$40m funding boost gives NSW tourism hope

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10 June, 2008

The decision by the New South Wales Government to lift tourism funding by $40 million over the next three years has been welcomed by the Australian Tourism Export Council (ATEC), which said the move would help boost a sector which is suffering in the current tough economic climate.

ATEC Managing Director Matt Hingerty said the funding boost, announced today with the release of the O’Neill Review into tourism, was a wise move by a government which had listened to the advice of tourism industry groups such as ATEC.

“The extra $40m announced by the Iemma Government for the tourism industry is a great investment in a sector which is struggling under the burdens of soaring fuel costs, increased Federal Government taxation, the high dollar and troubled global economic forecasts,” Mr Hingerty said.

“This announcement is a signal that the New South Wales Government understands the industry’s plight.

“In particular I welcome the focus on promoting Sydney as Australia’s iconic tourist destination. For Australia to be successful Sydney has to be successful, therefore this strategy is in the national interest,” Mr Hingerty said.

According to Tourism Australia’s International Visitors Survey December 2007, the inbound tourism industry is worth $5.8 billion annually to the New South Wales economy. Tourism businesses contribute more than 185,000 jobs, or nearly six per cent of all employment in the state*.

Mr Hingerty said that in recent years the NSW tourism sector had lagged behind that of other states, with its share of national domestic visitation and visitor expenditure falling.

“The NSW tourism industry has been underfunded for years, with tourism budget expenditure in the state amongst the lowest in all Australian states and territories,” Mr Hingerty said. “I especially support the increased emphasis on regional and international tourism and the new focus on high-value tourism segments.

“This is the first step in the right direction to attracting high-spending foreign tourists back to New South Wales. The Government has given us a lifeline – now it’s up to the industry to make the most of it,” Mr Hingerty said.

Mr Hingerty thanked John O’Neill for his hard work in developing the strategy, of which he said ATEC would closely study before releasing detailed comment.

The NSW Government decision to boost tourism funding was in response to a report issued last year by the NSW Tourism Industry Council, of which ATEC is a member.

*Tourism Business Alliance: Submission to the Review of Tourism in New South Wales; August 2007

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Contact: Nick Buchan              
National Media and Communications Manager
Ph: 02 8262 5501
Email: nick.buchan@atec.net.au