Tourism Equipment Finance is harder to obtain than ever before. Many banks have restricted their lending to certain industries to minimise their exposure through COVID-19. Lending issues continue to dominate during COVID-19, with access to credit for tourism equipment finance being prevalent.
$ 3.5 billion industry Pre COVID-19
Queensland tourism is a major contributor to the state’s economy and employs over 25,000 people per annum. Without ongoing support there will be at least 11,000 jobs disappear. The tourism industry has been one of the hardest hit through the 2020 COVID-19 epidemic. Although there have been some business assistance packages to date, it is nowhere near enough. According to Tourism Tropical North QLD’s(TTNQ)CEO Mark Olsen, business assistance in the region must be extended for tourism business to survive.
Call for More Gov Assistance
The Tourism Tropical North QLD’s (TTNQ)and other organisations are lobbying intensely for more government support. The Australian Tourism industry is too big of a contributor to the Australian economy for their request to be refused! Annastacia Palaszczuk has announced an $11 million funding to help support tourism industry projects in Queensland. This is little support for an industry that is losing $7 million dollars per day. Much more support is needed, especially in the far North Queensland areas. With the likes of TTNQ and CAFBA (Commercial and Asset Finance Brokers Association of Australia) more support is expected to come, especially for the far North Queensland areas.
North Queensland heavily relies on the aviation industry to transport their tourists. Usually Cairns and far north Queensland receive 88% of their travellers via aeroplane. At the moment Cairns is only receiving 25,000 passengers per month. Usual figures are seen to be at around 100,000 per month.
Cairns is Australia’s Busiest Airport
The busiest domestic flight in Australia at the moment is Brisbane to Cairns. Currently Cairns is doing 30% of their pre COVID level of sales. Pre COVID figures showed Thirty percent of tourism to Cairns is from international tourists, 30% from Queensland, 20% Victoria & 20% New South Wales. The thirty percent of international travellers alone generate nearly $1B per year. With COVID these international travellers are not expected to return until July 2021.
A high capacity of tourists use flights to travel to North Queensland & use hotels for accommodation. The sad statistic is that North Qld tourism is losing $7m per day with an estimated $2.2billion by the end of this year. Airports & hotels are running at 30% capacity. Another interesting statistic is that only 10% of all tourist traveling to far north Queensland actually visit the Great Barrier Reef.
NQ Tourism needs Borders Re-opened
Border closures are killing the Australian Tourism industry. Tourism has been the backbone of our Queensland economy. State borders could be opened by the end of this year. Typically, people won’t venture too far from home when borders initially open. With Australians love of travel, the tourism industry is confident our Australians will support this suffering industry. When the government does answer to the call for assistance though, SMEs (small & medium-sized enterprises) will need access to tourism equipment finance products to drive revenue and jobs.
Businesses Need Tourism Equipment Finance for Recovery
The industry will need the support of the finance sector when the air travel numbers increase, and the border restrictions are over. Efficient reliable equipment is essential for cost effective operations & COVID recovery. The IT processes with the latest machinery is streamlining jobs and substantially increasing productivity.
Access to tourism equipment finance has been made even more difficult during these COVID times. Banks and lending institutions need to loosen up on their stringent tourism equipment finance and business lending to support the tourism industry and the recovery of our economy.
CAFBA (Commercial and Asset Finance Brokers Association of Australia) has been lobbying to the government & regulators to ease restrictions on lending for small businesses.
Experts assist with Tourist Equipment Finance
Many borrowers for tourism equipment finance are confused & frustrated with the complexity of loans available. With their frustrations they simply opt for the finance with the lowest interest rates. These loans invariably are NOT the cheapest tourism equipment finance. Low interest rate loans often have hidden costs with fees & charges and rigid terms and conditions. (For more details refer: “Avoid Dealership Finance”).
Tourism Equipment Finance Brokers Come to Rescue
Equipment finance brokers play a vital role in supporting these businesses to acquire tourism equipment finance for purchasing necessary equipment like boats, work vehicles and buses. Businesses are finding the complexity of finance applications just another nightmare they are facing when business is so tough. Equipment finance brokers have the know-how to breakthrough these comprehensive and restrictive processes that lenders are implementing. Their connections with reputable lenders assists businesses with getting cost effective finance for the equipment and machines necessary for operations and growth. This lifeline assistance from equipment finance brokers is offered at no or minimal fees to businesses.
Tourism Equipment Finance Brokers are Lifesavers for Businesses
Equipment Finance Brokers can get you better rates than going direct to banks and lenders for your tourism equipment finance. Like wholesalers and bulk buyers, equipment finance brokers are given special rates from banks and lenders to on-sell. They can find you the cheapest rates with the best terms and conditions. They also do the hard yakka with applications at little or no cost to your business.
The government’s $150K instant asset write off scheme, attractive finance options and various tax benefits allow businesses to invest in the best efficient equipment for recovery and growth. There are many tourism equipment finance options available with no upfront cash needed, but the banks & lenders have made fund access difficult. These options can be overwhelming and confusing. Specialist equipment finance brokers support small businesses. They have the expertise to seek the right cost saving tourism equipment finance needed to assist the North Queensland Tourism recovery.