Australia is subsidizing 800,000 half-price plane tickets in a epic attempt to restart its tourism industry, documents show
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- Australia will subsidize domestic flights to revive its travel sector, per papers seen by Reuters.
- Prime Minister Scott Morrison is set to announce this on Thursday alongside other recovery measures.
- The country's trade minister will urge Australians to book a holiday this year, per the documents.
- Visit the Business section of Insider for more stories.
Australia will subsidize 800,000 domestic flights, help its two main airlines, and offer cheap loans to small tourism operators as part of 1.2 billion Australian dollars ($924 million) package to revive the travel sector, the prime minister, Scott Morrison, will say Thursday.
Tourism is one of Australia's biggest industries, worth more than 60 billion Australian dollars ($46.2 billion) and employing about 5% of the country's workforce. But the sector was crippled when the country shut its international borders in March 2020 to curtail the spread of COVID-19 - leaving tens of thousands of people on the country's wage-subsidy scheme.
Seeking to prop up the industry when the subsidy scheme ends this month, Morrison will pledge another stimulus package for the travel sector, according to extracts of an announcement seen by Reuters.
Morrison will say Australia will subsidize the flights of 800,000 domestic flights between April 1 and July 31 while its international borders remain closed. It will pay 50% of the cost of flying to 13 destinations, he will say. Airlines have agreed to provide additional flights to those places.
"This is our ticket to recovery - 800,000 half-price air fares to get Australians travelling," Morrison will say.
The premier will also say that his government will provide financial support to Qantas and Virgin Airways between April 1 and October 31 - when international flights are expected to resume.
Morrison did not disclose the scale of the funds, which will be used to keep 8,600 workers employed, planes in "flight-ready condition," and international passenger services at a pre-pandemic levels.
Australia will also offer loans of up to 5 million Australian dollars ($3.85 million) to tourism businesses such as tour companies, with two-year repayment holidays, the prime minister will say.
"We need Australians to do their patriotic duty and book a holiday this year," trade minister Dan Tehan will say.
Airlines are devising their own ways to push domestic travel, too.
On March 2, Qantas Airways announced it's offering "mystery flights" in Australia between March and May.
Passengers won't be told where they're going on the flights, which are due to last about two hours, until the plane begins to land. Only 120 passengers will be allowed on each one-day trips.
Qantas started offerings "mystery flights" was back in the 1990s. In September, the Australian flag carrier launched a seven-hour "flight to nowhere" - it sold out in 10 minutes.
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