James Campbell: Half-priced flights no help to Melbourne’s dying CBD

Melbourne’s CBD is on its knees, with foot traffic way down and empty shopfronts everywhere. So what’s the response to this economic catastrophe? Subsidise Victorians to fly interstate.

Almost 30 per cent of the shopfronts in the city are either closed or empty. Picture: NCA NewsWire

Melbourne’s CBD is on its knees. Foot traffic is down 60 per cent from pre-pandemic levels.

Almost 30 per cent of the shopfronts in the city are either closed or empty.

In November and December tourism spending in the City of Melbourne – Victoria’s most important destination for interstate visitors – was down 91 per cent from the previous year.

In January, Melbourne’s hotels were at 60 per cent capacity and the majority of the rooms that were occupied were taken up with visitors in hotel quarantine.

And the Federal Government’s response to this economic catastrophe?

Subsidise Victorians to fly interstate.

Under the tourism rescue package announced today Victorians will be able to buy subsidised airfares to Alice Spring, Uluru, Broome, Launceston, Devonport, Burnie, Cairns, Maroochydore, Merimbula and the Gold Coast.

CBD foot traffic is down 60 per cent from pre-pandemic levels. Picture: NCA NewsWire

There are no subsidised flights into Melbourne.

The only subsidised flights into Victoria are from the Gold Coast and Sydney – both of which are into Avalon.

The plan is presumably to boost regional visitor numbers. But as anyone who has driven for an hour outside Melbourne can tell you – regional Victoria has been having one of its best tourist seasons in years.

Which is why last month the Accommodation Association of Australia called for a voucher scheme to encourage regional Victorians to spend money in Melbourne.

Instead the Federal Government is planning on using Victorians’ taxes to subsidise Melburnians to visit and spend their money in Western Australia, the Northern Territory, and Tasmania but not for the residents of those states to visit here.

This package is not just an insult to Victoria, it will be injurious to the state’s economy.

The best thing to be said for it is there are apparently there are more destinations to be announced later on.

There will need to be.

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