ttf australian tourism: backing our strengths
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A National Agenda for the Australian Gover nmentTRANSCRIPT
www.ttf.org.au
AUSTRALIAN TOURISM: BACKING OUR STRENGTHSA National Agenda for the Australian Government
July 2013
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Tourism is an economic development strategy for Australia.
The visitor economy already plays a vital role:
• Itsupports907,000jobs (including direct employment of514,000people)
• Itgenerates$95.7billioninconsumption within the economy
• ItisAustralia’slargestservice export industry
The next federal government needs to foster industries with the greatest potential to create prosperity and jobsforthefuture.
This is particularly important at a time whenmajorpartsofthemanufacturingsectorareindecline,themininginvestmentboomistapering,andAustralia’sdemographicprofileis ageing leaving less taxpayers to fund vital government services.
TheriseofAsiaprovidesAustraliawithan enormous opportunity. With the numberofChinesecitizenstakingoverseastripsexpectedtoreach100millionby2015,tourismcanconvert theopportunitiesintoincomeandjobs in every part of the country.
Every household would pay $500 more in taxes without the tax revenue generated by tourism.
GSP/GDP ($m) 860JOBS 15,200BUSINESSES 6,232
GSP/GDP ($m) 11,510JOBS 159,400BUSINESSES 96,546
GSP/GDP ($m) 7,296JOBS 117,900BUSINESSES 73,178
GSP/GDP ($m) 2,053JOBS 33,000BUSINESSES 18,263
GSP/GDP ($m) 3,119JOBS 48,300BUSINESSES 26,946
GSP/GDP ($m) 727JOBS 7,500BUSINESSES 2,302
GSP/GDP ($m) 8,876JOBS 124,200BUSINESSES 55,688
GSP/GDP ($m) 653JOBS 8,400BUSINESSES
3,625
514,000 (Direct) 393,000 (Indirect)
SUPPORTS907,000 JOBS
Consumption
$34.6 billion (Direct) $38.7 billion (Indirect)CONTRIBUTES $73.3 BILLIONTO GDP
GDP
Jobs
GENERATES $95.7 BILLION IN CONSUMPTION
=100,000jobs
$3.1 billion(Direct)
$1.1 billion(Indirect)
PAYS $4.2 BILLION IN TAXESTaxes
Source:AustralianBureauofStatistics,Australian Tourism Satellite Account,2010-11andTourismResearchAustralia, Tourism’s Contribution to the Australian Economy,1997–98to2010–11.
A national tourism agenda
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For the tourism industry to reach its potential, it needs a renewed commitment from the federal government to:
1 Increase funding for Tourism Australia
2 Focus government resources to capitalise on Asian Century opportunities
3 Freeze and review the Passenger Movement Charge
4 Commit to a secondary Sydney airport at Badgerys Creek
5 Review penalty rates to recognise the needs of tourism and hospitality
6 Expand the working holiday maker scheme
7 Establish a $10 million annual business event support fund to secure more international business events and a $5 million annual fund to attract major international sporting events
8 Reform the tax system to encourage investment in tourism infrastructure
9 Commit to streamlining trans-Tasman border formalities and reduce the PMC to $25 for trans-Tasman travel by Australians and New Zealanders
10 Increase funding for federal national parks
With our unique and diverse natural environmentandourvibrantcitiesandregions,Australiaisaplacetheworldwantstovisit.There’strulynothing likeAustralia.
However,ourcompetitorsalsorecognisethis opportunity and are investing heavily inmarketingandproductdevelopment.Australiacannotaffordtobecomplacent.
This paper provides a roadmap for prosperitybygrowingAustralia’s visitor economy.
WiththerightsupportAustraliacanreachthetargetsetbythefederal,stateandterritorygovernmentsofdoublingovernighttourismexpenditureby2020andtherebygrowingjobsandprosperity.
Thiswillrequiresupportinfivecriticalareas that are outlined in this paper.
Domestic and international visitors spend an average of $260 million across Australia every day.
Australia is not alone in recognising the potential of the Asian Century and it is critical that we don’t lose the competitive advantage of our proximity to Asian through complacency.
1 Grow demand for travel to and withinAustralia
2 Boostinvestmentin tourism infrastructure
3 Enhance the visitor experience
4 Improvethecompetitiveness ofAustraliantourism
5 Expandthetourismworkforce
Tourism must be high on the agenda of all political parties in the next term of parliament.
TTF’s ten point plan for tourism
Image:SA;FlindersRanges.CopyrightTourismAustralia.Photographer:MikeNewling
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Grow demand for travel to and within AustraliaMarketingandpromotionplayakeyroleinattractinginternationalvisitorstoAustraliaandinencouragingAustralianstotraveldomestically.
CrucialtogrowingawarenessofAustraliaasadestinationisacommitmenttoTourismAustraliaandensuringitisresourcedappropriatelytoexpanditsactivitiesingrowthmarketsandconfidentlyenterintocooperativemarketingpartnershipswiththeprivatesector.Fundingisalsorequiredtosupportbusinesseventbidswhichattracthigh-yieldbusinessvisitors,whileacoordinatedapproachbyAustralia’sinternationalagenciescoulddeliverabetterreturnoninvestmentforthevisitoreconomy.Finally,additionalaviationcapacitywillberequiredtomeettheincreaseddemandfortraveltoAustralia.
1A CHAMPION THE ROLE OF TOURISM AUSTRALIA AND INCREASE ITS FUNDING
AsustainedincreaseinfundingforTourismAustraliawillhelpmaintainandgrowAustralia’sprofileasadestination.Withglobalcompetitionintourismcontinuallyincreasing,TTFisseekingacommitmentfrombothsidesofpoliticstomaintainTourismAustralia,toretainitsgovernancestructureandtotakealong-termviewofitsfundingtogiveAustraliathebestchanceofreachingtheTourism2020targetofincreasingovernighttourismexpenditure.ThedeclineinTourismAustralia’sfunding(inrealterms)mustbereversed.
TourismAustraliamustbeabletocommittolong-termcooperativemarketingagreementswithcorporatepartners.RecentgrowthininternationalarrivalstoAustraliahasbeenenhancedthroughTourismAustralia’spartneredapproachtomarketing.WithAsiaprovidingthemajorityof thegrowthininternationalarrivals,wearealsoseekingalonger-termcommitmenttoadditionalsupportformarketinginAsia,beyondtheAsiaMarketingFund,whichwillexpirein2015-16.
1B CONTINUE TO SUPPORT THE TOURISM 2020 TARGETS AND STRATEGY
TheTourism2020targettoincreaseovernighttourismexpenditurebytheendofthedecade,tobetween$115and$140billionayear,hasbeenadoptedandsupportedbytheindustry.Theaccompanyingstrategyhavesetbenchmarksforinvestmentandindustryperformancewhicharehelpingtoaligneffortsinreachingthetarget.TTFsupportsthetargetandiscallingforbipartisansupporttogivecontinuityandcertaintytoindustry.AreviewofthestrategyasitreachesitshalfwaymarkwouldprovideanopportunitytofocuseffortstoensureAustraliaachievestheobjectivesofthestrategy.
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Image(top):GreatOtwayNationalParkPhotographer:RobertBlackburn/RobBlackburn
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1CENSURE ALL GOVERNMENTS AND AGENCIES ARE WORKING COOPERATIVELY TO PROMOTE AUSTRALIA
Acoordinatedwhole-of-governmentapproachtopromotingAustraliainternationallywilldeliveramuchhigherreturnoninvestment.AlevelofconsistencyinpromotingAustraliantrade,education,employmentandinvestmentopportunitieswiththoseofTourismAustraliacoulddeliverasignificantboostininterestandawarenessofAustraliaasatraveldestination.Withthepotentialfordecisionsacrossnumerousfederalportfoliostoimpactontourism,TTFsupportstheestablishmentofawhole-of-governmentvisitoreconomycommitteetoensuretheindustry’sinterestsarerepresentedandensure each ministry understands the effects of its decisions on tourism.
1D BOOST AVIATION CAPACITY TO INCREASE VISITOR NUMBERS
Aviationaccessisakeydeterminantinthesuccessofadestination.ThismakesbuildingaviationcapacityinexistingmarketsandenticingairlinestoestablishnewroutesfundamentaltoincreasingthenumberofpeopletravellingtoandwithinAustralia.Ongoingsupportisrequiredtofundairlineattractionincentiveschemes.ItisessentialthatbilateralnegotiationsonairservicesagreementscontinuetokeepavailableaircapacityaheadofdemandandthatAustraliacontinuestopushforincreasedliberalisation.
EnsuringartificialconstraintsdonotrestricttheoperationofAustralia’skeygatewayairportswillfoster growth in international arrivals and allow for additional domestic flights. This is particularly trueinSydney,wherethecurrentmovementcapislimitingthecapacityofthecountry’slargestairporttomeetthegrowthinpassengermovementsandishavingsignificantflow-onimpactsacross the country.
ItisalsocriticaltoensurethatSydney,asthenation’slargestcityandprimaryinternationalgateway,hassufficientaviationcapacitytodealwithfuturedemand.PlanningforasecondarySydneyairportmustbeginnowtoallowsufficienttimetobuildtheairportandthesupporting landtransportlinks.TTFbelievesBadgerysCreekisthebestsiteforasecondarySydney airportandcallsonbothmajorpoliticalpartiestocommittothislocation.
1EPROVIDE FUNDING TO SUPPORT INTERNATIONAL BUSINESS AND MAJOR EVENTS
Internationalbusinesseventsattracthigh-yieldvisitorstoAustralia,manyofwhomengageinleisuretravelwhileinAustralia.Additionally,businesseventsattractthoughtleadersfromvariousfieldswhoexchangeideaswithinternationalanddomesticcounterparts,whichcanleadtocollaborationsandfutureinvestmentinAustralia.MatchedfederalgovernmentfundingisrequiredtosupportstategovernmentbidsforinternationalbusinesseventstoensurethatAustraliacancompetewithregionalrivalsinanincreasinglycompetitiveglobalmarketplace.
TTFiscallingfora$10millionannualnationalbusinesseventssupportfundtoassistineventacquisitionacrossmeetings,incentives,conventionandexhibitions.Fundsareonlyexpended ifeventsbidsaresuccessful,guaranteeingareturnongovernmentinvestment.
1F MAXIMISE THE ECONOMIC RETURN FROM INVESTMENT IN MAJOR EVENTS
Australiahasthepotentialtocaptureagreatershareoftherapidlygrowinginternationalsportstourismmarket.Sportingevents,rangingfromsmallscaleandamateurthroughtomegaevents suchasanOlympicGames,provideacompellingreasontovisitAustraliaaswellasaplatformtomarketourdestinationsglobally.However,AustraliaisincreasinglybeingoutbidbynewandemergingdestinationsintheAsia-Pacificregion,whichhaverecognisedthepowerfulroleofmajorsporting events as economic drivers.
ForAustraliatoremaincompetitiveasaninternationaldestinationhostformajorsportingevents,astrategicapproachandplanisrequired.TTFiscallingfortheexistingMajorEventsTaskforcetobeformalisedasacoordinatingbodytaskedwithensuringAustralialeveragesgreatereconomicreturnfrommajorsportingevents,whileidentifyingfutureopportunitiestobidforandsecureapipelineofevents.TheTaskforceshouldhaveaccesstoabidfundtopartnerwithstategovernmentsandsportingcodestobidforandsecuremajorsportingeventsforAustralia.TTFbelievesthat,initially, $5millionperannumshouldbeprovidedtothebidfund.
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Boost investment in tourism infrastructureInvestmentindemand-drivingtourisminfrastructureisrequiredtohelpAustraliacompete ontheglobalstageandiscriticaltoAustralia’schancesofreachingtheTourism2020targets.Publicinvestmentintourisminfrastructurefostersprivatesectorinvestmentinupgradedandexpandedaccommodationstock,aswellasinnewandrefreshedtourismproductsandexperiences.InconjunctionwithAustrade,TourismAustraliareleasedalistof‘shovel-ready’investmentopportunitiesinmid-2012aspartofeffortstorenewAustralia’stourismoffering and improve our attractiveness and competitiveness as a destination.
BuildingAustralia’saccommodationcapacityiscentraltoenablinggrowthinthevisitoreconomy,especiallyintheinternationalgatewaycitiesofSydney,Melbourne,BrisbaneandPerth,whereoccupancyratesareat80percentorhigher.Thelimitedsupplyofaccommodationcanpricesomevisitorsoutofthemarketandreducedispersaltoregionalareasifpotentialvisitorscannotsecuresuitableaccommodationonarrivalinthosegateways.However,itisalsocriticaltomanagetheexpansionofaccommodationcapacitywithinanyindividualmarket,withroomsaddedinasustainablefashiontofosterincrementalgrowthandensurethesector’scontinuedstrength.
ReformstoAustralia’staxationregimeareneededtoencourageprivatesectorinvestmentinvisitoraccommodation.Thereforms,includingaccelerateddepreciationforcapitalworks, musttakeintoaccountthe24/7natureoftourismoperations.
Refreshingtourismproductiscriticaltoimprovingthevisitorexperience.Iconicattractionsintoptourismregionscanencouragevisitorstostaylongeranddelivermorevisitorexpenditure,whilethecreationofnewexperiencesinregionalareascanhelpdrivevisitationbeyondthecapitalcities.Governmentsshouldinvestinprojectswhichaddressinstancesofmarketfailureandattractadditionalvisitorsandspending.TTFhasidentifiedtourisminfrastructureprioritiesinthecountry’s20mostpopulartourismdestinations.
2A INCREASE GOVERNMENT INVESTMENT IN STRATEGIC TOURISM ASSETS
Whileinvestmentintourismassetslikeconventionandexhibitionfacilities,entertainmentcentres andprecincts,recreationandpublicspaces,andsportingstadiafallstostategovernment,federalfundingcanexpediteprojectswhichwillstrengthenthevisitoreconomy.Thisincludes,forexample,fundingforvisitorinfrastructureinfederalnationalparksandnationalculturalinstitutions. Inaddition,thefederalgovernmentcanhelpfacilitatevisitationtokeydestinationsthroughtheprovisionofstrategicinfrastructure,likeroads,ports,airportsandothertransportinfrastructure.
2B REFORM THE TAX REGIME TO ENCOURAGE PRIVATE SECTOR INVESTMENT
Reformstothecurrentcapitalworksanddepreciationregimesshouldensurethatthetaxtreatment of investment in visitor accommodation reflects the operational life of these investments.Tostimulateinvestmentinhotelrefurbishmentsandnewdevelopments,animmediatedepreciationbonusof50percentofthecostofcapitalworks,withtheremainingbalancedepreciatedover12.5yearsatfourpercent,isrecommended.
Inaglobalinvestmentmarket,accesstooverseasfinanceisvitalforthedevelopmentoftheAustraliantourismindustry.Thedecisioninthe2012-13budgettodoublethefinalwithholding taxrateformanagedinvestmenttrustsfrom7.5to15percentunderminedinvestorconfidence inthegovernmentandshouldbereversed.
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Image:SapphirePrincess.CarnivalAustraliacopyright.Photographer:JamesMorgan
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2C ALIGN AIRCRAFT DEPRECIATION SCHEDULE WITH ASIAN ECONOMIES
Australia’sairlinesarealsodisadvantagedbythetaxregimesurroundingthedepreciationofaircraftrelativetotheirinternationalcompetitors.Singapore,forexample,allowsthedepreciationofaircraftoverthreeyearsandChina,arapidly-growingaviationmarket,overfiveyears.TTFstronglysupports the reduction of the effective life statutory cap for aircraft from ten years to three years and the reintroduction of the investment allowance for aircraft assets. This would support future fleetgrowthandputAustralianairlinesonalevelplayingfieldwithregionalcompetitors.
2D PROVIDE APPROPRIATE FUNDING FOR FEDERAL NATIONAL PARKS
Australiaisnotedtheworldoverforitsclean,greenenvironment.FromtheGreatBarrierReef totheGreatOceanRoad,andfromtheAustralianAlpstoKakadu,ournationalparksandnaturalestateareworld-renowned.Tourismactivitiescanhelpachieveconservationgoalsbygrowingawarenessoftheuniquechallengesfacingmanyoftheseareasandbydevelopingsustainablerevenuestreamstohelpcoverthecostofparkmanagementandmaintenance,aswellaspayingforvisitorinfrastructureincludingsignage,walkingtrailsandinterpretativecentres.
ParksAustralia’sandTourismAustralia’sNationalLandscapesprogramisconsideredindustrybest-practiceinencouragingcollaborationbetweentourismandconservation,providingtargetedinvestmentiniconicnature-basedexperiences.ConsistentfundingforParksAustraliaisrequired toensuretheseareasareappropriatelymanagedandvisitorinfrastructureismaintained,allowingcontinuedvisitorengagementinnationalparks.
2ESUPPORT THE CONTINUING GROWTH OF CRUISE SHIPPING THROUGH INFRASTRUCTURE AND POLICIES
CruisingisthefastestgrowingsegmentofAustralia’stourismindustryandthatgrowthisexpectedto continue over the coming years. The federal government has a role to play in facilitating the continuinggrowthofAustralia’scruisesector,especiallythroughfundingtheprovisionofportfacilitiesandallowingaccesstoberthscontrolledbynationalagencies,includingthenavalbase atGardenIslandinSydney.ThisaccessiscriticalasathirdofallcruiseshipsvisitingSydneywill beunabletofitundertheSydneyHarbourBridgewithinthreeyearsandthatfigureisexpected toriseto56percentby2020.
2F MAINTAIN RESEARCH TO SUPPORT INVESTMENT DECISIONS
DataiscriticaltoallowingtheAustraliantourismindustrytomakeinvestmentdecisions.AkeytoolforthetourismsectoristheSurveyofTouristAccommodation(STA)conductedbytheAustralianBureauofStatistics.Thissurveyprovidesextremelyvaluableinformationonaccommodationincludingoccupancyrates,roomratesandrevenue,aswellasameasureofaccommodationsupplyfordestinationsacrossAustralia.Earlierthisyear,theABSannounceditwasreducingthesurveyfromaquarterlytoanannualcollectionandreporttomeetbudgetarytargets.TTFiscallingforthisveryvaluabledatasettocontinuetoprovidetheindustrywithtimelyinformationwhichformsthebasisofdecision-makingregardinginvestmentinaccommodation.
TTFisalsocallingforadditionalfundingtosupporttheindustry’stourismresearchagenda,enablingTourismResearchAustraliaandthetourismindustrytoaddresstheidentifiedgapsinresearch.
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Enhance the visitor experience Inthecurrenteconomicclimateandwiththedollarremaininghigherthanaverage,increasingproductivitywillbeessentialifAustraliaistoimproveitsinternationalcompetitivenessand presentacompellingvaluepropositiontoprospectivevisitors,bothdomesticandinternational.Improvingthevisitorexperiencebeginsatthetimeintentionbecomesadecisiontotravel. Fromthatpointon,theprocessshouldbeasseamlessandsimpleaspossible,startingwith thevisaapplicationrightthroughtodepartingfromAustralia.
3A SIMPLIFY VISA APPLICATIONS
Whileprogressisbeingmadetosimplifyandexpeditethevisaapplicationprocesswiththemovetoonlinevisaprocessingforallcountries,thereremainsroomforimprovement,includingtheprovisionofapplicationformsinotherlanguages.User-paysprocessingmodelswouldprovideafasteroptionforpassengerswillingtopayapremium,whichshouldextendtopreferredcustomsandimmigrationclearanceonarrivalinAustralia.TTFalsosupportstheimplementationofamoreequitablefeestructureforvisaswhichbetterreflectsthecostofprocessing,andareviewofchargesassociatedwithvisitor,studentandworkingholidaymakervisasinlightofsignificantincreases over the past few years.
3B IMPROVE BORDER PROCESSING
BorderformalitiesarethefirstimpressioninternationaltravellershaveofAustralia.ItisthereforecrucialtoensurethatAustralia’sborderagenciesareadequatelyfundedtodeliverworld-classpassenger processing.
WhiletheintroductionofSmartGateself-servepassportkiosksisremovingsomeoftheworkload,itremainsessentialtohavesufficientfrontlineCustomsandImmigrationstaff.TTFisseekinggovernmentcommitmenttoinvestinpassengerfacilitationtechnologyandtoreinstateCustomsfundingforfrontlinestaffinresponsetoincreasingnumbersofinternationalvisitors.
3C MAKE TRANS-TASMAN TRAVEL EASIER
Adomestic-liketravelexperiencewouldencouragemorevisitsbyNewZealanders.Asafirststep,TTFiscallingforthePassengerMovementChargeforvisitorsfromNewZealandtobecutto$25.TTFbelievesastreamliningofborderformalitiesatexistinginternationalairportsshouldbecoupledwithdevelopinganewmodelforregionalairports.Together,thesereformswillstimulatedemandfortravelandimprovethedispersalofNewZealandvisitors.
WithAustraliaandNewZealandtoco-hosttheCricketWorldCupin2015,TTFiscallingongovernmentstorecognisethetourismpotentialofthissignificantsportingeventandtowork withtheNewZealandgovernmenttocreateacommonspecialeventvisathatwillgivevisitors theflexibilitytotraveltobothcountries.
3D SUPPORT AGENCIES WORKING TO GROW VISITATION FROM ASIA
ItisvitalthatTourismAustralia’sexpansionintoAsia,especiallyintosecondarycitiesinChina,issupportedbyinvestmentinotheragenciesthatfacilitatetraveltoAustralia.Withthevisaapplicationprocessanintegralpartofthetravelexperience,itisessentialthatsufficientresourcesareallocatedtomatchincreasedmarketingactivityandtraveldemandandensureapprovalsaregranted promptly.
3E SUPPORT NATIONAL CULTURAL INSTITUTIONS
Ournationalculturalinstitutionsdrawhundredsofthousandsofvisitorseachyear,making avitalcontributiontotheculturalfabricofthecountry.Itisessentialthattheseassets continuetobesupportedtoensureAustralia’sculturaltourismexperiencesremainattractive andgloballycompetitive.
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Image:NT;AliceSprings.CopyrightTourismAustralia/TourismNT.Photographer:SteveStrike
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Improve the competitiveness of Australian tourismTourismisaglobalindustryandmanyothercountriesarerecognisingthepotentialofthesector tocreatejobsandeconomicactivity.Inthefaceofgrowingcompetition,Australiamustacttoimproveourcompetitiveness.Regulatoryreformisrequiredtoremovebarrierstoinvestmentandtravel,aswellasprovidingtherightframeworktofosterinvestmentinaccommodation,attractionsand other visitor infrastructure.
4A FREEZE AND REVIEW THE PASSENGER MOVEMENT CHARGE
Australia’sPassengerMovementCharge(PMC)isthehighestdeparturetaxforshort-haultravellersofanycountryinthedevelopedworld,whichputthecountryatadisadvantagerelativetoourregionalrivals.Introducedasacostrecoverylevy,thePMCnowsignificantlyovercollectsrelativetothecostofprovidingpassengerfacilitationservices.TTFbelievesafullProductivityCommissionreviewofthePMCisrequiredtoassessitsimpactonthecompetitivenessoftourism.TTFisalsocallingforabipartisanpre-electioncommitmenttofreezethePMC.Inaddition,TTFcallonthepartiestoreducethePMCto$25fortrans-TasmantravelbyAustraliansandNewZealanders.
4B STOP UNFAIRLY TAXING TOURISM
InadditiontoPMCincreases,tourismhasbeenhitwithanumberofnewtaxesandcharges,amongthemtheproposedairportpolicetaxandvisafeeincreases,includinganalmost30percenthikeinthecostofaWorkingHolidayMakervisa.Factorintheimpactofthecarbontaxonthistrade-exposedsector,andthesectorhasbeenhitwithadisproportionateincreaseintaxesandcharges.TheseextracostsonlyservetomakeAustraliaalesscompetitivetraveldestination.TTFiscallingforacomprehensivereviewoftourismtaxesandcharges.Wearealsoseekingcommitmentsthatnonewtourismtaxeswillbeintroduced.
4C REFORM THE TOURIST REFUND SCHEME TO ENCOURAGE RETAIL SPENDING
Australia’scompetitivenesscanbeimprovedthroughenhancementoftheTouristRefundScheme(TRS),whichallowsinternationalvisitorstoclaimbacktheGSTonsomeretailpurchases.However,alackofawarenessandrestrictionsaroundtheschememeanitisunder-utilisedbyinternationalvisitors.ReformoftheTRScouldimprovevalueforinternationaltourists,formanyofwhomshoppingisakeytravelactivity.ContractingtheTRSouttoaprivateoperator,improvingawarenessoftheschemeandaccesstoit,wouldincreaseitsusageandaddtoexpenditurein the visitor economy.
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Image(top):Skyline,GoldCoast,Qld.CopyrightGoldCoastTourismCorporation.Image(above):ShoppingatCentrePlace.Photographer:RobynLea
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Expand the tourism workforce Governmentfiguresshowaround36,000jobvacanciesintourismandhospitalityacrossAustralia,withthatnumbersettogrowto56,000by2015.Despitethesignificantinvestmentmanytourismbusinessesmakeintraining,manystruggletofindstaffandalsohavetroubleretainingthem,whileothersarehamstrungbyaworkplacerelationsregimewhichdoesnotrecognisethe24/7natureoftourismandthevisitoreconomy.Thechallengeoffindingandretainingtherightstaff hasanegativeimpactontheabilityofbusinessestoofferanappropriatelevelofservice.
5A REVIEW PENALTY RATES
SometourismandhospitalitybusinesseschoosenottoopenonSundays,becausetheirlabourcostsaresimplytoohigh.InconjunctionwithorganisationsincludingtheAccommodationAssociationofAustralia,Restaurant&CateringAustraliaandTourismAccommodationAustralia,TTFisseekingsupportforaFairWorkAustraliareviewofworkplacearrangementsastheyapply totourismandhospitalityoperators,particularlypenaltyrates,toallowtheestablishment ofaneffectivesystemofworkplaceregulationfortourismandhospitality.
5B REFORM AND EXPAND THE WORKING HOLIDAY MAKER SCHEME
Workingholidaymakers(WHM)provideaflexibleworkforcefortourismbusinesses,especiallythemanyseasonaloperatorsinregionalareas.Since2005,asecond-yearextensionoftheWHMvisahasbeenavailableforsomeindividualswho,intheirfirstyear,undertakethreemonthsofworkwitharegionalemployerintheagriculture,miningandconstructionindustries,amongothers. TTFbelievesWHMvisaholderswhospendthreemonthsormoreworkinginregionaltourism andhospitalitybusinessesshouldalsobeabletoapplyforasecond-yearWHMvisa.Thiswouldboostthelaboursupplyoftheseregionsandimprovetheircompetitiveness.
InlinewiththefocusofTourismAustralia’sexpandedactivitiesinAsiaandalignedwiththefederalgovernmentseffortstoengagemorebroadlywithAsia,TTFrecommendstheexpansionoftheWHMschemetoincludeChina,India,VietnamandthePhilippines.Theschemeshouldalsoincludeourotherkeyinternationalgrowthmarkets,andcurrentcapsoncountrieslikeIndonesiaandMalaysiashouldbelifted.Inaddition,TTFbelievesthattherequirementforsucharrangementstobereciprocalisunnecessarilyrestrictive.TheschemecanalsobeimprovedbyraisingorremovingagelimitstoallowolderworkerswithvaluableskillsandexperiencetocometoAustraliaandliftingthe6-monthcaponemployment,recognisingthesignificantinvestmentintrainingrequiredbeforenewemployeesarejob-ready.
5C EXPAND THE SEASONAL WORKER SCHEME
Thehighlyseasonalnatureofthevisitoreconomyinmanyregionalareascreatessignificantchallengesforbusinesses,whichfaceanoftendesperateneedforstaffduringpeakperiods. Thisproblemhasbeenheightenedbydemandsfromtheresourcessector.Forexample,thechallengesfacedbyQueenslandislandresortsandAustralia’sNorthinattractingseasonalstaffhavebeenakeyfactorinthefinancialproblemsconfrontingtheseregions.Whilelimitedpilotprogramsareunderway,furthereffortandresourcingareneededtodeveloptheseprograms for the tourism industry.
5D REVIEW SKILLED MIGRATION
Thetourismindustryrequiresstaffwithspecificskillswhichare,attimes,inshortsupplyinAustralia.Therefore,TTFisurgingthatconsiderationbegiventoreinstatingchefsandcooks totheskilledoccupationliststoensuretheadequatesupplyofappropriatelytrainedstaff.
Inaddition,457visasareusedbytourismandhospitalitybusinessesunabletofindsuitablestaffwithinAustralia.Makingtheapplicationprocessfor457visaslessonerouswouldseeagreatertakeuprateamongsmalltomediumenterpriseswhichcouldderivesignificantbenefitfromsuch ascheme.Thetourismindustrysupportsthe457visaregimeandisopposedtoamendmentswhichwouldaddfurtherburdentotourismbusinesses.
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TTF IS A NATIONAL MEMBER-FUNDED CEO FORUM, ADVOCATING THE PUBLIC POLICY INTERESTS OF THE 200 MOST PRESTIGIOUS CORPORATIONS AND INSTITUTIONS IN THE AUSTRALIAN TRANSPORT, PROPERTY, TOURISM & INFRASTRUCTURE SECTORS
8TH FLOOR 8-10 LOFTUS STREETSYDNEY NSW 2000T +61 2 9240 2000F +61 2 9240 2020
www.ttf.org.au
CoverImage:Vic;GreatOceanRoad;TwelveApostles TourismAustraliaCopyright Photographer:RichardPowers