VTIC acknowledges challenges from cuts to tourism funding in Victorian budget

The Victoria Tourism Industry Council (VTIC) has acknowledged the challenges facing the industry in the wake of the cuts to funding for major events and tourism promotion in the 2024/25 Victorian state budget.

VTIC Chief Executive Felicia Mariani said there were few surprises given the industry was steeling itself for a very challenging budget hand down, with that concern becoming a reality as budget priorities shifted to supporting families, weathering the cost-of-living crisis, and focusing on core social services of health, education and emergency services.

Mariani advised “in a tough fiscal environment this budget has clearly defined the priorities for the Victorian Government over the next four years, and the visitor economy will take a back seat to the delivery of core services and mitigating the strains of the current cost of living pressures.

“It’s incredibly hard to come to terms with the slashing of the destination marketing budget for Visit Victoria from $32.5 million in one year to $32.5 million over four years.”

“This is a significant body blow in an environment where we are trying to overtake Queensland in the number two spot for total tourism spend, a position we forfeited during Covid.”

However, Mariani (pictured) welcomed business and major events having retained significant budget allocations as priority focuses to drive visitation, noting continued funding in these areas along with support for Geelong’s Nyaal Banyul Geelong Convention and Events Centre and $6.5 over four years for the Victorian Festivals Package.

Mariani noted “pleasingly, this festivals package will finally see smaller events and festivals across Greater Melbourne eligible to participate in this fund.”

Adding that regional tourism structures will be critically important in an environment where Tourism Victorian will not be funded to previous levels, Mariani added “while disappointing, the outcome is not surprising and as an industry we will need to think long and hard about how we manage our relationship with government over the next two years and reaffirm our position as an absolute priority for the economy of this state.

“As the peak industry body for the state’s visitor economy, VTIC will be leading this challenge with industry to map out a course of action for the next two years.”

Click here to view VTIC's 2024/25 State Budget Summary.