Budget 2017: Visa fees up, tourism funding to Tourism Australia down

AUSTRALIA’s $100 billion tourism industry was hit hard in Scott Morrison’s Budget on the back of funding cuts and a rise in visiting costs.

AUSTRALIA’s $100 billion tourism industry was given little to smile about in the Federal Budget with an increase in the cost of visiting the country and a cut to the funding of the national marketing authority.

Tourism Australia was hit with a $14 million blow to its budget, which fell from $143 million to $129 million, and the government flagged an extra $410 million in revenue over four years from a hike in visa application charges.

BUDGET 2017: WHAT IT MEANS FOR YOU

The CPI-indexed increases will raise already high-priced tourist visas year after year, in a slap in the face to industry leaders who lobbied for visa fees to be made more competitive.

Visa application fees will rise in line with CPI from July in a move that will generate an extra $410 million in revenue over four years. Picture: John Grainger

However, among the sweeteners for tourism were:

• The continuation of funding for demand-driver infrastructure totalling $19 million;

• $5 million to help tourism-reliant areas recover from Tropical Cyclone Debbie.

The category four cyclone walloped the Whitsundays in late March, then went on to cause major flooding in southeast Queensland and northern New South Wales, causing billions of dollars of damage.

Treasurer Scott Morrison said the cyclone also took a toll on economic growth.

“At home, we expect real growth to rebound to three per cent over the next two years, after a temporary slowing this year, that takes into account Cyclone Debbie,” said Mr Morrison in his budget speech.

Funding of $3.5 million would be given to the Queensland Government to fund tourism projects in cyclone-affected areas, and Tourism Australia would use $1 million from its existing budget, plus an additional $500,000 to market the continued availability of tourist venues in North Queensland.

North Queensland tourism venues will get a helping hand to attract visitors in the wake of cyclone Debbie. Picture: AAP/Sarah Motherwell

As expected, the Federal Government cemented its commitment to building the Western Sydney Airport, with an initial $2.3 million in funding towards the $5.3 billion cost.

Taxpayers would also tip in $2.9 billion over 10 years to enhance transport infrastructure in Sydney’s western suburbs to support the new airport.

The tourism industry welcomed a $20 million fund for business development cases for projects to deliver faster rail connections between capital cities and regional areas, and $30 million towards a Melbourne Airport Rail Link business case.

But industry leaders were disappointed that once again, the government failed to deliver on a 2010 election promise to create a National Convention Bids Fund.

The tourism industry wants the government to provide funding to attract large conventions to help fill airline seats and hotel beds. Picture: Supplied

The Association of Australian Convention Bureaux and Tourism Accommodation Australia had sought $10 million to help Australia compete with other countries for major conferences.

In 2016, Australia missed out on 61 international conventions and suffered an 11 per cent decline in overseas visitors travelling down under to attend a conference.

“Of the five-leading host countries for conventions in Asia-Pacific, only Australia lacks a bid fund,” said AACB CEO Andrew Hiebl.

“Singapore for example covers up to 70 per cent of the organiser costs for large conventions, South Korea offers a flat $17.30 per delegate to conference organisers and New Zealand has made available $37.5 million to win bids.”

Originally published as Budget 2017: Visa fees up, tourism funding to Tourism Australia down