COVID-19 leaves tourism workers in dire straits

The workers in the tourism sector have been left in the lurch as COVID-19 meted out a sucker punch to the sector, wiping off most of the tourism in the world.

Even as the jobs in the sector have been recuperating in the last three quarters, unemployment continues to be a major problem as Australia lost a net of 35,500 tourism jobs on an annual basis.

According to the latest data published by the Australian Bureau of Statistics on Friday, the total number of people employed in the tourism sector at the end of March 2021 stood at 662,700, down 5.1% from 698,200 a year ago.

However, the dip in the tourism jobs is more worrying as the job losses seem to be more of a permanent nature than temporary – unlike other sectors. The full-time jobs have come down by 6.5% -- 190 basis points more than 3.6% reduction in the temporary job holders.

In most of the other sectors – like automobile – when stress starts creeping in, the axe falls first on the people with temporary jobs.

At the peak of the pandemic, between April and June 2020, the Australian tourism sector had lost 91,700 jobs in a span of just three months – bringing down the employment in the sector by almost 13.1%. However, since then the sector has been trying to crawl back to normalcy.

With 23.9% reduction in jobs, travel jobs – from air, water and other transport modes – were the worst hit in the tourism sector, followed by education and training-related travel jobs (down by 15.5%) accommodation (a dip of 15.2%).

It is interesting to note that people preferred self-drive vehicles for their tourism purposes, as road transport and transport equipment rentals were the best performing sub sector – growing by 7.9%. Other than this, only two other sub sectors were in black -- sports and recreation services tourism (up 5.6%), as well as travel agency and information centre services (up 1.4%).

With various countries imposing travel restriction to prevent the spread of the pandemic, and most of the people avoiding non-essential travel to stave off the monster virus, COVID-19 has undoubtedly torpedoed the tourism industry and it will take a long time before its bruises are healed completely.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.