General Policy Principles

Policies for a sustainable Tourism Industry

Overview Given the size and diversity, and domestic and international nature of the tourism industry, businesses in tourism are impacted by a broad range of domestic and foreign policy. From business development and industry policy to conservation and environment issues; and from aviation and transport policy to cultural affairs, tourism's competitiveness and contribution depend on the ability of tourism businesses to get on with the business of tourism. TIANZ's position is based on the broad principle that the role of government in the economy and business is to shape and deliver a policy and regulatory environment that enables profitable and sustainable growth. TIANZ acknowledges that sustainable growth is by definition also linked to Government's broader social, environmental and other policy objectives.

Beyond shaping the business environment, direct Government intervention can be justified:

•	In cases of market failure.
•	On the existence of a public good.
•	In areas that represent a core role of State.

Government intervention involves both benefits and costs. TIANZ advocates that Government should minimise the costs involved in achieving their objectives. The benefits arising from any intervention should exceed the related costs.

The benefits and costs associated with the Government's role in the economy can be measured in terms of:

•	Economic growth - for example, whether the policies and/or interventions support or suppress growth;
•	Efficiency - whether the policies and/or interventions improve or impede economic efficiency; and
•	Equity - whether the policies and/or interventions promote equitable or inequitable outcomes.