A SLUMP in business travellers, tourists and overseas workers threatens to deliver a new shock to Australia's economy, already facing sharply lower commodities exports and the international credit crunch.
New figures reveal a sharp drop in international visitors coming to Australia, with business travellers, tourists and temporary skilled migrants staying away as corporations cut costs and tourists stay closer to home.
Immigration Department figures obtained by The Weekend Australian show the number of business visas fell 30 per cent in January compared with the same period last year, and that temporary skilled migrant visas have dropped by 33per cent since September.
The slump in inbound visitors came as the latest national accounts figures showed gross domestic product fell 0.5per cent in the December quarter as sharp declines in the financial position of Australia's trading partners put the economy into reverse.
Australian Chamber of Commerce and Industry acting chief executive Greg Evans said business travel tended to be one of the first items targeted as companies looked to cut costs. Bookings in the convention market had already dropped since December.
In signs that local businesses were abandoning the controversial 457 visa scheme, the Immigration Department recorded a 16 per cent drop in the number of visas issued last month, down to 4070 from 4830 in January.
Mr Evans said the 457 program was demand-driven and provided a good barometer of local confidence.
Industry groups fear the decline in tourist numbers, while modest, could be the harbinger of a much sharper drop.
Tourism Australia managing director Geoff Buckley said his organisation had already forecast a 4.5 per cent drop in tourist numbers for this year.
Further downward revisions were possible as Australia's main tourism markets braced for worsening economic conditions, Mr Buckley said.
"The global economy is sliding down so that (forecast) may have to be readjusted," Mr Buckley told The Weekend Australian.
"We're fairly sure Australian tourism has not yet seen the worst of it."
Tourist numbers for January were artificially inflated by the fact that the Chinese New Year celebrations were held in that month, resulting in a spike in international visitor numbers as people sought out their relatives, Mr Buckley said.
Tourism Minister Martin Ferguson said the ABS figures confirmed the industry was facing an uncertain year, with the global financial crisis leading to fewer people travelling.
"This is a global phenomenon affecting all countries, and neither Australia, nor our tourism industry, is alone," Mr Ferguson said.
"The good news within the ABS stats is that fewer Australians are presently travelling internationally.
"Domestic tourism contributes around 75 per cent of the Australian tourism sector's business, and today's statistics are consistent with the anecdotal evidence of recent months suggesting Australians have chosen to holiday at home this summer."
However, the one category of overseas visitor to hold up was international students, whose numbers remained at record highs.
Education Minister Julia Gillard announced last month that overseas enrolments had risen a record 20.7 per cent to 543,898 last year.
Revenues from overseas students contributed $14.2 billion to the economy in 2007-08, making it Australia's third-largest export earner.
A University of Sydney spokeswoman said there had been a "strong increase" in international students. "The numbers have increased by approximately 15 per cent," the spokeswoman told The Weekend Australian.
"The university is also particularly pleased with the strong increase in PhD students. PhD acceptances are up by around 40 per cent."
In January, a total of 28,621 business visas were issued. That compared with 41,091 in January last year and 35,903 in January 2007.
The Rudd Government has all but guaranteed it will cut Australia's record high immigration quota in the May budget in response to the rapidly deteriorating global economy.
During Senate estimates hearings in Canberra last month, Immigration Minister Chris Evans said the Government's priority was to protect local jobs.
'We want to make sure ... our skilled persons have access to those job opportunities first, and that migration continues to meet the shortfalls in the skills areas where we need them," Senator Evans said.
The Immigration Department figures reflected Australian Bureau of Statistics numbers released yesterday, which showed that overall short-term visitors to Australia declined by 3.8 per cent in January compared with a year earlier.
Short-term arrivals are defined as people coming to Australia for less than 12 months.
They include tourists, business travellers and students.
But while fewer people are coming to Australia, fewer are leaving.
According to the ABS, the number of short-term departures for January was just 0.3 per cent up on January the previous year.
That compared with an 11.6 per cent increase on January 2007 and an 8.4 per cent spike on January 2006.
Figures from the Department of Immigration showed that the number of tourist visas issued in January was down by about 8 percent compared with January last year.
