Fuel crisis impacts Australian tourism and travel plans ahead of Easter 2025
Consensus Summary
The core issue is the fuel crisis driven by the Middle East conflict, which is severely impacting Australia’s tourism sector ahead of Easter 2025. Southern Queensland and regional areas like NSW face cancellations and reduced bookings, with operators reporting losses of thousands of dollars due to tourists’ fears of fuel shortages. Southern Queensland’s K’gari (Fraser Island) is particularly hard-hit, with prices reaching $4.25 per litre and businesses like Drop Bear Adventures losing $10,000 to cancellations. The federal government’s fuel excise cut is seen as a temporary relief, but operators warn uncertainty over the crisis’s duration is deterring travelers. While some destinations like North Stradbroke Island remain busy, others struggle with 50-60% drops in bookings, and airlines like Jetstar are cutting trans-Tasman flights due to rising costs. Operators are responding with fuel vouchers and flexible bookings, but the broader trend shows travelers adjusting plans or postponing trips entirely, with RACQ reassuring that supply shortages are unlikely despite price hikes.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Southern Queensland tourism operators report cancellations costing thousands, including $10,000 lost by Drop Bear Adventures on K'gari (Fraser Island) due to fuel concerns (ABC Article 1, ABC Article 2)
- Fuel prices in Queensland reached $4.25 per litre on K'gari, among the highest in the country (ABC Article 1, ABC Article 2)
- Rising fuel prices are linked to the Middle East conflict and have led to cancellations and reduced bookings across regional Australia (ABC Article 1, ABC Article 2)
- Tourism Research Australia reported a $2.3 billion drop in overnight visitor spending nationally in the year to December 2025, with Queensland losing $379 million (ABC Article 1, ABC Article 2)
- The federal government announced a cut to the fuel excise to help curb costs, welcomed by tourism operators (ABC Article 1, ABC Article 2)
- Don Kemble’s Murrurundi Caravan Park in NSW saw cancellations rise to 2-3 per day, down from 6-8 vans booked nightly (ABC Article 1, ABC Article 2)
- Jetstar announced cuts to 12% of trans-Tasman flights from May due to fuel cost pressures (ABC Article 1, ABC Article 2)
Points of Difference
Details reported by only one source:
- Paradise Resort on the Gold Coast reported 10% lower Easter bookings compared to average, attributing it to rising interest rates, cost of living, and fuel costs (ABC Article 1)
- Noosa Quad Bike Tours saw bookings drop by 60% while day-to-day expenses rose due to fuel costs (ABC Article 1)
- Fulvio Ruckli pre-bought 400 litres of fuel in Brisbane to avoid K'gari’s $4.25/litre price (ABC Article 1)
- Coastal Cruises Mooloolaba relies on a single waterfront fuel stop holding only 5,000 litres, requiring early weekend refuels (ABC Article 1)
- Ferry bookings to North Stradbroke Island remained strong despite fuel concerns (ABC Article 1)
- Aussie World on the Sunshine Coast expects families to travel closer to home due to fuel prices, benefiting local drive markets (ABC Article 1)
- RACQ principal economic expert Dr Ian Jeffreys stated fuel availability is not an issue, with supply contracts being honored (ABC Article 1)
- Fuel prices on K'gari are the most expensive in Queensland and among the priciest in Australia (ABC Article 1)
Contradictions
Conflicting information between sources:
- ABC Article 1 states fuel prices on K'gari reached $4.25 per litre, while ABC Article 2 does not specify a price but focuses on shortages and cancellations without this exact figure
- ABC Article 1 reports some tourism sectors (e.g., North Stradbroke Island ferries) remain strong despite fuel concerns, while ABC Article 2 does not mention this resilience in other regions
- ABC Article 1 highlights that fuel availability is not an issue per RACQ, but ABC Article 2 emphasizes widespread fuel shortages across hundreds of service stations without RACQ’s reassurance
- ABC Article 1 notes that Easter bookings at Paradise Resort are 10% lower than average, while ABC Article 2 does not provide a specific percentage for cancellations at caravan parks like Murrurundi
- ABC Article 1 mentions that some businesses (e.g., Aussie World) expect a silver lining from fuel prices due to closer-to-home travel, but ABC Article 2 does not discuss this adaptive trend
Source Articles
Thousands lost to cancellations as fuel crisis bites southern Qld tourism sector
Tourism businesses say they’re bearing the brunt of surging fuel prices, with some losing thousands to booking cancellations and extra operational costs, while others field back-to-back calls from anx...
Rising fuel costs force Australians to rethink Easter holidays
Rising fuel prices driven by the Middle East conflict are hitting the domestic tourism sector, with cancellations surging ahead of the Easter long weekend....