With out JobKeeper Australian tourism companies face ‘annihilation’

According to the Australian Tourism Export Council, Australian tourism companies will be “destroyed” without any further assistance from JobKeeper.

The Australian Tourism Export Council (ATEC) calls on the federal government to continue to provide financial support to the tourism industry and especially to export tourism companies that are unable to operate anywhere near their current level.

ATEC Industry Pulse Check, conducted in January, shows domestic travel has replaced less than 20% of international visitor revenue, with most export tourism companies relying on the JobKeeper supplement to meet those goals.

With borders closed and export tourism companies not having access to their international markets, 60% have less than 50% of their staff and service capacities, with most of them only surviving with the support of the JobKeeper supplement.

Peter Shelley, Managing Director of ATEC, comments, “The Australian tourism companies have persevered with JobKeeper’s support but will have to face annihilation next month after the program ends if the government does not provide further assistance.

“The Australian tourism industry has faced tremendous setbacks over the past 12 months, from bushfires to floods to the COVID crisis that closed international borders and left tourism companies without customers.

“Tourism companies were optimistic that international borders would now be open and visitors would return, but all signs suggest that these companies are facing another difficult year.

“State and Territory governments need to reassure them how to respond to COVID outbreaks and find a clear path to reopening international travel that adequately manages health risks and the effective adoption of vaccines to keep our industry safe for the future give.”

The Export Tourism Industry ‘Pulse Check’ examined how Australian export tourism businesses have performed over the past 12 months and revealed:

• Around 60% of tourism companies have less than 50% of the staff and service capacities
• While 75% of tourism companies have been able to supplement part of their income from domestic visitors, this expenditure accounts for less than 20% of income from foreign visitors
• 55% of tourism businesses will not survive until September without government support (while international borders remain closed).
• 95% of inbound tour operators (ITOs) – important tourism export brokers – have a turnover of less than 10% compared to 2019
• 50% of ITOs are unable to attract domestic businesses, and for those who do, it is less than 10% of their international market.
• 80% of ITOs will be gone without government support by September, making restarting the inbound tourism industry very difficult.

Shelley added, “Through no fault of their own, successful tourism businesses across the country have been decimated by a series of setbacks that culminated in international border closings.

“These are the same companies that were instrumental in helping generate $ 45 billion in export revenues in 2019 and delivering thousands of jobs to regional communities across the country that will create future jobs and economic prosperity.

“With the success of our export tourism industry over the past decade, with international visitors adding more than $ 350 billion to our economy, we need to make sure these companies survive.

“Once the borders are reopened, these companies will recover quickly and again make significant contributions to our export earnings, support the local economy and rebuild Australian jobs.”

Image: Chinese tourists with twelve apostles

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