Contents
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Commencement
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Estimates Vote
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South Australian Tourism Commission, $66,625,000
Administered Items for the Department of Treasury and Finance, $4,305,351,000
Minister:
Hon. Z.L. Bettison, Minister for Tourism, Minister for Multicultural Affairs.
Departmental Advisers:
Ms E. Terry, Chief Executive, South Australian Tourism Commission.
Ms S. Rozokos, Chief Operating Officer, South Australian Tourism Commission.
Mr E. De Roos, Executive Director, Marketing, South Australian Tourism Commission.
Mr N. Jones, Executive Director, Destination Development, South Australian Tourism Commission.
Mr M. Radcliffe, Chief Executive Officer, Adelaide Venue Management Authority.
Ms M. Carrall, Chief Financial Officer, Adelaide Venue Management Authority.
Mr C. Burford, Executive Director, Strategic Communications, Adelaide Venue Management Authority.
Ms S. Heading, General Manager, Tourism Acquisition and Development, Adelaide Venue Management Authority.
The CHAIR: Welcome back to members of the committee. The portfolio we are going to examine is the South Australian Tourism Commission and the Adelaide Venue Management Authority. The minister appearing is the Minister for Tourism. I declare the proposed payments open for examination. I call on the minister to make a statement and to introduce her advisers. Then I will call on the lead speaker for the opposition to make a statement, if he wishes, or just ask questions. I inform members of the committee that we have had a mid-week ratings slump, unfortunately—both committees. Minister.
The Hon. Z.L. BETTISON: Can I introduce my advisers. Next to me is Stephanie Rozokos, Chief Operating Officer for the South Australian Tourism Commission. To my left are Emma Terry, CEO of the South Australian Tourism Commission, and Eric De Roos, Executive Director of Marketing. In our second row, we have Mia Carrall, CFO of the Adelaide Venue Management Authority, and Martin Radcliff, CEO of the Adelaide Venue Management Authority. In the third row, we have Nick Jones, Executive Director, Destination Development, South Australian Tourism Commission; Sally Heading, Acquisition and Development Manager of Major Events; and Chris Burford, Executive Director, Strategic Comms and Engagement.
The CHAIR: Go ahead minister. Are you going to make a statement?
The Hon. Z.L. BETTISON: Yes, I have a few words to share. We have been very pleased at how the tourism sector has continued to perform strongly. In many cases, this recovery is outpacing the rest of the nation. It is a key industry for our state and we support approximately 20,000 businesses and more than 40,000 jobs. By the year ending September 2023, our visitor economy smashed through the $10 billion mark for the very first time.
Obviously, this was always an aspiration for us. By 2030, we intended to get our visitor economy to $12.3 billion, so we are very ahead of that plan. The latest data shows that total visitor expenditure in SA was worth $10.1 billion. This is up about 20 per cent from pre-COVID levels. Particularly, we have seen international tourism come back more strongly and we have had a record high of $1.3 billion.
I particularly want to recognise the hard work of our tourism operators who have gone above and beyond to provide their unique South Australian products to local, interstate and overseas customers. It is an opportunity for me to recognise that trying to understand in business what the new normal is has been challenging. I just really want to and recognise that we went through COVID when we were severely restricted, particularly in relation to international, to then people discovering their own backyard and with a lot of people coming from interstate. Of course, traditionally, winter is a quieter month and how we deal with that. I want to recognise their hard work.
Obviously, events have been something that we are developing a great reputation for here, with our successful major events. I hear time and time again about the immersive way that we do events, particularly in the CBD. It is something that impresses time and time again. We showcase on the global stage the Santos Tour Down Under, WOMADelaide, the Fringe and Tasting Australia presented by RAA Travel. For the second year running, we delivered both the AFL Gather Round and the LIV Golf.
It was a special moment when we saw in April that Adelaide topped the hotel occupancy charts across 17 major cities in Australia and New Zealand—something that we have never achieved before. Of course, an absolute highlight was us presenting the CommBank Matildas as they took on China in the lead-up to the Paris Olympics. The tickets sold out so incredibly fast. What I absolutely loved about it was the young women and girls who attended; it was fantastic.
Coming up we have Illuminate Adelaide. I just talked about the Suncorp Super Netball Grand Final, but I am particularly excited about Chihuly in the Gardens in September. That will run for seven months. That will be a free event for people to attend during the daylight in the Botanic Gardens; a gift to the city, some might say. It will be an exceptional opportunity to see the best glass artist in the world with these large sculptures. We will run some ticketed events at night, but during the day it will be free. We are proud to support 30 events across our state in the last financial year through the Regional Event Fund as well.
Marketing, of course, is incredibly important, which is why we launched our Travel. Our Way. campaign. We debuted it during the AFL Grand Final broadcast. It talks a lot of iconic South Australian experiences regionally as well as here in Adelaide. Just recently, during the quieter winter months, we have launched the Winter. Our Way. campaign, expanding on that. We are promoting particularly unique winter experiences, like the cuttlefish on the Eyre Peninsula, something I got to do last year. It is something uniquely South Australian. The state budget announced an additional $20 million for marketing, so we are very excited about that next campaign.
I just want to touch briefly on some of the really important work around the Murray River communities and the River Revival Voucher program. We used a very similar voucher program to what we used during COVID, and also previously after those significant bushfires on Kangaroo Island and in the Adelaide Hills. The third and final round is currently underway.
Obviously, I have been delighted to announce the reinstatement of some of the airlines that flew here prior to COVID, particularly Emirates was a big announcement, and they will start flying here from 28 October. That will connect us to many hundreds of destinations throughout the world. The Southern Ocean Lodge reopened on KI last year, which was fantastic and, of course, the new Marriott hotel is about to open.
I was also pleased to announce the appointment of David Koch as the chair of the tourism commission, effective from 2 July. I particularly want to thank outgoing chair Andrew Bullock for his service to the SATC, particularly his time during the most difficult times during COVID, and also the participation in the ability for us to rebound in tourism as well.
Of course it is always good to talk about those exceptional times for our state. In October last year Adelaide was named Australia's coolest city by that The Wall Street Journal and Kangaroo Island was named as one of Lonely Planet's must-see global destinations for 2024. Just this month, Stokes Bay was named the world's second-best beach by Big 7 Travel. It has been quite a big year. Let me also thank the tourism commission for their dedication and their hard work.
The Hon. J.A.W. GARDNER: Thank you, minister, and thank you to the staff and advisers and officers of the tourism commission. I refer to Budget Paper 4, Volume 4, page 93. There is a key agency output that talks about engaging and communicating with key stakeholders to 'build the corporate brand and promote the value of the visitor economy to South Australia'. Is it under this basis that I understand the government told people not to call Adelaide 'Radelaide' or the 'City of Churches', and how did that go?
The Hon. Z.L. BETTISON: We do not mind what people call us, as long as they are coming to South Australia, and I think you have seen from my conversation that that has certainly been a success, and will continue to be so.
The Hon. J.A.W. GARDNER: As I understand it, the government told people that they were not to be referring to Adelaide as 'Radelaide' or the 'City of Churches'. On what basis was that done?
The Hon. Z.L. BETTISON: There was some communication that was sent to the partners, as we were, for the AFL. But we have made it very clear that that is not something that the state government is supporting. My key thing is that people are talking about us, and they have been talking about us more than they have for a decade, and that is how we will go on.
The Hon. J.A.W. GARDNER: In regard to the commitment that I understand the minister gave last year, that the government was not going to be pursuing influencer-led tourism anymore, can the minister confirm that that has been maintained as the policy this year? Have there been any expenses spent on influencer-type projects over the last 12 months?
The Hon. Z.L. BETTISON: We obviously will continue our PR strategy, as do all state tourism bodies, and so does Tourism Australia. There is no doubt at all that we took some time to reflect and focus on a much more traditional mix of PR activities.
The Hon. J.A.W. GARDNER: As I recall—and I cannot remember the exact term that was provided last year; the minister or otherwise the officers might recall—there is a traditional form of providing an opportunity for tourism operators to come to Adelaide or South Australia for free, and I think it was under that context that it was expanded to include influencers. Can the minister confirm that the government remains, as she was last year, of the view that we will not be using influencers and promoting them to come to South Australia and to put South Australia on their Instagram? Going forward, is that still the government's position?
The Hon. Z.L. BETTISON: I think I made it clear last year that we reflected, and we wanted to be more traditional, but when we think about our PR strategy we think about media famils, which is—
The Hon. J.A.W. GARDNER: Famils, that is the one.
The Hon. Z.L. BETTISON: —as old as time, generating positive coverage about South Australia. That is including traditional media outlets and publications. I think you are probably touching on the use of brand advocates, and we have been very clear about our focus about their relevance, audience reach and engagement, their diversity and storytelling capability. We very much look for a balance of that. Those traditional media famils is something that has been incredibly important for some of those great announcements about what we heard in New York and about Lonely Planet—that is how they happen—and that has been our area of focus.
The CHAIR: Member for Morialta, before you ask your next question can you tell us which line you are looking at?
The Hon. J.A.W. GARDNER: We are looking at 'Key agency outputs', engagement and communication with key stakeholders on page 93. In relation to famils, is the minister able to provide a breakdown of the expenditure on famils in the last 12 months, and budgeted for the next 12 months, and whether they are—however she likes to categorise them—traditional, non-traditional or whatever form she would like to use.
The Hon. Z.L. BETTISON: Sure. The budget allocation was $590,000 for famil costs.
The Hon. J.A.W. GARDNER: Is she able to provide a breakdown or are they all traditional famils?
The Hon. Z.L. BETTISON: That is both of those groups.
The Hon. J.A.W. GARDNER: How much for each?
The Hon. Z.L. BETTISON: I will have to take that on notice.
The Hon. J.A.W. GARDNER: Thank you. I turn to page 97, program summary for tourism events. In relation to intragovernment transfers on the income side, in last year's budget there was an allocation of $10 million; however, the estimated result reflects an increase of more than $47 million. The explanation of significant movements talks about a range of things, including a Major Events Fund for major event sponsorship and operations. Can I confirm that all of the increase from $10 million to $57 million that is identified in that top line is all from funding from the Major Events Fund under DPC, or are there other incomes as well?
The Hon. Z.L. BETTISON: Predominantly, that intragovernment transfer income of $47.2 million is from the Major Events Fund. Obviously, you have identified that there was a fluctuation there. It is associated with those sporting events through event sponsorship, including funding received from the Major Events Fund. As we know, that funding is to develop new and homegrown events, to grow our existing and owned and managed events, and secure major and international business events.
The Hon. J.A.W. GARDNER: Are we talking about Gather Round and LIV Golf, or are there other events as well?
The Hon. Z.L. BETTISON: There are significant events, as we said, including the AFL Gather Round, LIV Golf Adelaide, Harvest Rock, Illuminate Adelaide, the Beach Volleyball World Championships, the PGA Players Series, the Wheelchair Rugby National Championship, the 2024 UCI Track Nations Cup, WOMADelaide, Adelaide Festival (there was additional funding to bolster their program over the next three years), the Dale Chihuly event (or the exhibition that is coming up), the Adelaide Equestrian Festival, the Matildas' game (which was an absolute sellout), the British and Irish Lions in 2024, and the 2024 netball final.
The Hon. J.A.W. GARDNER: Are all of those allocations, given that they are intragovernment transfers from Major Events to Tourism, and then presumably expended as grants and subsidies from Tourism to those operators—can I clarify: is Major Events then the decision-maker in allocating that funding and not Tourism?
The Hon. Z.L. BETTISON: We provide significant advice to the Department of the Premier and Cabinet about those major events, and of course many times we are also then providing different roles as either a major sponsor (a sponsorship) or of course in other activities we are actually managing the event.
The Hon. J.A.W. GARDNER: Tourism is operating as a partner once the event is here and you are providing advice to Major Events, who is the decision-maker, and then the funding comes from Major Events to you to disburse to the organisations. Are there any examples where Tourism has provided advice to Major Events for projects that Tourism thinks should be funded, but Major Events has declined to do the funding?
The Hon. Z.L. BETTISON: Not that I am aware of within that situation. Obviously, we all have bright ideas—all of us—and we want the best for the state and we want great events that have great return on investments and what we do. It is commercial-in-confidence obviously because we get approached by lots of different groups for potential opportunities.
The Hon. J.A.W. GARDNER: Are there any examples of projects that Tourism's advice to DPC, to Major Events, was that the project should not be funded but Major Events has decided to proceed?
The Hon. Z.L. BETTISON: Not that I am aware of. We provide the facts and the analysis and that decision is made then through Major Events.
The Hon. J.A.W. GARDNER: The funding allocated for the 2024-25 budget in intragovernment transfers is $13.6 million, which is a fairly significant drop from the $57 million that was provided this year. This $13.6 million, by my reading, represents what your expectation is of Major Events or others coming into Tourism. Noting that the actuals for the last two years have been so much more than that, on what basis has this $13.6 million figure been arrived at?
The Hon. Z.L. BETTISON: There are fluctuations in income and expenditure through the intragovernment transfers year on year related to this event's sponsorship. Of course, as we are aware, the transfer of funds to the SATC comes from the Major Events Fund which sits within the Department of the Premier and Cabinet.
The purpose of this funding is to develop new homegrown events, grow our existing and managed events and, of course, secure those major national and international events. Funding is approved on a year-by-year basis and that is why we have significant fluctuations in income and expenditure through those intragovernment transfers.
The Hon. J.A.W. GARDNER: My understanding is that $57 million would reflect the expenditure that was undertaken in 2023-24, so if there were events that were scheduled for the years ahead, then presumably there is an understanding that that budget would still need to come. Is there therefore a reasonable expectation that we will see that $13.6 million grow substantially in order to fulfil—whether it's LIV Golf, or Gather Round or other things, or is it just that Major Events has not decided whether to use Tourism as the channel through which that funding will flow yet?
The Hon. Z.L. BETTISON: Yes.
The Hon. J.A.W. GARDNER: One imagines, assuming Tourism retains this role as the channel, then that will go up again. Is the minister able to outline what that $13.6 million comprises?
The Hon. Z.L. BETTISON: I will get some clear definitions. One of the key things to remember with these upcoming events is often the money is not just expended in one financial year. For example, I can think of the British and Irish Lions in 2025. There would have been payments under the previous government, I think, and then our government leading up to that, so it is not often just in one financial year, but I will get some details about it. The $13.6 million funding is predominantly from the Major Events Fund.
The Hon. J.A.W. GARDNER: We will have omnibus questions in a little while. There might be some detail there, so I will move on at the moment. The grants and subsidies on the same page—we are on page 97—identify a significant difference not just from the actuals. The actual was $46 million last year on a budget of $21 million, but I assume that that would be explained by the same explanation as we have just gone through on the income side. The budget for grants and subsidies has dropped from last year's budget of $21 million to, this year, $14 million. Is the minister able to explain why it appears that this is a cut of $7 million compared to last year's budget?
The Hon. Z.L. BETTISON: Just like my previous answer in regard to the intragovernment transfers, the same thing happens for grants and subsidies; there are some fluctuations there. Once again, it is to do with event sponsorship, including money received from major events, partially offset of course by a reallocation of expenses from grants and subsidies, supplies and services, and a carryover of major events sponsorship for 2023-24.
The Hon. J.A.W. GARDNER: Minister, forgive me if I missed something there, but I would imagine that the Major Events Fund decisions would explain the difference between the budget and the estimated result in each year. The figures I am talking about are the difference between the 2023-24 budget of $21 million and the 2024-25 budget of $14 million. Is the minister saying that that $21 million figure was inflated by carryover from the previous year? Is that the explanation, or is there actually a drop in the amount of partnership sports sponsorship and so forth that is anticipated in the 2024-25 year compared to the 2023-24 year? It is a drop in the budget of $7 million, so I would have thought that would have been of some significance.
The Hon. Z.L. BETTISON: It is what I said previously: there is a fluctuation in regard to the Major Events Fund money coming in. The carryover was less; it was $2.5 million.
The Hon. J.A.W. GARDNER: Does the minister care to take this opportunity to let the people of South Australia know how much we are spending on LIV Golf and the Gather Round?
The Hon. Z.L. BETTISON: That would be commercial-in-confidence, and also it is best directed to the Premier.
The Hon. J.A.W. GARDNER: I appreciate the Premier has a role, but it turns out that SA Tourism actually pays them, according to this budget line. But it is I think the law that the shadow minister for tourism or their representative has to ask that every year in the parliament.
The Hon. Z.L. BETTISON: As they did under the previous government.
The Hon. J.A.W. GARDNER: Yes—also the law. Can the minister outline which of the major events supported in 2023-24 will receive continued support in 2024-25 and going forward from there?
The Hon. Z.L. BETTISON: Are you asking in regard to the Major Events Fund, or are you asking in regard to our sponsorships and partnerships?
The Hon. J.A.W. GARDNER: Both.
The Hon. Z.L. BETTISON: As you may remember, in a previous question you asked what that intragovernment transfer related to. Obviously, the question that you are asking now is: from that, what continues into multiple years?
There is significant additional funding for the Tour Down Under; that is a key part of the additional money in the state budget. Obviously, we are very proud of being able to deliver women at the absolute elite level with the UCI, and that supports that development of that event. Of course, it is our 25th anniversary next year, so that support will go in this financial year and into the forward estimates for Tour Down Under.
The British and Irish Lions in 2025: that continues across the forward estimates for 2024-25 and 2025-26. Illuminate Adelaide has been an incredible addition to our winter program. I am particularly fond of the City Lights, the free program that invites South Australians and other visitors to enjoy that. What I particularly find with Illuminate is the opportunity to look at arts, technology and music and to inspire our younger people to be involved in those STEAM subjects to be attracted to the opportunity between coding but using creative arts as well. In the previous budget, we continued that funding for a further four years.
Volleyball Australia goes on for three more years. The 2024 netball final is over two periods. We have the PGA, the Players season; national rugby wheelchair championships over three financial years. WOMADelaide: we are very pleased to continue over another five years our relationship with WOMADelaide, which continues to be one of the biggest drawcards for interstate guests, which is absolutely fantastic that they do that. The Adelaide Festival, of course, to which we have applied some additional support; and the Dale Chihuly exhibition over two financial years will start at the end of September going through to April. Of course, we are doing some additional work with Football Australia. We also have Harvest Rock.
The Hon. J.A.W. GARDNER: Were there any new events in the last year that received funding for the first time?
The Hon. Z.L. BETTISON: You were asking which events were funded for the very first time in 2023-24?
The Hon. J.A.W. GARDNER: I was reflecting, minister. Illuminate is an excellent program, which we remember Steven Marshall very fondly for, and Tour Down Under is a legacy of Joan Hall during her time as tourism minister as well. I am very pleased that they continue to get support from you as minister and this government, as I assume they will for many years to come. I am just wondering if there are any new ones this year.
The Hon. Z.L. BETTISON: Particularly, I have talked already about the Dale Chihuly exhibition, which is the very first time in the Southern Hemisphere this exhibition will be held. Once again, you have this amazing connection between engineering and art. Dale Chihuly is seen as the most significant glass artist in the world. He has a significant international following. I think that will be an excellent addition. Also, the Matildas event is new this year, and it is the first time we have funded the British and Irish Lions, which came in 2023-24 for the first time.
The Hon. J.A.W. GARDNER: Is there a definition of what dollar value is required for something to be classified as a major event?
The Hon. Z.L. BETTISON: There is a definition in the Major Events Act, which is the responsibility of the Premier.
The Hon. J.A.W. GARDNER: We will move to Budget Paper 5, page 61, 'Building a South Australian destination brand'. This is $5 million of operating expenses. Can the minister provide a breakdown of how the $5 million will be spent? How much will be for interstate marketing and advertising? How much will be for international?
The Hon. Z.L. BETTISON: Can I talk a little bit about the 'place' brand? This is a significant amount of work that has been done with a very small team, not just with the South Australian Tourism Commission but with Brand SA as well as Trade and Investment. We think we have an opportunity here. We have people's attention; now we wish to keep it in what is a very competitive world.
So we have been doing some work in regard to this about the acceleration and adoption of a consumer awareness of a distinct South Australian destination brand. We want to lift our state's appeal and awareness both interstate and internationally, at the same time supporting our regions. This additional marketing funding will predominantly be paid directly to media activity to help generate that reach and the marketing messages and increase those digital leads.
Most importantly, we are looking to support the launch of a new destination brand. A key part of this is we have the South Australian logo that is used by more than 8,000 businesses. It has been really taken on and embraced. What we did not have was a proposition to go with it, and that is a key thing that we will be working on through that launch and through that destination. It is building our South Australian destination brand.
A key part of that is to be embraced not just for tourism. Obviously, for international students, we are competitive. We want to be going out there, being clear about what we do. To some extent, we are influenced by other very successful campaigns, including New Zealand's '100 per cent pure' and, more recently, in Tasmania, 'Come down for air', which has clarified the proposition and lifted the attraction, and that is our intention here.
The Hon. J.A.W. GARDNER: How much will be spent for interstate and international?
The Hon. Z.L. BETTISON: I am sorry?
The Hon. J.A.W. GARDNER: The question was about how much money for interstate—
The Hon. Z.L. BETTISON: That has not been determined at this point.
The Hon. J.A.W. GARDNER: Can the minister identify if influencers will be used as part of this?
The Hon. Z.L. BETTISON: As I identified before, we have PR activity with the media famils and, of course, these brand advocates. I suspect they will be part of the package but a very small part. As I indicated, the activity will be about increasing those digital leads to South Australian tourism operators. This is an opportunity. The momentum is now. We have people's attention. We want to keep it, and we will do that in the best way possible.
The Hon. J.A.W. GARDNER: Does this additional $5 million include funding for the Regional Tourism Alignment Initiative, or is that funded separately?
The Hon. Z.L. BETTISON: It is all together in that significant state budget increase. There is additional support for regional tourism alignment to bolster regional tourism, industry capability and product development. This has been a particular area of focus for myself. I think we have enormous capacities within the regions. We saw a significant change post COVID of where money in the dollar was spent in the visitor economy. While we have seen a little bit of a shave back—it is about 46¢ in the dollar now—what we want to do is build the regional structure, promoting the regions' product development and industry capability building.
That continues to be rolled out. We have taken quite a considerable amount of time to do consultation. We have been talking to local government and our regional tourism managers. There are unique ways that these regional tourism managers are supported while they are our local contact managers. I am very pleased to announce that money that goes to them directly has increased now to $80,000 allocated to each region for next year, so a significant increase, but we are also going to work on our long-term plans for review.
The Hon. J.A.W. GARDNER: How much funding has been allocated overall for the Regional Tourism Alignment Initiative in 2024-25?
The Hon. Z.L. BETTISON: As I indicated already, there has been a lift; there will be a lift in 2024-25, and that increases substantially the use of that money. When we consider how we support the regions obviously the visitor information centres are something that, although we do not run them, we support through $15,000. Each of the regions had their visitors guides, and we support that by storage and distribution as well. The other thing that we will be looking at, of course, is the two-year funding agreement for our regional tourism organisations, and that has been something that is important to do over those two years.
The Hon. J.A.W. GARDNER: Did I miss it somewhere in there—was there a dollar figure for the regional alignment initiative in 2024-25, a total figure? I heard 'uplift'.
The Hon. Z.L. BETTISON: There is additional money of $500,000. It is part of the state budget, yes.
The Hon. J.A.W. GARDNER: Just while we are on the broader branding issue and the use of influencers, has the department or SATC been contacted by the Australian Taxation Office regarding the influencers' tax liabilities since they announced a crackdown last year?
The Hon. Z.L. BETTISON: No.
The Hon. J.A.W. GARDNER: It probably would have been best asked in the previous line, so I will refer back to the previous line—let us go with grants and subsidies, if you like: was any effort made by SATC or the government or the minister to get Taylor Swift to perform in Adelaide rather than having all of our South Australians buying tickets to go to Sydney and Melbourne?
The Hon. Z.L. BETTISON: What is your reference in the—
The Hon. J.A.W. GARDNER: We have a budget allocation of $30 million in the 2023-24 budget, $27 million spent, and one of the key outputs for that is, of course, to grow domestic awareness of South Australia and international awareness. Under that output and with the vast resources the minister has at her disposal, did anyone get on the telephone to Taylor Swift's management team to encourage them to South Australia?
The Hon. Z.L. BETTISON: I think the best way to answer that is that at all times we are ambitious and aspirational, and when opportunities present at all times we are out there talking to people about what that potential might be. It is inappropriate given the commercial-in-confidence nature of these negotiations, but I am sure you ask this question as someone who wants to grow the state and who may be a Swifty, a fan. You are the father of young children who may find her someone they look up to, and of course she has had an incredibly successful career. I can assure you that at all times we are looking for those opportunities.
What we do see, however—and perhaps there are others that can answer this, particularly Martin who might be able to come through from an AVM perspective—is that the amount of movement for the staging etc., particularly with these very well-known artists, is considerable, and they tend to stick to the East Coast. But we are always ambitious.
The Hon. J.A.W. GARDNER: For the record I quite like Taylor Swift, but I consider myself more Swifty adjacent rather than a Swifty myself.
The Hon. Z.L. BETTISON: That is important.
Mr Brown interjecting:
The Hon. J.A.W. GARDNER: There are at least three members of my household who would consider themselves Swifties, and I am on the path. I might ask the member for Colton to do the omnibus—
The Hon. Z.L. BETTISON: Before we move on I just wanted to seek clarification. I am the minister responsible for the Major Events Act and, of course, that is often talked about—how we control the commercialisation and protect that act; however, the fund is the responsibility of the Premier. Just to clarify.
The Hon. J.A.W. GARDNER: I appreciate that, but there is a budget line here saying that once they have decided what to do with that fund it flows through tourism, and I think that is what the intragovernment transfers were.
The Hon. Z.L. BETTISON: That is correct.
The Hon. J.A.W. GARDNER: Can I suggest we go to the omnibus questions. The member for Colton has the set.
Mr COWDREY: Minister, the omnibus questions are:
1. For each department and agency reporting to the minister, how many executive appointments have been made since 1 July 2023 and what is the annual salary and total employment cost for each position?
2. For each department and agency reporting to the minister, how many executive positions have been abolished since 1 July 2023 and what was the annual salary and total employment cost for each position?
3. For each department and agency reporting to the minister, what has been the total cost of executive position terminations since 1 July 2023?
4. For each department and agency reporting to the minister, will the minister provide a breakdown of expenditure on consultants and contractors with a total estimated cost above $10,000 engaged since 1 July 2023, listing the name of the consultant, contractor or service supplier, the method of appointment, the reason for the engagement and the estimated total cost of the work?
5. For each department and agency reporting to the minister, will the minister provide an estimate of the total cost to be incurred in 2024-25 for consultants and contractors, and for each case in which a consultant or contractor has already been engaged at a total estimated cost above $10,000, the name of the consultant or contractor, the method of appointment, the reason for the engagement and the total estimated cost?
6. For each department or agency reporting to the minister, how many surplus employees are there in June 2024, and for each surplus employee, what is the title or classification of the position and the total annual employment cost?
7. For each department and agency reporting to the minister, what is the number of executive staff to be cut to meet the government's commitment to reduce spending on the employment of executive staff and, for each position to be cut, its classification, total remuneration cost and the date by which the position will be cut?
8. For each department and agency reporting to the minister:
What savings targets have been set for 2024-25 and each year of the forward estimates;
What is the estimated FTE impact of these measures?
9. For each department and agency reporting to the minister:
What was the actual FTE count at June 2024 and what is the projected actual FTE account for the end of each year of the forward estimates;
What is the budgeted total employment cost for each year of the forward estimates; and
How many targeted voluntary separation packages are estimated to be required to meet budget targets over the forward estimates and what is their estimated cost?
10. For each department and agency reporting to the minister, how much is budgeted to be spent on goods and services for 2024-25 and for each year of the forward estimates?
11. For each department and agency reporting to the minister, how many FTEs are budgeted to provide communication and promotion activities in 2024-25 and each year of the forward estimates and what is their estimated employment cost?
12. For each department and agency reporting to the minister, what is the total budgeted cost of government-paid advertising, including campaigns, across all mediums in 2024-25?
13. For each department and agency reporting to the minister, please provide for each individual investing expenditure project administered, the name, total estimated expenditure, actual expenditure incurred to June 2023 and budgeted expenditure for 2024-25, 2025-26 and 2026-27?
14. For each grant program or fund the minister is responsible for, please provide the following information for the 2024-25, 2025-26 and 2026-27 financial years:
Name of the program or fund;
The purpose of the program or fund;
Budgeted payments into the program or fund;
Budgeted expenditure from the program or fund; and
Details, including the value and beneficiary, or any commitments already made to be funded from the program or fund.
15. For each department and agency reporting to the minister:
Is the agency confident that you will meet your expenditure targets in 2024-25?
Have any budget decisions been made between the delivery of the budget on 6 June 2024 and today that might impact on the numbers presented in the budget papers which we are examining today?
Are you expecting any reallocations across your agencies' budget lines during 2024-25; if so, what is the nature of the reallocation?
16. For each department and agency reporting to the minister:
What South Australian businesses will be used in procurement for your agencies in 2024-25?
What percentage of total procurement spend for your agency does this represent?
How does this compare to last year?
17. What protocols and monitoring systems has the department implemented to ensure that the productivity, efficiency and quality of service delivery is maintained while employees work from home?
18. What percentage of your department's budget has been allocated for the management of remote work infrastructure, including digital tools, cybersecurity, and support services, and how does this compare with previous years?
19. How many procurements have been undertaken by the department this FY, how many have been awarded to interstate businesses? How many of those were signed off by the CE?
20. How many contractor invoices were paid by the department directly this FY? How many and what percentage were paid within 15 days, and how many and what percentage were paid outside of 15 days?
21. How many and what percentage of staff who undertake procurement activities have undertaken training on participation policies and local industry participants this FY?
The Hon. J.A.W. GARDNER: Is the minister happy to take those on notice?
The Hon. Z.L. BETTISON: I will take those on notice.
The Hon. J.A.W. GARDNER: Thank you very much. I go to page 94. There is a target, dot point 3: 'Increase cruise ship visits to South Australia and homeport itineraries to drive overnight stays, regional dispersal, and visitor expenditure to the state.' I understand that there has been an announcement recently that P&O Cruises Australia will cease operations next year and its flagship Pacific Explorer will be retired. What action has the minister and the government taken to fill the gap left by P&O's departure from the market?
The Hon. Z.L. BETTISON: Cruising has been incredibly successful for South Australia. In this last year, we had 122 ship visits. We have grown the sector by 48 per cent. In 2022-23, we had a record year of $215 million that was generated from cruise ships.
What is particularly exceptional about cruise ships is their ability to disperse around the state. During that time we had visits to Port Adelaide, which is the main terminal, to Kangaroo Island and Port Lincoln. We also have significant ship visits to expedition landing sites and anchorages in unique and remote coastal locations. They are much smaller ships as well. They go to Wallaroo, Robe and different places like that. It has been quite successful.
Obviously, across Australia and the Pacific it was disappointing news that Carnival made this decision to retire the P&O brand. As I understand it, they have actually owned P&O for quite some time, but they have made that change. We were really pleased when the Pacific Explorer home ported here in South Australia. That was quite significant because of the products that they buy here from our producers and it is worth a considerable amount of money.
We will continue to talk to Carnival. SATC has a very longstanding relationship with them and we continue to talk to them about different opportunities that this represents. Obviously, with the increasing cruise ship visits we have been getting quite a good reputation. Particularly Kangaroo Island is an incredible drawcard for those ships. What we would like to do, of course, is have the more international ships with a higher proportion of international passengers who spend more money and like to stay here for longer.
We have diversified the number of cruise lines and ships over this period of time, so we are focusing on those high-yield visitors on the luxury cruises. In this most recent season, for the first time we had the Royal Caribbean's Brilliance of the Seas, Ambassador's Ambience, AIDA Cruises, AIDAsol and Celebrity Cruises' Celebrity Edge. That was the first time we had one of those Celebrity Cruises align. Kangaroo Island welcomed for the first time the Royal Caribbean ship and Port Lincoln had Cunard's Queen Elizabeth for the first time ever.
It is my intention to have some deep conversations with these head office groups to talk to them about what we have. We have already been in contact with them quite extensively. This will have an impact across Australia and the Pacific. We do see that there are opportunities, given the recognition to us with the great drawcard of KI.
The Hon. J.A.W. GARDNER: Given the Pacific Explorer ship particularly engaged between Outer Harbor and Port Lincoln, my understanding is cruises planned beyond February 2025 are being cancelled and refunded. Has the minister had a chance to speak to Port Lincoln council, the Chamber of Commerce or tourism operators in Port Lincoln to discuss how they are going to fill this gap in their local market?
The Hon. Z.L. BETTISON: We are constantly in contact, particularly because Port Lincoln council provides the welcome program and therefore we have a long-term relationship with them. Every single season there are fluctuations in ship visits. Of course, on occasions when the weather is rough, a predicted visit is not able to happen. We recognise this will be a challenge. We recognise that P&O has been a great supporter here and we will continue to work with Carnival and other cruise lines to see what those opportunities are.
The Hon. J.A.W. GARDNER: Obviously, we appreciate the financial benefit of cruise ships to South Australia, which for very obvious reasons we did not have between 2020 and 2022. With this focus, and it has been identified as a target in the budget papers, are these relationships managed within SATC or by you as the minister? Is there a directorate within SATC focused on cruise ships? Who is responsible for managing this relationship?
The Hon. Z.L. BETTISON: Destination Development within the South Australian Tourism Commission. Of course, I am not afraid to pick up the phone when having those conversations. Obviously, Flinders Ports plays a very big role in this as well because that is the port all the cruise ships come to. The season will commence in October of this year, and in 2024-25 we are expecting 118 cruise ship visits, which are scheduled across 17 different cruise lines. This year will be very similar to the previous year. It is the following year that there may be some more challenges. I am pleased to say, from a regional point of view, that there is an estimated 40 visits to Port Adelaide, 10 visits to Port Lincoln and 30 visits to Kangaroo Island. We will also be hosting the Australia Cruise Association annual conference here in Adelaide in September 2024.
The Hon. J.A.W. GARDNER: What is the quantum of the budget that is allocated to this cruise strategy?
The Hon. Z.L. BETTISON: In 2024-25 the allocated budget is $621,503 for all cruise-related activity.
The CHAIR: The member for MacKillop.
Mr McBRIDE: My question to the minister is regarding Budget Paper 4, Volume 4, page 92. It quotes $27 million for tourism events and $33 million for tourism marketing. My question is: what proportion of that will be spent in the Limestone Coast and, going on, is there consideration in the budget to work collaboratively with the Department for Environment and Water to initiate a master plan for the Naracoorte Caves?
The Hon. Z.L. BETTISON: Thank you very much for your question, and it was only two weeks ago that you joined my regional visit across the whole of the Limestone Coast. Regional events is an area that has been supported for quite some time. Thirty events were supported over the last year, and there is a budget of $500,000 for that. We certainly know that the cost of running events have increased for everyone, whether it be a tourism event, a major event or, even in my other portfolio, a multicultural event; all events have increased. We continue to sponsor that, and we have just run around for those regional events that will be staged between September and August of the following year. Obviously we do it advance, so people know what they will be doing.
The Limestone Coast is incredibly important to us. It actually has this great unique selling point of its proximity to the Victorian border, and so, compared to other regions, it has this ability to pull particularly international tourists travelling the Great Ocean Road into the Limestone Coast. I was reminded during my trip of how many people go through the Limestone Coast to Kangaroo Island, and one of our key ambitions is for them to not just stay one night but stay two nights, particularly to increase the activities around that area. I think there is a great opportunity there.
Through the election campaign there was a commitment to increase the profile of the Limestone Coast, and a new campaign will promote the region and its marketing efforts. We will feature the area in key advertising campaigns, as well as include it in digital, social media, PR and cooperative campaigns. We have actually seen quite a bit of lift there.
Can I just say, we had a conversation about when we have major events here in Adelaide and the opportunity for regions to benefit from that, and particularly in the AFL Gather Round. The Mount Gambier council had a supportive campaign from the SATC, Before the Bounce. Taking on the opportunity of that travelling component, and 50 per cent of people who came to the Gather Round did drive to it, they had lots of different things—community activations, visits by former players, and I think different games—that happened.
What I heard from my regional trip is that the whole of the Limestone Coast would like to be included in those Before the Bounce programs, and not just Before the Bounce, but after the event as well. Gather Round this year was held in the middle of the Victorian school holidays, so we promoted travel before and after the Gather Round.
We were absolutely delighted to see the length of stay for people coming. It really shifted from those two nights to at least four nights for people coming, really making it quite a significant period to discover South Australia. Of course, what we want people to do is to look at our regions, and the Limestone Coast is a key part of that. All regions can be considered when we have such a high proportion of people with their eyes on South Australia—and not just their eyes, but are actually travelling here as well.
I will touch on another area. Although the Minister for Environment is responsible for the Naracoorte Caves, it is a huge catalyst for the area. In fact, it had 97,000 visitors just last year. What I heard from people there is they would like it to be a key area to display all positive things that are happening there, particularly in the arts community and, of course, the wine that the Coonawarra is very famous for in the Limestone Coast. Within that area we have the potential, and a master plan is, I think, due—probably the last master plan was some time ago—and I will continue to work with the relevant minister to see that happen.
Of course, we were really pleased in the SA budget to see Generations in Jazz. I know it is not your electorate, but it is in the area. We have a sponsorship agreement for that, but it also includes $720,000 to construct four permanent structured pavilions in Mount Gambier for that annual weekend jazz festival. I think there is a lot of potential for the regions. Someone has called it the five Cs—I am talking about craters and caves. Potentially, I think we could see it as a real drawcard for activities for people to participate in.
The Hon. J.A.W. GARDNER: We will go to page 95: the explanation of significant movements includes funding received from the Economic Recovery Fund for financial assistance packages to grow the South Australian visitor economy. Can the minister outline what support will be provided through the $2.5 million from the Economic Recovery Fund?
The Hon. Z.L. BETTISON: You are just asking about the current payments that are shown in the budget?
The Hon. J.A.W. GARDNER: Yes, the explanation of significant movements.
The Hon. Z.L. BETTISON: That is in regard to aviation marketing.
The Hon. J.A.W. GARDNER: In regard to—
The Hon. Z.L. BETTISON: Aviation marketing—sorry, aviation as a whole.
The Hon. J.A.W. GARDNER: So the Economic Recovery Fund moved $2.5 million to Tourism between last year's estimated result and this year's budget for aviation marketing; is that correct?
The Hon. Z.L. BETTISON: No, just marketing. It was also Destination Development. To clarify, these are financial assistance packages for our ambition to reinstate those airlines and attract new airlines.
The Hon. J.A.W. GARDNER: I am just trying to unpack what the minister has just said. These are packages to attract international airlines.
The Hon. Z.L. BETTISON: This is something that has always been used within government; this is not new at all.
The Hon. J.A.W. GARDNER: I am not disputing that, I am just trying to unpack what the $2.5 million was for. So when we move to the $2.5 million, it is from the Economic Recovery Fund. That is the bit that is troubling me.
The Hon. Z.L. BETTISON: Well, it is entirely about economic recovery. Aviation and direct aviation links are incredibly important, not just for tourism but for trade and investment and, of course, for international students as well. We have always been ambitious about recovering what we lost in COVID.
Just to clarify, the Economic Recovery Fund aims to assist business and industry in key areas to grow secure, well-paid jobs, improve productivity, increase exports and support innovative value-adding technologies in South Australia—so it is quite wide in what it does. We were really delighted when the Economic Recovery Fund in its first round included regional tourism projects as well, but it is very much about economic recovery post COVID.
The Hon. J.A.W. GARDNER: Just a follow-up from that—and I appreciate the member for Narungga has one—when you talked about the regional tourism projects, that was the previous year and not for this one; is that the way I take it?
The Hon. Z.L. BETTISON: Regional tourism is related to new money in the budget.
Mr ELLIS: I apologise; I have just walked in, so if you are repeating information, let me know and I will check the Hansard directly. I am looking at Budget Paper 4, Volume 4, page 94. The highlight for 2023-24 was the Recreational Fishing Tourism Strategy and increasing the contribution of the sector to $468 million. If you have not already, can you outline how you intend to increase the rec fishing contribution? Are we going to start charging them more in some way? How do we envisage their contribution increasing? Are there going to be more fishers on the water?
The Hon. Z.L. BETTISON: Thank you very much for your interest in this area. This was an election commitment. The Recreational Fishing Tourism Strategy was released in February 2024. We developed this in partnership with RecFish SA to grow that recreational fishing tourism. We are quite ambitious about that growth. In order to achieve the strategy, we talked with industry and had public consultations, meetings with government and industry stakeholders, public and industry surveys, and provided the opportunity for written feedback. It was co-authored and endorsed by the industry peak body, RecFish SA.
I think, particularly in the region that you represent, charter fishing has been an attractive tourism component. People come over specifically to go out with an operator to do charter fishing, but we know that people often enjoy coming out and doing a whole range of activities. We felt that it could be marketed in a better way, and that is obviously what the election commitment was around, to see it as a drawcard for people coming here to South Australia.
As we talked about before, we know that we have their attention. They are coming here for those catalyst events that we have put on. They are coming here because they want to get out and see our beautiful regions. We are still number one in food and fine, but we wanted to also be clear that there are other activities that you can do. If you are going out to Streaky Bay and having a beautiful time there, or maybe you are going out to Boston Bay on Eyre Peninsula, these are opportunities to understand how much fishing is part of the economy, which people are quite interested in. They want to taste and feel, but they also want to have that opportunity to go out on a boat and experience it themselves.
In fact, I have a great interest in agritourism and particularly aquatourism. We have seen how new product that comes in is really interesting to people. One of the areas that I would love to develop is the crayfish experience. This is something that was re-emphasised to me in the Limestone Coast. There are some barriers at the moment, according to some regulations. We are working out how we can work our way through them, particularly for the Chinese market, who loves to see the crayfish come out of the sea but would love to then see it being cooked and be able to eat it. We would love to be able to do that. Fishing, in many of its forms, and any of that connectivity are a key part of value-adding to what we have here in South Australia.
The CHAIR: The allotted time having expired, I declare the examination of the South Australian Tourism Commission and the Adelaide Venue Management Authority complete. Further examination of the proposed payments for the administered items for the Department of Treasury and Finance will continue after the break. Thank you to the minister and her advisers.
Sitting suspended from 11:18 to 11:30.