Wednesday, November 28, 2012

Qantas, tourism feud is $9 billion risk - The Daily Telegraph




Alan Joyce


Feud ... Qantas CEO Alan Joyce. Source: The Daily Telegraph




Geoff Dixon


Feud ... Tourism Australia chairman Geoff Dixon. Source: The Daily Telegraph





AUSTRALIA faces the loss of a potential tourist boom worth up to $9 billion a year because of the bitter feud between Qantas boss Alan Joyce and Tourism Australia head Geoff Dixon.



At serious risk is a long-term plan to lure at least 860,000 Chinese visitors to Australia by 2020 in the biggest, boldest and most critical tourism marketing campaign since the Sydney 2000 Olympics.


The Tourism Australia board called a crisis meeting late yesterday after Qantas dumped its 40-year partnership with the federal government's peak tourism body amid claims Mr Dixon was trying to sabotage the national airline.


Qantas will continue to work with Tourism Australia on the G'day LA/G'day USA events in January next year and on the Australian Tourism Exchange in April but will review other programs.


Tourism Australia managing director Andrew McEvoy earlier this year described China as Australia's highest value international market and the fastest growing.


Yesterday he said Tourism Australia remained committed to its key partners globally including 20 airlines, state and territory tourism organisations and 400 other industry players. "Qantas is the longest-standing marketing partner of Tourism Australia and both organisations have worked for decades in a professional, collaborative and overwhelmingly supportive manner," he said.


Mr Joyce revealed he had not spoken to his one-time mentor and regular dining partner Geoff Dixon for eight months, accusing the Tourism Australia chairman and former head of Qantas of being part of a consortium trying to take over the airline.


Terminating the three-year, $44 million arrangement with Tourism Australia, which was not due to expire until June 30, 2013, the airline chief said Qantas would now redirect its tourism activities to the states and territories.


"It is a clear conflict that needs to be resolved," Mr Joyce said.


"From our perspective it is going to be inappropriate for us to continue to work with Tourism Australia while that conflict is there."


Mr Joyce said Mr Dixon was part of a consortium "out there briefing against the company".


"As a consequence of that we are better off working with the states closely on tourism activities," he said.


Federal Tourism Minister Martin Ferguson said yesterday the row was a "commercial matter that has nothing to do with Tourism Australia nor the government".


Mr Dixon was not available to comment but it is understood the consortium includes former Qantas chief financial officer Peter Gregg, venture capitalist Mark Carnegie, advertising man John Singleton and retailer Gerry Harvey.



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