John Alexander (Bennelong, Liberal Party) Share this | Hansard source

Thank you to my colleague, the member for Adelaide, for raising this issue. We've all heard so many times about the effect COVID has had on our economy. Unemployment soared through 2020, and service industries ground to a halt. The government had to mobilise, and through schemes like JobKeeper and JobSeeker we were able to shift rapidly and keep most people's heads above water. Almost a year on, we're finally seeing the effect these reforms had. After just a few months, growth is bouncing back, unemployment has turned the corner and, notwithstanding the handful of quick lock downs like we're seeing in Victoria right now, life seems to be returning to a form of normal—a new normal. Economic data released recently shows the economy rebounding across most sectors. Shopping is back up to where it was, as are hospitality visits and other sectors. But one sector remains in the doldrums: the travel industry.

Of course, it stands to reason: borders are closed for our safety, and the lack of international travel has been one of the things that has kept Australia as one of the healthiest in the world last year, but the follow-on effects are pretty grim for the travel industry. Bennelong has self-travel agents, and I've spoken to many of them in recent months. It is clear that 2020 has been the toughest year that they have ever faced. I've heard stories of the pain of individuals working in the industry, uncertain about how long they may have a job. I have heard from small-business owners expressing their frustration and concerns for their staff. I've heard from businesses down the line who support the travel industry in various ways and have seen their biggest customers dry up.

Many have pointed out one of the unique paradoxes of the travel industry: while airlines are huge companies, many with international or government backing, over 70 per cent of travel agents are small businesses and franchises. They don't have the capacity to absorb shocks, so the crisis has gone to the heart of their small family businesses. This pain has travelled down through the industry to its customers, and plenty have felt the pain in the hip pockets over the holidays which have been planned and then cancelled. Many of these people have lost large amounts of money and received huge inconveniences that we must find ways to address. However, their particular plight is not the matter at hand here. Frankly, it deserves a debate all of its own.

Thankfully, the government has brought in specific reforms to address the unique concerns felt by the travel industry. At the beginning of December the government announced the COVID-19 Consumer Travel Support Program. This $128 million set of grants allows travel agents to claim between $1,500 and $100,000 to ensure they continue to operate. Nearly half of this allocation has already been spent, but I would encourage any travel agent in trouble to look at this scheme.

Additional to these bandaid solutions, we're also investing in our regional tourism offerings to encourage people who would otherwise be going overseas to travel domestically. Millions of dollars have gone to Tourism Australia, national parks, the Recovery for Regional Tourism Fund and, of course, support for the airlines. Together this will help domestic tourism get back on its feet, which will in turn provide the demand that travel agents need to survive.

So it is clear that, while there are huge amounts of pain in the industry, the government is moving to help those who are needing it and has recognised the unequal nature of the economic recovery. I'm confident that we will retain this flexible approach through the coming year so that we can adapt to any further systemic shocks that this chaotic and adaptive virus may bring. Most importantly, I look forward to a time in the near future when we can all get vaccinated and get back to travelling as we did before 2020. While support grants will keep businesses above water, nothing will be as good as businesses working as they are designed to do and getting us back out to see the world—and getting the world to come and see us.

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