The past few months have seen the Association active in mapping the road to recovery to ensure that government clearly understands the measures that are essential for a strong vibrant accommodation industry post the pandemic. As an industry, we need to emerge from the crisis in a position to help build confidence in the sector, in what will be a highly competitive and disrupted tourism market. The overarching principle of our Roadmap to Recovery is the retention and wellbeing of our workforce and the sustainable opening of our hotels, to ensure we emerge a stronger and more competitive sector in the future. The Roadmap commences with a very clear message: “The extension of JobKeeper and HIGA measures until March 2021 are essential to retaining our workforce and critical to industry survival.” We have been active in communicating our agenda to Federal Treasury, the NCCC, the tourism minister and various state governments and in taking our case to the media. The industry has experienced revenue falls of -85 percent across the past four months and stimulation of future demand will only happen if governments lift current restrictions and business and consumer confidence returns. Until the
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AccomNews - Winter 2020
bars in the accommodation sector would open. The goal ultimately is to remove the capacity limit altogether! This quarter, we welcomed the announcement by the federal government on the greater flexibility permitted by Health around physical distancing, opening up to 2m2 per person Dean Long CEO, Accommodation Association
industry is free to drive demand to stem the huge cashflow losses, government support measures are crucial for short to medium term viability. Extending JobKeeper and the HIGA measures, for a further six months after September, is essential for our survival and the future employment of the 56,000 workers currently securing this benefit.
Our Roadmap to Recovery emphasises measures to lift government restrictions Key to recovery will be getting the borders open and planes flying. Removal of physical distancing restrictions is a further priority. Our recommendation to governments was that extensive hygiene and servicing measures would be put in place in combination with physical distancing measures of a maximum of 2m2 with a review after two months’ maximum. Our modelling showed that 2m2 per person becomes the point at which most restaurants and
The easing of restrictions when supported by health and hygiene measures is a common sense outcome that is vital to opening up restaurants, cafes and meeting rooms and in enhancing the destination experience. Industry research undertaken with AHS Advisory and Horwath HTL showed that once restrictions are eased an average of only 53 percent of accommodation hotels would have re-opened their Food Beverage outlets if physical distancing remained at 4m2. We welcome the proactive engagement we have had with federal and state governments on this issue and look forward to the continuing removal of restrictions to assist hotels in their recovery.
IR Reform One our stated priorities in the Association’s Roadmap to Recovery, is industrial relations reform. This is in keeping with our focus on the wellbeing and retention of employees. As recognised by the Prime Minister, industrial relations reform is necessary given the scale of the jobs challenge that the nation faces post-COVID.
INDUSTRY
The federal industrial relations minister, Christian Porter, has been tasked to map a practical reform agenda with employers, unions, and industry groups. This process will end in September 2020. The Accommodation Association is committed to actively contributing and making recommendations to the reform agenda. Working with the NABE board and HFW, we are preparing the evidence base on IR reforms that will benefit our members and their employees. Our industry is in the biggest fight for its survival, unmatched by the GFC, SARs or 9/11. Circumstances well outside our control have destroyed demand. Our Roadmap to Recovery highlights the key steps to economic recovery for our sector, from retaining employees to driving demand. In particular, we continue to emphasise the critical role of JobKeeper and the necessity of ongoing tailored support until March 2021 to guide the sector through the recovery process (given current operating losses) and the extension of the HIGA measures that have supported the retention of employees. We look forward to working with government on the next stage of recovery, aimed at ensuring the improved viability of opening hotels and outlets and bringing back staff, while continuing to recognise the need for comprehensive hygiene measures. www.accomnews.com.au
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AA REPORT
Lifting restrictions and maintaining JobKeeper essential to industry survival
