Falling dollar persuades Australian travellers to stay at home Tourism Jamie Freed Many Australians are changing their travel habits because of the severe drop in the value of the Australian dollar. 
They are looking at holidaying closer to home, in a destination with a cheaper currency or switching to lower-cost accommodation and activities at overseas destinations.
A survey by industry group Tourism & Transport Forum found just 5 per cent of travellers had already switched from an international to a domestic destination because of the currency's fall, but 15 per cent expected to travel more domestically in the future.
That fits with recent feedback from leading figures in the travel industry.AAT Kings managing director Anthony Hayes said this month that forward bookings by Australians had jumped by more than 10per cent since more were deciding to travel closer to home.
"We are certainly seeing very strong numbers for domestic destinations like the Northern Territory and Tasmania, and good growth into New Zealand as well," he said.
Flight Centre Travel Group managing director Graham Turner said last month there appeared to be increased demand for domestic travel. Tourism NZ chief executive Kevin Bowler said this week that growth in the number of Australians heading across the Tasman was also strengthening.
"We are just starting to see that," Mr Bowler said. "We will probably compete with the Australian holidaymakers more with interstate travel."
The bulk of Australian holidaymakers surveyed by TTF have not abandoned plans to head overseas just because the dollar has dropped.
But 7 per cent have switched an intended destination for one with a cheaper currency.
TTF chief executive Margy Osmond said: "The falling Aussie dollar is starting to have an impact on travel intentions and we can expect that impact to strengthen over time."
Despite the lower dollar, 48 per cent of Australians surveyed are still planning to take an overseas holiday in the next month.
The US is the most popular intended destination, followed by New Zealand, the UK, Japan and Thailand. Travel by Australians to the US grew by 16 per cent in   July despite the lower dollar, possibly because an increase in air capacity between the countries has led to very low fares.
'Early bird' sale fares to Europe remain below $1800 return for travel next year, although the prices on the ground will be higher than previously.
Trafalgar Tours has increased the prices of some of its European tours by 10 to 15 per cent as a result of the fall in the dollar.