Victoria's tourism industry, which has suffered a body blow with the recent bushfires, is feeling nervous about its future over the next 12 months.
The quarterly survey of business conditions within the tourism sector undertaken by the Victoria Tourism Industry Council says the industry is expecting weaker conditions, with general business conditions likely to decline.
Only 18% of recipients indicated they anticipate their business performance will be 'much stronger' or 'somewhat stronger' over the next 12 months - down from 24% on the previous survey.
VTIC chairman Jeremy Johnson said that during the 2009 summer quarter, profitability declined, influenced by ongoing wages growth.
"Looking forward, the industry is expecting weaker conditions," Mr Johnson said in a statement.
"Over the coming quarter, general business conditions are expected to decline, along with many other business indicators including sales, profitability, employment and overtime."
He said the results highlighted that the bushfires, general economic decline and pressure on wages is impacting on employment levels within the tourism sector.
"This is bad news when considered in the light of the large jump in unemployment in Victoria in recent statistics," Mr Johnson said.
"Bushfires have put a dint in the confidence of the tourism sector and governments and their agencies can assist by encouraging Victorians to holiday at home this Easter and return to visit regional areas affected by bushfires or close to bushfire-affected areas."
AAP