Federal cuts put major South Australian tourism developments in doubt

A decision by the Federal Government to put a national fund supporting tourism development on hold has thrown almost 60 South Australian tourism projects in doubt.

The Tourism Industry Regional Fund (TIRF) was established in 2012 as a four-year, $48 million program to upgrade accommodation, develop new tourism products, and meet increasing demand created by Tourism Australia's marketing initiatives.

Grants of up to $250,000 were available to successful applicants on a dollar-for-dollar basis.

However, with the Federal Government advising that TIRF's next round will not go ahead, South Australian

Tourism Minister Leon Bignell reminded the South Australian Parliament last week that South Australian tourism operators had done well in last year's first round of TIRF grants.

Minister Bignell stated "South Australia had 15% of the winning applications and 18% of the money.

"That's $3 million of Federal Government money that went directly into South Australian

businesses to help improve what we have here."

Minister Bignell said a range of excellent projects will now miss out because of the Federal

Government's decision to axe the program, adding "59 worthy tourism projects around the State are now in doubt because of the Federal Coalition Government's ill-conceived move to scrap the second round of funding.

"These businesses and tourism operators have spent a considerable amount of time and money preparing their applications. Some have even engaged consultants at great expense to themselves.

"The Federal Government's decision effectively bins some great SA projects, as well as another 300 tourism projects around the country."

Minister Bignell said despite the Federal decision, the South Australian Government will continue to work closely with South Australia's tourism industry to reach its economic targets.

He added "tourism is crucial to our State's economic future. It already delivers $5 billion a year to the State's economy, and employs more than 30,000 people.

"We're working with the industry to increase the economic benefit to $8 billion by 2020, which is in line with the Federal Government's ambition to develop a $140 billion tourism industry in Australia by 2020.

"The South Australian Tourism Commission has deliberately aligned its strategies with the

Federal targets, so it's very disappointing the Coalition Government has withdrawn support for regional tourism development."