AU Tourism Sector to Receive A$ 1.2 Billion Financial Aid

Tourism is among the most affected sectors worldwide during the pandemic. In reaction to this, governments provided financial aid to key industries such as airlines to give them enough elbow room to recover.

Australia recently unveiled its A$1.2 billion ($928 million) support package aimed at improving local travel. Its beneficiaries will include travelers, airlines, and small tour companies. This aid is designed to keep the tourism sector afloat while Australia still barred international travel.

Prime Minister Scott Morison calls the aid a “ticket to recovery” for Australia’s tourism and aviation industries. He said that the package will get “more tourists to our hotels and cafes, taking tours and exploring our backyard”.

Airline Tickets Sold at Half the Price

Airlines lost billions in the last year. For instance, major Australian airlines Qantas Airways and Virgin Australia downsized their operations to adapt to the decreased number of passengers. Both airlines parked their planes and have to let go of thousands of employees. Qantas even outsourced its ground operations to lessen the cost of its operations.

Qantas Airways and Virgin Australia are set to receive A$200 million from April to October to cover for its aircrafts’ maintenance and wages.

The financial aid plans to subsidize airline tickets, as well. 800,000 travelers can enjoy a large discount on their airline tickets. This aims to encourage people to travel locally.

Small employers in the tourism sector can also avail of low-interest loans. Businesses with a turnover of A$250 million or less can apply for a loan up to A$5 million payable for the next 10 years. On the bright side, companies don’t need to make any repayments in the next two years.

Tourism is a major contributor to the Australian economy. It was able to generate A$60.8 billion in GDP in 2018-2019. On top of that, the tourism sector also employs 5% of Australia’s workforce.

Hoping for the Resumption of International Flights

Qantas Chief Executive Alan Joyce is hoping that international flights will return by October. This is around the expected time Australia can complete its COVID19 vaccination program. However, Morrison said that it is still “too early” to confirm when will Australia reopen its border.