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Trans-Tasman bubble benefit still a way off for Tourism

April 7, 2021 Business News No Comments Email Email

Peak industry body, the Accommodation Association says while the opening of the trans-Tasman bubble is a very welcome step in the right direction, the reality is that there will be very little real benefit for Australia’s Tourism sector in the short term.Tailored support is still desperately needed for Sydney and Melbourne CBD properties which rely so heavily on international and corporate markets despite the opening of the two way corridor from April 19.

The Association wans that the initial wave of travellers to take up the travel corridor will be visiting family and friends and unlikely to drive any significant benefit to Australia’s tourism sector including hotels and motels.

Key stats:

  • The Accommodation Association represents close to 3,500 hotels, over 150,000 rooms and employed nearly 100,000 people across Australia (this is unfortunately now down to 58,000).
  • Prior to the closure of the international and state borders, the accommodation industry contributed $17 billion to the Australian economy.
  • 80% of revenue for Sydney CBD properties comes from international and corporate markets.
  • Sydney is currently the worst performing city market in Australia with revenue declines of 67% and forward booking rates of less than 10% for the next 90 days. Melbourne, Australia’s other international hub, is similarly decimated.
  • Initial take-up of the trans-Tasman corridor will be for visiting family and friends i.e. great news for airlines but not significant for tourism sector including accommodation.

Quotes from Accommodation Association CEO Dean Long (available for interview)
“The opening of the trans-Tasman corridor is a very welcome step in the right direction but the reality is while it’s good news for the travel sector, given most travellers will be catching up with friends and families there’s very little immediate benefit for our tourism sector or our hotels and motels.”

“With the end of JobKeeper and given the massive holes in the market especially in Australia’s international hubs of Sydney and Melbourne, the flow on benefits for our hotels and motels, and the many small businesses who supply them is negligible.”

“There’s no doubt it will be a big kick along for consumer confidence but it doesn’t erase the need for tailored support for our accommodation sector. The reality is it’s great news for our travel sector but not so good for tourism.”

“New Zealand will have a net positive gain with an open border with Australia. Australians represent over 50% of all visitors to NZ and we spend nearly $1700 per trip with the majority on their ski fields. Total spend prior to COVID was $2.5 Bn AUD with 1.5m Aussies visiting as at YE December 2019. Kiwis spend around $1800 per trip with 1.2 million visitors to Australia, with total spend of $2.1 Bn.”

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