Tourism Australia MD expects extra funds to “go to good use”. Image: skyscrapercity.com

Following Qantas’ decision to terminate its joint partnership with Tourism Australia, rival airline, Virgin Australia has agreed to double its current agreement with the tourist bureau.

Earlier this month, the Australian flag carrier announced that due to a “conflict of interest” and concerns the bureau’s director was out to sabotage the airline Qantas could no longer support Tourism Australia or continue with its joint three-year $44 million marketing agreement.

Although far from Qantas’ contribution, Virgin Australia has since agreed to increase its participation with Tourism Australia, doubling its joint commitments from AU$6 million to AU$12 million over the next three financial years.

The new agreement will cover marketing activities including major sporting and business events and focus on key inbound visitor markets – the United States, New Zealand, the United Kingdom, Continental Europe and Asia.

Tourism Australia managing director Andrew McEvoy said the decision was “great news” for Australia’s tourism sector and expects extra funds to “go to good use”.

Meanwhile, Qantas is obliged to continue working with the tourist bureau until its three year contract expires mid-2013.

Despite pulling funds from Tourism Australia, Qantas has reassured the industry it will continue to promote Australia on a domestic and international level, keeping every dollar within marketing the country.