MAYOR: LIVE IN HOPE

TOURISM

GOLD Coast tourism and civic leaders say they are disappointed after the city’s biggest industry was largely snubbed by Tuesday’s federal budget.

Treasurer Josh Frydenberg announced a further $2.1 billion would be spent on “targeted” support for aviation and tourism including the already announced 800,000 half-price airfares scheme.

But there was little else for the city’s once $6 billion industry which directly supports more than 3500 Gold Coast businesses.

Mayor Tom Tate said he was “underwhelmed” by the lack of significant new tourism funding.

“It is disappointing because it should be recognised that tourism is the backbone of our city,” he said.

‘I was underwhelmed, I was anticipating more support for the industry.

“However, with the international borders being closed and not knowing exactly when they will open, I can understand why spending in this area was curtailed.

“I expected it will dramatically increase as we move forward.”

Budget documents reveal the federal government does not expect international borders to begin reopening outside of the trans-Tasman bubble until mid-late 2022.

“Inbound and outbound international travel is expected to remain low through to mid-2022, after which a gradual recovery in international tourism is assumed to occur,” the documents read.

“The continued economic recovery will rely on the effective containment of COVID-19 outbreaks both here and abroad and will be a key factor in the timing of the reopening of international borders, which could weigh on the outlook for the tourism and education sectors.”

However, with efforts largely focused on boosting the domestic market, the budget warns the lucrative tourism market will take a significant hit once international borders reopen and

Australians overseas.

“As international borders reopen and international tourism gradually returns over 2022, spending from incoming tourists is expected to be more than offset by Australians spending more on overseas travel and less on domestic consumption,” the documents read.

“However, the gradual arrival of international students and migrants over 2022 will support growth, particularly for education services exports and consumption, and assist in filling skill gaps.”

Budget documents reveal Tourism Australia funding will not return to pre-COVID levels for nearly five years

The nation’s peak marketing rush to holiday body will see its funding for promoting Australia overseas drop this financial year from $139.4 million to $135.3 million.

It will gradually increase again over forward estimates until it reaches pre-pandemic levels again in 2024-25.

Destination Gold Coast chief executive Patricia O’Callaghan said the budget offered a mixed bag for the city.

“We believe there is more which could be done to support the industry before borders open and we look forward to discussing this with our local members,” she said.

“There are a number of initiatives we do welcome and this includes the greater support for small business.”