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Holiday hell: $6 billion hit for tourism as most of eastern seaboard shuts down

The Greater Sydney two-week lockdown covering the entire NSW school holidays is expected to cost Australia’s struggling tourism industry more than $6 billion.

Jun 28, 2021, updated Jun 28, 2021
NSW Premier Gladys Berejiklian. (AAP Image/Joel Carrett)

NSW Premier Gladys Berejiklian. (AAP Image/Joel Carrett)

 

The Tourism and Transport Forum says the industry will struggle to survive more lockdowns, imploring the federal government to consider subsidies and urgently boost vaccine rollout rates.

Sydney’s CBD is a virtual ghost town after all but essential workers were ordered to work from home once again after infections numbers rose on the weekend and Premier Gladys Berejiklian warned it will get worse before it gets better.

“Given how contagious this strain of the virus is, we do anticipate that in the next few days case numbers are likely to increase even beyond what we’ve seen today, because we are seeing that people in isolation, unfortunately, will have already transmitted it to all of their household contacts,” she said.

The state recorded 30 new locally acquired virus cases in the 24 hours to 8pm on Saturday after Greater Sydney, Central Coast, Blue Mountains, Wollongong and Shellharbour went into lockdown.

The last time the state recorded that many cases in a day was in December during the northern beaches outbreak.

The number of infections linked to the so-called Bondi cluster, which involves the Delta variant of the virus, reached 110 over the weekend.

The Tourism Forum  estimates the latest COVID-19 outbreak and the border restrictions imposed on Sydney and NSW residents will devastate the mid-year school holiday period for travel-related firms, with spending predicted to be down by $6.3 billion nationally.

Forum chief Margy Osmond says NSW’s tourism sector will lose business worth $2.1 billion – or $153 million a day – almost one third of the total losses predicted nationally for the holiday period.

It’s the third school holidays in a row that a COVID outbreak had forced a lockdown in a capital city.

“While health remains the number one priority in the management of COVID-19 … I’m not sure how much longer we can survive while this lack of certainty continues,” Ms Osmond said on Monday.

The latest outbreak was proof of how important it was for the vaccination program to be fast-tracked, Osmond said.

“The tourism industry continues to suffer from a lack of international travel and the lack of confidence among Australians in the domestic travel market and in planning holidays is diabolical, making it very difficult for businesses in our sector to stay afloat,” Ms Osmond said.

TTF data showed that in the equivalent 2019 school holidays more than 1.7 million Australians travelled domestically but it’s predicted the Sydney lockdown will see that number drop by 73 per cent – to about 460,000 travellers.

Australia now has outbreaks in NSW, Western Australia and Queensland and the Northern Territory causing lockdowns, tightened restrictions and border closures.

This situation confirmed the federal government’s decision to end the Jobkeeper wage subsidy – particularly for the tourism industry – in March “was somewhat short-sighted”, Ms Osmond said.

“They will now need to look very seriously at some other form of ongoing support for the tourism sector to ensure we come out the other side of the pandemic.,” she said.

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