Cairns jobs in jeopardy if federal Labor doesn’t commit to $15m tourism budget pledge

A thousand jobs and bums on international plane seats are in jeopardy if the federal government doesn’t come good on a $15m promise. Why FNQ is being left hanging.

FUNDS to resuscitate international tourism in the Far North promised by the previous Coalition government could be scrapped by the Labor government.

The March budget included $60m to accelerate international tourism with $15m of that going directly to Tropical Tourism North Queensland (TTNQ).

But TTNQ chief executive Mark Olsen is yet to be assured the money is on its way.

He said the region was losing $2.5m per day with only a trickle of international visitors, and while a bumper domestic season meant hotel occupancy across the region was at 75 per cent, in December it would be 20 per cent, and that was a time the region traditionally relied on the international market.

Mr Olsen said the $15m funding was critical to implement marketing initiatives to build fresh relationships with international markets.

Advance Cairns Executive Chairman Nick Trompf and Tourism Tropical North Queensland CEO Mark Olsen have outlined what they expect to see, and what they ideally want, for Far North Queensland from the federal budget in their 2022-23 submission. Picture: Brendan Radke

Treasurer Jim Chalmers is expected to deliver a new budget on October 25 and Prime Minister Anthony Albanese has said the government would have to “really put the brakes” on some spending areas, arguing promises made by the previous administration did not stack up.

“The region’s billion-dollar international tourism sector is waiting for the green light, for that funding to go ahead; our recovery is hinging on this funding,” Mr Olsen said.

“It will have an enormous flow-on through this community, we estimate that 1000 jobs will be created from that $15m,” he said.

Former prime minister Scott Morrison during a visit to the Cairns Zoom and Wildlife Dome, to announce $60 million in tourism marketing by the federal government – $15 million was to be allocated to Tropical Tourism North Queensland, but there are fears the new Labor government will renew on the promise. Picture: Brendan Radke

“Before the pandemic, Cairns and the Great Barrier Reef was one of the powerhouse regions of international tourism.”

He said rebuilding the international market was key to becoming a year-round destination.

“That’s why the federal government in March made the commitment of $15m to TTNQ to be at the forefront of driving international visitors into Australia.

“At the moment, we’re losing $2.5m a day, we estimate that we’ll continue to lose hundreds of millions of dollars in international visitor expenditure if we can’t get on the front foot,” Mr Olsen said.

“We’ve been told that there’s no reason that shouldn’t be in the budget, but we’d love to have the phone ring to finalise our discussions and negotiations on how those funds are invested,” he said

“TTNQ and Tourism Queensland and Tourism Australia put a really clear business case together – this was not a bubble of an idea, it was a well thought out business case for Australia’s international recovery.”

International tourists account for one third of the Far North’s visitor economy and ensure the industry is viable year round, according to Tourism Tropical North Queensland chief executive Mark Olsen.

He said before Covid, the region paid $1bn in tax from tourism alone.

Mr Olsen said plans to spend the funds included an aviation demand drive.

“We need to make sure that we’re filling the planes that are returning internationally and as new routes come in, they need demand-driving activity,” Mr Olsen said.

The second element was helping tourism operators re-establish trade relationships and bring trade partners to the region.

He said the third element was promoting the link between tourism and conservation, with a recent positive report on the health of the Great Barrier Reef.

Mr Olsen said international visitor numbers were currently less than 15 per cent of pre-Covid numbers.

Originally published as Cairns jobs in jeopardy if federal Labor doesn’t commit to $15m tourism budget pledge