In response to this week’s Federal Budget, the Council of Australian Tour Operators (CATO), calls on the Federal Government to provide certainty to the travel supply sector, as international border openings are further delayed, to ensure sustainability of the sector.
CATO members are responsible for over AU$5 Billion in future travel credits currently held with overseas suppliers. Without CATO members these funds could be lost with devastating consequences for Australian travellers and the travel agency community.
Australia’s outbound travel sector forms a critical part of the overall travel and tourism eco-system. The majority of product developed is for overseas holidays but the land-supply sector underpinned 40,000 travel industry jobs in Australia, playing an integral role in the success of aviation into and out of Australia. It is fully complimentary to Australia’s inbound tourism sector and delivers AUD $20 Billion in economic impact.
The lack of government funding will also be an additional impact on employment within the tourism industry, which has decreased significantly since the pandemic began.
“CATO members represent the backbone of Australian outbound travel and their expertise and skills are essential to enable Australians to travel safely when borders eventually reopen. It is crucial that they are supported to ensure their survival, as the border closures are extended,” said CATO Managing Director, Brett Jardine.
CATO is calling for the Federal Government to:
- Develop a clear roadmap for the safe opening of Australia’s international borders.
- Provide certainty for adequate financial support to ensure business survival and retention of critical skilled staff whilst borders remain closed.
- Provide revenue contingent government issued loans for CATO members to ensure business survival. Current loan schemes through banks are not working for travel industry businesses due to government and bank policies.
- Recognise support for larger travel businesses that will lead recovery through employment and marketing spend.
CATO members welcome the stimulus, that has supported existing businesses, plus boosting domestic travel. Approximately 50% of CATO members now offer some domestic product however the volumes are not sufficient to guarantee business survival. For remaining members who have expertise providing safe travel and unique skills in specialist international destinations, a pivot to domestic travel is not an option.
CATO members design, create, market and deliver the travel experiences sold online and through travel agencies that enable Australians to explore the world and return home safely. Members range from small specialist operators focussing specific destinations through to Australian-based global travel success stories.
For more information on CATO go to www.cato.travel
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