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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THE EXTENSION of the JobKeeper scheme is the right move for the building and construction industry and will help boost confidence in our industry, the economy and the community, according to Master Builders Australia CEO Denita Wawn.

“Building and construction is the industry with the most businesses registered for JobKeeper and that reflects that 98 percent of the industry is comprised of small businesses and with more small businesses than any other sector of the economy,” Ms Wawn said.

“There’s no doubt that JobKeeper continues to be lifeline for thousands of small builders and tradies as well as many in the building supply chain.The continuing easier accessibility for sole traders  to access the scheme is also important.

“HomeBuilder is proving to be one of the most effective government stimulus measures for at least a decade but many small builders and tradies still face an extremely tough 12 months at least, which is reflected in forecasts of a major contraction in demand,” Ms Wawn said.

“Master Builders recognises the government’s continuing efforts to put together a range of measures to support the viability of businesses and the jobs of the thousands of people they employ. The government’s JobTrainer program will also support these businesses to continue keeping apprentices in jobs which ensure young people have opportunities in the industry as the economy recovers.

“However, while there is no question as to the effectiveness of JobKeeper, and JobTrainer a pipeline of work is essential to the recovery of the industry and the economy. 

"As the government recognises, the massive contraction in demand that we are experiencing is due to the restrictions on economic activity imposed to save lives and therefore more successful stimulus measures such as HomeBuilder will be required to underpin recovery,” Ms Wawn said.

www.masterbuilders.com.au

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THE Australian Federation of Travel Agents (AFTA) welcomed the news that JobKeeper payments will be extended for millions of stood-down workers.

The Federal Government announced that the scheme would continue beyond September for an additional six months at a new rate of $1,200 a fortnight.

AFTA CEO Darren Rudd said the decision was a victory for the travel and tourism industry which lobbied the government vigorously for the six-month extension.

“COVID-19 hit travel and tourism operators earlier than other industries and will continue to impact for longer so ongoing support is vital. Government is listening to us and this is a new win which has been achieved through collaborative and constructive interaction at all levels of government and across the political spectrum,” Mr Rudd said. 

“Keeping the scheme going – albeit at a slightly lower rate and with tighter eligibility tests – provides a lifeline to viable businesses and our members. These are businesses that might otherwise have closed their doors for good, leaving people without jobs and consumers without support at a time when they need it more than ever.

“We know how tough it is for our member agents and the broader community. For economic survival we now need to turn to reopening of all domestic borders when safe to do so as well as establishing travel bubbles to get Australians travelling again while balancing the health risks.”

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THE JobKeeper extension announcement by the Federal Government is welcome news, delivering on an important step towards securing the future for Australia’s export tourism industry.

“The extension of Jobkeeper has been highly anticipated by businesses across the economy and none will be more grateful than Australia’s tourism industry to see its continuation,” ATEC managing director Peter Shelley said.

“This extension will give tourism operators the security of knowing they can plan about retention of staff and management of resources moving forward as they attempt to navigate a difficult period between now and when the international borders re-open.

“Tourism businesses have been hit hard this year not just by COVID, but by bushfires, drought, floods - but they want to get back to business and are waiting eagerly to welcome back their international visitors. Having skilled staff ready and waiting to go will be a critical factor in the speed of their rebuild.”

Mr Shelley said while the new March extension date would be helpful for some tourism businesses, there will be many internationally focused businesses which will require further support and sadly, some who will not survive the distance.

“There are many, many businesses which have invested heavily in building tourism products which appeal to international visitors like reef and rainforest experiences,  unique bridge climbs, natural attractions, indigenous tours, food and wine experiences and eco resorts - and these experiences have helped to deliver huge export income for our economy," Mr Shelley said.

“These businesses need to be preserved, along with our valuable inbound tourism operator distribution businesses, in order to ensure we can reignite export tourism once borders open.

“Our research showed 90 percent of export tourism businesses are currently accessing JobKeeper and 55 percent say they need borders open by the end of the year to be viable, so we needed a solution to support those businesses to hold on until international borders open.

“We therefore welcome the JobKeeper extension news and congratulate the Government on its commitment to supporting the tourism industry. 

“Over the coming weeks and months, we will work with the Government to find solutions we believe will further protect our industry including overheads subsidy support, capital grants, re-boot grants and developing a timeline for the eventual reopening of our international borders.”

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