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Summary

  • Tourism contributed 10% of global GDP in 2019 and was worth ~ $9 trillion, making the sector 3x larger than agriculture, according to a study by McKinsey & Company.
  • The tourism economy was heavily hit this year by the coronavirus pandemic, with the stifling travel and border restrictions.
  • With the staged economic reopening, the tourism industry is focussed on the national long-term strategy – Tourism 2030.
  • Over the medium to longer-term, Australia may leverage from the pent-up demand and be a safe destination for international travellers when the borders open.

Australia is a nation of travellers. Travelling is in every Australian’s DNA.

To the relief of ‘Land Down Under’, the COVID-19 shake-up seems to be fading- though the repercussions have been devasting. Where are the silver linings, and what should the tourism operators do?

Let’s find out in this article!

2020- A Dismal Year for Tourists & Tourism Operators

In early March, the World Health Organization (WHO) confirmed COVID-19 to be a pandemic. What followed was an unprecedented phase for the global economic, business, political and socio-cultural systems: social distancing, travel and mobility prohibitions, community lockdowns, stay-at-home obligations, self- or mandatory-quarantine, restraints on crowding- halted global travel, tourism, and leisure.

A study by McKinsey & Company reveals that international tourist arrivals are projected to plunge by a drastic 60% to 80% in 2020. What’s worrisome is the fact that tourism spending is not likely to return to pre-crisis levels until 2024. But the apprehensions don’t end right here- the unprecedented COVID 19 crisis has put as many as 120 million jobs at risk, suggests the World Tourism Organization.

Australia too witnessed the pandemic unleashing havoc on its tourism industry. For a country that was already reeling from the impact of the summer bushfire tragedy, the coronavirus outbreak turned out to be particularly ill-timed. The broader tourism ecosystem was dealt an additional blow as regional restaurants, cafes, galleries, stores, and pubs, that rely on a steady influx of visitors, suffered.

However, the Australian tourism industry has begun to do what it does best- adapt to change. READ ON!

KNOCK-KNOCK! Silver Linings for Tourists & Tourism Operators Are Here!

The resilient country of Australia has been successful in combating the coronavirus to the extent that the state borders have started to reopen. Interstate travel is now possible in many parts of Australia, and it could not have been better timed- with the peak summer travel period almost here.

Easing of interstate border restrictions provides the opportunity for tourists to explore their own backyard, be it the Great Barrier Reef, the Kangaroo Island, the Red Centre, or the beautiful coastal cliffs that outline the country.

A surge in demand for tourism services is likely with the border restrictions easing every few weeks. Consequently, tourism businesses are honing their 2.0 offering by perfecting their systems, streamlining their business, and identifying their domestic customer base.

Here are the emerging silver linings for domestic travel in Australia-

  • Hamish Blake and Zoe Foster-Blake recently joined Tourism Australia’s latest campaign to inspire travellers to book their next domestic holiday.
  • The latest iteration of Tourism Australia’s Holiday Here This Yearcampaign is here. Tourism Australia has also invested $7 million into this domestic campaign.
  • The first of the Trans-Tasman flight arrived in Sydney from New Zealand in mid-October, a welcome development in the country’s international travel arrivals. It marked a successful opening to the much-anticipated Trans-Tasman bubble.
  • Coral Expeditions resumed operations in mid-October.
  • Universities are planning to initiate pilot projects to bring back the students. Concessions on student and post-study work visa arrangement are being considered.
  • PM Scott Morrison recently hinted that Australia might reopen travel with South Korea, Japan, Singapore, and South Pacific nations as COVID-19 cases reduce.

MUST-READ: Australia Gears up for Tourism 2.0

How Should Tourism Operators Recoup & Rebuild Business?

Tourism businesses have a once-in-a-lifetime chance to optimise their market offering and right-size their business so that they emerge stronger and leaner in Australia’s Tourism 2.0 phase.

Below are a few analyses and questions that every tourism operator should ask themselves and find answers to-

Bottomline

Australia is a resilient nation and has weathered previous tourism storms. Besides, the nation is well-regarded among international tourists and students. With the silver linings only getting brighter, there seems to be a good chance that travel restrictions may get a hold of further ease in the months to come.

Tourism operators who hit the ground running will be in an enviable position once the demand for travel picks up pace. Besides, the introduction of the much-anticipated COVID-19 vaccine will mark another step-change towards an improved sector.

 

 Source: Kalkine Media