Accommodation providers say JobKeeper extension a welcome first step

AUSTRALIA's hotels, motels and accommodation providers have applauded the extension of JobKeeper but say additional support is critical to keep the tourism sector alive.

They say additional support from Federal, State and Territory Governments must include the extension of banking relief measures and action on the Rental Mandatory Code of Conduct.

Accommodation Australia CEO Dean Long said, “The extension of JobKeeper through to March 2021 is what our sector has been asking for and is very welcome news. 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.
 
“Our sector is a central pillar of the Australian Tourism industry and was exceptionally strong before COVID-19. As an industry, prior to COVID-19 we directly contributed more than half of the $47.5 Billion Tourism GDP and directly 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, our income has decreased by more than 75 percent," Mr Long said. "Even if the flattening-the-curve strategy is successful and we have open borders, our expected recovery in March 2021 will only be 50 percent of pre COVID-19 income. Now more than ever we need our Federal, State and Territory Governments to work closely together.
 
“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.”

 Peak industry body, the Accommodation Association represents close to 3,500 hotels, over 150,000 rooms and nearly 100,000 employees across Australia. Accommodation contributes $17 billion to the Australian economy and is essential to the Australian tourism sector’s recovery, Mr Long said.

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