Coming from an encouraging push at the onset of 2010, regional tourism operators are now witnessing a downturn, according to the May survey by the Victorian Tourism Industry Council, which showed declining profits for most operators.

The study pointed to wage increases and decreasing visitor spending as culprits for the plunging trend as Steven Wojtkiw, chief economist of the Victorian Employers' Chamber of Commerce and Industry, called on the government to aid tourism operators in reducing their costs.

Mr Wojtkiw said that the industry was looking forward for a banner year following good turnovers seen in the latter part of last year and the early part of this year.

He described the present situation as moderation of the industry's earlier performance and "it does give cause for concern and does mean that governments at all levels need to do what they can to assist tourism operators."

According to Mr Wojtkiw, the industry's regional marketing badly needs infusion of better investment to get it through these quiet periods.

He said that the government must "encourage the value of tourism through tourism promotion and marketing to highlight the many strengths of tourism in regional Victoria and its great natural attractions."

Mr Wojtkiw also highlighted the importance of keeping low operating costs for tourism businesses by giving them access to highly-skilled staff at affordable rates.