Call to restore Tasmanian tourism funding

The cutting of Tourism Tasmania's marketing budget has cost the Tasmanina economy up to $85.5 million and almost 900 jobs, according to a new report.

Released on the eve of the launch of Tourism Tasmania's new branding campaign, the report by Deloitte Access Economics suggests that increasing spending on tourism marketing would significantly boost the Tasmanian economy when many other sectors were struggling.

The report shows that every $1 million invested to market tourism generates $19 million for the economy and highlights that the Tasmanian Government's decision to cut $4.5 million from Tourism Tasmania's marketing coffers in the 2010-11 Budget cost the state about $85.5 million.

The report, commissioned by the Tourism Industry Council of Tasmania (TICT), said each $1 million would also create between 68 and 218 jobs, bolstering the state's struggling economy.

TICT Chief Executive Luke Martin explained "we've always known marketing was key but we've never been able to show it in black and white terms until now.

"The Government has been telling us we need something like this to demonstrate our case and now we've got it we want them to respond appropriately restore the funding and invest in this state's economy."

The Tasmanian tourism industry says the report proves it is a false economy for Governments in tight budget circumstances to divert funding to 'frontline' services at tourism's expense.

The report shows tourism boosts the economy to such a degree frontline services benefit directly and substantially with Martin adding that reinvestment would result in a fast six-month turn-around on money back.

Martin stated "it's not like infrastructure where you build something and 10 years later you see the benefit put the money in and the visitors are here six months later, marketing is that effective."

The research commissioned by the industry reveals "a massive lack of awareness of the best tourism experiences available in Tasmania" with half of potential visitors having never heard of the Port Arthur experience.

The report also shows:

• Tasmania's poor economic performance compared with the rest of the country and a poor prognosis for the future;

• Industry sectors that Tasmania most relies on are "firmly in the economic slow lane" while tourism has huge unharnessed potential;

• Tasmania is hugely attractive to potential visitors who actually see advertising (those who see some form of advertising for Tasmania are up to three times more likely to visit and 55% of those who have seen advertising are considering coming here, compared with 36% cent who have seen no advertising);

• A sharp decline in visitors to Tasmania in the past few years aligns with the significant decline in marketing expenditure.

Deloitte Access Economics report author Lachlan Smirl said the investigation made it obvious increased expenditure would result in a significant positive impact on the Tasmanian economy.

Smith told the Hobart Mercury "we've found that the demand exists but awareness needs to be raised for that demand to be harnessed.

"It's about injecting into the Tasmanian economy."

Deloitte's investigation began in November and involved "complex, technical work" using the preferred modelling tools utilised for government economic analysis.

The report was presented to the TICT board this week and is to be forwared to the Tasmanian Government.

For more information go to www.tict.com.au/