25/93 Salamanca Place, Hobart TAS 7000 T: 03 6220 7300 F: 03 6220 7317 PO Box 191, Battery Point TAS 7004 E: enquiries@tha.asn.au W: www.tha.asn.au TASMANIAN HOSPITALITY ASSOCIATION
Tasmanian Hospitality Association Rebuilding the Tasmanian Hospitality Industry Government support and priorities July 2020
20 th July 2020
The Hon Peter Gutwein MP Premier of Tasmania Level 11, 15 Murray Street HOBART TAS 7000
1. Introduction
The Coronavirus pandemic has had a major impact on Tasmania’s hospitality industry and the Tasmanian economy. The effective lockdown of the industry in response to the virus not only meant thousands of hospitality business closures, it also meant the loss of thousands of jobs in the industry. The hospitality industry is the third largest employing industry in Tasmania and is a major contributor to the Tasmanian economy. It is essential therefore that, as Tasmania emerges from the lockdown, there is a clear focus on rebuilding the industry. The Australian and Tasmanian Government support during the pandemic was fundamental in limiting the impacts of the lockdown and in assisting hospitality business owners and operators staying afloat. However, while the restrictions have now been eased to the point where business owners and operators are able to contemplate re-opening their businesses, Government support remains essential if these businesses are to remain open long-term. It needs to be recognised that most of these businesses have had little or no cash flow during the lockdown, while continuing to face ongoing costs. In many instances this has meant these businesses now have little or no cash reserves, not only limiting their capacity to re-open, but also placing them at higher risk in being able to meet the ongoing operating costs as they look to get back on their feet. While there will be a strong campaign to encourage Tasmanians to reconnect and once again enjoy their favourite restaurant, pub or get away venue, it is expected that the level of patronage will take some time to reach the point where businesses can once again thrive and experience the cash flow needed to meet their ongoing operating costs. And it is anticipated that this will be more acutely experienced in the regional areas, particularly with the loss of interstate and international tourism. As they re-open their doors hospitality businesses continue to be faced with meeting the costs of financing and business loans, rental costs, restocking and preparing their premises for re-opening, utility costs, wages for staff and much more but at a time when cash flow is low. For these reasons there is a real prospect of significant numbers of businesses choosing not to re-open, or re-opening only to fail a short time later. In order to see a strong rebound, and the boost this will bring to the Tasmanian economy and jobs, continued Government support is needed in the immediate future. It is also the time to look to the future and address some of the strategic issues that have been a major impediment to the growth and development of the industry over many years. This “Government support and priorities” document sets out the key areas of Government support, stimulus and future direction needed to rebuild Tasmania’s hospitality industry and the vital role it fulfils in delivering a strong and vibrant Tasmanian economy.
Dear Premier Please find attached the document entitled “Rebuilding the Tasmanian Hospitality Industry – Government support and priorities - July 2020”. The document has been produced following detailed consultation with Tasmania’s hospitality industry. It outlines the position the industry now faces as we look to re-emerge from the lockdown and provides details of the government support and priority initiatives that are needed, so we can successfully rebuild the industry in the wake of the Coronavirus pandemic. The Tasmanian Hospitality Association (THA) staff and the Great Customer Experience (GCE) program contractors – engaged with the funding support from the Tasmanian Government – played a vital role in supporting over 2,500 hospitality business faced with immediate closure or severe restrictions during the lockdown. The heart felt stories and circumstance of each business owner and operator was devastating but provided the THA with a clear understanding of the impact on the industry and what is needed to get the industry back on its feet. I firmly believe that now more than ever we need to work closely together to support Tasmania’s hospitality business owners and operators, who must now take the very courageous step of re- opening their doors and reinvesting in their businesses, in what will be a very uncertain business environment for some time to come. I would like to take this opportunity to commend you and the Tasmanian Government for your hard work and dedication, which has seen Tasmania successfully navigate through the crisis to this point. I think all Tasmanians recognise the leadership that you have shown has kept us safe and you should rightly be proud of what has been achieved. But the task before us now is to rebuild the industry and the THA, which represents the third largest employing industry in Tasmania with over 22,000 employees, is ready to work with you and your team over the coming years, as we look to rebuild an industry that plays such an important role in Tasmania’s economy and the jobs and career opportunities it provides for Tasmanians. The attached document is by no means exhaustive but focuses on the priority areas where Government support is considered critical and I look forward to working with you and your team as we look to rebuild the hospitality industry, which is so important to our lifestyle and prosperity. Yours sincerely
Steve Old CEO
“Dedi cated to Mai ntai ni ng and Impr ov i ng the Profess i onal i sm and Prosper i t y of the Tasmani an Hospi tal i t y Indus t ry ”
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