Council budget 2020: Tourism sector misses out on extra funding leaving business boss fuming

The Gold Coast’s business lobby boss is gutted by the city council’s rejection of a boost for tourism marketing but Destination Gold Coast top brass are taking it on the chin.

THE Gold Coast’s business lobby boss is gutted by the city council’s rejection of a boost for tourism marketing but Destination Gold Coast top brass are taking it on the chin.

Destination Gold Coast, the city’s chief tourism marketing body sensationally missed out on its requested funding boost in yesterday’s council budget, with Mayor Tom Tate panning its original pitch “underwhelming”.

Destination Gold Coast bosses accepted the decision yesterday, and “thanked” council for retaining its $15.5 million in direct funding support, the same dollop it got in 2019-2020.

Gold Coast Mayor Tom Tate delivered the 2020-21 budget yesterday. Picture: Tertius Pickard

Just five weeks ago, Destination Gold Coast CEO Annaliese Battista asked for an extra $4.1 million to help the city claw back the $4.3 billion hit from its backbone $6 billion tourism industry due to the COVID-19 pandemic restrictions.

At the time, she said Destination Gold Coast together with council must provide the strongest support possible for the sector in its 45-year history.

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Annaliese Battista. Picture: Mike Batterham

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Ms Battista said yesterday the organisation would use the funding it is getting wisely.

“Destination Gold Coast thanks City of Gold Coast for ongoing funding support for tourism marketing and we look forward to working together to revive our city’s biggest economic driver,” she said.

“Having foreshadowed the desperate position the city’s tourism sector would be in as a result of COVID-19, Destination Gold Coast has proactively saved $7.2 million since February to lead the city’s tourism recovery.

“We take seriously the responsibility of investing public funds and being able to demonstrate a strong return on investment to the tourism sector.”

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Destination Gold Coast boss Paul Donovan. Picture: Tertius Pickard

Destination Gold Coast chairman Paul Donovan said the organisation “would get on with it”.

“We have an important job to do and we need to make sure we get the biggest bang for out buck,” he said.

But Gold Coast Central Chamber of Commerce president Martin Hall did not mince his words, saying the lack of increased funding was “deeply disappointing”.

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Yesterday’s budget was delivered in a closed room due to social distancing. Picture: Tertius Pickard

“We would have like to see some attempt to subsidise (airline) transport to bring more people here in the same way which has been done by other cities,” he said.

“It is deeply disappointing and in the absence of major events, there are not a lot of drawcards, other than the theme parks.”

Cr Tate defended the tourism funding request snub, saying council was “underwhelmed” by the tourism body’s initial presentation for extra funding to help the city recover.

“The market has changed and while borders are closed there are no international travellers. You don’t need to do international trips. Top marks to Destination Gold Coast, they stopped their spend. They already have $7.5 million in their reserves,” he said.

“It is the same as last year and by the time you add the $7 million, by the time the borders open they will have more money.”

Deputy Mayor Donna Gates with Mayor Tom Tate yesterday.

Cr Tate didn’t hold back when referencing Destination Gold Coast’s original pitch to councillors for increase: “If I had left it as one pitch only, I don’t think they would have got anywhere,” he said.

‘The business model was underwhelming and it didn’t convince me to use more ratepayers funds because it did not say how you are getting a return on investment.

“I went let’s not worry about questions now because with our councillors, they would have torn them apart with the questions. I said ‘Go away, do your homework and repitch.”

Destination Gold Coast used its May 11 presentation to emphasise up to an estimated 10 million fewer tourists would visit the Gold Coast this year, with the financial cost a whopping 74 per cent decline on 2019.

TIMELINE

May 11 – Destination Gold Coast’s presentation to the Gold Coast City Council budget committee.

May 12 – Mayor Tom Tate asks Destination Gold Coast to give a second, more in-depth, presentation to the committee, citing a need for more detail.

May 18 – Destination Gold Coast’s second presentation to the council.

June 22 – Destination Gold Coast’s funding boost rejected maintained at existing levels.