Social Market Solutions: The New Tourism?
Denis Bright invites discussion on new funding options for tourism promotion at national and regional levels.
The extent of tourism in national and regional economies in Australia is difficult to estimate precisely. Formal statistics probably underestimate the value of the tourism to the national economy. Is there indeed really a precise dividing line between high profile jet-setting and the more familiar Aussie outings to the town, country or coast? Both sectors make valuable contribution to Australian tourism.
Tourism Australia makes ongoing estimates of size of the tourist economy in its annual reports.
Research and marketing operations within Tourism Australia are achieved with minimal staffing levels of just over 200 in both local and overseas locations. Net national government expenditure on Tourism Australia is a lean $138 million for 2014-15.
This national commitment is beneficial to the state and territory tourism corporations which strive to support the macro-perspectives of Tourism Australia.
Tourism and Events Queensland (TEQ) relies on government funding for about 90 per cent of its revenue base of approximately $100 million.
Similar promotional agencies are based in the other states and territories.
TEQ provides invaluable feedback on tourism and popular events across Queensland.
TEQ research shows the importance of domestic tourism across Queensland in every region.
Commitment to affordable domestic tourism deserves a much higher priority particularly in regional areas like Townsville which are less exposed to international tourism
Australians of all age groups would take more advantage of affordable tourism.
This traction for affordable tourism would increase the popularity of the tourist sector in both distant regions, as well as promotion of cultural and artistic events.
New niche markets exist for all groups including the seniors sector.
Getting more people on the move and at local events can have a transformational effect on regional economies.
The Queensland National Parks Service offers affordable tours of the most popular cave formations.
Despite overall federal budgetary restraints under the federal LNP since 2013, expenditure on Tourism Australia was allowed to increase. This welcome national commitment was supported by allocations from most states and territories, regional tourist agencies, local authorities and tourist operators themselves.
Queensland under the former LNP State Government led the way in cutting expenditure on tourist promotion in 2013-14.
The Queensland LNP’s desperate measures in the interests of budget repair do highlight the financial problems facing state, territory and regional tourist agencies.
New Tourism must address these problems to overcome past mistakes in the interests of short-term budget recovery strategies by the former Queensland LNP government.
Revitalization of the finances of TEQ and other state or territory based tourist promotion and research agencies require greater financial sustainability at a time when budget repair processes are paramount.
One largely untried financial mechanism involves opening up such government funded agencies to commercial investment within Infrastructure and Community Development Funds at state and territory levels.
Money invested from within Australia and overseas would generate returns on a similar basis to the current commitments by the Queensland Investment Corporation (QIC) in support of its own Q Super Fund. Key profitable sectors such as investment in the money market and enterprise acquisition would be able to fund less profitable tourist outreach and event promotions.
Independently run Tourism Commissions at national, state, territory and regional levels could generate their own income from both commercial consultancy and training programmes for new staff members. Modest profits generated could sustain tourism and transport options which are not possible under existing austere funding regimes.
As pressure from the LNP encourages even progressive governments to cut commitments to national tourist icons like the rail services to the Cairns Outback, the dollars generated by the profitable consultancy services in an expanded TEQ would provide invaluable support for local events, transportation links and sustainable indigenous tourism projects.
With its focus on the needs of the Australian communities, New Tourism is in essence a programme of social isolation as well as a successful economic activity. Its success consolidates the meticulous research conducted by tourism promotional agencies at all levels.
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Return to home pageA Townsville tourist operator recently complained in the local newspaper about Chinese tourists not spending money on Magnetic Island, tourists are seeking new sights, new environments, new culture. They don’t necessarily want to buy souvenirs in every city or town they visit. The tory greed coming to the fore. No wonder the tourists were grim faced to him, he approached them ‘in a friendly way’ obviously they saw straight through him and understood that he was only being ‘friendly’ because he was after the dollars in their pockets.
All this tourism, when there’s (probably) coal under the Balancing rock.
http://www.cape-york-australia.com/image-files/266x400xchillagoe-mungana-caves-national-park-.jpg.pagespeed.ic.T2bx-6x8Yg.jpg
I’ll support most pragmatic social enterprises for tourism, if they mean the revenue raised is pumped back into environmental protection programs that save trees, marine environments, national parks etc while boosting job opportunities for people displaced from archaic industries such as coal and native forest destruction.
Thanks Denis for reminding of the essentially domestic component of Australian tourism. Weekends away and nights out at events are all part of affordable new tourism and have multiplier effects on regional economies.
Tourism in regional Queensland could do with a boost!
Some many beautiful options out there, which I think a lot of people don’t know about (particularly domestic residents). I encourage everyone to get out there and explore the beautiful land and learn about the history.
Everyone wins, the economy, culture and the community.
North Queensland has a network of good regional bus connections to exotic places like Bingle Bay. In Townsville there are regular jet ferries to Magnetic Island. Nights out at X Base Resort on Magnetic are unforgettable. Better tourist web sites are needed to link travel, accommodation and events to prolong out of town stays and take visitors away from the all too familiar East Coast Bus Passes.
Tourism is alive and well , you only have to try and make a booking for accommodation before scheduled events in country towns and it can be impossible to obtain a booking
Australian tourism need to be more affordable. Economical air fares make places like the Cairns Outback so much more accessible for winter breaks. I have visited the area and agree with Denis’ comments. Lots of overseas visitors do not go west of Cairns. They are missing out on some real Australian experiences and colourful characters.
Wet weather is often a problem in coastal North Queensland. Few tourists venture out to the Cairns Outback where the environmental is drier and the settlements historically more authentic.
Rainy Day,
that’s an interesting observation which the rest of us need to know so maybe we can factor that into our own personal travel plans and thus grow that tourism industry.
Advancing sustainable tourism in NQ: Reef, rainforest, clubs and restaurants, savanna outback when the clouds roll in from the Coral Sea: Tourism can benefit all those NQ communities with new permanent residents from here and overseas. What a bargain in affordable housing in some communities. Tourism is better in a social market with award wages for employees and infrastructure supported Investment and Community Development Funds to make Tourism Queensland. a profitable consultancy service to support new projects and training programmes linked to NQ Universities and TAFE Colleges with exchange programmes to other tourist areas like Italy, Spain, China and Singapore.
Great work, Denis! This sums it up!