The tourism industry has expressed disappointment at the State budget handed down by the New South Wales Government.
The budget has been dubbed a “major blow” to the tourism industry while also displaying a lack of ambition to achieve the NSW Government’s own visitor economy targets.
Margy Osmond, Tourism & Transport Forum (TTF) Australia CEO, said cuts to funding for Destination NSW and no funding certainty beyond next year sends the wrong signal to one of the state’s critical economic engines.
“This budget is incredibly short-sighted. New South Wales should be out there selling itself hard and instead we’re seeing funding to promote the state wound back and no clarity on what happens after next year. That’s not how you stay competitive,” Ms Osmond said.
“It makes it almost impossible for the industry to plan, invest or compete when you don’t know what support looks like beyond a 12 month window.
“Sydney is Australia’s global gateway and when tourism and events are strong here, the whole country benefits. But right now, we’re at real risk of slipping backwards.”
Tourism remains a key driver of the state’s economy, with NSW welcoming more than 127 million visitors over the past year and visitor spending reaching a record $60.4 billion.
The NSW Visitor Economy Strategy 2035 sets a clear goal of growing annual visitor expenditure to $91 billion by 2035, creating 150,000 additional jobs and cementing NSW’s position as the premier visitor economy in the Asia Pacific.
However, Natalie Godward, NSW Tourism Association CEO, said achieving those targets requires continued and increasing investment in tourism, events, destination development and industry support.
“Tourism is one of NSW’s most powerful economic growth sectors, supporting more than 107,000 businesses and almost 300,000 jobs across the state,” she added.
“It is an industry that creates economic activity in metropolitan and regional communities alike, supporting accommodation providers, restaurants, attractions, transport operators, retailers, events, tourism experiences and thousands of small businesses.
“The Budget papers show a substantial reduction in grants and contribution funding. If funding is being redirected away from industry programs, regional initiatives, events and destination development into internal operations or centrally managed functions, that is a concern for our industry.”
The NSW Tourism Association is calling on the NSW Government to provide clarity on future tourism funding programs and to ensure investment remains focused on growing visitation, supporting regional destinations, attracting major events and helping the industry achieve the state’s 2035 visitor economy targets.
“To meet the $91 billion visitor expenditure target, the tourism industry needs the NSW Government to step up, not step back, from investing in the visitor economy.”
