Tourism not the only path

IT is fortunate that — as our recent Future Tasmania survey of 2300 people revealed — the majority of Tasmanians are comfortable with the number of tourists coming to our state. That’s because the excellent Tasmania Report compiled by the Chamber of Commerce and Industry reveals just how dependent our economy has become on tourists.

Not only do we now host more international visitors each year per capita than Queensland, but the industry directly and indirectly accounts for 17.2 per cent of employment in Tasmania. That is more than twice the national average of 8 per cent, and massively above the next-highest state — yep, Queensland, at just under 10 per cent (in the Northern Territory it is just over 12 per cent). And in terms of tourism as a proportion of Tasmania’s total output, again we stand alone — at 10.3 per cent, compared to the national average of just over 6 per cent. These are massive numbers, off the scale when compared to anywhere the mainland.

Digging a bit deeper and we find just how reliant some of our regional economies are on tourists. On the East Coast, the industry accounts for 41.7 per cent of employment (four in 10 jobs!) and 19.5 per cent of gross value added, which is the measure of the total value of goods and services produced in an area.

The good news is the outlook continues to be strong. As Brand Tasmania boss Todd Babiak rightly points out, what we have a as state stands out as distinctive in a world that is increasingly beige. People are searching for difference, and they are willing to pay for it — meaning we can maintain the small-volume, high-yield approach that best suits our island.

But we should never fall into the trap of thinking tourism is the guaranteed path to future prosperity. While the outlook might be positive, the rug could easily be pulled out from under us due to factors out of our control — perhaps something as simple as the Australian dollar surging on international markets.

And so as we say so often in this column, it is vital that all of us — led by the government — become far more active in mapping out what we can be doing to ensure these better times continue, and that we don’t just slip back into the boom-bust cycle that has been such a part of Tasmania’s economic history.

On this, the Tasmania Report is clear. How do we make the good times last? Firstly it reminds us the top priority must be to continue to attract younger, skilled people — and to retain the ones we have. Second, we must invest in infrastructure with clear long-term benefits — not just transport, but water, utilities, ports and tourism assets. Third, we need to do better in terms of encouraging preventive health care. Fourth, our politicians simply need to bite the bullet and amalgamate more than a few of our 29 councils into larger, stronger and more efficient entities. On education and training we need to continue to lift the Year 12 retention rate and ensure both our vocational and tertiary education systems are churning out graduates aligned to the skills we actually need. And finally, the report reminds us to always embrace our visitors — to never forget we are now “reliant upon the rest of the world for our future prosperity”. It’s a pretty solid blueprint for anyone in power who might be looking for some direction.

WE SHOULD NEVER FALL INTO THE TRAP OF THINKING TOURISM IS THE GUARANTEED PATH TO FUTURE PROSPERITY.