The increased funding for tourism marketing and major events, announced in the latest WA Budget, will support jobs in the hospitality sector and drive economic activity, said Restaurant & Catering Australia’s (R&CA) John Hart.
The Barnett government reaffirmed its pledge to provide an additional $19 million to attract new events to Perth Stadium, as well as additional suppoty for the Perth Convention Bureau. It’s also reversed its decision to cut funding to Tourism Western Australia.
R&CA CEO, John Hart, said he’s pleased the government has ‘seen the light’.
“Business and major event visitors are high yielding travellers that inject significant expenditure in the local economy,” he said.
“The restaurant and catering industry is the largest employer of all tourism-related industries, employing 68,900 Western Australians in small businesses across the state. Tourism and major events promotion is essential to drive demand and patronage of these businesses.”
Hart added that the new Perth Stadium will allow the state to attract large, lucrative events, but the infrastructure needs to be bolstered by ‘demand generation’ both interstate and internationally.
While the foreshadowed cuts to Tourism Western Australia appear to have been reversed in the immediate future, the hospitality industry needs assurances funding will be maintained in the long run, Hart said.
“For every dollar spent in the tourism and hospitality industry, a further 90 cents is generated elsewhere in the economy. It makes good economic sense to support this sector through sustained tourism and major event funding.”
In the federal Budget, handed down in early May, it was announced that from 1 July 2016, the small business tax rate will be lowered to 27.5 percent, with the turnover threshold increased from $2 million to $10 million. Businesses with a turnover less than $10 million will be able to immediately deduct asset purchases less than $20,000 until 30 June 2017.