THE surprise announcement that the Government will release the remainder of the funds under the $258 million COVID-19 Consumer Travel Support Program (CTSP) will help support a “decimated sector that won’t see revenue return before late 2022,” according to AFTA, ATEC, CATO and CLIA.
A third round of the program, worth $75.5 million, will be made available shortly (TD breaking news Sat), with Federal Tourism Minister Dan Tehan confirming that applications for maximum grants of $90,000, down to a minimum of $7,500, will open on 29 Mar and close on 20 Apr.
“The program will support eligible travel agents and tour arrangement service providers who continue to support consumers to rebook their travel using existing COVID-related travel credits,” Tehan said.
Details are still being finalised, with Round Three guidelines to be made available before the round opens, according to Austrade, the agency which is again administering the scheme.
However it’s understood that the third round will be open to businesses which received a payment in CTSP Round Two or a Round Two Multi-outlet payment.
Grants will be provided based on the eligible turnover and reference period previously calculated under Round Two.
There will also be a new stream for eligible businesses which commenced operations in the calendar year 2019 and achieved a pro-rata business turnover of between $50,000 and $20 million during that year.
AFTA CEO Dean Long welcomed the government decision, saying “securing support for our people and the wider sector has been an intense campaign which AFTA has invested in over every single day of the past two years”.
The Council of Australian Tour Operators also hailed the move, with MD Brett Jardine saying “this will continue to be a challenging 6-12 months ahead for our sector as revenues are not realised until travel takes place, and businesses will be required to honour their commitment to deliver on travel credits…with this funding support, businesses can now start to invest as they rebuild, re-employ and retain staff in the industry, and put in place processes to ensure Australians are able to travel safely and with confidence”.
Peter Shelley, MD of the Australian Tourism Export Council noted while international visitors are now free to come to Australia, it’s likely to be up to a year before inbound tour operators (ITOs) see any meaningful business.
“This additional funding will help our ITOs get over that last hurdle and back into the market…we are pleased the Government has recognised the unique needs of these segments of the tourism industry,” he said.
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Source: traveldaily