HANSARD
SITTING CALENDAR
SEARCH
LIVE BROADCAST
Hansard Dynamic Subject Index
House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-07-04 Daily Xml
Contents
Xml

South Australian Tourism Commission, $65,738,000

Administered Items for the Department of Treasury and Finance, $3,557,414,000


Membership:

Ms Wortley substituted for Ms Hood.


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.

Ms H. Rasheed, Executive Director, Events SA.

Mr A. Kirchner, Chief Executive, Adelaide Venue Management Authority.

Ms M. Hannaford, Chief Governance Officer, Adelaide Venue Management Authority.


The CHAIR: Welcome back. The portfolio is the South Australian Tourism Commission and Adelaide Venue Management Authority. The minister appearing is the Minister for Tourism. I declare the proposed payments open for examination. I invite the minister to make a statement, if she wishes, and then also to introduce her advisers.

The Hon. Z.L. BETTISON: Thank you very much, Chair. I would like to introduce to the left of me in the front row Ms Emma Terry, Chief Executive of the South Australian Tourism Commission. To my far left is Hitaf Rasheed, Executive Director of Events SA, and to my right is Stephanie Rozokos, Chief Operating Officer for SATC. In our second row, from Adelaide Venue Management are Anthony Kirchner, Chief Executive; and Marie Hannaford, Chief Governance Officer. In the third row, from the South Australian Tourism Commission are Nick Jones, Executive Director of Destination Development, and Eric De Roos, Executive Director of Marketing. I just have a few words to start.

We went to the election with a commitment to building back our tourism and hospitality industry, and I was so pleased last week to announce an all-time record high of our visitor economy of $9.4 billion. I have a line that says that people have been talking more about South Australia in the last year than they have for a decade and, when I have been interstate to ministerial meetings and tourism events, we certainly have been noticed more than we have for quite some time. I want to thank the team at the South Australian Tourism Commission, and all our tourism operators throughout South Australia. It certainly was a very challenging time during COVID; many of them were hit incredibly hard, particularly those with an international outlook.

Then, of course, we saw South Australians enjoying their own backyard. There was a period of uncertainty when not a lot was happening and then, particularly in the regions, a lot was happening. We are looking to continue to build; we have an ambition to get to a $12.8 billion economy by 2030. It is something that is aspirational but attainable. I am very excited that this year Emma Terry came on and joined us as our chief executive officer.

The other point I want to touch base on is particularly in our area of river recovery. We saw the highest flood in a century impact our river regions: the Murray, Lakes and Coorong, and the Riverland regions. We have had a $4.6 million effort from the Tourism Commission to focus on marketing and, of course, our vouchers. I was very pleased this morning to talk about the impact of those River Revival Vouchers. The impact for round 1 was $3.1 million. That is, of course, about the bookings and the direct and indirect spend that we saw there as well.

We saw the immediate economic impact of the use of the vouchers, and we saw incredible awareness increase there as well. When we did a survey of more than 1,100 voucher holders, more than 70 per cent said they had not intended to book a holiday but, once getting the voucher, they then made the effort to book and do that. Also, more than 50 per cent were not aware of the operator before the voucher program happened, so we were really pleased with that outcome.

Of course, now we are in the second round of bookings and already $2 million has been booked. More than 2,200 vouchers have been utilised. But, of course, we are encouraging people that they must do their booking by 25 July. If they do not use it, they are going to lose it, and then we will have a second chance round, and people will know on 27 July if they have that. We did learn a lot from that first round, including to have a much longer time for people to book the travel.

I was also very pleased today to announce that Illuminate will hold their regional exhibition called River Lights at Mannum. That will be between 4 and 13 August, so we are going to have light, tech, music, creativity. We are really going to ask South Australians to take their time to visit Mannum, and to really enjoy that. We know that they were impacted severely during the flood, and this is one of the other ways that the Tourism Commission and the Malinauskas Labor government is supporting that region.

The Hon. J.A.W. GARDNER: We will go straight to questions. I might start with the omnibus questions:

1. For each department and agency reporting to the minister, how many executive appointments have been made since 1 July 2022 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 2022 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 2022?

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 2022, 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 2023-24 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 and agency reporting to the minister, will the minister advise whether it met the 1.7 per cent efficiency dividend for 2022-23 to which the government committed and, if so, how was the saving achieved?

7. For each department or agency reporting to the minister, how many surplus employees are there in June 2023, and for each surplus employee what is the title or classification of the position and the total annual employment cost?

8. 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?

9. For each department and agency reporting to the minister:

What savings targets have been set for 2023-24 and each year of the forward estimates; and

What is the estimated FTE impact of these measures?

10. For each department and agency reporting to the minister, will the minister advise what share it is receiving of the $1.5 billion the government proposes to use over four years of uncommitted capital reserves held in the budget at the time it took office and the purpose for which this funding is being used in each case?

11. For each department and agency reporting to the minister:

What was the actual FTE count at June 2023 and what is the projected actual FTE count 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?

12. For each department and agency reporting to the minister, how much is budgeted to be spent on goods and services for 2023-24 and for each year of the forward estimates?

13. For each department and agency reporting to the minister, how many FTEs are budgeted to provide communication and promotion activities in 2023-24 and each year of the forward estimates and what is their estimated employment cost?

14. 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 2023-24?

15. 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 2023-24, 2024-25 and 2025-26?

16. For each grant program or fund the minister is responsible for, please provide the following information for the 2023-24, 2024-25 and 2025-26 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.

17. For each department and agency reporting to the minister:

Is the agency confident that you will meet your expenditure targets in 2023-24;

Have any budget decisions been made between the delivery of the budget on 15 June 2023 and today that might impact on the numbers presented in the budget papers which we are examining today; and

Are you expecting any reallocations across your agency's budget lines during 2023-24, if so, what would be the nature of this reallocation?

18. For each department and agency reporting to the minister:

What South Australian businesses will be used in procurement for your agency in 2023-24;

What percentage of total procurement spend for your agency does this represent; and

How does this compare to last year?

19. 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?

20. 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?

21. How many procurements have been undertaken by the department this FY, how many have been awarded to interstate businesses, and how many of those were signed off by the chief executive?

22. 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?

23. How many and what percentage of staff who undertake procurement activities have undertaken training on participation policies and local industry participants this FY?

Minister, will you be good enough to take those on notice for us?

The Hon. Z.L. BETTISON: I will take those on notice.

The CHAIR: I thought the minister was answering now.

The Hon. Z.L. BETTISON: I can give it a go. Do you want to read it again?

The Hon. J.A.W. GARDNER: I have seen that done once before, sir; it was not enjoyable for anyone involved.

The CHAIR: Are you going to point us to a line in the budget paper?

The Hon. J.A.W. GARDNER: Yes, I am now. For tourism, could we go to Budget Paper 3, chapter 2, page 25. We are looking at expenditure:

Tourism—projected to decrease by $67.7 million primarily due to higher expenditure in 2022-23 for new and existing leisure events to further drive economic development and visitation to the state as economies open up following the COVID-19 pandemic.

Can the minister update us on any operating efficiencies that have been achieved since 1 July 2022, if any?

The Hon. Z.L. BETTISON: Thank you for your question. The SATC was required to find savings in 2022-23 of $4.1 million through operating efficiencies and consolidation across the agency. The SATC achieved these savings through the cessation of funding that was allocated to one of our projects that occurred in 2021-22 and will not continue in 2022-23, including the Great State Voucher stimulus measures, the Working Holiday Maker campaign and SATC's new contracts and procurement CRM. There was a reduction in event sponsorship for various events and the implementation of corporate services and operational efficiencies.

The Hon. J.A.W. GARDNER: In relation to that, I think one of the efficiencies was discontinuing the procurement of a CRM. What is SATC doing instead of proceeding with that procurement—just using the old system forever more?

The Hon. Z.L. BETTISON: They have paid for the system and they are using it.

The Hon. J.A.W. GARDNER: So it is discontinued because it is paid for.

The Hon. Z.L. BETTISON: Yes.

The Hon. J.A.W. GARDNER: Well, that is good news.

The Hon. Z.L. BETTISON: It is good to pay your bills.

The Hon. J.A.W. GARDNER: Can the minister advise whether there are any operating efficiencies that the tourism portfolio is still required to identify to meet its budget task?

The Hon. Z.L. BETTISON: The savings target for 2023-24 is 0.8 of a million, comprising efficiency dividends from previous years. Those savings will be achieved through the cessation of funding that was allocated to one of our projects that occurred in 2022-23 and will not occur in 2023-24, and through implementing corporate services and operational efficiencies.

The Hon. J.A.W. GARDNER: Have the specific operational efficiencies within corporate services been identified and, if so, what are they?

The Hon. Z.L. BETTISON: As I understand and have been advised, to look at those efficiencies there has been a recontracting of the office building that SATC are in and a new stationery contract, which has reduced some costs.

The Hon. J.A.W. GARDNER: How much of the savings burden is being borne through these office savings in the lease and the stationery?

The Hon. Z.L. BETTISON: The savings is only $800,000 so I think that is the majority of it. By the end of this session, we will find out any other. I can give that to you before the end of the session.

The Hon. J.A.W. GARDNER: Perhaps then I can wrap in the other part of my question, which was going to be: what are the one-off projects that are ceasing that are creating the other part of the savings task?

The Hon. Z.L. BETTISON: We will provide that to you by the end of the session.

The Hon. J.A.W. GARDNER: Is the minister able to identify what operating efficiencies are required in the future years of the forward estimates, beyond this year?

The Hon. Z.L. BETTISON: There are no new savings as part of the 2023-24 budget, so at this point there is no need to look at it in the forward estimates.

The Hon. J.A.W. GARDNER: And the savings that have been required by a previous budget or budgets have now all been achieved and so going forward the Tourism Commission is on an even keel, if you like?

The Hon. Z.L. BETTISON: Yes. As I have articulated, those savings targets have been reached.

The Hon. J.A.W. GARDNER: I refer you to Budget Paper 4, Volume 4, page 92, the workforce summary, if we can use that. I notice some variance from the 2021-22 actual to the 2022-23 estimated result and then some variance in the other direction for the 2023-24 budget. Is the minister able to explain why we have gone up 31 and then down 15 over the last two years?

The Hon. Z.L. BETTISON: The SATC's FTE count as of 30 June was 132.7, and that is within the current year FTE cap of 141.3. The increase in this 2022-23 financial year is due to a combination of vacancies filled, additional resourcing required for the AFL Gather Round and LIV Golf, and an extra budget provided for marketing, which included funding extra FTEs.

The SATC's FTE cap reduces from 141.3 in 2022-23 to 126 in 2023-24 due to FTEs associated with specifically funded initiatives and FTEs attached to funding received in the 2022-23 from the Major Events Fund, which sits within the Department of the Premier and Cabinet. That has been to fund new events.

It is anticipated that the 2023-24 FTE cap will increase with funding received from the Major Events Fund this financial year. Therefore, there are no planned FTE reductions. The SATC will work to be within the 2023-24 FTE cap of 126. The SATC has achieved all previous FTE savings targets and will implement a workforce strategy to realise any future FTE savings, if the need should arise.

The Hon. J.A.W. GARDNER: Can I clarify what I took from the answer in relation to the 2022-23 budgeted figure of 126—

The Hon. Z.L. BETTISON: 2023-24.

The Hon. J.A.W. GARDNER: Yes, sorry, you are correct. You are anticipating that that may increase with funding coming over from major events to support staff that are engaged in supporting LIV Gold and Gather Round, is that the—

The Hon. Z.L. BETTISON: And all other new events that will come on board.

The Hon. J.A.W. GARDNER: And any other new events that may come on board. Can the minister advise then, in relation to 2022-23, from this source of funds, is that just staff for Gather Round and LIV Golf, or were there any other events that provided this increase?

The Hon. Z.L. BETTISON: As I already said, we did have some additional for marketing. As you may recall, we went to the election with a $45 million increase in the South Australian Tourism Commission because we wanted to focus on building back our tourism economy, remembering that its all-time low was $4.4 billion in the middle of COVID. When we came to government, it was $6.1 billion. We really wanted to maximise that opportunity, so there were some additional FTEs with marketing as well.

The Hon. J.A.W. GARDNER: In relation to the staff who were taken on to support Gather Round and LIV Golf, how many staff are we talking about and what were their positions?

The Hon. Z.L. BETTISON: Obviously we do events all year round, and while we do that one of the key things we wanted to do was build out our calendar of events. As I announced, the $9.4 billion visitor economy is 23 major events that we now have, but most importantly they are balanced throughout the year.

We love Mad March. We have always loved the Fringe, the Festival, WOMAD and, of course, the Tour Down Under and the tennis, but what we really wanted to do was see events throughout the whole year, like Illuminate, which is coming on for its third iteration right now. These are things that have balanced it out, along with Harvest Rock and things like that, but of course we were very thrilled to get both the AFL Gather Round and the LIV Golf. It is very competitive to get those opportunities, but we went out and had them.

These are marketing and event delivery roles; they are not just for AFL and LIV. We also had additional people for the State of Origin, which was an amazing night that we had people in here for, and of course we have the FIFA Women's World Cup. We are in charge of delivering the FIFA Fan Festival. I was just looking out from the Balcony Room and the tents are going up already. It is very exciting.

The eyes of the world will be on us. I think it is the third largest event in the world. There is the Olympics, FIFA Men's and FIFA Women's. It is a very exciting time to have that. That is going to operate for 21 days. Throughout the year, we have people come on in this events area. What we try to do is keep them on for as long as possible and therefore they get the experience that they can be as helpful as possible. Our organisational chart is on our corporate site, and I think they are under those marketing Events SA roles. It is the same people across all those roles, so it is not specific.

The Hon. J.A.W. GARDNER: How many FTEs were funded by the transfer of funds from the Major Events Fund, then?

The Hon. Z.L. BETTISON: My understanding is approximately five FTEs, but of course, as I have reiterated, they work on more than one event.

The Hon. J.A.W. GARDNER: In relation to, again, the workforce, we spoke in Multicultural Affairs about staff working from home during COVID and the desire of governments successive to return people to the city. Does SA Tourism have a clear plan and time line in place for staff who are working from home to return back to the office, if any still are? If so, are you able to table that plan or advise us what it is?

The Hon. Z.L. BETTISON: The Tourism Commission does have flexible working arrangements as required. Of course, that is not just people who work full-time from home but part-time people as well, but the majority of staff work most of their days in the office.

The Hon. J.A.W. GARDNER: When you say the majority of staff, are you able to be a bit more specific? If there are 126 or 132 staff, how many of them on any given day will be working from home?

The Hon. Z.L. BETTISON: I will need to take that specifically on notice.

The Hon. J.A.W. GARDNER: Can the minister identify whether this is due to flexible working relationships because of people's circumstances, or a hangover, if you like, from the pandemic?

The Hon. Z.L. BETTISON: I think the Tourism Commission is a great attractor of talent and people are very keen to work for the Tourism Commission. I also think they are a very modern employer. I understand flexible working arrangements have been around for quite some time. Just as we said before, what we have seen in the past is—and I know when the Tour Down Under was getting in full flight for the first time back after three years—is that we had some additional people working in the events team, so we do have people coming on and off. Obviously our preference is to have them there for the majority of the year, which has been our focus in building up that calendar of events across the year.

The Hon. J.A.W. GARDNER: The minister has taken on notice the numbers of staff working from home. I am just seeking any analysis done on whether that has changed in the last year or will in the year ahead.

The Hon. Z.L. BETTISON: As advised to me, this is not related to COVID or a hangover from COVID. To be an employer of choice is to look at individual circumstance. Obviously, we are looking for very talented individuals at the top of their fields to work for us and, as I understand it, that is something that has been a key part of that for many years.

The Hon. J.A.W. GARDNER: I am pleased to hear it. On page 92, specifically to the Tourism Development program line, there is again a variance between years. The 2022-23 budget of $17.414 million was either a very accurate budget with the estimated result, or potentially you might have an actual figure that is an update on that estimated result. Either side of that, there was a significant increase from 2021-22 and there is a significant decrease to 2023-24. Is the minister able to give us some clarity over what has provoked these changes?

The Hon. Z.L. BETTISON: It was a very close budget and estimated result. The decrease of $11.2 million in net cost of providing services in 2023-24 is predominantly due to payments made to the South Australian Government Financing Authority in 2022-23, associated with the Tourism Industry Development Fund. The fund provided $20 million over two years to stimulate private sector investment in new and improved accommodation, and the development of quality tourism products and experiences across regional SA. The increase of $14.4 million in the net cost of services in 2021-22 to 2022-23 is also predominantly due to those payments to the financing authority, as I have talked about.

There was also an allocation in 2022-23 to provide additional funding to the Tourism Industry Council of South Australia for the tourism industry capability building program, which includes workshops and one-to-one business coaching, as well as a program to encourage young people to consider a career in tourism. That was something that was an election commitment and something we had spoken to TiCSA about. We also announced the allocation of funding to support a new grant program in nature-based tourism activity.

I will just touch on the Tourism Industry Development Fund because it was quite a significant fund, and I recognise that it was something that the previous government came out with as an economic stimulus. There were 114 projects across all 11 tourism regions. What we have seen is a delay to some of those projects running out, and there are 18 remaining projects that will be completed in this financial year. Even though that money has decreased, we have actually seen over three financial years the money that has come down.

With those remaining projects, there are challenges due to building materials shortages and trade availability. We have two projects remaining in the Adelaide Hills, five in the Barossa, one in Clare Valley, two on Eyre Peninsula, one on Fleurieu Peninsula, two in Flinders Ranges and outback, two on Kangaroo Island, one on the Limestone Coast, one in the Murray River, Lakes and Coorong, and one in the Riverland. There are still two remaining. I think we expect them to be completed this financial year. We will expect another payment this financial year.

The Hon. J.A.W. GARDNER: I thank you for that. The Tourism Industry Development Fund and the Tourism Industry Council (TiCSA)—

The Hon. Z.L. BETTISON: Tourism Industry Council of South Australia.

The Hon. J.A.W. GARDNER: Those two programs having been one-off programs, if you like, coming to an end—

The Hon. Z.L. BETTISON: No, they are four-year programs.

The Hon. J.A.W. GARDNER: Those two programs having less money in 2023-24 than they did in 2022-23, they are the only things that have ended or are being reduced to explain this drop? There are no other divisions or branches in the agency or the department that have had any cuts?

The Hon. Z.L. BETTISON: The vast majority of the drop is, of course, the Tourism Industry Development Fund, which has come through. Let's talk about the Tourism Industry Council of South Australia because this is quite important because probably the single biggest question we get is about skills and about jobs, particularly in regional areas.

The most exciting statistic I think is this rebalancing of where our visitor economy comes from; 48¢ in every dollar is now in our regional areas. I may have mentioned it once or twice in question time. This is really exciting for our regions. We saw a lot of South Australians get out there. What we know is that getting skills, getting people to the regions—it is also one of the reasons we have put out the regional housing authority because housing is a challenge to that, not just for government services but for tourism as well.

Our funding agreement with the Tourism Industry Council runs for four financial years; it started last financial year. The Business Capabilities Program did an incredibly good job during COVID. They proved to be very agile, providing advice and also these sessions for businesses when they needed to do it. This will provide industry capability workshops, including one-to-one business coaching to raise standards and quality. They also provide workshops all over South Australia. They held 35 workshops last financial year, so they are quite active in the regions. The Careers in Tourism program is also something they have worked on, video targeting school leavers and digital assets in careers and tourism.

The one area I particularly would like to mention, which I think is incredibly important, is a cultural development program that delivered two forums to investigate the establishment of the South Australian Aboriginal Tourism Operators Council (SAATOC). It is going to take some time for us to reach the achievements of WAITOC in Western Australia, which I think has been running for more than 20 years. It is our most significant unique selling point for a destination as a nation.

When I attend those national ministers meetings of tourism, we are in competition with the world—Canada, New Zealand, US, UK—but our unique selling point is the oldest living culture here. Obviously, we have been talking about our Voice to the state parliament and we are having a big national conversation. I think the opportunity to build depth and capacity in our Aboriginal tourism operators is incredibly important. This is having a voice. It will be something we will be supporting over four years, and I look forward to talking to the parliament and South Australians about that development.

The Hon. J.A.W. GARDNER: If we go down a line to tourism events, there is again variance between three years: $36.7 million to $39.5 million. Before I go there, can I ask if you have the actual figure for the previous line, the tourism development 2022-23 estimated result being exactly the same as the budget result? I would be interested if you have the actual or otherwise take it on notice. I would appreciate that.

The Hon. Z.L. BETTISON: We do not actually have that figure yet because we are just wrapping up the final thing. Our statements are due to the Auditor-General at the end of July, so that is when it will be available. I hear your curiosity—

The Hon. J.A.W. GARDNER: 'Twill be what 'twill be.

The Hon. Z.L. BETTISON: Okay, let's leave that one.

The Hon. J.A.W. GARDNER: Alright, we will move on, as I started to. For tourism events, let's say that the budget is accurate: $36 million in 2021-22, $39 million in 2022-23 and down to $30  million in 2023-24. Again, can the minister explain the reason for the variance—up $3 million, down $9 million?

The Hon. Z.L. BETTISON: The decrease of $8.7 million in net cost of providing services is predominantly due to the expenditure incurred in 2022-23 on a range of new homegrown events and growth of our existing owned and managed events. SATC received funding in 2022-23 from the Major Events Fund, which sits within the Department of the Premier and Cabinet. The purpose of this funding is for developing these new homegrown events, growing those existing owned events and managed events and securing major and international business events.

The increase of $2.8 million in net cost of providing services in 2022-23 is predominantly due to the return of the UCI World Tour Santos Tour Down Under after a three-year absence due to the impacts of COVID-19. Can I just say—and I would like to thank the team—it was an excellent comeback in its traditional format. It had a more than $66.5 million economic impact and it has the eyes of the world on us. I was really, really touched when Stuart, our race director, made the decision to start one of the races from the river regions. It will be starting from Murray Bridge. Having that attention means that we have not taken our eyes off the river, and we continue to do so.

The Hon. J.A.W. GARDNER: In relation to the impact of major events funding coming in that has increased between 2021-22 to 2022-23, can you give us some information about why there is an $8½ million reduction from 2022-23 to 2023-24?

The Hon. Z.L. BETTISON: I just articulated that.

The Hon. J.A.W. GARDNER: Are we expecting any further funding during the 2023-24 year, or is this it?

The Hon. Z.L. BETTISON: We would expect more funding to come in.

The Hon. J.A.W. GARDNER: If we go down to tourism marketing, again can you explain the variances?

The Hon. Z.L. BETTISON: Perhaps I might start by saying that obviously there was an additional $15 million in 2022-23. That was incredibly strategic from our point of view. We wanted to get back out there, building our tourism and visitor economy. It is a highly competitive field. Everyone was feeling exactly the same way we were, which is we want to get out there and build back up. There is a decrease of $13.8 million in net cost of providing services. That is primarily due to the additional marketing funding that I spoke about. Of course, our focus was about South Australia as a tourism destination to help us compete with other markets. This was particularly as we all opened up post COVID-19.

As I said, it was part of this $45 million over the four years through to 2025-26 to boost tourism marketing. The investment included $15 million in 2022-23 to provide additional support to tourism businesses as the state emerges from COVID, and $10 million per annum across the forward estimates.

The increase of $1 million in net cost of providing services is associated with the additional funding in 2022-23 for the River Revival Voucher program. As I said, that was a significant program of just the vouchers and marketing, but it is part of our state government's River Murray tourism recovery plan. It was aiming to stimulate visitation and expenditure in the communities hit hard by the River Murray flood event.

The Hon. J.A.W. GARDNER: Are there any programs or services or units within the department that have seen reductions, other than the drop from the high point in terms of the $15 million and the River Revival Vouchers being predominantly, again, in that 2022-23 year? Obviously those two things have seen a drop to 2023-24, and it is a substantial drop. Are there any other programs or services that have been diminished or cut?

The Hon. Z.L. BETTISON: That additional money for marketing was utilised across the board. I think you are asking if there was a specific program that maybe will not continue. What it did do was:

contribute to our strategic plans to grow our destination brand;

increase our paid reach and share of voice in domestic markets;

help us increase our investment in cooperative partnership marketing efforts to generate bookings;

contribute to the investment in key PR campaigns that help generate publicity for the state;

increase the Tourism Commission's investment in digital performance marketing to help drive leads to South Australian operators;

contribute to marketing of events in South Australia to drive attendance and increase visitation to the state; and

contribute to rebuilding our marketing efforts in selected global markets, targeting the higher value travellers and working holiday-makers.

Across the board, I think you are asking if there was a specific program that would not be continuing?

The Hon. J.A.W. GARDNER: Other than the drops that were described earlier.

The Hon. Z.L. BETTISON: Yes, and what I am saying is that there was a lift across the board. That $10 million is in appropriations going forward, but we obviously saw a high and it is this return to pre-COVID levels. I am very pleased at what we have been able to do with that additional 15. They have spent it all, I can tell you—not a cent left. We used the opportunity to really go out there, go hard and, as I said, people are talking about us—in a good way.

The Hon. J.A.W. GARDNER: The eyes of the world. In Budget Paper 4, Volume 4, page 93, key agency outputs, one of them includes improving perceptions and attitudes towards South Australia as a desirable tourism destination. There may be other budget lines on the previous page we could also use. Particularly in terms of improving perceptions, does the minister care to reflect on whether the Sam Smith concert has helped to improve the perceptions and attitudes towards South Australia as a desirable tourism destination?

The Hon. Z.L. BETTISON: I think the Sam Smith concert is one of many different activities we have done. I think probably the major events have been the ones that have really turned people's heads the most. As I have spoken about many times, we have to look at things for different age groups and different communities, as in interstate tourists, international tourists, as well. I think that there is a diversity of responses. Not everyone loves football; not everyone loves rugby; not everyone loves the lycra that comes with the Tour Down Under—but this is why we have a diversity of events.

You talk about something that was a really unique opportunity that was presented to us. We took that opportunity. I think it is one of many things that we have gone out there with, and that is what we have been able to do these past 12 months particularly. We have come out of the blocks really, really hard and I think that we are perceived as a desirable tourism destination.

The Hon. J.A.W. GARDNER: We could spend some time asking about budget, but we have done that before, so I might move on to my next topic, which is the same budget line: 'improve perceptions and attitudes towards South Australia as a desirable tourism destination'. Does the minister care to reflect on the TikTok camp where influencers were describing South Australia as 'the most boring state' and 'disrupting the paradigms', or whatever the phrase was? Does that help improve perceptions and attitudes towards South Australia as a desirable tourism destination?

The Hon. Z.L. BETTISON: I think the rationale of using TikTok as a social media platform was because it had 1.6 billion global users as at the end of 2022. It was seen at the time as particularly reaching out to that demographic of 18 to 34 year olds. I am not a TikTok follower myself, but that might be dating me—

The Hon. J.A.W. GARDNER: Well, you are not allowed to. It cannot be on your phone.

The Hon. Z.L. BETTISON: —but I understand it is a juxtaposition of a comment and then 'shame' that is not true. I think that was the aim to do that at that time.

The Hon. J.A.W. GARDNER: How do you think it went?

The Hon. Z.L. BETTISON: I think I have spoken about this before to say that we have tried different things. We have gone out and done them, but our focus will be more on those traditional media. It is not that we will not be using any of these new forms of media, but I think our focus will be more focused on that. Of course, it is an interesting statistic that less than 2 per cent of our marketing budget is in this kind of new media. I think former Minister Ridgway said that his was about 3 per cent, so we have already seen a change in that area.

The Hon. J.A.W. GARDNER: If the minister is happy to give us that figure of less than 2 per cent of the marketing budget, the marketing budget having been $44 million last year, does that mean the minister is confirming that it was $800,000? Sorry, that could be $900,000; it was $44 million.

The Hon. Z.L. BETTISON: I think you are doing maths on the run. I will endeavour to—

The Hon. J.A.W. GARDNER: I would be very pleased to have the accurate figure, minister. If you would like to correct my maths, I would be very pleased to have the real figure.

The Hon. Z.L. BETTISON: It was not my intention to correct your figure. I think that is the figure I have for that. I cannot confirm to you that that equates to the figure you have presented to me, but we will endeavour to give you an answer by the end of the session.

The Hon. J.A.W. GARDNER: Is that 2 per cent figure, or $880,000 or whatever it is exactly, in relation to the TikTok influencer camp and any other particular programs as well as that camp?

The Hon. Z.L. BETTISON: I am sorry; you will have to repeat.

The Hon. J.A.W. GARDNER: Can the minister clarify that the figure of 2 per cent that she used in relation to new media included the TikTok influencer camp? I invite her to identify what other programs or offerings that 2 per cent figure, or $880,000, paid for.

The Hon. Z.L. BETTISON: As I understand it, for the TikTok campaign, that was 0.2 per cent of the total marketing budget. It was 0.2 per cent for that TikTok campaign. You were asking about—

The Hon. J.A.W. GARDNER: So $88,000?

The Hon. Z.L. BETTISON: I will get that figure confirmed for you.

The Hon. J.A.W. GARDNER: Were Zara and Mike Tindall paid for their visit to South Australia and, if so, how much were they paid?

The Hon. Z.L. BETTISON: They were invited to the VALO Adelaide 500, so that is a question not directed to me.

The Hon. J.A.W. GARDNER: So not out of SATC, at any rate. Does the minister have a figure on the total number of people who have been paid to visit South Australia by SATC or the tourism part of the portfolio and for what events?

The Hon. Z.L. BETTISON: We had an allocation of $1.4 million for the cost for familiarisations, or 'famils' as we call them. A famil is something that we use quite often. People use it to allow people of influence to better understand a destination by experiencing it firsthand to help them either onsell or promote the destination. That can be wholesalers who are selling on packages, or it can be journalists who are writing something about what we are doing. It is very commonly used across the area. I will get that figure to you, I hope by the end of the session, of how many people we had on famils, but every tourism commission uses it. It is a way of showing your destination, particularly to different markets.

The Hon. J.A.W. GARDNER: Should we not have it by the end of the session, which is rapidly approaching, are you happy to take it on notice?

The Hon. Z.L. BETTISON: We will take that on notice.

Ms TERRY: Just to follow on from the minister in terms of the actual PR famils program, it includes everything from trade famils, which are very much stock standard, through to some of those influencer activities. They are not paid to come on those. We might cover some on-ground costs, and we may work with industry in terms of what that experience looks like as well where they also may contribute into that. So that is across the entire program for the entire 12-month period as well, covering all activities, including international trade activities as well.

The Hon. J.A.W. GARDNER: For clarification, are these events that we are talking about, Sam Smith, the TikTok camp, etc.—the famils, which is a word I have never used before in my life until just then—all out of the tourism marketing budget line, program 3?

Ms TERRY: Yes, that would be under the marketing.

The Hon. Z.L. BETTISON: Under the domestic marketing.

The Hon. J.A.W. GARDNER: I think the minister alluded to this before, but am I to take it from her earlier response in relation to the TikTok influencer camp that there are no plans to do that again?

The Hon. Z.L. BETTISON: No.

The Hon. J.A.W. GARDNER: Happy days. On page 93, there is a line in relation to total leases on accommodation, which is fairly significant, of $5.6 million that appears in 2023-24. Can the minister explain what this new figure is about?

The Hon. Z.L. BETTISON: Sorry, I just missed the first part of what you said.

The Hon. J.A.W. GARDNER: Page 93, the lease accommodation, it is a fairly substantial new figure.

The Hon. Z.L. BETTISON: I asked a very similar question when I was in your spot because it was already in the forward estimates. The increases in leases on accommodation are due to the accounting treatment of the South Australian Tourism Commission's head office lease. Under the new Australian Accounting Standards, leases are capitalised and subsequently amortised over the life of the lease. The SATC's current head office lease is due to expire in March 2024, at which time a new lease will be entered into for office accommodation. The increase in the capital budget in 2023-24 reflects the estimated discounted future value, all ensuring lease payments over the life of the lease.

The Hon. J.A.W. GARDNER: Thank you, that is very helpful. Who is the landlord?

The Hon. Z.L. BETTISON: It is the Catholic Church.

The Hon. J.A.W. GARDNER: Outstanding. Do we know how long the next lease is going to be for? Apologies if you have already answered that question.

The Hon. Z.L. BETTISON: Five plus five.

The Hon. J.A.W. GARDNER: Can I move to page 94 and we will talk a bit about river recovery with the time we have left. There are a couple that talk specifically about the River Murray flood event. Can the minister tell us how many voucher receipts were from South Australia and how many were from Victoria?

The Hon. Z.L. BETTISON: As I have said publicly, 4,369 vouchers were used in the first round. The vast majority, of course, were from South Australia. We targeted Victorian and New South Wales border communities, particularly Mildura, which has a lot of contact here. We will get that answer to you directly and I can come back to that.

The Hon. J.A.W. GARDNER: As the travel period for round 1 of the River Revival Vouchers ended, as I understand it, on 29 June, can the minister tell us now how many vouchers were claimed? Is that the 4,369 figure?

The Hon. Z.L. BETTISON: There were 4,369 in round 1. I will get you the split of how many are from Victoria, but it is very low.

The Hon. J.A.W. GARDNER: In round 2, how much was spent on the second round of River Revival vouchers in all aspects—consulting, the cost of the vouchers, etc?

The Hon. Z.L. BETTISON: The spend is not something we can share with you at this point because people have not booked their vouchers. With whatever is not used, first, we are going to do the second chance draw, so if you have not booked it by 25 July you lose it. We do a second chance draw and the people will know on 27 July. Any of those vouchers not used will simply go into round 3, so there is no loss at all. We are deeply committed to keeping our eyes on the river, and I think we will probably be there at least 18 months in from that event.

We know that people missed out on their peak season, which is a summer season. There is no loss in the vouchers at all. We puts lots and lots of vouchers out there. I remind you that, in the last few rounds of the Great State Voucher, these two regions had 2,700 vouchers. We had not quite double the amount in round 1, we already have 2,200 booked in round 2 and we are not even half way through that. It has been incredibly successful, with $3.1 million in economic stimulus to these regions that have been impacted so strongly.

The Hon. J.A.W. GARDNER: Going to page the 97, tourism events, the budget allocation in grants and subsidies for tourism events was $22,404,000, expenditure $45,527,000. Can the minister explain this—it is one of those irregular verbs—it could be called a variant, a change, a blowout, depending on who you are talking to really.

The Hon. Z.L. BETTISON: I am not sure that is the word I would use. Let me come back to the previous question. We had 119 familiarisations in 2022-23, and the break-up of those figures—obviously there was an airline initiative.

I have something else to come back to you on. Recently, you asked me about other savings we had found in our budget: airline initiative, which will not continue, $131,000; rent and stationery new contract saves, $549,000—a lot of stationery; and regional review, a one-off cost, and that finished last financial year. The increase of $23.1 million in grants and subsidies is predominantly due to the expenditure in 2022-23 on those new homegrown events, and they are the changes we have.

The Hon. J.A.W. GARDNER: That extra funding of $23 million came from the major events budget to tourism; is that correct?

The Hon. Z.L. BETTISON: Yes.

The Hon. J.A.W. GARDNER: So that dealt with the expenditure that SATC had to undertake on behalf of the taxpayer to support these events? I presume it did not comprise the total expenditure on these events, that some funding would have gone directly from major events to the AFL, LIV Golf or whoever else as well as this funding?

The Hon. Z.L. BETTISON: That would be a question directed to the Department of the Premier and Cabinet.

The Hon. J.A.W. GARDNER: Did any funding go from SATC to LIV Golf or the AFL to procure those events?

The Hon. Z.L. BETTISON: A lot of that money—and I do not have a specific figure—is about the delivery of those events. One of the things we are known for is our immersive events, so when people come here they really feel like an event is on.

I got fantastic feedback about the two lots of rugby we have had in the last—sorry, the Wallabies were just before the last financial year. From the time people entered the Airport they have seen that we decorate the Airport, and King William Street is there. Not in the two events you have asked about, but for Frida and Diego there is actually a street walk all through Adelaide which supports that event, and we supported Aida to deliver that as well.

That is what we are clear about, but there is some support around activation, delivery, marketing and city dressing. That is some of the money that came from SATC for those events.

The Hon. J.A.W. GARDNER: There were other funds as well, but you are not responsible for those, so that is fine. Seeing as the minister raised Frida and Diego, a nice place to end might potentially be to reflect on that work that was an excellent project that the tourism budget went towards, bringing such a significant artistic endeavour to Adelaide, to the Art Gallery. I commend Steven Marshall, in particular, for his involvement in that project. Will the minister follow that example and continue to provide opportunities for tourism drawcard events in the arts as well as in sports?

The CHAIR: Member for Morialta, was that a rhetorical question?

The Hon. J.A.W. GARDNER: It has an answer, sir.

The Hon. Z.L. BETTISON: Yes, I will.

The CHAIR: The allotted time having expired, I declare the examination of the proposed payments for the South Australian Tourism Commission complete. The proposed payments for the Administered Items for the Department of Treasury and Finance I refer to committee B. I would like to thank the minister, her advisers, members of the committee and staff for their attendance today.


At 15:01 the committee adjourned until Wednesday 5 July 2023 at 09:00.


PARLIAMENTARY BUSINESS
MEMBERS
GET INVOLVED
ABOUT PARLIAMENT
VISIT
LEGISLATIVE COUNCIL
HOUSE OF ASSEMBLY
CONTACT