Increased Funding for Tourism and Hospitality Industry

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The National Tourism Alliance (NTA) has welcomed the Abbott Government’s budget announcement that Tourism Australia’s funding will be increased over the forward estimates to address some of the issues of a weaker Australian dollar. An additional $8.6m in 2015/16 for marketing Australia internationally, and a total of $36.7m over the forward estimates will be provided to Australian’s national marketing organisation. Tourism is Australia’s largest services export, which has huge potential for growth for the next twenty years. This is good news, as tourism and hospitality employs more people and injects more money and activity into local economies, especially in regional areas. “With a record number of Chinese people travelling internationally, it’s sound policy to ensure that Australia can attract an increasing share of this market”, said John Hart, Chairman of the NTA. “We know that tourism receipts generated from Asia are potentially $17 million per $1 million spent on tourism promotion. This means that if we continue to market Australia internationally, and the industry continues to grow and invest, there will be a very positive flow on effect to the whole economy through stimulating businesses, creating jobs at all levels, and bringing in dollars from overseas”. There are 280,000 tourism and hospitality operators in Australia, and a large majority are small businesses, such as land and boat tours and safaris, amusement parks, accommodation, food and restaurant services, museums, parks, gardens, retailers and transport operators, who employ about 1 million people. The industry therefore welcomes the reduction in the company tax rate to 28.5 per cent for businesses with a turnoverlessthan$2million. Unincorporatedbusinesseswillalsoreceiveanannual5percenttaxdiscount up to $1,000, and there will be the ability to write-off assets up to $20,000 so businesses can invest in new equipment and technology.

Contact – Juliana Payne CEO National Tourism Alliance Ph 0488 0699 45 END While the industry has welcomed the fact that the Government has kept its promise to freeze the passenger movement charge for the current term, it is concerned that, as tourism is highly competitive and price sensitive internationally, the increases in visa charges for visitors could have an impact on people’s decisions to travel to Australia.image


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