Fascinating insights into very different aspects of Sydney – gained as Covid-19 spreads and the city is in lockdown – add perspective to the struggle to earn a living in the face of the coronavirus, while shedding light on various ways of making money.
There are two stories, or maybe three. The city is the same, but the experiences vary widely.
STORY ONE: Sydneysiders learn that the continued functioning of their city relies on the efforts of essential workers, who drive delivery trucks, staff factories and warehouses, clean offices and hospitals and work in production and distribution facilities.
The workers are often poorly paid. They live on the unfashionable side of town and many work shifts. These facts, previously unknown to many Sydney residents, emerge as Covid spreads in the city. It turns out that many essential workers are not vaccinated, partly because vaccine is in short supply and they can’t afford to take time off.
STORY TWO: Champagne corks pop at news of the biggest corporate takeover in Australian history. Afterpay, a “buy now, pay later” deferred-payment purchase system for retail goods and services, dreamed up by two neighbours from the affluent Sydney suburb of Rose Bay, sells for $39 billion. The two founders were already billionaires before the sale. Afterpay was founded just seven years ago, in 2014, the ABC reports. The report adds that the pandemic delivered a boost to e-commerce, which benefitted operations such as Afterpay.
Oddly, society seems to have functioned just as efficiently before Afterpay ever existed – which makes it an optional extra. But without the essential workers mentioned in STORY ONE, the city would grind to a halt.
STORY THREE: This has to do with airlines and travel agents, which most definitely have not been helped by the pandemic. The survival of airlines is essential if people are to continue moving around a large country. Without travel agents, the travel industry would grind to a halt – and in some cases it already has. Travel is essential for economic survival – and also for something to look forward to, a human need. Domestic flights were building up again, but the latest lockdowns and border closures have stamped on that green shoot.
Sydney Harbour Bridge on misty morning. Photo © Peter Needham, Feb 2021
In 2018-19, according to the Australian Federation of Travel Agents (AFTA), Australians spent over $46 billion on international travel. That stupendous figure makes it the largest import sector of the Australian economy – though it’s still only about 10% more than what Afterpay is worth, apparently. Mind-boggling!
It’s worth remembering that 70% of that international travel is booked through travel agents.
AFTA is asking for ongoing and wider Government support until international travel normalises. It says this is critical to protect jobs and businesses so that the travel sector can continue to support consumers. It’s not asking for billions of dollars, just millions.
Before we get lost in millions and billions, it’s worth considering just how much bigger a billion dollars is, compared with a million dollars. Here’s a good way of comparing them: a million seconds is equal to 11 and a half days; a billion seconds is equal to 31 and a half years. A billion is vastly bigger than a million – a thousand times bigger, obviously.
While on the subject of billions: each year, travel agents collect taxes worth $1 billion and contribute $28 billion nationally to Australia’s economy.
Over to AFTA Chair Tom Manwaring:
“Our sector has been in hard lockdown for 18 months now since the international travel ban was imposed with revenue falls of 90% plus across almost all travel agents and businesses from the moment the international travel ban was imposed,” Manwaring says.
“We have already lost a third of our sector and we need support for the remaining 25,000 jobs and 3,000 travel agencies and businesses.
Happier days! Sydney Harbour 2019, Carnival Spirit in port. Photo © Peter Needham
“Australia’s travel agents are a critical support for consumers navigating Covid lockdowns and border shutdowns. Travel agents have successfully secured $8 billion worth of credits and refunds for Covid-impacted travel from suppliers (hotels, airlines, tour operators, cruise lines etc) on behalf of their customers with $2 billion still outstanding.
“As so many consumers have discovered, travel agents are essential given the challenges of Covid. Without a travel agent, you really are on your own.
“We are very grateful for the Federal Government’s Covid-19 Consumer Travel Support Program which has seen $258 million in support for Australian travel and tourism businesses including travel agents.
“But we need the support from Rounds 1 and 2 of the grants program to flow more quickly to those eligible agents and, given the ongoing pause in outbound travel, we need this support extended and supplemented urgently across the entire travel sector. We were the first hit and will be the last to recover with that only possible after international travel resumes.”
Manwaring concludes with a plea that may seem a side-issue – but is actually the most vital element of the lot: “We urge all Australians to get vaccinated as soon as possible.”
Written by Peter Needham
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