Australian Shadow Minister for Tourism and Regional Development Bob Baldwin has reminded Australia’s 62 Regional Tourism Organisations (RTOs), and all Shires, Councils and associated Local Tourism Organisations (LTOs) that 9 days remain before tourism infrastructure grants close for the current round.

The Tourism Industry Regional Development Fund has $42.9 million available for grants in total, with $7.12 million available to be committed in 2013-14.

The funding was made available as a ‘sweetener’ to ensure the passage of the government’s tax hike to the Passenger Movement Charge in this year’s budget.

Mr Baldwin said it is vital that RTOs and LTOs submit applications to properly fund "demand driver" infrastructure projects. 

“It’s a waste of taxpayer funds to pay for ‘support infrastructure’ that delivers no strategic benefit to regions, including ‘motel makeovers’ that skew markets and ruin investor confidence and market transparency,” Mr Baldwin said.

Mr Baldwin said the Coalition’s Tourism Round Table meeting in October heard the industry’s clear message that it wants government to get out of the way of the free market , and only intervene where there are actual cases of market failure, and only then if it can deliver better long term outcomes related to structural adjustment.

“There are also strong arguments for properly coordinated Aboriginal tourism projects, and strategic industry wide research projects.

“We need to fund genuine ‘demand driver’ projects that benefit whole regions – not individual operators.

“In principle, a hotel or motel owner should not be taxed so their competitor gets an unfair advantage,” Mr Baldwin said.

Mr Baldwin said the tourism industry is keen to see a demand driver (attractions and events)-focused system that:

1.      maximises tourist activity;
2.      is fair and transparent;
3.      avoids charges of pork barrelling;
4.      appropriately shares resources between states;
5.      supports state and local governments in their forward funding of worthy projects;
6.      provides a way for funding applicants to understand their ‘place in the queue’, (helping them run their organisations or businesses)
7.      generates standard information across all projects, and a measure of financial Return On  Investment; or ‘public good’
8.      allow project managers to raise private capital investment (and potentially re-submitting applications as Public Private Parnerships).

Mr Baldwin commended a recent statement by Hon Anthony Albanese about the Tourism & Transport Forum’s "Infrastructure Policy and Priorities" guide.  This provides principles that should continue to motivate government decision making – as it did with funding for Tasmania’s Three Capes Track project. 

The Coalition will hold the government to these principles when the grants are announced.