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Bali – or an Aussie town brushed by bushfire? Those are among the choices facing Australian holidaymakers, with Prime Minister Scott Morrison confirming Australian tourism faces “its biggest challenge in living memory” and the Federal Government announcing a $76 million tourism recovery package.

The Australian Tourism Export Council (ATEC) said yesterday the inbound industry had experienced “millions of dollars in cancellations from intending international travellers and we are also seeing a significant decrease in forward bookings which we have estimated will reduce inbound tourism revenue by up to $4.5 billion”.

Key points in the government’s recovery package, as outlined by the ABC yesterday:

  • The recovery package includes funding to attract domestic and international visitors.
  • Money has also been allocated for grants for “new attractions” in bushfire-affected regions.
  • The Australian Tourism Industry Council (ATIC) estimates the bushfires have cost the country “hundreds of millions” of dollars.

Cancellations are flowing through fast, with prospective tourists having gained the impression the whole of Australia is on fire.

ATIC has spoken of “the stark anticipated falls in overseas visitors as a result of the devastating fires and the unprecedented negative global coverage they have received”, telling the Australian Financial Review cancellations by international tourists could cost the country at least $4.5 billion by the end of the year.

The Government’s package includes $20 million for marketing to domestic travellers and $25 million for a global tourism campaign to tell international visitors that Australia is “safe and open for business” – plus $10 million towards creating new attractions in bushfire-affected regions of the country.

Tourists have entirely deserted some towns. On the NSW South Coast, Bateman’s Bay tourism businesses have produced a video in a bid to lure back visitors from Canberra, on whom the town’s economy depends.

 

Industry bodies were quick yesterday to welcome the government’s rescue package.

“Today’s announcement of the government’s Rebuilding Australian Tourism package will be welcomed by tourism businesses across Australia,” ATEC managing director Peter Shelley said.

“We applaud the key initiatives nominated to help the inbound tourism sector to recover including an increase in international media and social media influencer engagement along with support for the Australian Tourism exchange which is our largest annual trade show.

“While tourism businesses on the frontline of recent bushfires have an immediate need for support in their recovery, our global reputation as a holiday destination has been significantly impacted and we need to act urgently to reassure visitors that Australia is open for business.”

Australian Hotels Association chief executive Stephen Ferguson said the tourism recovery package would provide critical support for Australia’s pubs and hospitality industry, as it worked to encourage Australians and international visitors to support both affected and non-affected fire regions.

“In the wake of the fires it is essential that we get our hotels and hospitality businesses back on their feet as soon as possible and today’s announcement will help ensure our sector begins recovering immediately,” Ferguson said.

Tourism Accommodation Australia (TAA) strongly endorsed the package, saying the initial investment of $76 million from the National Bushfire Recovery Fund would help alleviate the devastating impact the recent bushfires has had on Australia’s tourism and accommodation industry.

TAA Chair Martin Ferguson said the announcement demonstrated that the Government understood the gravity of the challenge being faced by the industry.

“This is very welcome announcement by the Morrison Government and one that will provide both immediate and long-term support for businesses that are already feeling the impact of cancellations and lost business at one of the busiest times of the year.”

Written by Peter Needham