Livewireshock
24th May 2007, 07:03
From the West Australian newspaper
Big events earn less than State trumpeted
23rd May 2007, 5:00 WST
The State Government expects to make only $147,000 next year from events tourism after dropping Rally Australia and replacing it with the Red Bull Air Race, according to its Budget papers.
While former tourism minister Mark McGowan told Parliament in 2005 “the absolute minimum return is $5 for every dollar invested”, the Government now has a more modest target of $2.90 for every $1 put into tourism events.
An examination of Budget papers yesterday revealed the Government appeared to revise down its estimate of the value of media coverage from events such as Rally Australia and the Red Bull Air Race from $4.88 per dollar to $2.78.
It allocated $21.4 million to events this financial year but that will slip to $13.28 million in 2007-08.
Tourism Minister Sheila McHale told an estimates committee hearing yesterday that the discrepancy came from the Red Bull race and Rally Australia both being held in 2006-07.
“There is a compensating reduction of both expenditure and revenue related to Rally Australia. There is a reduction as a result of supplementary funding in relation to the Red Bull Air Race,” Ms McHale said.
A spokesman said later the fall in revenue to $147,000 from $4.5 million only reflected the loss of Rally Australia and did not deal with income from all tourism events.
Ms McHale said Rally Australia failed to generate as much media coverage promoting WA as the air race, which actually showed Perth.
“There is no TV footage of Perth, Western Australia, as a result of Rally Australia,” she said. “You see the race but you don’t see images of Western Australia.”
Shadow tourism minister Katie Hodson-Thomas said WA was falling off the pace with events tourism. “They’re obviously looking at some events but not big major events,” she said. “We don’t seem to be looking for new and innovative things.” She said WA should be trying to attract a round of the V8 supercars by 2010.
ROBERT TAYLOR
STATE POLITICAL EDITOR
The West Australian government is now failing to meet their own demands. They originally stopped the Rally Oz because it was not meeting the $5 per dollar return from their investment. Now they can not even match that with their new showcase event, the Red Bull Air Race. Their so called 'better' accounting to judge an events worthiness is proving to be a disaster.
While the rally may not be telecast in front of tourist attractions, sticking to the forests mainly. I do remember seeing shots of Perth in the coverage. The Red Bull Air Race was always going to have more coverage of the city itself. It was held out over the river next to Langley Park where the service park & Super Specials were once held.
The key factor that has occurred is that the air race had a great big crowd, but it was nearly all locals. No great tourist mass came just to see it. Plus it was a free event to spectate, so families came with a picnic lunch & watched, then went back home for dinner. There was not a great deal of spending generated from the event compared to Rally Australia.
It was plain to see but it does look like the government has cut it's nose off despites it's face. They have really managed to shoot themselves in the foot. Rally Australia may not have been the best, but it was a hell of alot better than what they replaced it with.
There are alot of sour grapes here & I hope that Queensland can prove what a bonus hosting Rally Australia can be.
Big events earn less than State trumpeted
23rd May 2007, 5:00 WST
The State Government expects to make only $147,000 next year from events tourism after dropping Rally Australia and replacing it with the Red Bull Air Race, according to its Budget papers.
While former tourism minister Mark McGowan told Parliament in 2005 “the absolute minimum return is $5 for every dollar invested”, the Government now has a more modest target of $2.90 for every $1 put into tourism events.
An examination of Budget papers yesterday revealed the Government appeared to revise down its estimate of the value of media coverage from events such as Rally Australia and the Red Bull Air Race from $4.88 per dollar to $2.78.
It allocated $21.4 million to events this financial year but that will slip to $13.28 million in 2007-08.
Tourism Minister Sheila McHale told an estimates committee hearing yesterday that the discrepancy came from the Red Bull race and Rally Australia both being held in 2006-07.
“There is a compensating reduction of both expenditure and revenue related to Rally Australia. There is a reduction as a result of supplementary funding in relation to the Red Bull Air Race,” Ms McHale said.
A spokesman said later the fall in revenue to $147,000 from $4.5 million only reflected the loss of Rally Australia and did not deal with income from all tourism events.
Ms McHale said Rally Australia failed to generate as much media coverage promoting WA as the air race, which actually showed Perth.
“There is no TV footage of Perth, Western Australia, as a result of Rally Australia,” she said. “You see the race but you don’t see images of Western Australia.”
Shadow tourism minister Katie Hodson-Thomas said WA was falling off the pace with events tourism. “They’re obviously looking at some events but not big major events,” she said. “We don’t seem to be looking for new and innovative things.” She said WA should be trying to attract a round of the V8 supercars by 2010.
ROBERT TAYLOR
STATE POLITICAL EDITOR
The West Australian government is now failing to meet their own demands. They originally stopped the Rally Oz because it was not meeting the $5 per dollar return from their investment. Now they can not even match that with their new showcase event, the Red Bull Air Race. Their so called 'better' accounting to judge an events worthiness is proving to be a disaster.
While the rally may not be telecast in front of tourist attractions, sticking to the forests mainly. I do remember seeing shots of Perth in the coverage. The Red Bull Air Race was always going to have more coverage of the city itself. It was held out over the river next to Langley Park where the service park & Super Specials were once held.
The key factor that has occurred is that the air race had a great big crowd, but it was nearly all locals. No great tourist mass came just to see it. Plus it was a free event to spectate, so families came with a picnic lunch & watched, then went back home for dinner. There was not a great deal of spending generated from the event compared to Rally Australia.
It was plain to see but it does look like the government has cut it's nose off despites it's face. They have really managed to shoot themselves in the foot. Rally Australia may not have been the best, but it was a hell of alot better than what they replaced it with.
There are alot of sour grapes here & I hope that Queensland can prove what a bonus hosting Rally Australia can be.