Impact of International Border Changes on Small Businesses

This research note examines the effects of international border changes on small businesses in Australia and New Zealand. It discusses the significant decline in travel due to border closures during the COVID-19 pandemic, highlighting that arrivals and departures fell dramatically in March 2020. The note outlines the gradual reopening of borders starting in late 2021 and early 2022, yet notes that travel trends have not returned to pre-pandemic levels. The document details the economic impact on small businesses heavily reliant on international visitors, estimating a loss of A$72.8 billion in Australia and NZ$16.2 billion in New Zealand due to border closures. It also addresses the workforce challenges faced by sectors like agriculture and hospitality, which depend on international labor. The note concludes with an outlook on the slow recovery of travel and its implications for small businesses, emphasizing that a quick return to normalcy is unlikely.