Industry groups are hoping the March 3 date to reopen Western Australia's borders will resolve skills shortages and provide certainty for businesses.
Tourism and property groups have welcomed the March 3 border reopening date, hoping it will resolve skills shortages and provide certainty for businesses.
Premier Mark McGowan announced the new date for Western Australia’s borders to reopen in a press conference this afternoon, conceding the state’s Omicron outbreak would continue to grow and the borders were now likely ineffective.
That means the state must now get set for the economic impacts of reopening, both positive and negative.
For example, data from the Australian Bureau of Statistics yesterday showed the number of hours worked nationally fell by 9 per cent in January, with absenteeism driven by the Omicron outbreak on the east coast.
A report by the Chamber of Commerce and Industry of WA last year predicted a $5.6 billion tourism outflow would follow reopening as Western Australians looked overseas for holiday and work opportunities.
But the reopening will provide certainty for businesses and reduce pressure from skills shortages, industry groups hope.
In a statement released this afternoon, Property Council of Australia WA executive director Sandra Brewer said reopening the borders would help alleviate labour and material shortages.
She said the March 3 date would be welcomed by industry, and the Property Council said that reopening would be “the best booster of all”.
“Skills and labour shortages have created serious challenges for the development industry, which have become more acute in recent months,” Ms Brewer said.
“Property Council research released in January found cost escalations and labour shortages were significantly impacting the apartment pipeline and risking housing affordability.
“Today’s announcement will provide a much-needed relief valve, enabling the influx of skilled migrants and visitors to give local businesses the reinforcements needed to continue and complete the housing, health and infrastructure projects that WA needs.”
Chamber of Commerce and Industry of WA chief executive Chris Rodwell said the decision was a wave of relief for thousands of WA businesses.
“It will be a huge weight lifted for many businesses, and will begin to ease the uncertainty, supply chain disruptions, higher costs and chronic worker shortages experienced by WA businesses and the economy during this pandemic,” Mr Rodwell said.
“We also welcome the decision by the state government to develop a package of financial support for businesses impacted through the transition phase.”
He said the relief package should apply to all businesses suffering a decline in activity and not discriminate based on sector.
“The government should also look to broaden the eligibility of its existing Industry Support Package, which applies to a limited range of businesses negatively impacted due to the delay in the February 5 border reopening,” Mr Rodwell said.
But CCI said allowing only tripled vaccinated travellers, and the rapid antigen testing requirements, could be a barrier for tourism.
Tourism Council of WA chief executive Evan Hall said the reopening meant businesses could now win back visitors and retain bookings, and said the industry wanted significant support from the government to do so.
“For more than two years, border restrictions have devastated Western Australia’s international and interstate tourism business," he said.
"Many tourism operators have struggled to survive and will need support to recover now that the border is finally open."
Earlier, the Australian Hotels Association (WA) declared the government should oppose onerous capacity restrictions, particularly a one patron per four square metre rule.
That restriction would damage the viability of hospitality and cost jobs, the hotel lobby said.
The government instead announced a two square metre rule, effectively allowing double the capacity of a four square metre rule.
AHA WA chief executive Bradley Woods said implementing the four square metre rule used in South Australia would be “hospitality-destroying”.
“If any capacity limits are imposed by government, they should only apply for a very limited period of time and be complemented by financial compensation that recognises the inevitable loss in earnings,” he said.
“Those advocating for unnecessarily harsh density limits ignore the fact that WA has the broadest mandatory vaccination policy in the country and the majority of eligible Western Australians are already triple vaccinated.”
Tourism Council’s Mr Hall also said the square metre rule would have a heavy impact on events, tourism, and hospitality businesses.
“Events have borne the brunt of border closures and restrictions,” Mr Hall said.
“Caps on events need to be lifted as soon as possible.
“The eastern states are now removing business restrictions and travel testing requirements.
“WA cannot afford to be more restricted than the east coast for longer than necessary, or we will lose events, students, workers, and tourists to states with less severe restrictions.”
