The Australian Tourism Export Council (ATEC) has said that the country’s tourism industry is “at risk” without a replacement for the JobKeeper scheme.
The JobKeeper scheme is currently providing funds to businesses the government deems to be “significantly affected” by Covid-19. It was recently extended to 28 March 2021, but no plans to extend it beyond that have been announced.
ATEC Managing Director Peter Shelley said: ““Inbound tour operators (ITOs) have been the backbone of the export tourism industry, providing the conduit for millions of visitors coming to Australia each year.
“With the end of JobKeeper, international borders closed and no further support, 81% of ITO businesses will close and that will destroy Australia’s ability to quickly get back in the game once borders reopen.”
Shelley went on to comment on the knock-on effect these tourism businesses have for the country’s economy: “Thousands of Australian businesses rely on the economic activity delivered by international visitors and around half of those visitors have been delivered though international retail travel agents serviced by Australian based ITOs – we simply can’t afford to lose their expertise, connections and experience.”
“Australia has traditionally had around 200 ITO businesses of varying sizes which support tourism businesses to connect with around 50 international markets. Without them we are likely to see the decimation of the Australian inbound travel distribution ecosystem.”
Shelley added that the uptick in domestic tourism will not be enough to make up for the losses of international tourism: “The recovery of inbound tourism will be driven by international travellers booking with retail travel agents who will provide security around booking flexibility and deposits, manage changes to travel arrangements if required and above all, provide guidance on Covid safe travel.”
“While we are heartened to see Australians travelling domestically, domestic tourism spend will never replace the billions of dollars in export revenue delivered by international visitors ,so it would be short sighted to rely on this current domestic enthusiasm to underpin the long term viability of our industry.
