CARNAL NATION

If sex is up there with tobacco and alcohol which in being notoriously resilient to hard times, how is it that the Australia sex services industry bleeding? The answer: online dating sites, according to the independent business information analyst IBISWorld.

The AU$1.2 billion industry has bled AU$74 million over the past financial year, with brothels taking the hardest hit. In contrast, the market for exotic dancers and strippers, albeit starting from a small base, has steadily grown.

The digital age may prove to be the nemesis of prostitution. IBISWorld, using industry surveys and Australian Bureau of Statistics data to crunch the numbers, said the 6 per cent contraction the sex industry experienced in the last financial year was most likely attributable to the surge in online dating sites which allow people to be frank about their penchant for casual sex.

About 1.5 million Australians now have accounts with sites such as RSVP, LavaLife and eHarmony, the majority expressing the intention of finding a long-term relationship. Other sites which are more upfront about their purpose, such as FlingFinder, adultmatchmaker.com.au and benaughty.com are proliferating.

''Lee'', the manager of La Petite Aroma in Chatswood, is not buying Mr Butler's theory. She is convinced the drop in her business is due to the growing number of illegal establishments sprouting up in her local area.