State Budget 2016-17 - What it means for Tourism Businesses

07 July 2016

Good news for tourism, with the State Budget extending the new tourism, marketing and major events fund for a further two years in the forward estimates.

Highlights on areas affecting tourism businesses:

SOUTH AUSTRALIAN TOURISM COMMISSION

New Budget Expenditure

Tourism, Marketing and Major Events Fund ($35 million over two years), extending the 2015-16 Budget measure to 2018-19 to continue to secure new events and market the State’s current events and tourism offerings.

  • $15 million over two years to secure additional major events and conventions to further drive visitation and economic development of the state
  • $14 million over two years to continue to grow tourism opportunities from the emerging international markets of China, India and South East Asia whilst maintaining the traditional markets of the United Kingdom, Europe, United States of America and New Zealand
  • $6 million over two years for destination development and domestic marketing campaigns to promote Adelaide and regional tourism experiences to the Australian market.

Targets for 2016/17

Destination Development

Continue to work with and support international and domestic airlines to encourage them to increase direct flights to Adelaide and ensure that current capacity is maintained.

  • Focus on advocating a compelling case for China Southern Airlines to initiate a new direct route to Adelaide.
  • Host 52 cruise ship visits to South Australian ports with a total capacity of up to 111 454 passengers. This will consist of 28 visits to the Port Adelaide Passenger Terminal with four overnight stays, 19 visits to Kangaroo Island’s Penneshaw and five visits to Port Lincoln.
  • Focus on working with existing tourism operators whose products have international appeal, to build their capability and ensure South Australia has a broad range of appealing and saleable product. The target is for 10 new international products to be sold and distributed around the world.
  • Implement actions identified in the China capability strategy to increase the ability of stakeholders associated with the visitor economy to meet the expectations of Chinese visitors and to enhance engagement with Chinese trade partners.
  • Continue implementation of the destination action plans with the state’s 11 regional tourism organisations.

Strategy & Policy

  • Work with DEWNR to implement the nature based tourism strategy and action plan.
  • Identify projects and secure agreement with the Commonwealth Government for the allocation of 2016–17 Commonwealth funding under the Tourism Demand Driver Infrastructure program.
  • Contribute to the success of the tourism industry by identifying where planning, policy and project objectives of government agencies and industry can be utilised, influenced or improved for the benefit of South Australian tourism.
  • Collaborate with the South Australian Tourism Industry Council to implement a revised South Australian tourism awards process and ceremony, to support South Australian award winners’ recognition at the national tourism awards.
  • Engage in cooperative international research with Tourism Australia as part of a consumer demand project in 11 countries to identify the core drivers of tourism appeal for South Australia.
  • Attract 78 000 conference delegates to the Adelaide Convention Centre, generating 312 000 bed nights.

Tourism Events

  • Strategically utilise the Events Bid Fund to secure events aligned with South Australia’s strengths, such as arts and culture, live music, food and wine, sporting and mass participation events to stimulate national and international visitation and exposure.
  • To continue to support, grow and market existing events and festivals that deliver strong economic outcomes, create vibrancy, utilise existing or upgraded infrastructure, profile South Australia and provide visitors with more reasons to visit South Australia.
  • To continue to grow the Santos Tour Down Under and the Credit Union Christmas Pageant to deliver strong economic, promotional and community benefits for all South Australians. To cement Tasting Australia and the Adelaide Fashion Festival as sustainable annual events.
  • Maximise the economic, tourism and community benefits of hosting major national international events in South Australia such as the Women’s Australian Open Golf.
  • Provide leadership to the South Australian events and festivals industry, including conducting workshops in Adelaide and regional South Australia with the aim of upskilling the industry and providing networking and collaboration opportunities.
  • Continue to innovate and secure new on and off track motor sport categories and event attractions.
  • Develop the format and content of the Clipsal 500 Adelaide event to enhance the experience of patrons and attract the next generation of motor sport fans and families.

Domestic Marketing

  • Promote Adelaide and South Australia’s key regional experiences in key markets nationally through a new global campaign to be featured on television and online.
  • Continue to encourage intrastate travel by promoting all South Australian tourism regions, with a focus on showcasing unique experiences, events and the state’s six touring routes, in a new campaign to be featured on television and online.
  • Secure additional national coverage across key media outlets, including leveraging sponsorship of local television programs as well as positioning South Australia as a must-see tourism destination through familiarisations and publicity initiatives.
  • Partner with leading travel industry associates to conduct cooperative marketing campaigns in key interstate markets to drive further visitation to South Australia.
  • Continue to implement the Regional Consumer Cooperative Marketing Fund, which provides funding to the eleven regional tourism bodies for consumer-based marketing activities. Funding is matched by the region, essentially doubling the marketing spend that would normally be undertaken.
  • Enhance SATC’s consumer website <southaustralia.com> through the addition of new assets, including campaign landing pages, TripAdvisor reviews, consolidation of international language pages and personalisation of content based on specific user behaviours.

International and Trade Marketing

  • Undertake a range of cooperative marketing activities with travel trade partners and airlines in key international markets to reach wider audiences and grow consumer demand for South Australia.
  • Undertake a global campaign using a new, purpose shot state advertising asset showcasing the very best of South Australia. The asset will be the platform for all marketing activities undertaken in key international markets through mass reaching media and will showcase South Australia’s experiences and destinations that have high appeal with targeted international audiences.
  • Undertake marketing activities in the strategically important market of China, to continue the growth of visitors to South Australia. The focus in China will include the emerging partnership with China Southern Airlines, using the new state international advertisement campaign to enhance the prospect of direct flights, and subsequent visits and expenditure.
  • Continue to participate in key targeted trade events held in Australia and overseas ensuring that South Australian products and experiences are represented where appropriate.

 

DEPARTMENT FOR ENVIRONMENT, WATER & NATURAL RESOURCES

New Budget Expenditure

Cleland Wildlife Park

  • $500 000 in 2016–17 to complete a business case for the redevelopment of Cleland Wildlife Park to enable the park to become a global destination for koala experiences.

Carbon Neutral Adelaide

  • $518 000 in 2016–17, rising to $1 million per annum thereafter to deliver on the state government's commitment to make Adelaide the world's first carbon neutral city by mobilising businesses, organisations, property owners and residents to reduce their emissions.

Targets 2016/17

  • Launch the Kangaroo Island Wilderness Trail.
  • Amend the management plans for seven metropolitan parks to allow for further development of visitor experiences in parks, including mountain bike riding, bush camping, horse riding and dog walking.
  • Implement strategies to position Cleland Wildlife Park as a destination of choice for international tourists.
  • Progress initiatives to improve the management and promotion (including tourism opportunities) of an internationally significant Ediacaran fossil site in the Flinders Ranges.
  • Engage local business and residents in the delivery of a carbon neutral Adelaide, unlocking discretionary effort and local innovation, in partnership with Adelaide City Council.

 

OTHER

$50 million over two years to extend the existing tram network along North Terrace to the Old Royal Adelaide Hospital site.

A contribution of $7.3 million to the Adelaide City Council towards the revitalisation of the Market to Riverbank laneway link, at a total cost of $14.6 million jointly funded by the Council. The Market to Riverbank link connects Bank Street, Leigh Street, Topham Mall, Bentham Street and Pitt Street, to form a pedestrian connection between the Adelaide Railway Station and the Central Market.

$24.8 million over four years for the development of an e-Planning information technology solution to move planning documents and processes online. A streamlined planning framework will provide faster approvals, consistent planning rules, and ready access to information.

$9 million towards the $18 million joint state and Commonwealth Government project to upgrade the Kangaroo Island Airport. The upgrade includes works to the existing terminal and runway to accommodate larger aircraft for direct flights, including from interstate cities.

$1 million over two years for a transitional plan regarding the future of the Leigh Creek township.

$811 000 in 2015–16 for nine South Australian projects as part of the Remote Airstrip Upgrade Program. This includes Umuwa Aerodrome, Yalata Aerodrome, Cummins Airstrip, Amata Aerodrome, Fregon Aerodrome, Pukatja Aerodrome, Pipalyatjara Aerodrome and Cleve Airstrip. The Commonwealth Government has also separately provided $811 000 towards the program.

New arrangements associated with Taxi and Chauffeur Vehicle Industry reform in South Australia

$500 000 to further progress the business case for a new contemporary gallery.

$665 000 per annum from 2016–17 towards the South Australia China Engagement Strategy by increasing the state’s presence in the Shandong province.

$3 million in 2016–17 and $4 million per annum thereafter to Arts South Australia to enable the South Australian arts sector to drive sustainable and attractive levels of activity, to maximise job opportunities and economic benefits for the state and to enhance the tourism potential of South Australia.

$600 000 over two years to assist Business SA in developing South Australian small to medium enterprises for the export market. The program includes coaching and an advisory service.

$35.2 million in investing expenditure over three years for the redevelopment of Her Majesty's Theatre

$1 million in 2016–17 for the purpose of providing a conditional offer of a co-contribution amount to Telstra and/or Optus for inclusion in their applications to the Commonwealth’s Mobile Black Spot Programme. Improving mobile coverage within the state will contribute to improved productivity, improved safety and enhancing the reputation of the state’s key tourist destinations.

$350 000 per annum to the Office of the Industry Advocate, to support the development of a comprehensive understanding of the capabilities of businesses in South Australia that have the potential to either supply directly or indirectly to the State Government.

Additional ongoing support of $750 000 per annum (indexed) towards enhancing the OzAsia Festival.

$1 million to secure the Cedars, the former home of South Australian artist Sir Hans Heysen, for public viewing in perpetuity.

$1.35 million over three years to create a new live music events start up fund, UNESCO City of Music Events Fund. The fund will provide financial support to promoters to assist in the development of new music festivals.

An additional $250 000 per annum to the Office of the Small Business Commissioner to facilitate business mediation services and other functions performed by the office.

$1.2 million over two years to continue a program of economic development initiatives aimed at revitalising the Port Adelaide Regional Activity Centre.

A $9.6 million interest-free loan scheme was introduced to support Whyalla small businesses experiencing cash-flow challenges as a result of Arrium entering administration. 


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