South Australia’s tourism sector fighting for survival as huge financial blow of coronavirus pandemic is revealed
South Australia’s tourism industry is haemorrhaging almost $430 million a month during the coronavirus pandemic shutdown, according to alarming new data.
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South Australia’s tourism industry is haemorrhaging almost $430 million a month amid the COVID-19 pandemic, alarming new forecasts reveal.
The new figures come as the Federal Government considers another lifeline for the major airlines, crippled by travel restrictions, to shore up domestic flights to Australian capital cities.
Up to 26,000 tourism jobs could be lost across the state over the next six months if the virus cannot be contained and visitation remains extremely limited.
The Stafford Strategy research shows state lockdowns are estimated to have reduced day and overnight domestic visitation by 50-65 per cent in some regions at a cost of $1.2 million a month.
“The industry and its people are in the fight of their life just to survive,” Tourism and Transport Forum chief executive Margy Osmond said, adding the economic blow is unprecedented with $9 billion a month being lost nationally from the sector.
“In SA the loss from international visitation is around $100 million per month and another $330 million from the domestic travel market.
“The industry in SA has never encountered a challenge of this magnitude with the aviation sector pretty much grounded, the cruise industry at a standstill and hotels in crisis with occupancy rates at less than 10 per cent.”
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But Federal Tourism Minister Simon Birmingham said now is the perfect time for South Australians to do “a bit of dreaming” about taking a holiday to the many incredible tourism destinations across the state.
“When travel restrictions are eased, for those who in a position to do so, it will be critical that we not only support destinations like Kangaroo Island and the Adelaide Hills who are still suffering from the impacts of the bushfires, but all our other tourism regions who are all doing it incredibly tough right now,” he said.
“Getting back into our tourism towns when it is safe to do so will be vital to the economic recovery of many businesses and to getting people back to work across the state.”
Tourism contributes more than $8 billion to the state annually and employs almost 40,000 people.
The State Government this month announced tourism operators will get access to grants of up to $10,000 as part of a $5.7 million stimulus package aimed at ensuring the sector is ready to recover when the coronavirus passes.
Nature-based tourism operators will also get rent and fee relief to operate on crown land.
A spokeswoman said the government is monitoring the economic impact of the coronavirus.
“Tourism is a key driver of our economy. The government is working hand-in-hand with the sector to support them through the crisis,” she said.