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The New Daily
Business
Sezen Bakan

Domestic tourism industry struggles to meet rising demand

Understaffed hotels and restaurants spell trouble ahead for the tourism sector. Photo: Getty

Australia’s tourism industry’s boost to entertainment offerings comes after years of lockdowns, and massive losses for the sector, but there could still be trouble ahead.

New data shows searches for Melbourne accommodation on Wotif increased by more than 1800 per cent after the release of dates for the 2023 Australian Grand Prix were announced on August 16, compared to the week prior.

This made Melbourne the top destination on Wotif in the past week, for travel between March 30 and April 2, 2023, proving major events are sparking much interest among potential travellers.

It is much needed, given Tourism Research Australia data shows the industry’s losses totalled $146.6 billion between March 2020 and December 2021.

But just because large-scale events are happening again, this doesn’t mean the tourism sector will be able to accommodate visitors with ease.

Worker shortage

Australian Tourism Industry Council chairman Evan Hall said every event needs workers, and the country is in ‘‘critical need’’ of international migrants to fill key casual roles that keep the accommodation, hospitality and event sectors running smoothly.

‘‘If you have a major event at a stadium, you certainly need a workforce for one day to feed and look after [up to] 60,000 people,’’ he said.

‘‘It’s a huge job to gear up for for major events, and we need a flexible workforce to do that.

‘‘Our best workers are normally backpackers and international students. We have very few of those in Australia at the moment.’’

Griffith Institute for Tourism professor of practice Daniel Gschwind said the pandemic has created more demand for domestic tourism, with travellers still skittish of international trips.

Mr Gschwind said the labour shortage is an ‘‘enormous challenge’’ for event organisers and the tourism sector at large, who have gone from one extreme of having no business during the height of Australian COVID-19 restrictions, to the other end of the spectrum where there is plenty of business, but a struggle to deliver.

Although he is confident the industry will rise to the challenge, he said tourism staff are tired in the lead-up to major events scheduled this year, such as Melbourne’s AFL grand final, Sydney Fringe Festival and more regional events, such as the Tesselaar Tulip Festival to be held in Silvan, Victoria.

Calls to ‘overhaul’ visa process

The shortage of overseas workers is among the areas of discussion at the government’s jobs and skills summit next week, with Prime Minister Anthony Albanese labelling the backlog of skilled worker visas a “hopeless situation”.

Mr Hall said the government needs to overhaul the visa process as Australia is competing with ‘‘every country around the world’’ to attract tourists and workers.

‘‘It is too hard to come here,’’ he said.

‘‘Whether or not you’re coming here as a tourist or as a student, it takes too long [for visa applications] to be processed, and there are too many restrictions.

‘‘It’s not just a matter of removing restrictions, we’ve actively got to … market Australia as the place to come and holiday, and the place to come and work.’’

As Australian industries wait for the federal government to make a move, some states and territories are taking action themselves to try and ease worker shortages.

On Monday, Western Australia’s state government committed almost $4 million over the next two years to develop workforce skills among the local population for the tourism and hospitality industries.

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