Northern Australia SMEs to share in $13.6 million tourism initiative

SMEs that operate in the tourism sector in Northern Australia will soon have access to specialised advisers and facilitators as part of a $13.6 million federal government initiative.

The initiative is part of the government’s response to its white paper on developing northern Australia, called “Our North, Our Future” and will combine the government’s Entrepreneur’s Programme with the Australian Small Business Advisory Services (ASBAS) Programme.

In a joint statement with several of her cabinet colleagues, Small Business Minister Kelly O’Dwyer said a team of five expert advisers and facilitators will tools and advice to businesses facing challenges specific to tourism businesses in Australia’s north.

Only tourism businesses with a current presence in northern Australia with a turnover or operating expenditure of $750,000 or more will be eligible to access the team of experts. The government said it expects small businesses will be able to access the tailored advice from mid-2016.

Northern Australia encompasses anything about the tropic of Capricorn in Western Australia and Queensland and all of the Northern Territory.

O’Dwyer said Australia has two million small businesses that deliver $340 billion for the economy annually. There are an estimated 100,000 small businesses in Northern Australia.

“This initiative will support small tourism businesses to lead the economic charge in northern Australia,” she said in the statement.

The government said established not-for-profit small business advisory services are also able to apply for funding through the ASBAS program to provide advice to small businesses in the tourism sector in Northern Australia.

Minister for Industry, Innovation and Science Christopher Pyne said in the same statement Northern Australia is a close trading market to Asia and has great potential

“The north has untapped potential, abundant natural beauty and talented people,” he said.

Small Business Council of Australia chief executive Peter Strong told SmartCompany this morning increased government funding that targets regional areas is always a good thing.

“They should roll this out across various other places and regions,” he says.

‘We understand the budget restraints so they might want to do this one and then the Barossa Valley [in South Australia] then Gippsland [in Victoria],” he says.

“Maybe what they will do in the Territory is develop it as a case study – if it works.”

Strong says tourism in Australia has great economic benefits and an initiative targeting small and medium businesses helps the industry.

“When you look at smaller hotels and accommodation, the people that provide the tours, the people that run the tourism destinations, a lot of the businesses are small and medium so it’s a really good thing,” he says.

“Your small business person can deliver a service at the end but they don’t have the money for the bigger campaigns and the whole nation benefits, we know that. It’s the airlines, the hotels, the accommodation.”