A third are in big trouble

ONE in three tourism businesses are “facing extinction” within the next three months, according to new figures released by the Tourism & Transport Forum (TTF).

The organisation commissioned a survey of 500 businesses via Newgate Research which painted a bleak picture of the road ahead for the tourism sector despite the prospect of tourism commencing in early 2022, with four in ten tourism exposed businesses feeling things will get worse over the next three months.

Perhaps of most concern was the finding that 20% of tourism companies are planning to hibernate over the next three months to survive, while 10% said they are planning to sell up shop altogether.

The data also found that a third believe the outlook for their business will be very grim for at least the next 12 months, forcing the majority of operations (71%) to explore additional cost-cutting initiatives to try and open up new revenue streams to stay afloat.

Close to 70% of respondents noted they are now examining the prospect of cutting staff hours, while 62% said they are looking at scaling down over the next three months.

“Tourism businesses have made it clear that as other sectors recover, they still foresee a challenging period ahead not only in the short term but for the next year or more,” TTF CEO Margy Osmond said.

“It’s not like we are expecting an ‘open sesame’ moment where everything returns to normal... as long as Australians feel they are at the mercy of policy-makers playing border roulette.”

Osmond added that a combo of increased air routes and targeted support packages are needed for the tourism sector to survive.