Budget breakdown: The Good

Budget breakdown: The Good
By Hannah Edensor


The Abbott Government released its 2015 Budget last night, but how will it affect Australia’s tourism industry on a positive note?

“Good progress” has been made for Australia’s tourism industry in the 2015 Budget according to minister Andrew Robb, following the Abbott Government’s commitment of a $36.7 million top up toward Tourism Australia activities.

With tourism now recognised as one of five National Investment Priorities, minister for trade and investment, with responsibility for tourism, Andrew Robb said Australia’s tourism investment pipeline is now expected to grow 9%.

“This funding will ensure our marketing dollar continues to deliver for our industry despite fluctuations in the exchange rate, and with international visitor spend set to grow to $33 billion this year alone, it is vital we stay committed to our international marketing efforts,” ATEC managing director, Peter Shelly commented.

The additional $36.7 million for Tourism Australia will assist in supporting marketing activities abroad and as a result of new foreign exchange arrangements will see the national tourism body compensated for a weaker Australian dollar, consistent with Foreign Affairs and Trade portfolio partners.

Key Budget outcomes for tourism:

  • Tourism Australia to get a $8.6 million increase in government appropriation in 2015/16 and a projected total increase of $36.7 million over the forward estimates ($8.6m in 2016/17, $8.9m in 2017/18 and $10.5m in 2018/19) due to the application of new foreign exchange arrangements.
  • $30 million to increase promotion of foreign direct investment in priority areas such as tourism infrastructure, including Austrade’s global investment teams.
  • $18 million for expanded Australia Week trade and promotional events in China, India, US and ASEAN regions.
  • $5.2 million to expand Austrade’s Match Australia Programme, which showcases the country to international business people attending major sporting events such as the 2016 Rio Olympics.

Other initiatives the Budget builds on to support tourism include:

  • New air services agreements with China to triple capacity over the next 18 months to 67,000 seats per week by the end of 2016.
  • A three-year, multiple-entry visa scheme for approved tourist and business applicants from China.
  • Launching pilots for online visitor visa lodgement for China and India, with full roll-out by the end of the year.
  • New Work and Holiday Arrangements allowing up to 5,000 Chinese Work and Holiday Makers into Australia annually.
  • Freezing the Passenger Movement Charge for the current term of office.
  • Rolling out a $43 million Tourism Demand-Driver Infrastructure Programme with the overwhelming majority of states and territories announcing key projects.
  • Extending streamlined SmartGate processing to visitors from Hong Kong and China.

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