Trans Otway Travel says government support for travel agencies needs a rethink
A Geelong travel agent says a federal support scheme for the sector has fallen flat and will deliver just enough for a month’s rent at a time when the business is desperate for a major financial lifeline.
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A Geelong travel agent says a federal support scheme for the sector has fallen flat and will deliver just enough for a month’s rent at a time when the business is desperate for a major financial lifeline.
Trans Otway Travel Geelong West manager Lauren Kelly said the federal government needed change the way its $128 million support package was distributed to small and medium operators.
“Very disappointing is probably the best way to describe it. We were advised our compensation levels would be based on our turnover or total sales except (the federal government’s) version of total sales is actually our earnings,” Ms Kelly said.
“We think it’s been designed to benefit the bigger corporate (travel) agencies.”
Under the support scheme travel agencies are eligible for one-off grants starting at $1,500 for a business with a $50,000 turnover up to a maximum $100,000 for a business with a $20 million turnover.
Federal government data showed the Australian tourism industry loss $59.1 billion between January and September last year.
Ms Kelly called on the government to consider travel agencies’ sales rather than earnings in assessing the extent of financial support.
“I am grateful for anything the government can give us but the amount I’ve estimated we’ll get is not even going to cover a month’s rent.”
Ms Kelly said under the federal scheme, announced in December, Trans Otway Travel would be eligible for about $6000, and in a good year the company would have a turnover of up to $5m.
Ms Kelly said JobKeeper, which currently supports five Trans Otway Travel staff, needed to be extended beyond March as the industry grappled with the likely closure of the international border well into 2021.
“We are surviving because of JobKeeper. Our owner is committed to staying here and riding this through however we need financial help from the government to do that.”
She said recent months had seen a rise in demand for domestic and interstate travel but it was not enough to make up the shortfalls from lost international travel revenue.
Corio Labor MP Richard Marles said: “Travel agents need more than one-off grants for a lucky few. If travel agents... aren’t given the help they need to get through extended restrictions on travel, there will not be enough operators and workers ready to revive the tourism industry.”
Tourism Minister Dan Tehan did not answer questions about modifying the travel agent grant scheme but said $33m from the $128m was paid.
He said the government had spent $308m to support regional airlines and $50m to support regional tourism, and earmarked $100m for tourism related infrastructure.
Mr Tehan said the government’s COVID-19 recovery fund included $94.6m for zoos and aquariums, $50m for business events and support for the arts sector.
He would not say if JobKeeper would be extended for the travel industry.
A national survey of 700 travel agents, completed this month, found just one in 10 will survive beyond April 1 without targeted assistance or an extension of JobKeeper.
Originally published as Trans Otway Travel says government support for travel agencies needs a rethink
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