Tourists told to avoid Perth's 'astronomic costs'

travel industry website has suggested 'travellers give WA a wide berth until the mining boom is over,' saying the cost of food and accommodation is through the roof. 4

Travel industry writer John Alwyn-Jones wrote his assessment after attending the Australian Tourism Exchange in Perth, a gathering of over 1300 industry representatives, in June this year.

"With the Tourism Australia events team doing a great job as always, their efforts may well have been wasted, at least in terms of showcasing WA, by the astronomic costs being experienced by delegates in Perth," Mr Alwyn-Jones wrote.

He told ABC Radio that he was particularly shocked by the cost of eating out.

"I live on the Sunshine coast and I can pay $3.50-$4.50 for a beer, so when I paid $9.60 in an Irish pub in Perth I thought, this place is astronomically expensive."

Mr Alwyn-Jones said he also paid $79 in a pub for two hamburgers and three drinks, and that a number of the travel industry staff he met at the conference told him they wouldn't recommend Perth as a holiday destination.

"I think Perth is an awesome city, it's just sad is that the cost is so high that it's going to put a lot of people off," he said, suggesting that Perth's reputation would suffer long term damage, which would hit hard after the mining boom ends.

Evan Hall, CEO of the Tourism Council of WA agreed that Perth struggles to compete with other international destinations, saying it's due to the mining boom pushing up prices and a labour shortage in the hospitality industry.

"Certainly there are a lot of cost pressures coming through the tourism industry, it does make us less competitive and it's a perpetual struggle to offer good value holidays."

But he also thinks stories of exorbitant meals prices don't give the full picture.

"You really don't have to pay $79 for two hamburgers and a couple of beers in Perth, so I think there has been a bit of selective reporting there," Mr Hall said.

"You can spend a lot of money in Perth or you can have a modest holiday, depending on what your preferences are."

Evan Hall also rejects the idea that prices are being hiked unreasonably.

"I don't see price gouging, what I see is that businesses are very frustrated. I've seen margins squeezed as tightly as they've ever been."

And puts some of the blame on the state government, which he says is adding to costs faced by tourists.

"The passenger movement charge that people are charged to arrive at Perth airport has gone up to $55. We are charging people just for the privilege of coming here."

"They've increased the taxes on management investment trusts which is the main way that we would get new hotels built in Perth, which we need."

"We are very frustrated that it is the small tourism businesses that are slicing their margins to stay in the game when the real cost drivers are coming from government."

Source: ABC Perth, 4 July 2012