'We've got fuel here': tourism operators plead with visitors not to cancel

Tehran is roughly 12,922km away from Eurobodalla on the South Coast of NSW. Nevertheless, residents of this coastal area are just one example of the communities who are paying for Donald Trump's "excursion" into the Middle East.

As fuel prices continue to rise, operators across the area say the bigger concern is what happens next - especially in a region heavily reliant on tourism, hospitality and transport.

"It's not too bad at the moment. We're trying to wear the cost increases as much as we can," said Dani Kidd, who owns Grumpy and Sweetheart's cafe in Mogo.

"But yeah, we're waiting for it to hit."

That matters in a region where tourism contributes $683.4 million a year, accounts for 9.2 per cent of economic output, and supports one in 10 direct jobs.

If travellers decide it's too expensive to drive (or fly) to the South Coast, it will have a profound impact on the region.

Although few, if any, vendors in Eurobodalla have been without petrol, the perception that tourists could be stranded persists.

Andrew Duggan, manager at Oakleigh Farm Cottages, told ACM (the publisher of this masthead) that people had been calling to check whether there was fuel on the South Coast.

"If you live in the nightly news, it's all about petrol stations running out of fuel in regional areas," he said.

"It's a bit annoying they're having to come to that conclusion."

The misperception is also affecting Sally Bouckley, who owns tourism business Southbound Escapes in Narooma.

"I just think it's really important to get the message out to people looking to visit the area for school holidays, and going forward, that there is fuel in the petrol stations," she said.

"We're on a main thoroughfare, we've got fuel here for us."

Eurobodalla Mayor Mathew Hatcher said his biggest concern was that people wouldn't travel because of their worry about supply.

"There is no, no supply shortage on the coast," he said.

"We're finding it's cheaper in Batemans Bay than in some places between here and Sydney. It's still obviously at a premium, but it's at a better price."

Being so dependent on freight, fresh produce and labour, hospitality businesses are usually on the front line of economic shocks. But for the moment, many businesses on the South Coast are attempting to go on as usual.

General manager of the Oaks Ranch in Mossy Point, Josh Tyler, said he hadn't seen any impact on reservations as yet.

"Coming out the other side (of Easter), that's when people will start to maybe put the brakes on."

Mr Tyler said he was watching with bated breath for increased produce costs.

"We haven't seen that flow-through yet, only in our fuel levies on invoices," he said.

"I think we'd absorb it for a period. But if it continued for any more than three to six months, then we'd have to then consider rising prices."

Al Newbold, who owns Mr Bold Catering in Narooma, was also taking the hit for the time being.

"Being a small business owner, I'm the last person that wants to put the prices up because I don't want to scare people away," he said.

"So you know, you're just gonna eat those extra costs."

The impact of war, however, has been more immediate for food producers.

Narooma Bridge Seafoods operates two fishing boats, one of which is diesel-powered. While supply hasn't been a problem, price definitely has.

"One of our trawlers can use 1000 litres a day trawling," said co-owner Jake McCulloch.

"With diesel fuel prices going up, that's 1800 bucks just in a day."

The impost doesn't only affect expenses, but the size of the boat's catch.

"You can't just go around burning fuel, so you can't go hunting for fish," said Mr McCulloch.

"You've got to try and go where you think they are and stay there."

While his punts have petrol outboards, oyster farmer Jim Yiannaros has been feeling the pressure via freight.

"With all the orders that go to Sydney or Melbourne they've already hit us with the fuel levy," he said.

"We're looking at passing that on at about 50 cents a dozen, which is not huge, but when you're doing thousands of dozens of oysters, it adds up."

Mr Hatcher, who also owns Guerilla Roasters, said that skyrocketing freight charges would inevitably drive up the cost of coffee.

"Some of my suppliers that are shipping from Sydney are instantly saying we've now got this extra 20 per cent increase," he said.

Although Guerilla was also absorbing the price rise, Mr Hatcher said that cost would eventually have to be passed on to the consumer.

"The bigger concern for everyone is if this drags out for a month or two months or six months," he said.

"We're talking about coffee, but you'll see every single product going up in price."

For Mr McCulloch, increasing the price of his fish was a "catch-22".

"We don't want to sting people too much, because, you know, you also want people to buy the fish," he said.

"You could put it up $10 a kilo, but then they just won't buy as much."

While the federal government has halved the fuel excise tax and cut the heavy vehicle road user charge to zero, people living in the regions are still likely to be disproportionately impacted by the crisis.

Mr Pollock also said that the government's suggestion to work from home where possible was unworkable in southeast NSW.

"I mean, that doesn't apply to most of the people in southeast New South Wales," he said.

"We don't sit in offices. Most of us have got to get to work and back home, we don't just live around the corner or next to a railway station or a tram or a bus depot."

Some small business owners feel as though this current crisis is part of a disaster that's been rolling through the local economy since 2019.

"I mean, this area has been copping it hard over the last few years. Bushfires, COVID, and here we go again," said Mr Newbold.

"It makes you want to put your head in your hands and cry."

Other operators are more optimistic. Tim Gilbo, owner of South Coast Seaplanes, said that the price rises could impact regional tourism the way COVID did.

"If people stop looking overseas so much and start looking a bit more closer to home, that can have positive impacts," he said.

"We might see some benefits in terms of people preferring to take domestic trips rather than international trips."

Tour operator, Juliane Wisata of Rocky Trail Entertainment and Sea Otter said she believed what we're experiencing is a short-term consumer sentiment.

"We do hope that you know over autumn and winter that it will all calm down," she said.

"Everyone's trying to just roll with the punches and dive through this."