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- Australia’s two major airlines are preparing to offer discounted airfares to 13 regional holiday hotspots following a $1.2 billion federal scheme
- The scheme will see airline offer half-price tickets o destinations like the Gold Coast, Cairns, Whitsundays, Alice Springs and Broome
- However, many tourism groups say the discounted tickets are not enough and the industry will need more support
- Tourism leaders have warned around 300,000 jobs could be lost from the sector if JobKeeper is not extended beyond March
- It is important to note that none of the flights currently include capital cities which is crucial to the travel sector
- This has led to state leaders in Western Australia, Victoria, New South Wales and South Australia saying they have been short-changed in the flight deals
Australia’s two major airlines, Qantas (QAN) and Virgin, are preparing to offer an influx of discount airfares to 13 regional holiday hotspots.
The Morrison Government announced a $1.2 billion federal scheme to support the travel industry. The scheme will pay for 50 per cent of the pricing on 800,000 air tickets to destinations such as the Gold Coast, Cairns, Whitsundays, Alice Springs and Broome.
Prime Minister Scott Morison labelled the package as a ‘ticket to recovery.’ Qantas and Virgin have agreed with the scheme, saying it will put more planes in the sky and bring more jobs back into action.
The tickets will be sold directly through Qantas, Jetstar and Virgin’s websites, but further details are still being finalised, including how many fares will be available on each flight and each route.
However, will this be enough to save the travel industry?
Tourism groups say they will need more support, especially with JobKeeper ending this month — a move that could put more travel jobs on the line.
“This airline package is a good start, but it will not be enough,” said Tourism & Transport Forum (TTF) Chief Executive Margy Osmond.
The peak industry body has warned around 300,000 jobs could be lost from the sector, on top of the 500,000 full-time positions already gone due to COVID-19, if JobKeeper is not extended beyond March.
“Unfortunately for us, we don’t think it’s going to go far enough to save the jobs we had hoped to see secured at the end of March,” she added.
It is important to note that none of the flights currently include capital cities, which are crucial to the travel sector. Many capital city airports will likely be caught up in the thoroughfare and be used to get passengers to regional locations.
“The package doesn’t address at-risk tourism jobs in our cities and regions,” Australian Tourism Industry Council Executive Director Simon Westaway said.
“This package isn’t going to provide the benefit, nor directly tackle the dire predicament facing tourism enterprises and our visitor economy which is closely aligned to capital city gateways,” he added.
Western Australia, Victoria, New South Wales and South Australia only have one destination for cheap travel tickets, leading to the states believing they have been short-changed in the deals.
Acting Premier James Merlino is disappointed and says “it is not fair.”
“It’s like they are looking at the Melbourne and Sydney markets and using them as the source for markets across the rest of the country. It is not fair, and we are disappointed,” he said.
“You only have to look at the numbers. Five in Queensland, three in Tassie, two in the Northern Territory, just one in Victoria. This is not a great outcome for tourism operators, other than those who will be serviced by flights to Avalon,” he added.
The NSW Government has also complained that Queensland was getting an unfair share of the program.
Treasurer Dominic Perrottet has stated that unlike other states, NSW has always acted in the national interest and “shouldn’t be subsiding the economies of others.”
Dominic believes NSW avoided “snap border closures,” but Queensland was now being rewarded by the federal government despite not “striking the balance between protecting people and saving jobs.”
While over in Western Australia, Premier Mark McGowan says the state was “missing out” and has accused the Morrison government of “punishing” Western Australia for its border policy.
“It is very disappointing that they would ignore WA like that,” he said. “I’d urge them to ensure that this decision is changed.”
Exmouth tourism operator Sonia Bechwith has told the state and federal governments to “do your job and help us.”
After 12 months, the founder and general manager of whale shark tour company, Live Ningaloo, said her business is still in “survival mode”, like many other small tourism operations across the state.
Scott Morrison has stated the locations currently covered by the offer comprise an initial list that is likely to grow once the travel industry responds to this announcement.
