Peak industry body the Australian Federation of Travel Agents welcomes the ongoing business support measures outlined in tonight’s Federal Budget and looks forward to continuing to work with Government towards the survival of the sector while planning for sector-specific support in the very near futureFrom the introduction of the international travel ban on 18 March 2020, travel agents have experienced at least a 90% fall in revenue and zero income and without tailored government support, many of these businesses will be forced to close.
AFTA welcomes the Government’s decision to enact loss carry-back provisions to allow current year losses to be carried back. This was a key recommendation in the AFTA pre-Budget submission. We also support the increased investment in mental health including suicide prevention, critical for so many sectors in these incredibly difficult times.
The Facts:
- Travel Agents have been essentially unable to trade due to the Government-instigated border closures.
- Australia’s 4000 travel agents and the 40,000 Australians we employ contribute $288 Billion each year to the economy.
- 70% of international travel in Australia (trade, art and cultural, entertainment, holidays, visiting friends and relatives) is booked through travel agents. This is what drives travel agents’ businesses.
- International Travel was a growth sector prior to CV-19 with year on year growth of 11%. In 2018-19, Australians spent over $46B on international travel making it the largest import sector of the Australian economy.
- Travel agents have successfully secured $6B on behalf of their customers from airlines, hotels and tour operators in refunds and credits on CV-impacted travel, with $4B still to be recovered. This is work that takes days and weeks which they are doing for free.
- Travel agents were the first hit and will be the last to recover, with recovery only possible once international travel resumes and normalises. Until this happens, the sector is asking for the first time for Government support in the form of a $125M Federal support package plus State and Territory Government support which AFTA will continue to lobby on.
Quotes from AFTA CEO Darren Rudd (who is available for interview)
“The Federal Budget contains a number of new and innovative measures for small businesses that should provide much needed initial relief to travel agents, travel wholesalers and tour operators, businesses which will only be able to recover after international travel is again possible. We are currently examining the details of the wider Budget and its impact upon the industry and continue to work with the Government closely on developing a sector-specific package.”
“Travel agents, tour operators and travel wholesalers right across the country have been meeting with their local Federal Parliamentarians, explaining the brutal reality of being on the pandemic frontline, helping Australian consumers get home and get their money back while being among the worst hit of Australian businesses with a complete fall in revenue, and income and recovery impossible without the resumption of international travel.”
“We know our united voices are being heard. We are working with Federal Government on sector-specific support.”
“This is the first battle in the ongoing war to restore the Travel Sector to its former, health, growth and prosperity and I have no doubt that we are united in our purpose of surviving. Every moment that passes without sector specific support makes it likelier that more businesses will shut their doors and never reopen – meaning those jobs are gone for good.”
“We will continue to do whatever it takes to persuade our political leaders of the pressing need to help the sector.”
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