Border businesses are struggling, having experienced another quarter of declining sales revenue, but campaigns designed to bring city money into drought-affected regional areas could re-stimulate the economy.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
NSW Business Chamber's regional manager for the Murray and Riverina area, Andrew Cottrill, said the September quarter's business conditions survey showed the ongoing drought was hurting businesses.
"Communities right now across the Riverina and Murray region are really struggling and doing it tough," he said.
"Businesses have once again reported a further decline in sales revenue, profit and planned capital expenditure."
IN OTHER NEWS:
Mr Cottrill said impact of the drought had filtered into almost every Border industry.
"Whilst the drought immediately impacts primary industries and agriculture, it flows onto all regional businesses: retailers, fast food shops, tradies - they all see a large downturn," he said.
"In times of drought, especially extended drought, there's less money circulating in regional economies."
Businesses have once again reported a further decline in sales revenue, profit and planned capital expenditure
- Andrew Cottrill
Australian Industry Group's Tim Farrah said getting external money into the community was essential.
He said there were currently a number of campaigns run by city groups or businesses encouraging people to buy or visit regional areas to help stimulate the economy.
Last week, QANTAS launched discounted one-way fares from Sydney to parts of regional NSW, including Albury, in a bid to draw city residents to drought-affected areas.
From December 2019 to mid-2020, flights from Sydney to Albury, Wagga, Tamworth, Dubbo, Armidale and Moree would be $119.
Mr Cottrill said tourism was becoming a much more important component of many regional economies and the gesture from QANTAS would hopefully put money into that sector and help stimulate the wider economy.
Similarly, campaigns like Buy from the Bush, which encourages city residents to purchase Christmas presents from regional areas, gets outside money into a region's stagnating economy.
Mr Farrah said while it's impossible to know the impact of either campaign at this stage, Australians had a long history of stepping up to help those in need.
"We know Australia is amazing in responding when the call goes out for them to support something," he said.
"Whether it's Relay for Life or the Burrumbuttuck Hay Runners... people tend to get on board.
"It will raise awareness if nothing else."