TOURISM STILL TOP SERVICES EXPORTER

The statement released today by IDP Education claiming that education has overtaken tourism as an export sector is incorrect, peak industry group TTF Australia’s Chris Brown said today.

The most recent Australian Bureau of Statistics’ (ABS) Australian Tourism Satellite Account, which is the benchmark report into tourism’s economic performance, puts the value of tourism exports at $20.5 billion.

By contrast, IDP Education’s figure of $11.5 billion is based on the flawed use of statistics in yesterday’s ABS document, International Trade in Goods and Services.

TTF Managing Director Christopher Brown said IDP Australia had willfully misconstrued ABS figures.

“The tourism industry makes a broad, deep contribution to the Australian economy.

“Education is a crucial export sector, but to suggest that its exports are worth more than tourism’s is voodoo economics.

“Likewise, to suggest that Australian tourism’s export value of $20.5 billion is based merely on ‘great scenery’ is asinine and an insult to the hundreds of thousands of Australians who work in our tourism industry and make it such a globally respected brand.”

“Tourism is a sophisticated, multi-faceted industry and its economic value cannot be denigrated through shonky mathematics.”

“To give just one example, research has proven that international students base their decisions on where to study on both a university’s reputation and the attractiveness of the destination.”

“So in fact, there is a symbiotic relationship between the performance of the tourism sector and that of the education sector.”

“TTF has consistently argued that education and tourism must work in partnership to improve Australia’s international competitiveness, not in opposition to one another.”

TTF Australia is the peak national industry group representing tourism, transport and infrastructure. It comprises the chief executives of the 200 most prestigious investors, operators, regulators and developers across Australia.

TTF refutes IDP Education’s claim on the following grounds:

The figure for tourism exports of $11.5 billion for was reached through the addition of quarterly figures for credits in the services category ‘Personal – Other’ under ‘Travel Services’.

This in no way reflects the full economic value of the tourism sector: IDP Education uses ‘Travel Services > Personal > Other’ to represent the entire tourism sector, which is in fact made up of a broader combination of goods and services.

The Australian Tourism Satellite Account (ATSA) states that “in 2005-06, international visitors consumed $20.5 billion worth of goods and services.”

ATSA further states that “exports of tourism goods and services compare favourably with Australia’s ‘traditional’ export products. During 2005–06 tourism exports exceeded exports of iron, steel and non-ferrous metals and food and live animals.”

Mr Brown said that today’s record overseas arrivals figures for 2007 confirmed tourism’s importance to the Australian economy.

“Australia welcomed 5.6 million overseas arrivals in 2007 – more than ever before.”

“This means the industry is poised to deliver a corresponding boost in tax revenue, export earnings and visitor spending to the Australian economy.”

The most recent ATSA was released in May 2007 and covers the financial year 2005-06; the next ATSA will be released in April 2008 and will cover the financial year 2006-07.

A Report by The Mole