Tourism Australia, the government agency charged with overseas tourism marketing, has been hammered after an wide-ranging audit revealed its procurement and contract managing arrangements are flawed.
Auditors revealed that of a total A$266 million (US$168 million) in contracts between July 2021 and June 2024, more than two-thirds "did not involve open competition”. Tourism Australia tended to stick with existing or previous suppliers.
Further, most of those contracts did not achieve "value for money”, and did not treat suppliers fairly.
Other concerns identified by the auditors report:
Tourism Australia did not include clear performance requirements in contracts and failed to monitor contractor performance.
There were possible conflicts of interest in cases where tourism office workers had previously worked for a company tendering for a contract.
Tourism office workers had received gifts and benefits, including sponsored travel, without seeking the approvals required under Tourism Australia's regulations.
Tourism Australia used a list of ‘Friends’ 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.
Tourism Australia said it is “fully committed” to implementing the report’s nine recommendations.
This includes enhancing the agency’s records management framework and processes, implementing a new procurement and contract management system and adding resources to its corporate services teams.
In August this year, Phillipa Harrison was reappointed as managing director of Tourism Australia. She is due to continue her leadership role until 2029.