Tourism projects under threat amid grant review

Tourism projects under threat amid grant review
By admin


Regional tourism is facing a body blow as fears mount that millions of dollars of already-approved grants will not be honoured by the Abbott Government.

Almost 100 operators and tourism organisations shared in $8.5m of T-QUAL grants awarded by the Labor administration in July, money the successful applicants may now be denied.

All the grants are being reviewed by the trade and investment minister Andrew Robb and finance minister Mathias Cormann, with the construction of dozens of regional tourism projects hinging on the decision.

It is feared that without the promised grants, many projects will have to be drastically scaled back or even abandoned altogether.

Robb, in a statement to Travel Today, said he hoped to give clarity to the successful applicants “as soon as possible”.

The T-QUAL grants, which must be matched dollar-for-dollar by the applicants, ranged from $16,500 to $110,000 and are designed to “increase Australia’s supply of quality tourism products and experiences”.

They are also linked to the long term Tourism 2020 goals to double overnight expenditure to between $115 billion and $140b.

Confusion over the whereabouts of the grants, and the willingness to pay them, has been growing since the Coalition was elected in early September.

Australian Regional Tourism Network (ARTN) chairman, David Sheldon, described the review as “very disappointing” and one that will put dozens of tourism projects at risk.

“Andrew Robb should get ready for his doors to be broken down, there will be a lot of very angry people if these grants are not honoured,” he told Travel Today. “This could also have wide-ranging ramifications for the overnight 2020 targets.”

Sheldon said he had alerted ARTN’s executive board to developments.

State and territory tourism officials are also known to be increasingly anxious about the grants and whether they will be axed.

Business Events Council of Australia (BECA) executive manager, Inge Garofani, told Travel Today it would be a “major blow” should its $110,000 grant not be honoured.

BECA said the money had been earmarked for vital research on the value of the business events market which would “review the current situation for business events and identify the opportunity areas”.

The industry is currently relying on 10-year-old data compiled during 2005 research which needs updating, Garofani said.

“We put out a tender for the research and had five responses but we have had to put the process on hold,” Garofani said. “It would be incredibly disappointing if we did not get the grant. We would still have industry funding and would do something but the scope of the research would be half of what we had planned and be of half the benefit for the industry.

“The extent and value of the project would be reduced which would be a major blow.”

She added that BECA had written to the trade and investment minister "pleading its case" and urging him to honour the handout.

Robb, who told a conference last week that "tourism was one of Australia's greatest strengths", said the grants assessment process was at an advanced stage.

“All discretionary grants have been subject to review in association with the Minister for Finance,” he said in the statement. “I am keen to give applicants clarity as soon as possible. Applicants will be contacted as soon as programme arrangements have been decided.”

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