News

Budgets for Tourism Australia, Screen Australia and overseas marketing under threat

Tourism Australia logoGovernment support for marketing budgets for small businesses looking to promote themselves overseas, Tourism Australia and funding for Screen Australia are all in the firing line after today’s Commission of Audit report.

The report, commissioned by the Federal Government last year, has made a series of recommendations for areas the government can make savings, as part of what is expected to be a belt-tightening budget next week.Screen Australia

Recommendations in section 8.1 of the report, which may be ignored by the government, include cutting the budget for Screen Australia by half and focussing it on Australian content and shows “with an historical perspective that might not otherwise be funded”.

Matthew Deaner, executive producer of Screen Producers Australia, told Mumbrella the proposals were “drastic measures which would upset what is a critical balance of support in the industry”.

He added: “These proposals are clinical and driven by a single motive but the effect would undermine public and industry expectations as well as damage business confidence. They are clearly in conflict with current policy discussions and we expect the Government to take a more level headed approach in the upcoming budget.”

The report also suggests scrapping a government grant supporting marketing for small export businesses in overseas markets, saying often the benefits of the scheme cannot be recorded outside of that business.

It said: “Popular as the scheme is, there is unlikely to be a significant spillover effect from the Export Market Development Grants scheme, as little economy-wide learning is promoted. Changes in the international environment mean that businesses have more experience and more opportunities for international marketing and therefore less need for government assistance. Austrade’s 2011-12 Annual Report stated that 38.7 per cent of Export Market Development Grant recipients during the previous financial year employed four people or less.”

Cash for Tourism Australia is also recommended to be cut in half, threatening the $185m the body receives annually from the government. It instead recommends only international advertising from the body, and more cash from state governments for localised promotions.

The report states: “Nearly two thirds of Tourism Australia’s budget is directed to advertising and other promotional activities. While tourism is one of Australia’s main exports, most of the benefits of tourism accrue to the tourism operators. There is no clear reason why significant funding should be provided to tourism above other Australian export industries.”

A spokesman for the Tourism Accomodation Association said in a statement it would be “very short-sighted if the Commission of Audit recommendations were to be adopted” by the government, saying the sector is one of Australia’s growth industries.

Claiming the majority of accomodation businesses are too small to support large-scale marketing efforts they added: “The accommodation sector is driven by marketing, and that’s the chief function of Tourism Australia.Destination marketing has become highly competitive and sophisticated in recent years and Australia is already significantly outspent in our principal source markets. There are major tourism infrastructure projects being planned around the country, and to justify these projects we need to build our market share, which can only be achieved by a well-resourced and professional national tourism body. This responsibility can’t be devolved to States, people generally come to Australia, not one State.

“It is not simply about advertising, it is about working in our key source markets to ensure that Australia wins its fair share of business, and Tourism Australia has been doing that very effectively in recent years.”

Alex Hayes

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.