Tourism Decline causing Financial Strain for Cities Worldwide
For many cities around the world, tourism is a major source of income. Adelaide, the capital city of South Australia, is among them. Like many popular tourist destinations, Adelaide is suffering financially from the COVID-19 pandemic and the resulting decline in tourism.
With a local population of only about 24,000, Adelaide is a beautiful city that usually welcomes 300,000 visitors each day . It is well known for its wineries, for wine tastings, and branding.
photo credit: City of Adelaide
In addition to its wineries, tourist attractions also include sporting events, the Adelaide zoo, the University of Adelaide and much more.
International flights are into the country are still largely banned from most areas. Additionally, interstate travel within Australia is also subject to many restrictions.
Those who are allowed to travel into the area are subject to a 14-day quarantine in most cases. This is another factor leading to a drop in tourism.
What is happening in Adelaide city is not unique. Cities which garner a lot of revenue from tourism are in a similar situation.
The drop in tourism dollars creates a ripple effect throughout the local economy.
It begins at the tourist attractions, and then hits the nearby shops and restaurants. As the workers at these locations lose wages, the merchants that they frequent also start to lose revenue.
As this cycle continues, the financial decline in many areas can begin to impact local government and the public services which they provide.
In Adelaide, the government is working to re-vitalize the tourism industry. They are providing vouchers to would-be tourists to partially subsidize their accommodations.
It seems like a smart approach. The vouchers lower the cost for the visitor, thereby encouraging them to travel. At the same time, the government money is guaranteed to make its way directly back to the local economy through the hotels.
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