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REGIONAL TOURISM STATISTICS TO HIGHLIGHT THE ECONOMIC IMPACT OF TOURISM
REGIONAL TOURISM AND THE FEDERAL GOVERNMENT’S PROPOSED TAX REFORM
NATIONAL LONG TERM TOURISM STRATEGY UPDATE
TOURISM OPERATOR MEETS INTERNET – A ‘HOW TO’ STORY WITH A HAPPY ENDING
GROWING REGIONAL TOURISM
2010 AUSTRALIAN REGIONAL TOURISM CONVENTION UPDATE
UPCOMING REGIONAL TOURISM INDUSTRY EVENTS & ACTIVITIES
REGIONAL TOURISM STATISTICS TO HIGHLIGHT THE ECONOMIC IMPACT OF TOURISM
For many of us, budget season is well and truly upon us and many local governments and regional tourism organisations are setting in place their financial strategy for the year ahead.
In some communities and organisations, it can be a challenge to ensure investment in tourism is prioritised. To aid those who are experiencing these challenges, the ARTN has included a summary of pertinent statistics highlighting the economic impact of tourism on regional Australia in its Online Resource Library as well as links to useful websites and resources all designed to assist regional tourism practitioners in their quest to keep tourism ‘on the agenda’.
Access to the Library is exclusive to ARTN Members.
To find out more about ARTN Membership, CLICK HERE.
REGIONAL TOURISM AND THE FEDERAL GOVERNMENT’S PROPOSED TAX REFORM
As you may be aware, the Federal Government has announced some significant reforms to the Australian Tax System. These reforms are in response to some of the recommendations put forward by the Henry Tax Review. Below is a summary provided by the National Tourism Alliance, of which the ARTN is a Member, explaining how these reforms may affect the tourism industry.
The National Tourism Alliance is the forum in which peak representative bodies from each facet of industry meet with Government to address and explore the key challenges and opportunities facing tourism now and into the future. The ARTN is the voice of regional Australia in that forum and all Members are encouraged to utilise the ARTN to amplify their message to decision makers.
National Tourism Alliance’s Summary on the Federal Government’s Tax Reforms & The Henry Tax Review
The Henry Review is incredibly comprehensive in its scope; however, the Rudd Government’s initial response has only addressed a limited number of its recommendations. Other recommendations, including the simplification of personal tax, addressing the governance of the tax system and looking at ways to incentivise personal savings have been identified as being the subject of further review and consultation. Other recommendations, such as congestion pricing, have not been addressed by the Government. The Opposition have stated that the Government has ‘accepted 2.5 recommendations, rejected 27, and left the door open on 108’.
There have been various responses to the Government’s take-up of recommendations from the Henry Tax review. David Koch of Channel 7, has labelled the Government’s response ‘wimpy’ and the opposition have described the response as containing ‘more spin than substance with just two and a half of 138 recommendations having been accepted’. There has further been criticism that there has been no reform of income or property taxes with some seeing it is a kick in the face for everyone who has called for major reform.
Yet the Government’s response does contain a number of wins for tourism, including:
• Congestion pricing for road users: There was significant concern from industry that the proposed congestion pricing would have a detrimental impact on tourism, specifically, on drive tourism. Industry has been granted a reprieve as this issue has not been addressed by the Government.
• Alcohol: The Henry Review recommended the introduction of a volumetric taxation of alcohol, however, this recommendation has been rejected by the Government.
• Tax exemption for clubs: The Henry Review recommended that simple and efficient tax arrangements should be established for clubs with large trading activities in the fields of gaming, catering, entertainment and hospitality. The Government has responded that there will be no change to the income tax arrangements for clubs.
• Small business: The Government has largely adopted the recommendations from the Henry Review regarding specific small business tax incentives including:
• From 2013 income year there will be an instant write-off for assets worth up to $5,000
• The depreciation of all other assets (excluding buildings) in a single pool at a 30 per cent rate
• There will be an acceleration of the phased reduction in company tax to 28 per cent.
However, the benefit of these reforms may be ameliorated given the incidence of small business who operate within a company structure. This is discussed below. Of major concern for tourism, is the impact the increase in the superannuation guarantee will have on small business. This is discussed below.
Major Reforms
Superannuation
The Government has proposed a gradual increase in the Superannuation Guarantee (SG) rate from 9% to 12%. The SG rate will be increased gradually with initial increments of 0.25 percentage points on 1 July 2013 and on 1 July 2014. Further increments of 0.5 percentage points will apply annually up to 2019-2020 when the rate will be set at 12%.
The Opposition has announced that this increase in superannuation will cost small businesses approximately $10 billion per year and will not be balanced by the reduction in company tax, especially considering a number of small businesses will not qualify. Further, it is interesting to note that this proposal is not found within the Henry Review which, in an interim report in May 2009, found that 9% would provide sufficient retirement income to those on typical and upper incomes who had contributed throughout their working lives. The increase in the Guarantee will, however, increase the pool of superannuation savings and the accompanying measures which assist low income earners will assist in addressing equity issues.
Reduction in company tax
The Henry Review proposed that the company tax should be reduced from 30% to 25%. The Rudd Government will reduce company taxes to 28% from 2012 for small businesses and from 2014 for all other businesses. However, there are concerns that the benefit this will have to small business is limited given the incidence of small businesses who operate within a company structure.
Resource super profits tax
From 1 July 2012 there will be a 40% Resource Super Profits Tax (RSPT). Under this tax, the Government will provide a refundable credit to resource entities for state royalties and will guarantee to contribute 40% of the investment cost of a resource project. Phillip Coorey from the Sydney Morning Herald has noted that this tax will raise up to $12 billion a year and will be used to boost retirement savings, lower company tax and build infrastructure, whilst still leaving room for $2.6 billion in promises for the election this year.
Click on any of the following links to find out more.
Treasury’s final report on Australia's Future Tax System Review
The Australian Government's initial response to the Review
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NATIONAL LONG TERM TOURISM STRATEGY UPDATE
The National Long Term Tourism Strategy was released by the Minister for Tourism, the Hon Martin Ferguson AM MP, in December 2009 and detailed nine key points designed to establish a framework and principles to ensure tourism is a competitive and sustainable industry into the future. An integral component of the Strategy is the reinvigoration of the Tourism Minister’s Council which will lead its implementation. The following media release was issued by the Tourism Minister’s Council on Friday 30th April and provides an update on their progress.
Tourism Ministers Progress National Long Term Tourism Strategy - Media Release Issued 30 April 2010
The Chair of the Tourism Ministers’ Council (TMC), Martin Ferguson AM MP, has announced 41 practical actions to drive the implementation of the National Long-Term Tourism Strategy. Speaking after their meeting today in Canberra, Minister Ferguson said the 41 measures were part of an investment in the long-term future of the tourism industry, benefiting everyone from the smallest tourism businesses through to the largest multinational companies.
The TMC committed $2.2 million to implement a number of measures over the next 18 months including:
• Seeking inclusion of chefs on the skilled occupations migration list
• Improving labour mobility by seeking support for national uniformity for Responsible Service of Alcohol qualifications
• Removing barriers to investment by seeking the inclusion of tourism in the Commonwealth Enterprise Connect Program
• Improving destination management planning, particularly through undertaking pilot projects and identifying gaps in research and dissemination
• Building stronger links with tourism transport planning through restructuring the National Tourism and Aviation Advisory Committee
• Supporting industry resilience by releasing the study of economic impacts of climate change on tourism; and
• Enhancing indigenous employment through identifying tourism program gaps and scoping out opportunities for inclusion of tourism in existing programs across Governments.
Minister Ferguson said: “This is an historic partnership between the Commonwealth and the States and Territories. Today’s outcome, on top of my recent announcement of Australia’s new $150 million global marketing campaign plus the ongoing commitment to tourism marketing by States and Territories, means that Australia now has an integrated tourism policy which addresses both supply and demand.”
Tourism Ministers agreed to hold an inaugural Tourism Research Conference in November 2010, which will feature the release of Australia’s first State of the Industry Report highlighting key trends and providing an assessment of the performance of the tourism industry.
Minister Ferguson said: “The State of the Industry Report will be an innovative and holistic assessment of the tourism industry’s performance, challenges and trends. Ministers agreed to the establishment of the Tourism Quality Council and appointment of Simon Currant (Chair), Shirley McPherson, Ray Schleibs, Rolf Dülks and Wayne Clift as the inaugural board members. The Council will be responsible for implementing Australia’s first National Tourism Accreditation Framework designed to provide consumers with increased confidence through marketing businesses adhering to a quality standard.
The next meeting of the Tourism Ministers’ Council will be held in Darwin on 10 September 2010.
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TOURISM OPERATOR MEETS INTERNET – A ‘HOW TO’ STORY WITH A HAPPY ENDING
The Australian Tourism Data Warehouse (ATDW) is owned by Tourism Australia and all the State/Territory government tourism organisations. Established in 2001, ATDW provides a comprehensive, high quality database of tourism products and destinations that is available to online tourism marketers (licensed distributors) to publish on their web sites.
In this article, Liz Ward, Chief Executive Officer of the ATDW speaks with ‘Joe Tourism-Entrepreneur’ about his journey of taking his business online…
“I’ve been working on online marketing and distribution strategies and projects in the tourism industry since I first heard about the Internet in 1995. No one would argue that the ways in which consumers learn about holiday destinations, make their choices and buy their holidays hasn’t changed immensely and often in the last 15 years. This means that the opportunities for tourism operators to market and distribute their products have also changed a great deal and if a tourism operator wasn’t an early adopter of technology to sell their product, then they have a lot of catching up to do to make the journey to being fully Internet enabled.
In the course of my job as Chief Executive Officer at the ATDW, I get to speak with a lot of tourism operators and hear about their challenges in developing the skills and knowledge to e-enable their business, whilst running their business. I’ve compiled these interview notes from many of the conversations I’ve had over the years. To protect the identity of our successful tourism entrepreneurs, names have been changed.
Liz: Joe, you and your small accommodation and touring businesses are heralded as being successful and you’re looked on as quite a pioneer in getting your products in front of online consumers. Would you say that your success has followed a linear path or has your approach been unstructured?
Joe: Coincidentally, it has been quite a linear journey, not because we planned it that way, but because we took our time with the different steps in getting our businesses online. I think this was good for us as we’ve been able to learn as we go along and test different marketing tools to see if they hit our target market, get us sales or give us some efficiency gains.
Liz: We like to explain the ATDW as the “meat and potatoes” of a tourism business’s online marketing strategy and if you want to have your product promoted on www.australia.com or your State tourism website, maybe your regional tourism website and many others, then you have to get your product listed in the ATDW. What role has an ATDW listing played in your online strategy?
Joe: We got on board with the ATDW not long after it started in 2001 and our main reason for that was to have a listing on www.australia.com and that’s fundamentally important, especially now with all the online marketing activity that Tourism Australia is involved in. What’s been interesting however, is that an ATDW listing has given us other advantages in terms of improved Google search engine results and exposure on many other websites.
Liz: The Tourism e-kit that is freely available on www.atdw.com.au is a series of tutorials on online marketing just for the tourism industry. I suppose you wish that had have been available in 2001.
Joe: For sure - I wish you had produced the e-kit years ago, but I’m making use of it now. I’ve downloaded the tutorials on topics where I need to get skilled up like “Setting up a PPC campaign with Google AdWords” and I always look over the updated tutorials when you release them every six months.
If I were starting over now I’d download the whole Tourism e-kit and watch the video versions so that I could plan out a step-wise approach to having a really successful online strategy.
Liz: So if you were planning your online strategy now what do you think would be the progressive steps you’d take?
Joe: Like I said I’d download the e-kit and use the first few tutorials to help me plan my strategy.
I’d set up a listing in the ATDW through my State tourism office; and if I’ve already got one, I’d review the description and make sure it includes keywords that my target market would search and I’d make sure I’ve got great images on my listing that really show the best and different things about my product.
I’d find a good website developer and focus on my own website making sure it’s got all the information and features that my target market needs. I’d want my website to have the ability for my customers to interact and leave customer reviews.
Speaking of customer reviews I’d make sure I’ve got a listing on TripAdvisor and I’d check what people are saying about my product on TripAdvisor as well. The next step for me would be to select an online booking engine and inventory management system so that I can get used to managing my bookings electronically and sell in real-time online. I never know where my customers are going to come from, they could be anywhere in the world, and people want instant confirmation on prices and availability these days, so you’ve got to have your inventory accessible in real-time.
Online distribution through channels other than my own website would be my next focus. Once I’ve got my inventory electronic I can then be part of the national distribution program, TXA – Tourism Exchange Australia (www.atdw.com.au/tourism_exchange_australia.asp). This is really important because you don’t know which websites your customers are going to be searching on and you need to have an efficient way to make your product and inventory available on many channels.
Once I’m ready to do business online then I’d put my energy into understanding where my website visitors are coming from by using Google Analytics (see Tourism e-kit tutorials 36 and 37). From here I can start to consider some online marketing investment like Google AdWords to drive more traffic to my website.
Once I’ve got all that working well I’d start to develop a social media strategy and get onto Facebook and Twitter, just “listening” for a while and then getting active so I can join the conversation in networks that are relevant to my product and destination.
Liz: Joe what you’ve told us is the story of a progressive journey of learning and implementing a really comprehensive online strategy for a tourism business. Is there any final Joe Entrepreneur tip you’d like to leave us with?
Joe: Technology is going to keep moving at an even faster rate than what we’ve seen in the last 15 years. Before we know it people will be booking their annual holiday on their mobile phone and relying on their Facebook friends to recommend products rather than using a search engine, so you’d better get started now and be ready to keep learning.”
For more information on the ATDW, contact Vikki Rabe by email (vikki.rabe@atdw.com.au) or phone (07 3112 1762).
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GROWING REGIONAL TOURISM
Amidst the stock grazing land along the Long Paddock of north-western New South Wales, a cluster of new tourism businesses has emerged, led by Southern Cross University’s School of Tourism & Hospitality Management. It marks the beginning of a new era of tourism in the region, a change that has auspiciously been welcomed by recent drought breaking rains. New styles of accommodation from camp sites to luxury guesthouses are emerging. Unique nature-based activities for twitchers and naturalists have surfaced as have new local food producers, suppliers and cooks.
The movement towards building a distinctive suite of tourism products and services in the region, has been strategic. The Long Paddock Tourism on the Land Project is an initiative of the Long Paddock Committee and the Department of Agriculture, Fisheries and Forestry.
Through a series of business development workshops delivered by the Tourism Extension Unit, women on the land have identified opportunities to value-add and diversify their family farming activity and connect to tourism. Whilst this will assist the farmer’s viability, importantly it also develops a range of tourism products and experiences that offer visitors to the region authentic experiences in these regional communities. It helps visitors to learn and experience the regions unique way of life, hear the stories and connect with the landscape, the culture the food and the people.
The Long Paddock Tourism on the Land Project is one of a number of successful business development projects undertaken by Southern Cross University. Your region too can develop initiatives, tailored to meet your visitor needs and building on your own regions strengths. The growing Regional Tourism Program is a flexible framework that will enable you to better plan, develop and manage tourism.
Growing Regional Tourism draws upon extensive education and research capabilities through the School of Tourism and Hospitality Management and Centre for Tourism, Leisure and Work.
Visit www.growingregionaltourism.com.au to find out more about Growing Regional Tourism programs or call the Tourism Extension Unit on 07 5506 9327.
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2010 AUSTRALIAN REGIONAL TOURISM CONVENTION UPDATE
BREEDING REGIONAL LEADERSHIP AT THE 2010 AUSTRALIAN REGIONAL TOURISM CONVENTION
More than ever before, regional Australia needs leaders who will ensure that the sustainable development, management and marketing of destinations outside of metropolitan Australia remains front and centre on the nation’s agenda. On average, 46 cents in every tourism dollar is spent in the regions, providing thousands of jobs and breathing life into communities that may otherwise cease to exist. This significant contribution to the Australian economy requires nurturing and stewardship by talented, insightful and dynamic leaders supported by teams of professionals committed to excellence and innovation.
Regional Australia certainly breeds great leaders and many, many consummate tourism professionals however, much of this talent is lured away to cities both on and off shore. Furthermore, tourism competes with industries whose reputation for high salary and status is a constant lure for people to exit the industry all together.
The ARTN is committed to fostering regional leadership and stimulating debate on how we, as an industry, can better develop and retain talent in regional areas and create career tourism professionals. How do we effectively recognise, incentivise and reward emerging regional tourism talent? What opportunities is Australia missing out on because of these challenges? These queries and more will be addressed at the upcoming 2010 Australian Regional Tourism Convention by a panel of experts, each at the top of their game and each with a link to regional Australia.
“Australia’s regional destinations are among our most iconic assets and are a major drawcard for our international visitors. Our outback, coastlines, food and wine growing regions and, above all, our real Australian characters are what set us apart from the rest of the world. Managing these assets effectively and sustainably is key to the ongoing success of our industry and our nation. It is essential we ensure our rising stars are confident that having careers in tourism and in regional Australia are exciting, profitable and rewarding.” - Matt Hingerty, Managing Director, Australian Tourism Export Council (ATEC)
“More than a third of tourism’s 580,000 businesses are located outside of metropolitan Australia. As much as 93% of these are owner operated, family run businesses, who together, employ more workers than mining and more than agriculture, forestry and fishing combined. The management and staff of these organisations work incredibly hard to deliver world-class experiences for locals and visitors alike and it is crucial that we, as an industry, rally to support and incentivise them.” - Wayne Kayler-Thomson, Chief Executive, Victorian Employers’ Chamber of Commerce & Industry (VECCI)
"Australia’s future leaders are currently working their way through the ranks of education and industry, honing their skills. They’re tough, they’re savvy and they’re smart… very, very smart. And they’ll need to be in order to take this country forward in an ever increasingly competitive environment, fraught with uncertainty, where rapid change is the norm and the lines between ‘the next best thing’ and ‘so yesterday’ are blurred with the speed of light. Our challenge now is to keep this talent on Australian soil and ensure our culture continues to thrive and our story continues to be told.” - Tania Major, 2007 Young Australian of the Year
“Australia’s regions are vibrant, dynamic and inspirational places and the talent emerging from these destinations is just as exciting. Our challenge as an industry is now to champion the recognition of these people as true professionals and make succession planning a priority. Tourism entrepreneurs and destination management staff alike are a bold breed, instrumental in bringing economic and social success to many communities. In turn, this contribution needs to be recognised financially and socially. We’re not there yet and we need to be.” - Alla Wolf-Tasker AM, Executive Chef / Managing Director, Lake House Daylesford
Registrations for the Convention are now open with significant savings available to ARTN Members.
Click here for further information and to register for the Convention.
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UPCOMING REGIONAL TOURISM INDUSTRY EVENTS & ACTIVITIES
What: ‘Networks, Clusters and Collaboration: Understanding and Harnessing the Dynamics of Working Together’- Lecture by Professor Kerry Brown, Director of Southern Cross University’s Research Centre for Tourism, Leisure & Work
Most business people have heard of the benefits of creating collaborative networks with others, but what does it really mean in practice and what are the pitfalls to avoid? Professor Brown will outlining the results of her research investigating the dynamics of collaboration and new types of organisational arrangements that rely on building connections.
“Networks, collaboration and industry clusters are often untapped resources that may be passed over in favour of ‘going it alone’ by individual firms. However, by changing ideas about the nature of business competition, capital creation and the value of relationships, there is an opportunity to start something different. These business arrangements are based on moving jointly towards a common goal, and operating on a premise of ‘working together’ to achieve better results, often leading to better outcomes than working alone. The difficulty is knowing what to do to start, how these arrangements work best and how to capture the sometimes elusive benefits of networked ways of working. The research results offer some insights into understanding the dynamics of networks, clusters and collaboration.”
Professor Kerry Brown
Where: Southern Cross University’s Gold Coast Campus, Queensland
When: 5.30pm to 7.30pm, Wednesday 16 June 2010
Info: To register your attendance of for more information;
Email: donna.mcintyre@scu.edu.au
Phone: 02 6620 3503
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What: 2010 Tourism Futures Conference
Tourism Queensland is staging the eighth National Conference on Tourism Futures, themed 'Leaders Driving Innovation'. The Conference takes a forward perspective on the industry, looking out over a ten year timeframe and examining opportunities and issues for the future.
Where: Southbank, Brisbane, Queensland
When: Monday 5 to Wednesday 7 July 2010
Cost: Registration fees start at $1,430 per person
Info: www.tourismfutures.com.au
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What: 2010 Australian Regional Tourism Convention
Registrations are now open for this premier national event for regional tourism practitioners. The theme for the Convention is ‘Australia’s Regions ~ Ready, Resilient & Robust’ and will feature a stellar line up of presenters, exclusive behind the scenes Field Trips and a social program designed to help you maximise this unique opportunity to network with regional tourism practitioners from around the country.
Where: Yarra Valley & the Dandenongs, Victoria
When: Monday 16 – Friday 20 August 2010
Cost: Registration fees start at $990 per person
Info: Convention page
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What: 2010 Global Eco Asia-Pacific Tourism Conference
Themed ‘Experience is Everything!’, the Global Eco 2010 brings together leading players from across the globe to examine best practice across sustainability, ecotourism and climate change response. Critical new research, policy and best practice case studies feature at Global Eco.
The conference aims to bring together sectors that have a direct and indirect role in delivering sustainable tourism and ecotourism and thus provides delegates with an excellent opportunity to examine and debate emerging issues and opportunities, review current best practices and collectively take a forward perspective on the industry.
Where: Noosa, Queensland
When: Monday 25 – Wednesday 27 October 2010
Cost: Registration opens soon
Info: www.globaleco.com.au
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What: 2010 AITO Professional Development Conference
The 2010 AITO Professional Development Conference is set to equip all Tourism Professionals with skills and information for the Social Media needs of the next decade, as well as assist in time management and juggling the demands on marketing both traditional & new age.
Where: Kiama, New South Wales
When: Wednesday 28 to Friday 30 July 2010
Cost: From $1,050 (includes accommodation)
Info: www.aito.com.au
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ARTN News Arhives
News Archive 7 - (January 2010)
News Archive 6 - (August 2009)
News Archive 5 - (March 2009)
News Archive 4 - (August 2008)
News Archive 3 - (May 2008)
News Archive 2 - (February 2008)
News Archive 1 - (October 2007)
