Travel agents call for government funding, local bookings to help COVID-19 recovery
A Logan travel agent says the business of locals booking domestic trips could be a lifesaver as their industry calls for unprecedented government assistance in the face of COVID-19 disaster.
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A Logan travel agent has recounted the devastating moment her industry came to a “screeching halt” amid a global pandemic.
“COVID-19 has been a devastating blow on our business,” said Sina World Travel managing director Patricia Sevele.
“From day one of lockdown our earning capacity came to a screeching halt.
“That was March. We are now into the seventh month of the pandemic and our company is struggling to stay afloat through no fault of ours.”
HOW TRAVEL AGENTS ACROSS QLD ARE HIT BY COVID
Ms Sevele said travel agencies have continued to serve customers throughout this period, not to make bookings but to assist would-be holiday maters “claw back their refunds from airlines, cruise companies (and) wholesalers”.
“We are still in the midst of that long drawn-out process,” Ms Sevele said.
“Work still continues yet our earning capacity has completely disappeared.
“Cashflow is a huge problem now as bills continue to come in.
“I have had to put off staff, operate on reduced hours.”
However she said remaining open was crucial to maintaining confidence in their niche market.
“It is important we stay focussed on staying afloat during these devastating times as we believe when the good times come we are in a position to welcome our customers back and rebuild strongly.”
Ms Sevele is one of 4000 travel agents — employing 40,000 Aussies — experiencing a never before seen decline in business, and morale.
“The stress level is very high and it is difficult not to have this affect life outside of business, however, family support is ever so precious during these times.”
According to the The Australian Federation of Travel Agents, a $125 million support package is desperately needed by the industry, which had been a growth sector contributing $28 billion annually to the economy before COVID-19 struck.
The industry had been responsible for 70 per cent of international bookings made from Australia and gained some two-thirds of its total turnover value from international air and cruise which was indefinitely interrupted on March 18 and is expected to take a far longer recovery period than that of domestic travel.
“Almost all agents have experienced revenue falls of close to 100 per cent,” the federation said, adding that the plummet followed what had been a healthy 11 per cent year on year growth.
“Without tailored support these businesses will start closing.
“That means job losses, a gap in the market that the internationals will fill. They don’t pay taxes or employ locals.”
Currently, the federation estimates at least 25 per cent of local travel agencies will close.
Ms Sevele said government assistance was vital for the industry as it stands.
“Government funding and assistance from other means like tax concessions have been a great welcome, however I feel travel agencies are a forgotten race.
“Certain parts of the tourism industry have been given assistance yet the travel agencies have not been fortunate in that distribution of funding.”
“I look around the shopping centre where I am... I see many small businesses reopening and trading steadily.
“They are beginning to generate business and obviously starting to grow.
“So long as the borders are closed both domestically and internationally travel is dying and so is our capacity to generate income.
“Government cash assistance for Travel Agency businesses would be a huge welcome.
“It would mean survival for many of us as we await the reopening of international borders.”
Ms Sevele called on locals currently considering domestic travel to visit a travel agency.
“Their expertise, knowledge and friendly service is what you need.
“Your business could help that travel agency stay open.”
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