The Morrison government has unveiled its $1.2 billion ‘bridge building’ aviation and tourism rescue package which will provide an estimated 800,000 half-price airfares for key areas to help more Australians ‘Holiday Here This Year’. But what about travel agents and the wider sector?
Today’s federal government announcement included an estimated 800,000 government-subsidised airfare tickets to be offered over the scheme’s duration which includes the Easter and winter school holidays.
The discounted tickets will go on sale from April 1 with return interstate flights to eligible locations receiving a 50 per cent saving until July 31 and you must travel by September 2021.
The package also includes Business loans of up to 10 years with a two-year principal and interest repayment holiday and financial support to keep 8600 international aviation workers employed between April and the end of October, the earliest chance for flights overseas to resume.
In return, airlines will need to assure the government every month that aircraft will be ready to take off when needed.
All of this sounds very generous and has been rightly welcomed with open arms by Qantas and Virgin Australia and the wider aviation industry.
“To be in the position where we can safely encourage and promote domestic travel puts us at the envy of the rest of the world,” said Virgin Australia CEO Jayne Hrdlicka in a statement.
Meanwhile, Qantas Group CEO Alan Joyce said: “This support is fantastic news for aviation and for the thousands of businesses, big and small, that rely on the tourism industry.”
Flight Centre Travel Group CEO Skroo Turner, however, was less convinced, saying: “It is a very small, very meagre package at best.”
“I just don’t think it is going to help anyone, unfortunately. I’m sorry to say that. I don’t like being negative,” he said.
So what does this mean for travel agents, suppliers and outbound tour operators?
If you’ve been reading the media wide coverage since the announcement you will have noticed the absence of ‘travel agents’ being mentioned as part of the package.
In fact, travel agents haven’t been mentioned at all by the government or across the media.
That’s because today’s first announcement is targeted purely at “aviation and tourism.” So take that as a good thing in light of the tremendous media attention on the plight of travel agents and the sector in general in recent weeks.
After he’d finished waving a fake boarding pass around (genius work PR team), Scott Morrison said this morning on Sunrise, “There’s further support for the travel agents today,”
Except that it’s apparently not going to be today now.
It’s Karryon’s understanding that more details are to be announced tomorrow, Friday 12 March with further support grants and interest-free period loans expected.
While details are still to be clarified, Tourism Minister Dan Tehan has confirmed that a further $128 million will be available to assist the travel industry due to the ongoing closure of Australia’s international borders.
According to a statement released by the Council of Australian Tour Operators today: “As the overall support package is very involved and covers multiple sectors, the government are using today to focus on the aviation and loans component.”
“Details around the exact format of the scheme are yet to be confirmed however idiosyncrasies identified in round one of the $128m grant scheme will be ironed out and there will be more funds available for smaller businesses this time around.” said the CATO statement.
Looks like we’ll just have to wait another 24 hours.
Stay strong everyone.
Source: AAP
