Tentative steps toward Trans-Tasman travel bubble

From Sky News:

The federal government has today signed a trans-Tasman travel bubble which will allow New Zealand residents to travel to New South Wales and the Northern Territory without being required to quarantine.

Deputy Prime Minister Michael McCormack announced the first step of the deal would come into effect from Friday, October 16.

Under the agreement, any New Zealand resident would be allowed to travel to NSW and NT on the proviso they have not been in a declared COVID hotspot in the 14 days prior to leaving.

“I know that New South Wales, Premier Gladys Berejiklian and I know that the Chief Minister of the Northern Territory Michael Gunner welcome this indeed,” Mr McCormack said.

Assuming a full Trans-Tasman travel bubble follows, New Zealand’s economy stands to gain far more than Australia given it is one fifth the size (in population terms) and is far more dependent on tourism.

That is, a Trans-Tasman travel bubble will deliver more Australians to NZ than it will Kiwis to our shores, delivering a net negative to local tourism.

This doesn’t mean that it shouldn’t go ahead as a pilot for other bubbles. It should. But the likelihood is Australia will actually lose out in narrow economic terms.

Unconventional Economist
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Comments

  1. kiwikarynMEMBER

    NZ doesnt have the capacity to take on a flood of Australians all arriving here. NZ handles 3.8m tourists a year, while Australia does 9.4m. Its not like extra hotel rooms are suddenly going to appear – and there are not very many as it is because most of them are already being used as quarantine centres. All the motels are being used to house welfare beneficiaries. So unless you’re staying with friends and family here, most Aussies will have to get in a queue to book a holiday in NZ. Whereas the 1.5m Kiwis who travel overseas will be but a mere drop in the bucket for the Aussie tourism industry.

    • I suspect that andynyc above is right, that this is really about immigration and not tourism.

    • Trump will drop out.
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      I think Trumpy was losing, so they came up with a way to get him to quit.

  2. kiwikarynMEMBER

    Flights need to be direct. A friend of mine had to fly to Singapore to get a flight to Perth, and spent 18 hours in transit in Singapore airport – thats long enough to pick up a dose of Covid, along with the risk of mingling with all the travellers from other countries flying to Australia on the same flight.

  3. This isn’t great news for the bubble:

    Passengers and crew on a Jetstar flight from Melbourne to Sydney may have been exposed to an infectious passenger.

    The passenger tested positive for COVID-19 in a day-two test in hotel quarantine after arriving in Sydney and is believed to have travelled while infectious, NSW Health said in a statement on Friday./I>

  4. Remember, NZ has an election in 2 weeks. Our PM has a strong incentive to spin good news even if they plan to do nothing about it later. Just watch…

    Bit annoying really, I need to see my clients in Melbourne and that’s gonna be a while before that happens.

  5. NZ will be carrying on about Covid until 2022. Where is their Tourism Minister? Did he die from Covid?
    The announcement is going to do little other than Kiwis looking for work in Australia because NZ still has a $3k fee for quarantine on return.

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