Is more action required to revive Australia’s tourism and accommodation sector?

Australia’s hotels, motels and accommodation providers welcomed the JobKeeper extension yesterday, accepting it as a favourable first step to rebuilding the industry. However,  they did express the need for additional support as an imperative to keep the tourism sector alive.

The sector is requesting additional support from Federal, State and Territory Governments that must include an extension of banking relief measures and an action on the Rental Mandatory Code of Conduct. 

In Australia, Accommodation contributes $17 billion to the economy and is one of the most crucial industries that can assist Australian tourism to recover. The Accommodation Association represents close to 3,500 hotels, over 150,000 rooms and almost 100,000 employees across Australia.

Dean Long, CEO, Accommodation Association of Australia has welcomed the news of the extension saying, “The policy settings around the realignment of JobKeeper with JobSeeker are right in terms of incentivising people to work while providing the economic lifeline to keep businesses afloat as we learn to live with COVID.”

Long went on to describe the sector as a central pillar of the Australian Tourism industry, directly contributing more than half of the $47.5 Billion Tourism GDP before COVID hit. The sector employed more than 113,000 Australians.

“While we have already done everything we can to limit the impact on our teams, our workforce has already halved. The JobKeeper extension is a welcome first step but our industry will see further job losses and business closures without additional support including the extension of banking relief measures and the Rental and Leasing Mandatory Code of Conduct.” 

Since the beginning of March 2020, the industry had a 75% decrease in income with an expected recovery of only 50% by March 2021.

As we reported yesterday, JobKeeper will move to a two-tiered system as there are some industries that no longer require such a high amount of financial support. Further to this, the Morrison government will cut the wage subsidy to $1200 a fortnight for full-time workers and to $750 for part-time workers, down from the current single rate of $1500.

Even though the scheme will be extended to March 2021, it will be revised down at the end of December to $1000 for full-time workers and $650 for part-time workers who work 20 hours or less per week.

“These measures will support an industry which has been disproportionately impacted by COVID-19 and will ensure our sector can rebound in 2021 and beyond,” said Mr Long.

Irit Jackson, 22^nd July 2020