Clarity on government support called for by export tourism businesses

May 10, 2021

Finance / Government / Hospitality / Tourism /

With the Australian Government suggesting international borders will not open until 2022, the Australian Tourism Export Council highlights it is critical for internationally focused tourism businesses across Australia to receive clarity on continued Government support in order to give them certainty in planning for their future recovery.

ATEC Managing Director Peter Shelley notes “the Government is indicating our international borders will be closed to visitors until at least the end of the year and while many tourism businesses are surviving with domestic visitation, there is a group of uniquely exposed businesses who receive little or no benefit from the current domestic travel stimulus programs.

“While we welcome these stimulus initiatives which are helping drive domestic travel, there are many tourism products which domestic travellers are simply not booking, like day tours and attractions. Plus we have the inbound tour operator cohort who are unable to pivot their business model to benefit from domestic travel support programs.

“While these businesses have welcomed the support packages offered by the Government so far, they are crying out to know if this support will continue until international borders reopen.

“Without this certainty, they have no confidence to invest in their future or begin planning for our industry’s restart, let alone continuing to hold on to the rubble of their businesses.

Shelley advised that Inbound Tour Operators (ITO) were particularly exposed and will have no revenue until the borders reopen. These businesses are crucial to the export tourism supply chain given they connect Australian tourism products to our lucrative international markets.

“ITOs are the businesses which sell Australian tourism product across the world. They continue to manage strong forward booking enquires for future international visitors despite not having any revenue.

“They are not asking for much, just the clarity of knowing if they will receive ongoing support to sustain operations until borders open. This knowledge will mean they can make the hard decisions about their ability to survive or if they should simply wind up their operations.

“This small cohort of ITO businesses influence, convert and manage unique Australian itineraries which are featured on the websites and in travel brochures of thousands of Aussie Specialist travel agencies around the world.

“We view this cohort of ITOs as critical strategic assets for Australia’s inbound tourism industry and without certainty in the form of ongoing Government support, we will see more of these businesses close their doors, significantly eroding Australia’s competitiveness as a global tourism destination.

“ATEC is anxiously awaiting the details of the federal budget which will be a clear indicator of the Government’s understanding of tourism’s plight.”

Image: Courtesy Tourism WA Molly Springs.

27th April 2021 - ATEC tours state and regional branches to discuss restart strategy

8th March 2021 - ATEC highlights the impact of declining inbound tourism on regional communities

21st December 2020 - ATEC welcomes Dan Tehan as Australia’s new Federal Tourism Minister

24th November 2020 - ATEC to provide COVID Ready training for New Zealand based tourism businesses

18th November 2020 - ATEC to deliver its annual Meeting Place program as a hybrid event in 2020

10th November 2020 - ATEC highlights that tourism exporters need JobKeeper support until international borders reopen

19th October 2020 - ATEC expands its program supporting Australian tourism exporters to attract domestic visitors

7th October 2020 - ATEC welcomes Federal Budget support for tourism industry

27th September 2020 - ATEC concerned over lack of government funding to support inbound tour operators

21st September 2020 - ATEC aligns with WTTC Safe Travel protocols

23rd June 2020 - ATEC warns domestic travel not a simple fix for Australia’s tourism industry

13th May 2020 - ATEC highlights the harsh reality of a tourism industry in crisis

30th April 2020 - ATEC part of new Tourism Restart Taskforce to strengthen industry COVID-19 response

22nd April 2020 - ATEC considers diverse and competitive airlines to be critical to Australian tourism

6th March 2020 - ATEC highlights the ongoing threat of Coronavirus to export tourism industry

2nd March 2020 - ATEC remembers tourism innovator James Kwan

17th January 2020 - ATEC emphasises the need for positive messages to international tourists

28th November 2019 - ATEC recognises outstanding industry achievements for 2019

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