Big Red Group CEO calls for long-term regional tourism strategy as REX questions linger

Off the back of news that the Federal Government will take on Rex Airlines’ $50 million debt, travel industry figures are worried about the longevity of the plan and its knock-on impacts.

Australian Government takes over $50m REX debt

David Anderson, CEO of Australia’s largest experience network, Big Red Group, has highlighted the pressing need for a more permanent strategy to secure the future of regional tourism.

“While the Federal Government’s latest lifeline for embattled airline, Rex Airlines’ certainly shows its intention to safeguard regional connectivity – there needs to be a long-term play at work,” Anderson said.

“As it stands, these routes are only protected until mid-2025, after which they are cast into uncertainty again – particularly if no buyer comes to the table.”

Rex Airlines entered voluntary administration in July 2024, triggering a ripple effect across the tourism industry.

“The uncertainty has had a significant effect on the wider industry as a whole. Since the company entered voluntary administration, costs for travellers have skyrocketed resulting in considerable knock-on effects for regional tourism and experience operators. This has led to fewer travellers visiting regional and remote destinations, with exorbitant costs forcing travellers to look toward destinations that are ultimately cheaper to travel to and offer more value for money.”

Anderson said the government must commit to a clearer roadmap to support the regional tourism sector.

“It is clear the tourism industry is nearing a critical juncture where the economic survival of many hard-working tourism operators depends on regional connectivity and services of Rex Airlines, whose future remains up in the air. We’d love to see a clear plan to support regional communities, protect businesses, and sustain tourism in regional Australia”

While the government’s intervention provides a short-term safeguard, stakeholders continue to push for structural reforms to ensure regional travel remains accessible and affordable beyond 2025.