Coronavirus costing tourism industry $9 billion a month

The tourism sector has suffered a great blow due to the coronavirus, with new figures revealing the crisis will cost at least $9 billion a month, forcing the industry to face “extinction” as it deals with a projected loss of up to 330,000 jobs this year.

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Australia’s tourism industry is “facing extinction”, with new figures revealing the coronavirus crisis will cost the ­embattled sector at least $9 billion a month.

Research by peak industry group, Tourism and Transport Forum Australia (TTF), found that of that total, $4.95 billion will be stripped from the domestic travel market, with $3.96 billion cut from international tourism.

The shocking figures follow the federal government’s strict bans on foreign travellers ­entering the country while local tourism is also now virtually at a standstill.

TTF chief executive Margy Osmond said the monthly economic damage figure was “conservative”, with the new domestic figures covering overnight stays and not the day-tripper market which was a “substantial piece of the ­action but more difficult to calculate”.

“It’s dire, it’s desperate — the industry is facing extinction at this moment in time but I am confident that the government is going to step up and assist,” Ms Osmond said.

Empty tables at the Opera Bar in Sydney as tourists and locals stay away from the city on Saturday, March 21. Picture: AAP/James Gourley

Up to 330,000 jobs are also forecasted to go this year, Ms Osmond said, accounting for between $9.3 billion and $13.3 billion in lost salaries.

The new report also noted if Australian states and terri­tories started restricting interstate travel to contain COVID-19, the impact will be even greater. An earlier TTF report ­released last month found the industry would lose $2 billion a month.

“What’s changed between now and then is that we now have a complete lockdown in terms of international inbound and we’ve got a significant drop off in domestic,” Ms ­Osmond said.

Ms Osmond said the federal government must inject more funding on top of the $1 billion included in the stimulus package announced earlier this month.

In a letter sent to Prime Minister Scott Morrison on Friday from tourism leaders, including Ms Osmond, they outlined the urgent action needed to help the devastated industry.

“This is an unprecedented, once in a generation event for our sector and for the economy as a whole,” the letter stated.

“These measures will make the difference but only if the government acts now.”