Bows and blows over TCCI report

OUTLOOK Economic analysis gets mixed reviews

THE State Government has welcomed a report highlighting the strength of the local economy, but has rejected calls for a levy on tourism.

Leading economist Saul Eslake delivered the fourth annual TCCI Tasmania report yesterday.

It painted a picture of a state economy he described as being “on a roll”, with broadly based 3.3 per cent growth outstripping the national average, Mr Eslake said.

“There has never been another occasion … where so many sectors have recorded positive economic conditions in the course of a single financial year, and it’s very much hoped that continues,” he said.

Mr Eslake suggested some form of tourism levy might help contain a potential backlash against surging tourist numbers.

“I think that the idea of collecting some kind of financial contribution from tourists shouldn’t be completely dismissed,” he said.

“I do think that there needs to be some consideration given to having a facility for those who visit the state and use the state’s infrastructure to make some sort of contribution to the facilities from which they derive benefit.”

Premier Will Hodgman welcomed the findings of the report.

“The report follows numerous other recently released economic reports and indicators which highlight that Tasmania’s economy is performing better than at any time in the past decade,” he said.

“The Government shares the view that it is important to set Tasmania on a path for long-term, sustained growth to avoid boom and bust cycles.”

Mr Hodgman pointed to his government’s $13.9 billion 10year Infrastructure Pipeline to support medium to long-term private investment and employment.

“The Government remains committed to harnessing our state’s competitive advantages, particularly tourism, to continue to drive growth in our economy and employment,” he said.

Labor’s Treasury spokesman Scott Bacon said the report had highlighted the continuing chronic underfunding of the state’s health system to the tune of $150 million a year.

“The report reflects a strengthening Tasmanian economy which can largely be attributed to improvements in the global and national economy,” he said.

“Every year, Will Hodgman and Peter Gutwein are making the conscious choice to spend less on hospitals and the health system,” Mr Bacon said.

“Mr Eslake asked the Government to be more ambitious. Coming up to five years in office, the Government has not a single economic reform to its name.”

One of the changes canvassed in the report was the possibility of a tourism levy.

Tourism Industry Council of Tasmania chief Luke Martin said the idea did not have merit.

“What’s the problem we’re trying to fix here?” he said. “There’s no destination in Australia that has a visitor levy — and there is a reason for that.”

Mr Martin said growth in tourism was modest and should be fostered, rather than discouraged.

“We’ve got 3 per cent visitor growth, it’s not off the rails.

Mr Hodgman said the Government had no plans for a new tax on tourists.