The Roundtable meeting was convened by the Federal Minister for Small Business, Independent Contractors and the Service Economy, Dr Craig Emerson, and many businesspeople who owe their livelihoods to tourism attended.

Since late in 2006, there has been a slight trend down in short-term visitor arrivals to Queensland. Prior to this, the trend was up – peaking at a growth rate of 14% in March of 2005.

The number of short-tem visitor arrivals to Queensland peaked at 1.64 million in May 2006 and has edged down to 1.52 million in September 2009. This is 124 000 less visitors or 7.5% down.

David Bell, Chief Executive of the ABA, said: “Unfortunately for tourism-related businesses, the annual growth in visitor arrivals of 4% which was enjoyed before the global financial crisis has not continued. Now the annual change is showing a 2.4% fall.”

“Banks recognise and understand that businesses in the local area may be frustrated that the previous growth has not continued. Especially when we can see from ABS data that the number of tourism accommodation establishments, such as hotels and motels, have continued to increase while tourist arrivals have decreased.  Despite the more challenging environment in the tourism industry in Queensland, banks are continuing to lend to viable businesses.”

“The changes in the financial environment and the domestic economy have affected the cash flow of many business customers.  The current economic conditions mean that banks may require more information, covenants or new conditions may apply to businesses if they are seeking to re-finance or apply for a loan in the current environment.”

“It is important that banks continue to make prudent decisions on lending. Obviously it does not make business sense to lend to a customer who cannot repay the loan. We need to remember the vital role played by sound lending in restoring economic growth and we must work together to get through these difficult times.”

Mr Bell added that if businesses are encountering problems, it is best to get in touch with your bank as quickly as possible and together work out a strategy for keeping on top of your loan. Many banks have specialist staff that assist customers who experience hardship.

Some fact sheets may be of assistance:

1. “Applying for a loan” (jointly produced by the ABA and CPA Australia).
   One of the key challenges for many small to medium businesses is working out how to approach the bank for a loan. Small businesses often look to finance their business needs with debt. This fact sheet will discuss how small to medium businesses can plan to obtain bank finance.
   
   
2. “Small Business and Dealing with Debt – how banks can help if you are experiencing financial difficulties”.
   This fact sheet provides phone contacts for the staff within banks that assist the customer with the issues related to financial hardship.

These fact sheets are available on the ABA website: www.bankers.asn.au.