Urgent action needed for Australia to meet 2020 tourism goals

Urgent action is needed for Australia to have any chance of reaching its Tourism 2020 potential target of growing overnight visitor spending to $140 billion, according to Tourism & Transport Forum (TTF) analysis of new forecasts.

The Tourism Research Australia forecast shows total expenditure growing at 1.7% annually over the next decade, which would see spending in 2020 reach $115 billion – just scraping in at the bottom end of the Tourism 2020 target range and well short of the industry potential of $140 billion.

TTF Chief Executive Ken Morrison said the right support would see tourism grow even faster, stating “tourism is an economic development strategy for Australia that can provide prosperity, jobs and business opportunities across Australia, but a business-as-usual approach will not deliver the acceleration needed to capitalise on the capacity of the sector to drive economic growth.

“TTF’s national agenda Australian Tourism: Backing Our Strengths shows the key areas of support and reform needed to capitalise on this opportunity, maximise the potential of tourism and take full advantage of the people boom out of Asia.”

TTF identifies Australia’s key tourism priorities as:

1. Increased funding for Tourism Australia;

2. Visa reform to allow three-year multi entry visas for Chinese visitors;

3. Reducing the cost and complexity of visa applications;

4. A review of penalty rates to recognise the needs of tourism and hospitality; and

5. Reforming the tax system to encourage investment in tourism infrastructure.

Morrison added “the $140 billion target is achievable with the right support from government and with the right policy framework to facilitate private sector investment in new and refreshed tourism products and experiences.

“Tourism already directly employs more than 540,000 people and supports an additional 385,000 indirect jobs across Australia and the industry has the capacity to provide more jobs and generate economic activity as mining investment and heavy manufacturing continue to decline.

“Deloitte’s Positioning for prosperity? Catching the next wave report named tourism as one of five super-growth sectors that can deliver a combined $250 billion to the Australian economy over the next 20 years.

“Investment in demand-driving infrastructure is critical, which is why we are so supportive of projects like Darling Harbour Live in Sydney, the Adelaide Convention Centre expansion, and the proposed upgrade of Brisbane’s cultural precinct.

“However, that must also be supported by additional funding for marketing, events, integrated transport and precinct activation to maximise the returns on those investments.

“Governments across Australia have committed to the Tourism 2020 targets and acknowledge that investment is needed to help industry reach those goals.

“Any reduction in support is detrimental to Australia’s chances of reaching those goals, does not back government rhetoric and means Australia will miss out on the economic growth it needs to make up for declines in other areas.”

The latest Tourism Research Australia forecast shows that the number of international visitors to Australia is expected to grow 6.8% in 2013/14, fuelled by improving global economic conditions and growing aviation capacity, followed by 5.7% growth in 2014/15 and 5% growth in 2015/16, which will see Australia welcome more than 7 million international visitors next year.

International visitation to Australia will grow at an average 4.5% per annum, reaching 9.6 million in 2022-23. 

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