Insights - 12 May 2023
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HOW FEDERAL BUDGET 2023-24 IMPACTS
THE VISITOR ECONOMY
The Federal Government has delivered its 2023-24 Budget, which Federal Treasurer Jim Chalmers said would continue to strengthen the nation’s finances while laying the foundations for a stronger, fairer and more resilient economy into the future.
In a joint statement, Minister for Foreign Affairs and Trade Senator the Hon Penny Wong, Minister for Trade and Tourism Senator Don Farrell and Minister for International Development and the Pacific Pat Conroy MP said the Federal Government would continue to support the recovery of Australia's visitor economy and fourth largest export earner through the $48 million tourism and travel package.
"This funding is helping tourism businesses attract and upskill workers to address current workforce shortages and improve the quality of Australia’s tourism offerings," the statement said.
The Budget confirmed Tourism Australia's appropriation of $169.1 million for the next financial year.
Tourism Australia CEO Phillipa Harrison said: "Our base appropriation remains above pre-pandemic levels and provides the certainty we need to deliver our program of work for the year ahead. We will target our spend to drive international demand back to Australia from our key markets, and we will continue to support the industry in its ongoing recovery.
"At Tourism Australia we remain optimistic about the opportunities in the year ahead. Now that Chinese travellers are returning we are able to plan for the future with greater certainty, with Working Holiday Makers back we are seeing an easing of pressure on our skills shortage, and with the continued strong demand in the premium sector in particular, we're on track to get back to 2019 visitation and spend levels in the next few years."
Major initiatives will include:
- The global 'Come and Say G'day' brand and partnership campaign continuing in key international markets, including a launch in China
- Premier tourism and trade events including the Australian Tourism Exchange, Marketplace, Dreamtime, G'day Australia, Destination Australia and more
- Ongoing support for the Business Events Bid Fund program, with an additional boost of $4 million to support bids for events out to 2029
- The Aussie Specialist travel agent training program.
The Australian Tourism Export Council (ATEC) congratulated the Federal Government on retaining funding for Tourism Australia.
“In a highly competitive international travel marketplace, Australia needs to maintain its presence across the board, from existing traditional markets to newly emerging opportunities and a well-funded destination marketing agency is key to doing this successfully," said ATEC Managing Director Peter Shelley.
However, Mr Shelley said Federal Budget measures such as an $10 increase in the Passenger Movement Charge (PMC) plus the increase to application fees for tourism visas were disappointing in the current environment.
“While these individual charges may seem small, the collective impact on the traveller is significant and the industry calls for a freeze on these increases over coming years," Mr Shelley said.
Industry bodies including Cruise Lines International Association (CLIA), the Tourism & Transport Forum (TTF), the Australian Federation of Travel Agents (AFTA) and the Australian Airports Association (AAA) also opposed the increase to the PMC.
BUDGET SUPPORTS ARTS & NATIONAL PARKS
The Federal Budget included a record new investment in Australia’s arts sector, with almost $950 million in additional spending over four years on national institutions, training and supporting creators and delivering on the vision of its new national cultural policy, Revive.
Learn more here.
Additionally, the Federal Government will invest in programs aimed at stopping environmental destruction, repairing nature and restoring damaged ecosystems.
This will include rolling out a second round of the Urban Rivers and Catchments Program; investing in the National Heritage Trust; $45.2 million for the Sydney Harbour Federation Trust; injecting $262.3 million in national parks; and remediating the national flood warning infrastructure network in Australia’s highest-risk areas.
Learn more here.
BUDGET INITIATIVES FOR SMALL BUSINESS
The Federal Budget featured measures to assist small businesses, including a $20,000 instant asset write-off; a new Small Business Energy Incentive to support investments in power-saving assets and new help for small businesses to adopt and adapt to digital technology.
The Small Business Energy Incentive will help small and medium businesses electrify and save on their energy bills. This incentive will provide $310 million in tax relief and support up to 3.8 million businesses make investments like electrifying their heating and cooling systems, installing batteries and upgrading to high-efficiency electrical goods.
Businesses with annual turnover of less than $50 million will have access to a bonus 20 per cent tax deduction for eligible assets supporting electrification and more efficient use of energy, from 1 July 2023 until 30 June 2024. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.
The Federal Government is providing approximately 2.1 million eligible small businesses with cashflow relief by halving the increase in their quarterly tax instalments for GST and income tax in 2023–24. Instalments will only increase by six per cent instead of 12 per cent.
The Federal Government is also investing $23.4 million to help small businesses build their resilience to cyber security attacks, while a new $392.4 million Industry Growth Program will help support small to medium-sized businesses and startups develop new products and services to grow their operations.
Learn more here.
BUDGET BOOST FOR SKILLED MIGRATION
The Federal Government has allocated around 70 per cent of places in the 2023–24 permanent Migration Program to skilled migrants to address persistent skill shortages.
It will also provide an extra two years of post-study work rights to Temporary Graduate visa holders with select degrees, to improve the pipeline of skilled labour in key sectors.
The Federal Government is increasing the Temporary Skilled Migration Income Threshold to $70,000 to ensure skilled migration settings are better targeted; exempting international students working in the aged care sector from the capped fortnightly work hour limit until 31 December 2023; and providing additional training places for Pacific Australia Labour Mobility scheme workers in priority sectors for the Pacific and Timor-Leste and where there are job shortages in Australia.
Additionally, the Federal Government is negotiating with the states and territories on a new five-year National Skills Agreement to commence from 1 January 2024. It will also fund a further 300,000 TAFE and vocational education training places to become fee-free.
Learn more here.
ATE23 FAMILS PUT NSW IN THE SPOTLIGHT
NSW visitor destinations captivated international buyers during pre and post-familiarisations (famils) at Australian Tourism Exchange 2023.
Destination NSW hosted 50 key international buyers during the famil program, giving them the opportunity to experience first-hand all that NSW has to offer guests from around the world.
Diverse landscapes from Sydney Harbour icons to Hunter Valley vineyards, stunning coastal regions and towns were featured.
From the vibrant 24-hour culture of Sydney to the incredible natural beauty of regional NSW, it was an exciting opportunity to highlight the state's unmatched visitor offering.
"We know travellers want more than a checklist of things to see," said Destination NSW CEO Steve Cox.
"They want experiences that inspire, amaze and revitalise. The Feel New campaign that is at the heart of our marketing taps into this emotional expectation of travel, showcasing the lasting emotional benefits a trip to NSW will have. The Destination NSW familiarisations were an opportunity for ATE attendees to experience those benefits."
Each year, Destination NSW delivers an extensive program of famils, which are designed to give buyers and media the opportunity to experience regions, venues, products or packages.
They play a vital role in ensuring the NSW visitor economy is front of mind as a holiday and business events destination.
GREATER SYDNEY VISITOR ECONOMY GROUPS TURBOCHARGE GROWTH
Destination NSW has established four Visitor Economy Greater Sydney Local Councils Groups to ensure a whole-of-government approach to the region's visitor economy.
Destination NSW Manager Local Government Visitor Economy Policy Bianca Gilmore said: "Local government plays a core role in NSW communities and councils have strong partnerships with industry and stakeholders. It is wonderful to see the Greater Sydney local councils come together and collaborate to advance the value of the visitor economy not only in their local government area but as a region."
The four groups are:
- Western City Parklands – Blue Mountains, Camden, Campbelltown, Fairfield, Hawkesbury, Liverpool, Penrith and Wollondilly
- Central River City – Blacktown, Canterbury-Bankstown, Cumberland, Georges River, City of Parramatta and The Hills Shire
- Eastern Harbour City (North District) - Hornsby, Hunter’s Hill, Ku-ring-gai, Lane Cove, Mosman, North Sydney, Northern Beaches, City of Ryde and City of Willoughby
- Eastern Harbour City (South District) - Bayside, Burwood, Canada Bay, Inner West, City of Randwick, Strathfield, Sutherland Shire, City of Sydney, Waverley and Woollhara.
Group meetings have already been held in Western Parklands City, Central River City and Eastern Harbour City (North District), while the first meeting for Eastern Harbour City (East City) is in development.
Blue Mountains Council Program Leader Visitor Economy Simone Novello said: “The Western Parkland City group facilitated by Destination NSW offers an invaluable opportunity to learn from and collaborate with diverse local government areas in a way that helps us amplify results and build a thriving visitor economy across the Western Sydney region.”
To learn more about the groups, email Bianca GIlmore at bianca.gilmore@dnsw.com.au.
LAST CHANCE: LGBTIQA+ WEBINAR
Destination NSW will deliver a webinar series - Selling Stays & Experiences to LGBTQI+ Visitors - on 16 and 18 May 2023. Hosted in collaboration with Husbands that Travel, it will share insights into the needs of LGBTQIA+ visitors and provide tips on tailoring experience delivery and promotion to provide an inclusive, welcoming environment.
REGISTER NOW: EV WEBINAR
Destination NSW will host a Creating EV-Friendly Road Trip Experiences webinar on 24 May 2023. It will explore how to create EV-friendly road trip experiences in regional NSW by offering and promoting EV chargers. It will also include information on the NSW Destination Charging Grants Program from the Office of Environment and Climate Change.
TOURISM CONFERENCE FOR NEWCASTLE
Destination NSW has secured the 2023 Australian Regional Tourism Convention for Newcastle from 10-12 October 2023, in partnership with Newcastle City Council. Newcastle Lord Mayor Nuatali Nelmes said: "Securing the bid against other destinations is a testament to our city’s world-class facilities and amenity. Newcastle continues to shine as a destination and we look forward to welcoming the 250 plus delegates and showcasing our city’s diverse offering, including its rich heritage, spectacular coastline and vibrant nightlife."
NATIONAL VISITOR SURVEY FEBRUARY RESULTS
Domestic overnight visitors, nights away and spend in NSW all exceeded pre-pandemic levels in February 2023 according to Tourism Research Australia’s National Visitor Survey report. There were 2.6 million domestic overnight visitors to NSW, up seven per cent from February 2019. Domestic overnight visitor expenditure in NSW was $2 billion, up 34 per cent from February 2019. There were two million overnight visitors to regional NSW, which was up 12 per cent from February 2019, while visitor expenditure was $1.2 billion, up 31 per cent.
TAFE STUDENTS CRUISE INTO NEW CAREERS
TAFE NSW and Cruise Line International Association (CLIA) have joined forces to launch a traineeship program to help students fast-track their careers in the cruise sector. The program will enable trainees to complete a Certificate III in Travel or Certificate IV in Travel and Tourism with TAFE NSW and secure immediate employment with CLIA member cruise lines or travel agencies.
SYDNEY NUMBER ONE FOR WINTER ESCAPES
New Booking.com search data has revealed Sydney is Australia's top domestic destination this winter, up two places from last year and taking over from Melbourne. Byron Bay, a perennial favourite for a warm winter escape, rounded out the top 10 while Jindabyne and Thredbo also scored spots on the top 20 list, coinciding with NSW receiving its first sprinkle of snow last weekend.
COUNTING DOWN TO FIFA WOMEN'S WORLD CUP
Destination NSW CEO Steve Cox toured the Art Gallery of NSW with FIFA Secretary General Fatma Samoura as preparations continue for the upcoming FIFA Women’s World Cup Australia and New Zealand 2023™. Destination NSW has secured 11 games, including the Final, for Sydney. The first game will see Australia’s Matildas take on the Republic of Ireland on 20 July at Stadium Australia.
AFTERPAY AUSTRALIAN FASHION WEEK 2023
Afterpay Australian Fashion Week (AAFW) will take place from 15–19 May 2023 at Carriageworks in Sydney. Proudly supported by Destination NSW, it will feature 46 runway shows. Vice President-Managing Director of IMG Fashion Events and Properties, Asia-Pacific Natalie Xenita said: “The Australian fashion industry is a global powerhouse and AAFW in Sydney is its keystone.”
ICC SYDNEY WELCOMES UTS STUDENTS
International Convention Centre Sydney (ICC Sydney) recently hosted its annual Careers Insights event, where students from the University of Technology Sydney’s event management school heard about the many career paths available in the business events industry. The event was designed to offer students an opportunity to gain access to industry leaders and professionals, including ICC Sydney’s director of events services Malu Barrios, director of culinary services Lynell Peck and director of human resources Luke Fleming.
NSW TOURISM AWARDS NOMINATIONS OPEN
Nominations for the 2023 NSW Tourism Awards are now open, with visitor economy businesses across the state encouraged to apply. Winners will be revealed during an awards ceremony in Sydney on 8 November 2023. Relevant category winners will automatically receive entry to compete at the Australian Tourism Awards, which will be held in early 2024 in Darwin, Northern Territory. The NSW Tourism Awards are managed by the NSW Tourism Industry Council, powered by Business NSW and supported by Destination NSW.
ASIA PACIFIC AIR TRAVEL RISES
The International Air Transport Association has revealed strong demand growth in air travel for March 2023. Globally, traffic is now at 88 per cent of March 2019 levels. International traffic climbed 68.9 per cent versus March 2022. Asia-Pacific airlines had a 283.1 per cent increase in traffic compared to March 2022.
ASIANA INCREASES SYDNEY FLIGHTS
Asiana Airlines has announced a seasonal increase in flights starting 8 August 2023. The South Korean carrier will be increasing its Sydney-Seoul service from daily to nine flights per week. In addition to the extra flights, the airline will be operating an A380 on Mondays, Tuesdays, Thursdays and Saturdays to allow for more capacity.
HERITAGE WEEK IN PARRAMATTA
Residents and visitors have been invited to discover Parramatta North’s rich history during Heritage Day on 13 May 2023. The free event will include tours of heritage architecture, markets and live music. Minister for Heritage Penny Sharpe said: “On the Traditional Land of the Burramattagal people of the Dharug clan, the connected stories of Parramatta date back 60,000 years. This precinct features more than 30 sites that we are preparing for nomination as a UNESCO World Heritage-listed site. In addition to funding from the Federal Government, the NSW Government will support the nomination process through Heritage NSW."
DUBBO RAILWAY STATION UPGRADE
Dubbo’s historic railway station is about to receive a facelift that will deliver a safer, more accessible and more modern facility for rail passengers. The final design features upgrades to existing paths around the station precinct, a new accessible kiss and ride zone and improved amenities including ambulant toilets. There will also be modifications to the waiting room and ticket counter to make using the station more comfortable and convenient, new tactile indicators along the platform and improvements to lighting and wayfinding. Work on the station upgrade is due to start in June for completion by the end of the year.
HOUSEHOLD SPENDING GROWTH SLOWS
New Australian Bureau of Statistics (ABS) data shows household spending rose 8.2 per cent in March compared to the same time last year. ABS head of business indicators Robert Ewing said through the year growth in household spending eased across all spending categories in March. “Spending on discretionary goods and services rose 2.2 per cent, down from the recent peak in growth of 28.3 per cent in August 2022," Mr Ewing said. “Non-discretionary spending growth has also slowed, but to a lesser extent. In March, spending on non-discretionary goods and services increased 13.9 per cent, after peaking at 29.9 per cent in August."
WANDERER FESTIVAL LINE-UP ANNOUNCED
Wanderer Festival has released its full line-up, including Ocean Alley, Django Django, Thelma Plum, the Flying Fruit Fly Circus, and Adam Page. They will join previously announced artists including The Jungle Giants, Spiderbait, Kevin Morby, Lisa Mitchell. Proudly supported by Destination NSW, the Wanderer Festival will take place in Pambula Beach from 29 September to 1 October 2023. Minister for Jobs and Tourism and Minister for the Arts John Graham said: "The NSW Government is excited to bring this festival to the regional communities in Bega Valley, driving visitors for a cultural experience in a beautiful part of the country."
VISITOR ECONOMY WEEKLY HIGHLIGHTS
NSW BUDGET DATE ANNOUNCED: The NSW Government will hand down its 2023-24 Budget on 19 September 2023. Read more
NSW GOVERNMENT STRENGTHENS GRANTS REGULATION: Legislative amendments have been introduced to strengthen transparency, accountability and fairness in the administration of government grants. Learn more
SYDNEY GATEWAY FLYOVER BRIDGE COMPLETED: The last of 86 girders on the bridge have been installed on the toll-free connection to Sydney Airport. Read more
CALGA WILDLIFE WALKABOUT FUNDING: The NSW Government will provide a $50,000 grant to support Calga Wildlife Walkabout Sanctuary's work to rehabilitate rescued wildlife. Read more
DENI UTE MUSTER 2023 - AROUND THE GROUNDS ENTERTAINMENT: New attractions have been announced for the event, which will return from 29-30 September. Read more
ARTS AND RECREATION TURNOVER RISES IN MARCH: The arts and recreation services industry recorded the largest percentage increase in business turnover in March, rising 9.7 per cent, according to figures released by the Australian Bureau of Statistics. Read more
TRADING UPDATE FOR TOURISM HOLDINGS LIMITED: The motorhome rental specialist has reported its rental yields in Australia are up 100 per cent on H2 FY19. Read more
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