PRESIDENT UPDATE
The Tasmanian hospitality industry, long renowned for its vibrant spirit and exceptional offerings, is facing formidable challenges as the cost-of-living crisis tightens its grip. Our businesses are grappling with escalating insurance costs, soaring energy bills, increased rents and skyrocketing prices for goods. These factors, combined with a very noticeable decline in customers and discretionary spending, are creating a perfect storm that threatens the sustainability of many of our beloved establishments across the state. Insurance costs have surged dramatically, and the spike in premiums over the past few years is affecting businesses of all sizes across the state. This is leaving operators with no choice in some cases to be under insured, creating additional issues in the event of needing to make a claim. Rents, too, have climbed to unprecedented levels. All these increases put pressure on business owners contending with tight margins. The cost-of-living crisis we are all in has reduced discretionary spending among consumers. When we face such times, households are tightening their belts and dining out, leisure and entertainment activities are often the first to be sacrificed. This shift in spending habits directly affects our sector.
As one of Tasmania’s largest employing industries, ultimately what this means is that a downturn for us will have a great impact for the state. In these times, it’s even more important that our concerns, but more importantly the solutions we have, are heard and acted upon by those in power at all levels. After the recent state election, we now have a larger parliament with the reintroduction of 10 seats. Tasmania has also followed the trend of an increase in the number of representatives on the crossbench. You may have seen our CEO Steve Old out in the media recently advocating on our behalf around the growing cost of insurance. All of us at the THA are and will always actively engage with all policymakers in good faith to seek relief measures and support for our industry. The Tasmanian hospitality industry is renowned for its resilience and adaptability. We will continue to innovate and find creative solutions to navigate these turbulent times. Many of our operators have and are embracing sustainable practices to reduce waste and energy usage. Collaborative efforts within the industry are also proving invaluable, as we share resources and strategies and adapt them to our situations. As we navigate this crisis, the THA remains steadfast in protecting our great industry.
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