Mark Furner (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business and Minister Assisting the Minister for Tourism, Senator Sherry. Can the minister outline how the Australian tourism industry is recovering from the downturn caused by the global financial crisis, from other economic factors and from recent natural disasters? Is the outlook positive for the industry, its thousands of small business operators, their employees and the communities which depend on the industry?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

I thank Senator Furner for his interest in tourism issues generally. Despite recent concerns, tourism remains Australia’s leading service export earner. It was worth $23 billion in 2009-10. In fact, in 2009-10, despite being a difficult year on the domestic front, tourism grew faster than Australia’s economy—it grew at 3.2 per cent to $34 billion, compared to 2.3 per cent. In 2010, Australia’s tourism industry experienced a recovery. We welcomed 5.9 million international visitors, up just over five per cent on the previous year. This was led by an increasing market growth from many Asian countries and in particular record growth from China. What is not commonly known is that China is now Australia’s largest tourism market by value. The inbound value of the market was some $3.1 billion for the year ending December 2010. Driving these strong figures from the China market is the obvious strength of the Chinese economy, what is broadly known as the middle-classing of China and the introduction of additional airline services, a good example of which is China Southern Airlines, which recently opened direct flights to Brisbane. That airline plans to increase its services to 50 a week by 2012.

Tourism contributes just over half a million jobs and there was an increase in tourism employment over the year 2009-10. This is particularly important for small business. Ninety per cent of tourism operators are small businesses, particularly in rural and regional areas. (Time expired)

Mark Furner (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister advise the Senate what the government is doing to help domestic tourism operators, especially small businesses in those areas affected by recent natural disasters?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Everyone is well aware of the impact the recent floods have had on Queensland—Queensland was particularly hard hit. Tourism is a major industry in Queensland, worth $9.2 billion.

Michael Ronaldson (Victoria, Liberal Party, Shadow Minister for Veterans' Affairs) Share this | Link to this | Hansard source

So will you modify the carbon tax?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Carbon tax and environmental issues more broadly reflect a growing social awareness which is reflected in part also in tourism more generally. People travel for many and varied reasons. Obviously, one of them is to look at different environments. The issues are related to that extent—part of a broader concern about the future of the planet. That is one of the reasons people travel to Australia. (Time expired)

Mark Furner (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister optimistic about the challenges ahead of the tourism industry and, in particular, for regional tourism businesses?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

In respect of the recent disasters I want to emphasise that, while there was some impact on Queensland, Queensland is open for business. The vast majority of Queensland tourism facilities are open and operating. We have provided $12 million for a tourism industry assistance package and there have been a number of other initiatives. The first booking figures from the online travel company Orbitz since the screening of Oprah’s Australian shows reveal spending on bookings from the US to Australia have increased by almost 10 per cent and the hotel reservations have risen by 13.6 per cent.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

So we are now relying on Oprah!

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

We have utilised Oprah. She is willing to assist in Australian tourism promotion. Why shouldn’t we, Senator Abetz? We will draw on anyone who wants to recommend Australia and Queensland. (Time expired)