Three green shoots gleaming in the Australian travel industry

Australia has seen its fair share of positive data in the months leading up to the new year. The economy has bounced back amidst favourable labour market conditions and an equally promising purview of consumer sentiment. However, there is much more uncertainty in the new year as the new Omicron variant gradually takes shape across the country.

Although the economy has been exhibiting signs of strength, the Australian travel industry is yet to regain its lost ground. This is largely due to the uncertain circumstances shaping the travel sector. With border restrictions and related concerns looming in the economy, the travel sector is once again caught in many roadblocks. However, things may turn out better for the travel sector as the new year advances, with the gradual easing of international travel restrictions.

Here are some factors that are pointing towards a recovery of the travel sector in the coming months:

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Overseas borders to open in February

In a significant development, Australia has now planned to reopen its international border to tourists starting 21 February 2022. Prime Minister Scott Morrison initially hinted at restrictions being removed fully before Easter prior to this massive announcement of sooner border reopening. The country is relaxing its overseas travel restrictions for the first time in two years for vaccinated tourists and other visa holders.

However, one cannot neglect that a very cautious stance is needed to approach the border reopening, given the new virus strain can spread quickly.

For Australia, restrictions have been comparatively higher than in other countries during the pandemic. This has urged many protesters to raise their voices against the issue. Nevertheless, things may change for the better as vaccinated travellers will be allowed to enter Australia without a quarantine period. The news certainly adds a fresh fervour to the outlook for the travel industry, including airline companies and hospitality-based firms.

Bali open to Aussies

One of the most relaxing and forgiving travel destinations in the world is an Indonesian province - Bali. Luckily, Australians can now plan a trip to Bali as Indonesia opens its borders to all foreign tourists. The pre-requisite here is that travellers must have both vaccinations done at least two weeks before travelling, alongside a negative PCR test taken within 48 hours of travel.

Initially, Bali did not include Australian tourists in its list of permissible foreign travellers. However, from last Friday onwards, Australia was added to this list. Amidst this change, Jetstar and Qantas are now making tentative plans for their flights. Thus, a relaxing vacation for Aussie travellers could very well be an opportunity for airline companies to recover from their COVID-induced losses.

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Tourism Australia’s promising move

Tourism Australia has offered a unique proposition to travellers from the UK and Ireland. This includes visiting Australia on a working holiday under the Work and Play the Aussie Way campaign. The campaign has been set up keeping in mind the fact that many working citizens are taking trips while managing their work along the way.

An incentive known as the Working Holiday Maker visa will allow its holders to work for the same employer or organisation for more than 6 months until 31 December 2022 without needing any permission. The announcement of the visa alone has resulted in 24,000 applications being sent to the Government. This unique program could encourage a number of travellers to take trips, especially those who are otherwise not able to travel because of work.

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Bottom Line

Due to the pandemic, the tourism industry has been left in turmoil and experienced huge financial losses to recover from. The past two years have offered little opportunity to the industry to grow, given the back-to-back virus outbreaks and international travel restrictions. However, as the new strain is considered milder and the economy has once again sprung back into full gear, the travel sector may soon return to normalcy.