Covid-19 Australia: One in three tourism businesses fear they will be forced to close in next three months

The opening of interstate and international borders will do little to help the crippled tourism sector, according to new data.

Scott Morrison’s promise to allow international travel to resume will do little for Australia’s ailing tourism sector, according to alarming new figures from the industry peak body.

The Prime Minister’s plan to allow international travel from November combined with the dramatic easing of restrictions in NSW is expected to relieve huge barriers weighing on tourism operators, but the sector has warned more pain is still to come.

One in three tourism businesses are facing extinction within the next three months, according to research from the Tourism and Transport Forum. It fears the lingering uncertainty on domestic and international borders will continue to cripple activity.

More than 40 per cent warn the industry will be worse off in three months and 29 per cent say the outlook will remain grim for the next 12 months, according to a survey of 500 businesses.

The concerning projections have forced many to consider abandoning the profession, with 70 per cent exploring other sources of revenue.

Closed borders have made tourism activity largely impossible. Picture: NCA NewsWire/Tertius Pickard

“Travel hesitancy will linger for both the leisure and corporate travel markets as long as Australians feel they are at the mercy of policymakers playing border roulette and while quarantine requirements remain in place,” the peak body’s chief executive Margy Osmond said.

“In the long term, there is a real fear that major and high yield inbound markets outside of the US and UK, such as Asia and parts of Europe, will remain directly shut off to Australia for some time until they are deemed as safe countries by the federal government and quarantine-free travel opens up for double-vaccinated tourists.”

Ms Osmond said governments would be forced to support the decimated sector further.

“Many internationally reliant tourism operations in places like Cairns and Uluru, in tourism growth states like South Australia and Tasmania and in the struggling CBDs of Melbourne and Sydney will simply be unable to pivot their products and offerings to save their businesses and will need further government support,” she said.

“It will take a combination of concerted and strategic international engagement and investment by state and federal governments to re-attract key aviation routes while at the same time providing targeted financial support for internationally reliant tourism operators so that they can stay afloat during this time.”