WESTERN Australia today announced a shocking 28 per cent cut in funding for the Perth Convention Bureau (PCB), despite the CVB having surpassed its annual target for the last financial year and being on track to do the same for 2014-2015.
The reduction is specifically for the Business Events Marketing and Promotional Services Agreement with Tourism Western Australia for the financial years of 2016/2017 to 2018/2019.
“This substantial reduction of funding is discouraging, particularly in the context of PCB being one of the highest performing convention bureaus in Australia with an ROI to the Western Australian state government investment of 31:1 – double that of its east coast capital city bureau competitors,” said PCB’s CEO, Paul Beeson in a statement.
“Further, PCB has almost doubled its cooperative funding and activities with the tourism industry over the last four years.”
PCB delivered A$107.9 million (US$87.2 million) in direct delegate expenditure in the last financial year, reaching and surpassing the targeted A$104 million. This year, the CVB is expected to again exceed the annual target and secure A$106 million for the state.
Ian Laurence, chairman, PCB, expressed concern in a media statement that the state government’s move is counterproductive – business event delegates generate five times the economic benefits of a regular leisure tourist – also because of the ongoing growth in venue space and accommodation options in Perth.
“While we understand the straitened circumstances facing the state government at this time, a lower level of funding for PCB in future years will make the task of increasing our market share extremely difficult,” he added.
A PCB statement said that the CVB “looks forward to working with the state government over the next months to ensure the current level of funding is reinstated for its future contract period”.
