The Australian Federation of Travel Agents (AFTA) is pleading with the government to extend JobKeeper for eligible businesses in the travel sector until 30 June 2021 – after a survey revealed that 82% of agents had “experienced a 100% revenue decline” as a result of Covid-19.
AFTA’s latest submission to the Federal Government highlights the crucial, lifeline role of JobKeeper for Australia’s 3000 travel agencies and 40,000 employees across every regional city and most regional towns.
The submission includes:
- 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 modelling work completed by KPMG and member contributions to AFTA’s 
Member Sentiment Survey, the submission was able to meticulously detail the industry impact and resounding effects that an abrupt end to JobKeeper would have on the Australian travel industry.
749 members completed the Member Sentiment Survey, of whom 70% 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, an AFTA statement said. Wages make up the greatest proportion of all travel industry costs, comprising over 50% of operating costs of traditional shopfront travel agencies. The JobKeeper program has been a 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,” AFTA said in a statement issued yesterday.
“This demonstrated that without ongoing Government support, further job losses are inevitable.”
Despite all the challenges, the survey speaks to the passion and resilience of the travel industry, with 31% of travel agency owners and managers still feeling positive about the future of their businesses.
AFTA has been lobbying federal, state and territory governments since January, after 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 said yesterday it would like to thank members and the broader industry for their support as it tackles, as a united force, some of the biggest challenges in the history of the industry.
Edited by Peter Needham
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