A WA parliamentary question probes potential conflicts of interest between Tourism WA and private tourism businesses, focusing on competition and revenue generation. The response details a review of Tourism WA's operations and addresses concerns about competitive neutrality.

AnsweredQoN 1543Legislative Assembly
Asked
28 September 2006
Portfolio
Tourism

QuestionView source ↗

(1) Does Tourism WA in any way directly or indirectly compete with WA’s tourism industry for tourism business?
(2) Does Tourism WA plan to introduce any policies, strategies or commercial interests that will directly compete with WA tourism businesses into the future?
(3) If so to either (1) or (2), please list all Tourism WA’s current or planned commercial interests that compete or will compete with WA’s tourism businesses?
(4) What happens to any money generated by Tourism WA’s commercial interests, either currently or in the future?
(5) Is it appropriate that a Government commission should be competing directly against private tourism businesses that it is meant to be representing?
(6) Is it appropriate to compete against the private sector as a way of subsidising budget expenditure or to cover increasing costs associated with employing bureaucrats?

AnswerView source ↗

Answered
11 December 2006
Responded by
Minister for Tourism
Response time
74 days
IRIC reviewed Tourism WA's operations from a competitive neutrality point of view to identify potential areas where it was competing with the private sector. The operations that were reviewed and the findings are: Western Australia Visitor Centre (reviewed and found that it provides community benefit and therefore should continue operating); Western Australian Tourism Network (finding: it is in the public interest and should continue, but recommended that it incorporate full-cost pricing principles where applicable); Private services and promotion such as research, promotional and other services (finding: the cost of implementing full cost recovery would outweigh the gross revenue from the services, therefore services should be priced according to what the market will bear, however Tourism WA no longer offers private research services nor charges for any of its publications except "Tourism Advantage Education Resource Kit" - $30); Public information and promotion (not reviewed as it was determined this was a public good); Strategic industry alliances (not reviewed as there were no competitive neutrality concerns with this activity); Events tourism (not reviewed as it was determined Tourism WA only manages events where there is no private demand to do so and ensures maximum private sector participation through appropriate tender processes); Convention and incentive travel marketing (not reviewed as the benefit is non-excludable and a public good); Provision of policy advice to government (not reviewed as it does not involve the private sector and is a public good); and Provision of industry training seminars (not reviewed as they are considered a public good). In summary, the review found that there was no requirement for substantial change in any of the operations as the degree to which each activity has some competitive advantage with the private sector is considered to be minimal. (2) Tourism WA will shortly be undertaking a study of the feasibility of an enhanced online booking system on the State's tourism website. This will research the costs and benefits of improved online booking facilities for the State tourism website. It is unknown at this time what the research will show, including any potential issues regarding competition with Western Australian tourism businesses. (3) Refer to question (1) and (2). (4) Not applicable. (5 - 6 ) Refer to question (1).
(2) Tourism WA will shortly be undertaking a study of the feasibility of an enhanced online booking system on the State's tourism website. This will research the costs and benefits of improved online booking facilities for the State tourism website. It is unknown at this time what the research will show, including any potential issues regarding competition with Western Australian tourism businesses. (3) Refer to question (1) and (2). (4) Not applicable. (5 - 6 ) Refer to question (1).
(3) Refer to question (1) and (2). (4) Not applicable. (5 - 6 ) Refer to question (1).
(4) Not applicable. (5 - 6 ) Refer to question (1).
(5 - 6 ) Refer to question (1).

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