The volcanic ash cloud over the eastern parts of Australia is costing the tourism sector more than $10 million a day, an industry group says.
Tourism and Transport Forum chief executive John Lee said the return of the ash cloud was causing havoc across the country, after the major airlines suspended services in and out of the key hubs of Sydney and Melbourne.
"Our estimate for the wider tourism industry along the east coast and bottom part of Australia, the daily impact will be over $10 million," Mr Lee said on Tuesday.
He said tourism operators and those working in the aviation industry would be most affected.
"This has been a very, very tough year for the tourism industry," Mr Lee said.
"This is nearly the straw that will break the camel's back for this industry."
Mr Lee said service cancellations would not only affect domestic markets but also major international markets in China, the USA and the UK.
"For the wider tourism industry, we understand (there will be) over $10 million in costs for losses each day this continues," he told reporters at Sydney Airport.
"These costs will increase."
A Qantas spokeswoman said earlier on Tuesday the delays were "serious" but the airline did not yet have a figure on costs.
Virgin Australia, Qantas, Jetstar and Tiger all cancelled flights around Australia on Tuesday and some international services due to the risks posed by the ash cloud.
The airlines have also warned more flights will be cancelled on Wednesday, particularly at the Sydney, Melbourne and Canberra ports.
The ash cloud from Chile's Puyehue-Cordon Caulle volcano caused six days of disruptions last week as the plume made its way over Australian and New Zealand airspace.
