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Tourism Growth Potential: Targeting Emerging Markets

Andrew McEvoy Tourism Australia Managing Director

Today

• Tourism in Australia has ambition

• Setting goals for growth

• What will get us there?–The markets–The access–The product–The marketing / distribution

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The 2020 Tourism Industry Potential

• Why a goal? Galvanises industry and all levels of government to work together to become more competitive.

• The "Missing Piece"

Identified in the Jackson Report, the "missing piece" of the National Long-Term Tourism Strategy.

• Market opportunity and improvements in performance. Strategies (both demand and supply) need to be developed to achieve the Australian tourism potential.

• Staying Ahead of Our Competitors

World tourism is growing rapidly but the competition has never been greater.

What would it look like?

$115-$140B overnight tourism expenditure

Domestic Vs International$Expenditure

Where will the growth come from?

TOTAL SPEND: 2009 TO 2020

What will get us there?

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The Access

• Inbound seats +40-50%

• Domestic seats +23-30%

• Airport master plans / forward orders of aircraft

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The Access

• Growth of Middle Eastern carriers

• Growth of Chinese carriers

• Low cost growth–e.g. Air Asia X

Air Access - Malaysia

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Air Access - Malaysia

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What will get us there?

The Product

• 40,000 new capital city beds (Access Economics)

• At better yields

• In regional Australia –no new beds / just better–Signature accommodation and

attractions

• New news and appeal

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The Product

Australian accommodation supply has grown significantly in recent years

Since 1998 the number of rooms has grown by 32% or 55k rooms

Australian Room Supply000’s of rooms in Hotels / Motels / Serviced Apartments

Derived by BDA from ABS 8635.0 (15+ room establishments)

160

170

180

190

200

210

220

230

240

Dec

97

Jun

98D

ec 9

8Ju

n 99

Dec

99

Jun

00D

ec 0

0Ju

n 01

Dec

01

Jun

02D

ec 0

2Ju

n 03

Dec

03

Jun

04D

ec 0

4Ju

n 05

Dec

05

Jun

06D

ec 0

6Ju

n 07

Dec

07

Jun

08D

ec 0

8Ju

n 09

Dec

09

Jun

10D

ec 1

0

The Product

• Signature accommodation

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Qualia

Southern Ocean Lodge

Saffire

The Product• Signature accommodation

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What will get us there?

The marketing / distribution

• There’s Nothing Like Australia–Campaign–High impact demonstration (e.g.

Oprah)

• Digital / Social–The battleground–Australia well placed

Our marketing

Today

• Australian tourism has ambition

• Requires absolute focus

• Requires positive commitment and action

• Success will breed success

• Competitive approach required

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