Australia's tourism industry defends tourism promotion

By Y. Sulaiman l eTN Asia/Pacific
Australia's travel industry has made a common stand to defend itself over a report questioning state governments' yearly tourism promotion fund of A$237 million.
The report, by independent think tank Australia Institute, had found state governments are actually competing with each other for the tourism dollar.

“It really is just state one-upmanship, which leads to tourists swapping rather than any public benefit for Australia,” report author Christian Downie said.  “It is a gift from taxpayers to tourism operators that merely pits state against state."
According to the report, spending for domestic tourism marketing and major event attractions often serve only to shift tourists, events, jobs and associated revenue from one part of the country to another, at huge costs to the taxpayer.

Christopher Brown, managing director of Tourism and Transport Forum, rebutting the findings said the report is a "slap in the face" for state tourism bodies, pointing out the industry employs a total of 250,000 workers regionally.
“By promoting domestic tourism, spending and traveling at home, the states are boosting the local economy,” added Brown. “Domestic tourism is responsible for 90 percent of the tourism expenditure in regional tourism.”
The strongest objection, however, has come from the Australian Tourism Export Council (ATEC) claiming the report has completely "ignored" the states’ contribution to Australia’s inbound tourism market.

“The money spent by state governments on marketing and development has gone towards attracting international visitors to Australia," ATEC said.
“The states are getting Australians to take a life-enriching holiday rather than buy a plasma screen TV, or a new car,” ATEC managing director Matthew Hingerty said.  “Is giving indigenous communities a chance at economic independence a waste of money? How do you put a price on economic benefits tourism is generating for hard-oppressed regional and regional communities?”
Higerty added, by improving event-hosting and management facilities, Australia will be able to compete for the tourism dollar on an international level in the MICE market. 
“It brings high-spending visitors to other parts of Australia, increasing our international profile," he said.  “Hosting the Olympic and Commonwealth Games, British Lions Rugby Tour, Rugby World Cup, Ashes Cricket Tour brings high-spending international visitors to Australia,” he said.

Chief executive of Queensland Tourism Industry Council, Daniel Schwind, said the Queensland state government spends about $40 million yearly to promote tourism in the state, without which regional economies would be put at risk and returns from taxes will be affected.  “The report has added zero value to any informed debate about tourism policies and investment,” he said.
Australia’s tourism sector is worth an estimated $23 billion yearly to the Australian economy, according to ATEC.

July 31, 2006   Posted in: Australia