A post-Easter survey by Tourism Council WA has revealed forward bookings for May, June and July have fallen 29 per cent across the state's tourism industry.
Tourism Council WA CEO Evan Hall said while fuel costs had eased slightly, visitor confidence had not returned, with many travellers taking a wait-and-see approach to travel planning.
Mr Hall said since the Easter long weekend and school holidays had passed, forward bookings had slumped further while operations costs continued to increase.
"Tourism businesses absorbed the combined blow of Cyclone Narelle and fuel uncertainty during Easter, but with forward bookings down, the next three months are looking bleak," Mr Hall said.
"A third of businesses have already cut staff hours or let people go as a result."
Mr Hall said tourism created 57,000 jobs across regional Western Australia and injected $11 billion in visitor expenditure into regional tourism towns, with the majority of these visitors driving into regional WA.
"At the same time that bookings are well down, businesses are also hard-hit by rising fuel and food costs, particularly tour operators and accommodation providers," Mr Hall said.
Mr Hall said the State Government had done a good job ensuring fuel distribution to regional WA, but now funding for marketing initiatives was needed to support small tourism businesses and boost travel to regional tourism towns.
"We need clear messages from State and Federal Governments that road trips to regional areas are essential economic activity and not unnecessary trips to be cut," Mr Hall said.
"We encourage Western Australians to travel during winter and take part in the wonderful tours and experiences WA has to offer."
