Tourism Impact Model

In March 2004 the Minister for Small Business and Tourism, Joe Hockey MP, launched the Tourism Impact Model for Australian Local Government. The model and associated manual has been provided free of charge to councils across Australia.

What is the Tourism Impact Model?

The Tourism Impact Model is an Excel based financial tool designed to help Local Governments across Australia assess the costs and benefits of tourism on their budgets. The model was developed in consultation with a number of councils, Local Government Associations and state/territory tourism organisations.

How can the Tourism Impact Model assist Local Government?

The Tourism Impact Model allows Local Government to address the following question: “What is the impact of tourism on the operating expenses and operating income of our budget?” Councils achieve this by:

  • establishing their area’s share of visitor spending
  • calculating employment and population multipliers
  • modelling the tourist-related impacts
  • modelling the growth related impacts.

The data obtained from the model can be used by councils to:

  • identify tourist expenditure in their area, and model the impact of additional income on their budget
  • understand the value of different visitor types to the area
  • determine where tourism activity, and in turn costs, occur in the area, and work out how to minimise these costs and maximise revenue.

How can Local Government access the Tourism Impact Model?

The Tourism Impact Model was provided to the Chief Executive/General Manager of councils across Australia in March 2004. A help line will operate until the end of May 2004 to assist councils implementing the model. This service can be accessed by calling 1800 048 155. Councils can also access the web site by visiting www.industry.gov.au/TourismImpactModel and a discussion forum at info.tourism.gov.au/forum

The Department of Industry, Tourism and Resources would like to hear from any councils that have worked through the model, as this will allow the Department to improve its understanding of tourism at a Local Government level, and to make any amendments to future versions/information on the model. Any information you provide will be treated in the strictest confidence.

For further information on the Tourism Impact Model, contact Robyn Webb at the Department of Industry, Tourism and Resources on (02) 6213 7543 or via email robyn.webb@industry.gov.au