Tourism & Travel

Australia’s tourism and travel sector is vital to the economy, with the potential to contribute $280 billion a year by 2030. Despite this, growth has started to stall after a rapid boom post-pandemic restrictions. To revitalise the visitor economy and see it reach its full potential, strategic policy interventions are needed.

ACCI supports reforms that focus on enabling more effective and efficient travel options, improving infrastructure for visitors and tourism workers, and supporting businesses in tourism-adjacent sectors. An emphasis on sustainable tourism, particularly in the aviation sector, will ensure long-term growth, and streamlining passenger facilitation processes will enhance Australia’s desirability as a destination.

These efforts will ensure Australia remains top of the list for tourists, and an appealing option for Australians looking to holiday closer to home. A strong and sustainable travel and tourism sector will lead to benefits for businesses that support the sector and the economy as a whole.

Read our tourism and trade policy positions below. 

Jodie Trembath

Director | Skills, Employment and Small Business

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Tourism, Hospitality and Events

Improve accessibility and competitiveness across all modes of travel
Australia’s vast geography means extensive travel to and throughout the country is needed. Ensuring reliable, affordable and accessible options is critical to meet the demands of a growing tourism and travel sector. Increased competition in air travel, both domestic and international, is needed to reduce costs and improve access for travellers, and reforms to airport capacity management and a stronger focus on strategic bilateral air service agreements will boost passenger numbers. Land travel, including road infrastructure for buses and caravans, requires stronger investment, including supporting the steady growth in electric vehicles through more charging capability. Further, the cruise sector, which derives significant indirect economic benefits to the economy, needs to be supported by making legal exemptions permanent and streamlining cruise passenger entry processes. When developed as a strong suite of policies, these measures can better attract and accommodate more visitors, encouraging sustained sector growth.

Expand support for business events as a major source of tourism
Business events represent an important opportunity to showcase Australia on the world stage. We advocate for policies that encourage more investment in infrastructure to cater for large-scale events and facilitate visitor attendance, especially as we get closer to major global events like the 2032 Summer Olympics. Government investment in the Business Events Fund should be increased to $7.5 million per year to boost the conversion of bids for international events. To support smaller-scale events, including those in regional areas, the Fund should also be expanded to include these events, and caps on attendee numbers should be increased. Additionally, greater investment in infrastructure is needed to support events and ensure Australia remains top of mind as a host destination.

Investing in Tourism

Increase funding for Tourism Australia to promote Australia’s competitive advantage
Tourism Australia plays an important role in positioning Australia as a desirable tourism destination amidst fierce global competition. However, the funding allocated to Tourism Australia has not kept up with inflation, posing challenges for the organisation to carry out its work. We advocate for the Government to boost funding for Tourism Australia to approximately $240 million per year, matched by State and Territory tourism bodies. This will allow it to effectively carry out its core objective, which is to promote Australia to the rest of the world. This will enable Australia to stay competitive in a rapidly changing global tourism ecosystem, especially as people are looking to see more of the world. 

Encourage private sector investment and more government support for operators
Continued and growing private sector investment into the tourism and travel sector is critical to its long-term growth. To attract more private investment, the Government should provide investors and potential investors with more support through existing measures like Export Market Development Grants and the work of Austrade. This could include extra funding for the training and development of local tourism-focused businesses to ensure the highest quality of service, and that operators have the skills they need to support the visitor economy. These measures should be made more accessible to smaller businesses, especially those in regional areas who may lack the resources to upskill internally.

Passenger Facilitation

Simplify visa processing and immigration clearance processes
Australia’s visa and immigration systems are complex and antiquated and need an overhaul to keep pace with industry changes. The processes in this area are well below international best practice, making it harder for visitors to travel to and around the country. A difficult or negative experience at the visa application stage can deter visitors from following through with a trip to Australia at all. Comprehensive reforms are needed to streamline the visa application process, including greater digitisation, a wider range of languages to communicate visa information, and more multiple-entry visas. Simplifying the visa process will reduce barriers to entry and encourage more tourists, especially from key markets like China, to visit and return to Australia.

Adopt technology and infrastructure for more seamless travel experiences
Consideration needs to be given to the processes that take place when entering Australia. To improve the travel experience for visitors, investments in modernising passenger facilitation systems are essential and need to be rolled out quickly. This includes digitising the Incoming Passenger Card and pre-filling it where possible, utilising ‘passenger on the move’ technology to expedite entry and exit processes, and upgrading smart gate systems at major hubs. These enhancements will improve efficiency, reduce delays, and create a more seamless experience for those arriving in Australia.

Sustainable Tourism

Develop Australia’s Sustainable Aviation Fuel industry to increase competition and forge a credible pathway to decarbonisation in the aviation industry
As Australia moves to meet its net-zero emissions goals for 2050, the tourism industry has a role to play, including hard to abate sectors like aviation, which is a significant contributor to emissions. We advocate for a renewed Government focus on developing a domestic Sustainable Aviation Fuel (SAF) industry, which will reduce the carbon footprint of air travel to and within the country. Australia must use our abundant natural resources to develop a strong industry, supported by government measures to see us become a global producer of SAF. The lack of an overarching strategy or approach to sustainable aviation is also being felt by the business sector, including the business events sector when being considered for bids. By creating tax credits and incentives for SAF producers, Australia can support the tourism industry’s sustainability efforts and better appeal to tourists who prioritise environmentally responsible destinations.

Incentivise sustainable practices for more businesses in the tourism sector
Many businesses in the visitor economy are keen to adopt sustainable practices but lack the funds and resources to do so. This is particularly pertinent to smaller businesses that are facing financial strain across the board. We advocate for the Government to provide more targeted support to businesses looking to enhance their sustainability credentials, including through grants, tax incentives and advice. This should focus on helping tourism businesses adopt low-carbon solutions, reduce energy consumption, and align with international sustainability standards. This will not only enhance Australia’s position as a sustainable destination, but will also future proof the industry against growing public sentiment towards sustainable practices. 

Workforce and Skills

Prioritise tourism and hospitality occupations in skilled migration programs
A strong tourism workforce, which includes the hospitality sector, is essential to the success of Australia’s visitor economy. However, labour shortages and industry skill gaps continue to hinder its growth. We advocate for travel, tourism, and hospitality jobs to be prioritised in Australia’s national migration stratgegy, including through the Working Holiday Maker (WHM) program and Skills In Demand visa stream. The WHM visa program should be expanded to include options for second and third year visas and wider age eligibility, particularly in regional areas where the largest workforce gaps exist. This will ensure Australia has the workforce capability needed to support the growing visitor economy, especially in tourism hotspots. 

Remove barriers to employment in tourism and hospitality for international students
Another important part of the tourism workforce is international students, who play a vital role in supporting the sector. While this is recognised across the board, restrictions on permitted working hours and high visa application fees limit students’ ability and desire to stay in Australia and participate in the workforce. The Government should reconsider current working hour caps for international students in the tourism sector, including hospitality workers, and provide more flexibility to tourism businesses that need to hire more staff and keep their doors open. Additionally, streamlining visa processes for international students will encourage more skilled workers to remain in the country, addressing tourism workforce shortages and benefiting the broader economy.