Accommodation Australia has called on the government to produce a dedicated support package for the hotel industry to future proof businesses against the lingering effects of COVID-19.

The sector has been severely impacted by COVID-19 with revenue down a massive 85 per cent ($3.6Bn) in just 3 months.

New data from the Accommodation Association of Australia indicates that even when restrictions on travel and gathering ease, there will be a significant time lag in recovery of at least 6-12 months.

AAoA government submission - At a glance:

• A continuation of JobKeeper for Australia’s accommodation businesses through to March 2021
• JobKeeper to be extended to casuals and permanent residents who have continued to be engaged by the accommodation provider and employed for over 12 months as of 1 October 2020.
• The transition of the $1500 fortnightly JobKeeper payment to a cap from the current minimum payment to encourage workforce participation.
• Continuation of the existing Hospitality Industry (General) Award exemptions for the life of JobKeeper to ensure employment outcomes can be maximised.

According to the industry body, an an extra 23,000 Australians currently employed in the accommodation sector will lose their jobs if the JobKeeper wage subsidy is not extended past September.

AAoA CEO Dean Long told WILLIAMS MEDIA both state and federal levels of government needed to give the industry every chance of a speedy recovery.

"The reality is the governments that have closed the borders have a responsibility to support the industry they closed down," he said.

"These are businesses that were in a very strong position going into this and were closed down overnight.

"We don't want to see nearly 30,000 people out of the job because the borders were kept closed longer than they needed to be, or there is not enough industry-specific support."

As part of its latest submission, the AAoA calls for a continuation of JobKeeper for Australia’s accommodation businesses through to March 2021, and for the payment to be extended to casuals and permanent residents who have continued to be engaged by the accommodation provider and employed for over 12 months as of 1 October 2020.

The group is also lobbying for the transition of the $1500 fortnightly JobKeeper payment to a cap from the current minimum payment to encourage workforce participation , as well as a continuation of the existing Hospitality Industry (General) Award exemptions for the life of JobKeeper to ensure employment outcomes can be maximised.

Mr Long said forecasts showed, at best, demand for the sector would be down at least 50 per cent lower than the pre-COVID volumes until at least March 2021.

"More than 88,000 people are employed full-time in Australian hotels, motels and caravan parks, across metropolitan, regional and rural Australia," he said.

"This will hit those communities most reliant on tourism the hardest but it will be felt right across every Australian town, city and region." 

Click here for more information about the Accommodation Association.

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