Government intervention a boost to tourism industry

2/4/03
The $5million crisis funding provided to the tourism industry by the State Government after September 11 and the collapse of Ansett is helping to ease the industry's pain, according to recent research.
Tourism Minister Clive Brown said it was important to recognise times were tough in the tourism industry, and given the current climate, would continue to be so into the foreseeable future.
"It will take some time before many operators turn the corner, but it appears the crisis fund, enhanced by some proactive Western Australian Tourism Commission marketing in close co-operation with the tourism industry, is bearing fruit," Mr Brown said.
"The $5million, 10-point plan, put in place soon after the collapse of Ansett, was designed to minimise the damage to the tourism industry - both in terms of jobs and the very significant economic benefits the tourism sector delivers WA.
"According to the Bureau of Tourism Research National Visitors Survey, WA is outperforming every other State and Territory in relation to increased spending associated with travel in our own State.
"Western Australians choosing to holiday here at home injected about $1.7billion into the economy last financial year, and during our recent campaign period spending increased by 16.3 per cent. This amounts to extra spending of about $237million above earlier predictions.
"On behalf of everyone in the tourism industry I would like to thank all Western Australians who made a decision to spend their most recent holiday here in WA. Other States have not been so successful in this marketing initiative."
Mr Brown said it was likely targeted marketing had also played an integral part in keeping spending by interstate visitors to pre-crisis levels, despite initial fears more than $50million would be lost as interstate visitor numbers declined.
Of the $5million special fund, approximately $2.8million was spent last financial year in intrastate and interstate marketing initiatives. Research showed that during this investment period total domestic tourism expenditure increased in WA by 10.5 per cent, which was 16.4 per cent greater than forecast.
"Using the accepted formula of eight jobs created per $1million of tourism expenditure, our investment created, or possibly saved, 2,300 jobs," Mr Brown said.
Minister's office: 9222 9699