Central Coast travel agents call for $125m rescue package amid coronavirus
While travel agents are busier than ever processing refunds, a lack of income is crippling the industry as it calls for a government rescue package. A Terrigal agent outlines the harsh reality.
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There is zero income flowing to local travel agencies, however staff couldn’t be busier processing refund after refund, says The Travel Authority Group chief executive officer Peter Hosper.
Mr Hosper, owner of The Cruise and Travel Authority in Terrigal, said when it came to COVID-19 impacts on the travel industry “we were first hit and will be the last to recover”.
“A big factor for us now is borders being closed,” he told the Express.
“That is crippling us. It has a dire and immediate affect on us to perform our business. While people have come to terms with international borders being closed, they are still itching to get away.”
The Australian Federation of Travel Agents (AFTA) is calling on the Federal Government for a $125m support package for Australia’s 4000 travel agents and its staff of 40,000.
“We contribute $28 billion each year to the economy. We desperately need the Government to provide financial support, understand the unique position agents are in and the unique role agents play in supporting consumers and keeping the tourism sector going,” an AFTA spokesman said.
Mr Hosper said while The Travel Authority Group was in a solid financial position, they could not maintain this forever without income. He said the $125m push would simply give the travel industry the ability to conduct business.
Staff are not sitting around waiting for new bookings. Since the pandemic started, they have been busy processing refunds and re-bookings, with a range of complex issues when bookings are processed through various companies worldwide.
“We have never been busier," Mr Hosper said.
“It’s a huge job to reverse the whole process, however it’s in everyone’s interest for us to be here to process refunds. All the money we made last year we are essentially handing back this year. In some months, we have had literally negative revenue.”
He said the industry was grateful for JobKeeper, however needed more help.
“The difficulty for us is that we are put on the same level as other businesses,” he said. “For example a gift shop in Terrigal may have had a 50 per cent drop in business but they still access JobKeeper to support salaries.
“We have no income and there is no opportunity to make any income. JobKeeper goes directly from the government to our staff. It only looks after that one expense.
“It costs a lot of money to run the business, with ongoing costs for technology. We want to keep all of that going. When things go back to normal we want to be ready. It’s a unique challenge for our industry.
“Slowly and surely borders will reopen, but it’s not enough for us at this stage. No one can tell what the future will hold.”
AFTA states that 70 per cent of Australians booked through travel agents, with 2018/19 seeing Aussies spent $46 billion on international travel.
“Without tailored support, these businesses will start closing,” the spokesman said. “That means job losses, a gap in the market that the internationals will fill. They don’t pay taxes or employ locals. We estimate at least 25% will close.”
Mr Hosper said the group has decided to keep the Terrigal shopfront open.
“We want to be there not just now but for the future,” he said. “We want to keep being part of the community.
“The message is to keep supporting your local travel agent. They are the ones that make things happen. They are the professionals that will do the right thing and when the time comes, they will be here, ready.”