Community
31 October, 2023
Bed levy in chief’s sights
NEW Tourism Tropical North Queensland chairman John O’Sullivan will pursue a funding model to market the destination which aims to take financial pressure off all levels of government.
He said the Australian Government had pledged $15 million over three years to help with international recovery and there were also funding streams from Cairns Regional Council and state and other federal tourism bodies, such as Tourism Australia and Tourism and Events Queensland.
But Mr O’Sullivan said a sustainable level of funding was required and a “mature conversation” was required about a new model.
He said there were no doubts governments were under extreme pressure on the health, education and law and order fronts and tourism was regarded as “discretionary spending” which was not the case in the Far North where it was “a necessity”.
Mayor Bob Manning is advicating for a small tourism tax or bed levy on accommodation which could raise about $17m a year.
Mr O’Sullivan, who is the chief executive of adventure tourism operator Experience Co, said levies on short-term accommodation such as hotel rooms were common in the US and Europe with little financial impact on tourists.
He said the USA had been using this model for years to fund new stadiums as well as maintain iconic destinations such as Broadway in New York.
Mr O’Sullivan said it was less than one per cent and hardly noticeable to tourists.
He also said TTNQ’s $5 billion tourism spending target by 2025 was realistic and achievable. It currently was $4.3bn
Mr O’Sullivan said challenges included that the international recovery was slower than expected but there were signs of improvement.
“On the Great Barrier Reef, Experience Co, in the first quarter (of this year) we have seen a reduction in domestic numbers by 25 per cent but an increase internationally of 57 per cent,” he said.
Mr O’Sullivan said the domestic market was starting to soften or “correct”, while international was starting to bounce back.
He was appointed TTNQ chairman at the annual general meeting on October 19.
He has been a director of TTNQ since May 2021 and is a regular visitor to Tropical North Queensland where Experience Co Limited operates Great Barrier Reef cruises, sky diving and a rainforest high ropes course.
The former Tourism Australia managing director replaces Ken Chapman who has completed his three-year term.
Mr O’Sullivan said he looked forward to chairing the TTNQ board through the next three years.
Nikki Giumelli was elected to the board and retiring director Ben Woodward was re-elected.
