2.9 Training – Continued commitment and funding support of an Industry led Registered Training Organisation (RTO) and in-venue training. The extent of loss of trained and skilled staff from the hospitality industry as a result of the lockdown will not be known for some time. However, it is anticipated that the losses will only add to the difficulties long faced by hospitality businesses in accessing skilled and capable staff. The Tasmanian Government made the commitment to provide the hospitality industry with $1.0 million to develop an industry led RTO and this commitment will be vital if the industry is to have the access it needs to quality staff and provide a first class quality experience for which Tasmania is renowned. 2.10 Licensing and other hospitality fees – waiver of fees until 30 June 2021 Tasmanian hospitality businesses, staff and enterprises face a range of annual government taxes, charges and licence fees (state and local government) and waiving these fees in the early stage of the industry re-opening will be important in providing the capacity and confidence for venue owners and operators to re-open and will provide the opportunity for many staff who have had no income, to acquire the necessary licenses to be reemployed. 2.11 Improved Access to Internet and Mobile Phone Services – major investment by the Tasmanian Government to improve internet and mobile phone access and services in the regional areas of Tasmania. A major limitation experienced by hospitality businesses and enterprises has been the poor quality of internet and mobile phone services, particularly in the regional areas around Tasmania. This has had a major impact on regional hospitality businesses, not only by providing a poorer quality service but in some instances, has resulted in a loss of custom. Contemporary tourism expectations of national and international visitors also heavily rely on quality access to internet and mobile phone services, including their use for bookings and navigation, and the poor quality of the services around Tasmania reflects badly on the state as an attractive destination. The Tasmanian Government previously trialed a wifi-hot spot initiative however this was discontinued. The Tasmanian Government should invest heavily in a similar program in the regional areas of Tasmania, or undertake other initiatives which will ensure that there is quality access to internet and mobile services to support the rebuilding of Tasmania’s hospitality industry and indeed, regional businesses more generally.
In a more immediate sense, while many employees were able to be retained via the JobKeeper program, businesses in effective lockdown were still faced with meeting the ongoing cost of employee entitlements, such as superannuation and sick leave. While government support was available for other operating costs such as energy and utility services, business owners and operators were still faced with meeting these employment related overheads at a time when there was limited or no income, effectively increasing their debt burden and placing a further handbrake on the capacity of businesses to re-open. Industry consultation also indicates a strong potential for a large number of business owners and operators deciding not to re-open, the level of debt, costs and risks being regarded by operators as simply too high. It is vital that the government is fully aware of the situation business owners and operators now face, and where possible, provide much needed assistance in their efforts to rebuild their businesses, including addressing key issues associated with industrial relations. 3. Other Critical Issues 3.1 Responding to business closures and Impacts on Suppliers Through consultation with the hospitality industry there are clear indications that a significant number of business will fail as a consequence of the lockdown. This in itself is a tragedy however there are greater implications with many or most of these businesses being creditors that owe Tasmanian suppliers of goods and services. This is not only an issue for the small businesses that provide goods or services but the larger companies and providers, with the level of outstanding payments simply being on a much larger scale. And the flow on effects of hospitality business closures may be significant and may occur over an extended period of time, as business try to recover from the lockdown but ultimately fail. For these reasons it is important that the Government is watchful as the industry looks to rebuild and can provide support where business closures have a much broader impact than the tragic loss of those individual businesses that close their doors for good. 3.2 Responding to increases in rental and lease costs As we emerge from the lockdown, property owners are now seeking to return to full rental/lease payments from hospitality business operators. In some instances the feedback is that the property owners are in fact looking to increase their pre-COVID-19 rental/lease rates, in an effort to recoup the losses they themselves incurred as a result of the lockdown, following a pause on lease/rental payments at the time. These rental increases are occurring at a time when venue income is low and uncertain and, together with all the costs of re-opening their doors, place a substantial burden on hospitality businesses looking to re-open. As property rental/leases are one of the major operating costs incurred by hospitality businesses that do not own their own venue, this has the potential to result in a significant number of businesses not re-opening or closing completely. While in normal circumstances this may be seen as simply an opportunity for a new operator to invest in the industry, this is less likely in the current uncertain business environment. The result is that this can lead to greater losses of business from the industry and a much slower recovery and is an issue where government support or policy may be needed.
2.12 Industrial Relations – Supporting the industry’s needs at National Cabinet meetings
Industrial relations play an enormous role in the ongoing operation of hospitality businesses and enterprises. While employment conditions and specification of entitlements are vital for protecting employees and maintaining a viable workforce, the associated costs to employers and the capacity of the industry to pay are equally important in maintaining a robust and viable hospitality industry. As the industry looks to recover and rebuild from the impacts of COVID-19, a modern industrial relations system is more important than ever, in supporting the rebuilding of Tasmania’s hospitality industry. For this reason it is important that the Tasmanian Government actively supports the hospitality industry at National Cabinet meetings, advocating for industrial relations reforms that will support rebuilding the industry.
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