Call to boost regional tourism
The NSW regional economy could be boosted to the tune of millions of dollars – and thousands of jobs created - if plans to increase business event opportunities for major regional hotels are successful.
The need for regional business events funding was identified as a strategic priority in the Visitor Economy Taskforce Report, endorsed by the NSW Government in late 2012.
In support of that goal, Tourism Accommodation Australia (NSW) has asked the State Government to match a proposed $400,000 in industry funding to help bring business events to regional areas within 1-3 hours of Sydney, such as the Central Coast, Blue Mountains, Illawarra and the Hunter.
“Accommodation providers in areas like Newcastle, Gosford, Wollongong and Katoomba are reliant on two key markets – leisure and business events,” TAA (NSW) director Carol Giuseppi said.
“Leisure business is primarily short stay, weekend and holiday business.
“Currently mid-week occupancies in regional NSW average less than 50%.”
“To attract investment to regional areas and ensure accommodation providers have a sustainable business long-term with important flow-on benefits to the local economy, it is vital we boost mid-week business opportunities.
“Everyone benefits – employment is higher as is the visitor-spend in surrounding operations like restaurants, cafes and entertainment. Ultimately, this provides increased economic security for associated businesses and workers.”
Regional business events in NSW were funded from 1999 to 2004. This funding ceased in 2005 and since that time the number of business event visitor nights has declined by 6.7% per annum.
“The NSW Government has the opportunity to reverse the short-sighted cuts to funding of the previous government and to partner with local businesses to help win back this critical market into regional NSW,” she said.
Ms Giuseppi said business event delegates are classified as “high-yielding” visitors with a significantly higher daily spend than holiday travellers.
“For example daily expenditure by international visitors to NSW averages $93, domestic visitors averages $167 – that’s compared to the daily spend by international business event delegates ($533), interstate business event delegates ($614) and intrastate delegates ($368),” she said.
“We need to look at ways to boost this expenditure – that is why we have gone to the State Government and asked for specific targeted funding in regional areas similar to the system in Queensland.
“The industry is prepared to meet the funding dollar for dollar ensuring $800,000 would be available annually to boost business event sales activities in regional areas. To ensure current business is not compromised, it is proposed that these funds are separate from the current investment by Government in marketing activities to promote the destination.”
The hotel accommodation industry in NSW is a significant employer, directly supporting 30,400 jobs and supporting a further 41,500 through flow-on impacts.
“A viable business events sector in regional NSW will contribute significantly to improving the profitability and thus sustainability of accommodation hotels and serve to encourage reinvestment in local businesses,” Ms Giuseppi said.
“It will also enhance the economic, national and international profile of regional NSW.”
The industry directly delivers more than $2.2 billion in gross product to the state.
In 2011-2012 visitor expenditure associated with business event delegates in regional NSW totalled almost $290 million.
Source: Tourism Accommodation Australia (NSW), 19 April 2013
