Luxury walk operator claws back $600k in marketing spend deal

A company running private luxury lodges in a national park has run up a tab of $600k over the past three years, which has been paid out of the taxpayers’ wallet.

Tasmanian Walking Company

Tasmanian taxpayers have picked up the tab for more than half a million dollars in marketing costs promote a company running luxury private lodges in a national park over the last three years.

The Tasmanian Walking Company charges walkers upward of $3495 for a four day/three night walk on the Three Capes Track.

The 46-kilometre track, on the Tasman Peninsula, was developed by the state and local governments at a cost of $40 million.

Under its deal with the state government, the company has a 30-year exclusive licence as a private operator.

SUNDAY ESCAPE. NEW WALKS AROUND THE WORLD. Spend two nights at Cape Pillar Lodge during the Three Capes Lodge Walk. Picture: Tasmania Walking Company

The cost includes a base fee plus a percentage of turnover — but the deal requires the company to be reimbursed for “marketing costs reasonably and properly incurred by the operator” — spending which has almost doubled over the last three years.

Documents released under a Right to Information laws reveal that in 2023/24, the rent and licence fee totalled $299,990.

The company was reimbursed $247,023 for marketing costs.

In 2022/23 the company was charged $302,312 and reimbursed $234,683.

In 2021/22, the lease and licence fees were $234,500 and taxpayers picked up $127,473 in marketing costs.

Over the past three years, the company has paid a total of $842,712 in rent and licence fees and been reimbursed $609,179.

Parks and Public Lands spokeswoman Tabatha Badger said the deal was a dud.

“It is unacceptable that Tasmanian taxpayers are continuing to pay the marketing bill for a private company that has also been gifted the exclusive right to profit off a special part of states National Parks,” she said.

Day 1. Walkers relax at Crescent Lodge during Tasmanian Walking Company Walk with Heart Three Capes Walk. Picture: Zak Simmonds

“The Liberals have spent a decade looking for every opportunity to privatise and exclusively develop our islands unique wild places.

“Clearly, the closed door deals the Liberals have stitched up with a select few companies are not in the best interests of Tasmanians, who are being locked out their National Parks yet paying hundreds of thousands of dollars of marketing costs for absurd items like $10,000 for a ‘concrete playground’.

“It’s absolutely cooked and the total wrong priority for public money, when our Parks and Wildlife Service are drastically under resourced.

A government spokeswoman defended the deal.

“The marketing partnership with Tas Walking Co attracts high visitation to both the private and public walks, Tasmania and the Tasman region more broadly,” she said.

SUNDAY ESCAPE. NEW WALKS AROUND THE WORLD. Walkers head out to the Blade at Cape Pillar on Day 3 of the Three Capes Lodge Walk. Picture: Tasmanian Walking Company

“Our multi-day walks are a key reason people visit Tasmania, with 80 per cent of 3CT visitors coming from interstate.

“These visitors most often go on to spend further time in the State, and spending money throughout the economy on accommodation, food and tourism experiences.

“The agreement term is for ten years from the practical completion date of 30 September 2018, or 15,000 walkers, whichever comes first.”

Originally published as Luxury walk operator claws back $600k in marketing spend deal