Industry reacts to Virgin Australia downfall
Big tourism news this week as Virgin Australia heads into voluntary administration, flailing under the economic effects of COVID-19.
The tourism industry has been guessing how the aviation sector will cope, but reality has now hit home… We are in unchartered waters now faced with the stark possibility of a domestic travel monopoly.
Australian Tourism Industry Council (ATIC) Executive Director Simon Westaway said the downfall of Virgin Australia “represents a further significant challenge for Australian tourism facing off against the already massive impacts of the COVID-19 pandemic and previously the summer bushfire crisis.
“This is also a historic but also difficult moment for Australian aviation and for thousands of airline personnel and many associated businesses that will be severely impacted. Those obviously also include in tourism.
“These are the most challenging of times. The uncertainty around what level of future lost volume of flights and seat capacity that came from a second airline group is obvious in its negative impact.”
The loss of one of our two national airlines would be a disaster for the already struggling Accom sector warned Tourism Accommodation Australia (TAA).
TAA, CEO Michael Johnson, said: “Domestic tourism would be the quickest road to recovery post COVID-19 and the two national airlines would be needed.
“Initially, as we eventually move out of the COVID-19 crisis, the hotel sector will be heavily reliant on domestic tourism, with international borders expected to be closed for many months,” Mr Johnson said.
“There are very real fears an airline monopoly would take away the competitive edge needed to ensure corporate, conference and leisure guests are well catered for in our key recovery markets.
“Accommodation hotels in regional destinations in particular such as Cairns are heavily reliant on both Virgin and QANTAS and the existing competition between both. The last thing they need is for a national carrier to collapse.
“All accommodation hotels have been hard hit by the impacts of COVID-19 with in excess of 300 closing across Australia in the last few weeks alone.
“We need to do all we can to ensure we don’t take another hit with a loss of a national airline like Virgin.”
The Australian Tourism Export Council (the industry body representing Australia’s $44 billion tourism export sector) agree that a diverse airline capacity will be critical to Australian tourism’s future
“Australia needs a diverse, competitive and sustainable airline environment in order to return tourism to its successful place in the Australian economy.
“The entire tourism industry has ground to a halt and that’s affected close to 1 million industry jobs across Australia, many in regional communities,” ATEC Managing Director Peter Shelley said.
“While international visitor arrivals are some time away, the industry is holding its breath and waiting for the day Australian’s can start to travel domestically. Without affordable and accessible domestic air routes tourism’s hopes for recovery will be bleak.
“Domestic and international tourism combined delivered $146B to the economy last year and the loss of one of our major airlines will have catastrophic flow-on impacts that will ultimately also see our international capacity damaged.”
“After bushfires, floods and a pandemic, Australian tourism needs a break. To be hit with another huge setback will severely impact the industry’s road to recovery, especially for regional Australia where air access is the lifeblood of the tourism industry.”
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