New research led by Griffith University is shedding light on the growing strain public liability insurance is placing on Australia’s visitor economy, with early findings pointing to systemic challenges beyond the control of individual businesses.
The study, part of the national THRIVE 2030 visitor economy strategy, examines the underlying architecture of insurance for tourism operators and identifies pathways to improve affordability and access across the sector.
Initial insights reveal that while businesses can strengthen internal practices such as risk management and reporting, the most significant drivers of rising insurance costs are external. These include the escalating impact of climate change on the frequency and severity of natural disasters, as well as ongoing global uncertainty following the COVID-19 pandemic.
Within Australia, the issue has been intensified by post-pandemic economic conditions. With many operators facing cost-of-living pressures, businesses have limited ability to absorb or pass on higher premiums—leaving insurance costs as a growing constraint on day-to-day operations and long-term viability.
The research highlights that several parts of the visitor economy are disproportionately affected, including caravan parks, event venues, festivals, attractions, adventure tourism operators, amusement rides and agritourism businesses. For many in these sectors, insurance affordability is emerging as a critical barrier to growth and, in some cases, continued operation.
Led by Griffith University PhD scholar Fiona Antonucci, the project is co-funded by the Australian Trade and Investment Commission (Austrade) and brings together expertise from across academia and industry. The research team includes Professor Sarah Gardiner, Director of the Griffith Institute for Tourism, Professor Basak Denizci Guillet, and CSIRO economist Professor George Verikios.
The findings are expected to inform a series of policy recommendations and industry-focused outputs aimed at improving the availability and affordability of public liability insurance. By identifying practical reforms and innovative approaches, the research seeks to support a more resilient and sustainable future for Australia’s visitor economy.
Industry input will continue to play a role in shaping the final outcomes, ensuring the research reflects the real-world challenges and priorities of tourism operators across the country.
