The latest quarterly International Visitor Survey, released on 10 December, shows a sharp fall in the number of people choosing to holiday in Australia, according to peak industry body Tourism & Transport Forum (TTF).

TTF Executive Director Olivia Wirth says while overall visitor numbers are stable, the holiday market is down significantly. "There's been a 7.5% drop in the number of people coming to Australia for a holiday in the September quarter compared to last year," Ms Wirth said, "which shows the importance of maintaining a presence in overseas markets and continuing to promote Australia internationally as a holiday destination."

"Holiday visitors are still by far the biggest proportion of international tourists who come to Australia, so any fall in this sector is a concern. "The decrease in numbers has seen holiday visitor expenditure drop 5.5%.

"Looking at specific source markets, Japan's slide continues, with a 19.1% fall in total visitor numbers compared to the September quarter last year. "Visitor numbers from China were down 12.3% on last year, while there's also been a 4.6% fall in visitors from the UK - our third biggest market.

"TTF believes we're yet to see the full impact of the global financial crisis and we expect these trends to continue for some time, but we know the economy will recover, and we must ensure we are in a position to capitalise when that happens. "In the interim, we're calling on government to include tourism priorities in the allocation of infrastructure funding.

"Providing government funding for key projects will generate subsequent private investment and economic activity. "TTF is also backing the government's push to encourage Australians to take a holiday at home over the coming months to help stimulate the economy and minimise the impact of the global financial crisis.

"Australians have 121 million days of leave accrued at the moment worth $31 billion, and we'd like to see people who can afford it have a domestic holiday. "Many families are also receiving money from the government as part of its efforts to kickstart the economy - what better way to share the benefits than by spending some on a family holiday?

"Tourism provides sustainable employment for about half a million Australians all around the country and people can help maintain those jobs by travelling in their own backyard." Ms Wirth said while the holiday market is down year on year for the September quarter, other sectors are performing well.

"Overall visitor numbers, visitor nights and expenditure are all being propped by increases in the business, education and employment sectors," Ms Wirth said "The education sector in particular needs to be congratulated for its strong performance, with a 10.5% increase in expenditure for the quarter compared to last year.

"For the year ending September, the education sector accounted for 33% of international visitor expenditure while accounting for only 7% of visitor numbers."