Vic’s tourism ‘under threat’

Cuts add big hurdle in marketing race

Victoria is facing losing the tourism race to other states who are spending more to market themselves on a global stage, industry experts have warned.

The Allan government last week slashed funding to Victoria’s tourism sector, cutting Visit Victoria’s destinational marketing to just $15.5 million over the next three years – less than half of the $32.5 million it received last year.

On Friday the Western Australian government handed down record funding in its 2024-25 budget, including $73 million for destinational marketing and a $25 million boost in total tourism spending.

Victorian Tourism Industry Council chief Felicia Mariani has warned Victoria will lose a significant amount of its tourism share with continued investment in the sector.

“Having a well-resourced peak marketing body for our state is vital to ensure we are maximising and leveraging the extensive investment we make in our event calendar – both in our regions and in metropolitan Melbourne,” she said.

“VTIC will continue to advocate for recognition by government that slashing the budget for core destination marketing will lead to a serious loss of profile and preference for Victoria as a holiday destination on the global stage.” On Monday, Tourism, Sport and Major Events Minister Steve Dimopoulos announced the $38 million next instalment in the state’s Regional Events Fund.

Under the scheme grants of up to $500,000 will be open to organisers of festivals, sports events and exhibitions to attract and grow events of international or national significance while grants of up to $50,000 will be available for marketing and support of events that attract intrastate and interstate visitors.

“Regional events bring visitors, boost jobs, and support local businesses while fostering civic pride ... and further cement our state as Australia’s events capital,” he said. Ms Mariani said the fund was a critical component of the government’s $170 million Regional Tourism Support package that was announced in the wake of the Commonwealth Games cancellation.

“Creating and securing events is an important ingredient to the recipe for a vibrant and successful destination,” she said. “But this approach cannot be seen as a substitution for strong destination marketing, which will be hard to achieve on the $6 million allocated to this function.”

Shadow Minister for Tourism, Sport and Events, Sam Groth, said: “Rehashing old announcements won’t make up for Labor’s brutal cuts to Victoria’s tourism sector.”

Opposition leader John Pesutto warned “untold damage” was being done to Victoria’s reputation as a tourism hotspot because of funding cuts.