Mr BAIRD (12:18 PM) —It is my pleasure to rise today and support the Tourism Australia Bill 2004 and the associated bill. I congratulate those who have been involved in the preparation of the legislation: people from the Department of Industry, Tourism and Resources, and also the staff of the Minister for Small Business and Tourism—Chief of Staff Matt Hingerty, Tony Petkovic and all the people there who have worked so hard. I also congratulate Minister Joe Hockey, who has had the drive and determination to see these changes through.

It is very interesting that there has been total silence from the other side in terms of the initiatives they would take in the tourism area: what changes they would implement, how they would see the money spent, where they would find the money. It has taken this government to transform the whole of the industry sector into one which is now alive with opportunities, given the very significant increase in funding. Not only does the ATC get an average of $100 million a year but there is also this new grant of $235 million, which has been provided over a four-year period by the government and through the initiatives of Minister Joe Hockey. We really appreciate that and congratulate both him and his staff on that achievement.

There is no doubt that the tourism industry remains a very significant part of the Australian economy. It is, first and foremost, the largest employer in the country, employing some 600,000 people directly and another 350,000 indirectly. If we look at its contribution, the total spend is approximately $70 billion, with the major part being in relation to domestic tourism. Nevertheless, $17 billion is achieved in foreign exchange earnings through the tourism industry. That puts it right amongst the top money earners in our export markets. Tourism is actually No. 1 if we count the mineral industries on an individual basis; if we look at the minerals industry as a whole, tourism is No. 2. It is a very important and significant area of the national economy. Last year alone, we saw 4.7 million international visitors, who spent 117 million nights here. These international visitors spend, on average, $2,500 per person. With regard to domestic tourism, Australian residents took 73.6 million trips within Australia and spent $51 billion. Some 77 per cent of spending comes from the domestic sector. In 2002-03, tourism contributed some $32 billion to our gross domestic product. This figure is up $1 billion on the previous year and works out at 4.2 per cent of our GDP. This means that the tourism industry is important to the nation's economic success.

Why was this legislation necessary? Why was the white paper necessary? We did see a downturn in the numbers coming to Australia following the Olympics. If we look at the official figures from Australia's Tourism Facts and Figures at a Glance, they show that in the year 2000 we reached a high point of 4.9 million international visitors. That was a 10.6 per cent increase on previous years. That then dropped progressively until 2003—and of course we had September 11, the SARS problem and the Bali bombing coming into play. Last year there were 4.74 million visitors. Since September last year the numbers have been coming up progressively and obviously that is a response to some of the initiatives taken by the ATC and the expectation of further funding to promote international tourism.

There has been widespread discussion with the industry. The industry have been consulted at all levels. They have been enthusiastic about this process. They have been integral to the process and every sector of the tourism industry has provided significant input to this paper. It has been well received by both the government sector—that is, the various tourism authorities around Australia—and the private sector. This legislation consolidates the extra spend that we are going to have, which is going to mean a big increase in the number of visitors and will result in benefits throughout the economy, not only for the airlines and the major hotels but for the tour operators, the restaurants, the taxis and the hire cars. All of these things come into the tourism industry. I am very pleased to see the man who initiated this whole process, Mr Joe Hockey, coming into the chamber and I am sure we all wish to congratulate him on these great achievements.

This legislation means the merging of four significant bodies, including the Australian Tourist Commission, which is responsible for the international marketing of Australian tourism. It does a great job. Ken Boundy, who leads the organisation, has performed well in that role. The ATC is the largest and most involved organisation of the four. It is very well respected internationally and is regarded as one of the best tourism authorities in the world. The second body is See Australia, an initiative that was started as a result of promises made by the government in 1998. Its small amount of funding has grown significantly and we are now looking at $12 million a year for the See Australia program. The Bureau of Tourism Research, the BTR, is also being merged into the organisation, as is the Tourism Forecasting Council. These two organisations provide timely, significant data, with the Tourism Forecasting Council looking to the future and the Bureau of Tourism Research consolidating the overall information coming through from the private sector and government sources.

The funding is there—$235 million. The legislation also provides for financing from the private sector and the ability to obtain sponsorships from private organisations. It gives Tourism Australia the capacity to provide financial assistance to projects or organisations that are engaged in activities which further Australia's tourism objectives. Overall, this is a great initiative and one of which we can all be proud. It is going to lead to further jobs and further increases in visitor numbers to Australia. Throughout Australia we will see major beneficiaries, from small to large companies alike. It takes a minister of great determination to do this, and a great staff who provide the impetus. To them and to the department: thank you, and congratulations on a job well done.