Funding Tourism

In most local government areas the potential economic returns to a community from a healthy tourism industry justifies the allocation of council funding and other resources.

Throughout Australia there are a variety of ways councils choose to fund tourism, usually based on local needs, aspirations, resources and collaborative partnerships, including:

1. Through general rate revenue, usually as part of Council’s economic development operation,
2. Special rate charge or levy, applied to commercial properties in the municipality, Click here (172 kb)e to read about Surf Coast Shire Council’s experience with a Tourism Levy
3. Percentage of rate revenue: a minority of LGAs determine a fixed percentage of their rate revenue to be allocated to tourism and, often, other economic development activity,
4. Council grants: an annual or tri-annual amount, usually paid to an external provider of tourism services, such as chambers of commerce, development organizations, local tourism associations etc. This is sometimes based on the amount of private sector money able to be raised from the industry,
5. The allocation of revenue from other council assets, eg caravan parks, tourist attractions etc, is sometimes used to fund or part fund tourism promotion for a municipality.