Tourism asks for cashflow back-up

A peak tourism industry group has appealed to the Morrison government to give the worst ­affected businesses direct cashflow boosts in lieu of more JobKeeper payments.

The tourism industry has asked the Morrison government for direct cashflow boosts in lieu of an extension to JobKeeper. Picture: Megan Lewis

A peak tourism industry group has appealed to the Morrison government to give the worst ­affected businesses direct cashflow boosts in lieu of more JobKeeper payments, saying forward bookings were insufficient to sustain jobs once the wage subsidy scheme ends next month.

Australian Tourism Industry Council executive director Simon Westaway, whose organisation represents about 10,000 tourism operators across the country, acknowledged the government did not want to extend JobKeeper but said targeted support was still a necessity for the sector’s survival.

In a proposal put to government as recently as Friday, the tax office would pay businesses through their monthly business activity statements, with the money to be used for wages, equipment or other operations.

Mr Westaway anticipated the monthly cashflow boosts would need to be at least five-figure sums per eligible business, starting in April, which would have to show their turnover had reduced by at least 30 per cent in the December 2020 quarter compared to the same quarter in 2019.

While not being too prescriptive, a business’s eligibility could be tested monthly or the cashflow boosts could be paid as one lump sum in April.

“Industry feedback across ATIC’s membership shows forward bookings, on average, have reduced by 35 per cent (assessed over a rolling six weeks). For many tourism businesses, forward booking levels are insufficient to sustain jobs and core operations when JobKeeper ends in March,” briefing notes prepared by ATIC says.

“Timing around further support is now critical. Labour and workplace agreements require minimum four-week notice periods and business needs to cover redundancy provisions ahead of March 2021. Tourism business operational and labour decisions are being made on the assumption of no new assistance when JobKeeper concludes and is a looming deadline.

“The damage to the economy, and tourism-reliant communities, from further tourism business closures and job losses should not be underestimated over this forthcoming period.”

The Transport and Tourism Forum last week demanded a nine-month, $7.74bn wage subsidy program to replace JobKeeper. Mr Westaway said wage subsidies were the industry’s preference but cashflow boosts were the second best option.