Australian tourism sector impacted by fuel shortages and price surges ahead of Easter 2025
Consensus Summary
Australia’s tourism sector is facing severe disruptions ahead of Easter 2025 due to soaring fuel prices and shortages linked to the Middle East conflict. Overnight visitor spending dropped $2.3 billion nationally in 2025, with Victoria, NSW, and Queensland hardest hit, as operators report widespread cancellations and operational costs surging 50–60% in some regions. Hundreds of service stations face shortages, and prices like $4.25 per litre on K’gari (Fraser Island) have forced travelers to stockpile fuel or alter plans. While the federal government cut the fuel excise to ease pressures, businesses like caravan parks, quad bike tours, and marine operators struggle with reduced bookings and heightened anxiety over remote travel. Some destinations, however, remain resilient, with strong ferry and airport bookings suggesting travelers are adjusting to shorter trips closer to home. Experts warn uncertainty over duration—not just price—is deterring bookings, and airlines like Jetstar are cutting flights to manage costs, though Qantas is expanding international routes. Contradictions arise between reports of widespread shortages and assurances from RACQ that supply contracts are being met, highlighting gaps in public perception versus reality.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Rising fuel prices driven by the Middle East conflict are causing cancellations in Australia’s domestic tourism sector ahead of Easter 2025.
- Tourism Research Australia reported overnight visitor spending fell $2.3 billion nationally in the year to December 2025, with Victoria ($1.2B), NSW ($410M), and Queensland ($379M) hardest hit.
- The federal government confirmed hundreds of service stations across Australia had been impacted by fuel shortages as of early 2025.
- Fuel prices in Queensland reached $4.25 per litre on K’gari (Fraser Island), among the highest in the country.
- Jetstar announced it would cut about 12% of trans-Tasman flights from May 2025 due to cost pressures, including Auckland-Sydney and Auckland-Brisbane routes.
- The federal government cut the fuel excise in early 2025 to help curb rising fuel costs.
- Don Kemble’s Murrurundi Caravan Park (NSW) reported 2–3 cancellations per day, down from typical bookings of six to eight vans per night.
- Reflections Holidays (NSW) issued $25 fuel offset vouchers to guests and a $50 fortnightly fuel allowance to employees traveling over 10 km to work.
- Tourism Tropical North Queensland CEO Mark Olsen stated marine tourism and accommodation costs had risen 50–60% due to fuel price hikes.
Points of Difference
Details reported by only one source:
- Paula and Michael Candlish postponed a trip to Western Australia due to fuel shortages, having traveled 60,000 km in their caravan over four years.
- Michael Syms (Sydney’s largest cat boarding facility) introduced a pet taxi service and switched to an electric van for smaller trips due to fuel uncertainty.
- Qantas increased capacity on flights between Australia and Europe, adding services like Perth-Rome and Sydney-Paris via Singapore.
- Vietnam Airlines canceled dozens of domestic flights from May 2025 due to fuel costs, per Central Queensland University’s Stephen Leib.
- Airlines like Jetstar chose to cut flights over raising prices because holidaymakers are price-sensitive, per aviation expert Stephen Leib.
- Paradise Resort (Gold Coast) reported 10% lower Easter bookings due to rising interest rates, cost of living, and fuel prices.
- Noosa Quad Bike Tours saw bookings drop by 60% while daily expenses rose, per owner Charles Marais.
- Drop Bear Adventures (K’gari) lost $10,000 to cancellations in recent weeks, partly due to flight disruptions and fuel shortage fears.
- Fulvio Ruckli and friends bought 400 litres of fuel in Brisbane to avoid K’gari’s $4.25/litre prices, transporting it for multiple vehicles.
- Coastal Cruises Mooloolaba’s Darren Smith had to secure fuel early for the Easter weekend due to limited waterfront fuel storage (5,000 litres).
- Ferry bookings to North Stradbroke Island remained strong despite the fuel crisis, and Gold Coast Airport expected record visitor numbers.
Contradictions
Conflicting information between sources:
- Article 1 states fuel shortages are widespread and service stations are impacted, but RACQ’s Dr Ian Jeffreys (cited in Article 2) claims fuel stockouts are highly unlikely and supply contracts are being honored.
- Article 1 reports airlines like Jetstar are cutting flights due to cost pressures, while Article 2 does not mention domestic airline cuts beyond Jetstar’s trans-Tasman reductions.
- Article 1 highlights Qantas increasing capacity to Europe, but Article 2 does not discuss Qantas’ response to fuel costs.
- Article 1 mentions Michael Syms’ cattery seeing cancellations due to fuel fears, but Article 2 does not reference pet-related tourism impacts.
- Article 1 cites a 2–3 cancellation rate per day at Murrurundi Caravan Park, while Article 2 does not provide comparable regional booking data for comparison.
Source Articles
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....
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...