TAA VOICE
In six months, we have suffered more than almost any other sector We have weathered the financial brunt of state and international border closures and constantly shifting trade and visitor restrictions. We are scraping through the back half of the year, operating 50 to 60 percent down on this time last year, with many hotels reliant on JobKeeper to keep people employed. It is too early to say that we are on the way back. And it is too early to say that the suffering is over. Many believe that it will be mid-2024 before our industry returns to anything like preCOVID-19 occupancies, revenues, and profitability. But I can at least say that some of the momentum is shifting – particularly during this school holiday period. Cases are reducing in Victoria and restrictions are easing; we have just had several days with zero new cases in NSW. We are seeing good visitor numbers in the parts of regional Australia within driving distance of major centres. In NSW, for example, we have seen some positive signs in recent weeks in places like the Hunter Valley, Orange, the Blue Mountains and both the NSW North and South Coasts.
AA VOICE
In recent weeks, we have also
their hustle and bustle which continues to be detrimental to their visitor economies. And, with no sign of international travel resuming anytime soon, they need all the help they can get.
Michael Johnson CEO, Tourism Accommodation Australia
seen several Federal Government announcements that funding will go towards some of the hardest hit areas in more remote regions. The Federal Government plans to inject $250 million into regional Australia. The package includes a $50 million Regional Tourism Recovery initiative to assist businesses in regions heavily reliant on international tourism and $200 million for an additional round of the Building Better Regions fund. This funding is great news for our long-distance destinations, and iconic places like Uluru in the Northern Territory and Cairns in far north Queensland. These places rely almost completely on international tourists and continue to suffer badly. These centres are operating well below capacity, they have lost
The $50 million grant will help get Australians into these harder to access regions. It will allow an increase in spending on tours and accommodation where revenue and support of industry jobs is needed. The $200 million for tourismrelated infrastructure will also be critical in creating jobs and driving visitor economies, not just in the recovery period but well into the future. The other key piece of the puzzle in all this is aviation. Once state borders re-open, we need domestic travellers to fill empty rooms. And, in a country like ours, we need flights to get them there. But there is encouraging news on that front too. This week, the Federal Government announced that the Domestic Aviation Network Support Program will be extended until January 2021 and the Regional Airline Network Support Program extended until March 2021. This is a crucial step. We need airlines to make flights available, even if the loadings are not profitable to begin with.
Finding brightness in a downturn You would think it would be difficult to find brightness during a downturn unseen since the Great Depression. But eight months after the international travel ban was imposed, there are a number of positives. Here at the Accommodation Association, our brief is a very
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AccomNews - Spring 2020
simple one that we live each and every day. How is everything we do delivering for you, our members? This guides all of our decisions and, even in challenging times such as these, we are proud of the impact we are having on your behalf. I am proud to report that our advocacy continues to deliver. By joining with our industry colleagues, we have directly benefitted your businesses
Consumers may be cautious to fly at first. Pandemic habits are hard to break and it will take time. But this support from the Federal Government will assist airlines as they transition back to profitability. Once the travellers get mobile into destinations, we can get accommodation, tourist attractions and hospitality venues moving on the road to recovery. Things are moving inside Tourism Accommodation Australia as well. As this goes to print, staff are beginning the move into the new NSW headquarters of TAA, in the heart of the Sydney CBD. Our staff have been working remotely during the pandemic and we used the time to get the COVID-delayed refurbishment work underway. It is a rare piece of good news in what has been a devastating year for the industry. TAA worked with architects and construction company MPA to totally re-design and re-furbish the top floor of the heritage listed Culwulla Chambers in Castlereagh street. We previously shared offices with the Australian Hotels Association, in Macquarie Street. The offices will give TAA a new identity in the heart of Sydney and will be a place where we can advocate on behalf of our members at a time when they need the most support.
We continue to work closely at a leadership, policy, and communications level to maximise our impact through and across our membership into government, via media. I am extremely proud to lead your team here at the Association and I am proud of the team’s stellar response in rising to these incredible challenges. Dean Long CEO, Accommodation Association
including through the establishment and extension of key support measures including JobKeeper, the Mandatory Code of Leasing and Cashflow Boost 1 and 2.
INDUSTRY
These times have also underscored value in having a single and united voice for our sector. I can assure you that the process currently underway is dedicated to finding an outcome that will strengthen the benefits to you and allow us to continue to amplify the member value we deliver for you. www.accomnews.com.au
