Travel agency concords are warning that the Australian tourism industry will see big falls in 2019.

The ACCC’s Competition Bureau is urging airlines and hospitality operators to consider reducing prices or closing down operations, including short-haul services.

It said a range of factors were at play including a warmer and wetter Australian winter, lower passenger numbers and an increase in air pollution.

Auckland Airport has been hit the hardest with a 20 per cent drop in arrivals, but there is hope it could rebound in 2019, according to ACCC head of competition Michael Sargent.

He said the ACCC has received “fantastic” feedback from industry about the impact of climate change and air pollution and has been working closely with the industry to provide them with further advice.

“This is something we are absolutely committed to ensuring that the industry gets the support that they need to get back to their pre-crisis levels of profitability and sustainable growth,” Mr Sargant said.

There is also a “need for more investment” from the Government, as a result of the Commonwealth Government’s carbon pricing plan.

But Mr Sorgent said he hoped “it doesn’t come too soon”.

“What we want to see is a transition away from coal-fired generation to more renewable sources,” he said.

“The longer that is left in the coal-generation fleet, the more money that will be needed for other things like renewable energy, and we want more of that investment to come from the Commonwealth.”

While it has been forecast that Australian tourism will decline by 15 per cent by 2019, the ACCc’s modelling shows a recovery in tourism will be slower.

Topics:airport-and-air-transport,air-pollution,environment,environmental-impact,industry,government-and,transport-transportation,travel-and/or-tourism,environment-policy,travel,australiaContact James SmithMore stories from New South Wales