The Lost Year !

The south coast of New South Wales has an economy that is closely geared to tourism.  The season starts before Christmas and reaches its peak before ending shortly after Easter and that peak business cycle provides the income that serves business for the entire year.

This looks like being a lost year.   The fires started just as the holiday crowds were preparing to rush the resorts and evacuation needs saw people trapped on beaches as they awaited recue.   The roads were closed because of the fire danger and this fire season is fast becoming a national emergency that will continue until we get a sustained rain event.   Even the crystal ball gazers can not predict when that will happen.

The image of the south coast in most people's minds is now a vista of burned out houses and ruined forest. In many holiday towns the fires burned right to the waters edge of the beaches and everything is covered in a thick layer of ash.  As a result, resorts that were not even touched by the fire are receiving cancellations for the rest of this holiday season.

The coast economy is geared to making its money during this holiday peak and demand drops away sharply when it is over.  It is not only the accommodation providers who benefit because in summer the area is crowded with day trippers and it is all the little shops that provide their needs.  The cafes and coffee shops are crowded and the butchers and bakers are busy providing the fare for those that park their caravans for a stay at the beach.

Those lost incomes will probably see some businesses close their doors and not reopen.  It may take more than twelve months for the memory of the destruction to fade and the area regain its popularity and the income loss may be too much for some families.  This tourist peak was also a bonanza for the local job market.  Many permanent residents got a job helping out when demand was at its peak.

The government is looking at ways to assist with this business loss because the fires have been a national disaster. It may be possible to offer grants to councils so that they can offer temporary rate relief to residents and car registration costs could be relaxed in areas where the fires have delivered a business loss.  A reduction in fixed overheads may allow many businesses to ride out this financial storm.

What also is needed is a little relaxation from the banks and the owners of property collecting rental in these fire areas.  This is a temporary income loss and a harsh attitude will simply prolong the misery and drive some businesses to permanently shut up shop.  When the fires are finally extinguished it would be helpful if government advertising helps regain the image of a vibrant south coast open for business again.