Tourism Trends

1. Tourism Trends Dianne Smith Chief Executive Victoria Tourism Industry Council

2. Tourism Trends Dianne Smith Chief Executive Victoria Tourism Industry Council

3. What we do • Advocacy and representation (research and submissions) • Industry & professional development, inc. National TEE Conference, quarterly forums (e.g. Trip Advisor, Myki), Tourism Awards workshops • Connect members with opportunities such as Enterprise Connect • Member services eg IR Helpline and communications • Networking events including Ministerial lunches, sector specific networking and end of year event. • Manage the Visitor Information Centre network. • We’re not a marketing/PR or a visitor information service

4. Business Events Victoria, Cultural Tourism Victoria

5. Tourism’s Contribution to the Australian Economy, 2010-2011 • Tourism Consumption Expenditure is $81.4 billion • Contributes $73.3 billion to Australia’s Gross Domestic Product; 5.2% of GDP • Employs over 900,000 people • Largest service export industry • Assists to fund economic developments in regional Australia and economic infrastructure, including airports, roads and hotels. • 46 cents in every tourism dollar is spent in the regions. • Source: Department of Resources, Energy and Tourism

6. In Victoria: • Tourism and Events industry = $17.3 billion • Over 200,000 jobs • Over 70,000 tourism businesses in Victoria

7. Tourism businesses in capital cities and regional areas, June 2011 Source: Tourism Research Australia – Tourism Businesses in Australia, June 2009 – June 2011

8. Potential growth The Australian Government’s Tourism 2020 strategy predicts that by 2020, the Australian Tourism industry will: • Achieve $115 billion - $140 billion in overnight spend In order to make this happen, we need: • 56,000 – 152,000 jobs to be filled • 40,000 – 70,000 new accommodation rooms • Aviation capacity to grow by 40-50% for international and 23-30% for domestic.

9. Top five international markets by arrivals - Victoria 18% average annual growth for China since 2000, compared to 3.2% for all international visitors Visitors (000s)

10. Growth in international visitation to regional Victoria 2012 6 of Victoria’s 10 regions have experienced a decline in international visitation over the past 12 months Percentage growth/decline

11. Headline results – Domestic • 12 year growth trend (2000 – 2012), domestic arrivals up 0.8% p/a. • Year ending September 2012, 2.6 million domestic visitors travelled in Victoria. • Year ending September 2012, over 12.5 million intrastate visitors to Victoria.

12. Demand-side factors • High Australian dollar • Value proposition of our competitive set • Events • Business events • Visas • Marketing campaigns

14. Supply-side factors • Demographic factors (ageing population, DINKS etc) • Labour and skills supply • Investment in infrastructure • Government support • Cost of doing business

15. Policy Issues • VCEC – allowing private investment in national parks and extended leases for Crown land • Planning reforms – legitimising tourism as a land use • Future of VICs – what is it? • Local council levies and how they’re calculated and distributed • Government resourcing • Importance of recognising value and potential of tourism and partnerships

16. Upcoming events • Tourism Awards Workshops • Bendigo 22/3), Waurn Ponds (18/3), • Lilydale, Melbourne (18-19 April – TBC) • MPs 4 Tourism • 15 April - Melbourne • ATEC ‘China Ready’ Program • 16 April – Melbourne • 17 April – Mornington Peninsula • 18 April – Ballarat • Tourism and Events Excellence Conference – Melbourne, 22/23 July 2013 • Victoria Tourism Week • 2-6 September (incl. The Amazing Race)