Tasmania’s tourism industry could soon have another ace up their sleeve, with the Rudd Labor Government agreeing to help construct the Three Capes Track through one of the world’s most spectacular wilderness areas.

We have set aside $12.5 million to make the Tasman Peninsula an even more desirable destination for both domestic and international tourists, subject to the State Government and private sector providing the balance of the funding.

The vision behind this public private partnership is an iconic, world-class bushwalking experience for seasoned walkers and guided groups.

Starting at White Beach and ending in Fortescue Bay, the Track would eventually stretch 68 kilometres taking in Cape Raoul, Cape Pillar, and Cape Hauy.

As well as building 30 kilometres of new track and upgrading 38 kilometres of existing track, the project would also construct accommodation huts and install water storage facilities along the route.

This project is a good example of our Economic Stimulus Plan at work creating jobs and economic activity in regional Australia. Over the past 18 months, the unemployment rate across southern Tasmania rose by 1.6 percentage points.

The project will support up to 164 jobs and traineeships during construction, while leaving behind new tourism infrastructure with the potential to increase visitor numbers by more than a quarter, and create hundreds of ongoing jobs in nearby townships such as Port Arthur, White Beach, Nubeena, Koonya and Premaydena.

Completion of the Three Capes Track would be a big win for Tasmania, transforming the Tasman National Park and injecting as much as $188 million into the State’s economy each year.

At a total cost of $33.4 million, the project’s remaining funding is expected to come from the State Government ($13.1 million) and private tourism operators ($7.8 million).

The upgrade of existing tracks could start as soon as next month, with the entire project to be completed by the end of 2012.