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Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
Tourism Marketing Levy - Case for the Whitsundays
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Tourism Marketing Levy - Case for the Whitsundays

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Why do cities/regions need a marketing levy (or resort tax)? How can it help tourism promotion in any location in Australia.

Why do cities/regions need a marketing levy (or resort tax)? How can it help tourism promotion in any location in Australia.

Published in: Investor Relations
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  • 1. Proposed Marketing Levy – Case for Whitsundays
  • 2. The Introduction of a Marketing Levy? Common throughout the USA, Canada & Europe (in the range of 2-14%) It sits on top of a GST or VAT All accom taxes in Australia deemed irrelevant with the introduction of the GST in 2000 A marketing levy of 2%pa in the Whitsundays Regional Council would yield $2.5m and 10%pa would yield $12m on current accommodation turnover
  • 3. Marketing Levy - Advantages It does not burden the normal income tax collection system but are a tax on consumption It does not drain state or local operating budgets It can be applied to the specific problem area, i.e. marketing of tourism by directing collections into relevant tourism authorities
  • 4. Marketing Levy - Disadvantages Any new levy is generally opposed on principle, but this is not a levy on all taxpayers, rather it is user-pays There are additional administrative costs, as with the GST It can create market distortions if too large and not widely applied
  • 5. Marketing Levy in Florida (introduced in1967) Tax Percent Municipal Resort 2% Food & Beverage 2% Tourist Impact 2% Convention Development 2% Tourist Development 1% Total 11% Enacted legislation to be used for: • The creation and maintenance of convention centres, cultural/arts centres •The enhancement and promotion of tourism •Appropriate signage installation and maintenance
  • 6. Accommodation Levies Around the World Location Levy Fiji 5% Hawaii, USA 9% California, USA 10% Florida, USA 11% Bali 15%
  • 7. Australian Industry Size – Annual Turnover 2007-08 Food & Beverage $72bn 9.0% Tourism $75bn 9.4% Retail $150bn 18.8% Motor Vehicles $173bn 21.6% Manufacturing (Incl Mining) $250bn 31.3% Other – Education/Govt etc $80bn 10.0% Total GDP (Approx) $800bn
  • 8. Annual Council Funding for Tourism Marketing Local Council Budget $ per capita Brisbane $16.6m $8.00 Gold Coast $10m $16.80 Sunshine Coast $8.5m $25.50 Cairns $4m $21.60 Whitsundays $750,000 $21.40
  • 9. Annual Federal Funding for Tourism Marketing Country Budget $ per capita New Zealand AUD$190m* $45.25 Bali AUD$43m $31.70 Fiji AUD$29m $27.65 Australia AUD$169m $8.45 * Air New Zealand contributes $90m
  • 10. Return on Investment Business Type (AUST) ROI 1998-2004 Tourism Businesses 11.8% pa All Businesses 14.9%pa (AEC Group, National Tourism Investment Strategy, 2006) The tourism industry has been saved by technology and innovation Low cost airfares and accommodation packaging Online booking and virtual tours
  • 11. Whitsundays Accommodation Rooms Avail Room Nights Sold Occupancy % Takings $m $ Av Nightly Rate RevPAR Income per room Qtr 2009 2009 2009 2009 2009 2009 2009 Whitsundays Mar 2,937 124,008 46.9 27.9 224.46 $ 10,527.17 $ 38,424.19 Jun 2,939 119,924 44.8 24.7 205.25 $ 9,195.20 $ 33,562.48 Sep 2,911 152,202 56.8 30.5 200.28 $ 11,375.90 $ 41,522.05 Dec 2,906 153,176 57.3 35.7 233.34 $ 13,370.38 $ 48,801.89 Calendar 2009 2,923 549,310 51.5 118.8 215.83 $ 11,104.58 $ 40,531.72 Whitsundays = Regional Council boundary including Bowen and Hamilton Island (28% market share) Hamilton Island has 823 beds with approximately 80% occupancy Source: ABS 8635.0
  • 12. Whitsundays Accommodation Rooms Avail Room Nights Sold Occupancy % Takings $m $ Av Nightly Rate RevPAR Income per room Qtr 2009 2009 2009 2009 2009 2009 2009 Great Barrier Reef Islands Mar 2,632 114,996 49.1 32.6 283.46 $ 13,917.89 $ 50,800.28 Jun 2,608 104,120 43.9 27.6 264.14 $ 11,595.75 $ 42,324.47 Sep 2,562 141,135 60.0 36.3 256.92 $ 15,415.20 $ 56,265.48 Dec 2,560 148,622 63.1 43.1 289.91 $ 18,293.32 $ 66,770.62 Calendar 2009 2,591 508,873 54.0 139.6 273.61 $ 14,781.65 $ 53,953.00 Source: ABS 8635.0
  • 13. Website: www.midwoodaustralia.com Annual Subscription: $375 (incl.GST) Includes four quarterly reports and on-line access

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