16
Mar
2009
Bailout! Australia considers subsidizing tourists’ airfare
Posted by: Mark Ashley

The government of Australia might launch a TARP of its own…for tourists! The hyperbolic “Project Mayday” could pay part of the airfare for travelers heading to Oz, if those travelers are willing to drop some big bucks:

…visitors who take up the offer will be required to spend a specified amount of money, say $5000, within Australia, which would bolster local shops, hotels and restaurants.

The airfares, which would be offered at a discounted rate by participating airlines, would be paid for by the Government. Airlines have suffered a massive decline in passengers, particularly in the international market.

A Faustian travel bargain! Get a deal, but is it worth the price?

I’m not sure how you enforce the $5000 (AUD) spend in-country, unless you impose a Soviet-era mandatory (nonreversible) currency conversion at the border. Or some inverse of the “Tax Cheque” VAT refund system. In any case, it would be complicated.

And how appealing is this in an era of declining airfare? Just a few days ago, Qantas was featuring roundtrip airfare as low as $700 (all-in) from LAX to Sydney. That’s exceptionally cheap.

Even if fares rise, and subsidies become more appealing, the Australian government shouldn’t be wasting its money.

(via Budget Travel)

Categorized in: travel
4 Comments

4 Responses to “Bailout! Australia considers subsidizing tourists’ airfare”

  1. Dave Says:
    March 17th, 2009 at 12:16 am

    When I first read of this a few days ago, I recall this being a proposal by a transport industry person; not the Australian Government.

  2. Mark Ashley Says:
    March 17th, 2009 at 7:16 am

    Dave, you’re right, and my post wasn’t clear on this. I’ve edited it to make clear that this is a proposal which the Australian government is considering, not (yet?) implementing. From the source article:

    The Mayday Project is the brainchild of Independent Tourism Holdings’ innovation director Glenn Millen, who says the free flights, favourable exchange rate and novelty of the promotion would position it strongly to succeed.
    [...]
    Mr Millen, who came up with the idea earlier this year, said the money could be redirected from the Government’s pre-existing tourism marketing budget.
    [...]
    Independent Tourism Holdings director Steve Cusworth, who is steering the project, will meet with the federal, state and territory governments, as well as airlines and industry players, to discuss the proposal.

  3. Travel News and Stories 3/17/2009 Says:
    March 17th, 2009 at 11:04 am

    [...] Australia considers subsidizing tourists’ airfare via UpgradeTravelBetter visitors who take up the offer will be required to spend a specified amount of money, say $5000, within Australia, which would bolster local shops, hotels and restaurants. [...]

  4. mbwardlow (Michael Wardlow) Says:
    March 17th, 2009 at 11:52 am

    Twitter Comment


    AUS to bail out tourism industry by subsidizing airfare? [link to post]

    – Posted using Chat Catcher

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