Swine flu has created a "perfect storm" for an Australian tourism industry already reeling from the global recession and facing its worst downturn in 20 years, experts said Tuesday.
Analysts fear the swine flu will be more devastating to tourism than the SARS crisis, when many international visitors shunned Australia because of the long flights needed to reach Down Under.
They said tens of thousands of jobs could be at risk in the tourism sector, which generates 24 billion dollars (17.3 billion US) a year from international visitors, making it Australia's third-largest export earner.
"It is indeed a perfect storm," said Tourism and Transport Forum executive director Olivia Wirth.
"It's too early to tell the full impact of swine flu but if it's anything like the SARS virus there are very, very tough times ahead.
"Australia's vulnerable because we're a long-haul destination and anything that acts as a barrier to people getting on a plane and coming here is going to hurt us."
Since the swine flu crisis erupted this week shares in Australian airlines Qantas and Virgin Blue have dropped on investor expectations it will impact on the carriers, which have already slashed jobs and flights due to the recession.
Wirth's Tourism and Transport Forum on Tuesday released a report from economist Geoff Carmody that predicted the recession could cost 29,000 jobs in the industry.
Deutsche Bank analyst Cameron McDonald said psychological factors played a major role in how such crises hit travel and tourism.