THE Federal Budget lived up to expectations for the Far North last night, offering hope for the tourism industry in a so-far quiet year.

Industry leaders were glad to see election promises of tax cuts upheld, saying it could encourage domestic holiday makers.

Advance Cairns interim chief executive officer Bill Calderwood said tax cuts could translate into people taking more holidays.

"Hopefully they’ll take them domestically rather than internationally," Mr Calderwood said.

He was also pleased the Government was addressing issues of affordable housing.

"I think it’s certainly a plus which can work in our benefit."

Plans to means test the baby bonus were also supported by local business representatives.

Cairns Chamber of Commerce president Jeremy Blockey said it was a socially responsible result.

"Someone on $150,000 doesn’t really need an extra $5000 in their pocket for prams and other baby equipment," Mr Blockey said.

"I think that’s a positive outcome."

Tourism Tropical North Queensland chief executive officer Rob Giason said he was encouraged by the commitment to provide $50 million in 2009-10 for export development grants.

"It gives us extra support in our efforts to market Cairns and the Great Barrier Reef," Mr Giason said.

He said the $200 million fund to protect the reef was also a good initiative.

"Supporting our icons, the reef and the rainforest, helps protect our national assets that play host to 2.2 million visitors per annum."

The Far North is expected to also benefit in areas of indigenous affairs and health, with $1.6 billion allocated for better and more remote housing in indigenous communities and $10 billion earmarked for hospital infrastructure and medical equipment.

Member for Leichhardt Jim Turnour said the Government had delivered a responsible Budget.

"It will not only help tackle inflation, but also help working families – those that really need a helping hand in the present economic climate," Mr Turnour said.

Member for Kennedy Bob Katter said commitments to roads infrastructure, trades training and housing would be well received.

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