TOURISM ELECTION WISH LIST. THE VALUE OF TOURISM. Tourism is currently a $5bn industry in South Australia, generating $1
TOURISM ELECTION WISH LIST THE VALUE OF TOURISM Tourism is currently a $5bn industry in South Australia, generating $13.5m per day of which $6.2m is spent daily in our regions. It is larger than mining and equal to agriculture, forestry and fisheries combined; and it is far more labour intensive so it generates many more jobs.
SIGNIFICANT JOBS GENERATED Tourism provides jobs for more than 32,000 people, most being in small to medium sized businesses. While other industries are shedding employees, tourism and hospitality can create jobs at all skill levels.
THE LOST OPPORTUNITY The South Australian Tourism Plan 2009-14 is coming to an end, with tourism expenditure predicted to fall $1.4bn short of the 2014 tourism target of $6.4bn. This reflects a loss of over 9,000 potential new jobs which will not be realised as a result of failing to meet this target. Tourism, let alone the entire State, cannot afford to lose opportunities of this magnitude. Continued under investment in tourism, risks losing this opportunity and will lead to lost revenue and jobs.
NATIONAL SIGNIFICANCE Tourism is forecast to be Australia’s 2nd fastest growth industry* over the next 20 years. South Australia has world class tourism facilities and experiences to capitalise on this opportunity, but we operate in a highly competitive market where other states and territories are actively looking to gain a greater share.
GREATER INVESTMENT REQUIRED While the State Government recognises our tourism potential, with a tourism expenditure target of $8bn by 2020, our tourism performance has the Government itself declaring achievement of the target as “unlikely”.** The tourism industry needs greater Government investment in order to meet its potential. * Positioning for prosperity? Catching the next wave, Deloitte, 2013 ** South Australia’s Strategic Plan, Progress Report, 2012
For the South Australian tourism industry to achieve its potential, the South Australian Tourism Industry Council (SATIC) considers three key areas must be addressed: 1. INCREASE SOUTH AUSTRALIA’S TOURISM BUDGET -
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Not enough spend - The South Australian Tourism Commission plays a vital role in strategic destination marketing, securing more inbound flights, improving access to our regions and supporting the development of infrastructure. It needs a budget that reflects the size, importance and potential of the tourism sector. Bolster regional tourism - Develop greater interaction with regional tourism stakeholders to better support and promote regions. Strengthen our competitive niche markets - Strengthen the key sectors that make South Australia a world class destination for nature, food and wine and adventure travel. Bigger convention budget - Our convention bid fund needs to be far greater for us to be competitive, noting that convention travellers are significantly high yielding visitors.
2. WHOLE OF GOVERNMENT APPROACH TO TOURISM -
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Improve coordination - The tourism sector extends across State and local government. Improved coordination is needed to realise South Australia’s tourism potential and improve its performance. Strengthen industry engagement - Constructive and effective engagement across Government with the tourism industry will ensure the next State Tourism Plan is developed with a realistic commercial perspective and incorporates all South Australian tourism regions with coordinated, effective and measurable development and marketing campaigns. The importance of local government - Local government needs to be recognised as a major strategic player in regional tourism. Support needs to be provided to help partner with industry on creating digital marketing platforms and promotions to better deliver visitor services.
3. CREATE A MORE COMPETITIVE BUSINESS ENVIRONMENT FOR TOURISM & HOSPITALITY BUSINESSES -
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Reduce operating charges - Need for lower imposts and taxes, less red tape and greater flexibility in the workplace. Reform penalty wage rates - Tourism is a labour intensive, 24/7 service sector. Many businesses cannot afford to operate on weekends, evenings or public holidays. This is costing jobs and diminishing the overall visitor experience. Facilitate investment - The tourism sector needs reinvestment into product as well as infrastructure. Mechanisms to stimulate investment are urgently needed. Government needs to reduce barriers to investment associated with approval delays and excessive red tape and imposts such as land tax levels. We need to be far more competitive if we are to encourage investment away from other states and territories. Increase in skilled labour – Greater effort is required to develop a skilled labour force. Tourism and hospitality must be included in subsidised training programs that meets the needs of industry and which stimulate career paths.
In summary, SATIC considers that a strong and well-funded tourism sector can deliver vital benefits to Government, industry and the community. This outcome is crucial as other sectors of the economy are forecast to contract. The economic, social and environmental benefits which tourism can generate are extensive and there is strong proof that the return on investment is high. More importantly, tourism investment offers sustainable returns for the long term. As we operate in a highly competitive international environment, without stronger Government financial commitments to support tourism, we risk failing to capitalise on the growth opportunities forecast for the sector.
