01 Sep 2015

Approved Bodies overlooked in 2015 EMDG Review

The Association of Australian Convention Bureaux (AACB) is frustrated that Approved Bodies were overlooked in the 2015 review of the Export Market Development Grant (EMDG) scheme.

AACB Executive Director Andrew Hiebl said, “We have been vocal about our concern regarding changes made by Austrade over recent years through the application of Section 46 to Approved Bodies, which significantly reduces the grant opportunity for convention bureaux and regional tourism organisations.”

“The 2015 Review was a one in five year opportunity to take a serious look at this issue. To not include the assessment process of Approved Bodies in the final report or its recommendations overlooks the hard work that our members do to promote Australia to the world in order to attract high yielding international visitors and delegates to the country.”

AACB calls on Minister Robb to make an independent determination on this issue to restore the Scheme to its original intent with regard to Approved Bodies in the tourism industry.

“Australia’s Tourism 2020 targets need to be taken into consideration. Inaction will force convention bureaux across Australia to reduce their international marketing activity, often in partnership with Tourism Australia. This will ultimately have a flow on effect resulting in fewer international business events for Australia and therefore reduced export revenue.”

With that said, recommendations put forward in the Review for the Scheme to be continued and even increased to $175m over the next three years are welcomed by the AACB.

In 2014/15, the second tranche payment was reduced by 35% due to the higher than expected volume of claims. With the annually capped Scheme being a retrospective grant, there is a lot of uncertainty around provisional assessments actually being realised in full until the end of each financial year.

“Budgeting in anticipation of a 5% annual increase in the number of grant recipients takes away some of the uncertainty of reductions in the second tranche payment for those that rely on the grant to undertake international marketing activity.”

To view AACB’s submission to the Review, visit http://aacb.org.au/EMDG.

-ENDS-

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