Bold reforms will help hospitality and tourism recover from Covid-19
Australia’s tourism and hospitality sectors provide more than a million jobs and contribute billions of dollars to the Australian economy. As such, getting these sectors back up and running will provide significant economic stimulus that our economy needs.
However, these industries are suffering from a staff shortage that threatens to halt the economic recovery of many businesses. We have businesses unable to meet consumer demand because they simply don’t have enough staff.
When the pandemic hit, hundreds of thousands of international workers left Australia for their home country and now that Australian businesses are reopening, there simply aren’t enough Aussie workers to fill the shortages.
Cafes, restaurants, hotels and tourist attractions are unable to return to pre-Covid trading because they don’t have the employees.
I’ve previously added my support to a Covid recovery visa which would facilitate the recommencement of overseas workers and I look forward to continuing to work with the federal government to see that become a reality.
Many industries have relied on international workers – take fruit picking for example. Our regional tourism areas, like ski fields, also rely on international seasonal workers. A Covid recovery visa would enable businesses to access overseas talent in a safe and secure manner – and in-turn increase operating capability to meet demand.
However, in the meantime, I congratulate the NSW government, led by the outstanding Gladys Berejiklian, for trialling a new initiative to bring international students back to our shores.
The NSW government is leading the way for businesses to get back on their feet. The reintroduction of international students builds on the success of the Dine and Discover vouchers and consistent approach to border management.
There is no doubt this is a big and bold move by the Berejiklian government that will bring benefits for the entire NSW economy. It will assist the decimated tertiary education sector, student accommodation market, English language training schools, and the hospitality sector. Significantly, it will provide a new pool of talent to ensure hospitality businesses can return to operating capacity – this is a great start.
These international students will help fill significant shortages in positions like baristas, cleaners and waitstaff. Businesses having the staff to increase trade will deliver widespread benefits – it puts more money back into the economy through more wages being paid and increased tax revenue.
Of course we want to employ Aussies first, I’ve said that countless times. But if we can’t fill these vacant roles with Aussies then this is our next option!
And to be crystal clear here, international student workers are not a cheaper option than employing Australian citizens. They are required to be paid the same award wage and entitlements as any Aussie in the job.
NSW is in a strong position because of the careful and considerate planning by this government. It is now up to business to take the tools we have been given and deliver the prosperity our country needs.
To ensure the future growth and success of the hospitality sector, and therefore the wider economy, the federal government should also be using this time to address the national skills shortage we are currently facing and future-proof the industry.
We need the young people of today to be excited and passionate about a career in the hospitality sector. We need to give them the skills and motivation to pursue a career that can take them around the world (when borders open) as a cook or server or host. We need to give them the opportunity to one day open their own cafe or restaurant.
Government should also be looking at the policies and red tape that stifle businesses and prevent economic growth. As I’ve highlighted in previous columns, now is the time for significant tax reform! All options should be on the table – from the company tax rate to payroll tax and council levies – we need a holistic look at tax reform.
If we really want Australia to Build Back Better and be resilient when future pandemics or crises occur, the federal government needs to implement the right policy measures and initiatives now.
We cannot wait for another crisis – we must learn the lessons now and make the changes.
Luke Mangan is a leading Australian restaurateur and chef he owns an operates a number venues including glass brasserie and Lukes Kitchen.
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