International travel constrained over 2021 and the first half of 2022.
Tonight’s Federal Budget has confirmed Government expectations that Australia’s international borders will remain closed for at least the next 12 months.
Treasurer Josh Frydenberg suggested that small phased programs for international students will commence in late 2021 and gradually increase from 2022, but warned that “the rate of international arrivals will continue to be constrained by State and Territory quarantine caps over 2021 and the first half of 2022, with the exception of passengers from Safe Travel Zones”.
Inbound and outbound international travel is expected to remain low through to mid-2022, after which a “gradual recovery in international tourism is assumed to occur,” the Budget papers say.
However while uneven vaccine rollouts across the globe are likely to prolong international travel restrictions, Australia’s tourism services exports are predicted to grow strongly in 2022/23 as border closures ease.
Financial measures included in the Budget include an unspecified extension of the Consumer Travel Support Program to support businesses in the travel agent sector, ongoing funding to extend the Regional Airline Network Support Program for a limited number of services until 30 September 2021, along with supporting major Australian passenger airlines through the International Aviation Support Program until 31 October 2021 to “retain flight ready crews and maintain international aircraft”.
More details in tomorrow’s issue of Travel Daily.