The future of Tourism Australia is under serious threat with a Commission of Audit report – which the Federal Govt is using as a blueprint for its upcoming budget – proposing that funding for Tourism Australia should be halved and its “residual functions” merged into the Department of Foreign Affairs and Trade.

The commission says that because the most of the benefits of Tourism Australia’s activities flow to private operators, this weakens its case for public assistance. The recommendations have met with strong industry opposition.

Update 14/5: Crisis averted. TA funding will remain largely intact. TA has been allocated $129.8 million compared with $130.3 million last financial year.

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