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ATEC highlights that tourism exporters need JobKeeper support until international borders reopen

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

The Australian Tourism Export Council (ATEC) is calling on the Federal Government to provide clarity for Australian Inbound tour operators (ITOs) and to assure these businesses that the JobKeeper lifeline will still be available post March 2021, helping them retain valuable skilled staff while they have no revenue.

ITOs, the businesses which sell Australian tourism product across the world, have had no income since March when international borders closed due to COVID-19 and they are unlikely to see any bookings until these borders reopen. ITOs continue to hold forward bookings for future international visitors and have lost millions of dollars in unpaid invoices following the sudden closure of borders.

ATEC Managing Director Peter Shelley notes “these ITOs represent a small number of tourism businesses but deliver a huge amount of business with more than 65% of Australian tourism businesses relying on an ITO for some percentage of their international bookings.

“Importantly, 75% of international visitor spending in regional Australia is facilitated by an ITO and they will be a vital part of the rebuilding of our international tourism success post COVID.”

Shelley said Australia had lost around a third of its ITO business in 2020 and a recent ATEC survey of this group showed JobKeeper was critical to the future survival of the remaining businesses.

“These businesses have identified JobKeeper as being the most important support measure for their survival with overhead subsidies and cash flow grants being other valuable supports which would help secure their future.

“On behalf of these businesses, and the future of inbound tourism, we are imploring the Government to make clear to the industry what support they can expect until international borders reopen.

Shelley adds “this is a small number of crucial businesses which will play a huge role in getting Australia back to market and bringing our future visitors here.  We know their value in the export tourism chain and the vast amount of business they facilitate, we just need to get them through until international travel is once again possible.

“Pre-COVID, our inbound tourism sector was a thriving part of the economy generating $45 billion in visitor spending and supporting thousands of jobs across the country. The industry had, and continues to have a huge future and we can’t afford to lose our connection to this opportunity.

“Hundreds of thousands of tourism businesses across Australia, from hotels to tourism attractions and the businesses that support them, rely on ITOs to supply thousands of international customers. They also directly and indirectly employ one in 13 Australians with many of those jobs in regional Australia.

“The risk in the Government not supporting these businesses to remain solvent until the international borders reopen would be a disaster for the Australian tourism industry. Supporting Australian ITO businesses is supporting the future of Australian tourism.”

Image of Nitmuluk National Park. Credit James Fisher and Tourism NT.

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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

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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

4th October 2019 - ATEC launches program for WA tourism operators hosting Japanese visitors

19th November 2018 - Tourism leaders gather in Darwin for ATEC’s Meeting Place

28th July 2018 - ATEC sees continued need to keep getting inbound tourism right

10th May 2018 - ATEC welcomes budget boost for regional tourism

26th November 2017 - Tourism Export Industry Awards announced at ATEC’s annual Gala Dinner

6th April 2016 - ATEC launches new program to boost inbound tourism

29th September 2015 - ATEC Expo returns to the Sydney Showground in 2016

18th June 2015 - ATEC welcomes free trade agreement’s 10 year China visa

28th October 2014 - New ATEC Chair to drive $30 billion tourism export industry

21st December 2012 - ATEC welcomes NSW Government support for tourism

17th June 2012 - Tourism businesses to benefit from ATEC China program

7th July 2011 - ATEC welcomes extra support for indigenous tourism

21st May 2011 - ATEC praises ‘remarkable’ WA Tourism Budget

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