(No Like Yet)
Published on : Thursday, January 28, 2021
Two Coalition MPs are urging the Australian tourism industry to receive further bailouts after jobkeeper finishes in March since domestic holidaymakers can’t fill the void created by international revenue loss.
The declaration by Warren Entsch and Llew O’Brien is supported by the infrastructure department in its submission to a parliamentary inquiry regarding the future of aviation, which warned that domestic trips “tend to be shorter, lower yield and involve fewer activities”.
The submission also said that the industry might suffer from fewer business trips and “a hesitation among holidaymakers and visiting friends and relatives to fly”.
The Morrison government has sent mixed signals regarding bailing out of the tourism industry when jobkeeper wage subsidies expire in March.
After a decline in unemployment in the December quarter, Scott Morrison said that businesses should only count on existing supports. The new tourism minister, Dan Tehan, confirmed that the government was considering targeted support due to international travel likely remaining restricted for the rest of this year.
Even though domestic tourism is expected to recover, “until a vaccine is widely available there remains the continued risk of Covid-19 outbreaks and recurring travel restrictions”, the tourism department said.
The department said that 84% of domestic flights in 2019 were for overnight trips, half of which meant for business.
Aviation demand is also held back by lower incomes and fears of Covid-19 transmission. Aviation could be improved by lower prices due to cheaper oil, pent-up demand for visits to family and friends, and switch towards domestic tourism.
Tags: Australian Tourism