Australian Tourism Directions Conference
29 October 2013
[Check against delivery]
Good morning everyone, it’s fantastic to be here at the Australian Tourism Directions Conference 2013.
As you just heard from Minister Robb, tourism is one of this nation’s great strengths.
Tourism is based on, I used to say 3P’s, but it is actually 4P’s, we’ve got a fantastic Product, we’ve got outstanding People, we are very Proud of what we have, and we deliver outcomes with absolute Passion.
That’s one of our key defining differences for what we do for our tourism industry. A $107 billion industry that directly employs over half a million of our fellow Australians. It is also our largest services export, with international visitor consumption of around $26 billion dollars which represents over eight per cent of total Australian exports.
The Government is committed to the Tourism 2020 and doubling the industry’s overnight visitor expenditure to between $115 and $140 billion by 2020. As you’ve heard the State of the Industry 2013 report highlights that the tourism industry is performing well. But we can do better, and that’s our role. We can get out of the way and allow business to do what business does best. To invest, to grow and to create jobs without government interference. We can do better.
I thought I would share with you some of the highlights from the State of the Industry 2013 report. In 2012-13 international visitor expenditure grew by 5.9 per cent and domestic grew by 3.2 per cent compared to 2011-12.
China continues to be the dominant source of international visitor expenditure and providing almost half of this growth, and that’s why we took a policy to the last election to increase the FIT visitation from China, by providing multi-entry visas for Chinese nationals and also looking at pathway for priority visa processing.
We understand it’s one of our key markets. We understand that it can provide the greatest return and to be honest with you if that’s the direction that security risk profiling America is going to undertake then there is no reason that we shouldn’t go down that same path.
At $80 billion, the industry is currently on track to meet the lower end of the Tourism 2020 goals to double overnight expenditure. Since 2009, domestic and international aviation capacities have achieved 70 per cent and 43 per cent of the aviation targets respectively. Twelve per cent of the tourism jobs target has been achieved and 18 per cent of the room supply target has been achieved. In order to realise the potential of the Australian Tourism industry it is important to assess and where necessary recalibrate any of these targets. Working with the industry and based on current research the Government has revised the room supply target to between 6,000 and 20,000 rooms. That is what will be achievable.
Australian Government tourism priorities
We have priorities, tourism priorities, and government must support future tourism growth by allowing industry to focus on providing quality and innovative tourism products, services and experiences.
Can I say to you that I am pleased that I will be working closely with Minister Robb on tourism. You the industry asked for tourism to be placed in Cabinet. You have Minister Robb, the Minister for Trade and Investment covering the tourism position in Cabinet, we listened to what you said.
Ladies and gentlemen we are keen to spread the message that Australia is open for business and we represent a team, a whole of government approach. This is why the Government has adopted tourism as a key element under the broader trade and investment agenda and moved tourism into the Foreign Affairs and Trade portfolio.
Internationally we will speak with one voice. A spear-headed approach to deliver real outcomes for this great nation. We will see tourism play a key role in increasing export income, attracting international visitation and investment and creating even more jobs.
We are keen to support tourism businesses do what they do best by creating the right operating environment.
As you heard from our Minister, we listened and we understood the impact of a carbon tax. TTF said in their submission carbon tax would kill 6400 jobs, mostly in regional and rural Australia, would cost the economy over $750m dollars. The accommodation sector said it would cost 12% of their bottom line profit- 12%, industry can’t afford that. So we’ve established the legislation to be introduced in the first week of parliament to abolish the carbon tax. We are committed to maintaining the emissions reduction target the same as the government, by a different means. There is no difference in the outcomes only the delivery methods.
We listened to your industry when you came together with one very clear and concise voice and that was on the Passenger Movement Charge. We announced a policy before the election and we’re going to keep it. And that is the Passenger Movement Charge will be frozen for the entire term of this Government. Frozen for the three years – no surprises, no saying one week before a budget that it won’t go up and then putting it up. Not only putting it up, but wanting to put it up by CPI annually.
They’ll be no surprises. We want you the industry to have surety that when you make decisions you understand that the government is behind you without any surprises. It’s important that we reduce the tax burden on business and nowhere more so than the tourism industry. We want you to grow, we want you to flourish, we want you to bring economic benefit to all Australians.
Tourism businesses are at their best when they can focus on developing innovative and high quality products. That is why the Government is committed to reducing red tape.
The Government also recognises the importance of quality and a national quality accreditation framework. But it’s businesses, not Government, that are best placed to identify what quality looks like. This is why the Government will return the responsibility of T-QUAL Accreditation to industry. We will transition this by the end of the financial year and then you the industry, as you said in the conferences we held, will determine the outcomes for industry.
The Government will also refocus funds from tourism grants to demand-driven infrastructure to ensure the benefits of any government investment can be multiplied across the entire tourism sector. We want all industry to benefit from Government investment, not just a select few.
Tourism 2020
In relation to Tourism 2020, I emphasise the Government’s commitment to Tourism 2020.
The Government is working closely with industry and with states and territories to strengthen the Australian tourism industry and address supply-side weaknesses. Particular focus needs to be placed on addressing low investment, insufficient transport capacity and labour and skills shortages. Access to the right workers with the right skills at the right time is critical to the success of our industry. Yet by 2015 we are going to need an additional 56,000 workers to fill vacancies.
Under Tourism 2020, the Government is working with industry to improve its capacity to attract, retrain, retain and up-skill its workers. This is being achieved through the rollout of eight Tourism Employment Programs, the extension of the Seasonal Worker Program for the accommodation sector, and the $8.2m Workforce Futures program by Service Skills Australia.
Research conducted under Tourism 2020 found that labour and skills issues require local solutions; and that’s why Tourism Employment Plans are being delivered. They are industry led and building capacity in regions to meet workforce needs.
Businesses are benefiting through better skills to Government support programs and practical outcomes that are making it easier for them to get the workers they need when they need them, but we need these outcomes to be felt more broadly than the current eight Tourism Employment Plan regions.
On behalf of Minister Robb, I am pleased to launch the Guide to Tourism Employment Plans.
The Guide will help regions develop their own Tourism Employment Plan, boost the quality of their tourism offering and therefore the competitiveness of the region. To support the Guide, a new Tourism Employment Plan Advisory Service through Austrade will provide advice to assist regions with developing their own Plan.
Importantly, Tourism Employment Plans complement the successful Workforce Futures program which has given over 2,200 businesses free workforce advice, one third of these being in the eight Tourism Employment Plan regions. They also closely align with the new industry-led Tourism, Travel and Hospitality Workforce Development Strategy, which I am pleased to launch here today.
As the industry continues to grow, we need to have a strategy in place to make sure that businesses have the right staff, in order to be productive, sustainable, and meet visitor expectations. Tourism after all is all about the experience, the quality of the visitor experience.
Now, this Strategy represents a united vision to address labour and skills challenges across our industry and today I would like to commend the Chairman of Service Skills Australia, who also happens to be the chair of the National Tourism Alliance and CEO of Restaurant and Catering Australia, Mr John Hart and Service Skills Australia, for its development.
I encourage you to use these materials I have launched today to address your labour and skills needs. They are important long-term planning tools rather than short-term band aid measures to address our industry’s labour and skills issues. There are a range of other tools under Tourism 2020 that can assist tourism businesses and I encourage you all to visit Tourism2020.gov.au – a one stop shop website which outlines these tools.
Conclusion
Friends there’s no secret, it’s not the Government that creates wealth. It’s you the people in the industry. We want to do all we can to help you increase the wealth and the opportunity in this great nation. The purpose of today is to make sure that we, the Government, listen closely to your views on how government can support you and make sure that you grow and seize those opportunities that are out there.
Next year, Tourism 2020 will be actually held on a sitting day of the Parliament because then we can have a broad range of members and Ministers who are in the House to come and meet you and sit down and as I have said for the past three years take a whole of government approach with you the industry.
Can I finally say to Andrew McEvoy who has served your industry so well, as the head of Tourism Australia that we’re sad to see you leave. As I have said to you privately and said publicly, I think you’ve done an outstanding job in the three years you’ve had stewardship. We wish you well in your future endeavours; you’ve set a very high benchmark for whoever follows you in that position. Good luck to you.
Ladies and gentlemen as we all know the industry is bigger than any one individual, it’s about all of us and achievements and outcomes for all of us. Thank you for the opportunity to be here today and I look forward to continuing to work with you, in an industry I support and respect so much. Thank you.
Media contacts: Mr Baldwin's office 02 6277 4200
