We acknowledge Aboriginal and Torres Strait Islander peoples as the First Peoples and the Traditional Custodians of Ngunnawal Country, the land on which we meet today. We pay our respects to Elders past, present and emerging, and also recognise any other people or families with connection to the ACT and Region.
Andrew Barr, MLA ACT Chief Minister and Minister for Tourism, on what’s ahead for the tourism and hospitality sectors in the National Capital
The Tourism 2030 strategy focuses on boosting the tourism and hospitality sector’s contribution to the local economy. Right now, tourism is valued at $3.7 billion, and there’s a clear goal to reach $4 million by 2026 and $5 million by 2030.
Key strategies include working closely with Canberra Airport and Tourism Australia to improve aviation productivity, both domestically and internationally. Decisions like allowing Qatar and Virgin to form a closer alliance are seen as opportunities for aviation growth.
The Chief Minister recognised strong engagement with Qantas, especially with the arrival of new A220 aircraft. There are also plans to expand flights and destinations through partnerships with Jetstar and Fiji Airways.
International connections are important, especially to New Zealand, North America and the resumption of the Singapore route.
Telstra’s role in reopening Telstra Tower is also a big part of the plan, with the government helping find local partners for the project.
The Telstra Tower project is currently in the detailed planning stage, with a focus on reopening the facility with new tourism amenities. The Raising London Circuit project is also a major focus, which will impact City West and City South, transforming the area in the next few years.
The new convention and entertainment centre, along with relocating the swimming pool, is a key part of the plans. Areas like Civic Square and the Kingston Railway Precinct are identified for significant urban renewal and redevelopment.
The Bruce precinct, including the Australian Institute of Sport and the new North Canberra hospital, is identified as a major renewal area. The Chief Minister also emphasised the need to build 30,000 new houses in Canberra over the next five years.
The Chief Minister emphasised the need to be strategic in the acquisition of major events, looking for diversity and return on investment. He flagged significant announcements to come in 2025 about major events.
The Chief Minister noted there is $6.5 billion provisioned in the budget for works programs, which includes hospitals, schools, and other key projects. Offset revenue from land sales plays an important role in funding infrastructure projects, with one recent land sale generating significant revenue.
There’s a need to release more land for housing and other opportunities, especially land that currently generates no revenue. Balancing land release with the need for car parking in new developments is also important.
The National Capital Authority has requirements for replacing car parking in new developments. While building underground or above-ground car parks can be disruptive, it is necessary.
A new multi-story car park near the ACT government building is a good example of targeted land release for parking. Strategic planning and coordination with the National Capital Authority is key for urban development projects.
Grant Ferres, Head of Tourism Research Australia and Head of Visitor Economy Sustainability and International Markets at Australian Trade, on tourism trends and forecasts for 2025
Mr Ferres explained that domestic visitation levels have stabilised post-COVID, with spending recovering to pre-COVID levels, largely due to inflation and the shift in travel experiences. However, international visitor numbers are still below pre-COVID levels, with China’s market recovery being particularly slow. On a more positive note, emerging markets like Vietnam and India are showing strong growth.
He mentioned that domestic tourism is expected to remain flat for the next two years, with a strong focus on managing costs. He highlighted the National Strategy, which centres on sustainability, accessibility, and data-driven insights, as a key guide moving forward. He also discussed initiatives such as the First Nations Visitor Economy Partnership and the Choose Tourism Grants Program.
Mr Ferres emphasised that understanding the current state of tourism is rooted in data, referencing the latest forecasts from Tourism Research Australia, which focus on the next four to five years.
Mr Ferres spoke about how visitation numbers have levelled off. He pointed out that there was a strong surge in domestic travel post-COVID, but international visitor numbers still haven't reached pre-pandemic levels. Spending has varied, influenced by inflation and evolving travel experiences, though international visitors are staying longer and spending more despite higher costs.
The forecast for international visitation to Australia has been downgraded, especially due to the slower recovery of visitors from China.
He explained how global economic pressures, such as slower wage growth and inflation, are impacting international travel. He also touched on how sustainability is becoming a bigger consideration for travellers, with many choosing destinations that prioritise sustainability. Despite the challenges, he noted that Australia remains an attractive destination, with new air routes continuing to open. He mentioned that some markets, like Vietnam and South Korea, are experiencing strong growth, while others like China and the UK are recovering at a slower pace.
Domestic tourism is expected to stay flat for the next year or two, with gradual recovery anticipated as interest rates fall and the economy improves. Domestic spend is already well above pre-COVID levels, but overnight trips and domestic nights are on the decline. People are now focusing more on essential travel, with shorter trips becoming the norm and a shift away from discretionary travel.
He discussed the National Strategy, led by Tourism Australia, which involves various federal government departments. Sustainability is a key focus, and he highlighted the launch of the National Sustainability Framework, offering practical guidance for businesses. Accessibility also came up as an important area. New tools and data are available to support businesses in catering to these often-overlooked markets.
Mr Ferres also spoke about the role of Tourism Australia in focusing on data and insights, with initiatives like the First Nations Visitor Economy Partnership that will help industry operators move forward.
There is impressive growth in emerging markets like Vietnam and India, which highlights the need for diversification in tourism sources. Mr Ferres mentioned the Australian Tourism Export Council’s Host program, which is designed to build the capacity to service these new markets. He also talked about how the government is investing in initiatives like the Aviation Recovery Fund, as well as state and territory-specific funds, to support tourism recovery. Mr Ferres stressed the importance of working closely with international partners, like the Vietnamese government, to make the most of new market opportunities.
Mr Ferres reflected on the recent focus on reconciliation within the tourism industry and with government bodies. He mentioned that a new action plan for the next three years is being finalised, focused on strategic actions and industry collaboration. He shared that the first phase of the National Strategy, which provided practical guidance and support for businesses, has already been completed. The next phase will see more strategic actions and a stronger emphasis on long-term goals and industry-wide collaboration.
Question – Will a decrease in interest rates stimulate domestic tourism in particular?
Mr. Ferres said he believes it will happen, but it will take some time. He explained that a lot of careful thought went into the forecasts he presented earlier. When preparing those forecasts, an expert panel is involved, which includes economists and industry experts who work closely with the team and provide valuable input.
Mr Ferres pointed out that, based on the data, the expectation for the next one or two years is that things will remain relatively flat, even if interest rates are cut once or twice. He acknowledged that it might take a little while for those changes to have a noticeable impact. Despite this, he didn't see much improvement on the horizon just yet.
“We expect domestic tourism to remain flat for the next year or two, even with potential interest rate cuts.”
Question – Australia is still struggling to attract international visitors. Is that because we are expensive as well as a long-haul destination?
Mr Ferres explained that there are a few different factors at play when it comes to attracting international visitors. He pointed out that the competition is incredibly intense right now, especially with Middle Eastern countries spending vast amounts of money to draw in travellers. He also mentioned that some of Australia’s near and senior partners in the Asia region are making things easier for travellers by offering more convenient visa options. This has made travel to places like Taiwan and Vietnam more attractive, particularly for travellers from China.
He emphasised that it’s not just about the cost. While price is definitely one factor, convenience, proximity and affordability also play significant roles in why travellers are choosing other destinations over Australia.
Simon Westaway, CEO Australian Airports Association, on the future direction of airline travel nationally and internationally
Mr Westaway discussed the significant economic impact of Australia's airport sector, which is valued at a remarkable $105 billion. He took the opportunity to highlight the sector's pivotal role in supporting international travel, especially in the post-COVID recovery. Mr Westaway pointed out that while the sector has seen a strong rebound, Chinese carriers are currently operating at only 15% of their pre-COVID capacity in Australia, underlining both the challenges and opportunities that still exist in this area.
A key focus of Mr Westaway’s presentation was the importance of enhancing the passenger experience through seamless travel, particularly with the use of biometric technology. He stressed how such technology can streamline airport processes, citing the efficiency seen in global hubs like Changi and Denver airports.
He also made the case for improved coordination among government agencies to make the passenger journey smoother and more secure, benefiting both customer experience and airport operations.
Mr Westaway also addressed the impact of the upcoming federal election on aviation policies and stressed the importance of ensuring long-term federal lease arrangements for major airports to secure continued investment and growth. He noted the significant $15 billion investment by major airports in infrastructure upgrades and expressed the need for more flexible lease arrangements to keep this momentum going.
Mr Westaway also discussed the exciting potential for electric aircraft in revolutionising regional aviation and how this could lead to a more sustainable and innovative future for the industry. Accessibility was another key area of focus, with Mr Westaway emphasising the need to create a consistent, inclusive experience for all passengers, including those with disabilities. He shared a poignant example of tennis player Dylan Alcott’s airport experience to illustrate the impact that better accessibility can have on individuals' travel experiences.
“Seamless travel, strategic investment, and inclusivity will drive the future of Australia’s airport sector.”
Dr David Marshall, Chair of the Leaders Forum highlighted:
Congratulations to Vanessa Brettell. Vanessa and her business partner were recently named Australian Local Heroes for 2025 at the Australian of the Year Awards for their efforts in establishing Café Stepping Stone in Strathnairn and Dickson.
Acknowledging a true veteran of the tourism industry, Colin Thomas, who has retired. Colin served Qantas and Canberra for 30 years including as the ACT region manager. Thank you for your dedication and contributions to the industry.
The Canberra Business Chamber’s 'Welcome Back to Business' event will take place on February 22nd at 5:30 PM. Registrations are available through the Chamber's website.
Next forum Friday 7 March 2025.
Speakers will include: His Excellency Ajay Bhai Amrit, Fiji High Commissioner to Australia; Kathryn Carling, Area General Manager DOMA Hotel Group – Canberra; Brendan Smyth, ACT Commissioner for International Engagement
Credits:
Created with images by Steve - "Panorama view of Canberra, the capital city of Australia, looking north over Lake Burley Griffin with Black Mountain and Telstra Tower to the left and Commonwealth Bridge at right" • Jerry - "Lake Burley Griffin at night"