Covid-19 Gold Coast: Queensland government pushing for return of JobKeeper-style payments on back of heavy tourism job losses
A renewed $3m spend-at-home campaign will help save the Gold Coast from another school holiday blow, tourism leaders say.DETAILS >>>
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A RENEWED $3m spend-at-home campaign will help save the Gold Coast from another school holiday blow, tourism leaders say.
Destination Gold Coast’s Play Money Rewards program will relaunch on Thursday, offering 60,000 vouchers on tourist attractions, cultural experiences, accommodation, dining and retail deals.
Locals will be able to select eligible attractions and products from Destination Gold Coast’s website and, using a promotional code, receive a $50 discount voucher for spending $100 or more.
The program, which received a $1m boost from the state and federal governments on Tuesday, will offer more than 500 experiences from 503 businesses.
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Destination Gold Coast CEO Patricia O’Callaghan said the program would deliver a shot in the arm to the local economy and support ailing businesses during the school holidays and beyond.
“We’ve seen Gold Coast tourism operators and small businesses giving it their all during what has been an exceptionally difficult period and this initiative will go a long way to help bridge the gap until borders reopen to our key interstate markets and international travel returns,” she said
REAL REASON WHY COAST SHOPPING CENTRE IS EXPANDING
“With more than 500 participating businesses and experiences on offer, here is your chance to support local and be a tourist in your hometown.
“If this money can get to the targeted industries at a time that they need it them we have another chance to keep this industry alive during this pandemic.
Ms O’Callaghan said the extra funding committed this week from the government had allowed for an extra 20,000 vouchers to be offered.
“The numbers into the school holidays are looking really soft so these are timely and welcome measures,” she said.
The program was first launched in October 2020 and offered 10,000 discounts for attractions.
All vouchers were sold out in less than 72 hours.
INSIDE STORY: WHAT WENT WRONG WITH ELITE COURAN COVE
Gold Coast Mayor Tom Tate urged locals to spend with local operators.
“Today, there’s 60,000 reasons for our much-loved business community to smile as the $3m Play Money Rewards experience rolls out,’’ he said.
“The best part of this voucher scheme is that it is specific to Gold Coast businesses so we want people to shop, dine, play and stay locally as we all help drive our economic recovery from the challenges of Covid-19.’’
The Gold Coast’s tourism sector is hurting, with borders having been closed to the key markets of NSW and Victoria for more than three months.
New data released last week revealed one in five Gold Coast tourism jobs had disappeared since mid-2020 and another 4000 were tipped to disappear by Christmas.
Tourism, the Gold Coast biggest sector, lost nearly $4bn of its pre-Covid $6bn cash cow in 2020 alone.
It lost at least $550m for the months of July and August on the back of two lockdowns and border closures.
Among those who are lining up to secure vouchers are Burleigh’s Lisa and Duncan Smith.
“We’ve been having staycations in Surfers Paradise and Broadbeach from time to time and hooking the kids up with things we wouldn’t normally do,” Mr Smith said.
“People will fly for 24 hours from the UK or the US to enjoy the Gold Coast and we have it on our doorstep.”
QLD PUSHES FOR JOBKEEPER-STYLE PAYMENTS TO EASE INDUSTRY PAIN
THE Palaszczuk government is backing a Queensland tourism industry push for the Federal Government to reinstate a targeted JobKeeper-style payment for tourism operators.
The campaign was sparked after new research showed one in five Gold Coast tourism jobs have disappeared since mid-2020 during the pandemic.
About 4000 more roles are expected to disappear by Christmas prompting the Opposition to blame Labor after only three per cent of its $600 million payouts reached businesses.
But Tourism Minister Stirling Hinchliffe said the Government had warned the Morrison Government when JobKeeper was cut last March it would be devastating for Queensland tourism.
“Our prediction has come true,” Mr Hinchliffe told the Bulletin.
“From Gold Coast’s border communities to Cairns, axing JobKeeper while Covid-19 rips through NSW and Victoria has become Queensland tourism’s worst nightmare.
“Federal MPs like Warren Entsch and those on the Gold Coast like Karen Andrews haven’t lifted so much as a finger to help as businesses go to the wall.
“The Palaszczuk Government has committed $1 billion in direct support for tourism operators.
“We’ve partnered with the Commonwealth in $600 million for Covid-19 Business Support Grants, but it’s past time for the Prime Minister to show leadership and bring back a targeted JobKeeper-like payment for tourism at least until the country is fully vaccinated.”
Queensland Tourism Industry Council CEO Daniel Gschwind said a wage subsidy scheme would help thousands of operators doing it tough throughout the state.
“The loss of JobKeeper was a significant blow to our industry,” he said.
“As long as restrictions on the movement of domestic visitors are in place, our industry will be struggling.
“A wage subsidy scheme would be the most effective measure to keep hundreds of Gold Coast businesses afloat and prepared for when borders reopen.”
Environment Minister and Gaven MP Meaghan Scanlon said it was time for the Commonwealth to look seriously at delivering more support for Coast tourism businesses.
“I’ve been in regular contact with local businesses and industry groups on the Gold Coast in recent weeks and one of the main issues they raise with me is the lack of a wage subsidy scheme delivered by the Federal Government,” she said.
“JobKeeper was good for businesses who needed the support, but it was cut too soon.
“I encourage the Prime Minister to look seriously at this issue to save tourism businesses on the Gold Coast.”
Massive job losses tipped for Coast industry
Earlier: One in five tourism jobs have been lost on the Gold Coast since mid-2020 – and industry bosses fear it is about to get worse.
More than 4000 jobs were lost in the year to June 30 and the city’s biggest industry is now expected to shrink further in the next three months on the back of closed borders, a lack of interstate and international visitors and surging Covid cases in southern states.
The outlook for the rest of 2020 is dire according to new research from the Tourism and Transport Forum (TTF) on the Gold Coast sector, which is directly supported by 35,000 people and 4600 businesses.
These figures do not include the army of casual workers who are the backbone of the tourism industry.
It tips a further 4000 full-time and part-time jobs will go by Christmas.
The dire outlook has desperate industry leaders renewing calls for a JobKeeper-style wage subsidy to ensure everyone from mum and dad operators to major theme parks survive.
CEO Patricia O’Callaghan said the city was in the fight of its life.
“These figures are heartbreaking,” she said.
“We know the industry will bounce back once people are able to travel again, but until that happens, the industry is requesting targeted financial support from government.
“We appreciate the government’s support to date, in particular the $600m business support package.
“Measures around business hardship grants and financial mechanisms that allow employers to retain skilled staff and keep them connected to the business until economic conditions improve will be critical.
“As this crisis continues to unfold, the lifeline for our industry will be government support.”
Just 3 per cent of the $600m fund, which was won on the back of a campaign led by the Bulletin, has actually been dolled out to eligible businesses.
City tourism, business and political leaders have long called for the Morrison government to throw a lifeline to the Gold Coast biggest sector, which lost nearly $4b of its pre-Covid value of $6b. The tourism industry lost at least $550m for the months of July and August on the back of two lockdowns and border closures, with more than $120 million in major events at risk.
The latest, the Logies, was abandoned at the weekend.
TTF CEO Margy Osmond said the sector was reeling having lost the critical Sydney and Melbourne visitors for the July school holiday period, the third peak holiday period in a row decimated by lockdowns.
She said the outlook for the upcoming school holidays was “bleak”.
Destination Gold Coast chairman Paul Donovan said his heart went out to the 4600 tourism businesses
“We are proudly Australia’s favourite holiday destination, but our operators are hanging on by a thread,” he said.
“Our local tourism industry relies on people travelling to enjoy what the region has to offer and, with more than half of Australia’s population under travel restrictions, the impact on the Gold Coast is significant.”
30 per cent of businesses ‘won’t last until year’s end’
Earlier: Struggling Gold Coast businesses facing closure are being urged to hold on in anticipation of a giant influx of tourists after Christmas for a bumper 2022.
Business confidence is at rock bottom, with the Gold Coast recording the state’s worst result in a Chamber of Commerce and Industry Queensland (CCIQ) survey. In the survey up to 30 per cert of business fearing they would not make it to the new year.
FAIL: BIGGEST PROBLEM WITH GOLD COAST’S CANAL ESTATES
WHEN GIANT NEW GOLD COAST SHOPPING CENTRE WILL OPEN
But despite the bleak outlook with ongoing lockdowns and border closures – costing the city’s economy more than $550 million in the past two months – business and tourism leaders are urging stressed operators to keep their eyes on a bright light at the end of the tunnel.
Village Roadshow theme parks chief operating officer Bikash Randhawa issued a passionate plea to the tourism businesses weighing up closing doors forever, saying there was economic light at the end of the tunnel.
“Please, hold on because I genuinely believe we will have the best 2022 of anybody,” he said.
FIRST LOOK: MASSIVE NEW UNIT BLOCK FOR SOUTHERN GOLD COAST
“What do I base that on? Our research shows there is so much pent-up demand and I strongly believe this will translate to huge crowds of people coming here and building us back up but in the meantime, we just have to survive through to the end of this year.
“Please keep going because next year will be much, much better.”
‘CRITICAL LOW’: UNIT SUPPLY EVAPORATES ON COAST
The tourism sector was bouncing back from the first year of the pandemic, with traffic at Gold Coast Airport back in May returning to 80 per cent of pre-Covid levels.
But two successive snap Queensland lockdowns and with both Sydney and Melbourne still shut down has left the airport with just a handful of flights coming in each week.
MASSIVE CHANGE COMING FOR COAST PROPERTY MARKET
Queensland Tourism Industry Council CEO Daniel Gschwind said struggling operators were facing their “toughest moment” but remained confident operators would see a boom once visitors could return.
“We lived on hope for a long time and there was the suggestion we were going to bounce back at Easter this year. Then of course the lockdowns happened and that squeezed the optimism out,” he said.
“Now many operators find themselves at the end of the line financially and emotionally and while we are a resilient industry, some have been pushed past their limits.
“But we are in a strong position to deliver what I think most consumers are looking for and it is something we must work towards.”
$440M HOTEL SCRAPPED FOR LUXURY BEACHFRONT TWIN TOWERS
Organisers of a further $120 million worth of events already booked through December 31 are now weighing up cancelling them entirely.
The latest, the Pan Pacific Maters Games, pulled the pin on Monday.
Destination Gold Coast CEO Patricia O’Callaghan said the peak body remained focused on “attracting 100 per cent of the market available” to support the 4600 tourism businesses which have endured more than 18 months of disruption.
“We know the Gold Coast is a sought-after destination for Aussies, but the reality is travel confidence has taken a hit and we currently don’t have access to key interstate markets of Melbourne, Sydney and the ACT,” she said.
“However, we are at the ready to activate marketing plans as soon as we can safely welcome their return.
FULL LIST: EVERY GOLD COAST TOWER PROJECT
“There is no silver bullet to recovery, but a number of initiatives are critical to support an industry that’s on its knees.”
While both the federal and state governments have put forward millions in relief packages, it has done little to lift business confidence.
CCIQ’s August business pulse survey revealed confidence was at its lowest since the pandemic began in March 2020.
$600m rescue package ’not enough’ for Coast
Gold Coast business and tourism leaders have welcomed a $600 million relief package for the city’s devastated sector.
The federal and state governments stuck a deal on Friday to increase business support grants from $260m to $600m.
The announcements followed a week of lobbying by the Gold Coast Bulletin, including a “ScoMo, where the hell are you” front page personal letter to Prime Minister Scott Morrison that was shared among powerbrokers in Canberra.
Paul Donovan welcomed the figure but said it would not solve the issues facing the sector, which lost more than $3 billion in value during 2020.
“Everyone is grateful for the assistance but we will need much more than that to get us through,” he said.
“It is great the state and federal governments came together along with the council funding but things are still really dire.”
Gold Coast Central Chamber of Commerce president Martin Hall welcome news of the $600 million relief package but conceded it was “overdue.”
“It’s great, obviously it’s a top up from the $260 from the state, it’s to be absolutely commended. It’s certainly what we need,” Mr Hall said.
“We just need to make sure it’s targeted at the right people as the definition of the tourism is quite broad. It’s important we don’t forget anyone.”
Discussions with business owners had been positive in light of the funding revelation by Scott Morrison on late Friday afternoon.
“(Business owners) were absolutely desperate before this but it’s important to remember that it is a package for the entire state, not just the Gold Coast so we are really keen to see how this money is disseminated,” Mr Hall said.
“We do feel like the poor cousin sometimes when it comes to state allocated money, so we really need to get behind this and see what happens.”
FULL DETAILS OF GIANT $600M PACKAGE
The Gold Coast is to benefit from one of the biggest Covid rescue packages yet with the Commonwealth and State governments boosting business support grants from $260 million to $600 million.
The announcements follow a week of lobbying by the Bulletin where the newspaper’s front page — it carried a personal letter Prime Minister Scott Morrison and the headline ‘ScoMo, where the hell are you’ — was shared among Canberra powerbrokers.
The city’s airport has been vacant and during lockdown businesses facing bankruptcy as tourist hot spots were empty of pedestrian traffic.
The package will provide additional support for businesses that have had a decline in turnover of more than 30 per cent. Key points include:
● A $1000 one-off grant to non-employing sole traders across Queensland;
● Tiered payments based on payroll size for all businesses across Queensland: A $5000 one-off, top-up grant to small business with payroll of less than $1.3m; a $10,000 one-off, top-up grant to medium sized business with payroll between $1.3m and $10m; a $25,000 one-off, top-up grant to large sized tourism and hospitality focused businesses with payroll of greater than $10m.
Federal Treasurer Josh Frydenberg said this new business support package recognises that the impact of lockdowns was felt right across Australia.
“The Morrison Government recognises the impact that lockdowns across the country are having on businesses in Queensland,” Treasurer Frydenberg said.
“This package will help to keep businesses in business and Queenslanders in jobs and builds on the almost $30 billion in economic support the Morrison Government has provided Queensland households and businesses during the pandemic.”
“As we have done so throughout this crisis, we will continue to work with the Palaszczuk Government to ensure the Queensland economy continues to recover from the impact of COVID-19.”
Queensland Treasurer and Minister for Investment Cameron Dick said the agreement would boost support, not just for businesses that have been affected by recent lockdowns, but by those that continue to suffer because of lockdowns in other jurisdictions.
“We know that across Queensland, the lack of international and interstate visitors is affecting businesses every day, especially those in tourism and hospitality,” the Queensland Treasurer said.
“This dollar-for-dollar agreement with the Federal Government will see Queensland’s contribution rise to $300 million and vastly increase the scope of support available to businesses right across the state.
“From Monday 16 August, our $5000 COVID-19 Business Support Grants program will be open to businesses across Queensland, but this agreement with the Federal Government is in addition to that and means that we will be able to extend our support even further.
“It comes on top of the nearly $70 million in additional support and benefits for Queensland tourism and hospitality businesses that I announced earlier this week.”
“I want to thank Federal Treasurer Josh Frydenberg for his rapid response to the evolving impact that COVID-19 is having on businesses right across Queensland.”
Meanwhile, Minister for Home Affairs Karen Andrews also welcomed news of the agreement on Friday, saying swift action had been made to deliver support for local businesses.
“It builds on the $30 billion of economic support the Morrison Government has provided to businesses and families right across Queensland,” Minister Andrews said.
“With the State Government’s recent lockdowns, border restrictions and the supply of tourists from Sydney and Melbourne non-existent, it’s a particularly difficult time for the Gold Coast.”
She said the grant came at a dire time for many businesses left crippled by ongoing lockdowns nationwide and a subsequent lack of tourism to the city.
“I’ve spoken with businesses right across our community, including with Gold Coast Airport last week, hearing just how significant this challenge is,” Minister Andrews said.
“After speaking with my Cabinet colleagues in Canberra about these challenges, I’m pleased we’re able to announce this support, and its particular focus on the tourism and hospitality sector which is just so important to the Gold Coast.”
The Bulletin wrote to Mr Morrison this week pleading for greater support for local business as the city struggled to emerge from last week’s snap lockdown. The Bulletin told the Prime Minister that the Gold Coast, a $6bn tourism mecca, was in meltdown as the Delta variant ravaged bigger cities on the east coast. The newspaper said the city was the nation’s small business capital with more than 60,000 mum-and-dad operations, but was on its knees following the axing of wages subsidies such as JobKeeper.
Originally published as Covid-19 Gold Coast: Queensland government pushing for return of JobKeeper-style payments on back of heavy tourism job losses
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