The Victoria Tourism Industry Council (VTIC) has lashed the FY26 Victorian State Budget saying it was disappointing for the visitor economy, with no recovery of the $26 million reduction in funding that would support taking the state to the world.
Departing VTIC CEO Felicia Mariani said the budget was an opportunity to invest in a powerhouse industry that could contribute significantly to the state’s economic growth.
Instead, the destination marketing budget was maintained at the same $26 million reduction suffered in FY25, seeing just $6 million again allocated to marketing Victoria across Australia and around the world. One upside, though, is the $4.1 billion for works dedicated to the Sunshine Station Superhub which is a first step in the Melbourne Airport Rail Link.
“This budget confirms that, over this year and next year, marketing efforts to promote Victoria around the world will have seen a $52 million reduction in funding,” Mariani said.
“This is difficult to rationalise when you consider that Victoria’s visitor economy is projected to grow to nearly $55 billion by 2030 and we already employ nearly 290,000 people in our sector, with more than half of those in regional Victoria.
“We are a net-positive investment when you acknowledge that we deliver immediate return-on investment by driving visitors to the state who have already injected $40 billion into our economy. More importantly, you don’t need to wait five years in building complex infrastructure
before the state sees any return.”
There were welcomed initiatives that saw $11 million invested in our Visitor Economy Partnerships over two years of the budget; $4.1 billion to commence work on the Sunshine Station Superhub; $7.5 million over two years to support Melbourne Convention Bureau, Business Events Victoria, and a business events bid fund; and $475 million to support the operations and programming of our creative agencies in the state, including the National Gallery of Victoria, Museums Victoria, Arts Centre Melbourne and the Geelong Arts Centre.
“The budget also provides $150 million over four years to support a Victorian Investment Fund to establish a consolidated resource to attract domestic and international investment that will create jobs, support innovation, and underpin Victoria’s vision for long-term economic growth.
“VTIC looks forward to learning the details of this fund to understand how investors in tourism infrastructure and experiences can benefit from this important support mechanism,” Mariani said.
“While the industry will be disappointed with the lack of investment in destination marketing yet again, we will look forward to engaging with Government outside of the budget process to consider alternate models for collaborative investment that can drive a better outcome for the industry and allows us to successfully promote our incredible destination on the global stage.”
Mariani will step down from the role in July, after seven years of leading VTIC.
