Workers Are Priority in State Holiday Business Sale

7 May 2009

The Minister for Tourism, Michelle O’Byrne, today met with Tourism Tasmania staff to inform them the State Government would be divesting its distribution business, Tasmania’s Temptation Holidays, in Launceston.

Ms O’Byrne said she informed staff that the State Government would be seeking a potential purchaser for the business, following a large fall in the amount of sales due to significant changes to the tourism wholesale market in recent years.

'This reduction in sales is resulting in forecast losses for this financial year of $3 million, and projections are that losses will only worsen.

'As a result the State Government intends to divest itself of the business, but will first try to seek a buyer.

'Unfortunately, and particularly if no buyer is found, this decision will regretfully impact on the 52 people the business currently employs.

'Our immediate priority and focus is to do everything we physically can to secure the employment of these people in the event no buyer is found.

'I have assured the employees that the State Government will make every effort to redeploy Tasmania’s Temptations Holidays staff within the Department of Economic Development and Tourism and the broader State Service.”

Ms O’Byrne said to assist staff in this extremely difficult time, the State Government would provide an incentivised voluntary redundancy program.

'The State Government will also establish a customer contact centre operation in Launceston which will provide employment opportunities for up to 12 staff.

'Recruitment for the 12 roles will happen over the coming weeks and the positions will only be available to staff affected by the divestment decision.

'Tourism Tasmania will be working closely with affected staff to ensure they have all the information they need to make the best decision for their own future.

Ms O’Byrne said Tasmania Temptations Holidays was established by the State Government almost 30 years ago to address a massive gap in the wholesale tourism sales area.

'With an exponential increase in the use of Internet and the ability to directly book tourism experiences with providers in recent years, this gap no longer exists.”

Ms O’Byrne said in 2004, the Tasmanian Temptations Holidays business generated more than $52 million in sales.

'This has since fallen by about $40 million for the current financial year, requiring significant subsidising from Tourism Tasmania’s budget to cover losses of about $3 million.

'In these challenging financial times, where Tasmania faces its share of budgetary pressure, that loss is not easily borne.”

Ms O’Byrne said the decision to divest the business had come after a thorough 18 month review, and several attempts to reverse the trend of decreasing sales.

'Tourism Tasmania has implemented significant changes over the past two years to create efficiencies to reduce losses to the business, but despite our best endeavours, the rate of decline in sales has been much more dramatic than projected.

'This has happened despite continued positive growth in visitation to Tasmania, when other states’ tourism has been static or in decline.

'This decision has been an extremely difficult one and in no way reflects on the exceptional contributions the Tasmania’s Temptations team have made to the organisation and industry.”

Further information: Rohan Wade (03) 6336 2443 or 0417 051 255