International borders to reopen - but not everyone can travel

It goes without saying that the world has changed in the last 18 months, but few industries have felt this more than tourism. September 27th was World Tourism Day - but the question remains, how will tourism respond to the so-called “new normal?”

Holiday here this year

Tourism Australia has adopted the “holiday here this year” campaign to motivate Australian’s to explore their own backyards. Including a partnership with the Wiggles to encourage families to find kid-friendly adventures on their own doorsteps.

As the world’s gotten smaller for those enduring the world’s longest lockdown in Melbourne, and with Sydney getting their freedom on 11 October, many have enjoyed exploring everything their neighbourhoods have to offer. For some, staycation 2021 may seem like a cruel extension of their confinement, but for many more, the lessened cost, commute, and stress of local travel holds strong appeal.

This comes as Australia's accumulated record banked leave. Employer’s left with the associated liability of undischarged leave, and concerns about mental health, seek opportunities to encourage staff wellbeing leave. 

Source: Roy Morgan Single Source (Australia), April 2005 – March 2021

Hope for Xmas  

Vaccination rates are climbing, and many are hopeful that the loosened restrictions will enable freer travel at Christmas. Through reduced opportunities to spend, and in some cases increased income, Australian’s have amassed a whopping $230 billion in savings through the pandemic that tourism operators would love a slice of. 

Qantas for one is banking on it. They hope to be open for numerous destinations before Christmas including Singapore, the US, Japan, the UK, Canada and Fiji. Virgin has listed Fiji and Bali as available destinations, the former by Christmas, and the latter for March 2022.

Fortunately, NSW has reached over 70% of double vaccinations and they had their taste of freedom and came out of lockdown on 11 October 2021. International borders are estimated to open on November 1 for NSW under a home quarantine model. However, international flights could still be shut out in WA and QLD, which means Australian residents may have to get to NSW to travel overseas.

How travel will change

With all the recent upheaval there are several trends emerging. 

At a macro level, many travellers will look for safer options - whether that’s non-flight travel, local, or trips to those countries perceived to have handled the destination better. Business travel will also resume once international borders are open, which means that global business travel expenses will increase. 

Interestingly, for many, the motivation for travel has changed. While many will be travelling overseas to reunite with their friends and families or travel to their favourite spot to reminisce about their pre-covid adventures, the majority are just eager to have unrestricted travel anywhere after 18 mths of lockdowns. Despite all that, there has been a rise in the trend of becoming a “Bleisure” traveller - combining work and recreation so that an individual can work remotely and choose to be at their desired location.

While Australian unemployment peaked at 7.4% in June 2020 amid strict lockdowns, for many workers a shift to work from home stabilized the uncertainty. 

The government has since introduced tax cuts to encourage businesses to create or sustain employment, and to give households more disposable income. But the question remains - will Australians be using all their savings towards travelling or supporting local businesses?

Tourism for Inclusive Growth: Support local.

World Tourism Day is to celebrate the ability to drive in reducing poverty, inequality and support economic growth in every country. This year’s theme is “Tourism for Inclusive Growth”, hosted by Cote d’Ivoire to increase inclusive development.

As reported by Commonwealth Bank, 49% of consumers have incorporated domestic online shopping into their daily lives. Besides, Australians are more prone to shop locally to show support for local online retailers and manufacturers during the pandemic. This also resulted in an increase in mobile wallet usage to 39% as the pandemic enforces people to carry less cash since contactless payments are offered in almost every retailer.

Travel VS Local

Even with the ease of restrictions and the reopening of international travelling, it will not be easy for Australians to travel out of the country. Travellers will have to race in securing a seat on the airplane, and prices will definitely skyrocket as demand increases. Apparently, bookings for international travel have been sold out for December 2021, which shows that local businesses would have a chance to rebuild the economy.

As Victoria is easing up and lockdown is scheduled to end by November, businesses should gear up the promotions in time for Christmas. The season is here for businesses to gain new followings and increase revenue. Find out how iGo has helped 2,000+ businesses to increase engagement by rewarding loyal customers, partners and employees - especially during this time of the year.