MICE Sector Needs Bigger Federal Boost

The Business Events Council of Australia (BECA) has called for an immediate injection of $20 million in Federal funding to arrest an alarming decline in the number of conference, exhibitions and incentives visitors coming to Australia.
BECA Chairman Geoff Donaghy said an immediate tax incentive was also needed to boost the domestic market and employer training in such a way that Australian companies would be encouraged to hold their business events at home rather than abroad.
Donaghy explained "the latest ABS figures show that visitor arrivals for business events fell by an alarming 23 per cent in 2009 over 2008, with convention numbers faring worse than overall tourism visitor numbers.
âThis continues a disturbing picture that has been growing. Australia has slipped from fourth in 2000 to 14 last year in the International Congress and Convention Associationâs world rankings for international conferences.�?
Donaghy said BECAâs call for an immediate injection of $20 million had been submitted to Canberra in a pre-Budget request seeking a:
⢠$10 million Business Events Bid Fund to assist organisations bidding to host international business events in Australia,
⢠$5 million International Delegate Boosting Fund to help boost attendance at business events already scheduled, and
⢠$5 million Branding and Marketing Fund to enable Tourism Australia to launch a strong overseas campaign to restore Australiaâs profile as one of the worldâs top 10 business events destinations.
Donaghy welcomed the $1 million bought forward from Tourism Australiaâs 2010-11 business events budget for immediate delegate boosting, but said much more is needed.
âThe move provides some current help, but leaves next yearâs budget in jeopardy.
âAn immediate R&D-type tax incentive offering deductions of 120 per cent is also needed to encourage Australian companies to spend more on employee training, foster face-to-face information learning networks and stage their business events in Australia rather than abroad.�?
Donaghy said conference, exhibitions and other business events attracted high net worth visitors who often travelled with family or a friend and spent five times more on a daily basis than tourists visiting for leisure.
âMajor international congresses and exhibitions not only attract thousands of overseas delegates, they also showcase Australian innovation and creativity and forge relations that are crucial to our ongoing industry and trade development.�?
But this lucrative market was fiercely competitive and Australia had been losing market share at an alarming rate.
âOur Asian competitors in particular have seen the true value of business events travel and are outpowering us in marketing dollars.
âFor example, Singapore responded to the GFC by announcing a $90m tourism âboostâ fund aimed largely at building its business events sector,�? Dongahy concluded.