The document proposes introducing a 2-10% marketing levy on accommodation in the Whitsundays Regional Council area. Marketing levies are common in other countries and states and do not burden normal taxes. A 2% levy could yield $2.5 million annually for the Whitsundays to promote tourism. The levy is considered a user-pays tax on consumption rather than draining local budgets. While new levies are generally opposed, this would only affect accommodation providers. Marketing funds have shown strong returns on investment for tourism businesses and industries.

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

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