Inextricably linked

As outlined in Tourism Australia’s Tourism 2020 strategy, the government has committed to the target of doubling overnight visitor expenditure by the end of the decade to more than $115 billion, with $63. 4 billion to be achieved through the international market alone. In order to meet these ambitious targets, Australia’s aviation sector and its airports will need to continue to grow substantially. This growth can only be achieved in an environment where investment certainty can be provided through policy and regulatory frameworks that are conducive to, and recognise the need for, continued growth in the international tourism sector.

Given the importance of Australia’s aviation and airports sector in facilitating international tourism, it is imperative that the Commonwealth have an appropriate policy framework in place that supports the research and forecasts for Australia’s tourism industry. With this in mind the AAA has made several key recommendations in its submission that include continued support and funding for Tourism Australia, liberalisation of air service agreements (ASAs), decreased border fees and charges, and appropriate planning frameworks across all jurisdictions.

The way in which Australia is marketed as an international destination to the rest of the world is essential to ensuring that our tourism industry remains a strong and vibrant contributor to the national economy. Tourism Australia is the Commonwealth agency responsible for the international marketing of Australia as a destination for leisure tourism and business events. The relatively modest investment in global marketing activities through Tourism Australia delivers a $42 billion return in direct GDP.

Just as importantly, the demand for travel to Australia that isturn supports ongoing investment in Australia’s aviation infrastructure by airport operators.

The AAA believes that it is essential that the Commonwealth government continues to recognise the vital role that Tourism Australia plays in boosting our international visitor numbers, and as such it is critical that the agency receives adequate funding.

International air transport services to and from Australia are vital for the Australian economy, particularly for tourism, trade and merchandise exports. An unconstrained air services sector also promotes social connectedness and facilitates travel between Australia and the world for non-tourism related activities such as education, medical and business purposes.

The AAA believes that there are a number of significant economic and social benefits that stand to be realised by liberalising the current policy settings for ASAs and recommends that the Commonwealth government consider reviewing its policy framework to ensure that Australiameets its Tourism 2020 targets and continues to grow into the future. To this end, the AAA is also in the process of finalising a report with Deloitte Access Economics to examine the potential economic impacts of liberalised ASAs.

The AAA submission also addresses the issue of border fees, charges and taxes, noting the current joint review underway being led by the Australian Customs and Border Protection Service and the Department of Immigration and Border Protection, in conjunction with the Department of Agriculture. The AAA has identified the passenger movement charge (PMC) as a poorly designed, direct tax on the tourism industry and its continued increase since inception is unsustainable, resulting in significant impacts for airports.

The AAA is also concerned with the disparity in visa fees and charges when comparing, for example, applicants from either the US or Britain with applicants from key Asian markets such as China and India, where they are required to undertake a substantially more expensive, burdensome and slower process.

The AAA has recommended that the government amend its current policy settings to reduce both the PMC and visa fees and charges to assist in stimulating Australia’s tourism industry and ensure that Australia’s airports can continue to deliver strong returns for the national economy.

Finally, the AAA submission also recommends that the Productivity Commission recognise the need for appropriate planning frameworks to be in place across all jurisdictions to protect the future operation of Australia’s airports in facilitating international tourism, trade and economic prosperity. This recommendation relates to AAA’s latest Airport Practice Note, which aims to raise awareness of airport safeguarding issues within the planning profession, and assist town planners and planning authorities in understanding airports and how to safeguard their ongoing operation.

The AAA looks forward to the release of the Productivity Commission’s research paper and is hopeful that it will identify a number of opportunities to grow Australia’s international tourism industry.