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VTIC fear loss of jobs in Victoria tourism and events without further support

VTIC fear loss of jobs in Victoria tourism and events without further support
February 17, 2021

One third of Victoria’s tourism and events sector will slash jobs and 13% will close permanently if there is not ongoing support for the industry beyond the end of the Federal Government’s JobKeeper.

The forecast has been made by the Victoria Tourism Industry Council (VTIC), with its latest survey of more than 550 tourism operators showing just over half the state’s businesses were trading as normal before the third lockdown, with 42% still closed or operating with reduced hours.

VTIC’s State of the Industry survey showed that 88% of businesses had accessed some form of government support since Coronavirus restrictions were introduced almost 12 months ago.

The survey found that nine in 10 businesses had accessed JobKeeper (93%), while more than 57% were still reliant on the financial support to hold onto staff.

The Victorian Government’s Business Support Fund was also helping 45% of tourism businesses, while one in five businesses had accessed government hospitality grants. More than 20 per cent of tourism businesses received payroll tax relief.

More than 80% of the businesses said the uncertainty around border closures were devastating to their business while around 60% said events being cancelled across the state had also severely impacted their tourism businesses.

Commenting on the findings, VTIC Chief Executive, Felicia Mariani told Melbourne newspaper the Herald Sun, “what is more concerning is that, over the next three months, nearly half of our operators are expecting business activity to weaken further.

“Overall business confidence is poor, with most respondents saying they are fairly or extremely concerned about the outlook for their operations.

“All of this points to the absolute need for a targeted package of support for the tourism and events industry, which will be vital to saving our sector and the 250,000 jobs we underpin in the state – including 110,000 jobs in our regional towns and centres.”

Mariani said the end of JobKeeper on 28th March would be “a flashpoint for our sector”, adding “it is critical that governments engage with industry right now to shape packages that will sustain the industry.”

Image credit Gumbaya World.

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1st February 2021 - Without JobKeeper Australian tourism businesses face ‘annihilation’

14th January 2021 - TCWA says one in five Western Australian tourism businesses at risk if JobKeeper ends

13th January 2021 - South Australian tourism sector seeks extension of JobKeeper beyond March 2021

15th December 2020 - Tennis Australia reveals receipt of $4.5 million in JobKeeper support during Coronavirus pandemic

4th December 2020 - Mary Valley Rattler attraction able to maintain operation with JobKeeper support

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

7th August 2020 - Federal Government adds $15 billion to JobKeeper scheme to aid Victorian businesses

22nd July 2020 - Live Entertainment Industry Forum applauds Australian Government’s JobKeeper extension

21st July 2020 - Industry welcomes Federal Government’s announcement of JobKeeper extension

18th July 2020 - Thousands back ATIC petition for retention of JobKeeper allowance

19th June 2020 - Tourism and Transport Forum calls for extension of JobKeeper for another six months

13th May 2020 - VTIC highlights need for coordinated response to COVID-19 recovery

27th April 2020 - VTIC welcomes new emergency funding for tourism industry        

30th March 2020 - VTIC calls for immediate hibernation and wage subsidy packages

9th November 2020 - New Victorian tourism campaign encourages exploration of local destinations

23rd October 2020 - Victorian tourism industry unites in aim to drive reopening of visitor economy

20th February 2020 - New marketing campaign aims to boost Victorian tourism

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