The Australian Federation of Travel Agents (AFTA) says the extension of JobKeeper for eligible businesses in the travel sector until 30 June 2021 is critical.
AFTA’s latest submission to the Federal Government highlights:
- The lifeline role of JobKeeper for Australia’s 3,000 travel agencies and 40,000 employees across every regional city and most regional towns;
- An analysis showing that 98% of AFTA/ATAS members applied for and were successful in receiving JobKeeper enabling their business to retain many trained and experienced staff;
- The fact that even as domestic restrictions lift, revenues will remain constrained due to continuing border closures and restrictions, rising unemployment and consumer uncertainty.
Thanks to economic modeling work completed by KPMG and member contributions to AFTA’s Member Sentiment Survey the submission was able to meticulously detail the industry impact and the resounding effects that an abrupt end to JobKeeper would have on the Australian travel ecosystem.
749 members completed the survey and 70% of respondents were owners or managers working for a traditional retail leisure agency.
82% of agents said that they’d experienced a 100% revenue decline as a result of COVID-19 with a further 16% experiencing a 90% decline. Wages make up the greatest proportion of all travel industry costs, comprising over 50% of operating costs of traditional shop front travel agencies. The JobKeeper program has been the lifeline enabling businesses to retain staff.
If JobKeeper doesn’t continue beyond September 42% of respondents said that they intend to either permanently or temporarily close their business. This demonstrate that without on-going Government support further job losses are inevitable.
Despite all the challenges, the survey speaks to the passion and resilience of our travel industry with 31% of travel agency owners and managers still feeling positive about the future of their business.
AFTA has been lobbying Federal, State and Territory Governments since January when the pandemic hit. This focus will continue with AFTA determined to:
- Highlight the economic hit travel agents have taken, the problems agents are facing and the unique situation agents are in;
- Reinforce the critical importance of travel agents to the travel and tourism sector and the specific role these businesses play in the economic recovery process;
- Push for Government’s ongoing support including financial assistance.
AFTA would like to thank members and the broader industry for their support as we tacklesome of the biggest challenges in the history of our industry as a united force.
