Virgin raises Tourism Australia spendings after Qantas cuts ties

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Virgin Australia has announced that it will double its joint marketing efforts with Tourism Australia, following rival Qantas's move to end its agreement with the organisation.

Virgin says that it will increase its spendings with Tourism Australia to Australian dollars (A$) 12 million ($12.7 million) over three years and will focus on key inbound visitor markets to Australia.

The Virgin announcement comes only weeks after Qantas announced that it was cutting ties with Tourism Australia, citing a conflict of interest as its chairman was linked to a consortium of investors looking to take a stake in the airline and force a change in strategy.

Qantas says the A$50 million it had been planning to spend in joint marketing with Tourism Australia over three years will instead be diverted to state-based tourism organisations.