THE beleaguered hospitality industry seems to have missed out on federal budget sweeteners but arguably needs them the most, Newcastle bar owner Prudence Farquhar believes.
Ms Farquhar, who co-owns Newcastle inner-city venues Bar Mellow and Blue Kahunas with partner Byron Marzinotto, welcomed the Morrison government's $146 million pledge to help the recovery of the Australian tourism sector in response to the pandemic, including further assistance for travel agents, and a $38 million allocation to the arts, including cinemas, to assist with recovery.
However, she said other budget measures, including incentives for businesses who invest in technology, would not make any difference to her businesses' bottom line, particularly as cost of living pressures showed no sign of easing.
"The rising cost of living has had an impact: everything we have to purchase to use for our cocktails, down to napkins or toilet paper - it all adds up," she said. "It would then mean our drink prices would increase and I'm not sure consumers would commit to going out if drinks and food become too costly."
Ms Farquhar welcomed mooted changes to the Pay As You Go tax which will axe the 10% GDP "uplift rate" that applies to PAYG and GST instalments to 2% for the 2022-23 financial year. However, with the proposal subject parliamentary approval, she said there was no guarantee it would come to fruition.
She was disappointed her industry had not been more supported: "It's frustrating because alongside arts and entertainment, hospitality has been hit hard. Some consumers are still scared to venture out, we've been conditioned to stay inside."
"Even though we are picking up and it's getting busier it's not back to what it was. There is no incentive from the government to get people going out."
Mike Galvin, co-owner of popular Newcastle East venues The Ship Inn and The Falcon, said the hospitality industry was feeling the pinch on many levels, from the cost of goods rising as suppliers were impacted by factors including increased petrol costs and the public appearing to have less disposable cash for wining and dining.
"On a whole the bounce back [from lockdowns] has been good but it's an unknown right now because we have quiet periods and it's a bit hit and miss and there's no rhyme or reason but it's stressful," he said.
"This is how it is and we react and that's all we can do, there's a lot of uncertainly but I can be thankful we are not in the Northern Rivers right now."
Mr Galvin said that consumers would not like price increases at venues but if a business was, as he said his was, paying above award wages and facing rising costs, then ultimately it might happen.
Without addressing the budget, he believed that a lot more could be done by government however "it's not happened, so we just keep soldiering on. Everyone is feeling the pinch."
The travel industry was happier with the budget: Julia van Huisstede, a co-owner of Newcastle and Maitland agency I Talk Travel & Cruise, welcomed the $146.5 million tourism support package, including $63 million in marketing to reignite international tourism.
"The large sum of money is split up into many areas or tourism and we are particularly happy with the announcement of a third (and final) business grant to help retail travel agents continue to survive as we face many months ahead of us in booking credits that some clients have now had in place for over two years," she said.
With most international borders now open, globally travel is "taking off at a rapid rate": "After two years of treading water we are finally seeing more than just green shoots." Moves to lure global visitors, she said, worked "very much in our favour", with domestic travel making up a third of business. Hi Penelope,
Newcastle hair salon owner and Australian Hairdressing Council CEO Sandy Chong said the industry was pleased with the budget extension of the Boosting Apprenticeships Commencements scheme.
"This should see an additional 35,000 apprentices for trades. We are still waiting on details as to which industries are included in the priority occupations with the new Apprentices Incentive system," she said.
"We certainly hope that hairdressing would be included due to our dire skills shortage."
Mrs Chong said the migrant intake cap was disappointing with the extreme skill shortages in many industries.
"As much as the industry is appreciative of the apprentice incentives, no amount of apprentices will fill the current skills gap. This skills gap needs qualified workers to also train apprentices. Small businesses desperate for staff may employ an apprentice but will be so busy working in their business versus having time to commit to training."
