singapore hotel: Government spends for international flights to Canberra

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The fund will support destination marketing campaigns designed by Tourism Australia and VisitCanberra if a deal can be signed with an airline.

During a tour of Singapore and Hong Kong next month, Mr Barr hopes to continue discussions with the government-owned Singapore Airlines. Previous discussions have also included Air New Zealand, Qantas, Virgin, Emirates and Etihad Airways.

He has previously said passenger demand could justify a daily flight from Singapore with capacity for about 230 passengers, including 30 business class seats.

Funding for overseas marketing is designed to support investment in Canberra Airport and signal the government’s long-term commitment to route development with international carriers.

A further $750,000 will be spent to support the government’s Tourism 2020 strategy, which includes improvements for conference delegates, promotional materials and new entry signage at the ACT border to align with the Brand Canberra initiative.

Long mooted by the government, international flights would provide a boost to Canberra Airport, which had a 12 per cent decline in passenger numbers between January 2011 and December 2013.

A new $50 million, 191-room hotel is set to be built 150 metres from the terminal, with construction due for completion in October next year.

Canberra Airport Group chief Stephen Byron joined Mr Barr for meetings with government and airline executives in Singapore last year, and says there is sufficient demand from Australia’s capital city and surrounding region to fill seats.

The upgraded airport could act as a hub for flights to Asia and even the US before Sydney’s second airport at Badgerys Creek becomes operational in a decade.

The feasibility of international flights to Canberra has often been measured against Adelaide, with its population of 1.2 million and more than 30 direct international flights each week.

Tourism Australia’s most recent International Visitor Survey showed that 181,686 overseas residents arrived in the ACT in 2013, including a more than 37 per cent increase in visitors from Singapore, Malaysia, Thailand or Hong Kong on the previous year.

The survey also showed a 19 per cent increase in travel from New Zealand.

Despite a 12 per cent increase in overall international visits to Canberra last year, spending by overseas tourists fell by $33 million.