The Greater Sydney two-week lockdown covering the entire NSW school holidays is expected to cost Australia’s struggling travel and tourism industry more than $6 billion.
The Tourism and Transport Forum (TTF) says the industry will struggle to survive more lockdowns, imploring the federal government to consider subsidies and urgently boost vaccine rollout rates.
It estimates the latest COVID-19 outbreak and the border restrictions imposed on Sydney and NSW residents will devastate the mid-year school holiday period for travel-related firms, with spending predicted to be down by $6.3 billion nationally.
Forum chief Margy Osmond says NSW’s tourism sector will lose business worth $2.1 billion – or $153 million a day – almost one-third of the total losses predicted nationally for the holiday period.
It’s the third school holidays in a row that a COVID outbreak had forced a lockdown in a capital city.
“While health remains the number one priority in the management of COVID-19 … I’m not sure how much longer we can survive while this lack of certainty continues,” Ms Osmond said on Monday.
The latest outbreak was proof of how important it was for the vaccination program to be fast-tracked, she said.
“The tourism industry continues to suffer from a lack of international travel and the lack of confidence among Australians in the domestic travel market and in planning holidays is diabolical, making it very difficult for businesses in our sector to stay afloat,” Ms Osmond said.
TTF data showed that in the equivalent 2019 school holidays more than 1.7 million Australians travelled domestically but it’s predicted the Sydney lockdown will see that number drop by 73 per cent – to about 460,000 travellers.
This situation confirmed the federal government’s decision to end the Jobkeeper wage subsidy – particularly for the tourism industry – in March “was somewhat short-sighted”, Ms Osmond said.
“They will now need to look very seriously at some other form of ongoing support for the tourism sector to ensure we come out the other side of the pandemic.,” she said.
Meanwhile, Australia Federation of Travel Agents Chair Tom Manwaring said, “We welcome Tourism Australia’s call for Australians to take more and longer holidays, and we urge everyone to book their holidays through their local travel agent. Every little bit helps and, as so many Australians have found, travel agents really are essential in managing the challenges and complexity of travelling in these times.”
“But even the most enthusiastic takeup of holidaying at home won’t be enough to offset the lost revenue to travel agents from Australians travelling overseas. Consumers need travel agents now more than ever, and ongoing Government support until international travel resumes are crucial.
“We have already lost approximately 15,000 jobs in our sector as a result of the COVID shutdown. These are highly skilled and experienced individuals whom we simply can’t afford to lose.
“We need more Australians getting vaccinated and being encouraged to get vaccinated. We need greater clarity on the decision triggers for State and Federal Governments on border closures and re-openings.
“Most of all, we need ongoing support for Australia’s travel agents and businesses who are performing such important work in supporting customers and whose skill and expertise will be so heavily relied on as Australians start travelling again given the complexities of COVID-travel.” He said.