Bills Digest No. 138 2003-04
Tourism Australia Bill 2004
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
Tourism Australia Bill
2004
Date Introduced:
1 April 2004
House: House of Representatives
Portfolio: Small Business and
Tourism
Commencement:
The main provisions
commence on Proclamation, or, if this does not occur within six
months of Royal Assent, on the first day after the end of that
period.
The Bill establishes Tourism Australia, a
statutory body which will be responsible for international and
domestic tourism marketing and tourism research. It provides a new legislative base to facilitate the
merging of four existing organisations to form Tourism
Australia, these being the Australian Tourist Commission
(ATC), See Australia, the Bureau of Tourism Research (BTR) and the
Tourism Forecasting Council.
During the 2001 election campaign, the Howard
Government made a commitment to build a policy framework to assist
the tourism industry grow and prosper in response to a severe
downturn in the Australian tourism industry following the 2000
Sydney Olympic Games. These difficulties arose from a combination
of negative factors including the Ansett Airlines collapse,
international travel aversion following the 2001 terrorist strikes
in the USA, the Asian SARS epidemic and the international economic
slowdown. Overseas reports suggest that adverse international
publicity over Australia s policies on asylum seekers and
Aborigines may have also contributed.(1)
This
commitment was implemented through a major industry consultation
and structural review process which culminated in the Government s
release of a medium to long term strategy Tourism White Paper on 20
November 2003. At the same time, the Government announced an
additional tourism funding commitment to implement the plan of
$235 million over four and a half years, bringing total
Commonwealth spending on tourism to more than $600 million over
those years. The White Paper plan drew on expertise from across all
levels of government, from industry and from community interests.
It has been generally endorsed by government and industry
participants as a suitable blueprint for the industry s future.
This Bill provides the general legislative
framework to implement the White Paper s key structural
recommendations affecting Commonwealth tourism policy.
The Commonwealth provides support for the
tourism industry through a variety of measures including financial
support for regional tourism initiatives, contributions to
cooperative research centre studies of tourism, assistance to
operators under the Export Market Development Grants Scheme and
involvement with OECD and APEC tourism activities.
However its primary marketing and research
support for the industry is provided through the four organisations
which are to combine under the provisions of the Bill. The origins
and roles of these organisations are as follows:-
Established by the Australian Government in
1967, its role as Australia s international marketing authority is
to promote Australia overseas to attract visitors for business and
leisure travel. It also undertakes market research into consumer
travel behaviour and provides input to government and industry
policies affecting tourism. It is a statutory authority under the
Australian Tourist Commission Act 1987. The ATC is the
dominant organisation of the four.
The broader role envisaged for Tourism
Australia compared with the ATC is readily evident from a
comparison of the respective objectives of the two organisations as
set out in the Bill and the ATC Act and reproduced below:
|
The Australian Tourism
Commission
|
Tourism
Australia
|
|
The
principal objects of the Commission are:
(a) to
increase the number of visitors to Australia
from
overseas
(b) to
maximise the benefits to Australia
from
overseas visitors and
(c) in
meeting those objects, to work with other relevant agencies to
promote the principles of ecologically sustainable development set
out in subsection 21(3) of the Natural Heritage Trust of Australia
Act 1997 and to seek to raise awareness of the social and cultural
impacts of international tourism in Australia.
|
Tourism
Australia
s objects
are:
(a) to
influence people to travel to Australia,
including for events
(b) to
influence people travelling to Australia
to also
travel throughout Australia
(c) to
influence Australians to travel throughout Australia,
including for events
(d) to
help foster a sustainable tourism industry in Australia
and
(e) to
help increase the economic benefits to Australia
from
tourism.
|
See Australia
The See Australia
initiative was facilitated by the Commonwealth through the
Department of Industry, Tourism and Resources in 2002-03 in
response to the severe downturn in inbound tourist arrivals at that
time and the relatively slow rates of growth of domestic tourism
evident through the 1990s.
In 2002-03 See
Australia initiated a domestic marketing campaign, involving a $2
million contribution in Australian Government funding towards an
estimated $7 million campaign run in partnership with the states,
territories and industry. In essence its role is to develop
and implement strategies to raise the desire among Australians to
travel more in Australia, and to make it easier for them to find
tourism information and book and pay for Australian holidays. It is
an important alliance between government and the commercial
sector.
The BTR provides independent, timely and
relevant statistics and analysis to the tourism industry,
government and the community to enhance the contribution of tourism
to the Australian community. Its core activities centre on the
conduct of two major travel surveys and its analytical and
forecasting work in support of the Tourism Forecasting Council.
The Bureau is a non-statutory,
intergovernmental agency, funded jointly by the Commonwealth, State
and Territory governments and is located, for administrative
purposes, within the Commonwealth Department of Industry, Tourism
and Resources. On matters of policy it reports directly to the
Commonwealth Minister for Small Business and Tourism, and to the
Tourism Ministers Council, through the Australian Standing
Committee on Tourism.
The Council was established in 1993 to improve
the information on which tourism policy and investment decisions
are made by developing forecasts which are relevant to the diverse
interests in the tourism industry. The Council brings together the
expertise of tourism operators, the construction industry,
financiers and governments. Its secretariat is serviced by the
Department of Industry, Tourism and Resources.
The initiatives contained in the Bill respond to some of the long
standing concerns of the tourism industry. Key issues have been
that:
-
The marketing of regional tourism has often been ineffective
-
There has been insufficient effort made to attract international
and domestic travellers to regional and rural Australia
-
Niche tourism markets including indigenous tourism, high yield
market niches and events tourism need to be better marketed and
expanded
-
There is a need to reduce duplication among government tourism
bodies at federal and state level and for tourism campaigns to be
more cohesive and coherent
-
The Australian Government s tourism marketing agencies need to
work more closely with the industry they serve and lead, and
-
Tourism research and analysis functions should be more closely
integrated with the marketing effort.
Specific initiatives in the Bill which respond to these concerns
include:
-
The amalgamation of the international and domestic tourism
marketing entities, the ATC and See Australia within a new
Commonwealth statutory body to be known as Tourism Australia and
subject to the Commonwealth Authorities and Companies Act
1997 (CAC Act)
-
The integration of the Commonwealth s existing activities in
tourism research and tourism trends analysis within the functional
role of Tourism Australia
-
Recognition that Tourism Australia should be independent and
able to operate flexibly in a commercial environment, with a
commercial focus and with an ability to engage more actively with
industry
-
Provision for Tourism
Australia to develop and strengthen relationships with the
tourism industry, including through advisory panels, cooperative
marketing activities in key international and domestic markets, and
research and analysis
-
A recognition that industry experience and expertise can
contribute to the success of Tourism Australia. The qualifications
for appointment to the Board of Directors of Tourism Australia
include requirements for persons with relevant high level industry
expertise in such areas as marketing, events tourism and
infrastructure and regional development and environmental
management, and
-
Formal requirements for Tourism Australia to communicate
effectively with the industry on issues that may affect it and to
have regard to the needs of the tourism industry and
government.
There has been little media comment directly
concerned with the structural changes being proposed in the Bill.
Rather much of the reporting has focussed on internal government
deliberations over the relative priorities of Tourism Australia
between domestic and international marketing and the size and
direction of Federal funding for tourism marketing in the context
of the White Paper s recommendations.
For example, media comments have referred
to:
-
the perceived win for the National Party with the cabinet
endorsing plans to promote regional tourism, with funding to be
used to lure city-dwellers out of their metropolitan environments
to rural and regional Australia
-
Minister Hockey
s reported preference (supported by some industry interests) for
tourism promotion spending to have a stronger focus on domestic
tourism - yet in the event, cabinet decided that most of the extra
funding will go to international marketing
-
some industry disappointment over the amount being spent - the
industry is reported to have wanted more than $350 million
additional Federal funding and thought it had the support of
Tourism Minister Joe Hockey in this bid. Media reports suggest
however that Treasurer Peter Costello and Finance Minister Nick
Minchin fended off the industry's claim, convincing Mr Howard to
approve the more modest sum of $235 million.
The establishment of Tourism Australia will
require no additional funding under the Bill. Funding for Tourism
Australia will comprise the existing funding previously allocated
for the four bodies merging to form Tourism Australia, and the bulk
of the $235 million in additional funding allocated as part of the
Tourism White Paper package announced in November 2003.
It is significant that the ATC, See Australia
and the BTR are financed in part by contributions from other
governments and/or industry contributions. For example, for
2004-05, the estimated revenue contribution to the ATC by industry
is $22.909 million compared with the Commonwealth s appropriation
to the ATC of $121.031 million.(2) Tourism Australia
will have a similar capacity to access external funding through the
exercise of its functions as specified in the Bill.
In addition, consistent with the Government s
intention to give Tourism Australia a commercial focus, the Bill
gives Tourism Australia the
capacity to obtain sponsorship to promote Australia as a
destination to overseas visitors as well as Australian residents,
significantly enhancing its funding base. This will also be
able to develop and sell tourism related products and services,
such as research and statistics.
The
Bill also gives Tourism Australia the
capacity to provide financial assistance to projects or
organisations that are engaged in activities which further
Tourism Australia
s objects.
Tourism Australia s key priorities
These have been recently outlined by the
Government as follows:
-
to grow international tourism by vigorously marketing a
revitalised Brand Australia to key global markets
-
help attract major events to Australia
-
assist the development of strategic marketing plans in high
yield market niches and segments
-
assist the growth of business tourism
-
conduct expanded research and analysis; and analyse and
disseminate trends, and
-
develop strategies to promote growth in domestic tourism, with a
major focus on regional tourism.(3)
Labor has been critical
of the Government s financial response to the White Paper arguing
that the additional $235 million over 5 years funding commitment
was merely a catch-up after seven years of Commonwealth funding
neglect of tourism promotion.
The Democrats have welcomed the marketing and
promotion initiatives contained in the Government s response,
including new initiatives directed a boosting indigenous tourism,
but have been critical of the absence of any measures by the
Commonwealth to relieve the tax burdens facing tourists or achieve
greater equity in the application of the GST to tourism exports as
compared with other exports.
Clause
5 establishes
Tourism Australia
as a statutory corporation governed by
the CAC Act.
Clause
6 dealing with the
objects of Tourism Australia emphasises
its overarching role in converting the desire to travel
to, and throughout Australia including
the regions, into action. In influencing the international and
domestic travel market, Tourism Australia will
strategically market Australia as a
quality destination with particular recognition of the importance
of high yield and niche tourism markets including events
tourism. Consistent with the White Paper s recommendations,
it will integrate international and domestic promotion of
Australia through strategic partnerships with State and
Territory tourism organisations and industry, ensuring that a
consistent message is communicated to Australia s key
markets.
Clause
7 dealing with the
functions of Tourism Australia make explicit its responsibility for
working with other relevant Australian Government agencies to
ensure a unified and coherent approach to marketing Australia
overseas as well as work cooperatively with foreign governments,
through, for example, the development of joint marketing projects
and other initiatives. This could involve, for example, leveraging
of events held in the region to draw tourists to
Australia.
Tourism Australia s primary
role will be tourism marketing and promotion. However it will also
be required to contribute to policy advice on tourism. The
Bill recognises Australian Government is responsible for
developing and implementing policy initiatives that impact on
tourism. This includes, but is not limited to, policy
relating to visas and passenger processing, transport and security,
taxation and industry assistance, education and training, industry
standards and regulations and the environment.
Tourism Australia must
ensure that it undertakes its functions with consideration, and
under the policy parameters, set by the Australian Government on
these and other issues. To achieve this, Tourism Australia is to work
closely with the Australian Government agency that has carriage of
tourism policy development.
Clause 8 addresses the
authority s powers and specifies that Tourism Australia will not
undertake the activities of a travel agent such as directly selling
or arranging tours for financial gain, including transport and
accommodation for tourists or organisations acting on tourists
behalf. However it is the Government s aim to give Tourism
Australia considerable commercial discretion, for example, the Bill
gives it the capacity to obtain sponsorships and sell tourism
related products and services, such as research and statistics.
Clauses 9 21 address basic
aspects of the Board of Directors of Tourism Australia including
its functions, membership, powers, range of qualifications and
expertise required of potential Board members, the Minister s role,
term and basis of appointment, members remuneration and allowances
and other terms and conditions. Key provisions include:
Clause
28 addresses the
establishment and role of advisory panels which the Board may
establish to facilitate consultation with industry and to assist it
in performing any of its functions. These may include, but
are not limited to, advisory panels on international tourism,
domestic tourism, events and research. Advisory panels must
be established in writing. The Board may revoke or vary the
instruments establishing panels in accordance with the Acts
Interpretation Act 1901 to ensure that its ultimate
responsibility for the functioning of Tourism Australia is not
diluted in any way.
Panel members may be
from the tourism industry, the broader industry, academia, State
and Territory Governments, including Tourism Organisations, and
Australian Government agencies. Appointment of persons to
advisory panels must be made by the Board in writing. The
office of advisory panel member is not a public office under the
Remuneration Tribunal Act and as such, members will not be paid
remuneration but will participate in Advisory Panels on a voluntary
basis.
Each advisory panel
may determine the way in which it is to carry out its tasks (which
are determined by the Board). This includes the times,
frequency and places of meetings. If a panel is expected to
be set up for a period of at least 12 months, then it would be
expected to meet at least 3 times per year.
The integration of the research and
forecasting agencies into Tourism Australia is likely to be
beneficial to the industry in making these activities more
responsive to and interactive with Australia s tourism marketing
strategies and industry needs. To the extent that there may be
scope for reducing cost overheads and eliminating duplication of
functions, the creation of Tourism Australia should be a successful
structural reform.
However, the broadening of the national role
in tourism marketing through Tourism Australia to include
specialist niche activities such as the marketing of indigenous
tourism, wine tourism and major events tourism runs the risk that
the national body could potentially intrude into areas
traditionally the preserve of state and local government tourism
bodies. Tourism Australia would need to carefully develop its
contribution to such niche marketing to ensure it adds value and
effectiveness to the process rather than being in conflict with or
duplicating existing activities at the local level.
The incorporation of a strong domestic
marketing focus within the objectives of Tourism Australia could
send a message to the states and territories that they can afford
to ease off their own domestic marketing efforts as the
Commonwealth is assuming a more active role. The Bill makes no
explicit reference to the intended roles of other jurisdictions in
domestic tourism marketing nor does it identify any incentives to
keep the states and territories motivated in their domestic
marketing efforts. It is also not evident what practical measures
and incentives will apply to ensure that other jurisdictions
marketing efforts work in harmony with those of Tourism
Australia.
-
Saved by the backpackers , The Economist, 14 September
2002, Backpackers eye NZ as Australia loses its appeal ,
Australian Financial Review, 15 November 2003, p. 3.
-
Australian Government, Portfolio Budget Statements
2004-05, Industry, Tourism and Resources Portfolio.
-
op. cit.
John Kain
21 May 2004
Bills Digest Service
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ISSN 1328-8091
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