Koalas do stress easily and dont show many signs, but if the people running the handling are trained to recoginse signs of stress and koalas are rotated regularly,
One problem is, not all Koalas are happy with being handled. Some stress even if a keeper picks them up to move them to another tree. Others stress with the public after ten minutes of close contact.
And I've known hand-reared Koalas that are nick-named "Spawn of Satan" - not stressed by people at all, just enjoy sinking their teeth into your shoulder.
Rotating them regularly is great
if you've got enough to rotate regularly.
At the time the ban was introduced Taronga Zoo's Koala Encounters (their photo op) allowed you to touch the koalas, but not hold them. When the ban became effective, Taronga banned touching them as well - you could stand beside the Koala and get very close but not make physical contact. Even this was enough to stress some Koalas.
Many people were upset by this policy, but others appreciated the animal's welfare although non-english speaking people were often confused (having seen ads of people holding them in tourist brochures for other places). I remember one little old Chinese lady that didn't speak English, stood beside the sleeping Koala to have her picture taken, wasn't happy about the animal being asleep so she reached into her bag and produced a rolled up newspaper and she proceeded to bash the Koala on the head with the paper to wake her up! It wasn't a thick newspaper and did no damage to the anaimal, who looked up to see what was going on went back to sleep again - I think the noise of us yelling at this lady and then ushering her out of the enclosure was probably more disturbing than the beating!
Koalas are pretty stupid. For some members of the public I would liken a Koala to a three year old child, intelligence-wise, and then given them this example to ponder: if you went to a supermarket and picked up a three yesar old child you had never seen before - took it out of it's stroller - so you could have your photo taken with it, then passed it around to more strangers for the same purpose, do you think it might start screaming it's lungs out?
As far as money goes, I can tell you there are LOTS of people, both Australians and tourists, who will pay to have there photo taken standing by a Koala. During January, on a sunny day, we could easily do 200 people an hour. If they had been holding the Koala, we'd have much less people through in that time (although, presumably, you'd be paying more to hold the animal). That's not to say there would be less people wanting to go through, there would be more - I remember many people (usually Americans) leaving the queue when they found they couldn't "hold a kayola bar".
As I said, standing beside a Koala and not touching it it still very popular with many people. The 'not holding' policy in NSW is a policy that considers the welfare of the animal. Tourism NSW should accept this fact and get on with their job. In fact, if they were sensible, they should actually promote the fact that NSW is the Koala Welfare State (or some similar such spin).
In principle, I agree with the policy because I know some facilities would put the almighty dollar before the animal's interests.
Hix