Mr. Whitby questions the Minister for Tourism about the impact of the previous Liberal-National government's budget process on tourism and how the current government will address these issues. The Minister responds by highlighting the previous government's mismanagement and outlines the current government's commitment to providing certainty and increased funding for the tourism sector.

AnsweredQoN 67Legislative Assembly
Asked
23 May 2017
Portfolio
Tourism

QuestionView source ↗

LIBERAL–NATIONAL GOVERNMENT —
BUDGET PROCESS
67. Mr R.R. WHITBY to the Minister for Tourism:
I refer to the dysfunctional budget process that was a particular
characteristic of the Liberal–National government.
Several members interjected.
The SPEAKER : Members!
Mr R.R. WHITBY : Can the minister outline how tourism
was impacted by this dysfunctional process, and how will that change under this
government?

AnswerView source ↗

As has probably been recognised by the other side, there is a
theme to today's questions from this side of the chamber. We have heard
about all manner of dysfunction across a range of portfolios today, and none
more stark than the performance in tourism. As I mentioned last week, the
budget in tourism inevitably lasted for two years. In the out years, it was a classic
example of the previous Premier's inability to see beyond two years and
his absolute rejection of the forward estimates as a planning tool. As a consequence,
Tourism Western Australia and any professionals working in the tourism space
were compelled to assume that they had a far lower budget than the Premier
assumed. When I asked him during estimates, when I was on the other side of the
chamber, what was happening with the budget when expenditure was at a level of
around $70 million or $74 million for two years and then it dropped off a cliff
to $55 million in the third year of the forward estimates, his response was, ''It
does not matter; you never reach the forward estimates.''
Mr C.J. Barnett interjected.
Mr P. PAPALIA : The member for Cottesloe is confirming
his assumptions and confirming the mismanagement that he inflicted on the
state. As a consequence, those people who were trying to negotiate deals on
behalf of the state with wholesalers, promoters or airlines, or who were
marketing campaigns in a target market, were compelled to use a lower budget
than he anticipated. What he gave them was uncertainty.
The now government has committed to rectifying this problem.
We have committed to $85 million in destination market events funding every
year for five years to give certainty and to give the professionals in that
organisation the ability to market on behalf of the state and get the most
value that they possibly can from the taxpayer's dollar. What impact
did it have? Last week, I think my memory failed me slightly with some of the
statistics I threw at the member regarding international students. It did have
an impact. For the 10 years from 2006 to 2016—most of which he was in
charge and the former government was running the show—the impact on
international students was undeniable. Our proportion as a share of the
international student market fell from 10.6 per cent—I think I got the
number wrong last week—in 2006 to 8.5 per cent in 2016. That is a figure
of 8.5 per cent, when Western Australia has a proportion of the national
population of around 11 per cent. We should be aiming for at least a per capita
share.
I have another couple of examples. The figures for interstate
visitors collapsed in 2014. When every other state in the country was having a domestic
tourist bonanza, Western Australia went backwards. The number of interstate
travellers to Queensland grew by 23.3 per cent, in New South Wales it grew by
6.3 per cent and in Victoria it grew by 10.5 per cent, but Western Australia
went back minus 3.1 per cent in 2015.
Several members interjected.
The SPEAKER : Member for Cottesloe!
Mr V.A. Catania : Is it international or interstate?
Mr P. PAPALIA : It is
international travellers in 2015. Again, our visitor numbers collapsed. By
comparison, the rest of the country was experiencing an absolute boom. I think
the Deputy Leader of the Opposition might have been the minister about then.
The average growth in international visitors that year was 7.9 per cent across
the country—7.9 per cent. New South Wales grew by 6.6 per cent and
Victoria grew by 13.6 per cent; even Tasmania grew by 19.6 per cent. What did
WA do? It grew 2.7 per cent when the national average was 7.9 per cent. I think
the Deputy Leader of the Opposition was the minister. At that time we saw the
consequences of a budget that collapsed. There was no forethought, no
acknowledgement of the forward estimates, no commitment to certainty in the industry,
and Western Australia suffered.
Mr C.J. Barnett interjected.
Mr P. PAPALIA : The former
Premier paid no attention. His only commitment to tourism was to make himself —
The SPEAKER : Minister, wind
it up!
Mr P. PAPALIA : The former
Premier made himself the minister so he could go and cut ribbons at hotels that
someone else built! He made no effort. As a consequence, we have to fix the
problem. It was absolute dysfunction.

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