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Accommodation Association says latest stimulus package misses the mark

Many hotels could be forced to close during the Coronavirus due to complete lack of demand

The Accommodation Association CEO, Dean Long, says the latest stimulus package from the Australian Government “fails to recognise tourism demand has stopped” and more needs to be done to help an industry in danger of completely shutting down.

Long says the Australian Government stimulus announced yesterday (Mar 22) – together with the cancellation of non-essential travel and enforced government structural changes – has effectively “eliminated over 90% of tourism accommodation demand”.

“The harsh reality is that consecutive announcements – closure of borders, grounding of flights and cruise ships, self-isolation and now cancellation of non-essential travel together with closure of restaurants and bars – while necessary for health reasons, have killed all demand,” he says.

“Hotels Australia-wide are reporting occupancies of below 10% and are now looking to close their doors.

“A payment of $100,000 across this and next financial year will do little to protect the 86,100 jobs in an industry facing pandemic isolation measures that have effectively stopped travel. With no demand, a measure that is capped, will do little to alleviate the inevitably of labour reductions.

“With the announcement that the measures are in place for the next 6 months and will potentially escalate, Government needs to act now to ensure the tourism accommodation industry retains jobs and has a future,” Long says.

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