Launch of TQUAL Grants 

15 April 2009

**Check against delivery

Ladies and gentlemen - Let me first say thank you for the opportunity to be here today and I appreciate such a large attendance following the Easter holidays.

I trust you all supported the Government's "No Leave No Life" campaign - and took a well-earned break and had a holiday at home.

And I hope you are encouraging your employees to do the same in the future.

As you will all be aware - these are challenging times for our sector.

For the first time since World War II, tourism globally is set to decline in 2009.

Domestic tourism is forecast to remain flat this year and international visitor numbers to Australia are likely to drop by more than 4 per cent.

But having said that today represents a turning point in the development of the Australian tourism industry.

It gives me great pleasure to be with you today to launch the Government's new tourism program -TqualGrants.

Tqual Grants supersede - and will build on - the Australian Tourism Development Program.

Through this program - up to $8.5 million will now be available to support initiatives which:

  • develop innovative products, services or systems within the tourism industry;
  • contribute directly to long-term economic development in the host region; and
  • develop or support high quality visitor services and experiences.

This is a program which will encourage quality and innovation.

It will support projects of national benefit and fund projects in metropolitan and regional areas.

Tqual Grants will also:

  • Fund projects of national significance;
  • Extend eligibility to metropolitan operators; and, importantly
  • Allow State and Territory Tourism Organisations to have a role in the assessment process, thereby ensuring that funded projects align with broader strategic priorities.

As we know, the tourism industry is becoming more competitive every day - innovation in tourism is essential to compete effectively.

Now tourism has a program which encourages innovation.

Tqual Grants will better position the Australian tourism industry in a highly competitive market - to help tourism operators and tourism regions offer a better product and give domestic and international travellers more reasons to travel in Australia.

If Australia's tourism industry is to continue to succeed - it must offer travellers more than they expected.

Australia's tourism industry will grow through innovation.

The tourism industry won't be facing these challenges alone.

The Australian Government will work closely with State and Territory Government tourism organisations to help align the Australian tourism industry towards common goals and support its prosperity into the future.

Tqual Grants are geared to long-term growth ...they are not short-term props for the industry … which is why the structure of Tqual Grants is so different from the ATDP grants they replace.

The size of grants will reflect the strategic benefit of the application and its potential benefits:

  • Innovative tourism projects will be eligible for grants ranging from $5,000 to $100,000.
  • Integrated tourism development projects will be eligible for grants ranging from $100,000 to $500,000.
  • Finally, national or sectoral tourism initiatives will be eligible for grants ranging from $25,000 to $500,000

The escalating grants aim to encourage tourism operators to work together with a common purpose for widespread benefits.

We encourage cooperation.

The reason is simple: there's strength in numbers.

By working together to promote a region you don't just get a bigger piece of the pie - you get a bigger pie!

But you know this already - Australian Capital Tourism's 'Culture Shock' proves it.

Culture Shock is a great example of strategic tourism planning.

It coincided with the opening of the National Portrait Gallery, the Degas exhibition at the National Gallery, the Darwin exhibit at the National Museum of Australia and Over the front: the Great War in the air, a new permanent exhibition at the Australian War Memorial.

Culture Shock promoted an experience no other location in Australia - or indeed, the world - could offer: world-class attractions, in one location, at one time.

And the economic benefits of the Culture Shock promotion extend beyond the four attractions mentioned.

Restaurants, cafes, hotels, service stations, shopping centres and other retailers all benefit from increased tourism visitation.

And by bringing four major attractions together, I doubt a visitor would have made the journey to Canberra for just one day because these attractions gave them reason to stay longer.

Tqual Grants will provide support to companies and regions who take the initiative to succeed.

Quality is essential to our success.

It's why I am implementing a National Tourism Accreditation Framework and developing the National Long Term Tourism Strategy.

These initiatives are geared to developing the long-term capacity of the Australian tourism industry.

Tourism is an important component of the Australian economy - representing 3.7 per cent of GDP - but it is essential to almost 500,000 Australians whose livelihoods rely on tourism.

With that in mind, it is fitting that we are at the Canberra Institute of Technology.

Each year, a new generation of tourism professionals graduate from this campus.

The fact that so many tourism courses exist shows the demand for professionalism in the industry.

Can I close by saying that the Australian Government is pleased to be investing in a more professional, more innovative, more competitive tourism industry.

I urge you to apply for the $8.5 million in funds we announce today and I wish you every success as you work to develop a more innovative and competitive Australian industry.