New modelling shows SA could grow its share of the Aussie tourism spend by $1 billion a year
It’s enough to make Old Mate shed more tears. SA’s tourism industry is not performing to its potential — in fact, it’s nearly $1bn short. But there is a potential solution.
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South Australia is missing out on almost $1 billion a year in economic activity by failing to claim the share of the national tourism pie it once enjoyed, industry analysis shows.
Tourism Industry Council SA’s modelling suggests the potential for an extra $944 million a year and 5400 more jobs.
In 2018/19, SA claimed only $3.50 of every hundred dollars international tourists spent in Australia, the council says.
Chief executive Shaun de Bruyn said lifting SA’s share of both foreign and domestic travellers to former highs could lift revenue from $7.6 to $8.6 billion.
“It requires collaborative and co-ordinated investment from government to support the strong investment industry is making,” he said. “Product development and marketing are the key areas for spending.
“The industry is being relied upon more and more to market the state to drive increased expenditure and visitation and it is not sustainable.”
Lifting SA’s national market share in foreign visitor spending from 3.5 per cent back to its high in 2010-11 of 4.2 per cent would generate $210 million.
Raising domestic visitor spending from 6.3 per cent back to 7 per cent (also recorded in 2010-11) would add $572 million. And getting the day-tripper share from 6.7 per cent back to 2017-18’s high of 7.4 per cent would add $162 million.
The State Government and its SA Tourism Commission rejected the analysis.
Commission chief executive Rodney Harrex said hotels were enjoying record occupancy rates on the back of recent advertising campaigns, including the controversial “Old Mate” one.
Mr Harrex said research by global data and analytics service STR showed Adelaide hotels experienced unparalleled growth over the past four months, with October 22 per cent up on last year for revenue and occupancy – the best figures in a decade.
“We are seeing record volumes for our hoteliers, and a lot more activity coming up over summer with sport, festivals, events and conventions,” he said.
SA Tourism Minister David Ridgway said the industry was “a super-growth sector and a key economic priority for the Marshall Government, and we are well on track to reach our target of an $8 billion visitor economy by the end of 2020”.
“Private investment in hotel builds across our state is strong which speaks volumes for business confidence,” he said. “We will have an additional 700 new rooms by late 2020 as a result of the SkyCity, Sofitel and Crowne Plaza developments.”
Opposition tourism spokesman Zoe Bettison said the industry was a “lost opportunity”.
“All we are getting in SA is (funding) cuts – $23m over five years, reducing marketing to a five-year low,” she said.
