How is Australia’s travel and tourism sector currently positioned?

Jan 07, 2022

Australia’s Travel and tourism sectors are abundant with exclusive experiences and overwhelming landscapes. The travel sector is one of the most crucial sectors in Australia, accounting for 10% of GDP. Australia is one of the top places to visit on vacation as it is on the wish list of people worldwide. Every year the industry is booming and growing.

The travel and tourism sector was the first sector impacted by COVID. To date, it hasn't recovered; the recovery remains reliant and uncertain on many factors, from the ongoing COVID situation to economic conditions. According to the Australian Tourism Industry Council deputy chairman, the journey of tourism operators across the world is devastating.

The business revenue is down by 90 % from pre-COVID for a travel Management Company in Sydney. Borders are open, but it is difficult for many people to move across the borders because of the vaccination process and test results' delays, making them impossible to travel.

Australia is having their peak holidays going on. They are desperate to travel; Australians hope to reopen the state and territory, but authorities have closed the borders again because of the new COVID variant Omicron. The significant challenge remains as travel restrictions may ease, but the recovery will depend on consumers to undertake travel. To balance the pre-pandemic level of international visitors, people need to take 12 overnight domestic trips, which is equivalent to one international visitor.

Australia Tourism is working to ensure that travellers have a safe journey in the future. The next few months will be challenging for the industry, and the road to betterment for the industry will be bumpy.

Right now, it's impossible to predict what and how the travel and tourism sector will look like in the future as due to the new variant, the Tourism industry has paused on reopening of international borders. The government is working on new trends and attractive policies to attract more people.

In one of its reports, Deloitte highlighted that Australia's tourism sector contributes a significant amount to the economy. In 2020 Australia lost almost $80 million in tourism revenue. However, due to the increase in the vaccination rate during 2021, Australia's tourism and hotel industries have started moving towards recovery. However, amid the concerns related to the new omicron variant, there has again been another layer of uncertainty with respect to recovery in tourism in the coming days.

Travel Guidelines in Australia

Amid the existing COVID-19 environment, Australia is reopening to vaccinated travellers from Japan and the Republic of Korea. All vaccinated citizens and permanent residents can travel in and out of the country. Any arrivals to Australia need a negative COVID-19 Polymerase Chain Reaction within three days of travel. They should also complete Australian traveller declaration forms stating their vaccination status and confirming that they know the state & territory public health needs.

Based on the high vaccination rate and boosters, the country is well-positioned to deal with any upcoming challenge like Omicron.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Suite 1A, Level 2, 802-808 Pacific Highway, Gordon NSW 2072, Australia | 1800 005 780 | info@kapitales.com.au