Q&A with Steven Marshall

PREMIER OF SOUTH AUSTRALIA

Q. The hotel industry provides employment for more than 26,000 people and provides enormous benefits to the SA economy, other businesses and of course tax... we have also been one of the hardest industry’s hit by COVID-19 restrictions. Can you outline what your party’s vision is for the hotel industry in SA and how that might be achieved?

A. The hotel industry is an important economic and social driver for the state’s economy. A critical job creator, often the first job for many of our young people and the cornerstone of our communities both in cities and in regions. COVID-19 has presented unprecedented challenges for hospitality businesses in South Australia and across the globe.

My Government listened to the health experts to keep our community safe – and to avoid the months-long lockdowns we have seen interstate and overseas.

As a State we have done so well.

According to Roy Morgan’s special analysis conducted last year, South Australia has “handled the pandemic better than any other state on the employment front”.

South Australia had the fewest days in lockdown.

We worked hard not keep restrictions in place one day longer than necessary.

There is no doubt that it has been hard for operators and their staff to manage the density rules and other restrictions and the economic impact on the sector cannot be understated.

That is why my Government provided $90 million of support and stimulus packages as a response to the Omicron restrictions put in place on Boxing Day.

I know that the people of South Australia have been missing this important sector and the celebrations and entertainment that the sector provides. We want people to go out and support their local and CBD venues – which is why we have partnered with the Adelaide Economic Development Agency to launch a $30 restaurant voucher scheme for the CBD and North Adelaide – encouraging spending in the most impacted areas.

Our global reputation as a food and wine mecca means that our hospitality sector has many bright days ahead of it – especially as we see international travel open up and critical tourist dollars return.

Q. Hotels are a huge part of the tourism industry in SA, including food and wine and accommodation. What are your plans and policies for restoring and growing tourism in SA both post COVID-19 and if necessary, living with COVID-19 longer term?

A. I am focused on returning your sector to the record high $8.1 Billion visitor economy you enjoyed pre- COVID-19. Before the pandemic, South Australian tourism was at its highest ever value on record, and well on track to reach the 2030 goal of $12.8 Billion early.

2021 saw seventh consecutive months where regional SA enjoyed a record monthly results for room nights occupied and takings.

In the 12 months to June 2021, SA’s total visitor expenditure recovered to $5.8 billion, well ahead of the SATC’s impact forecast of $4.9 billion.

We moved quickly to support the sector from the impacts of the global pandemic through our Great State Vouchers – which have so far generated $94.5 million for hospitality and tourism businesses.

The Great State Voucher scheme is a proven tourism stimulus program which has received overwhelmingly positive feedback from industry.

Even though border restrictions have eased and international travel is poised to resume, we are still committed to growing and supporting this key sector. This is why a further two new rounds of Great State will release 160,000 vouchers – the largest voucher stimulus so far – to drive visitation in the city and regional centres over the coming months.

Analysis of previous rounds of the voucher scheme shows it creates additional expenditure over and above the voucher booking.

In addition, my Government’s $20 million investment in tourism infrastructure through the Tourism Infrastructure Development Fund has enabled critical infrastructure improvements and developed new product that will be a drawcard for tourists.

There have been successful projects established in all 11 regions to improve and grow tourism offerings.

Q. Small and medium hotel businesses have a huge amount of red tape, regulation and costs. What are your initiatives and policies to support small business including those in regional areas?

A. The SA Productivity Commission undertook a review in 2021 of Tourism Regulation and made a number of recommendations for streamlining regulation including agencies of Government from all levels working better together to reduce their impact on business. My Government will continue to work through those recommendations through the lens of the small business from the sector.

Q. It has become increasingly difficult for our members to find hospitality staff. This has been even further exacerbated by closed borders. What are your plans to address the skills shortages in SA?

A. When I speak to hospitality owners around the state, they tell me that the biggest limiting factor to their business is availability of skilled workers.

The solution to this is twofold: training up our local workforce to create a skills pipeline, and bringing in skilled workers from interstate and overseas who can plug skill gaps quickly.

This is where my Government’s $200 million Skilling South Australia initiative made a real difference, delivering nation-leading growth after years under Labor with apprentice and trainee decline.

Over the past four years South Australia has led the nation with over 55,000 new apprenticeship, pre-apprenticeship and traineeship commencements, many in the hospitality sector. Since we were elected in 2018, over 3,300 businesses have hired a trainee or apprentice for the first time – and that momentum will continue.

A re-elected Liberal Government will continue to invest in our apprentices – making it easier for businesses to hire and train the skills they need to grow their workforce.

While focussing on the local skills pipeline, we have also recognised that urgent skills gaps can be plugged quickly by incentivising qualified skilled workers from overseas to consider bringing their careers to South Australia.

Following representations from my government about the latent need with the sector, the Federal Australian Government has added chefs, restaurant managers, cooks, sommeliers, and hotel or motel managers to the list of workers able to apply for a prioritised work visa in South Australia under the DAMA program.

I am confident that these two approaches will grow the skills we need for our hospitality and tourism sector.

Q. What is your vision for South Australia considering COVID-19 may be with us in one form or another going forward?

A. We have learnt a great deal over the last two years since COVID-19 darkened our doors.

Like the hospitality industry we have had to change tack to respond to the changing advice to keep our community safe and our economy strong.

But now, we are ready to spring out of COVID-19 and continue the growth trajectory that our state is on.

If you cast your minds back ten years ago Adelaide and South Australia looked very different. Our reputation domestically was stagnant – high unemployment rates, an economy in the gutter, an unpredictable energy grid and a flight of talent and capital to the eastern states.

Our reputation internationally was non-existent.

Now, after only four short years of Liberal leadership South Australia has the strongest economic growth in the nation – and we have achieved this in the middle of a once in a 100 years pandemic.

That fact alone is staggering.

It is thanks, in no small part, to all of you who have had a vision of an Adelaide and worked hard to deliver on that vision. We see hospitality and tourism as one of the critical sectors for delivering on our vision for South Australia as a worldleading destination.

Adelaide is no longer overlooked – it is a city garnering global attention, with the unemployment rate at record lows, the strongest economy in the nation, and for the first time in nearly 30 years, people are moving to our state rather than away from it.

I am excited and I’m ambitious about South Australia’s future. A future where Adelaide is a magnet for tourism and investment, where the sector is confident to invest in our hospitality venues, where our reputation for food and wine continues to be world-leading.