Last night’s Federal Budget has provided some positives for the tourism sector, says VTIC.
“The tourism industry was waiting with keen anticipation to see the shape of Labor’s first Budget”, says VTIC Chairman Jeremy Johnson.
“We are particularly pleased with the emphasis on human capital, skills and infrastructure – our industry has been crying out for skilled personnel in a range of areas and infrastructure improvements are needed to cut congestion in our cities and improve ease of access for tourists, as well as bringing regional centres closer to key markets.
Particular measures of note here include:
- A 30 percent increase in skilled migration, which is urgently needed to ease the skills shortage in the short-term
- Funds to improve processing and compliance under the temporary skilled migration program, including the controversial 457 temporary-visa scheme
- 630,000 new training places, including apprenticeships, to tackle skills issues in the longer-term
- The Building Australia Fund, which will finance critical national transport and communications infrastructure in regional areas. $500 million has been earmarked for Victorian road and rail projects, with major projects due to commence in 2008-09
- $176 million over four years to the Government’s Better Regions initiative, to improve infrastructure and services in regional Australia, including regional sporting facilities, community infrastructure and tourist attractions. An estimated $18 million is dedicated to tourism infrastructure
- $271 million over four years to fund the Australian Broadband Guarantee, which will ensure all Australians, particularly those in regional and rural areas, have equitable access to metro-comparable broadband services
“In terms of industry support, we welcome the $61 million over three years towards Australia's participation in World Expo 2010 in Shanghai, to showcase contemporary Australia and highlight to China the capabilities of Australian business. While we note some small business programs have been cut, the Government’s Enterprise Connect Innovation Centres are aimed at assisting small and medium business, including those in regional areas, become more productive. This will include a $20 million Innovative Regions Centre in Geelong
“On the negative side, there are changes regarding fees on tourism activity that will not assist the sector, including an increase in the Passenger Movement Charge (departure tax) and an increase in passport fees and visa application charges.
“There is also reduced funding for Tourism Australia ($4m over four years), with savings to be achieved through operational efficiencies. We understand that the savings will not reduce Tourism Australia’s funding for international and domestic marketing activities.
"The Government has decided it will not proceed with the proposal to allow private providers to offer refunds in relation to the Tourism Refund Scheme (TRS). However it supports previously announced changes including: extending the period during which travellers can purchase goods and be eligible to claim a refund on GST and wine equalisation tax from 30 to 60 days, including the period in which travellers can make tax free purchases, and allowing travellers to aggregate multiple invoices from single retailers.
“Given the recent Australian Bureau of Statistics (ABS) figures showing outbound travel growing by 12 per cent in the March quarter compared with the same time last year and a drop in arrivals of 1.3 per cent in the March quarter from last year, support for the tourism sector is timely.
“As such, this year’s Budget is largely positive for tourism, and we look forward to contributing to the Federal Government’s National Tourism Strategy”, says VTIC Chairman, Jeremy Johnson.
Background - what is VTIC
The Victoria Tourism Industry Council (VTIC) is the peak policy council for the Victorian tourism industry, which represents key industry associations, operators and government agencies, providing one united industry voice.
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