MORE than 40% of Australian travel agencies could cease trading once the Government’s JobKeeper scheme shuts down.
The grim warning is part of a formal AFTA submission to Federal Treasury, arguing for an extension to the scheme for eligible businesses in the travel sector until Jun 2021.
The figures are the outcome of an AFTA Travel Agent Member Survey (TD yesterday), in which over 80% of respondents said their revenue had declined 100% as a result of the pandemic.
A further 16% said their turnover had dropped 90%, and almost everyone polled said they had successfully enrolled in the JobKeeper scheme and were receiving payments enabling them to keep staff in work.
However when respondents were asked what they intended to do when JobKeeper ceases as planned at the end of Sep 2020, 42% said they intended to either permanently or temporarily close their business.
AFTA’s submission notes optimism around the reopening of intrastate and interstate travel, but also highlights the ongoing international situation of widespread border closures and longer term uncertainty about any return to normality.
Low consumer confidence and rising unemployment due to COVID-19 were also cited as key factors impacting the travel industry’s future.
“Thanks to economic modelling work completed by KPMG and member contributions…the submission was able to meticulously detail the industry impact and the resounding effects that an abrupt end to JobKepper would have on the Australian travel ecosystem,” AFTA said.
The Federation thanked members and the broader industry for their support “as we tackle some of the biggest challenges in the history of our industry as a united force”.
The Australia Tourism Industry Council (ATIC) has also called for a targeted extension of JobKeeper, citing the slow recovery in tourism activity.
ATIC MD Simon Westaway urged an extension until 31 Mar 2021, as long as borders with major markets are open by then.
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Source: traveldaily