Turner: Easing restrictions a boost, but tourism sweating on open borders
The easing of restrictions would not have any real benefits for major tourism centres, or Flight Centre, until borders re-open, according to the company’s managing director Graham “Scroo” Turner.
Flight Centre's Graham "Skroo'' Turner.
The company has raised sufficient cash to keep it afloat with little revenue for 18 months but Turner said the economy could not cope for long with closed borders.
“We need the borders open to make any significant difference in tourism bookings and business travel, but some of the businesses will benefit. For example, we are involved in Spicers Retreats and that certainly will be a good boost for both here and NSW.
“It will be a bit of a mixed bag.
“For a lot of major tourist destinations it won’t make a lot of difference, but it’s better than nothing.
“One presumes the borders will have to open soon. The economy can’t stand not having them more obvious.”
Turner said he had no inside information on the bidding for Virgin Australia, but expected the company that takes over the airline may not be able to revert to being a low cost airline.
He said Qantas’s low cost carrier, Jetstar, would probably continue to have a role to play in Australia, but he expected Virgin would return as a full service model, without Tiger Air.
“Having a reasonably full service and probably short haul international carrier is pretty important and from what I hear most of the bidders will be doing that sort of thing. The key is tourism but there is also business travel and VFR travel (visiting friends and relatives) so having separate low cost and full service in the short term won’t be viable,” Turner said.
“For us and other companies like Corporate Travel Management, business travel is an important part of the mix so as long as successful bidder takes that into account we will be ok. Qantas is probably quite keen to have a reasonable competitor so I think they would be happy.
“The market is going to be down for some time and there might be an element of keeping a low cost airline in mothballs to see what happens but I think there will be a slightly modified full service model, but I honestly don’t know the answer to that.”
Flight Centre shares rose another 8 per cent this morning to $14.16.
Casino operator The Star Group said the easing of restrictions would allow for incremental changes in Queensland but in NSW the company said it would re-open its private gaming rooms and up to 12 food and beverage venues within the Sydney casino areas of the from 4pm today.
This initial re-opening will be limited to up to 500 loyalty club members on an invitation-only basis.
