States’ move to shut out Melbourne costs economy $6b
A dramatic drop in domestic travel to and from Melbourne, partly caused by border closures, has wiped more than $6b from the Australian economy. Now experts say restarting interstate travel before Christmas would be a “social and economic gift to the country”.
Victoria
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More than $6b has been wiped from the Australian economy since March due to a drop in domestic travel to and from Melbourne, a new report reveals.
The research shows some of the nation’s most frequently travelled routes including flights from Melbourne to Sydney and Brisbane have dropped by more than 90 per cent over the period.
It also shows Australia is losing $319m every day because of the drop in domestic and international flights.
The Business Council of Australia (BCA) is calling on the national cabinet – that next meets on Friday – to come up with a plan for domestic travel before December to save jobs.
“Getting Australians flying again before Christmas would be a social and economic gift to the country, delivering an additional $3.3b,” BCA chief executive Jennifer Westacott said.
“We are not asking for a free for all – we need a highly-targeted, careful and gradual reopening of the economy based on health advice with robust nationally consistent systems in place for departures and arrivals, quarantining, local containment, and digital tracking and tracing.”
An eye-watering $61b has been lost due to the drop in international flights and a further $17b has been shed with the fall in domestic travel over the past seven months.
More than 34,000 people in the sector have either lost their jobs or been furloughed during the pandemic.
Passenger numbers on the Melbourne to Sydney and Brisbane to Melbourne routes have each dropped 91 per cent, shedding $3.1b and $1.2b respectfully from the economy.
The BCA also wants the federal government to work with states to create a plan for the return of international students and overseas flights, gradually and safely.
Interstate travel for Victorians is not recommended, with every other state and territory only allowing visitors who have been granted special exemptions and must quarantine for two weeks.
People travelling to Western Australia are not long required to quarantine in a hotel at their own expense and can instead self-isolate at a home.
Regional Victorians could be among the first to travel interstate, with the Northern Territory flagging travellers from outside Melbourne could be allowed in by November 2 if numbers remain low.
The tough border controls across the country last week prompted a warning from Melbourne Airport chief executive Lyell Strambi that families and friends would remain cut off from each other at Christmas time.
He urged for governments to find a solution to allow interstate travel as quickly as possible, with preparation time vital for airlines and airports ahead of the holidays.
In September, 24,200 domestic travellers flew in and out of Melbourne compared to 2 million over the same time in 2019.
The airport has paused construction on a $160m hotel project near Terminal 4 as it grapples with the economic fallout of travel restrictions.
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