Business
Lucky no more? Australia’s golden economy faces long road to virus recovery
SYDNEY (Reuters) – Coronavirus has done to Australia what even the global financial crisis couldn’t: abruptly end a record growth run and help trigger a deep recession from which the country will take time to recover.
While Australia has had great success so far in heading off the pandemic, with just over 100 deaths, the cure of shutting out the rest of the world means massive hits to three key growth drivers – tourism, education and immigration.
Fiona Gulin was 18 when the last recession hit Australia in the early 1990s. Back then, she managed to keep a part-time job at a music publication, before moving on to full-time work and a lucrative career in the entertainment industry.
This time, she hasn’t been so lucky.
“I have been hit hard in this recession,” said Gulin, who was laid off in April as the marketing director of the ANZ Stadium in Sydney, prompting her to ditch her rented house in the city and move back to her home in Melbourne.
Gulin is among the hundreds of thousands who have lost their livelihoods overnight to the COVID-19 pandemic as Australia suffers its first recession in 30 years and its unemployment rate hits a 19-year high of 7.1%.
Even though Australia’s economy was among the first to reopen after lockdowns worldwide and earlier than the government expected, it contracted 0.3% in the first quarter and a new wave of coronavirus cases could put a recovery at risk.
Women have been particularly hard hit.
The unemployment rate for females looking for full-time work surged to 8.3% in May from 5.4% in February before coronavirus-driven shutdowns kicked in. That compares with 7% for men from 4.8% in February.
“Australia is known as the lucky country but I am not very lucky at the moment,” Gulin, who is receiving government welfare payments, told Reuters.
“I have been talking to a few people about some opportunities but nothing has come up yet.”
Vulnerable services
During the unprecedented run of growth, Australia transformed into an open, services-driven economy, feeding China’s rise with its mineral and commodity wealth and shedding much of its manufacturing capability.
The services sector accounts for almost two-thirds of Australia’s A$2 trillion ($1.4 trillion) annual economic output – but is now particularly vulnerable to the closure of national borders and social distancing measures to tame coronavirus.
“The tourism-dependent economies are the ones we worry about the most,” said Citi’s global chief economist, Catherine Mann.
Mann sees a V-shaped rebound for manufacturing generally but for the services or consumer discretionary sector, “it is absolutely an L-shaped recovery,” she said, meaning it could take a while for growth to fully recover.
“What was lost in the early part of this year will never be recovered from the standpoint of revenues for a company.”
Virus shadow
Policymakers, too, are worried about the long road back to economic health.
The Reserve Bank of Australia has pledged to keep its benchmark cash rate at a record low 0.25% until there is progress in achieving its employment and inflation goals.
“We’re going to have low interest rates for a long period of time,” central bank Governor Philip Lowe said last week, adding that there would be “a shadow from the virus for quite a few years.”
“People will be more risk averse, they won’t want to borrow. In Australia, we’re going to have lower population dynamics,” Lowe said, referring to the idea that fewer foreigners entering the country would lead to lower consumer demand and a tighter labour market.
Puja Basnet, an international student from Nepal, is reconsidering her options in Australia after losing her part-time job as a waitress.
“I was at home for two months without work and I have almost run out of my savings. As a non-Australian I don’t even have access to Centrelink,” she said, referring to government welfare payments.
For Basnet, the future is even more challenging as more people are now jostling for each job.
An L-shaped recovery also means the unemployment rate will stay higher for longer.
“I am really worried about the future. I have been applying for 30-40 jobs a week but there has been zero responses.”
Reporting and photo: Reuters
The Maldives Association of Tourism Industry (MATI) held its 34th Annual General Meeting at Kurumba Maldives today, with a total of 100 members in attendance.
The day’s events began with a welcome address from the Chairman of MATI, Mr. Mohamed Umar, who also presided over the session. The agenda included an address from the Secretary General, Mr. Ahmed Nazeer, the review and approval of the minutes of the 33rd AGM, the review and adoption of the Annual Report and Financial Reports for 2023, the approval of the 2024 budget, the appointment of auditors for 2024, the welcoming of new members and election of executive board members to the two vacant positions (by-election).
In the member discussion session, the following topics were covered: the Government’s aim to reach net-zero emissions by 2023 and renewable energy generation in the Tourism Industry, new terminal of Velana International Airport and developments, employment challenges, the Industrial Relations Act and trade unions, environmental conservation and the significance of creating and executing efficient management plans for protected areas like the South Ari Marine Protected Area (SAMPA).
Following the official proceedings, the Minister of Tourism Hon. Ibrahim Faisal and the Minister of Economic Development and Trade Hon. Mohamed Saeed joined the forum. The Ministers provided remarks and engaged in a Member Q&A session. This session provided members with the chance to directly engage with the Ministers and delve into crucial industry topics. The queries focused on the Economic Outlook, forthcoming development plans and immediate challenges and issues affecting the Tourism Industry.
A video presentation was also showcased that delved into the extensive work undertaken by MATI in 2023. The video also touched upon the Tourism Industry’s performance over the past 5 years, as well as the current and projected human resource capacity of the sector.
In his closing remarks, the Secretary General highlighted the importance of collaborative efforts in addressing industry challenges and called for greater unison amongst industry stakeholders, ending with an acknowledgement of the promising start to the year in terms of arrivals.
Executive Board Members elected to the 2 vacant positions (by-election):
- Ibrahim Shareef, CEO and Managing Director of Maldives Airports Company Limited
- Renato De Olivera, General Manager of The Ritz-Carlton Maldives, Fari Islands and representative of Marriott International
Join us for the Travel Creators Exchange 2024, taking place on February 1, 2024, at the Hotel Jen in Male’, Maldives.
This dynamic event provides a platform for networking and collaboration among Maldives-based travel creators, fostering connections, idea-sharing, and the establishment of lasting partnerships to expand opportunities and monetise content.
Our lineup of distinguished speakers includes:
- Zihuny Rasheed, Deputy Managing Director of MMPRC, will present on “Power of Digital Storytelling: Collaborative Strategies for Destination Promotion.” MMPRC actively markets the Maldives globally, utilising a comprehensive approach that includes travel trade shows, roadshows, digital marketing, and more.
- Amjad Thaufeeg, Commercial Director of Kuda Villingili Maldives Resort, brings over 23 years of hospitality industry experience. He will discuss “The Role of Content in Tourism Marketing,” drawing on expertise in revenue, customer service, sales & marketing, and human capital development.
- Suresh Dissanayake, Assistant Vice President of Sales & Marketing of Heritance Aarah & Adaaran Resorts, with nearly two decades of experience, will shed light on “What does a Sales and Marketing Director Do?” He brings extensive luxury hospitality experience and a proven track record in sales, distribution, and marketing.
- Vishal Amir Ahmed, a versatile cinematographer and content creator, will explore “Who is a Content Creator.” Currently associated with Various Arts Studio, he specialises in providing multimedia solutions to various clients.
Organised by Maldives Insider, Maldives Virtual Tour, Travel Trade Maldives, and Hotelier Maldives, this collaborative effort aims to empower Maldives-based travel content creators and elevate the Maldives as a premier destination for captivating travel storytelling.
Events
Acclaimed contemporary artist Ana Pušica explores perpetuality and community at Patina Maldives
Ana Pušica Kramer, an internationally acclaimed contemporary artist, joins Patina Maldives for an exclusive art residency in the now infamous Fari Art Atelier. From January 22 to February 22, 2024, Ana Pušica will grace the shores of the Fari Islands, weaving a vibrant narrative of colour and emotion across her larger than-life canvases.
Her artistry transcends boundaries, melding abstraction and figuration into awe-inspiring masterpieces. Having exhibited globally, from New York to Beijing, Ana’s paintings are a physical, intuitive act rooted in movement. Described as a “beautiful fluorescent thunderstorm,” Ana’s art explores light and colour, capturing the energy of life itself.
The Fari Art Atelier which has previously hosted the likes of Daniel Arsham, Chris Stamp and David Nott, will be transformed into Ana’s studio and gallery showcasing her enthralling artworks—a mesmerising journey through poetry, memory, and the vibrant interplay of colour. Guests at Patina are invited to delve into Ana’s world, where each stroke reveals layers of meaning, evoking sensations of intense lightness and boundless interpretation.
At Patina Maldives, Ana will immerse herself in a month-long residency, inviting the Patina Malidves community or guests and team to witness her artistic fervour firsthand. Guests will have the rare opportunity not only to observe her creative process but also to engage with and create art alongside this luminary.
Experience artistry at its most exclusive
Art Exhibition
Experience Ana’s captivating exploration of colour and emotion in her spellbinding artworks displayed at the Fari Atelier.
Art Workshops: Message in a Bottle
As part of a collaborative artwork, Ana invites Patina guests to participate in short workshops, actively contributing to the creation of a permanent installation at Patina Maldives.
Open Studio Session
Join Ana for an exclusive open studio session, offering guests a behind the-scenes look at her creative process.
Ana Pušica residency package
Discover a world where creativity knows no bounds as Ana Pušica, the maestro of contemporary art, transforms Patina Maldives into an immersive canvas of inspiration.
Book now to secure your experience.
For more information and reservations, please visit Patina Maldives or contact
reservations.maldives@patinahotels.com
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