The State Government has this week revealed the Victorian Budget 2024/25 and there is a lot to unpack.
Widely anticipated to be a lean budget, the figures have unveiled a mixed bag of more conservative spending in areas such as tourism and transport infrastructure, while business events and major events have retained or grown budget allocations, presenting the sector with both challenges and opportunities.
The Downside: Cuts, Challenges and Uncertainty
One of the downsides in this year’s budget is the significant cut in Visit Victoria’s destination marketing budget from $32.5 million this year to $32.5 million over four years.
The reduction in paid campaign spend poses a challenge to the state’s tourism marketing efforts, which are integral to attracting domestic and international visitation to Victoria. More information will come from Visit Victoria on how they’ll prioritise and invest their promotional spend.
Additionally, further detail is yet to be revealed on the Regional Package which was announced as part of the support funds following the cancellation of the 2026 Commonwealth Games. There were three key areas for the tourism sector in that package: events, infrastructure and marketing. We will continue to engage with the Government to understand the design and timelines on that program, and will update you all as more information is revealed.
The Upside: Targeted Investments in Business Events and Major Events
On a positive note, the State Government has made a significant investment in attracting business events to the state (a $3 million top up to $9.6 million in 2024-25) including $1.72 million specifically for Nyaal Banyul Geelong Convention and Events Centre ahead of its opening in 2026.
The Major Events Fund’s budget also remains in line with previous years, which will ensure the state retains its international reputation as a destination for events.
And finally, the budget also extends support for regional tourism structures, including Tourism Greater Geelong and The Bellarine, for another year. This will provide resourcing and support for our destination marketing and industry development programs under the new Visitor Economy Partnership model.
The Victorian Tourism Industry Council has responded to the FY24-25 budget hand down, and you can find CEO Felicia Mariani’s statement by clicking here, as well as a summary of budget outcomes here.
While the FY24-25 will be a challenging one, we will continue to advocate for the priority projects outlined in our Sustainable Destination Master Plan (read more on those here) and the growth of our local Visitor Economy.
