Tourism wars: how Queensland is faring

Competition among the states for the domestic tourism dollar is getting increasingly fierce. New data reveals what Queensland stands to gain – and lose.

QUEENSLAND is getting good bang for its tourism marketing buck but is languishing behind other states in its spending on infrastructure to support the industry, exclusive new data shows.

The state spent about $15 per person on tourism marketing in 2019-2020, but generated $11.4 billion: a 194 times return on investment, the Tourism and Transport Forum (TTF) has revealed.

A new TTF report breaking down the value of the tourism industry for each state and territory shows what Queensland stands to gain – or lose – as travellers increasingly spread their wings with increased vaccination rates and the anticipated lowering of international borders.

The TTF data shows the Sunshine State’s solid returns from its tourism marketing are no fluke: the state has been second only to Victoria in this area for two of the past three financial years.

But Queensland’s expenditure on tourism infrastructure per head of population was just $58 – a far cry from the $166 per head spent by NSW and $461 per head spent by the NT.

TTF chief executive Margy Osmond. Picture: NCA NewsWire / Christian Gilles

Forum CEO Margy Osmond said Covid-19 would likely change the carve-up of the domestic tourism market. While SA and NT were well-placed to improve their share from this, she warned that it could come at Queensland’s expense.

“This is a bit of a wake-up call in terms of what investment will be needed in what will be an increasingly cutthroat marketplace,” Ms Osmond said.

“Queensland have done some very innovative things and their voucher program is very successful, but recovery for this industry is going to take three, four or five years, and that will take sustained government investment in both promotion and capital expenditure,” she said.

The analysis by consultancy Sayers revealed Australia’s tourism industry reached a high point in 2019, with spending by domestic and international tourists hitting $152 billion. But by September 2020 this figure had fallen to just $74.3 billion.

Australia wide, the industry lost 56,600 full-time jobs and 23,900 part-time roles in 2020, the report revealed.

According to the TTF some 32,000 tourism businesses are at risk of closure in 2021, with those more than three hours drive from a major city particularly at risk.

Gold Coast tourism operator Sarah Colgate said the first few months of 2021 had been good for business, but the recent Melbourne lockdown had impacted significantly on tourist numbers.

The state government’s holiday dollars for the Gold Coast were a “step in the right direction,” but continuing uncertainty over state borders was a continuing problem.

“A lot of jobs in Queensland reply on tourism. We need to give people every incentive to come,” she said.

The TTF’s blueprint for rebooting tourism across the country includes a consistent approach to internal border closures, co-ordinated digital “track and trace” technology across the states, and reducing the mandated quarantine period for international arrivals, facilitated by vaccination data and rapid testing. (The UK and France require only 10 days in isolation, not 14.)

Ms Osmond said uniform track and trace technology across all states was “absolutely critical” before the international borders could be opened.

“There is real value in having a single app,” she said. “You need a single uniform mechanism for incoming travellers to be able to download the app when they get off the plane.”

The TTF report also urged the government to consider luxury quarantine options, particularly in locations that provide a springboard to regional tourist destinations.