Hotels could fold if the country’s borders remain closed
Chief executive of Accor Pacific, Simon McGrath has warned that city and regional hotels may be forced to close if circumstances don’t change soon.
According to McGrath, hotel occupancies have dropped to 5 per cent at some of the properties under his management. To arrest the fall, he is calling on the Morrison government to step in and set a nationwide reopening date.
“Across the industry plans are rapidly accelerating today to hibernate and close hotels due to the lack of government support,” said Mr McGrath.
“The bickering between state and federal governments on border openings impacts the tourism industry greater than any other industry. We are calling on the federal government to resolve these differences, and to set an opening date to bring an end to the current uncertainty.
“Having the courage to commit to a date will give people confidence and unite our country behind a common goal.”
McGrath says tourism is in a worse state this year than it was last year and has called on Canberra to reinstate support packages such as JobKeeper urgently.
“When JobKeeper was first launched in April 2020, the federal government committed to helping our workforce and said: ‘We will give millions of eligible businesses and their workers a lifeline to not only get through this crisis but bounce back together on the other side’.
Mr McGrath also said that more aid was needed for hotel owners and investors, particularly those in the medium to large hotel space. He pointed to a lack of financial support for those with domestic and international hotel portfolios, despite their investment in the country over the past 20 to 30 years.
“I would also urge the government to meet and listen to major investors in industry to keep jobs in Australia. By failing to listen they are crippling the tourism industry.”
Irit Jackson, 24th August 2021
