Social Market Solutions: The New Tourism?

The AIM Network

8 years ago

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.

Chillagoe Observatory and Eco Lodge attracts a full spectrum of visitors from school and university field students to international visitors. Located just 200 kms from the coast in the Cairns Savannah Outback, it provides access to the limestone caves, historic sites, indigenous rock art and open spaces which are hallmarks of the Chillagoe Region.

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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Denis Bright (pictured) is a financial member of the Media, Entertainment and Arts Alliance (MEAA). Denis is committed to consensus-building in these difficult times. Your feedback from readers advances the cause of citizens’ journalism. Full names are not required when making comments. However, a valid email must be submitted if you decide to hit the Replies Button.