Tourism industry will go to the wall without JobKeeper, VTIC warns

THE tourism industry has taken the biggest hit from the knock-on effects of the coronavirus pandemic, according to new figures, and the Victoria Tourism Industry Council (VTIC) says the figures prove that extending JobKeeper will be the only thing to stop many businesses from “going to the wall”.
Australian Bureau of Statistics figures released on July 14 for jobs in accommodation and food services from mid-March to June 27 show a decrease of 21 per cent over the period (nearly four times that of the all industries average of -5.7 per cent) and a nearly 18 per cent reduction in total wages. Arts and recreation saw a 18 per cent decline in paid jobs in the sector over the same period.
Last week, VTIC chief executive officer Felicia Mariani said the figures were “a sad reflection of what our industry has known for months”.
“While every business has suffered under the weight of the national shutdowns that were required in flattening the curve back in March, no industry has been hit as hard, and for such an extended period of time, as the sectors that make up our tourism economy.
“This is why we are collectively calling on the federal government to extend the JobKeeper fund for an industry that’s simply not had the chance to recover to the levels of other industries as restrictions have eased.”
Ms Mariani said industry surveys VTIC conducted during the first shutdown found 66 per cent of Victorian operators had to close their businesses completely, and only 25 per cent were able to find some way to partially maintain operating.
“Every tourism business across Victoria has pointed to JobKeeper as the primary lifeline that’s enabled them to keep their businesses afloat.
“With the latest round of restrictions placing unbearable stress on Victorian tourism operators, the extension of JobKeeper will be the difference between businesses going to the wall and potentially surviving from now to the end of this nightmare year.”
She said VTIC was encouraged by comments from the Coalition Government about continuing to support businesses and geographic regions that were still struggling, and looked forward to further announcements scheduled to be made today (Thursday, July 23).