CANBERRA (Reuters) – Australia will subsidize 800,000 domestic flights, help its two main airlines and offer cheap loans to small tourism companies as part of an A $ 1.2 billion (US $ 921 million) package to revitalize the travel sector, Prime Minister Scott Morrison said on Thursday .

FILE PHOTO: Tourists pose for photos at a Three Sisters rock formation overlook in Blue Mountains National Park after regional travel re-opens as coronavirus disease (COVID-19) restrictions are eased in New South Wales in Katoomba, Australia . June 5, 2020. REUTERS / Loren Elliott / file photo

Tourism is one of Australia’s largest industries, valued at over A $ 60 billion, and employs approximately 5% of the country’s workforce. However, the sector was crippled when the country closed its international borders in March 2020 to contain the spread of COVID-19. Tens of thousands of people remained in the country’s wage subsidy system.

Morrison is looking to prop up the industry if the subsidy system ends this month and will pledge another stimulus package for the travel sector, according to excerpts from an announcement by Reuters.

Morrison will say Australia will subsidize the flights of 800,000 domestic flights between April 1 and July 31, while its international borders remain closed. It will pay 50% of the cost of the flight to 13 destinations, he will say. The airlines have agreed to offer additional flights to these locations.

“This is our ticket to recovery – 800,000 half-price airfare to get Australians to travel,” Morrison said.

The Prime Minister will also say his administration will provide financial assistance to Qantas and Virgin Airways between April 1 and October 31 – when international flights are expected to resume.

Morrison did not disclose the level of funding to keep 8,600 workers, planes in “ready to fly” condition and international passenger services at pre-pandemic levels.

Australia will also offer up to A $ 5 million in loans to tourism companies such as tour operators, with a two-year repayment period, the Prime Minister said.

“We need Australians who do their patriotic duty and book a vacation this year,” Trade Minister Dan Tehan will say.

($ 1 = 1.3026 Australian dollars)

Reporting from Colin Packham; Editing by Pravin Char

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