AFTA lobbies for $125m travel agent support package
The Australian Federation of Travel Agents (AFTA) has called on the federal government to provide a travel agent support package of $125 million, as well as a range of business relief measures.
In its pre-Budget submission to Canberra, AFTA said it had highlighted the plight of travel agents, tour operators and wholesalers who are among the worst-hit of Australian businesses.
Some tourism operators, according to the federation, have faced revenue drops of more than 90 per cent, with little sign of real recovery without the resumption of international travel.
Yet despite such a drastic fall in economic activity, their services remain in demand: an estimated $4 billion worth of bookings are still to be processed on consumers’ behalf, along with funds yet to be returned to Australians.
“This is a critical time for our sector and unless we all work together. There are many businesses which will not survive,” AFTA chief executive Darren Rudd said.
“We don’t want that to happen. This is a sector which has spent generations helping Australians get overseas for commerce and culture, family and friends reunions and now it’s time for our society to help them in return and by doing so help restart our economy.”
AFTA has asked the federal government to provide a range of support initiatives to ensure the sector’s survival, the most significant of which include:
- Scaled ‘back to business grants’ forecast to be an average $40,000 based on total transaction value in FY19 to assist them to stay in business, cover some operational costs, continue the work of both returning refunds to customers and assisting travellers in 2021 and beyond.
- ‘Back in business’ concessional loans of up to $100,000 per agency outlet to sustain business and service to travellers, delivered through commercial banks, backed up by a three-year Commonwealth guarantee. AFTA said loans of this size will enable viable businesses to endure the COVID-19 related downturn and slow return to profitability.
- The critical need to get Australians travelling again through the establishment of travel ‘bubbles’ and through government promoting the purchase of travel through Australian-owned travel businesses.
Meanwhile, AFTA’s electorate program continues to show results, with Member for Warringah Zali Steggall shining a light on the unique challenges facing travel agents in Federal Parliament.
According to the federation, Steggall met with Mosman travel agencies in mid-August to discuss the need for ongoing tailored support from government.
“There are some businesses that, even with this extended lifeline, will struggle to survive, and I urge the government to consider targeted interventions to support those faced with near-complete shutdowns, such as travel agents and those in the events, arts and entertainment sectors,” Steggall told the House of Representatives last week.
“I must also mention that we need some industry-specific packages, especially when it comes to the travel industry. They’ve been devastated by border closures both international and domestic.
“We’ve had a lot of attention on airlines. Travel agents have received less attention from the media but their situation is arguably more acute. They’re continuing to work to secure refunds for their customers but that doesn’t bring them any income.
“I’ve met with many travel agents, including the CEO of the Australian Federation of Travel Agents. They really need a sector-specific recovery package. They were the first to shut down and, undoubtedly, they will be the last to reopen.
“On top of having a vaccine, we must develop a sustainable way of operating in a COVID-safe way in the future. For industries like travel, events, entertainment and many in the arts, this is more than a recession; this is a near 100 per cent shutdown of their business. So we must find plans,” she said.
Rudd has now coordinated nine visits to local MPs and provided the opportunity for 26 travel agents to share their stories directly with political influencers.
Member for Wentworth David Sharma singled out travel agents in the House of Representatives last Monday, saying he had recently visited a number of agencies in his own electorate in Sydney.
“Some have never been as busy, but it is in processing refunds. When they have processed the refunds, they have also had to return the commissions they earned from these sales,” he told Parliament.
“These businesses have benefited from JobKeeper, but in many respects, it has never been tougher for them. They have many of the same costs, but their cash flow is often negative because they have no new bookings coming through the door.”
Featured image source: iStock/mikulas1
Email the Travel Weekly team at traveldesk@travelweekly.com.au
afta Darren Rudd David Sharma domestic travel Zali SteggallLatest News
Hapag-Llyod Cruises announces a chance to win an exclusive 18-day cruise
You'll need to pack your thermals for this one. Is Greenland the icy one and is Iceland the green one? We forget.
dnata Catering & Retail expands Melbourne Airport facility
25 million meals, that's a lot of breadrolls and would you like the chicken or the beef with that?
Perth tops Australian hotel occupancy in 2024, WA regions see surges over 10%
We've long been fans of the west and it's news like this that has us thinking about another trip.
Uncertain future for The Star hospitality venues if casino operator goes bust
There will be more than gold stars on the yearly report of the accountant who can get them out of this mess.
Tour operators given under two years to ensure all new buses are equipped with seatbelts
Incredible that protocols like this haven't been in place for years, but we are now moving in the right direction.
Journey Beyond launches ‘The Ghan Experience’
We'll be checking the experience out with our own eyes tomorrow, stay tuned for the video review!
Disneyland Paris set for AU$3bn+ expansion
With the amount of money being spent, we're expecting a seamless experience when lining up in the Paris heat.
REVIEW: Our family Anthem? Dad, please make the next cruise a longer one
Despite its size and scale, there are always pockets of serenity and enjoyable downtime to be had on Anthem.
Collette’s new agent incentive taking winners to the Swiss Alps and Italy’s Prosecco region
Plenty of agent incentives to kick off the year, but this 12-day jaunt might just take the glass of sparkling.
Warrawong on the Darling welcomes guests with pets
Yes all will be fine, and enjoy the serenity, that is until your fur baby hears the words 'Possum!' or 'Lizard!'.
NSW Tourism Association welcomes former tourism minister as new chair
There are some heavy hitters in this roll-call of travel professionals. Let's see what they can do for the state.
Virgin Australia triples number of reward seats between Sydney, Brisbane and Perth to Doha
What came first, the chicken or the egg? Or in this case, Qantas' 72 hour flash sale or more VA's Frequent Flyer seats.
One million discounted seats on offer as Qantas puts 100 domestic routes on sale for 72 hours
There's nothing we love more than a 72-hour flash sale, apart from maybe a 96-hour sale, but let's not be picky,
THE YEAR AHEAD: Brett Jardine, Council of Australian Tour Operators
Put a ring on it, goes the lyric, just like a lemur's tail at Brett's honeymoon destination of Madagascar.
Atlas Ocean Voyages announces special President’s Cruise
We are pretty sure this cruise will not include the presence of the new US president.
Wendy Wu Tours announces three new cruise itineraries
We are 100 per cent sure Wendy Wu would have checked out these river cruise and tour itineraries herself.
European Waterways expands its fleet with the Shannon Princess
You just need to choose nine of your closest friends to book this one out. Oh, and the better half! Make that eight.
Fiji hits the magic million mark for visitors in record year
It was a big hill to climb but going from almost zero during the pandemic to 1M is a huge accomplishment.
Virgin Australia rejects ‘unsubstantiated assertion’ that it turned a blind eye to staff safety risks
Young staff need to be protected, but trawling their social media profiles smells of shaming to us.
Regent Seven Seas Cruises elevates onboard entertainment
We expect Tina Turner songs like What's Love Got To Do With It, not the Beyond Thunderdome version of Tina.
Holland America Line welcomes two celebrated chefs onboard Grand Voyages
Worried that you'll be bored eating the same thing on a 100 plus-day cruise? Not with Holland America you won't!
AmaWaterways adds complimentary land packages on hundreds of sailings
And clients can use these added extras by combining them with them with loyalty schemes. Bonus!
Hong Kong Airlines celebrates resumed service to the Gold Coast
We've said it before and we've said it again, we'll never get bored of happy 'resume' service stories
Intrepid Travel launches exclusive culinary journey
Visitors should expect to come back with a brain full of food knowledge, as well as a belly full of produce.
Webjet & Experience Gold Coast partner to offer $50 off flights to OOL
Just what Sydneysiders need to escape the run of bad weather and Melburnians to escape the tennis.
THE YEAR AHEAD: Joel Katz, Cruise Lines International Association Australasia
With record numbers last year, read all about what Joel is planning for a bumper cruise year in 2025.
Singapore Tourism Board partners with Komodo for TikTok travel mini-series
We don't know who a lot of these people are, but this sounds like a pretty creative idea!
Bunnik Tours launches its ‘Hot Deals’ sale
Head off the beaten track with Bunnik and you never know, Dennis or his mum might be on the trip too?
First set of Qantas engineering apprentices arrive at Brisbane training facility
Qantas will be hoping to keep the claws of unions like the TWU away from this group of fresh faced engineers.
CATO Touring Academy doubles achievements
The Council of Australian Tour Operators (CATO) Touring Academy has surpassed all expectations, with over 1,000 enrolments, 11,000 course completions, and more than 600 agents earning their CATO Touring Certification since its mid-2024 launch. As the travel industry gears up for another dynamic year, the CATO Touring Academy is empowering travel professionals to elevate their […]
Explore remote Antarctica by ship and helicopter this year with Quark
A helicopter ride over some of the most incredible parts of the planet sounds like a dream. With Quark, it's a reality.
Sapporo to become Qantas’ 100th destination with arrival of new direct flights to Chitose Airport
Just in case there aren't enough Australians going skiing in Japan...
Mat McLachlan Battlefield Tours advises final call for Anzac Day 2025
Mat McLachlan Battlefield Tours has advised that the final call for Anzac Day 2025 is on 31 January 2025 with pre-registration also available for Anzac Day 2026. Travellers are encouraged to book their spot for either the 10-day Anzac Day on the Western Front departing on 19 April from Paris or the 8-day Anzac Day […]
Two destinations to visit in Mexico for Valentine’s Day
Valentine’s Day is quickly approaching and here are two romantic getaway destinations in Mexico to make any traveller’s day with their special someone even better. Casona Roma Norte, Mexico City This Valentine’s Day is the perfect time to visit Mexico City, as the streets come alive with roses, heartfelt gifts, and the city basks in […]
Emirates debuts new uniform for Premium and VIP Passenger Services team
Coming soon to a flight near you!
Exclusive: Infinity Holidays redundancies after API hotel business shutdown
Christmas seems a common time for these things to happen. Time to start the new year afresh!