THE INS AND OUT OF TASMANIA: TOURISM AND TRANSPORT

1. THE INS AND OUT OF TASMANIA:TOURISM AND TRANSPORT Australian Marketing Institute Regional Conference, Launceston 23-25 May 2007 JOHN LIVERMORE JOHN LIVERMORE ENTERPRISES WEBSITE: johnlivermore.com

2. A POLL OF 1000 TASMANIANS PUT TOURISM AHEAD OF FORESTRY - APRIL 2007 EMRS SURVEY • THE SURVEY FOUND THAT 51% FELT TOURISM HAD THE GREATEST POTENTIAL TO ECONOMIC DEVELOPMENT OVER FORESTRY AND AGRICULTURE TOGETHER • TOURISM GREW TO 800,000 VISITORS A YEAR PUTTING MORE THAN $1.2 BILLION INTO THE LOCAL ECONOMY AND EMPLOYING, DIRECTLY AND INDIRECTLY, 38,000 PEOPLE * • “ACHIEVING GREATER AIR AND SEA PASSENGER CAPACITY AND LOWER FARES AND BETTER ACCOMODATION FACILITIES AND ATTRACTIONS BY THE PRIVATE SECTOR HAVE BEEN THE DRIVING FORCE BEHIND ECONOMIC GROWTH” * *Daniel Leesong, CEO Tourism Industry Council April 16 2007 Press Release

3. TOURISTS SHARE TRAFFIC WITH B DOUBLES AND RELATED FORESTRY ACTIVITY AS THESE VEHICLES ARE PERMITTED ON MOST ROADS RANGING FROM THE MIDLAND AND BASS HIGHWAYS TO B AND C CLASS ROADS • THE PROPOSED GUNN’S PULP MILL WITHOUT THE USE OF RAIL FOR LOG HAULAGE WOULD PUT INCREASED B DOUBLES TRAFFIC THROUGH AREAS SUCH AS THE PIPER’S BROOK WINE ROUTE AND OTHER TOURIST LINKS IN TASMANIA (DERWENT VALLEY) • GUNN’S PREFERENCE IS TO USE RAIL FOR LOG TRANSPORT • THE EUROPEAN PULP MILL STUDY* NOTED THAT THERE WAS NO TRUCKING THROUGH MAJOR TOWNS IN THE COUNTRIES VISITED • LACK OF INVESTMENT IN RAIL UNTIL THE 2006 RAIL RESCUE PACKAGE HAS LEFT THE SYSTEM RUN DOWN AND NEEDING FURTHER FUNDS TO MAKE IT AN EFFICIENT ALTERNATIVE TO ROAD • The Study Tour included Jo Archer,CEO Launceston Chamber of Commerce, Doug Ling,Chief Engineer RACT, John Carswell and Richard Ireland,Northern Tasmania Development.

4. RAIL TOURISM HAS GREAT POTENTIAL IN TASMANIA- EG THE DERWENT VALLEY AND THE WEST COAST WILDERNESS RAILWAYS • THE DERWENT VALLEY RAILWAY CLOSED BY PACIFIC NATIONAL IN 2005 RECEIVED A $66,000 GRANT FROM THE TASMANIAN GOVERNMENT IN 2007 TO CLEAR DEBTS • MANAGEMENT AND ACCESS ARRANGEMENTS NEED STATE LEGISLATION BEFORE DVR RECOMMENCES SERVICES • PACIFIC NATIONAL REQUIRE PUBLIC LIABILITY COVER AS A CONDITION OF ACCESS WHICH DERWENT VALLEY RAILWAY VIEW AS BEYOND ITS FINANCIAL CAPACITY • DVR WANTS TO LEASE THE LINE WEST OF BOYER DIRECTLY FROM THE STATE GOVERNMENT • TO RESTORE THE LINE TO OPERATEUP TO MAYDENA (WHERE FORESTRY ARE SETTING UP A TOURIST ATTRACTION -THE HAULER) WOULD COST ABOUT $ 14 MILLION

5. BY CONTRAST THE OLD ABT RAILWAY FROM QUEENSTOWN TO STRAHAN FIRST OPENED IN 1897 • NOW AS THE WEST COAST WILDERNESS RAILWAY IT CARRIES 50,000 VISITORS A YEAR • IN 1998 THE FEDERAL GOVERNMENT MADE A $20.45 MILLION GRANT TO START RESTORATION AND THE WILDERNESS RAILWAY OPENED IN 2000 WITH FULL LINK TO STRAHAN IN 2002

6. “WE HAVE MADE A BRAVE ATTEMPT AT MAKING THE SYDNEY SHIP WORK AND THERE IS STRONG EVIDENCE THAT IT HAS GONE SOME WAY TO ACHIEVING THE BOLD NEW TARGETS WE SET FOR TASMANIAN TOURISM” - PREMIER LENNON (28/5/06) • TT LINE OFFICIALS TOLD A GBE HEARING IN 2006 THE SYDNEY-DEVONPORT FERRY (SPIRIT 3) WOULD LOSE $25 MILLION IN 2006 AND $12-17 MILLION IN 2007 • THE TASMANIAN CABINET ON JUNE 5 2006 DECIDED TO AXE THE SPIRIT 3 SERVICE • SUBSEQUENTLY A TASMANIAN GOVERNMENT $16 MILLION PACKAGE WAS SET UP TO ASSIST TOURISM IN THE NORTH WEST • THE TT LINE CONTINUES TO RUNA STRONG MARKETING CAMPAIGN WITH GEOFF COX (COXY) TRAVEL IDENTITY AND ICON TO PROMOTE TRAVEL TO TASMANIA

7. 80% OF ALL PASSENGERS ENTERING OR LEAVING TASMANIA TRAVEL BY AIR • THE INTRODUCTION OF CUTPRICE FARES,THE ENTRY OF VIRGIN BLUE AND JETSTAR INTO THE TASMANIAN MARKET ALL PROVIDED ADDITIONAL CAPACITY • HOBART INTERNATIONAL AIRPORT HAS NO DIRECT SCHEDULED INTERNATIONAL FLIGHTS • WHEN THE HOBART-CHRISTCHURCH LINK WAS WITHDRAWN IN 1996 AIR NEW ZEALAND AND QUANTAS HAD PASSENGER LOADINGS OF 80% OVER THE PERIOD OF THE LINK’S OPERATION (1991-1996) • IN 1995 PROFESSOR KISSLING, HEAD OF TRANSPORT STUDIES AT LINCOLN UNIVERSITY AND I DISCUSSED THE POTENTIAL FOR BOTH TASMANIA AND SOUTH ISLAND AS TRANSIT POINTS FOR A CLOCKWISE FLOW OF PASSENGERS INTO CHRISTCHURCH FROM NORTH ASIA AND NORTH AMERICA TO HOBART AND OUT VIA MELBOURNE/SYDNEY/BRISBANE TO AUCKLAND/WELLINGTON • CO-MARKETING OF TASMANIA AND NEW ZEALAND MARKETS WHICH BOTH USE CLEAN AND GREEN AND PURE NEW ZEALAND AS THEIR RESPECTIVE BRANDS HAS POTENTIAL TO BOOST DESTINATION TOURISTS IN BOTH LOCATIONS • THE TASMANIAN VISITOR SURVEY SHOWS THAT IN 2006 7,000 NEW ZEALANDERS RETURNED AND 6,565 TASMANIANS TRAVELLED TO NEW ZEALAND FROM HOBART INTERNATIONAL AIRPORT

8. 13,000 PASSENGERS TO NEW ZEALAND IN 2006 WOULD JUSTIFY THE INTEREST A NEW ZEALAND BUDGET CARRIER HAS IN REINSTATING THE MISSING LINK • TOURISM TASMANIA IS FOCUSED ON LENGTH OF STAY AND REGIONAL DISPERSAL OF VISITORS AS PART OF ITS CONTRIBUTION TO THE TASMANIAN ECONOMY • TOURISM TASMANIA DOES NOT REGARD STOPOVERS OF GREAT BENEFIT TO TOURISM • SUPPORT FOR A FEASIBILITY STUDY INTO A REVIVED HOBART-NEW ZEALAND LINK COMES FROM ROD MCGUIRE, TASMANIAN FREIGHT LOGISTICS COUNCIL, WALTER GLASS CEO, CORPORATE LOGISTICS NZ, WAYNE TUCKER CEO, HOBART INTERNATIONAL AIRPORT • KIWIJET AIRLINE ANNOUNCED ON MAY 5 THAT IT’S ROUTE PLANS INCLUDE CHRISTCHURCH-HOBART • HOWEVER, WAYNE TUCKER REGARDS THE HOBART-AUCKLAND ROUTE AS MORE VIABLE

9. Acknowledgements: Stephen Hayes, Tourism Tasmania; Tony Coen, Operations Manager, Derwent Valley Railway; Paula Catchpole, Public Relations Manager, Federal Group; Robert Noga, Hobart International Airport; Graham Elphinstone, CEO Elphinstone Engineering, Triabunna. THE INS AND OUTS OF TASMANIA: TOURISM AND TRANSPORT AUSTRALIAN MARKETING INSTITUTE REGIONAL CONFERENCE, LAUNCESTON 23-25 MAY 2007-05-16 JOHN LIVERMORE JOHN LIVERMORE ENTERPRISES WEBSITE: johnlivermore.com