Portfolio Media

Rudd’s sugar-hit not so sweet for the tourism sector

28 October 2009

The Rudd Labor Government’s cash-splashes have failed to boost the nation’s ailing tourism sector, according to a survey out today.

The Tourism Industry Sentiment Survey showed more than two-thirds of tourism businesses surveyed found the Rudd Government’s response to the global financial crisis “did not go far enough” for the sector.

Shadow Tourism Minister Steven Ciobo said the survey findings confirmed the Coalition’s view the Labor Government’s two cash-splashes totaling more than $22 billion in handouts were hasty and poorly directed and have not benefited the tourism sector.

“More than two-thirds of tourism businesses have confirmed they have benefited little from the Rudd Government’s cash-splash,” Mr Ciobo said.

“National Visitor Survey data out last month showed domestic visitor nights slumped by 10 per cent in the first half of 2009. The figure for Queensland was even worse at 12.8 per cent.”

“All this smashes the myth the Labor Government’s $900 sugar-hits helped underpin domestic tourism in Australia, and confirms much of them went into savings accounts or on to mortgages, not into consumer spending as the Rudd Government has claimed.

“What we are now seeing is the tourism sector - which employs an estimated 500,000 Australians - lagging behind the reported recovery of the rest of the economy.

“One of our most vital sectors is now playing catch-up with the rest of the economy. This, of course, will be further hampered by rising interest rates, thanks to the reckless spending of the Labor Government and a soaring dollar.”