7 April, 2020

AACB welcomes $50m expansion to federal trade and tourism grant

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One of the industry’s peak bodies has welcomed a substantial injection into the federal government’s Export Market Development Grant.

Announced last week by Minister for Trade, Tourism and Investment Simon Birmingham, the $49.8 million injection will allow tourism businesses to receive additional reimbursements for costs incurred in marketing their products and services around the world.

It comes at an important time for the MICE industry, with the Business Events Council of Australia (BECA) flagging $2.5 billion in monthly losses.

The Minister for Tourism said the funding boost would provide much-needed relief and a timely cash flow injection for exporters and tourism businesses within the scheme who were doing it tough.

“We recognise the current COVID-19 crisis is placing immense pressure on Australian exporters and tourism businesses, many of whom felt the earliest and deepest aspects of the economic downturn,” Birmingham said in a press statement.

“This funding injection will put more cash in the pockets of thousands of Australian businesses when they need it most.”

The support adds to the additional $60 million already committed by the federal government, bringing EMDG funding to its highest level in more than 20 years at 207.7 million for FY20.

With the new funding, any business that has incurred eligible EMDG expenses for promotional activities in FY20 will be able to seek reimbursement for 50 per cent of their expenses without the Export Performance Test applying when they apply from 1 July.

Andrew Hiebl, CEO of the Association of Australian Convention Bureaux (AACB), described the funding boost as “a shot in the arm for convention bureaux across the country”.

“This additional assistance provides certainty during tough times through an otherwise oversubscribed program, meaning that expected entitlements will be paid in full,” he said.

“Eligible convention bureaux will be able to position these funds to recovery efforts in what will be a highly competitive post-COVID-19 world.

“It is positive to see federal and state/territory governments recognising that the business events industry is vital to rebuilding Australia’s visitor and knowledge economies.”

The announcement provides further welcome relief, confirming that applications lodged in the 2020-21 financial year can claim promotional expenses that have been impacted by COVID-19, including tradeshow cancellations.

These activities will be treated by Austrade as having taken place, the AACB said.

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AACB COVID-19 Export Market Development Grant simon Birmingham