Concern grows over grant uncertainty

Concern grows over grant uncertainty
By admin


Tourism bodies have pleaded with the Government to release the $8.5 million in already-approved T-QUAL grants, arguing that it owes it to the successful applicants and the wider tourism industry to honour the payments.

Ministers have withheld the money awarded in July by the Labor Government amid a review of all “discretionary” grants.

The move has caused immense uncertainty for 89 tourism operators and organisations which successfully applied for money to help develop and expand their businesses.

Trade and investment minister, Andrew Robb, pictured, said he was seeking to provide clarity for grant winners “as soon as possible”.

Ward Tilbrook, chief executive of the South Australian Tourism Industry Council, said all applicants invested significant time and resources in applying for grants and deserve prompt payment.

They were all projects in line with South Australia’s tourism strategy and addressed supply side issues that are so “critical” for the future of the industry, he said.

“This has thrown everything up in the air. They all had to demonstrate a real need for the grants and all fit with South Australia’s tourism planning framework,” Tilbrook told Travel Today. “It now seems we have become a strategy-free zone.”

Delaying or refusing to honour the grants could also cause “reputational damage”, he added.

Companies preparing expansion projects on the basis of the grants may have told international agents about their plans and could even have put a hold on new bookings.

“Going back to the sellers and explaining that the project is now not going ahead is not a great look,” Tilbrook said. “There could be reputational damage.”

Tourism Council WA chief executive, Evan Hall, told Travel Today he was receiving daily calls about the issue.

He said the T-QUAL grants had been approved by Parliamentary process and must be honoured.

But he said if there had been any question mark over whether the grants would be paid, the process should not have been started in the first place.

“This is causing a great deal of uncertainty which is quite diabolical,” Hall said.

Even if money is eventually forthcoming, the seasonal nature of the industry means projects may not be able to be finished before the summer, he added.

Tourism Accommodation Association managing director, Rodger Powell, said many operators have made "commitments based on grant approval".

But he took the view the Government would be "looking favourably" at honouring the payments.

"We also look forward to sitting down with the Government in the future to discuss new programs to stimulate investment in the industry," Powell added.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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