Pandemic impacts city’s economy

Published: 09 June 2021. (Note: information was correct at date of publication but may have since been changed or superseded.)

An assessment by leading economics firm Deloitte, predicts Tropical North Queensland (TNQ) could lose as much as $6.5 billion in visitor spend over the decade to 2029 due to COVID-19.

However, the report also highlighted the resilience of the TNQ economy with a substantial portion of this visitor expenditure loss being offset by growth in other industry sectors, resulting in a forecast impact (measured before Government support measures) of $3.3 billion to Gross Regional Product (GRP) over the 10 years to 2029.

The report also highlights the significant and ongoing role government support measures have played in offsetting the economic impacts of the pandemic.

In particular, the Federal Government’s JobKeeper program supported many businesses enabling them to survive the initial phases of the pandemic, retain staff and now be in a position to upscale operations as business conditions and domestic tourism are rebounding.

While the report notes that even with government support measures implemented to date, there will be an enduring impact on the regional economy – $1.6 billion shortfall in GRP and 975 fewer jobs on average per annum over the decade to 2029 – the anticipated impact is less severe than many had predicted 12 months ago.

In further positive news, Cairns Airport’s domestic operations are rebounding strongly, with direct flights now operating to all mainland capital cities as well as most regional centres on the east coast and many locations in the Cape and Gulf.

Domestic passenger numbers are now also close to reaching 2019 (pre-pandemic) levels, however the current Victorian lockdown is expected to impact these results.

It is acknowledged that individual businesses in certain sectors (incl international education and international tourism) continue to face difficult trading conditions