| 27 May 2024, Monday |

Australia reveals $928 million stimulus package for tourism

The Australian government revealed a $928 million tourism support package on Thursday.

The stimulus aimed at boosting local travel while international routes remain closed because of the coronavirus pandemic.

It will allocated to subsidize airline ticket for travelers, cheap loans to small tour companies and financial aid for the country’s two largest airlines is designed to keep the critical sector ticking over until foreign tourists return.

“This package will take more tourists to our hotels and cafes, taking tours and exploring our backyard,” Morrison told reporters in Sydney.

“That means more jobs and investment for the tourism and aviation sectors as Australia heads towards winning our fight against COVID-19 and the restrictions that have hurt so many businesses.”

Tourism is a major growth driver for the Australian economy, generating $5.2 million in gross domestic product (GDP) in 2018/19 and employing around 5 percent of the country’s workforce.

The sector was hard hit when Australia closed its international borders – with a few exceptions for returning nationals and some others – a year ago to prevent the spread of COVID-19.

The country’s two major airlines, Qantas Airways Ltd and Virgin Australia, slashed flights and put planes into hibernation while thousands of people across the industry became reliant on a federal government wage subsidy programme, which expires this month.

The support package includes A$200 million for Qantas Airways Ltd and Virgin Australia from April to October to help maintaining mothballed aircraft, bringing planes out of storage and wages for international flying staff.

“This program allows those people to stay connected with Qantas so we don’t lose them, because when the borders open up, we need the capability to start as many flights as possible,” Qantas Chief Executive Alan Joyce said.

Qantas hopes to resume some international flights by the end of October, when Australia expects to complete its national COVID-19 immunization drive. Morrison said it was “too early” to confirm a projected date for the international border to reopen.


  • Reuters