The Tourism Council of Western Australia has reported that the state's tourism industry has lost $3.1 billion and more than 30,000 jobs as six months’ worth of bookings were cancelled, and refunds paid to customers, following regional WA travel restrictions.
Western Australia's tourism industry may never return to normal, even after the state's travel restriction are eased, The Tourism Council of WA has warned.
WA Premier Mark McGowan announced on Monday there would be a "cautious relaxation" of some measures relating to small public gathering and home inspections, but gave no indication on when other regulations would be assessed.
Much of the uncertainty surrounding the road ahead has been felt by the tourism industry, with people encouraged to cancel travel plans.
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Tourism Council WA CEO Evan Hall said the sector would not just be able to pick up where it left off before the pandemic hit.
“For the tourism industry, it’s not simply a case of removing restrictions and customers returning immediately – there will be a lag time before bookings and revenue return,” he said.
“For regional seasonal businesses, this means they face up to 18 months without customers and income as they had just concluded their off-season when travel restrictions came into place.”
"Tourism operators have not just lost three weeks of trade since regional travel restrictions were implemented, they immediately lost six months’ worth of bookings as people were encouraged to cancel their holiday plans."
Tourism Council WA CEO Evan Hall. Source: WA Tourism Council
A survey of WA tourism businesses conducted by the council last week revealed more than 70 per cent of operators have insufficient cash to pay employees or owner-operators and service costs essential to survive a period of hibernation.
Mr Hall said the travel restrictions had already resulted in thousands of jobs being shed across the industry.
“It is estimated the impact of travel restrictions so far has been 30,500 jobs lost and $3.1 billion less for the WA economy,” he said.
“Our survey reveals around half of tourism businesses cannot access the JobKeeper wage subsidy, either due to the seasonal nature of their business or not having enough cash to pay employees in advance of receiving the subsidy,” Mr Hall said.
“More than sixty per cent of businesses have shut down and the remainder have dramatically reduced operations.
"Without immediate cash flow to sustain them, some of them may never reopen for the eventual recovery.”
Click here for more information on the WA Tourism Council.
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