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PRIME MINISTER
SPEECH BY THE PRIME MINISTER, THE HON P J7 KEATINGQ MP
TOURISM TASK FORCE LUNCHEON
SYDNEY 11 JUNE 1993
I am very glad to be here today. John Brown's powers or
persuasion are unrivalled 8nd legendary of course, but he
didn't needL. to use them for this.
The modern Australian tourist indust U and I grew up
together, and even in front of John, I will be so
immodest as to say that over the years I have given it
more than one or two helpful shoves along.
The last of these shoves was last year in One Nation when
we created 8 separate Cabinet portfolio for tourism, a
new Department of Tourism and when we significantly
increased funding for promoting Australia as a tourist
destination. This was less a visionary act than recognition of 8
vision realised, because the tourism industry really had
earned its stripes.
I'm fond of reminding people how much Australians have
changed in the past decade and a half. It seems to me
that the changes we have made are proof of our capacity
to make more changes necessary changes.
The change from an inward looking, even somewhat
xenophobic Anglo-saxon society to a much more worldly,
open and multicultural society is one example. The
remarkably rapid adoption of a co-operative industrial
culture is another. So is, in very recent times, our
reorientation towards Asia.
Australians do have the capacity to adapt as the world
and our place in it demands. This, of course, is the
reason why I am confident that in time we will embrace
the Idea of a re publican Australia and why we will
achieve reconciliation with indigenous Australians.
It's why I think that we can find a successful and
creative role in the world and the region, and a greater
level of mature self-confidence and self-esteem. In the
end these things depend on ourselves and on our faith in
ourselives.
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Now, the other striking example of our ability to adapt
and grow and make the most of our natural advantages is
the tourism industry. A decade ago it was at best
embryonic. Very few Australians imagined that we were
capable of developing the sophisticated standards of
service and infrastructure which we now possess.
It has happened with quite extraordinary speed and we
should find in it every reason for confidence, both in
the future of the tourism industry and the future of the
country. As I'm sure you know, tourism has become a very
significant source of export earnings and job creation in
Australia. It Is our fastest growing industry. It
employs 457,000 people and earns us $ 8 billion in foreign
exchange a year. It will create 200,000 new jobs in this
decade, an4j4n so doing provide a future for 8 very large
number of yj~ ntis Australians.
The news is remarkably good. Studies by the Australian
Tourist Comm ission indicate that we are already first or
bcond most preferred destination in eight out of
thirteen key market countries.
A recent New York Times/ CBS Televisñ bn survey listed
Australia as the most favoured tourist destination for
Americans. Australia rated three times more popular than
France, Italy or Britain.
And new survey results which I'm pleased to release today
show that Americans' satisfaction with Australia as a
tourist destination is not only in the anticipation but
also in the fulfilment of their holiday dreams. An
Australian Tourist Commission satisfaction study of the
US market found that three out of four American holiday
makers rate Australia better than any iff ternational
destination they have visited.
An overwhelming 98 per cent of those Surveyed said they
would recommend Australia to friends and relatives.
The survey also found that Australia scored brilliantly
on a wide range of criteria including hotels, tourist
attractions, food and service standards, and
friendliness. it's one of the pleasures of this job that you get to
tell the good news. Here it is.
98 per cent of Americans were very satisfied with
the quality of our tourist attractions.
97 per cent were very satisfied with the
friendliness and helpfulness of Australians.
97 were very satisfied with the quality of our
hotels, staff, service standards and tour guides.
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95 per Cent rated Australia as a good or excellent
country to visit for a holiday.
96 per cent said their trip met or exceeded their
expectations. And 89 per cent said they intended to return to
Australia.
You don't get much better product endorsement than that.
Nevertheless, it's very important that we do not
exaggerate the prospects for the Australian tourism
industry or underestimate the issues facing it.
it's not money for jam but a very complex industry often
confronted . b. y problems beyond our control. The success
of tourism relies on the right policy mix in regard to
marketing, transport, immnigration, investment and
infrastructure, training, taxation arrangements,
international relations, Cultural identity and industrial
relations. The Government is determined to help the
industry overcome impediments to growth in all these
areas. During the election campaign, I gave an undertaking to
continue the conspicuous level of support given to the
industry which in the recent pest has included an extra
million in One Nation for tourist promotion,
additional resources for the new Department of Tourism,
improved depreciation arrangements, and a further
liberalisation of aviation policy.
The new commitments include $ 42 million over the next
four years for the development and planning of tourism in
regional Australia; the completion of the -nat ional
ecotourism strategy and associated programs, and to
promote growth in special interest areas such as rural
tourism, coastal cruising and backpacking.
We also want to help the industry plan more accurately
for future infrastructure needs.
, The tourism industry has been plagued by boom-bust
cycles. The investment boom in accommodation in the
mid-eighties has resulted in an over-supply of rooms, a
decline in profitability, and a significant number of
hotels ending up; in the hands of bankers.
However there are signs that unless new investment is
forthcoming, the current surplus of accommodation may
become a severe deficit, at least in some regions.
we are stimulating tourism demand through international
marketing combined with major reforms in the aviation
industry.
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But the lead times involved in the development of
infrastructure mean that we have to anticipate this
demand three to four years in advance.
Investment in tourism therefore crucially depends on our
ability to forecast trends. At present, there is a lack
of agreement within the industry on the credibility of
particular tourism forecasts, and the reluctance to use
these forecasts has confused planning decisions and
contributed to the current low rates of occupancy and
lack of new investment.
To provide much better quality information on which
investment decisions are made, we will establish a
Tourism Forecasting Council.
The Council will report to the minister and comprise key
tourism indpstry, finance and building representatives
with technical assistance from the Bureau of Tourism
Research, industry research organisations and government
agencies. The Council will perform a role somewh~ at like the
indicative Planning Council of the housing industry,
where the industry, the government and other interested
parties sit down a couple of times a year to make an
annual forecast of housing growth. These forecasts are
generally taken by the industry as the best guide to its
immediate future. In the same way, a tourism forecasting
council should provide that extra information which can
induce more confidence about the future and hence more
confidence to underpin investment decisions.
By means of a Council, it is hoped that we will be able
to smooth out boom-bust cycles by better matching supply
and demand and improving industry planning and
profitability. The survey of the American market which turned up such
wonderfully positive responses nevertheless highlighted
some problem areas.
The one that concerns us most was the finding that
American travel agents appear to underestimate what
Australia has to offer as a tourist destination.
It appears that we need to put more emphasis on
post-advertising marketing strategies which will convince
these 35,000 travel agents to convert American enthusiasm
for Australia into firm holiday bookings.
This is an Issue which I know Michael Lee plans to
concertedly address in the coming months.
You will be aware, I imagine, of the emphasis I have
placed on " partnership" in developing a more cohesive,
stronger and competitive Australia. It was the theme of
One Nation. And despite the hiccup on another matter in
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recent days, I am not at all deterred from continuing to
pursue it, particularly in relation to the Commonwealth
and the States and Territories.
The tourism Industry especially needs a spirit and a
framework of partnership and co-operation.
We need to break down the old artificial demarcation
between State trade development and Commonwealth consumer
market promotion.
By providing an opportunity to work co-operatively
towards a common goal, the concept of Partnership
Australia will enable us to be both more efficient and
more cost-effective.
What we need Is a united effort to promote the Idea of
" Destination Australia", not just " Destination New South
wales" or Otlestination Queensland".
I was very pleased to see that the Northern Territory has
recently decided to join Partnership Australia and will
be allocating a percentage of its total marketing budget
to co-operative ventures and tactical'marketing
opportunities. The maximum effectiveness of our integrated marketing
ef forts overseas can be achieved only with the
participation of all States and Territories in
Partnership Australia.
And I sincerely hope the other State Tourist Commissions
will respond positively to the ATC's efforts to co-opt
their support.
The Commonwealth Government has worked to reduce the
barriers to tourist growth through liberalising aviation
policy, providing additional resources for policy
development, through the taxation system, through the
promotion of flexible industrial relations and through
the provision of more and better training.
If we can resolve to work more closely together, we can
build on what we have already achieved and maximise the
potential we know exists.
The beneficiaries, in no particular order, will be
Australia and you the industry. Partnership Australia
offers a better means of handling enquiries and
distributing product information. It will Improve the
effectiveness of our marketing effort. It will mean that
we can offer to the world a total and unambiguous
Australian product not the bits but the whole show.
So I urge you all to assist our efforts to persuade the
states and Territories to commit to PartnershiP Australia
and " Destination Australia".
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I said at the beginning that nothing confirms my faith in
Australia's future so much as the changes we have made in
the recent past. I said that there is no better example
of this then the tourism industry. However, I know that
the people here would be the last to say that we can rest
on our laurels.
I can give you now an absolute assurance that the
Commonwealth Government will continue to support the
tourism industry in every way that we can and in
Michael Lee you will find you have a very responsive
Minister with great energy, ideas Bad skill.
The Commonwealth Government will give you this. What we
seek from you is nothing more than a continuing
commitment to work with us and with each other in the
interests of the industry and Australia.
And knowinfthat you have come so far along this road in
the last decade, I have no doubt that that is what we are
going to see as never before in the next decade. A
partnership which will make the industry and Australia
that much stronger.
I wish you all the best in your efforts and thank you
again for inviting me here.