**Check against delivery
It's a pleasure to be here in Hobart at the 2010 ATEC Symposium.
The tourism industry continues to show resilience in what has been a tough operating environment. The volcanic eruption in Iceland hasn't helped.
Europe is responsible for around 25 per cent of visitor arrivals to Australia and 29 percent of tourism exports. Generally European visitors stay longer and spend more.
My department has activated the National Tourism Incident Response Plan which has this event in the guarded risk/watching brief category - the same level as currently activated for Swine Flu.
The assessment depends on the duration of the incident which is still unclear. Having said that, I am pleased to hear flying restrictions are being eased.
Regional impacts like this will continue to affect the Australian tourism industry.
That's why we need to focus our efforts on supply side issues and the long term sustainability of the industry as well as marketing.
We need to continue to diversify our product offer to appeal to long and short haul markets and domestic tourism across a range of sectors.
We need to consider the viability of emerging markets such as health and medical tourism. This is not a new market - over the last two years more than 5,000 Australian medical tourism visas have been issued.
Our focus on the long game will ensure we remove barriers to the development of new markets and new investment and we focus on lifting the quality of our product.
Tourism employs almost half a million Australians. We need a flexible, mobile, skilled and productive workforce. That is why we are seeking agreement across jurisdictions to have qualifications recognised. It doesn't make sense that a person with a Responsible Service of Alcohol Certification from Tasmania can't carry that qualification to Queensland or any other State or Territory.
Last year, while the world was being buffeted by the Global Financial Crisis, Australia's tourism industry fared better than most.
Despite the economic slow down, international visitor arrivals to Australia in 2009 remained consistent with 2008 at 5.6 million arrivals. Visitor nights increased six percent and visitor expenditure increased by five percent.
This is an outstanding result against a global decline in travel of 4% and at a time when the global economy contracted for the first time since World War II.
The diversification of Australia's inbound tourism industry is favouring Australia's recovery.
Australia's top 20 inbound markets are from a range of regions - Asia, Europe, North America and the Pacific.
The strength of the Chinese market cannot go unremarked. China is our largest two way trading partner and our second largest tourism market based on visitor nights.
Last year, we had more than 350,000 Chinese visitors. This is a market worth $2.8 billion and is forecast to increase at an average annual rate of 10.2 per cent to $5.5 billion in 2017.
$4 Million for Approved Destination Status Scheme (ADS)
That is why today I am announcing $4 million in funding over the next four years towards the extension of the Approved Destination Status Scheme.
Funding will support the continued operation of the ADS scheme, including modification of the ADS Scheme Code of Business Standards and Ethics and monitoring of ADS Agents to ensure compliance with the code. The ADS scheme supports the marketing of Australia as an international travel destination in China.
The funding boost by the Australian Government will see Chinese group leisure travellers continuing to enjoy a high quality tourism experience on our shores.
Since its introduction in 1999, the Scheme has been very successful in removing and keeping out rogue operators in the Chinese inbound tourism sector.
That is one of the reasons why the China market is continuing to grow for us.
There is nothing like happy customers to spread the word about how great the Australian tourism experience really is.
The ADS Scheme supports Australia's strong desire to continue and grow its positive bi-lateral relationship with China - the world's fastest growing economy and a nation which will significantly shape the 21st Century.
Despite the economic slow down we saw growth across 11 of our top 15 markets. Taiwan recorded the strongest growth in visitor nights, up 31 percent; Thailand was up 21 percent, France up 27 percent and China up 19 percent. The Japanese market remains our 6th strongest market yet it continued to decline - down 17 percent - and the New Zealand, Canadian and German markets were also down.
The increases in visitor nights and spend in Australia during 2009 were led by growth in the Visiting Friends and Relatives (VFR), education and backpacker markets. The business travel sector experienced the largest impact - down 14 percent as companies sought to cut costs during the global financial crisis.
As markets return and consumer spending increases, we can expect to see the tourism industry's prospects improve.
To take advantage of the emerging global recovery we must continue both our marketing efforts and our focus on the supply side.
That means addressing the challenges of a tightening labour market, the need for new investment in tourism product and infrastructure, a rising Australian dollar, improving domestic economic conditions and increasing air capacity which raises the appeal of outbound travel.
We cannot afford to make the mistakes of the past.
That's why the Australian Government is working hard to put the right settings in place to help the tourism industry make the most of the economic upswing.
"There's Nothing Like Australia" Campaign
I recently launched the Australian Government and Tourism Australia's new $150 million global marketing campaign- "There's Nothing Like Australia".
The feedback I have received so far has been very positive. This is a campaign the business community has confidence to invest in over the long term.
Australians are actively participating in the innovative approach to building the campaign content.
So far nearly 3,000 people have uploaded their images and stories to the campaign website sharing what they see as unique and special about our country.
Tourism Australia will then choose the best entries for its global campaign.
Through this campaign we need to capitalise on the global recovery by converting the desire to travel into sales.
National Long Term Tourism Strategy
Our investment in marketing is balanced with the work of Australian Governments to implement the National Long Term Tourism Strategy.
My tourism ministerial colleagues and I will be meeting in Canberra later this month to progress the Strategy's work plan.
Our top priorities include:
- Elevating the status of the National Tourism and Aviation Advisory Council with a more focused work program
- Improving labour and skills outcomes in the tourism work force and removing impediments to labour mobility
- Identifying and reforming regulation that impedes tourism investment
- Broadening the research base for the industry and improving access to the information needed by tourism operators
- Accelerating the uptake of on-line opportunities and smarter use of digital distribution
- Implementing a national accreditation framework that will drive product innovation and quality
- Improving access to Australia's natural and cultural attractions while at the same time improving environmental outcomes
- And improving Indigenous tourism development
Through the Strategy, the Tourism Ministers' Council is playing a leadership role in addressing investment, skills and red tape with active engagement from industry.
Broader support for tourism
Finally, the tourism industry has been a direct beneficiary of the Australian Government's economic stimulus package and the $500 million for small business initiatives.
As 93 per cent of tourism operators are small businesses, they can take advantage of:
- Reduced quarterly pay-as-you-go tax instalments
- The Small Business Advisory Services
- And the $10 million Small Business Online initiative to promote e-commerce
We cannot just be a high aspiration destination.
We must back it up by being a high quality, highly productive industry.
This is the only way to withstand the increasing competitive pressures, both internationally and at home.
Conclusion
Ladies and gentlemen, I know the industry has been through tough times recently.
The Australian Government's commitment to the industry is unwavering.
Our long term commitment to stimulating demand while addressing the supply-side issues is helping to position this industry as an even more productive, competitive and resilient industry for the future.
Thank you again for the opportunity to speak here today.