August 2014

WA Tourism Industry Scorecard

Prepared by:

Research

Tourism Western Australia

ANZ-Roy Morgan Domestic Consumer Confidence

Consumer Confidence in Australia has stabilised near it’s long-term average level in August. ANZ-Roy Morgan predicts that consumer

spending will remain moderate throughout the remainder of 2014, before increasing in 2015.

Sources: www.roymorgan.com.au , ANZ-Roy Morgan Consumer Confidence, (n=~1,000 interviews per week)

80

85

90

95

100

105

110

115

120

125

130

135

JFMAMJJ ASONDJFMAMJ JASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJ AugSepOctNovDecJanFebMar AprMayJune

JulyAug

CO

NS

UM

ER

CO

NF

IDE

NC

E

August 16/17, 2014

(112.5 points, down 6.9pts

from the same week in 2013)

2008 2009 2010

Base: Australians aged 14+

2011 2012 2013 2014

Domestic Travel through Perth Airport

The number of passengers travelling on intrastate flights in and out of Perth Airport in July 2014 was (+) 4.2% greater than

the same month last year. Alternatively, the number of passengers travelling on interstate flights declined by (-) 3.6%.

Year to date (YTD) PAX for the intrastate market is in line with the same period in 2013, while YTD interstate PAX numbers

are (-) 1.2% behind the same time period last year. This is an unusual trend for the interstate market, which has been

trending upwards over the past ten years.

Source: Perth Airport Pty Ltd

PAX = All passenger movement, including inbound and outbound.

Interstate

PAX -3.6% -1.2%

Intrastate

PAX +4.2% +0.6%

Indicator

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0

100,000

200,000

300,000

400,000

500,000

600,000

Month

ly P

AX

Intrastate Interstate

International Travel through Perth Airport

Alternative to the inbound domestic market, foreign national arrivals into Perth Airport continue to grow significantly.

Both foreign national arrivals and PAX show strong growth for the YTD (+8.4% and +9.0% respectively).

Source: Perth Airport Pty Ltd

PAX = All passenger movement, including inbound and outbound.

Foreign nationals: International passengers who did not travel on an Australian passport.

PAX +9.7% +9.0%

Arrivals +12.8% +8.4%

Indicator

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0

50,000

100,000

150,000

200,000

250,000

Month

ly P

AX

Arrivals PAX

Foreign National Arrivals - Long Haul (Asia)

As visually evident in the chart above, July is typically a high period for arrivals into Perth from China and Korea, and the

pattern continued in July 2014. China performed particularly strongly in July 2014, with growth (+) 15.8% from July 2013.

Arrivals from each of the key long haul Asian markets show positive YTD growth, particularly China which shows YTD

growth of 11.5% compared to the same time period last year.

Source: Perth Airport Pty Ltd

Korea +7.1% +7.5%

China +15.8% +11.5%

Japan +7.8% +6.1%

Country

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Month

ly A

rriv

als

China South Korea Japan

Foreign National Arrivals - Long Haul (Europe & USA)

In July 2014, there were (-) 2.6% less UK arrivals into Perth Airport than in the same month the year prior. YTD arrivals from

the UK shows negative growth of (-) 1.0%.

USA and Germany arrivals were relatively consistent in July 2014 with the number seen in July 2013. Both markets are

showing positive YTD growth in arrivals of (+) 5.8% and (+) 4.1% respectively.

Source: Perth Airport Pty Ltd

USA +0.7% +5.8%

Germany +1.4% +4.1%

UK -2.6% -1.0%

Country

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0

5,000

10,000

15,000

20,000

25,000

30,000

Month

ly A

rriv

als

Germany USA UK

Foreign National Arrivals - Short Haul

The number of Malaysian arrivals grew significantly in July 2014 compared to July 2013, up (+) 63.8%. This is likely a

reflection of increased capacity, with low cost carrier AirAsia X doubling their services from Kuala Lumpur to Perth from 7 per

week in July 2013 to 14 per week in July 2014.

The number of Singaporean arrivals also increased significantly, up (+) 36.1% in July 2014 from July 2013. The introduction

of 5 flights per week from Singapore to Perth operated by low cost carrier, Scoot, has likely contributed to this increase.

The number of New Zealand arrivals continues to grow, increasing by (+) 4.2% from July 2013 to July 2014.

Source: Perth Airport Pty Ltd

Singapore +36.1% +36.0%

NZ +4.2% +12.7%

Malaysia +63.8% +23.4%

Country

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

Month

ly P

AX

New Zealand Singapore Malaysia

Foreign National Travel – Long Haul (Asia)

Total PAX for the key long haul Asian markets of China and Japan grew significantly in July 2014 compared to July 2013,

with growth of (+) 14.8% and (+) 9.2% respectively.

Each of the key long haul Asian markets show strong growth in YTD July 2014 compared to YTD July 2013.

Source: Perth Airport Pty Ltd

PAX = All passenger movement, including inbound and outbound.

Korea +2.8% +11.1%

China +14.8% +12.2%

Japan +9.2% +7.2%

Country

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0

2,000

4,000

6,000

8,000

10,000

12,000

Month

ly P

AX

China South Korea Japan

Foreign National Travel – Long Haul (Europe & USA)

Total PAX for the UK and Germany markets declined from July 2013 to July 2014 by (-) 4.0% and (-) 4.3% respectively,

while total PAX for the USA market remained stable.

Total PAX results for Germany and the USA are showing positive YTD growth of (+) 4.6% and (+) 5.4% respectively, while

the UK PAX YTD result is stable (+0.6%).

Source: Perth Airport Pty Ltd

PAX = All passenger movement, including inbound and outbound.

USA +0.8% +5.4%

Germany -4.3% +4.6%

UK -4.0% +0.6%

Country

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Month

ly P

AX

Germany USA UK

Foreign National Travel – Short Haul

Total foreign national PAX for the short haul markets of Malaysia and Singapore grew significantly in July 2014 compared to

the same month in 2013, with growth of (+) 53.2%, and (+) 33.6% respectively.

Each of the key short haul markets are showing positive YTD growth in total PAX.

Source: Perth Airport Pty Ltd

PAX = All passenger movement, including inbound and outbound.

Singapore +33.6% +36.9%

NZ +3.8% +12.8%

Malaysia +53.2% +22.7%

Country

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0

5,000

10,000

15,000

20,000

25,000

Month

ly P

AX

New Zealand Singapore Malaysia

WA vs. Australia - Foreign National Arrivals (Monthly Data - % Change June 2013 to June 2014)

The number of foreign national arrivals to WA in June 2014 compared to June 2013 was down (-) 1%, behind the national

average which grew (+) 2%.

WA outperformed the national average in growth from the Singapore market, but was behind the national average for all

markets that saw growth. The negative growth in arrivals from the UK applies to the whole of Australia, not only WA.

Sources:

• Australia data: Tourism WA’s analysis of Overseas Arrivals and Departures, Australian Bureau of Statistics (compiled from

administrative data provided by Department of Immigration and Border Protection). Data provided two months in arrears.

• WA data: Perth Airport Pty Ltd

3%

-23%

4%

36%

-3%

39%

-8%

-20%

6%

-1%

17%

-13%

7%

63%

3%

15%

-13%

-40%

3% 2%

-60%

-40%

-20%

0%

20%

40%

60%

80%

China Germany Japan Malaysia New Zealand Singapore South Korea UK USA ForeignNationals

WA Australia

WA vs. Australia - Foreign National Arrivals (Year to Date Data - % Change Jan-June 2013 to Jan-June 2014)

Growth in foreign national arrivals to WA for YTD June 2014 is on par with the national average (8% growth for WA, 9%

growth for Australia).

WA is significantly outperforming Australia in growth from New Zealand, Singapore, and South Korea.

Sources:

• Australia data: Tourism WA’s analysis of Overseas Arrivals and Departures, Australian Bureau of Statistics (compiled from

administrative data provided by Department of Immigration and Border Protection). Data provided two months in arrears.

• WA data: Perth Airport Pty Ltd

10%

5% 6%

18%

14%

36%

8%

-1%

7% 8%

14% 12%

0%

30%

6%

18%

2% 2%

11% 9%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

China Germany Japan Malaysia New Zealand Singapore South Korea UK USA ForeignNationals

WA Australia

Perth Accommodation – Occupancy Rates (June 2014)

The occupancy rate in July 2014 in Perth CBD was 6.4% greater than the same month the year prior. This is the largest

growth in occupancy rate we’ve seen January 2012 compared to January 20111.

Average occupancy in Perth CBD for the YTD is on par with the same time period last year.

Source: STR Global (STR Global sample size increased from n=18 to n=21 Perth CBD hotels in December 2010).

Occupancy +6.4% +0.6%

Indicator

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Month

ly O

ccupancy R

ate

s

Perth Accommodation – Yield (May 2014)

From July 2013 to July 2014, the ADR of Perth CBD hotels declined by (-) 4.9% to $198.68. Despite this, the RevPAR grew

from July 2013 to July 2014 due to strong growth in occupancy rates over the same time period.

Both ADR and RevPAR are showing negative YTD growth of (-) 5.8% and (-) 5.3% respectively.

Source: STR Global (STR Global sample size increased from n=18 to n=21 Perth CBD hotels in December 2010.)

• RevPAR refers to Revenue Per Available Room. RevPAR is a calculation of room revenue divided by rooms available

(occupancy times average room rate will closely approximate RevPAR).

• ADR refers to Average Daily Rate.

RevPAR +1.2% -5.3%

ADR -4.9% -5.8%

Indicator

% Change

Jul 2013 vs.

Jul 2014

% Change

Jan-Jul 13 vs.

Jan-Jul 14

$0

$50

$100

$150

$200

$250

$300

Month

ly R

ate

s

ADR RevPAR

State Government lands Chinese airline deal

AUG 1: The State Government has signed a new three-year cooperative marketing agreement with China Southern Airlines.

Tourism Minister Liza Harvey said the deal followed strong growth in the Chinese tourist market since the first agreement was

signed with the airline in May 2011.

• http://www.mediastatements.wa.gov.au/pages/StatementDetails.aspx?listName=StatementsBarnett&StatId=8511

Giant-killer Kyrgios to play Hopman Cup

AUG 12: The State Government has signed a new three-year sponsorship deal for Western Australia’s international tennis

tournament the Hopman Cup. The deal includes an option for a further five years, securing the event for WA until 2022.

• http://www.mediastatements.wa.gov.au/pages/StatementDetails.aspx?listName=StatementsBarnett&StatId=8537

Broome to welcome Australian music legend

AUG 8: One of Australia’s greatest singers, songwriters and performers, Paul Kelly, will headline the Cable Sounds Concert

on Sunday to celebrate the beginning of Broome Cup Week.

• http://www.mediastatements.wa.gov.au/pages/StatementDetails.aspx?listName=StatementsBarnett&StatId=8530

New deal helps fashion festival make a splash

AUG 4: Telstra Perth Fashion Festival has secured a three-year sponsorship deal with the State Government through

Tourism WA.

• http://www.mediastatements.wa.gov.au/pages/StatementDetails.aspx?listName=StatementsBarnett&StatId=8515

Published Tourism Reports and Media Statements