Latest News

Back to Latest News back

 

Auditor-General critical of Tourism Australia’s spending though uncompetitive procurement processes

Auditor-General critical of Tourism Australia’s spending though uncompetitive procurement processes
December 20, 2024

Tourism Australia is under fire for outsourcing the majority of its budget on third-party contractors in deals that did not have competitive tenders.

The Auditor General report into Tourism Australia found that two thirds of its contracts with a start date between July 2021 and June of this year “did not involve open competition” with most of those contracts made through closed-door arrangements that did not show "value for money".

The Auditor also found that there were not enough procedures in place to find contractors that offered the best value for money and that it was fairly common not to manage identified conflicts of interest with contractors.

An outdated ‘influencers’ list used for marketing contracts, variable and inconsistent payment structures and a lack of management plans were also flagged by the Auditor.

Tourism Australia has agreed to nine recommendations made by auditors, saying in response that it “accepts the recommendations for improvement”.

“Some of the report’s findings relate to work undertaken during the unprecedented events of the Covid-19 pandemic, when Tourism Australia’s primary focus was on the emergency response to support an industry in crisis,” Tourism Australia said.

The report follows recent revelations that three former staff had used taxpayer funds for personal travel. The three employees were sacked and repaid the funds.

The audit of Tourism Australia found it had reported a total $266 million in contracts over the three-year period regularly failed to comply with requirements to find contractors who were best value for money, treating suppliers fairly and appropriately declaring possible conflicts of interest.

The report found that it was "common" for there to be no actions to manage identified conflicts of interest, including in cases where tourism office workers had previously worked for a company tendering for a contract, or no records of those actions.

The Auditor General's report also revealed details of an internal audit by Deloitte in 2023, which examined the gifts and benefits tourism office workers had received over a six month period.

That investigation looked at 15 declared gifts, and found three cases where staff had been gifted sponsored travel without seeking approval.

Tourism Australia's rules require staff involved in a procurement not to accept gifts from "companies associated with the procurement".

In June, Tourism Australia Managing Director Phillipa Harrison revealed she had referred three former staff to the National Anti-Corruption Commission after they were sacked for charging taxpayers for personal travel.

The anti-corruption commission decided it would not launch an investigation because the employees had been terminated and the funds repaid.

Outdated 'influencers' list in marketing contract

Half of the contracts auditors examined were awarded to candidates who had not been assessed to be the best value for money, and many contracts involved work commencing before a contract was actually in place.

Many of those contracts had also been varied, with at least one contract doubling in value, without any records on why additional payments were being made - and sometimes retrospectively adding additional services that had already been delivered or paid for.

For other marketing contracts, Tourism Australia used a list of ‘Friends of Australia’ and social media influencers it said it had vetted - but the only document provided to auditors had not been updated for considerations such as any evidence of inappropriate behaviour by brand advocates.

None of the 33 contracts the audit office examined had a management plan in place, "including some high-risk and high-value arrangements".

Tourism Australia agreed to nine recommendations made by the Auditor General, including to strengthen its procurements processes and run more open and competitive tenders.

In response to the Auditor General, Tourism Australia advised “some of the report's findings relate to work undertaken during the unprecedented events of the COVID-19 pandemic, when Tourism Australia's primary focus was on the emergency response to support an industry in crisis.

"Nevertheless, Tourism Australia accepts the recommendations for improvement."

To the surprise of many in the industry, Harrison was reappointed to her role for a further three year period in August.

Images: Tourism Australia Managing Director Phillipa Harrison (top) and Tourism Australia's current Come and Say G'day campaign (below).

Related Articles

19th December 2024 - Australian tourism bodies respond to latest International Visitor Survey

18th December 2024 - TTF welcomes Federal Government backing for new tourism workforce development platform

18th December 2024 - Tourism Research Australia releases latest International Visitor Survey data

7th December 2024 - 2024 sees global tourism approach full recovery

6th December 2024 - Skilled migrants eligibile to help address critical labour shortages in tourism industry

20th November 2024 - Tourism Australia announces four new appointments to its Board

9th September 2024 - Tourism Australia’s signature incentive showcase commences in Cairns

23rd August 2024 - Phillipa Harrison reappointed Tourism Australia Managing Director

21st August 2024 - Tourism Australia Agritourism Forum program released

24th June 2024 - Anti-Corruption Commission will not investigate Tourism Australia expenses scandal

5th June 2024 - Tourism Australia calls in anti-corruption body over staff sacked over travel expenses

6th May 2024 - Tourism Australia fires staff for spending $137,000 of funds for private holidays

20th March 2024 - Victoria’s Auditor-General finds 2026 Commonwealth Games cancellation cost state more than $589 million

14th October 2023 - Tourism Australia’s Come and Say G’day campaign drives rise in international visitors

21st July 2018 - Federal Health Minister orders his department to stop paying social media influencers

25th April 2012 - SATC exposed for paying celebrities to tweet about Kangaroo Island


Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.

Click here to view our subscription options.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Ungerboeck Software

As of February 2023, Ungerboeck Software has rebranded as Momentus Technologies.

read more

Entertainment / Events / Hospitality / Technology / Venues

 
 

Augmented Creative

Augmented Creative is an open organization of like-minded and highly dedicated, creative people who conceive, plan and execute visual solutions. We pursue new and innovative visual ideas to help…

read more

Arts / Attractions / Consultants / Design / Tourism

 
 

Envibe

With its sleek good looks and easy-to-use yet powerful functionality, Envibe is the premium fitness club software for the Australasian leisure, recreation and fitness industry. We are the most…

read more

Aquatics / Fitness / Recreation / Technology

 
 

BioLab Australia Pty Ltd

BioGuard is Australia and New Zealand’s most trusted supplier of premium, innovative and affordable commercial water treatment systems and chemicals. BioGuard offers a comprehensive range of…

read more

Aquatics / Technology / Waterparks

 
 

Tim Batt Water Solutions

Tim Batt Water Solutions are at the very forefront of the commercial aquatic business in Australia, with over 30 years specific experience supplying and installing chemical control and dosing…

read more

Aquatics / Environment / Recreation / Technology / Venues

 
 

Intelligenz Solutions

Intelligenz provides Leisure Management Software for managing all your Program Registrations, Facility Bookings, Membership Sales and POS Transactions; including detailed Reporting, automated…

read more

Access / Billing / Finance / Marketing / Technology

 
 

AMPD Academy

Originally founded to meet the specific training requirements of its own venue management operations, Ampd Academy now embraces a broader mission to combat skill shortages across Australian…

read more

Aquatics / Attractions / Education / Recreation / Safety

 
 

AlphaFit

AUSTRALIAN MADE. FIT FOR PURPOSE. Based on the Gold Coast, AlphaFit is a leading manufacturer and supplier of Australian gym equipment specifically for the commercial, strength and conditioning,…

read more

Fitness / Recreation / Technology / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business