Industry veteran Tony South has been selected as the new chairman of Tourism Australia, at a time when the sector is proving an increasingly important growth engine for the economy after the end of the mining boom. 
His appointment follows the departure of his predecessor, former Qantas Airways chief executive Geoff Dixon, when his term ended on   June 30.
Mr Dixon was given the role by the Rudd government in 2009. His tenure was marred by a very public falling out between him and Qantas chief executive Alan Joyce in 2012. That led the national carrier to pull all of its marketing spending from Tourism Australia and instead sign partnerships with individual states and territories.
However, Mr Joyce last month said he was interested in rebuilding relations with Tourism Australia when a new chairman was chosen, although the airline's spending levels would likely be lower than in the past because the deals with states and territories had proven effective.
Mr South, a chartered accountant with more than 40 years of experience mostly in the tourism, hospitality and leisure sectors, has served on the board of Tourism Australia since   July 2014. He has chaired the audit committee and has been acting as interim deputy chairman.
Tourism Australia managing director John O'Sullivan said he expected a smooth transition to the new chairman. "Tony is obviously well known to myself, Tourism Australia and to the broader Australian tourism industry, where he is well respected and will bring a wealth of valuable industry experience to the role," Mr O'Sullivan said.
Mr South's appointment was announced by Trade and Investment Minister Andrew Robb at industry group Tourism & Transport Forum's Federal Summit in Canberra on Wednesday. It came as a surprise to some in the tourism industry following speculation Transfield Services chairman Diane Smith-Gander was likely to be awarded the role.
Mr Robb said Mr South brought excellent skills and experience to the job after serving in roles with InterContinental Hotels Group Asia Pacific, Tourism NSW and TTF. "His long-standing commitment to tourism means he will provide strong leadership to the industry more broadly," Mr Robb said. Three new directors will be appointed to the Tourism Australia board in the near future, he added.
Mr Robb is responsible for tourism as part of his portfolio, but many industry players believe it would be more appropriate for the government to appoint a minister with tourism in the title to ensure it is viewed as high profile. "As an industry that employs nearly 1 million people and generates $100 billion in [annual] economic activity, tourism deserves to be acknowledged in cabinet," TTF chief executive Margy Osmond said.
"Tourism is a key economic portfolio and it must be given the attention that it needs. On the raw numbers, the sector is performing fairly well. But with the right policy settings in place, it could be doing so much better, which in turn would generate more economic activity and jobs."
The latest domestic visitor survey published by Tourism Research Australia found Australians spent $55.4 billion on domestic travel in the 12 months to   June 30, up 4 per cent from the prior year.