Australia’s coronavirus death toll has remained relatively low compared to most other countries in Europe and Asia, possibly helped by its low population density, isolation as an island nation, and good public healthcare. However, the effect on Australia’s economy was not vastly different from other similar economies. Hardest hit were the hospitality, entertainment, arts, and retail industries, which reported job losses in the hundreds of thousands. As domestic and international travel was restricted, Australians canceled their travel plans en masse, with devastating results for the tourism industry both within the country and abroad. In March 2020, the major travel agency chain Flight Centre announced that 3,800 jobs would be stood down, and in the following month, Virgin Australia Airlines went into voluntary administration. While tourism was arguably the hardest hit, entertainment and bricks and mortar retail was also suffered significant loss of business.
The first waveFrom early March 2020, the Australian government implemented social isolation measures and widespread restrictions on the operations of most food and service businesses. This was followed by temporary closures of public spaces like beaches and popular meeting places. As the number of coronavirus cases continued to rise towards the end of March, the states and territories restricted domestic visitors, and testing for the virus increased across the country. By the end of April, these efforts to flatten the curve appeared to have been effective, and the process of relaxing restrictions began until the winter set in.
The second waveFollowing Australia’s first wave of coronavirus cases, the island nation appeared to be on track as one of the world’s coronavirus success stories, much like its neighboring New Zealand. Australia and New Zealand had even begun discussing the possibilities of a “trans-Tasmin travel bubble” whereby residents of both countries could travel between the two nations without undergoing mandatory quarantine. However, these plans were soon put on hold when COVID-19 cases in Victoria began to rise again in June 2020. Following this increase in cases, Australia experienced a second wave of infections that would prove to be more devastating than the last, with a higher rate of locally transmitted infections and significantly more deaths. State boarders were once again closed, and the Victorian government implemented stage four lockdown restrictions in Melbourne and stage three in the rest of the state. Since the second wave outbreak in mid to late 2020, subsequent outbreaks sparked periodic lockdowns until a major outbreak involving the delta variant of the virus in New South Wales cast Australia’s “COVID zero” strategy into doubt.
Beyond COVID zeroDespite strict border controls and mandatory hotel quarantine for travelers, uncontained outbreaks in the second half of 2021 sent Australia into its third wave and hailed the end of the COVID zero policy. Australia’s new strategy saw a shift in focus from containment to vaccination. In the new national plan to transition Australia’s national COVID-19 response there would be greater freedoms for vaccinated persons and the relaxing of boarder restrictions once 80 percent of the population were vaccinated. Although some Australians are still concerned about the potential side effects of the coronavirus vaccines, the 80 percent target was reached later in 2021.
With vaccination targets reached, Australia progressively relaxed domestic and interstate travel restrictions, as well as reopening international boarders to vaccinated tourists and visa holders at the end of February 2022. After almost two years of restricted travel in and out of the country, patrons and business owners of the hospitality, tourism, and shopfront retail industries, are particularly hopeful that 2022 would be a significant year for Australia’s post-pandemic economic recovery.