Chair's Foreword
Australia is one of the most beautiful and safe countries in the world. It possesses iconic natural and man-made attractions, diverse communities, and historic cultures. For these reasons tourism is Australia’s fourth largest export earner, employing over one million people. In addition to its significant economic benefits, tourism is an invaluable way to share Australian culture and communities with the world.
The Committee commenced this inquiry into Australia’s tourism and international education sectors in October 2022, as the world was emerging from the height of the COVID-19 pandemic. This period saw two years of closed international borders and domestic restrictions on movement that tested the resilience of communities and businesses.
The Committee released an Interim Report in late 2023 focusing on the complexities and challenges of the international education sector and how it had been impacted by the pandemic. After considering the interplay of institutions, educators, businesses and the regulatory framework, it was the Committee’s view that the sector take the COVID-19 disruption as an opportunity to reset. The Interim Report recommended that a student wellbeing focused approach that builds the brand of ‘Team Australia’, supported by the strengthening of alumni networks will help foster enduring connections to Australia. I would like to thank the Hon Julian Hill MP who took a leading role in the development of the Interim Report. Since the Interim Report was released, the Australian Government has announced changes in the policy for international education which will take time to be fully developed and implemented, and see measurable results.
This report focuses on the tourism sector and reflects the lived experience of stakeholders during and after the peak of the pandemic. The Committee was eager to hear from government, businesses, industry, First Nations people, communities and peak bodies during the inquiry, and expresses its thanks to parties that tendered submissions or appeared as witnesses. While the Committee heard stories of struggle and loss, we also heard about collaboration and innovation, as governments and businesses pivoted to new markets or products to meet radically different circumstances.
One of the key learnings from the pandemic is that the domestic and international demand for Australian tourism offerings is strong and enduring. Growth in the tourism sector is already exceeding the industry’s 2024 post-COVID-19 recovery target of $166 billion dollars in visitor expenditure by $42 billion, with Minister Farrell announcing in July 2024 that international tourism levels are climbing back to pre-pandemic levels.
However, while the tourism sector’s recovery is progressing well overall, evidence received during this inquiry identified that it is patchy and there are ongoing structural issues that impede further growth. The sector needs to be dynamic and embrace the changing needs and interests of travellers, particularly those who are concerned about the environmental impacts, or accessibility, inclusivity and costs of tourism. There is an opportunity to learn from COVID-19 and take on board the findings of other recent reviews such as the Migration Review, Aviation White Paper and the Employment Review. The Committee recognises that there is no way to futureproof the tourism sector, however the recommendations in this Report are aimed at strengthening the sector to be more resilient and inclusive, and points to opportunities where the sector can seek new products and markets.
Two areas of significant opportunity for the sector are highlighted in this report: First Nations tourism and regional tourism.
First Nations tourism is one of Australia’s most unique offerings and is of growing interest to domestic and international tourists. Critically, it is also a powerful opportunity to further the social and economic empowerment of First Nations peoples. However, the Committee heard about the barriers faced by First Nations tourism businesses and cautions that the development of new First Nations tourism products and experiences needs to be undertaken by the owners of the cultural knowledge, so they determine the product brought to the market. First Nations tourism of this type could be delivered by the traditional custodians or in partnership with culturally informed others in the tourism industry. Recognising concerns about authenticity and self-determination, the Committee supports the current work to establish a national First Nations tourism body to facilitate the development of First Nations tourism and lead industry strategy and coordination. The Committee also endorses the drive for increased representation of First Nations peoples on decision-making bodies in the tourism sector to ensure the future direction of First Nations tourism is led by First Nations peoples.
The Committee was impressed by the diversity of tourism offerings in regional Australia, and the resilience of regional tourism operators during the pandemic amid challenges in transport, workforce, and infrastructure maintenance. Many of these issues did not just affect regional tourism operators - they were protracted issues faced by regional communities themselves. The Committee appreciates the focus on regional Australia in the Government’s THRIVE 2030 long-term tourism strategy. The Committee also welcomes government efforts to address regional workforce shortages and increase investment in regional infrastructure as these efforts also provide broader benefit to regional communities. This report includes a recommendation to develop a regional dispersal strategy to open the regions to foreign markets and share the benefits of international visitors and become more financially resilient. Hearing from regional communities was critical to the inquiry, and I would particularly like to thank witnesses who appeared before the Committee at regional hearings and the members of the Committee who travelled for the 31 hearings across Australia.
From the earliest stage of the inquiry it was clear that there is a delicate equilibrium between the demand for Australian tourism products and the quality and enablers of the supply. Many stakeholders expressed concern about the ability of infrastructure, including affordable transport and accommodation, to support the changing needs of modern, diverse and digital-enabled travellers. The Committee were particularly concerned that ageing tourism assets and a lack of renewal will become more pronounced over time, particularly in regional areas.
At times during the inquiry the Committee was frustrated by the lack of accessible, simple and targeted data on aspects of the tourism sector, and the difficulty in obtaining data at different scales. As nearly all tourism businesses are small to medium enterprises, they need easily accessible data that is relevant and easy to understand. Research, information sharing, and data improvements will drive future product development, business planning, market identification and promotion. New markets also need access to quality and up to date information about Australia’s tourism offerings.
The tourism sector is inherently complex, with operators navigating multiple agencies, layers of government, laws and regulations. While many stakeholders were positive about the performance of Austrade and Tourism Australia in their stewardship of the sector at a national level, particularly regarding the effectiveness of recent international tourism campaigns and THRIVE 2030, it is clear to the Committee that the ‘connective tissue’ of the tourism ecosystem needs to be strengthened. Clearer roles and responsibilities, improved data sharing and better coordination between levels of government and grassroots tourism operators will enable operators to access assistance and input into plans for sector growth. This will also facilitate a ‘no wrong door’ access to government approach for tourism businesses seeking to expand or promote their offerings.
The Committee cautions against being lulled into a false sense of security regarding the positive post-COVID-19 recovery to date. The sector needs attention and nurturing to maintain its position as one of Australia’s top export earners in the face of current and emerging challenges to the sector. This Inquiry took place in the context of other relevant reviews into various cross-cutting issues that affect the tourism and education sectors, and the Committee recognises that these reviews will help drive the sectors forward.
Lastly, I wish to thank our Committee Chair the Hon Shayne Neumann MP, my sub-committee Deputy Chair, the Hon Michael McCormack MP, and the Committee Secretariat.
Senator Deborah O’Neill
Chair Trade Subcommittee