Coronavirus travel ban extended for another week – prompting calls to fast-track projects to keep economy afloat
Thousands of Chinese students and tourists will be blocked from Australia until the end of the month. Already seeing many sectors struggle with the loss, the State Government wants tax cuts and new projects brought forward.
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Treasurer Rob Lucas is bracing for a “big hit” to South Australia’s economy, as the travel ban on mainland China is extended for another week.
The extension sparked calls for the State Government to fast-track infrastructure projects and fund campaigns to help ease the economic impact of the coronavirus, as more than 150 Australians were evacuated from an infected cruise ship in Japan.
Almost 6000 international students and thousands of Chinese tourists will be blocked from travelling to Australia until February 29 after Prime Minister Scott Morrison’s National Security Committee yesterday decided to extend the ban for another week.
Local builders, manufacturers and car mechanics are now facing delays on importing parts from China, while the virus continues to affect the seafood, retail, university and tourism sectors, with Adelaide’s Chinatown hit particularly hard.
“We’ve had cancellations of actual bookings as far out as August,” Australian Hotels Association SA chief executive Ian Horne said.
Mr Lucas is urging the Federal Government to bring forward billions of dollars worth of personal income tax cuts to help SA inject money back into the economy.
“What that means is you’ve got more people with more money to spend, and that’s certainly what we want to see ... because that flows through to the states in terms of GST income as well,” he said. Mr Lucas will meet his fellow state treasurers in Melbourne on Friday to discuss how jobs growth and the economy will be impacted by coronavirus and bushfires. “For smaller jurisdictions like us, exports to China are really important, so wine and seafood are going to be significantly hit,” he told The Advertiser.
“In terms of visitor numbers, tourists and international education are two very significant revenue earners for us – we’re going to be facing a big hit there and a big hit for bushfire recovery costs.”
The State Government was already seeking to fast-track “shovel ready” infrastructure projects, he said, adding he expected the state and Commonwealth to pour money into tourism campaigns.
Treasurer Josh Frydenberg said on top of bringing forward $4.2 billion of infrastructure projects over the next four years and delivering $302 billion worth of personal income tax cuts, the Government would continue to engage with business about more reforms to drive competitiveness.
Business SA chief Martin Haese called for banks to offer exporters and businesses hit by coronavirus the same assistance they’ve previously offered drought-affected farmers.
“Export and especially the export of food products is absolutely critical to the SA economy,” he said. “If we lose ... some of our export base, it will take a long time for that to be re-established.”
He also called on state and federal governments to fast-track infrastructure projects, saying it would boost jobs and confidence.
Mr Horne said accommodation providers were seeing cancellations due to coronavirus and expected it to impact business conferences.
The travel ban had already cost “hundreds of millions” locally, while Mad March had not cushioned the blow in regional and suburban SA, he said.
Tourism and Trade Minister Simon Birmingham said the Government had begun planning for measures to lure back tourists when the travel restrictions were lifted.
Australia China Business Council SA president Sean Keenihan said the impact of the ban was “much broader than most people understand”.