The federal government is subsidising half the cost of 800,000 eligible airfare tickets for domestic travellers as part of a $1.2 billion support package for the struggling tourism industry.
The program, scheduled to run from April to July, is the next step in economic support for the tourism industry after JobKeeper ends in March.
Qantas and Virgin both welcomed the news, with Qantas planning to put 550,000 total eligible tickets on sale during the period, or 32,000 per week.
Trade and Tourism Minister Dan Tehan said for the scheme to work effectively, state governments need to co-operate by maintaining open borders.
“All the surveys that have been done show that people’s biggest concern now about travelling is not COVID-19; it’s actually border closures and being locked out of their states.”
Flight Centre CEO Graham Turner was disappointed in the announcement, saying it will do little to help the industry. He also cited border closures as a more pressing concern for the recovery of the tourism industry.
“It is about the borders. Keeping the domestic borders open and getting the international borders open as soon as possible.”
Queensland Premier Annastacia Palaszczuk, who has repeatedly been calling for more government assistance, said the package wasn’t good enough.
Meanwhile, Gold Coast Mayor Tom Tate said he was “jubilant” at the announcement and encouraged Aussies to start making plans to visit the Coast. He urged Palaszczuk to stop being “trigger-happy” on border closures and keep them open.
Then-Tourism Minister Kate Jones estimated the snap border closure between Queensland and New South Wales over the summer holidays cost the nation an estimated $7 billion.
The support package will also help airlines maintain around 8600 jobs and subsidise costs for training, certification, and accreditation to ensure they can expand again when the market completely opens.
Initial flight destinations will operate in 13 regions:
Queensland: Gold Coast, Cairns, the Whitsundays and Mackay region (including Proserpine and Hamilton Island), and the Sunshine Coast.
Northern Territory: Lasseter and Alice Springs
Tasmania: Launceston, Devonport, and Burnie
Western Australia: Broome
Victoria: Avalon
New South Wales: Merimbula
South Australia: Kangaroo Island