Since Australia shut its international borders to travellers in March 2020, the travel industry has been hemorrhaging jobs. One in seven tourism workers lost their jobs from March to December, and analysis by the Tourism and Transport Forum (TTF) found that as many as 320,000 jobs could be lost by September 2021. And while the roll out of Covid-19 vaccines in Australia spells hope for the return of international travel, it will be a long time before travel retailers see foot traffic
affic grow to pre-pandemic levels.
During the month of November, there were just 7570 visitor arrivals recorded by Tourism Australia, down 99.1 per cent relative to the same period the previous year.
Travel retailers have leaned heavily on the government’s JobKeeper scheme to stay afloat during the pandemic, and with the scheme due to end at the end of the month, the sector is in crisis.
In a bid to support this segment of the industry, the Australian Retailers Association (ARA) has set up a Travel Retail Advisory Committee to drive an advocacy campaign on behalf of travel retailers.
The Committee will advocate for Federal Government support, beyond JobKeeper, and will focus on industry and media engagement to advance its cause.
Key players in travel retail have signed up to be part of the Committee, including representatives from Heinemann, which recorded a near 60 per cent drop in turnover globally in the first half of 2020 compared to the same period last year.
Australia Way Pty Ltd, the Australian Duty Free Association, Dufry, Lotte and Lagardere have also joined the Committee to improve outcomes for the industry.
Breaking point
ARA chief executive Paul Zahra told Inside Retail that economic recovery remains uneven and that thousands of retail jobs are under threat with the looming end of JobKeeper.
“Travel retailers, including duty free shops, are at breaking point,” Zahra said.
“These are businesses within airports and CBD tourist shopping strips which remain largely deserted. International borders aren’t going to reopen to tourists any time soon, so this crisis is not going away.”
Zahra said the scheme is all that has kept travel retailers going through the pandemic and that they are facing a complete decimation when it winds up.
“The impacts can be felt on a social and economic level. We cannot underestimate the mental health challenges that flow on from losing a job and what that can mean for families and relationships. It means more people on welfare and more people in crisis,” he said.
Zahra is hopeful, however, that with ongoing targeted support from the Federal Government travel retailers can come out the other side of the crisis.
“The retail industry is appreciative of the JobKeeper and everything it’s done to support businesses through the worst of the pandemic. But we can’t celebrate a job well done just yet. Travel retailers face a long, difficult road back and there needs to be ongoing targeted support to help them through the difficult months and years ahead.”
ARA partners with QUT on consumer research
Beyond travel retail, the ARA is also focusing efforts on building a more robust retail industry based on consumer insights.
On Monday, the ARA announced a strategic partnership with Queensland University of Technology (QUT) through which it aims to dig deeper into consumer behaviour and trends.
The Consumer Research Advisory Committee, chaired by QUT Professor Gary Mortimer, will bring retail leaders together to advance new research initiatives and implement new strategies based on its findings.
“Covid has accelerated a number of retail trends in tech development and innovation, and it’s important retailers have a deep understanding of what that means for their businesses and customers for the years and decades ahead,” Zahra said.
“Not only did the pandemic cause a powerful shift in the way people work and socialise – but also in the way we shop and interact with the businesses and products we want to purchase.”
The Committee will develop an industry-first consumer research and insights hub. This digital platform will provide succinct versions of academic research alongside thought leadership pieces.