how reopening to tourists will save the Australian economy

Australia’s opening up

According to the Australian Government, the reopening of international flights will bring certainty to the vital tourism industry. The pandemic has hit the sector hardest with two years of travel disruptions and border closures. Altogether, this led to a lack of labour and a decrease in customers.

Margy Osmond, Tourism and Transport Forum CEO, is thrilled by the opening. However, she reckons there needs to be some form of coordination to make sure that Australia stays competitive as a travel destination. Time will tell but if Tourism Australia’s A$40 million “Don’t Go Small. Go Australia” campaign is anything to go by, we’re off to a good start.

One thing’s for certain the end of the tourism ban will undoubtedly heal staff shortages, revive migration and more importantly, inject billions of dollars into the world’s No.13 largest economy.

rebuilding an economy in disrepair

After a loss of A$101.7 billion in international and domestic tourism, we can only hope that the reopening will bring about a significant boost to the tourism industry, and the Australian economy. Moreover, Australian small businesses that have relied heavily on international tourists and students will also receive benefits.

Some examples of businesses that are looking forward to fully recovering from the pandemic are a Monash University-based café owned by Flora Lu whose business has been struggling with customers since the lockdowns, not to mention businesses around Chinatown that haven’t been doing well because up to 80% of their business comes from international visitors and students. Also, CEOs at CSL and Treasury Wine Estates are very optimistic and confident in seeing an improvement in Australia’s economic outlook this year.

Leading economist and Deloitte partner Chris Richardson adds, “The world is far better prepared for this than it was two years ago. So, while this is a hurdle in our recovery, it won’t be a complete roadblock.” He is optimistic that the combination of being vaccinated, better ability to juggle lockdowns, and being cashed up from not spending money during the pandemic signifies resilience and recovery. This year, he is expecting a 6.4% rise in household spending and a 5.2% increase in business investments. This could be right on the money with the international borders opening today.

welcome back travellers

But won’t international tourism make the whole Covid-19 situation worse, you ask? For this reason Australia has put requirements in place and only fully vaccinated individuals (or those with medical exemptions/arrangements for children) are allowed to enter without the need to quarantine.

“We’ve been very careful looking at the impact, particularly when Omicron hit, and how that would flow through,” Prime Minister Scott Morrison said in an interview with 7news. He further added, “but the fact is here in Australia, the variant is here. And for those who are coming in, who are double vaccinated they don’t present any greater risk than those who are already here in Australia.” Additionally, Harvard Medical School professor, Dr Stefanos Kales shares a similar sentiment. He states that “we badly need to allow the general public, particularly the young to get back to normal life.”

For more information about travelling in and out of Australia, you may visit the Department of Home Affairs.

opportunity for SMEs

With a huge flow of tourists is coming back; you might need a stable cashflow to ensure the business will be able to meet the new demand. Whether you need cash to buy materials, inventory, paying staff or buying new equipment, thornmoney can help!

Thornmoney provides business line of credit (also known as invoice finance) solutions. The product suite allows you to turn unpaid invoices into fast funds within 24 hours from approval. With no lock-in contract, it is as simple as connecting your accounting software with our platform. To get more details about this funding option, read “What is invoice finance?“

If you’re upgrading your fleet or business equipment, our asset finance products might be your answer. Our loans are available with tailored rates for your business and various payment terms up to 5 years. The options include chattel mortgages and rental agreements. To know more about the product, read “What is asset finance?“

Besides, we also offer funds for newer businesses as long as one of the directors has at least 2 years of experience in a related industry.