News
Budget Underlines Tourism's Importance to Tasmania's Economy
Posted on Thursday, 17 June 2010 | Permalink
The Tourism Industry Council of Tasmania says today’s State Budget recognised the importance of tourism to the economy.
TICT Chief Executive Daniel Hanna said the Budget delivered on the Government’s key election funding commitments for tourism marketing and events promotion.
Funding for tourism marketing and events promotion has received an additional $7.5 million a year for the next four years.
Total funding for tourism – including funding for Tourism Tasmania – increased from $23.193 million to $30.724 million in 2010-11. Over the four years the additional funding includes $20 million for tourism marketing, $6 million for the Events Attraction Program, $1 million for International and National Arts Events, and $1.4m for the annual MONA FOMA event.
“This is a good outcome for the tourism industry and a reversal of the trend of recent years. It means tourism funding is back on a sustainable path,” Mr Hanna said.
“The budget recognises that Tasmania’s economic health and recovery depend very much on tourism which continues to be one of the State’s major success stories in generating investment and jobs growth. Tourism now generates over $2.2 billion a year in spending and supports over 25,000 jobs. Previous studies have shown that Tasmania’s economy is more reliant on tourism than any other state in the nation, with the highest share of Gross State Product and employment.
The Budget forecast 2.25% economic growth and the creation of 15,000 jobs for 2010-11 and includes the promised cuts to land tax costing the Government $28 million. The Budget is also going to return to surplus sooner than previously anticipated.
“With the funding included in this Budget over the next four years, tourism will be well-placed to continue to play its role as a major generator of jobs and investment. Tasmania will be better placed to compete with other destinations for visitors as the world emerges from the ravages of the Global Financial Crisis,” Mr Hanna said.
Mr Hanna said the TICT also welcomed the allocation of $12.8 million funding for the development of an iconic multi-day walk on the Tasman Peninsula, the Three Capes Track. The Australian Government has also committed $12.5 million to the project, with the private sector funding the remainder of the $33 million development.
KPMG has calculated that the Tasmanian economy could benefit by up to $188 million per annum and 1563 jobs through increased day walk visitors as a result of the development of the Three Capes Track.
Importantly, the report also found that the Tasman Peninsula economy could benefit by up to $43.75 million annually and 323 jobs.
Mr Hanna said the new Track would be a major drawcard and add to Tasmania’s international reputation for world-class wilderness experiences. Tasmania will also be better placed to compete with other world class walking destinations like New Zealand.
“Our parks and wilderness areas are a vital part of the Tasmanian brand so we also welcome the Government’s provision of an extra $4 million a year for four years to the Parks and Wildlife Service for additional staff and bushfire protection,” Mr Hanna said.
