in accommodation, hospitality and service station spending show.
“Accommodation had the biggest increase in spending in Lakes Entrance in eastern Victoria, with spend up more than 600% over two weeks, while Margaret River in southern Western Australia has seen a 786% rise in retail sales.”
The NAB executive said the surge in visitor numbers translated into more shifts for seasonal staff and larger orders for local suppliers.
“A sweet-toothed surge at candy stores in Batemans Bay, a boat hire boom at Lakes Entrance, and a bakery blitz in Jervis Bay are among the quirkier spend trends we’re seeing among customers based on the data,” Rynski said.
“While many people returned to work this week, thousands remain on holidays or preparing to take time off. Business customers tell us they expect to remain busy until after the Australia Day long weekend.”
For hospitality and tourism businesses on the ground, the peak season is a make-or-break period.
Robert Bartlett, founder and head distiller at Jervis Bay Distilling Co, said the holidays are the highlight of the trading year.
“Summer is by far our busiest season. Locals and visitors alike flock to the cellar door, and orders from local venues really spike,” Bartlett said.
“We bring on extra hands and pull together as a team to keep up with demand. There’s such a great energy in town –people are relaxed, happy, and enjoying themselves.
“It’s a buzz to be part of their holiday, and we love helping create those great summer memories.”
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