ManagementOpinionTourism

Biggest challenge in living memory. A message from Dean Long, CEO of the Accommodation Association

The tourism accommodation sector is currently facing its biggest challenge in living memory.  

Our resilience has been tested in the past but the current challenge has the potential to close our industry.

Hotels facing occupancies of 10 percent or less across the country, will have no other recourse but to close their doors.  We understand the importance of protecting everyone’s health, but the harsh reality is that there is no longer any demand and therefore no work for most of our industry.

The sector is a major employer with 86,100 people directly employed. As a large employer we greatly value our employees and want to ensure that when the industry rebounds they are there to drive even greater growth.

The Accommodation Association modelling shows that the impact on jobs is significant, with 50,000 jobs likely to be lost across Australia within the next 90 days if there is not immediate government action.

At this time, the accommodation sector has united to recommend the following immediate fiscal measure, required to sustain the $6.74 billion dollar industry and support employment.

The Association has advocated with the federal government that 50 percent of all PAYG receipts for the year be tax free.  This provides a direct impact on the budget of $700 million.

This will ensure the sector is in a position to keep the doors open and that we are in a position to retain as many employees as possible through this difficult period.

The tourism accommodation sector has a strong future but we need government to act today to support the sustainability of the sector.

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Dean Long

Dean Long is CEO of the Accommodation Association

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4 Comments

  1. Can someone please petition the government to allow Motels to get an interest free loan the same as the farmers get. I am in a part of NSW that has been crippled by drought, but no funding available for me, then the bushfires, no funding again, and now this virus and the funding involves Tax relief. I am an 11 room family run Motel. We have no cash reserves as the past 2 disasters have cleaned us out and now we have ZERO cash flow. We still have around $18000 worth of bills every month whether full or empty. Our lease payments do not stop. I do not want a handout I just want to borrow money under the same conditions as the farmers so we can ride this thing out.

  2. Hi
    I,m a owner of a small 9 room motel in a rural part of Victoria. As of next week I’m empty, can we get exemption from paying rent to our landlords as I don’t want to be evicted and the stimulus packages so far do nothing for us really small businesses.

    1. Hi Andrea
      We are in the same situation. No bookings, but still have to pay rent and outgoings. Wish someone could tell the landlords to stop pushing us.

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