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Australia Tourism & Transport Forum Update – There Is A Need To Improve Air Travel Access ‘Across The Board’

Australia Tourism & Transport Forum chief executive officer Margy Osmond highlights there is a need to improve air travel access “across the board” and that Australian state governments could take a much more enlightened view of supporting and subsidising regional air activity, as well as looking at charges at regional airports. She notes that while Chinese tourism represents an “amazing opportunity for Australia”, it is important not to lose sight of the wider Asian market and the “resurgent” high yield markets of North America and Europe.

Transcript

Margy Osmond:Australia Tourism Transport Forum 2017. Well, look, there's no doubt that tourism is absolutely the hope of the side. It's growing at a terrific rate. Inbound travel is up, and interestingly enough, domestic travel in the context of people choosing to holiday at home is also up. And we're seeing great competition between the states and governments investing in the tourism industry, which is all good news. China is an amazing opportunity for Australia, but we have to realise that you shouldn't put all your eggs in one basket. So while we're concentrating on China, there is a much wider Asia market we should be thinking about. And really, the resurgent high-yield markets in the US and Europe are actually showing Australia quite a bit of love at the moment, so we need not to lose sight of those. I think one of the great things about today has been the amount of airport-to-airport collaboration and conversation. So earlier this morning, we had the new CEO of Sydney Airport talking about the need for all airports to collaborate. I think the fact that Western Sydney Airport obviously sees itself as a critical part of the Western Sydney economy, and what it has to offer and contribute to that economy is also great. I mean, I think that as a project, you know, this is so overdue, and I would agree with one of the speakers today, Chris Brown, who said that, you know, there are hardly any cities in the world with, you know, nearly 3 million people, which is Western Sydney, that doesn't have its own airport. And, you know, it's an idea that's, you know, that is not only overdue, but it is going to, you know, take Western Sydney to the next level. Look, I think we need to improve access across the board, and out of that process will come things like removing restrictions at Sydney Airport, which will loosen up the capacity for more regional flights from Sydney to regional centres. I think that also state governments need to take a much more enlightened view of supporting and subsidising some of that regional activity. And I also, you know, really feel that, you know, some of the regional airport charges, you know, are a factor and probably, you know, are in need of larger consideration, which is why we're seeing reviews in a number of states. We have a terrific cross-Tasman group now that is meeting to work on a staggered work schedule for this, but, you know, there are steps along the way. So, for example, the New Zealanders have now done away with departure cards and so forth. So this is an incremental journey as opposed to the Big Bang, but we're in it for the long haul, and we certainly have a list of doables and low-hanging fruit we hope both prime ministers will focus on in the next 12 months. Australia already has one. It's called the Passenger Movement Charge, and it currently sits at $60 when anybody leaves the country. The difference between Australia and New Zealand is that the proposed levy in New Zealand is likely to be what we call hypothecated, which means that every cent they raise will go back into infrastructure for the tourism industry or into environmental sustainability. In Australia, the government views this as a general tax. They make $1 billion a year out of it, and none of it goes back to the tourism industry. Very big difference. Difference.

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