Jim Turnour (Leichhardt, Australian Labor Party) Share this | Hansard source

The amendments to the Export Market Development Grants legislation represent a significant turning point for Australia’s trade capacity. In particular, the Australian tourism sector is set to benefit from the changes being introduced by the Rudd government. These changes will have far-reaching impacts in the national tourism industry, and they come at a time when this industry requires renewed focus and investment. The Export Market Development Grants Amendment Bill 2008 demonstrates that the government is serious about strengthening Australia’s trade capacity as a nation and that it is committed to delivering upon the promises made in the lead-up to the election. We are delivering on all of our promises, and the EMDG amendment bill is just another example of that.

The Rudd government went to the election with a commitment to reform and revitalise export policies and programs, and this is exactly what we are now doing with the Export Market Development Grants Scheme. Already, federal Labor has committed additional funding for the scheme. A further $50 million will go to our aspiring and current exporters, bringing the total funding available for grants on eligible business expenditure in 2008-09 to more than $200 million.

Programs like the EMDG Scheme need continual attention and investment. The previous government failed to act appropriately with regard to the scheme; they dropped it as a priority and did not provide adequate funding. Australia’s exporters have every right to condemn the previous government for this. I know that many businesses in the tropical north, tourism operators in particular, are hurting as a result of the Howard government changing the policy settings for the EMDG Scheme without backing it up with money. Their budgets now, and for the next 12 months or so, have to be reworked, their marketing and other expenditure slashed and investment opportunities foregone. This is the Howard legacy. A number of these businesses have come to see me—hoteliers and reef operators who had put their faith in the EMDG Scheme, made significant investments and found that the Howard government had failed to appropriately fund this scheme.

We are reforming and revitalising the scheme. The Rudd government will work to restore the EMDG Scheme. There is renewed confidence over the future of the tourism industry as a result of the legislative changes being introduced into the parliament. My electorate of Leichhardt, in tropical North Queensland, is home to a number of tourism centres—from Cairns, Kuranda and Port Douglas, to the Daintree and Cooktown, to the burgeoning Cape York and Torres Strait regions, which are strengthening tourism hubs in their own right. We have some fantastic tourism experiences and destinations in Leichhardt. It goes without saying that tourism in Cairns and the tropical north region is critical to the strength of the Northern Australian economy. However, it is also a prime factor in the success of the national industry. Many foreigners associate Australia with many of the natural icons in the tropical north. With natural assets such as the Great Barrier Reef and World Heritage listed rainforest, the region has the ability to attract international visitors into Australia, and ultimately these visitors in many cases stay on and visit other parts of the country.

Recently, though, as we all know, the Australian tourism industry has been facing some tough times. I know firsthand the pressures being faced locally in Cairns and the tropical north and the flow-on impacts being felt in industries such as the hospitality industry. The tropical north has seen a decline in the past 12 months in one of the region’s most important international markets, Japan, with little growth in other key markets such as Europe. There has also been a decline in international airlines flying into Cairns in recent years, although there has been an ongoing effort and strategy development by local organisations to reverse this. I know that they also welcome the Rudd government’s aviation white paper. They will be working closely with me and the government to make sure that they have strong input into that white paper and to ensure that we have every opportunity in Cairns to attract international carriers back into our airport and strengthen and boost our local tourism industry. Additionally, the industry is trying to cope with the very high Australian dollar, which is the highest it has been for a number of years. These factors make it an uphill battle for exporting businesses and, particularly, for the tourism sector. However, the EMDG bill signals a tremendous boost to this region, and I am looking forward to the benefits of its amendments unfolding within the local tourism industry. The scheme is widely utilised in the region, and the changes that this bill will bring to the industry have been welcomed by local tourism operators. These changes come at a most apt point in time, given what the region and Australia have been experiencing of late.

Two measures proposed in the bill are of particular interest and benefit to the tropical north. One of the most significant and positive measures is the ability for regional tourism authorities to access the scheme. Tourism Tropical North Queensland, better known as TTNQ, is the region’s peak tourism industry organisation. It has welcomed the government’s decision to undertake a review of Australia’s export development policies and is particularly keen to take advantage of its eligibility to access the EMDG Scheme upon the passing of this bill. An enormous amount of the tourism promotion work in the tropical north is undertaken by TTNQ, and the government has recognised the critical role that tourism authorities like TTNQ play in regions throughout the country. TTNQ has established itself as a productive and effective organisation, and its proactive approach has placed it in an excellent position to capitalise on this legislative change. I work with TTNQ personally. The Minister for Trade, Mr Crean, visited the region, and we worked directly with TTNQ in the development of the amendments to the legislation. The TTNQ will benefit directly from these changes. TTNQ’s key objective is to build destination awareness in Australia through a targeted program of marketing activities to achieve maximum visitation, length of stay, expenditure and regional dispersal within tropical North Queensland. The ability of TTNQ and its corporate members to fulfil this objective will be greatly enhanced by the EMDG Scheme changes.

The second measure that will have a positive impact in the region is the reduction in the minimum threshold of expenditure on eligible export promotion activities by $5,000 to a $10,000 minimum. This too has generated a positive response from the region’s operators since these changes to the bill were publicised. The EMDG Scheme has always sought to encourage small and medium-sized Australian businesses to develop export markets. However, as the act currently provides for a $15,000 minimum expense threshold, this has often drawn criticism or hesitation from some small business operators. This limit excludes a substantial number of small operators for whom, although they are successful—they are financially stable and offer a quality tourism product—investing in the EMDG Scheme poses too much of a risk and/or commitment to their standard operations. However, changes to the legislation will ensure that these small businesses are not turned away in the future.

These two measures are both conducive to boosting the tropical north’s tourism capacity. Already research and planning have started in the local industry, with various operators ready to seize the opportunity this legislation will bring. TTNQ has instigated discussions as to how best to maximise the potential to access additional support for the region. A number of joint ventures have been tabled which would not have been considered had the government not revitalised the EMDG Scheme.

TTNQ is seeking to pull together export ventures that will allow very small operators to work with major operators to sell unique Australian experiences. For example, Indigenous tourism offers a host of opportunities for the tropical north. There is an extensive and rich cultural heritage in the region. Tropical North Queensland is home to a number of Indigenous communities, which have a tremendous amount of history, culture, art and traditions to share with visitors. This, coupled with the spectacular landscape that covers the peninsula area, represents significant tourism potential for a number of markets overseas. Whether it be fishing charters, nature tours or Aboriginal and Torres Strait Islands culture and historic experiences, a number of Indigenous operators, many of whom are only small enterprises, have expressed an interest in TTNQ’s strategy to combine forces, venture into international markets and market these unique experiences.

Some of these Indigenous operators may not have the business expertise or confidence and/or the financial backing to participate in the EMDG Scheme individually. However, with a reputable organisation like TTNQ providing direction and support, combined with the scheme’s financial threshold being lowered, there is a greater incentive for them to now explore international marketing options. As mentioned previously, this not only will benefit Far North Queensland but has the capacity to boost other regions as travellers continue on throughout the country. The Indigenous tourism market is somewhat untapped, and I believe there is real potential to develop this further. The EMDG Scheme has provided an ideal platform for this to be taken to the next level.

There are a number of indirect benefits that may result from increased tourism activity in these Indigenous communities, which should also be realised. Increased employment opportunities for local Indigenous community members are one such key benefit. Indigenous operators can contribute to cultural revitalisation within their own communities. Many will seek to employ local Indigenous people. These locals sharing their knowledge will not only inform tourists about Indigenous culture in a very authentic way but also help to preserve their own culture through awareness and education of many traditions within their own families, tribes and communities. There is a threat that some of the Indigenous languages, for example, may be lost, as younger Indigenous generations may not be engaging in their own culture like their elders did before them. These local employment options represent one way they can reconnect.

Aurukun Wetlands Charters and the Mapoon turtle rescue project are just two examples of successfully run Indigenous ventures. There is also tremendous potential in the Torres Strait for the development of further tourism enterprises—in particular, the arts industry in the Cape—and, as a result of these amendments, there will be the ability to market these experiences overseas.

Another example of a collaborative project that the EMDG Scheme changes have kick-started is the Great Tropical Drive. Already an established tourism product, this has significant potential to be marketed further, thanks to the expanded EMDG Scheme criteria. The Great Tropical Drive is a self-drive touring route that incorporates over 2,000 kilometres of road, taking those who participate to many sites along the way. A range of driving itineraries have been developed for different audiences, such as wildlife, food and wine, and Indigenous drives. The Great Tropical Drive is marketed effectively in its current state. However, the EMDG Scheme provides a real opportunity for this product to reach an international market. It will give many smaller operators—and there are many scattered throughout the entire region along the Great Tropical Drive route—the opportunity to participate in a collaborative marketing effort that will feature in the international arena, something they would not have thought possible on a sole basis. Similarly to the Indigenous tourism concept, the benefits of this are multifaceted. Individual tourism operators benefit from increased marketing exposure, as they are part of a much larger, widespread product and team. They are able to overcome financial restraints due to the joint effort and the lower expenditure limits. Such collaboration will enhance the strength and quality of the Great Tropical Drive product. The more operators who participate, the stronger the product, which then has an improved chance of receiving international attention and providing a return on their marketing investment.

If you drive from Cairns to the Daintree, you are doing one of the world’s great drives. As you come out of Port Douglas and go up through Mareeba, across the tablelands and back down through the Innisfail region, you are in magnificent country. It is spectacular country. I have travelled extensively throughout the world and I reckon I live in one of the most beautiful parts of the world. The Great Tropical Drive is a great experience that the EMDG Scheme amendments will enable us to market much more effectively overseas. They will allow small operators to come together and work with local tourism organisations such as Tourism Tropical North Queensland. Those individual businesses will be effectively marketed together overseas.

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