The tourism system is starved of the resources it needs to operate and develop as it should. This is a critical issue facing tourism, because without appropriate funding the ability to advance the other important issues and grow in a balanced way will remain constrained.
With adequate funding levels and with the right collection, governance and distribution arrangements around these funds, the tourism industry can more deliberately shape its future to 2050. Areas where investment is needed include infrastructure, research and data, implementation of Destination Management Plans, lifting industry capability, and others.
Action 2 of Tourism 2050 is Address Industry Funding, promoting the need to address the clear industry funding deficit for the long term.
TIA is vigorously pursuing this Action in its work with Government, industry and other stakeholders. There is wide support that a funding solution is needed to enable the development of the supply-side of the industry, particularly for those aspects of tourism where the private sector cannot invest commercially.
TIA is also conscious of the costs being placed on visitors and ensuring that a holistic view of funding is taken. For example, TIA supported a moderate increase to the International Visitor and Conservation Levy (IVL), which was set at $100 from 1 July 2024. TIA opposed the large increases for Visitor Visas introduced in 2024, and other border services charges.
TIA considers that all cost-recovery or user-pays changes advanced by government must be considered in the context of the cumulative impact for visitors, industry and the wider national interests.
As set out in Tourism 2050, any new funding solutions should adhere to principles including: a nationally consistent approach that is efficient and equitable, optimising use of existing funds such as the IVL, funding allocated to the place where revenue is gained, independent governance of funds and allocation processes, allocation to support strategic objectives of the industry, and to be undertaken with industry, government and local government.
