The Coalition recognises that the Australian tourism industry is experiencing a difficult time following the terrorist attacks in the United States on 11th September, subsequent events overseas, and the financial collapse of Ansett.
Securing Australia’s Tourism Future will make available $45 million in additional funding to assist tourism in Australia with practical measures aimed at helping to fortify the industry against the difficulties it is facing now and in the months to come. This builds on the $20 million assistance package announced on 8 October 2001.
A re-elected Coalition Government will:
- Provide additional funding to the Australian Tourist Commission of $24 million over five years, including an additional $6 million in this current financial year and a further $6 million in 2002-03 for further promotion in international markets.
- Allocate additional funding for the See Australia domestic tourism initiative of $8 million over four years.
- Inject increased funding into the regional tourism programme of $8 million over four years.
-Make a one off contribution of $5 million paid in 2001-02 to the Travel Compensation Fund, to be matched by state and territory governments which have primary responsibility for travel agent licensing. This will be a once only payment in recognition of the exceptional nature of the causes of the current downturn in tourism.
Three of the Coalition’s commitments pick up on key recommendations of the tourism industry working group that was established in September to consider the impact of recent events on tourism in and to Australia. The final report of the working group was provided to both the Coalition and the Labor Party on 12 October.
I would like to record my thanks to all the members of the working group for their work.
In particular I would like to thank Andrew Burnes, Chairman of the Australian Tourism Export Council who along with the Minister for Sport and Tourism was co-Chairman of the working group.
The $45 million in additional measures builds on the policy initiatives already in place that are assisting the tourism industry.
On 8 October the Coalition Government announced a $20 million tourism assistance package that consisted of the following:
- $15 million for small businesses that honoured components of holiday packages for which they were not paid, in order to keep faith with their customers. It is to be made available in grants to small businesses as a contribution towards covering the losses they have borne.
- $5 million has been provided for the travel industry to provide incentives of $150 for every holiday package purchased with a total value, excluding airfares of $750 or more.
The total commitment in measures to directly support the tourism industry is $65 million.
In addition, the Coalition Government has assisted tourism by providing a number of guarantees and loans to enable Ansett Mark II and regional services around Australia to resume flights.
The steps the Government took to assist with the resumption of air services particularly in regional Australia was very important to the tourism industry.
Also, the Coalition has made a number of other commitments which will support the tourism industry including;
- Regional tourism projects worth $11.9 million
-An extension to the diesel fuel rebate scheme to include small retail/hospitality businesses that produce their own electricity from diesel. This measure is worth $80 million over four years and will greatly assist remote tourism businesses.
The tourism industry has contributed a great deal to Australia both economically and socially in recent years, particularly in the job opportunities that the industry provides for young people.
With tourism currently facing a difficult time, the Coalition believes it is important to provide practical measures that can effectively assist the industry, particularly those businesses located in regional and rural communities.
Impact on the Forward Estimates
(Cash estimate) 2002-03
$m 2003-04
$m 2004-05
$m 2005-06
$m Total
$m
Increased funding for ATC (a) 6.0 4.0 4.0 4.0 24.0
Increased funding for Regional Tourism Programme
1.5
1.5
2.5
2.5
8.0
Increased funding for See Australia Domestic Tourism Promotion
1.5
1.5
2.5
2.5
8.0
Travel Compensation Fund (b) 0.0 0.0 0.0 0.0 5.0
Total 9.0 7.0 9.0 9.0 45.0
(a) Additional funding of $6.0m in 2001-02
(b) One off additional contribution of $5m to the Travel Compensation Fund in 2001-02
Totals may not add due to spending commitments in 2001-02 and rounding.
2 November 2001