Petrol price hike starting to impact local tourist operators as Easter approaches

Traditionally Easter is one of the busiest times of the year for local tourism accommodation and attractions – but 2026 isn’t your typical year.

Many people have decided to stay home this Easter following the outbreak of war in the Middle East, the resulting spike in petrol prices and lack of certainty about future supplies.

“Easter has always been a very strong time of year for caravanning and camping," said Alan Gibson, manager of the Wollongong Surf Leisure Resort at Towradgi.

“It’s feeling similar to the impact of Covid on the industry.”

Last week caravan park operators from across the region met in Kiama and the growing impact of the soaring petrol prices was the ”hot topic of the day”.

“Right now we’re OK, but the big challenge is the uncertainty once Easter is over,” Alan said.

“It’s certainly a tough time for the industry and I’m afraid it’s going to get worse before it gets better… it looks like we’re in for a long winter ahead.”

Alan said South Coast caravan parks and hotels do have an advantage of sorts given their location.

“We’re a little bit protected being so close to Sydney, which is just a stone's throw away.”

That makes it easier, and cheaper, for motorists wanting a getaway.

That was the case for Sydney residents Sarah Keane and Mikhail Faynerman who had time on their hands when their trip to Lord Howe Island was called off at the last minute.

“We had the time off, so we decided to take a short break down here in Wollongong,” Sarah said as she prepared to enjoy the autumn sunshine with a bike ride.

A survey by the NRMA of 1800 Australians found more than half of the participants have reduced the amount of driving they do in a bid to reduce their spending on petrol and diesel.

The survey found 52 per cent of those asked said they were driving less as a direct response to the Middle East-driven price hikes.

Max at the Boat Harbour Motel at Wollongong Harbour told The Illawarra Flame there had been “a lot of cancellations" once the price of fuel started to climb towards $3 a litre. He said most people who’d called off their travel were travelling longer distances.

He said that, despite the loss of business, overall the Boat Harbour Motel bookings were “stable”.

“As people cancel, others are booking in.”

Staff at the Novotel at North Wollongong are expecting a quieter Easter than usual. They said people were tending to leave their travel plans until the last minute.

At Kiama’s Sebel Hotel, staff said there hadn’t been a significant impact on reservation numbers “at this stage”.

One Sebel regular said if the fuel prices continued to worsen they’d catch the train to Kiama so they could continue to enjoy their favourite South Coast destination.

Meantime, Wollongong City Council has decided not to follow the lead of Kiama Council, which has directed staff to work from home if possible to help conserve fuel.

“Wollongong City Council is monitoring the situation in relation to global fuel supply closely,” a spokesperson said.

“It has not been necessary to make any changes to how we deliver our essential services to date, including within our workforce.

“Our employees continue to have access to flexible working arrangements where it is appropriate to their role. We also support staff to use transport that is less reliant on fuel, such as walking, cycling and public transport.

“We have plans in place should we need to make adjustments in future,” the spokesperson added.