The industry is breathing a sigh of relief as the government confirmed it will maintain tourism funding, despite the National Commission of Audit's recommendations that it be drastically cut.

Announced on Tuesday night, the 2014-15 Federal Budget includes $130 million in base funding for Tourism Australia and $13.5 million towards the Asia Marketing Fund.

These commitments will help support the visitor economy, according to Tourism and Transport Forum chief executive Ken Morrison.

“The government has wisely decided to reject the Commission of Audit recommendations to slash Tourism Australia funding, however further investment is needed to fully capitalise on the boom in Asian travellers,” he said.

The government’s identification of tourism as one of the five National Investment Priorities is a sign of its recognition of tourism as an “economic development strategy” for Australia, Morrison continued.

“Tourism has been identified as one of five super-growth sectors that can contribute an additional $250 billion to the national economy over the next 20 years, especially with heavy manufacturing declining and the mining investment boom waning.”

However, more must be done to ensure the industry’s future success, he warned.

“The government needs to back its rhetoric with action to help Australia better capture the benefits of the booming Asian travelling class.

“Additional support for tourism marketing and investment is needed if Australia is to reach its Tourism 2020 goal of doubling overnight tourism expenditure to $140 billion by the end of the decade.”

The new Tourism Demand Driver Infrastructure grants program was particularly welcomed by Tourism Accommodation Australia.

“TAA did not believe that funding individual tourism and hospitality enterprises through the TQUAL and TIRF schemes was an equitable or efficient use of scarce funding,” managing director Rodger Powell said.

“To provide funding for ‘new carpets in old motels’ was never going to drive demand, whereas the Tourism Demand Driver Infrastructure Grants programme will benefit all operators through development of projects such as convention centres, port facilities, museums, galleries, theatres and other demand-driver attractions.”

Meanwhile, the Australian Tourism Export Council was also pleased the government had “stayed good to its word” by rejecting the proposed cuts to Tourism Australia’s funding.

“Funding for Tourism Australia is a vital part of our success in the international tourism market and the government has shown full support for the industry by its commitment to its funding base,” managing director Peter Shelley said.

He also welcomed the $10 million funding boost for the Approved Destination  Scheme – the tourism arrangement between China and Australia.

“At a time when the tourism industry is delivering close to $30 billion to the Australian economy, the Government has delivered a budget that will continue to support growth of the industry,” Shelley said.

“We welcome the tourism measures in this Budget as a sound and forward-thinking investment in an industry that has a strong future.”

A ministerial statement revealed the key budget outcomes for tourism as:

·        $43 million for a new Tourism Demand-Driver Infrastructure Programme to support the states and territories to develop key tourism infrastructure to stimulate tourism demand in their states, territories, cities and regions.

·        $10 million in new funding for the Australia-China Approved Destination Status (ADS) scheme, to further improve the visitor experiences of Chinese tourists. China is Australia’s biggest tourism market worth more than $4 billion annually.

·        $2 million to support the staging of the successful Australia Week in China (AWIC) again in 2016, the promotion of our tourism brand is a key component of AWIC.

·        $600,000 to transition responsibility for the T-Qual Accreditation Programme from Government to industry with industry best placed to assess the quality of tourism offerings.

The Budget also reaffirms the Government’s funding support for Tourism Australia and also provides for an increased, direct allocation of the Asia Marketing Fund to Tourism Australia to capitalise on emerging opportunities in Asia.

The Budget builds on the Government’s other early tourism achievements, which include:

·        the elevation of tourism to Cabinet level alongside foreign affairs and trade;

·        freezing the Passenger Movement Charge;

·        announcing multiple entry three-year visas for Chinese business visitors;

·        approving additional air access into Australia during Chinese New Year to cater for increased visitor demand;

·        announcing a trial to allow Singaporean e-passport holders to use SmartGate self-processing facilities in Australia’s eight major airports;

·        allowing international visitors attending the Cricket World Cup in 2015 in Australia and New Zealand to utilise a single visa;

·        ruling out a night-time curfew at Brisbane Airport; 

·        staging of a series of senior international investment roundtables abroad with a focus on high-grade tourism infrastructure in Australia;

·        making a decision in regard to a second Sydney airport; and

·        the Government will scrap the carbon tax which cost the accommodation sector alone $115 million in its first year. 

The Government has also committed to the ambitious Tourism 2020 target of doubling overnight visitor expenditure by the end of the decade to more than $115 billion.