Tourism industry slams $15m budget pledge as ‘peanuts’
The tourism industry has been angered by the $15 million pledged by the federal government over the four-year forward estimates, saying it is insufficient to help attract more international visitors.
Tourism & Transport Forum chief executive Margy Osmond says the government has missed a key opportunity and is not providing enough funding to sell Australia as a tourism destination.
She acknowledges that international arrivals are increasing due to the low Australian dollar, but says that could quickly end given the lack of funds for global promotion initiatives.
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Tourism Australia’s annual budget is about $175 million. Two years ago the government cut funding by $35 million over four years, even though Scott Morrison, then the treasurer, once headed the Tourism Australia agency. Last year the government gave Tourism Australia $5.1 million extra to cover some currency fluctuations and media cost inflation.
Hotel owner Jerry Schwartz, who owns 14 properties in NSW and Queensland, says it is shortsighted of the government not to properly invest in Tourism Australia.
“You need to invest money to make money, and by putting in peanuts we won’t be able to promote the wonders of tourism and the beauty of the country,” Dr Schwartz says.
“No foreigners will discover we are open for tourism business, and by not investing any money we are losing out on a lot of foreign tourism.
“More than that, it’s not fair to private investors who pour so much money into improving products not to be able to showcase our product to overseas visitors.
“Most tourists who come here come for quite a long time and bring quite a lot of money.”
CBRE Hotels national director Wayne Bunz says it is imperative for governments to invest in tourism.
“Tourism was ignored by the NT and WA governments, who relied on mining royalties. It’s taking these governments years to re-establish their tourism industry in the wake of the collapse of the mining boom,” Bunz says.
“In comparison, the Queensland government did not ignore tourism and it is reaping the benefits of its strong tourism industry, with international arrivals into Cairns growing strongly.”
Osmond says the forum has always recommended more money for Tourism Australia.
“If you have momentum you must invest … it’s an extraordinarily competitive tourism market,” she says.
TTF says that at the very least Tourism Australia’s budget should be increased by $50 million, which would make up for the $35 million it lost in 2017-18.
“It would have brought them back up to parity,” Osmond says.
“We accept it’s not all about promotion, but you can put a lot of money into building attractions and spending money on creating content, but if you don’t combine that with capacity to sell whatever you are doing you have actually defeated the purpose in the market.
“In the end run we have to focus on high-yielding international tourists.”
She says NSW is investing in the marketing of its regions, with a 13% increase in funding. “You invest, you get a return,” she says.
This article originally appeared on www.theaustralian.com.au/property.
