The Adelaide-based operator claims she has seen some tough times in the tourism industry, but the coronavirus outbreak threatens to be the worst of all, pushing small businesses like hers into an “irreversible” cash crisis.
Ms Kaur said the cancellations started rolling in as soon as the governments across the world started imposing travel bans on non-citizens from mainland China and other coronavirus-affected countries.
Highlights:
- Tourism industry 'worst-hit' as people rush to cancel tickets
- Small businesses across the country are struggling to stay afloat, some claim 75% dip in revenue
- Cairns region alone has already lost $200m in bookings
“Since the first round of travel restrictions were imposed, we have lost at least 75% of our business in the past one month alone. If this continues, we will be finished and the company which has a six to seven million dollar annual turnover will be forced into liquidation,” said the 42-year-old.
‘Cancellations after cancellations’
Ms Kaur is not the only one who is feeling the pinch. The Cairns region alone has already lost $200m in bookings, and Gold Coast operators are further expecting to lose $400m, according to figures released by the state government.
Rahul Dahiya, a tour and travel operator based in Gold Coast, said his company has witnessed a 50% drop off in bookings, and he believes the worse is yet to come.
“This has been hands down the worst year for business. First, it was bushfire and now its coronavirus, the incoming tourists into the country be it business or leisure travellers have relegated to nearly nill,” said the 36-year-old who has been in the tourism industry for over a decade,' he told SBS Punjabi.
Navneet Kaur is the director of a travel and tourism company based in Adelaide. Source: Supplied
“We heavily rely on big-spending tourists from China, the Indian subcontinent and other Asian countries for our business. Now with most of these countries facing travel bans and landlocks, all we are dealing with are cancellations after cancellations.”
He added that while his company can still survive on savings for the next few months, for those lower down the food chain, the going gets tougher.
“Small mom-and-pop businesses are the ones that are bearing the brunt. For instance, those who book local tours, cruises or basically cater to the domestic market are not even getting occasional bookings,” he added.
The Queensland government has already rolled out payroll tax relief and a tourism economy stimulus package of $27 million, out of which $7 million would be injected into promoting international tourism.
Tourists at Surfers Paradise in Gold Coast. (File Photo) Source: Supplied
But Hardik Patel, a fledgling tourism operator, who is located a block away from Mr Dahiya said the promotional measures and tax relief are measures in the right direction but would not be enough to propel the industry in the long run.
“These are all good measures and will help some in dire need. But the funds and waivers are not enough and will not last for long. However, there is some respite in knowing that the government is thinking about us,” he said.
Far from Queensland, Anuj Kumar of Melbourne-based Travel Discount, said this is an “unprecedented” time for the industry and the current slump is far worse than what the industry encountered in the aftermath of the 9/11 attacks and the global financial crisis.
Screen at Sydney airport showing cancelled flights. Source: SBS
“The hit after 9/11, the GFC – they all seem dwarf in comparison to what we are seeing now. CAPA Aviation a Sydney based research organisation has predicted most airlines will go bankrupt by May this year if appropriate measures are not put in place.”
'The end of this tunnel'
Mr Kumar added that besides last-minute cancellations, what’s weighing down an already sinking industry is the uncertainty of the ongoing crisis.
“Forward bookings are at an all-time low. Even though a small percentage of travellers were willing to travel, but due to the travel bans set in place by most countries now, customers have no option but to cancel.”
The federal government unveiled an economic stimulus package last week that would facilitate the waiver of fees and charges for tourism businesses operating in the Great Barrier Reef marine park and in commonwealth national parks.
However, Mr Kumar claimed the measures are not having the desired outcome due to social distancing measures in place.
Great Barrier Reef, Quuensland. Source: Climate Council
“Keeping in mind that it’s a government directive that is affecting businesses, all small businesses should be given a three-month payroll and rent break, funded by the federal government, to tide over the situation. The big companies can weather it out by simple cost-cutting measures, but small businesses may not be around at the end of this tunnel,” he added.
