Sunlover delivers tourism cash injection

Treasurer Andrew Fraser and Tourism Minister Desley Boyle announced today a boost to the state’s tourism industry with a $9m tourism funding package set up with the proceeds from the cashing out the long term license of former state wholesaler, Sunlover Holidays.

Mr Fraser said Tourism Queensland had agreed to cash out the license of Sunlover Holidays to the existing operator, The AOT Group, netting $9.7 million.

He said the money would be pumped back into the Queensland tourism industry.

“The proceeds will provide an important and much-needed injection into tourism given the downturn in the global economic climate,” he said.

“While the global economic outlook is bleak, we have yet another company investing in Queensland and investing in the future of our tourism industry.

“This speaks volumes about the confidence investors have in the future prospects of our tourism industry.

“It is good news for the tourism industry and good news for Queensland taxpayers.”

Ms Boyle said discussions with AOT over the future arrangements had been ongoing and the government had affirmed its commitment earlier this year to make sure that any future deal was in the best interests of tourism and the best interests of taxpayers.

“Sunlover Holidays is a wholesaler in Queensland travel products representing over 570 Queensland tourism operators and 1,400 Queensland travel products,” she said.

“What is important in this deal, beyond the sale price, is the fact that this will now free Tourism Queensland up to enter into commercial arrangements that will generate even more funding for the tourism industry.

“Sunlover Holidays receives commissions paid by tourism operators and is currently licensed to Australian Outback Travel and under a five year license agreement that was due to expire on 30 June, 2010.”

Ms Boyle said AOT had submitted an offer to purchase outright the Sunlover Holidays brand ahead of the expiry of the license.

“The Queensland Government had the offer independently evaluated and we have been assured it is a good deal for Queensland taxpayers,” she said.

“Within Australia, tourism wholesaling has changed dramatically since the arrangement with AOT was made in 2005.

“There has been a dramatic increase in online holiday bookings, especially by domestic tourists. Additionally we have seen the rise of low cost airlines and a highly competitive aviation environment.

“AOT has been an excellent partner in marketing Queensland tourism from Cairns to Coolangatta and has been very successful across Australia and the world.

“I thank AOT CEO Andrew Burnes and all the staff, I look forward to continuing our relationship with them over the years ahead.”

Media contacts:

Treasurer’s Office – 3224 6361

Tourism Minister’s Office - 3225 1005