Submission by Outback Queensland Tourism Association

SUBMISSION BY OUTBACK QUEENSLAND TOURISM ASSOCIATION

TO THE

INQUIRY INTO THE OPERATION, REGULATION AND FUNDING OF AIR ROUTE SERVICE DELIVERY TO RURAL, REGIONAL AND REMOTE COMMUNITIES

Prepared by Outback Queensland Tourism Association PO Box 506, Longreach Queensland 4730 Page | 2

Table of contents

1 INTRODUCTION 4 2 BACKGROUND 2.1 OUTBACK QUEENSLAND TOURISM ASSOCIATION BACKGROUND 4 2.2 OUTBACK QUEENSLAND TOURISM INDUSTRY 5 2.3 VISITOR STATISTICS COMPARATIVE DATA 5 2.3.1 DOMESTIC 6 2.3.2 INTERNATIONAL 6 2.4 SUMMARY 6 2.5 RECOMMENDATIONS 6

3. SOCIAL AND ECONOMIC IMPACTS OF AIR ROUTE SUPPLY AND AIR FARE PRICING 7 3.1 ECONOMIC IMPACTS 7 3.1.1 TOURISM IMPACTS 7 3.1.2 BUSINESS IMPACTS 7 3.1.3 SOCIAL IMPACTS 8 3.1.4 RECOMMENDATIONS 8

3.2 AIR ROUTE SUPPLY, SCHEDULING AND SERVICE LEVELS 9 3.2.1 AIR ROUTES PROPOSED 9 3.2.2 SERVICE LEVELS 11 3.2.3 RECOMMENDATIONS 12

3.3 PRICING DETERMINATION, SUBSIDATION AND EQUITY OF AIR FARES 12 3.3.1 OVERVIEW – HIGH AIR FARES 12 3.3.2 STUDENT TRAVEL 13 3.3.3 HEALTH 13 3.3.4 SUBSIDISED AIR FARES AND RESIDENTIAL FARES 13 3.3.5 RECOMMENDATIONS 13

4 COMPETITION 13

5. ANY RELATED MATTERS 14 5.1 AIRPORTS 5.1.1 AIRPORTS OF REGIONAL SIGNIFICANCE 14 5.1.2 INTERNATIONAL AIRPORTS RELEVANT TO THE QUEENSLAND TOURISM INDUSTRY 15 5.1.3 ECONOMIC AND SOCIAL CONTRIBUTIONS OF REGIONAL AIRPORTS 15 5.1.4 RECOMMENDATIONS 15

6. SUMMARY OF RECOMMENDATIONS - 11 16

1st February 2018

Committee Secretary Senate Standing Committees on Rural and Regional Affairs and Transport PO Box 6100 Parliament House Canberra ACT 2600

To the Committee Secretary

RE: Inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities.

Thank you for the opportunity to contribute to the above enquiry. Outback Queensland Tourism Association's submission directly relates to the Outback Queensland Tourism Industry and reflects on other associated issues linked to the enquiry topic.

OQTA's comments are provided as the lead agency representing tourism in the Queensland outback region and has therefore not delved into specifics for particular towns but rather made the submission at a higher strategic level.

We welcome any opportunity of involvement throughout the inquiry if the Committee requires.

Yours sincerely

Peter Homan General Manager Outback Queensland Tourism Association PO Box 506, Longreach QLD 4730

1. INTRODUCTION

Outback Queensland Tourism Association (OQTA) welcomes the opportunity to provide input into the Inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities with particular reference to (a), (e), (f), (g) (h) and (j). The Rural and Regional Affairs and Transport References Committee has been tasked with conducting this enquiry and reporting to the senate with regard to: a. social and economic impacts of air route supply and airfare pricing; b. different legal, regulatory, policy and pricing frameworks and practices across the Commonwealth, states and territories; c. how airlines determine fare pricing; d. the determination of airport charges for landing and security fees, aircraft type and customer demand; e. pricing determination, subsidisation and equity of airfares; f. determination of regulated routes and distribution of residents’ fares across regulated routes; g. airline competition within rural and regional routes; h. consistency of aircraft supply and retrieval of passengers by airlines during aircraft maintenance and breakdown; i. all related costs and charges imposed by the Civil Aviation Safety Authority; and j. any related matters.

2. BACKGROUND

2.1 OUTBACK QUEENSLAND TOURISM ASSOCIATION BACKGROUND

The Outback Queensland Tourism Association (OQTA) is a Regional Tourism Organisation (RTO) in Queensland. OQTA is a private sector member-based body whose role is to assist in building capacity and increasing visitation in the Queensland Outback.

OQTA coordinates the efforts of industry, local government and the community to grow tourism, assisting and advising in planning, developing and promoting the region as a tourist destination strive to protect the interests of the region.

OQTA partners with all levels of Government and lead organisations to deliver its objectives.

2.2 OUTBACK QUEENSLAND TOURISM INDUSTRY

The following statistical information is included in OUTBACK TOURISM DESTINATION PLAN 2007-2020 the submission to provide the Committee with an Implications for Growth understanding of the impact the tourism industry has Access: 'Regional airports will need to improve on the Queensland outback. infrastructure and increase flight frequencies to cater for a higher volume of passengers.' OQTA believe it is vital to highlight trending gaps where improved air access and services will progress Enabler for success: 'Maintaining existing access routes (road/rail/air) with agreement to increase frequency and the tourism industry, assist economic sustainability decrease cost toward 2020' and improve the lives of people who live or work in Challenges: Accessibility – Roads/Rail/Air – distance the outback. /cost/frequency'

Tourism Megatrends In order to continue to grow the outback region and 'On the Move: Humanity is increasingly mobile with its tourism industry, air access is the key transport people travelling further and more frequently for trade, corridor. Air travel is vital to future growth, business, events, education and healthcare. Implications for the Outback: Maintaining air, rail and sustainability and livability of the largest geographical road access is key to maximising the potential of this tourism region in Queensland. Outback Destination trend. Particularly for the Outback, it is important to Plan. (2017-2020) Figure 1 maintain key transport corridors, open new areas for four wheel driving routes, capitalise on train infrastructure, and invest in regional airports.' Queensland is divided into thirteen Regional Tourism (Outback Tourism Destination Plan 2007-2020) Organisation (RTO) regions of which OQTA services Figure 1 the largest geographical area of 827,767 sq km across 17 Local Government areas. The outback region has 69,000 residents, 818,000 overnight visitors and provides $214M contribution to Gross Regional Product (GRP) which is s3.1% of Outback's GRP. Tourism and Events Queensland Regional Snapshot – Social Indicators 2017

2.3 VISITOR STATISTICS COMPARATIVE DATA

2.3.1 DOMESTIC Queensland currently attracts 22,110,000 domestic overnight visitors per year with a break up of 15,537,000 Intrastate visitors and 6,573,000 interstate which resulted in a record total of $15.7bn in overnight expenditure to year ending September 2017, 5.6% more than in the same period the previous year. (Tourism & Events Queensland, Domestic Tourism Snapshot Year ending September 2017) Outback Queensland Visitation Sectors Queensland Visitation Sectors 3 year average to June 2017 Year to September 2017

3% 26% 20% Intrastate Intrastate Interstate Interstate 52% International International 22% Outback Queensland Tourism77% Association submission to the Enquiry into the Operation, Regulation and funding of air route service delivery to rural, regional and remote communities January 2018 Page | 6

2.3.2 INTERNATIONAL International visitation to Outback Queensland trended down International Visitor Growth/Decline by 2.9% over the three years to September 2017 in comparison to the strong growth experienced across 20.0% Queensland which saw record visitation levels of 2.6m 15.0% visitors (3% growth) and a record $5.3bn spend (2.5% increase). 10.0%

The highest performers of the international market were New 5.0% Zealand and Japan with the other markets remaining stable. Japan is now Queensland's third largest market in terms of 0.0% expenditure growing by 11.2% to $422.5m. China is SQC TNQ SGBR Coast Coast Coast

Queensland's largest visitor market bringing a record 488,000 -5.0% Mackay Outback Brisbane Townsville

visitors with a record spend of $1.1bn in the year ended Gold Fraser September 2017"(Tourism & Events Queensland, Whitsundays Sunshine International Tourism Snapshot Year ending September 2017)

2.4 SUMMARY Outback Queensland is not achieving a comparative Comparitve % of market sectors percentage of the international visitor sectors in Queensland. Outback Queensland

Business travel growth is strong due to the resource 24.60% industry and whilst the VFR and Holiday markets trended 18.40% upward, Outback Queensland still lags behind the average 9.4% Queensland visitor growth rate, particularly in relation to International visitation numbers. 3.3% 0.7%1.6%

Business VFR Holiday

2.5 RECOMMENDATIONS

2.5.1 OQTA believes the lower than average visitation percentages are directly related to:  a lack of strategic and direct air routes from International airports to major outback centres  a lack of well connected and regular air route paths and schedules within the state  prohibitive air fare prices and therefore recommend that new direct routes from international airports of Cairns and Darwin to outback Queensland be introduced to access international market. Further, that improved connections across outback airports be developed to sustain additional international, intrastate an interstate visitation at acceptable costs.

3. SOCIAL AND ECONOMIC IMPACTS OF AIR ROUTE SUPPLY AND AIR FARE PRICING Specifically relating to sections (a) (e) (f) of the inquiry areas

3.1 ECONOMIC IMPACTS

3.1.1 TOURISM IMPACTS

Economic impacts of air route supply and pricing are felt across all sectors in the Outback. In particular, limited interconnection between regional 'hubs', regularity of flights and expensive air fares present a significant constraint the Outback Tourism Industry’s ability to diversify from critically important drive markets to the fly in/out holiday market that Queensland currently experiences.

Current domestic air route linkages to and within the Queensland outback exhibit a lack of strategic connectivity and regularity. This renders Outback Queensland incapable of leveraging the record levels of visitation growth International airports capable of experienced in Queensland, The Northern Territory and across Australia to linking international visitors from build Queensland's outback tourism industry and economy. strategic global markets in North and South Asia, Europe and the Some regional areas throughout the outback have developed world standard, United States directly to outback international-ready product for the overseas tourism market but are hindered Queensland are Brisbane, Cairns, Sunshine Coast, Gold Coast, by lack of regular and affordable connectivity to International Airports and flight Townsville and Darwin in the networks with other Airports of Economic Significance. Northern Territory.

3.1.2 BUSINESS IMPACTS

Conducting business in outback Queensland has significant barriers generally related to access. It is understood and accepted that there are additional costs and impediments to living and operating business in rural and remote Queensland. The ongoing challenge to investment and ultimately the growth and sustainability of the outback regions is when many feel that freight and travel costs outweigh the benefits of living and working in the outback.

Retention and attraction of staff is challenging due to the considered 'remoteness' of the region and challenges in attracting professional staff is an additional obstacle to businesses sustainability and success. For those working in the outback the lack of connectivity and regularity of flights to address business matters is a major obstacle.

Additionally, when travel costs appear not to be rational when compared to other flight routes of similar distance and size of aircraft, travel and work-based decisions are affected to the detriment of the outback. Many compare the cost of flying to The United States of America to a Brisbane/Outback return flight.

3.1.3 SOCIAL IMPACTS

Livability is generally defined as the characteristics that make a place where people want to live. A definition from the State of the Environment report 2015 outlines the aspects of livability, of which 'access to transport' is an essential factor. In the case of outback Queensland, access to transport impacts numerous other livability factors such as the cost of living, cost and availability of health services, economic opportunities, opportunities for recreation. The report identifies that flow-on effects from achieving a high level of livability are more likely to attract visitors for both business and leisure leading to prosperity for local industries.

Examples of lack of 'livability' and its flow-on effects for many outback centres are exhibited through poor population growth, low attraction and retention rates of residents, limited attraction and retention of workers and professionals.

The inability to regularly connect with family and friends due to high air fares plays a significant role in determining whether people move to the outback region. It is noted that often is it cheaper to fly overseas than to board a return flight from Mount Isa to Brisbane.

Movement of patients with non life threatening illness or requiring specialist appointments is a very difficult to manage process with high costs, poor consistency of supply and lack of support mechanisms which then lead to family and social stress.

Families with children in boarding school have significant additional costs for student travel as well as personal travel to visit children and participate in their education process.

The term ‘livability’ is used to describe the combination of factors that contribute to people’s quality of life and wellbeing. A city, town or region is more likely to be livable if there are high levels of health and welfare, safety, economic opportunities, access to transport, opportunities for recreation and attractiveness, and low levels of pollution."

"There are also significant flow-on effects from achieving a high level of livability. For example, highly livable cities are more likely to attract visitors — for both business and leisure — which can further increase prosperity for local industries." State of the Environment 2015, Commissioner for Sustainability and the Environment 2015, ACT

3.1.4 RECOMMENDATION

3.1.4.a OQTA's submission proposes that access to direct flights, improved networks, increased regularity and affordable flight costs would have a major impact on all 'livability' factors for outback Queensland, therefore improving its social and economic prosperity.

3.1.4.b OQTA proposes that the detrimental perception of outback Queensland's 'remoteness' can be remedied through improved access and connectivity through the introduction of increased regular flights, better connections between international airports and 'airports of significance', and reduced travel costs. OQTA proposes that this would result in Outback Queensland not be considered as 'remote' therefore improving investment, business and tourism opportunities

3.2 AIR ROUTE SUPPLY, SCHEDULING AND SERVICE LEVELS

Outback Queensland is serviced by several carriers providing a variety of flights and routes. Current flight routes do not reflect the significant changes in demand that have occurred over the last 20 years in regional and outback Queensland. There is a tremendous potential for tourism development in outback Queensland with improved flight routes, increased flights and realistic costs.

OQTA acknowledges that the proposal for more outback flight services may result in the use of smaller planes to ensure viability for the carrier. It is the experience of OQTA that it is not the size of the plane that concerns residents or travellers but rather the availability of increased services and access to connections.

It is vital that the level of service currently exising is maintained and where possible increased. OQTA urges the government to ensure that CASR regulations for Regular Public Transport (RPT) flights (CASR Part 135 - Australian Air Transport Operations - Small Aeroplanes[sic]) remain at the same standard if not be improved.

Long journeys become untenable for travellers, tourists and particularly business travel. In many instances, timely return flights and regular access is not available to outback towns. Road travel times are prohibitive from major centres and cities and outside of acceptable standards, leaving the option of flight routes with additional constraints such as expensive car hire remaining the only access solution.

Connecting via car hire when flight routes or timetables are not available is cost prohibitive for most people and a major impediment to business expenses. Extended flights throughout the outback would enhance the potential to generate investment in the tourism industry and tourism businesses such as hospitality, accommodation and tour operators would have a viable opportunity to establish. Ultimately this would change the 'landscape' of the outback Queensland.

Accessing growing international markets such as Asia and Europe in addition to strong interstate and intrastate markets would be realised through direct connections from Cairns and Darwin airports. Existing links from Cairns and Darwin to the rest of Australia and overseas provide an immense opportunity to not only provide a direct route for international visitors to the outback but link Outback Queensland to the rest of Australia.

3.2.1 AIR ROUTES – PROPOSED OQTA has researched the opportunities and benefits of developing new linkages with international airports such as Cairns and Darwin for direct flights to the outback and more regular and affordable route networks within Queensland. These proposed new routes will access existing significant international tourism markets via airports which are currently underulitised in relation to connection to outback Queensland. These proposed routes will develop the Queensland

Outback Queensland Tourism Association submission to the Enquiry into the Operation, Regulation and funding of air route service delivery to rural, regional and remote communities January 2018 Page | 10 tourism industry and build the livability of outback Queensland. Examples of proposed new routes and their rationale are listed below.

New domestic flight routes are also proposed to increase movements and improve linkages across Queensland and the outback. Rationale for each route is provided against individual proposals. HUBS OQTA have identified 'hubs' or common central flight destinations such as Mount Isa, Roma and Longreach where routes can converge, link and provide better connectivity to other travel routes with more regularity and reach. OQTA believe it is vital to recongise the importance of using the 'hub' concept when planning future flight routes and destinations. Mount Isa for example would become a 'Hub' for travelers with connections from all Queensland and Northern Territory international airports. Flights departing Mount Isa would then provide regular links to outback Queensland and Northern Territory iconic experiences opening up options to travelers from across the state. The Roma Hub would be vital to strategically planning resource sector flight routes and the Longreach 'Hub' is a major connector for outback Queensland. Examples of proposed new routes and their rationale are listed below.

PROPOSED NEW ROUTES RATIONALE Cairns – Mount Isa  Proposed that a DIRECT flight from Cairns to Mount Isa be developed DIRECT  Proposed that the direct flight be daily Daily  To provide increased connectivity to a major international airport and North Queensland population in a timely and efficient manner  Tourism benefits are immense through direct and regular connecting flights to outback Queensland  Ability to connect to additional international flights from Darwin to Mount Isa

Rockhampton – Emerald - Blackall –  This flight path is a missing link for the Central West region Longreach of outback Queensland.  Introduction of this link opens the Central West to the East 7 days Coast providing more opportunities for tourism and business development.  Would significantly benefit patient transfer to major cities  Accessing Rockhampton with a population of approximately 200,000 provides an opportunity to attract a percentage of the population to visit the outback. At a minimum accessing a 1% share of the population would make a dramatic impact on the Central West tourism industry.  Linking to Rockhampton also provides travelers with multiple flights to Brisbane and north  A 35 seater, 3 – 4 days per week would be sufficient to address this increased service  This route proposal supports the concept of identifying 'hubs' as a central linkage point for flights. Outback Queensland Tourism Association submission to the Enquiry into the Operation, Regulation and funding of air route service delivery to rural, regional and remote communities January 2018 Page | 11

Toowomba–Longreach –Mount Isa –  There are multiple service weekly from Wellcamp airport to Darwin – Cairns – Toowoomba both Sydney and Melbourne.  Linkages with Mount Isa and Longreach would provide regular access direct to nationals and international airports  Provides opportunity for multiple options, packages and continued development for outback tourism  Provides increased opportunity to taste of the outback and Uluru from the Sydney, Brisbane and Melbourne ports.  Potential for short term authentic outback experience for international visitors

Brisbane – Roma - Charleville – Longreach  Provides a Northern link between the South West-Central – Brisbane West and Brisbane  3 days a week suggested

Sunshine Coast – Roma – Mount Isa – Roma  SSC has an approximate population of 450,000 being the 3rd – Sunshine Coast largest Local Government area in Queensland  Australia's latest International Airport with only Southern routes.  Access to SSC would provide a direct route for the large South East Queensland population into outback Queensland  A large number of resource sector workers live in the SSC region and would benefit from direct flights ex- SSC  Tourism is the SSC major industry and would provide beneficial tourism links to visitors  This is an untapped opportunity that would benefit the outback tourism industry

Increased linkages between Longreach and  Increased flights between Mount Isa and Longreach would Mount Isa develop business and trade activity between the two centres.  Tourism movements would expand particularly for those with International-Ready product  This would assist in building 'powerhouse tourism' for the outback and would have a major impact for expansion of product packing for outback tourism product Brisbane – Roma – Blackall - return  These proposed routes provide better connectivity Brisbane – Roma – Barcaldine – return throughout the outback and to an vital 'Hub' for additional connections 7 days a week  Alternating destinations of Blackall and Barcaldine (3/4 days)

Brisbane – Thangool  A daily service will provide necessary and equitable access to this regions only airport

3.2.2. SERVICE LEVELS Outback Queensland Tourism Association submission to the Enquiry into the Operation, Regulation and funding of air route service delivery to rural, regional and remote communities January 2018 Page | 12

OQTA notes that there is a lack of consistency with flights being cancelled, breakdowns and delays creating flight interruptions which are costly and extremely disruptive to private citizens, injurious to business and particularly costly tourism operators and travelers.

For example, when centres which have one service on a given day, experience a breakdown or delay the repercussions are immense. Many who have had to travel great distances to catch flights then have to find accommodation and try to make alternate arrangements at more expense. Those who need to attend appointments in other centres or cities miss these at great cost. In particular, long awaited medical specialist appointments or treatments cannot be rescheduled easily and patients are threatened with missed essential health support. Those who have connecting flights miss other vital connections with limited ability to reschedule or be refunded. Personal matters such as weddings, funerals are missed creating stress for family members.

3.2.3 RECOMMENDATIONS

3.2.3.a OQTA recommends that the proposed new routes and linkages, including the concept of 'hubs' be implemented to allow better flight route connectivity and visitation to outback Queensland

3.2.3.b OQTA proposes the concept of 'hubs' a worthy consideration in planning strategic and improved connectivity for outback Queensland to international markets, resource industry centres and ongoing sustainability of outback Queensland

3.3 PRICING DETERMINATION SUBSIDISATION AND EQUITY OF AIR FARES With particular reference to inquiry sections (a) (e) (f)

3.3.1 OVERVIEW - HIGH AIR FARES Air travel costs affect all aspects of living in and visiting regional Queensland. This encompasses, residents, agriculture, resource industry, businesses and tourism.

The introduction of a second major airline service to Mount Isa, Cloncurry and Emerald in 2012 was heralded as providing a range of benefits including more competitive pricing, enhanced flight connections to the outback and a higher quality overall travel experience. Unfortunately for the Queensland's regional and remote communities this has not occurred

OQTA provides reference to local issues below:

In 2016 a local on-line petition by a Mount Isa resident, supported by 8038 signatures petitioned Qantas, Virgin and Queensland Airports Limited highlighting the impediments of high air fares. The petition outlined the enhanced isolation and 'disconnection from the rest of Australia by the ridiculously expensive price of flights' and the following points were also noted in the petition excerpt below:

 Flying to Bali is similar cost to flying to Townsville  The exorbitant cost to fly a family on holidays or to school is not achievable for most.  People applying for loans to finance urgent personal air flights  North West residents demanded 'the airlines and airport to make the cost of airfares affordable and realistic so residents can visit their families and friends and vice versa, seek

specialist treatment that is not available in the Outback, enjoy a holiday, and even see some rain!'  QANTAS downgrading to smaller planes with no entertainment and less services but still with 'exuberant fees'  Punishing driving times: Mount Isa to Townsville drive 9 hours, 43 mins / Mount Isa to Cairns 13 hours, 43 minutes / Mount Isa to Brisbane 19 hours, 38 minutes / Mount Isa to Darwin 18 hours, 33 minutes "

3.3.2 STUDENT TRAVEL Travel for school holidays is a major financial burden many families cannot manage. Children who attend boarding school have to travel hundreds or thousands of kilometres to get their compulsory schooling. It is financially impossible for most parents to fly down to their child's school for one visit a term in addition to returning their children home during the year. The Isolated Children's Parent's Association have been advocating to the major airlines for capped or concessional fares for many years without success.

3.3.3 HEALTH Transportation of patients with non-life-threatening illness and those requiring specialist treatment not available in the outback are penalised by high airfares and struggle with family situations that arise through long term or sudden illness.

3.3.4 SUBSIDISED AIR FARES & RESIDENTIAL FARES

OQTA acknowledge that QANTAS and REX airlines have recently introduced discounted 'resident's fares' with QANTAS undertaking a 12 month trial period commencing in November 2017 in response to public outcry about unsustainable air fares. Having now commenced a one year trial period, OQTA remains on alert that the QANTAS subsidy may not remain in place after the token trial period, therefore returning outback residents to previous conditions.

3.3.5 RECOMMENDATIONS 3.3.5.a OQTA recommends that the Federal Government resolves the issues relating to excessively high air fare costs to regional and outback Queensland, further, that incentives be provided to airlines to develop increased and regular routes to regional Queensland centres.

3.3.5.b OQTA supports the requests for capped or concessional school holiday fares.

3.3.5.c OQTA recommends that increased numbers of residential fares be allocated per flight for each outback airport

3.3.5.d OQTA recommends that the Inquiry recognises that air fare subsidies are directly linked to all aspect of livability, working, and visiting outback Queensland and should therefore be at a minimum maintained and where possible, increased particularly to the smaller outback towns.

4. COMPETITION With particular reference to inquiry section (g) Outback Queensland Tourism Association submission to the Enquiry into the Operation, Regulation and funding of air route service delivery to rural, regional and remote communities January 2018 Page | 14

The perceived or real monopoly/duopoly of carriers in regional airports is limiting freedom of choice. The Queensland State Government is the chief user of seats on flights in Queensland. Currently, most government workers use QANTAS as a carrier, encouraged by the ability to personally benefit from frequent flyer points accrual unlike other states where the points go to the government.

Lack of competition is detrimental to service provision, increased services and travel options. OQTA suggests an equitable option of going to tender for service provision on flights by Government to all interested airlines and remove the benefits to Government workers from frequent flyer programs.. This would allow freedom of choice and increased competition.

5. ANY RELATED MATTERS With particular reference to inquiry section (j)

5.1 AIRPORTS 5.1.1 AIRPORTS OF REGIONAL SIGNIFICANCE Airports of 'Strategic Significance' as identified by the Queensland State Government's Economic Directions Statement Queensland Airports report are shown in Table 1. The report's description and definition of 'Strategic Significant' airports follows:

'Of Queensland’s 191 airports, there are 40 metropolitan and regional airports which have strategic significance for economic growth. These airports link Queensland industries to workforces and national and international supply chains, markets and customers. They have been identified based on a threshold of activity in functions that are integral to the state’s economy, such as the volume of aircraft and passenger movements, and hosting of aerospace activities such as maintenance and training for fixed and rotary wing aircrafts, both civil and military. These airports are catalysts for growth not only in Queensland’s major industries of resources, tourism, construction and agriculture, but also associated industries such as aviation training and maintenance, repair and overhaul facilities. They also provide a source of employment in many cities and regional communities.' Economic Directions Statement Queensland Airports (2013-2023) © State of Queensland, Department of State Development, Infrastructure and Planning, October 2013, 100 George Street, Brisbane Qld 4000. (Australia)

Table 1: Airports of strategic significance (40) Hamilton Alpha Caboolture Cloncurry Island Mackay Oakey Sunshine Coast Townsville Amberley Cairns Emerald Hervey Bay Mareeba Redcliffe Blackall Wandoan Archerfield Charleville Gladstone Horn Island Miles Rockhampton Taroom Watts Bridge Gold Biloela Brisbane Chinchilla Coast Kingaroy Moranbah Roma (Thangool) Weipa Whitsunday Bundaberg Clermont Gympie Longreach Mount Isa Scherger Toowoomba Coast Table 2: Outback Queensland Airports Barcaldine Charleville Longreach Thargomindah Bedourie Cloncurry Mount Isa Wellcamp Birdsville Cunnamulla Quilpie Windorah Blackall Emerald Richmond Winton

Biloela Hughenden Roma Boulia Julia Creek St George 5.1.2 INTERNATIONAL AIRPORTS RELEVANT TO THE QUEENSLAND TOURISM INDUSTRY Queensland has five (5) international airports leased from the Federal Government that provide direct access to strategic global markets in North and South Asia, Europe and the United States. These are Brisbane, Cairns, Gold Coast and Townsville airports. Darwin airport (NT ) is also relative to Queensland international tourism accessing visitors directly from the Asia Pacific region. The Sunshine Coast airport is officially Australia's newest international airport due to a federally funded upgrade due for completion in 2020. The upgrade will allow more direct international flights from Asia, currently there are only seasonal flights to New Zealand, limited flights south and no flights North or West. (Queensland Government, Business Queensland, Tourism Market Profile, 22.11.17)

5.1.3 ECONOMIC AND SOCIAL CONTRIBUTIONS OF REGIONAL AIRPORTS The Regional Airport Infrastructure Study (2016) by Acil Allen for the Australian Airports Association endorses OQTA's understanding of the importance of regional airports and their contribution to sustaining economic and social sustainability. The report also highlights that 'Airports are a key facilitator of tourism, which is a significant economic driver for many regional communities'.

'The network of airports across major urban centres and regional areas constitute an integral part of Australia’s economic infrastructure and are critical to connecting communities and enhancing broader economic performance. Regional airports play vital roles in sustaining regional economies and communities, enabling access to specialist health, education, commercial and recreational facilities, and facilitating social connections. Regional airports are also a key facilitator of tourism, which is a significant economic driver for many regional communities.' Acil Allen Consulting, The Regional Airport Infrastructure Study 2016

Airport Sustainability The Acil Allen report identifies various issues relating to the financial sustainability of regional airports. Additional findings of the study include:  'Many regional airport owners face financial stress from the costs of maintaining and operating'  'Regional airports also face great challenges in upgrading facilities to meet requirements

Example: Thangool airport is a example where declining numbers are based on multiple factors including but not limited to undesirable RPT flight times and competing financial incentives at neighbouring airports. Possible Federally required upgrades relateing to counter terrorism, if introduced, will compound the financial impost to the owner of the airport (Banana Shire Council) and will required financial support from the Federal Government.

5.1.4 RECOMMENDATIONS 5.1.4a OQTA recommends that that the Federal Government continue to provide support to regional, rural and remote Queensland airports, further, that the Federal Government provides funding for any

proposed mandatory security upgrades including installations and ongoing security operational costs for these airports

5.1.4b OQTA recommends that a daily flight from Brisbane to Thangool be introduced, with the added benefits of subsidisation therefore improving the viability and competitiveness of the air services operating from Thangool Airport.

6. SUMMARY OF RECOMMENDATIONS - 11

3.2.3.a OQTA recommends that the proposed new routes and linkages, including the concept of 'hubs' be implemented to allow better flight route connectivity and visitation to outback Queensland

3.3.5.a OQTA recommends that the Federal Government resolves the issues relating to excessively high air fare costs to regional and outback Queensland, further, that incentives be provided to airlines to develop increased and regular routes to regional Queensland centres.

3.3.5.b OQTA supports the requests for capped or concessional school holiday fares.

3.3.5.c OQTA recommends that increased numbers of residential fares be allocated per flight for each outback airport

3.3.5.d OQTA recommends that the Inquiry recognises that air fare subsidies are directly linked to all aspects of livability, working, and visiting outback Queensland and should therefore be at a minimum maintained and where possible, increased particularly to the smaller outback towns.

5.1.4a OQTA recommends that that the Federal Government continue to provide support to regional, rural and remote Queensland airports, further, that the Federal Government provides funding for any proposed mandatory security upgrades including installations and ongoing security operational costs for these airports

5.1..4b OQTA recommends that a daily flight from Brisbane to Thangool be introduced, with the added benefits of subsidisation therefore improving the viability and competitiveness of the air services operating from Thangool Airport.

END

Outback Queensland Tourism Association submission to the Enquiry into the Operation, Regulation and funding of air route service delivery to rural, regional and remote communities January 2018