Coronavirus: Premiers’ $3bn blow to tourism industry and aviation

Tourism spending over the holiday break will almost halve because of border restrictions states imposed on NSW, the tourism and aviation industries have warned.

A quiet Bondi Beach in Sydney eastern suburbs on Wednesday. Picture: Getty Images

Tourism spending over the holiday break will almost halve because of border restrictions states imposed on NSW in response to the northern beaches COVID-19 outbreak, the tourism and aviation industries have warned.

Between Thursday and January 11, Australians are expected to spend $2.98bn less than the annual average of about $5.5bn, as families put off holiday plans and airlines cancel dozens of flights a day in response to travel restrictions.

The modelling was compiled by economic consultants at Stafford Strategy and commissioned by the Tourism and Transport Forum, which represents the country’s major hotel chains, airlines and tourist attractions.

The forum’s chief executive, Margy Osmond, said border restrictions meant the Morrison government would need to “think very seriously about something that looks and sounds like an extension of JobKeeper” for the industry.

Annastacia Palaszczuk. Picture: Steve Pohlner

Border closures have prompted a worsening stoush between Gladys Berejiklian and Annastacia Palaszczuk after the NSW Premier on Tuesday accused other state leaders of causing unnecessary “suffering” by slamming borders shut despite the low number of new coronavirus cases linked to the northern beaches cluster.

On Wednesday, the Queensland Premier said it was “a bit rich” for Ms Berejiklian to blame Queensland and Victoria for the border closures. “If there hadn’t been the cluster outbreak in the northern beaches, no one would have had to take these measures and everybody would have been seeing their family and friends,” Ms Palaszczuk said.

She added that her state didn’t want “lifestyle compromised”.

“If we had community transmission like they’ve got in Sydney, that could have broader implications across our tourism sector,” she said. “I don’t want to see the Gold Coast, Cairns or the Whitsundays go into lockdowns that we are seeing in other parts of the world.”

There were eight new locally acquired cases recorded in NSW in the 24 hours to 8pm on Tuesday. Health authorities eased restrictions in the southern half of the northern beaches, allowing people to leave home to visit the homes of others who lived in the zone.

Despite the lower infection numbers, Queensland and the ACT have indicated there will be no change to their border restrictions until after New Year’s Eve.

Victoria’s coronavirus program commander, Jeroen Weimar, said the state would remain shut to Sydneysiders for Christmas, but would not comment on whether those arrangements could change ahead of New Year’s celebrations.

Ms Osmond said the tourism industry was “clearly going to need ongoing support”. “It can’t recover without the return of international travel and can’t survive without domestic travel clarity,” she said.

“There may not be a tourism industry in 12 months’ time.”

Ms Osmond said governments could not allow “this situation of a complete lack of consistency between the states in terms of border closures” to continue.

Gladys Berejiklian and NSW Health Minister Brad Hazzard. Picture: Gaye Gerard

“There is no certainty and lack of certainty will devastate the industry,” she said. “If we don’t have uniform triggers so industry can recognise that a particular thing will equal a particular result, how will industry prepare … we have to learn to manage the risk.”

The border stoush has forced Qantas, Jetstar and Virgin Australia to cancel hundreds of flights. About half of Jetstar’s cancellations, which begin from December 24 and run to at least January 8, were between Sydney and Queensland leisure destinations including the Whitsundays and the Gold Coast.

Tourism Minister Dan Tehan said it was crucial that domestic borders be reopened as soon as possible. The impact of COVID-19 on tourism had been significant, he said.

“It continues to suffer as a result of a lack of international tourists,” he said. “We need to be doing everything we can to support domestic tourism …”

Australian Industry Group chief executive Innes Willox said states that had rushed to close their borders to Australia’s biggest state were “looking more like they resorted to panic or cheap politics or both as each day passes and NSW’s tracing and testing system demonstrates its value … the sooner they come to their senses and reopen their borders the better for us all”.

Queensland Police said they had turned around more than 100 people who were illegally attempting to enter the state from coronavirus hotspots.

Victoria has also closed its border to Sydney and the central coast, while Western Australia is not allowing any NSW residents into the state.