Page 224 - Week 01 - Thursday, 18 February 1993
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Goods and Services Tax - Tourism Industry
MR LAMONT: Madam Speaker - - -
Mr Kaine: Dorothy Lamont has the next question.
MR LAMONT: You keep my family out of this, Mr Kaine. My sister should be in here. She would probably contribute better than the Opposition does.
My question is directed to the Chief Minister. Noting the continuing growth in the tourism industry as a contributor to the ACT economy, has the Chief Minister been advised of the industry's view about the impact of the "frightpack" package and the GST on the tourism industry?
MS FOLLETT: I thank Mr Lamont for the question. It is a fact that tourism is a very important part of the ACT's economy. In fact, it is contributing about a million dollars a week to the ACT's economy. About 7,500 people are employed in this industry, and many of them are young people. So it is an important part of our economy, and it is becoming a much more important part of our economic base. I believe that it is fair to say that any adverse national impact would be felt even harder in the ACT. Madam Speaker, I think it would be a severe blow - in fact, an act of economic vandalism - to put an impost on the tourism industry in the ACT when it is now emerging as such a significant part of our economy.
Mr Lamont's question, of course, related to what the tourism industry believes about the goods and services tax proposal. I think we can take it that the tourism industry would not be a party political body; that they have only the interests of their industry at heart, and in a non-partisan way. Madam Speaker, in a recent statement on Fightback mark 2 the Australian Tourism Industry Association has pointed out that the experience in New Zealand, after a goods and services tax was put in place, was that outbound tourism exploded by 112 per cent over a few years. In fact, Madam Speaker, many agents in New Zealand were promoting GST-free packages. By contrast, New Zealand's inbound tourism fell dramatically, and it will take many years to recover. If those events were to be replicated in Australia they would have a dramatic effect on our trade, on our foreign earnings, on employment and on investment and development in tourism in Australia and in the ACT.
The chairman of the Australian Tourism Industry Association was quoted as saying that tourism must be given the opportunity to achieve its full potential. I think members would agree that it has not yet achieved its full potential. He said that the only possible approach is to treat the industry as other exporters are treated and to have zero rate packages pre-sold to foreigners overseas. Madam Speaker, as we know, the Federal Opposition has consistently failed to do this. They prefer, it appears, to disadvantage the tourism industry in Australia by reducing their competitiveness in overseas countries. Madam Speaker, I believe that Fightback is very bad news for tourism generally. In the ACT, where tourism is becoming a more and more important part of our economic base, that unfortunate effect will be felt quite disproportionately.
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