AFTA: Federal support package for travel agents ‘has multiple flaws’

The Australian Federation of Travel Agents says the government needs to do more to support the nation’s travel industry.

AFTA chairman Tom Manwaring said: ‘Until international travel returns, the reality is that, without ongoing support, these businesses … cannot and will not survive.’

The peak body representing the nation’s travel industry has accused the federal government of having multiple flaws in its recently announced $128m support package for embattled travel agents that has provoked confusion and ­uncertainty in the lead-up to Christmas.

The Australian Federation of Travel Agents said it had repeatedly requested the opportunity to review and comment on the detail of the government’s $128m support package and implementation approach, but said “that was not provided”.

“As a result, there are multiple flaws in the approach which are creating unnecessary confusion and strain at the end of an already challenging year,” AFTA said.

But in a statement to The Australian, outgoing federal Tourism and Trade Minister Simon Birmingham said the $128m package, on top of the $700m already provided to the sector through programs such as JobKeeper, was developed in consultation with AFTA.

Outgoing federal Tourism and Trade Minister Simon Birmingham. Picture: NCA NewsWire / Gary Ramage

“The government is focused on rolling out payments as announced to over 4000 travel agents as quickly as possible,” Senator Birmingham said.

AFTA chairman Tom Manwaring said many of the small businesses that desperately needed support were not eligible to share in the $128m.

“The reality is that even for those few businesses that actually qualify, the support barely covers two months of costs — and in fact for the lower-end businesses the proposed support equates to just two weeks,” Mr Manwaring said.

“Until international travel returns, the reality is that, without ongoing support, these businesses … cannot and will not survive.”

Mr Manwaring said the eligibility criteria, entry threshold tests and grant size of the $128m tailored program must change especially at the lower tiers to offer any hope to the 40,000 people relying on the survival of travel agents for employment.

“The survival of Australia’s 4000 travel agencies, tour operators and wholesalers is also critical to the unpaid work being done to repatriate the outstanding $4bn of outstanding refunds for Australian consumers from airlines, ­hotels and overseas tour companies,” he said.