State Governments get a TTF caning.

The Tourism Task Force, more recently titled Tourism and Transport Forum, has commenced what it appears may become a nationwide attack on State Governments’ investment in tourism with a report in Adelaide’s Sunday Mail attacking the South Australian Government’s lack of investment in tourism on Sunday, being followed on Monday in Brisbane’s Courier Mail with a report claiming that the Queensland Government is also failing to properly invest in tourism marketing, with annual budgets stagnating in recent years.

TTF’s Managing Director Chris Brown said over the weekend in Adelaide’s Sunday Mail that South Australia needs to lift spending on tourism by $10 million a year to arrest a fall in visitors and that that the slump was due to the State Government cutting spending on tourism promotion.

Mr Brown’s comments come after the release of data from Tourism Research Australia showing South Australia was one of the nation’s worst performers last year, with falling visitor numbers and spending, that that the State had 800,000 fewer tourists last year compared with 2004, while spending by visitors fell by $128 million and a fall of 3.2% in visitor spending last year, behind only Tasmania with a fall of 3.3%, in contrast to the Northern Territory, which saw a 26% rise in visitor spending.

In dollar terms, spending by tourists fell by $128 million to $3864 million and the total number of visitors fell by 5.1 per cent, to 15,046,541 – 334,541 of them international visitors, a rise of 10,739 on the previous year.

“It’s a simple equation – you find some money to get ads on TV and in the papers, and people will come,” said Mr Brown.  “When the SA Government was elected they slashed spending, but the economy in SA has turned around and it is time to re-invest in tourism”.  “There are up to 100,000 jobs in the wider tourism sector in SA, but jobs are being lost due to lack of government spending”.

He added that tourists would continue to bypass SA unless the Government increased spending, saying, “regional SA, where tourism is vitally important in particular, is feeling the pain.”  “You need a base level of $10 million a year put back in, which is peanuts compared to the damage being done to the industry by not investing.”

“You’ve got one of the best tourism ministers and chief executives in Jane Lomax-Smith and Bill Spurr and a very good tourism commission – but no money.”

A spokesperson for Tourism Minister Jane Lomax-Smith defended the South Australian State Government’s position saying that the State Government was committed to supporting the industry.

She said, “the State Government has already announced significant funding commitments related to marketing South Australia in 2006, including the $1.1 million Eventful Adelaide campaign which resulted in Adelaide’s hotels enjoying the highest March occupancy rates since the days of the Grand Prix.”  “The Australian Tourism Exchange, supported by $2 million in State Government funding, will showcase SA to hundreds of travel wholesalers from around the globe in June.”

Mr. Brown’s State Government tourism investment attacks moved north to Queensland on Monday with reports in Brisbane’s Courier Mail saying that despite growing competition from destinations around Australia and internationally, budgets for tourism in Queensland have been “stagnant”.

“We recognise state governments invest heavily in tourism-related infrastructure but without marketing investment to drive visitation, the hardware will be under-utilised,” Mr. Brown said.

Queensland Tourism Industry Council chief executive Daniel Gschwind joined Mr. Brown, saying that while the Queensland Government was pro-active in working with the industry, the funding made available for marketing and promotion had not increased over the past few years. 

Government investment in Tourism Queensland was $45.4 million in the year ending 2002, but this year it was down to $44.4 million. “It is not going anywhere and has not increased with increasing competition overseas or with the size of the industry,” Mr. Gschwind said.

“The industry is not looking for corporate welfare, we are looking for investment that generates returns for regional communities and for the State Government through GST revenue.”

Queensland’s Tourism Minister Margaret Keech defended the Queensland Government’s support of the industry, saying it was “unmatched by any state or territory government”.   “We are investing heavily in marketing our magnificent tourism product both nationally and internationally, with a cooperative spending budget this year of about $32 million,” Mrs. Keech said.

Mr. Gschwind said the State Government’s upcoming budget and its long-term tourism strategy, currently in development, were opportunities for the QLD Government to invest in the industry.

He said the industry was concerned Queensland’s current health crisis would mean the Government would not easily part with funds for tourism.

“The tourism strategy must be resourced appropriately so it can be effective,” he said.

“We know that the minister is committed and we are right behind her but there must be some funds attached.”   Mr. Gschwind said a funding boost was not about grabbing market share from other states.  “We have to make a tough case to even get people to take holidays – it is about making tourism a top-of-mind consumer choice and we face competition from other spend on things like technology, white goods and housing,” Mr. Gschwind said.

Mrs. Keech said the Queensland Tourism Strategy, the draft of which is expected next month was a long-term blueprint for industry prosperity and sustainability.   “It has also strengthened the partnership between the Government and industry,” she said. “The strategy is fast taking shape. It will highlight the challenges and opportunities for the industry and set us on the path to continuing prosperity.”

With the attack on the States appearing to emerge as a Federal Government versus the States battle, Federal Tourism Minister, Fran Bailey joined in the fray in the Courier Mail by hitting out at all State Governments for neglecting investment in tourism.

Ms Bailey said the Australian Government had invested $453 million in attracting more international tourists to Australia, which was its primary tourism responsibility.   “State governments should not walk away from their primary tourism responsibility – promoting their own state to Australians,” she said.

“With state budget season fast approaching, it is time for state governments to face up to their responsibility and invest now to promote the best their state has to offer.”

Ms Bailey said tourism accounted for $32.6 billion of total GDP in 2004-05, a growth of 1.9 per cent.

Since 2002-03, the domestic tourism industry’s share of GDP had fallen from 3.2 per cent to 2.7 per cent, while the international share remained stable.

“The states have been riding the crest of the Tourism White Paper wave for too long,” Ms Bailey said, adding, “We have done our bit, now its time for State Treasurers to show they mean business and help reinvigorate the domestic tourism industry, their primary responsibility.” 

Report by The Mole