Impact of accelerated depriciation allowances

Accelerated depreciation allowances for business could speed up the investment of $1.7 billion in tourism projects throughout Western Australia, Tourism Minister Pam Beggs said today.

Mrs Beggs said the State Government's economic development strategy had pressed strongly for the Commonwealth to act on depreciation rates for accommodation investment.

"The bottom line is that there are tourism projects worth $1.7 billion that are either in the planning stages or on hold," Mrs Beggs said.

"This means that construction of more than 3,150 rooms could get underway if the Commonwealth provided real incentives.

"It has the capacity to provide immediate jobs throughout the construction industry as well as create future employment in the tourism and hospitality sector."

Mrs Beggs was speaking at the opening of the inaugural South West Tourism Exchange in Bunbury today.

The exchange is the State's first regional tourism trade fare and brings together the South West tourism industry and members of the WA Inbound Tour Operators Association, travel agents, car hire firms and Perth-based coach lines.

Mrs Beggs said the WA Tourism Commission's latest Tourism Development Register had identified 52 projects being planned and a further 11 on hold in the South West alone.

"The combined value of these projects is more than $700 million which is substantially bigger than the investment projected for the next big iron ore deposit in the Pilbara," she said.

"In the past 12 months 12 projects worth $30 million were completed in the region and a further 12 projects worth $214 million are under construction.

"The bottom line of all this is the fact that the tourism industry is one avenue that can provide an almost immediate stimulus to the economy through investment and jobs.

"The hospitality and tourism sectors have a remarkable capacity to create jobs.  The current employment level is more than 30,500 and has grown at an average rate of 12 per cent in the past four years compared with the overall State average of 3.2 per cent.

"This is one of the reasons why the State Government is not only pressing the Commonwealth for change, but is making change itself so that the private sector is encouraged to invest in Western Australia and does not suffer undue delays."