QHA REVIEW April 2017

ACCOMMODATION UPDATE
with Judy Hill
INDUSTRY
TRANSFORMATION
I attended the first Destination Q conference over five
years ago and at that event the issue of structural
reform and funding was a topic of discussion for
the Queensland tourism industry. These discussions
resulted in a specific set of actions to explore
alternative funding models (not solely reliant on
government funding) for tourism development and
marketing to enhance the state’s strengths and
capitalise on opportunities as the industry transforms
to meet evolving global demands.
The Queensland Tourism Industry Council (QTIC) has
been working to identify and evaluate viable options
for a fit-for-purpose industry model that provides
efficiencies, reduces duplications and is adequately
funded. Working with KPMG, they have examined
structural and funding models that have been
employed successfully around the world - together
with an extensive consultation workshop facilitation
process from the north to the south of Queensland to
seek industry feedback before advocating the proposal
to the government.
The proposed model introduces the concepts of a
new state tourism entity and new regional bodies
that have clearly defined roles, reducing duplication
and creating a stronger leadership platform. The new
entities would continue to be funded in part by the
government. In addition to government funding, it’s
proposed that a visitor levy be introduced to augment
funding and strengthen the proposed structural
changes. The visitor levy would be designed to take
revenue raised by the industry and channel it back to
the industry. It’s proposed the levy would be collected
across accommodation providers (commercial and
share economy), and paid for by visitors. The revenues
raised through the proposed levy would be utilised
for shared services such as capacity and capability
building, future-scoping research and marketing as
well as regional and destination specific projects that
enhance the tourism environment. It’s important to
note that the proposal suggests revenues raised in
the destination will predominantly return to the region.
A proportion of the funds raised is also proposed
to be allocated to accommodation providers in
compensation for the additional administration
required. The levy revenue is not proposed to
substitute government investment in tourism.
Those funds could be deployed by government in
collaboration with the new tourism entity for specific
purposes, such as enhanced capacity to attract major
events or new aviation links.
QHA had various discussions with its accommodation
division members together with taking the discussion
material (business case) into account and several
questions remain. It’s QHA’s opinion to resist the
imposition of another tax on accommodation
providers in Queensland in order to fund services
that should be standard government activity. As
the accommodation sector, we require clarification
of whether all accommodation providers including
hotels, apartments, backpackers, and the sharing
type arrangements (ie student accommodation and
Air BNB) are included in the proposal. Secondly, if this
tourism levy proceeds, is there any guarantee that all
money collected will go back into promoting tourism
and not into general government coffers and/or offset
what is currently given by the government to regional
and state tourism organisations? Thirdly, are there
other alternatives for the collection of a tourism/visitor
levy so that accommodation providers are not singled
out? Lastly, QHA’s concern is for its members but it
begs the question of why only hotel accommodation
providers are being targeted when the benefit would
be far reaching across a wide range of industries
including restaurants, bars, transport and retail to
name a few?
We look forward to hearing the results of the Industry
Transformation Workshops which were held last month
throughout Queensland.
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