Tourism Australia
Annual Report
2009-2010
The Hon. Martin Ferguson AM MP
Minister for Resources, Energy and Tourism
Parliament House
Canberra ACT 2600
15 October 2010
Dear Minister,
I have pleasure in presenting the sixth annual report of
Tourism Australia, for the reporting period 1 July 2009 to
30 June 2010.
The report has been prepared in accordance with clause
39 of the Tourism Australia Act 2004 and section 9 of the
Commonwealth Authorities and Companies Act 1997 and
in accordance with the Finance Minister’s Orders.
Yours sincerely,
Geoff Dixon
Chairman
Tourism Australia
Cover: Kooljaman at Cape Leveque, Bardi People. Owned by Ardyaloon
(One Arm Point) and Djarindjin Communities, Dampier Peninsula north
of Broome, WA.
Photography: James Fisher
2 International
Operations
Contents
Chairman’s Report
2
International Operations
38
Managing Director’s Report
4
International Operations Overview
39
8
International Markets
40
There’s Nothing Like Australia 10
United States of America
41
Connecting to Consumers
12
Canada
42
Australia’s National Landscapes
14
Latin America
43
No Leave No Life
16
United Kingdom
44
Corporate Governance
18
Ireland
45
Sustainability 21
France
46
Australian Operations
22
Germany
47
Australian Operations Overview
23
Italy
48
Marketing
24
Netherlands
49
Consumer Marketing
25
Spain
50
Domestic Marketing
27
Switzerland
51
Trade Marketing
28
Nordic countries
52
Global Trade Events
30
Russia
53
Global Public Relations
31
New Zealand
54
Business Events Australia
32
South Africa
55
Corporate
33
Japan
56
Finance & Procurement
34
Hong Kong
59
Legal Services
34
China
60
Corporate Technology 35
South Korea
61
Strategy & Research
35
Taiwan
62
People & Culture
36
Malaysia
63
Corporate Communications
37
Singapore
64
India
65
Indonesia 66
Thailand
66
Vietnam
66
Gulf countries
66
Financial Statements
67
Notes to the Financial Statements
78
Performance – Outcomes and Programs
Glossary
105
Index
106
Contacting Tourism Australia
108
2009–2010 ANNUAL REPORT 1
Chairman’s Report
In the 2009/10 financial year there were promising signs
that recovery was on the way for the broader economy and
for the Australian tourism industry, after a difficult year in
2008/09.
Early in the year I said that while the economic outlook was
not rosy, I was confident that Australia’s enduring appeal
– our landscapes, our people and our lifestyle – would
continue to find currency around the world, providing a
strong base from which we could aim for further growth
in the future.
“Over the past year
we have pursued new
approaches in our
marketing and embraced
new tools, technologies
and channels in
our campaigns.”
2 Chairman’s Report
Over the past year we have pursued new approaches in
our marketing and embraced new tools, technologies and
channels in our campaigns, our engagement with industry
and our advocacy of Australia. At the fore of this was
the launch in March 2010 of our new global campaign –
There’s Nothing Like Australia.
This campaign has brought together traditional
broadcast video and print channels with digital tools,
such as web-based banner and video advertising,
social media advocacy and the campaign’s interactive
flagship – nothinglikeaustralia.com. This campaign
has been strongly supported by our constituents, with
industry endorsing its longevity and flexibility and
the Australian community uploading some 30,000
images and stories about their favourite Australian
holiday experiences to share with the world.
The new global campaign also complements our
domestic focus through the No Leave No Life campaign,
which has continued to make inroads into Australia’s
annual leave stockpile. The outstanding leave balance
now stands at 117 million days, an impressive reduction
from its peak of 126 million days at 30 June 2009.
However, changing leave-taking behaviour is only
one half of the battle. The lure of highly competitive
overseas holiday packages, a strong Australian dollar
and cheap international flights is an ever-present
challenge for Tourism Australia’s domestic marketing.
In the last 12 months, we increased our focus on personal
advocacy through the launch of the Friends of Australia
program in early 2010. The program aims to spread the word
that Australia is a great place to have a holiday. Our ‘friends’
from Australia and overseas are a group of influential high
achievers and opinion leaders, who share a passion for
travelling in Australia and who are committed to supporting
and enhancing our outstanding tourism reputation.
We also expanded our Visiting Opinion Leader Program,
bringing internationally renowned bloggers to Australia,
who then shared their experiences worldwide. In addition,
our Facebook site steadily increased its ‘fans’ to more than
450,000 by year end. Our micro-blogging site on Twitter
has also attracted 7,000 followers. By continuing a strong
commitment to social media and offering credible and
interactive conversations with consumers, we will see
increasingly positive results from all of these channels.
In December, we announced our Indigenous Tourism
Champions program, with 20 Indigenous small businesses
chosen to champion Indigenous tourism in Australia.
The program provides intensive mentoring and training
for these businesses, aimed at enhancing the tourism
products and experiences they offer to domestic and
international visitors, and strengthening their key
relationships with inbound operators and wholesale
buyers who sell Australian holidays to the world.
It has been my privilege to serve as Chairman over the
past three years, including as Executive Chairman in the
first seven months of this financial year. This gave me the
opportunity to work more closely with our management
team and industry partners.
I thank my Board colleagues and all of the staff for their
support during my term. I believe that over the last three
years we have seen Tourism Australia develop into a more
responsive, focussed and achievement-oriented organisation.
The Board is delighted to have Andrew McEvoy as its new
Managing Director, and is are sure that Andrew and his
experienced management team will be doing everything
they can to secure a bright future for Australian tourism.
As my term has come to an end, I am convinced more
than ever that there is nothing like Australia; and there is
nothing like Tourism Australia and its dedicated staff to
take this message to the world.
Rick Allert AO
Chairman
Over the reporting period, Tourism Australia has continued
to fulfil its governance obligations under the Tourism
Australia Act 2004 and the Commonwealth Authorities and
Companies Act 1997. One of our obligations is to review our
fraud control arrangements every two years. Accordingly,
in early 2010 we undertook this review with the aid of our
internal auditors. Subsequently, the Board is satisfied that
Tourism Australia has prepared a fraud risk assessment
and fraud control plan, and has in place appropriate
fraud prevention, detection, investigation, reporting and
data collection procedures and processes that meet the
specific needs of Tourism Australia and comply with the
Commonwealth Fraud Control Guidelines 2002.
2009–2010 ANNUAL REPORT 3
Managing Director’s Report
I have a strong recollection of the weeks leading up
to my joining Tourism Australia as Managing Director
in January 2010. With the industry having faced and
stood up to another unavoidable shock – the global
financial crisis – we were all approaching 2010 with
some trepidation.
But it is my strong belief that the organisation has
worked hard alongside industry in these difficult
conditions to deliver global benchmark results in
2009/10. And as the year progresses, we are seeing
signs of a return to growth and a more positive outlook.
“Extremely important
to our collective success
is our engagement with
the tourism industry.”
Tourism Australia’s aim was to work with industry to
remain competitive during the worst of the global
financial crisis and, since then, to ‘pour water on the
green shoots of recovery’. The best example of this was
the launch of the global campaign – There’s Nothing
Like Australia – in March to Australian consumers, and
in May to the Australian and global industry during the
Australian Tourism Exchange in Adelaide.
The global tourism industry faced one of its toughest
years in 2009, with visitor numbers dropping by 4 per
cent across the world. Australia remained level over
the same period and finished 2009/10 with a 3 per
cent increase in visitor arrivals. Hardest hit was the
corporate travel sector, including business events.
Meanwhile, markets such as Japan experienced the
double blow of H1N1 influenza and the global financial
crisis, bringing to a halt the number of school groups
that would normally travel here at the end of the
calendar year.
On the domestic tourism front, trips and yield
remained stagnant as many Australians took
advantage of competitive overseas airfares.
However, there are signs the industry is recovering.
Visitor arrivals are increasing, the corporate meetings
and incentives market is growing steadily and there is
a real feeling of positivity and confidence among local
tourism operators.
As I mentioned above, we launched the There’s Nothing
Like Australia campaign in March 2010. It is a global
idea that can be adapted for the best possible effect
locally, and is also available to major industry partners
here and overseas. It was built from two key insights:
4 Managing Director’s Report
• The world travels to experience difference and the
tagline forces us all to accentuate what is different and
worth visiting about Australia; and
• Australians know and love their country and want to be
involved in inviting the world to see it. This manifests
itself through the social advocacy (word-of-mouth)
aspect of the campaign.
The campaign began well with almost 30,000
Australians uploading their 25 words and images of
Australia – each one a personal postcard to the world
to visit ‘Down Under’. This helped create an interactive
map tagged with more than 1,000 search words. A
total of 3,500 of the best entries have been translated
into 16 languages and form the heart of campaign
sites all around the world.
The aim is to get travellers to vote on their favourite
Australian destination or upload their own personal
image and story. In this way, Tourism Australia is
tapping into the social media phenomenon and the
use of advocacy to encourage travel to and through this
great country. A good example of this social advocacy
is the more than 450,000 people who have joined our
Facebook fan page at 30 June 2010. Membership has
since climbed to over 700,000 – growing by about
40,000 fans a week!
The corporate meetings, incentives, conferences and
events market has experienced a revival in recent
months. Tourism Australia has forged a three-year
partnership with the Association of Australian
Convention Bureaux to seek out new leads to add value
in this area. We will continue to lead a Team Australia
approach in the Business Events sector and aim to
generate new business opportunities, particularly with
corporate meetings and incentives.
With the campaign launch over, now comes the hard
work. Over the next two to three years, Tourism Australia
will actively partner with airlines, hotels, tourism
operators, business associations, State and Territory
tourism bodies, and travel wholesalers and distributors
to market Australia to the world. And it must be based
on a collective goal – work we have undertaken with
the Department of Resources, Energy and Tourism and
Australian industry over the past six months.
Nurturing the ‘green shoots of recovery’ has helped
Tourism Australia to better engage with the local and
global tourism industry. There is new-found confidence
in the organisation among our industry partners. Their
support for There’s Nothing Like Australia will ensure the
message is heard far and wide, and will help us meet
our goals.
Extremely important to our collective success is our
engagement with the tourism industry. An example
of this is the way the new campaign was launched.
In the lead-up to its launch, Tourism Australia briefed
more than 2,000 operators on the tagline and the tools
that would be available for use – with very positive
results. Similarly, when we launched the campaign at
the Australian Tourism Exchange event, around 2,200
delegates from 40 countries spontaneously applauded.
It’s heartening to know our local and international
partners understand and believe in the campaign.
More importantly, they are using the campaign –
directly or in partnership with Tourism Australia.
The first six months of my tenure have been exciting,
challenging and inspiring. I would like to thank
the Tourism Australia executive team and staff in
Australia and overseas for their contributions in
2009/10. Australia remains an alluring destination
for individuals and businesses. With the right people
and partnerships in place, I’m confident our tourism
industry will thrive once again.
On the domestic front, the level of support for There’s
Nothing Like Australia shows there is real interest from
Australians in their own country. The campaign, along
with the ongoing No Leave No Life initiative – which
encourages Australians to use some of their 117 million
days of stockpiled annual leave – is inspiring more people
to have another look at their spectacular backyard.
Andrew McEvoy
Managing Director
2009–2010 ANNUAL REPORT 5
6 Kooljaman at Cape Leveque, Bardi People. Owned by Ardyaloon and Djarindjin Communities, Dampier Peninsula, WA. Photography: James Fisher
2009–2010 ANNUAL REPORT 7
Performance – Outcomes and Programs
The Australian Government requires agencies to
measure their intended and actual performance in
terms of outcomes, which are the results, impacts or
consequences of actions by the Government on the
Australian community. Agencies are required to identify
the programs that demonstrate their contribution to
Government outcomes. Tourism Australia’s Outcome
Statement and the programs that delivered on its
outcomes are provided below.
On the following page, each program area, associated
performance indicators, targets and 2009/10 results
are provided.
Tourism Australia’s Outcome Statement for 2009/10
as approved by the Government is as follows:
• Increase demand for Australia as a destination
Tourism Australia’s programs for 2009/10 were
as follows:
• Industry development:
Contribute to the development of a sustainable
tourism industry through stakeholder engagement and
provision of insights to assist strategic decision making.
• Strengthen the travel distribution system:
Educate trade partners to improve sales capability,
facilitate engagement and business between
Australian tourism products and the distribution
network, and motivate and inspire consumers through
quality content.
• Increase demand for Australia as a destination:
Build Australia’s profile and reputation as an exciting
and desirable leisure and business events destination,
driving demand and subsequently visitation.
• Strengthen the travel distribution system
• Contribute to the development of a sustainable
tourism industry through consumer marketing,
trade development and research activities.
Program: Industry development
Key Performance Indicator
2009/10 Target
2009/10 Results
% of stakeholders indicating Tourism
Australia (TA) helps their business
At least 75% of stakeholder
respondents rate TA functions as
excellent, very good or good value to
their business
81% of stakeholders rated TA
functions as good, very good
or excellent
(Stakeholder survey conducted Jun10)
Program: Strengthen the travel distribution system
Key Performance Indicators
2009/10 Target
2009/10 Results
% of stakeholders indicating Tourism
Australia (TA) helps their business
At least 75% of stakeholder
respondents rate TA functions as
excellent, very good or good value to
their business
81% of stakeholders rated TA
functions as good, very good
or excellent
(Stakeholder survey conducted Jun10)
Number of qualified agents in the
Aussie Specialist Program (ASP)
Move from 11,589 qualified agents
in Jun09 to 12,900 qualified agents
in Jun10
11,408 qualified agents in Jun10*
and 9,636 agents in training
* Drop in 2009/10 result compared to 2009/10 target is due to substantial data cleaning of the Aussie Specialist Program system
Program: Increase demand for Australia as a destination
Key Performance Indicators
2009/10 Target
2009/10 Results
Experience Seeker Arrivals
Number of total and first-time
international ‘Experience Seeker’
arrivals from Tourism Australia
key markets
Total
From 2,315,300 (Jan–Dec08)
to 2,380,100 (Jan–Dec09)
Total
From 2,554,675 (Jan–Dec08)
to 2,520,790 (Jan–Dec09)
First Time
From 821,515 (Jan–Dec08)
to 821,500 (Jan–Dec09)
First Time
From 982,345 (Jan–Dec08)
to 926,770 (Jan–Dec09)
International
from 10,777,249 (12 months to Mar09)
to 10,777,300 (12 months to Mar10)
International
from 10,777,249
(12 months to Mar09)
to 9,805,375 (12 months to Mar10)
Domestic
from 10,399,800 (Sep09 base)
to 10,399,800 (as at Mar10)
Domestic
from 12,805,520 (Sep09 base)
to 12,936,189 (Sep–Mar10)
Share of Competitor Set
International % share of travellers
intending to visit Australia compared
to competitor destinations
International
from 20.6% (12 months to Mar09)
to 21.0% (12 months to Mar10)
International
from 20.6% (12 months to Mar09)
to 21.0% (12 months to Mar10)
Domestic % share of travellers
intending to visit Australia compared
to competitor destinations
Domestic
from 83.9% (Sep09 base)
to 83.9% (as at Mar10)
Domestic
from 87.7% (Sep09 base)
to 87.9% (Sep–Mar10)
Brand Message
Sum of ‘Experience Seekers’
who associate Australia with
selected brand messages
From 1,137 (12 months to Mar09)
to 1,150 (12 months to Mar10)
From 1,126 (6 months to Mar09)
to 1,093 (12 months to Mar10)
Visitors
8 million (Jul–Jun09)
to 12 million (Jul–Jun10)
Visitors
10 million (Jul–Jun09) to 18 million
(Jul–Jun10) – note new target of
13.5 million set during year
Intention Pool
International
Number of travellers intending to
visit Australia in the next 12 months
(from five key markets)
Domestic
Number of travellers intending to
travel more within Australia in the
next 12 months
TA Owned Websites
(including Australia.com)
Monthly unique visitors during
the year to Tourism Australia-owned
websites; engaged visitors (spend more
than five minutes on Tourism Australia
websites); visitors referred to Tourism
Australia partner websites
Engaged
0.8 million to 1.38 million
Referred
3.2 million to 4.8 million
Engaged
1 million (Dec08–Jun09)
to 1.48 million (Jul–Jun10)
Referred
no base, 0.40 million (Dec09–Jun10)
Business Events Australia
% of corporate and incentive
buyers likely to consider Australia
as a destination
75% of stakeholders surveyed likely
to consider Australia as a destination
for a business event.**
No base. 78% of corporate and
incentive buyers surveyed were
likely to consider Australia as
a destination for a business event
** KPI developed post publication of the 2010/11 Portfolio Budget Statement
8 Performance
2009–2010 ANNUAL REPORT 9
There’s nothing like rubbing
shou lders with a loca l celebrity .
There’s Nothing Like Australia
“The campaign is simple
yet personal and speaks
to the uniqueness of
our landscape, people
and experiences.”
There’s nothing like leading
an exploration party .
stayed down
If I could grow gills and a tail, I would have snorkelling
there forever. I mean, Mum and Dad said the face with the
would be amazing but until you come face to ve just
you’
colours and movement and the sea creatures, on holidays.
got no idea. I always love making new friends
So what if this one lives underwater.
you have
The hardest thing about this place is knowing are laidback,
to leave. Everything else is so easy. The locals
finding
the weather’s heavenly, and if you’re having trouble
honestly
wildlife, your eyes aren’ t open wide enough. I
holiday.
thought this was going to be our last family me, you’ ll
Not if Mum and Dad bring us back here. Trustoff the plane.
fall in love with this place the second you get
Tourism Australia’s latest consumer campaign involves the participation of the
whole country. It allows Australians to share their favourite Australian place or
experience with the world.
Over here, a road trip to Kakadu is a rite of passage; a
journey that everyone has to experience. When the time’s
right you pack the car, grab your mates and head up north
in search of adventure. For us, that journey began yesterday.
The campaign is based on research conducted by Tourism Australia that showed
Australians were eager to get involved in promoting their country. It was developed
to involve Australians because they are the experts on what makes Australia unlike
anywhere else. It also harnesses the power of word-of-mouth endorsement.
The campaign is simple yet personal and speaks to the uniqueness of our
landscape, people and experiences.
This morning we left the car and followed an old, dusty
track straight up into the cliffs. We were searching for an
outback oasis with a mighty reputation. The climb was hard
going but it was the view at the top that left us breathless.
It was out of this world. We stood above an ancient land
begging to be explored. You have to get out here and check
it out yourself. I promise you won’ t be disappointed.
TA0189_Whitsundays_A4_LAND_0.1.indd 1
It is also built to last. The core message that – ‘There’s Nothing Like Australia’ –
was designed for longevity through different mediums, audiences and activities.
It offers an opportunity to build a multi-faceted campaign to engage consumers
in new and different ways.
The new campaign line had to be universally understood and translate
across markets and segments. It needed to be authentic and true. It needed to
engender pride among Australians, but most of all it needed to carry an idea that
could become stronger over time. The tagline means this campaign is inclusive
and has potential to last for a long time.
23/09/10 3:17 PM
Great Barrier Reef, QLD, Brand Ad
Kakadu, NT, Brand Ad
Invite
“Over 28 days, nearly
30,000 photos and
inspiring personal stories
were uploaded, making
it one of Australia’s
most successful
consumer-generated
promotions ever.”
The first phase of the campaign invited Australians to share their personal
stories of where they live and holiday in Australia to show the world why they
should visit. They were asked to submit photos of their favourite place or
experience at www.nothinglikeaustralia.com and to describe in 25 words or less
why they believed ‘There’s Nothing Like Australia’.
Over 28 days, nearly 30,000 photos and inspiring personal stories were uploaded,
making it one of Australia’s most successful consumer-generated promotions ever.
Inspire
ak
There’s nothing like a drin ks bre
on.
ath
mar
ng
ppi
sho
on a
Another whirlwind tour of Melbourne.
This is why I love this city.
Fly in. Meet up with the girls. Cocktails on hotel balcony.
Live band. Reminisce about last Melbourne trip till early
hours. Up early. Pastries all round. Shopping begins.
Fall in love with local fashion labels. And with coffee guy.
Get lost in laneways. Feast on amazing food. Ride bikes
through CBD. Buy new outfits. Take outfits for test drive.
Rehydrate while watching the sun set over the Yarra.
Dinner at rooftop bar. Meet local boys. Hit local pubs.
Hit local clubs. Fall asleep to the sounds of the city.
Wake up sad to leave. Cheered up by antique shopping.
And vintage clothes. Stumble across food festival. Roll into
taxi. Drive to airport. Consider missing our flight. Start
planning next Melbourne adventure. Maybe it’s time you
came along for the ride.
Tourism Australia also chose some of the best entries to use in global print and
online advertising, as well as a new campaign video. This video can be broadcast
on TV, in cinemas and online, and was directed by renowned Australian
commercial director Michael Gracey.
Engage
10 Highlights
With this campaign, Tourism Australia offers its most comprehensive
cooperative partnership program ever. The Australian tourism industry has
free use of the campaign tagline; and the logo, digital banners, screensavers,
postcards, advertisement templates and artworks for posters, tour shells and
itineraries, along with guidelines on how to use these materials, are available
at www.tourism.australia.com.
for the sunrise
Talk about an amazing start to the day. We got up The hilltop
but stumbled across something we’ ll never forget.
was alive with more kangaroos than I’ d seen in a lifetime.
taking
We spent the afternoon roaming the island for wildlife,we’ d never
pictures of penguins, seals and a whole bunch of birds another
even heard of. At times I didn’t know whether to takethat’s just
picture or stop and take in the surroundings. I guess to tell
begin
only
pictures
the
really,
But
the type of place it is.
e just got to
the story. To truly experience this land of ours you’v
come and discover it yourself.
TA0171_Kangaroo_Island_A4_FPC_0.1.indd 1
Melbourne, VIC, Brand Ad
Tourism Australia used the entries to build a searchable digital map of Australians’
favourite holiday experiences, which forms the heart of the campaign. The map
is housed on www.australia.com and www.nothinglikeaustralia.com, and is
searchable by experience type, location and 1,000 key words.
There’s nothing like a zoo without fences.
Kangaroo Island, SA, Brand Ad
12/07/10 11:37 AM
The campaign will be rolled out globally. Each of Tourism Australia’s 30 key
markets will have specific partnership opportunities for industry, using relevant
experiences and images that best suit their target audiences.
2009–2010 ANNUAL REPORT 11
Connecting to Consumers
“Australia.com attracted
around 18,008,797
unique visitors, compared
to 9,928,890 visitors
in the previous year.”
iPhone
application
Tourism Australia’s Facebook page
Tourism Australia understands that marketing Australia to consumers locally
and overseas is changing because of the internet. While television, print and
cinema advertising remain important to Tourism Australia, there is a growing
understanding that advertising and connecting with consumers online is an
important part of our marketing activities.
Connecting with our consumers also included activities in key social media
networks such as Facebook and channels like QQ in China. These initiatives
helped Tourism Australia better target consumers interested in visiting Australia
for a holiday, increasing our opportunity to convert intentions into actual
bookings. By the end of the year, Tourism Australia had more than 450,000
Facebook fans and had attracted more than 7,000 followers on micro-blogging
site Twitter.
In 2009/10 traditional channels such as television, newspapers and magazines
were all used to connect with consumers. Tourism Australia used many other
new channels such as online games, interactive websites and 15 bloggers from
seven countries to help us connect with consumers across the world.
In the past year there has been significant focus and investment by Tourism
Australia to deliver online marketing activities that support an Australian holiday
and connect with more consumers than ever before.
Australia.com, the primary tool in our digital marketing, attracted many more
visitors this year. Australia.com attracted around 18,008,797 unique visitors,
compared to 9,928,890 visitors in the previous year.
As part of the ongoing development of australia.com the site was published in
17 different languages to connect with consumers across 32 markets. Tourism
Australia also launched the first mobile versions of the australia.com website in
markets where there was high penetration of mobile internet usage. The sites
were launched in English, Chinese, Japanese and Korean.
12 Highlights
Australia.com site
Winning entries from the There’s Nothing Like Australia competition
A number of campaigns were developed for social media channels domestically
and internationally, including two youth videos in Korea, USA, UK and Australia.
These videos were minute-long diaries from two working holiday visa travellers
and attracted more than 500,000 views.
“Tourism Australia
also launched its first
iPhone application –
a mobile version of the
itinerary planner, The
Walkabout Planner.”
Tourism Australia also launched its first Australian user-generated content
competition as part of the There’s Nothing Like Australia campaign. Many
Australians shared their unique holiday experiences with the world and these
experiences became the content for an interactive digital map to be launched
in 30 countries in more than 15 languages. The competition was the most
successful user-generated campaign in Australia ever, with some 30,000 entries
and 375,000 monthly unique visitors to the campaign website.
Tourism Australia launched its first iPhone application – a mobile version of the
itinerary planner, The Walkabout Planner, which is available on australia.com.
Data from the Australian Tourism Data Warehouse product and Google mapping
was integrated into the application, to make planning a trip to and travelling
within Australia as easy as possible for consumers.
2009–2010 ANNUAL REPORT 13
Australia’s National Landscapes
“The end goal is to
drive tourism to
these landscapes, which
in turn will deliver
sustainable local economic
and social benefits.”
The Kimberley was named Australia’s 10th National Landscape in April 2010
in recognition of its outstanding natural beauty and cultural significance. The
region joins a prestigious list of iconic landscapes that have been identified as
offering unique and distinctive Australian experiences.
The long-term goal is to launch 15 National Landscapes and to market each
according to the quintessential Australian experiences on offer.
Managed by Tourism Australia and Parks Australia, the Australia’s National
Landscapes program transcends all borders. It has been designed to bundle
some of Australia’s most distinctive national parks and their associated regions
together and to manage their future development under a cohesive tourism,
infrastructure, conservation and marketing plan. The end goal is to drive tourism
to these landscapes, which in turn will deliver sustainable local economic and
social benefits.
Australia’s National Landscapes
MARKETING ACTIVITY 2009-2010
Australia’s National Landscapes
Profiles and Itineraries
There’s nothing like Australia’s National Landscapes.
Marketing Activity brochure
Profiles and Itineraries brochure
The program’s success is measured not only by the number of landscapes
identified and ratified through the agreed process by the Australia’s National
Landscapes Reference Committee, but also by the formation of local steering
committees that assume day-to-day responsibility for the management of their
National Landscape. To date, 10 such committees have been formalised, while
at a grassroots level, the momentum for local communities to come together to
nominate additional landscapes is building.
To be included, each landscape must meet certain criteria, critically in relation
to conservation, government, preservation and promotion.
“The program focuses
on a long-term strategic
approach to tourism
and conservation.”
The program focuses on a long-term strategic approach to tourism and
conservation with each landscape undergoing a process to uncover its brand
positioning and what makes it unique on a world scale. This positioning is used
to plan product development via Experience Development Strategies. In the
long term, the roll-out of these focused plans will create new stories for Tourism
Australia to promote to the world.
To date, Australia’s National Landscapes have been incorporated into Tourism
Australia’s marketing via a dedicated digital site. The No Leave No Life domestic
tourism campaign, the global There’s Nothing Like Australia marketing
campaign, the media website and the IMHP have also included Australia’s
National Landscapes.
Australia’s
National
Landscapes
homepage
14 Highlights
The first landscape to be launched was Australia’s Red Centre – which includes
such iconic locations as Uluru, Kata Tjuta, the McDonnell Ranges and Kings
Canyon. The other landscapes are the Australian Alps, Australia’s Coastal
Wilderness, Australia’s Green Cauldron, Flinders Ranges, Greater Blue Mountains,
Kakadu, Kangaroo Island, the Kimberley and the Great Ocean Road.
2009–2010 ANNUAL REPORT 15
A DV E R T I S I N G F E AT U R E
No Leave No Life
“At 30 June 2009
there were 126 million
days of stockpiled annual
leave in the Australian
economy. At the end of
the June 2010 quarter,
this number had decreased
to 117 million days.”
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No Leave No Life was launched on 30 March 2009 by the Federal Minister for
Tourism, the Hon. Martin Ferguson AM MP. Tourism Australia is leading this longterm strategy to remind employees of the personal and professional benefits of
taking annual leave, and of taking that leave in Australia.
The program is designed to equip employees and employers with a range of
resources and tools to collaboratively tackle annual leave stockpiling, with flowthrough benefits to the domestic tourism industry. An integrated marketing
strategy has been adopted, involving employees, employers and tourism
operators. It encourages workers to unlock their $33 billion worth of stockpiled
leave and use it for a domestic holiday or short break.
At 30 June 2009 there were 126 million days of stockpiled annual leave in the
Australian economy. At the end of the June 2010 quarter, this number had
decreased to 117 million days, following falls in the preceding three quarters.
Following a successful public relations launch, No Leave No Life was catapulted
into the Aussie vernacular through an innovative new TV series in late 2009
and early 2010. No Leave No Life premiered on 4 December 2009 and quickly
established itself as the most watched TV show in its timeslot, and the second
most watched TV show on Saturday nights over its seven-week run. Airing on
Channel 7 at 6.30pm, over 1 million Australians tuned in every week to see a
hardworking Aussie surprised at their place of work at 9am on Monday and
whisked off on a domestic holiday, to appreciate the value of taking time off and
holidaying in Australia. The TV show brought Tourism Australia together with
Over
TAD0196_QVB-A_Surfer_170x230(10%)_0.1.indd 1
No Leave No Life campaign poster
19/03/10 2:35 PM
Fantastic IDEAS FOR
LONG WEEKENDS AND
ONE WEEK GETAWAYS
No Leave No Life magazine
six State and Territory Tourism Organisations and 67 operators to showcase
seven amazing locations in ways that had never been done before. Recall of the
No Leave No Life campaign jumped from 25 per cent to 43 per cent as the show
aired, delivering a six-fold return on investment.
Industry partnerships have continued to form the bedrock of the campaign,
attracting over AUD$2.6 million in contributions from cooperative partners. This
figure was matched by Tourism Australia to deliver campaign activity across print
and digital media platforms. The No Leave No Life website referred 33 per cent
of its visitors to partner sites. Two editions of the No Leave No Life magazine (an
offers-based publication) provided small and medium sized tourism businesses
with a valuable, low-cost entry point to a national campaign, with advertising
selling out rapidly in both editions.
“Recall of the No Leave
No Life campaign jumped
from 25 per cent to
43 per cent as the show
aired, delivering a six-fold
return on investment.”
To date, more than 800 companies have registered their interest in the program,
with a potential reach of more than 1 million employees. Companies have
provided case studies on the success of the program within their organisations
for Tourism Australia to share with other businesses to encourage greater
take-up of the program. No Leave No Life has also been featured prominently
at national conferences held by the Australian Human Resources Institute,
providing Tourism Australia with the opportunity to talk directly to HR managers
and directors around the country and encourage them to set up positive leavetaking cultures within their organisations.
No Leave No Life campaign advertising
16 Highlights
2009–2010 ANNUAL REPORT 17
Corporate Governance
Legislative Framework
Tourism Australia’s corporate governance arrangements
are set out in the Tourism Australia Act 2004 and the
Commonwealth Authorities and Companies Act 1997.
Tourism Australia’s functions under the Tourism Australia
Act 2004 are to:
• Increase the awareness of potential international
travellers of Australia as a destination
• Increase the awareness of potential domestic
travellers of Australia as a place to travel
• Increase the knowledge of potential travellers,
both international and domestic, of Australia
• Increase the desire of potential international
travellers to travel to Australia
• Increase the desire of potential travellers,
both international and domestic, to travel
throughout Australia
• Conduct research into, and analysis of, international
and domestic travel
• Report on trends in international and domestic travel
• Communicate effectively with the Australian tourism
industry on issues that may affect it
• Increase awareness throughout Australia of the
contribution of tourism to Australia’s economy, society
and environment.
The Board of Directors
The functions of the Board under the Tourism Australia
Act 2004 are to:
• Ensure the proper and efficient performance of Tourism
Australia’s functions
• Determine Tourism Australia’s policy in relation to
any matter.
Specifically, the Board of Directors is accountable for
ensuring there is an appropriate governance framework in
place that enables Tourism Australia to fulfil its statutory
mandate. The Board is also accountable for ensuring
Tourism Australia, a statutory authority, is aware of the
general policies and guidelines of the government, and
that it complies with ministerial directions.
The Chair
The Chair and the Managing Director are separate
appointments to ensure appropriate accountability by
enabling independent decision making. The Board must
hold the meetings that are necessary for the efficient
performance of its role, and it is the role of the Chair to
determine how often and where meetings are held, and
18 Corporate Governance
to preside over Board meetings. The Chair also exercises
control over the quality and flow of information between
management and the Board.
Board Meetings
The Board meets regularly throughout the year. Advance
distribution of the agenda and associated papers ensure
directors are aware of current and forthcoming issues
relevant to Tourism Australia’s operations and performance.
These papers contain the year-to-date financial performance
of all business groups (compared to budget), a report
from the Executive Leadership Team, and proposals for
significant contracts and tenders. Senior management
may also present significant matters to the Board.
Corporate Plan and Annual Operational Plan
The Board must ensure that a Corporate Plan for Tourism
Australia is prepared and submitted to the Minister
by 1 May each financial year. Among other essential
information, this plan must include a statement of the
objectives that Tourism Australia intends to pursue from
that point forward. The Board must also ensure that an
Annual Operational Plan is prepared for the first financial
year to which the Corporate Plan will relate, and provide
the Minister with both plans for endorsement. So far as is
practicable, the Board must ensure that the performance
of Tourism Australia’s functions, and the exercise of
Tourism Australia’s powers, are consistent with, and
designed to give effect to, the current Corporate Plan and
the current Annual Operational Plan.
Tourism Australia’s Corporate Plan was provided to the
Minister on 30 April 2010 and endorsed on 31 May 2010.
Subsequently, the Annual Operational Plan was provided to
the Minister on 1 June 2010 and endorsed by the Minister
on 29 June 2010.
Statement of Expectation and Statement of Intent
The Minister for Resources, Energy and Tourism issues
a Statement of Expectation to Tourism Australia from
time to time. These statements articulate the Minister’s
priorities for Tourism Australia. In response, Tourism
Australia incorporates these priorities into its planning
and reporting processes and issues a Statement of
Intent describing how the Minister’s priorities will be
implemented. In 2009/10, Tourism Australia received
a revised Statement of Expectation from the Minister
on 3 February 2010. Tourism Australia responded to the
Minister with a Statement of Intent on 6 April 2010.
Compliance Assurance
The Commonwealth Authorities and Companies Act 1997
requires Tourism Australia to report on its legislative
compliance and financial sustainability annually to the
Minister of Resources, Energy and Tourism, as well as the
Minister for Finance and Deregulation. To comply with this
requirement, the Managing Director (based on assurances
from the Tourism Australia Global Management Team)
provides an annual declaration in the form of a Compliance
Report to the Board. The 2009/10 Compliance Report was
provided to the Ministers by 15 October 2010.
Tourism Australia Values and Code of Conduct
The Board is responsible for determining Tourism
Australia’s Code of Conduct and Corporate Values, and
ensuring these standards of behaviour are upheld. All
directors and employees are expected to act with the
utmost integrity and professionalism, striving at all times
to enhance the reputation and performance of Tourism
Australia. The Board itself subscribes to a code of conduct
based on principles recommended by the Australian
Institute of Company Directors, and has established a
similar code for Tourism Australia employees. Tourism
Australia’s employee Code of Conduct was last updated
and communicated to staff in December 2009.
Board Instrument on Delegations and Authorisations
The Tourism Australia Act 2004 outlines the delegation
powers of the Board and the Managing Director. The Board,
by way of resolutions, gives directions for the exercise of
powers or functions to staff.
Audit and Finance Committee
The Board’s Audit and Finance Committee is mandated
under the Commonwealth Authorities and Companies Act
1997. The Committee supports the Board in carrying out
its duties by overseeing those matters related to audit and
finance, such as Tourism Australia’s internal audit program.
The Committee meets regularly and operates under terms
of reference approved by the Board.
Record of Board Meetings and Attendance 2009/10
The Board met on nine occasions during 2009/10. Eight meetings were held in Sydney and one in Adelaide. The aggregate
attendance for Board meetings was 96 per cent. Board members also represented Tourism Australia at both industry and
general functions.
Member
Rick Allert
Geoff Dixon
Grant Hunt
Terri Janke
Kate Lamont
Sandra McPhee
Peter O’Brien
Janet Whiting
Andrew McEvoy
Grant Le Loux
Date of appointment
Expiry
Meetings attended
Eligible to attend
1/09/07
1/07/09
1/07/07
1/07/08
1/07/09
1/07/09
6/08/07
1/07/08
1/01/10
1/07/09
30/06/10
30/06/12
30/06/10
30/06/11
30/06/12
30/06/12
30/06/10
30/06/11
30/11/14
31/12/09
9
9
9
9
9
8
8
8
4
5
9
9
9
9
9
9
9
9
4
5
Record of Audit and Finance Committee meetings and attendance 2009/10
The Audit and Finance Committee met on five occasions during 2009/10. Four of these meetings were held in Sydney,
and one in Adelaide. The aggregate attendance for Committee meetings was 100 per cent.
Member
Rick Allert
Sandra McPhee
Peter O'Brien
Janet Whiting
Position
Attended
Eligible to attend
Board Chairman
Member
Member
Chair
5
5
5
5
5
5
5
5
2009–2010 ANNUAL REPORT 19
Organisational Structure
Sustainability
as at 30 June 2010
Australia’s natural, cultural and social assets are
a major drawcard for international tourists. The
tourism industry is the perfect vehicle to enhance
understanding of the vulnerability of natural assets
such as coral reefs, alpine regions, rainforests and
wetlands. This understanding will further increase
the likelihood that those assets will be protected.
Minister for Tourism
The Hon. Martin Ferguson AM MP
Chairman
Rick Allert AO
Board
Deputy Chairman
Directors
Geoff Dixon
Terri Janke
Janet Whiting
Peter O’Brien
Sandra McPhee
Grant Hunt
Kate Lamont
Highlights and results
Managing Director
Andrew McEvoy
Executive
General Manager
Western
Executive
General Manager
Eastern
General Manager
Corporate
Communications
Executive
General Manager
Marketing
Executive
General Manager
Corporate
Frances-Anne
Callaghan
Richard Beere
Rachel Crowley
Nick Baker
Grant Le Loux
• International
Operations
• International
Operations
• G
overnment
Relations
• International
Media Relations
• Finance &
Procurement
• UK/Europe
• Asia
• New Zealand
• Japan
• Media &
Public Affairs
• Consumer
Marketing
• Corporate
Technology
• Americas
• Gulf countries
• Internal
Communications
• Trade Marketing
• Legal Services
• I ndustry
Communications
Tourism Australia works with the Australian
Government’s Department of Resources, Energy and
Tourism, State and Territory Tourism Organisations, and
industry partners to fulfil its commitment to fostering
sustainable tourism. We do this by assisting in the
responsible development and promotion of Australia’s
tourism industry.
“The tourism industry
is the perfect vehicle to
enhance understanding of
the vulnerability of natural
assets such as coral reefs,
alpine regions, rainforests
and wetlands.”
• Domestic Marketing • People & Culture
• Business Events
Australia
• Strategy & Research
• Continued to work closely with Parks Australia in
managing the Australia’s National Landscapes
initiative, which brings together representatives
from key Australian tourism, ecotourism, academic
and conservation sectors. This partnership between
conservation and tourism has identified and launched
10 iconic landscapes that capture and promote the best
of Australia.
• Played an active role in the whole-of-government
Resilience Working Group, which continues to build on
the Tourism Action Plan for Climate Change. The plan
guides the ongoing development of opportunities and
programs to address climate change.
• Monitored consumer concerns on the issue of
sustainable tourism internationally and continued
to promote an image of Australia as a destination of
unparalleled nature-based tourism experiences in key
international markets.
• Digital Marketing
20 Corporate Governance
2009–2010 ANNUAL REPORT 21
Australian Operations Overview
Au
tionsns
eratio
Opera
aliann Op
stralia
Austr
Tourism Australia’s global headquarters is based in
Sydney, Australia.
Five business groups are located here, including
Marketing, Corporate, Corporate Communications,
International Eastern and International Western.
Darwin
Cairns
Broome
NORTHERN
TERRITORY
Alice Springs
QUEENSLAND
WESTERN
AUSTRALIA
SOUTH
AUSTRALIA
Brisbane
NEW SOUTH
WA L E S
Perth
Sydney
Adelaide
ACT
Canberra
VICTORIA
Melbourne
TA S M A N I A
Hobart
22 Federation Square, Melbourne, VIC Photography: Julie Renouf
2009–2010 ANNUAL REPORT 23
Marketing
Consumer Marketing
The Marketing group is responsible for Tourism Australia’s
global marketing strategy, which in 2009/10 included
the development and launch of the There’s Nothing Like
Australia destination campaign.
The Consumer Marketing unit is responsible for delivering
Tourism Australia’s consumer marketing activities globally
and is made up of four business teams: Brand; Design
Services; Visual Assets; and Digital Marketing.
The group consists of Consumer Marketing, Global Public
Relations, Trade Marketing, Domestic Marketing, Business
Events Australia and Digital Marketing.
The combined team is responsible for delivering
global advertising campaigns, producing photographic
images, managing agency agreements, providing
graphic design services, and managing and distributing
Tourism Australia’s visual assets. It is also responsible
for developing and delivering regional campaigns with
in-market teams, as well as digital marketing programs
through australia.com, search engine marketing, social
media, viral video channels and mobile phones.
The division’s focus is on global brand and communications
strategy development and execution, spanning television,
print, cinema and outdoor advertising. There is also
a strong emphasis on online marketing, advocacy,
public relations and media programs. Its activities were
supported during 2009/10 by Tourism Australia’s global
creative agency, DDB Worldwide, and media agency Carat.
Highlights and results
• The focus of the Consumer Marketing unit in 2009/10
was the delivery of the new Tourism Australia brand
campaign There’s Nothing Like Australia. The campaign
was successfully launched in Australia in May 2010 and
will be rolled out to regional offices in 30 countries and
15 languages by 31 December 2010.
The development and delivery of the campaign involved:
• creating broadcast advertising to showcase
27 locations across Australia
• developing 24 print advertisements and 288
cooperative print advertisements
• developing more than 50 brand and cooperative
advertisements for use in digital environments
“The focus of the
Consumer Marketing
unit in 2009/10 was
the delivery of the new
Tourism Australia brand
campaign There’s Nothing
Like Australia.”
• developing a range of free tools for use by trade
and industry
• creating electronic direct marketing material for
use by Tourism Australia and its partners to share
information about Australian holidays, using
campaign messages and imagery
• developing a diverse range of trade and partner
collateral (screensavers, wallpapers, tour shells,
posters and postcards) to ensure the new
campaign could be showcased in all of Tourism
Australia’s marketing activities globally
• designing, developing and implementing a
campaign website that captured usergenerated content
• creating a digital map using the almost
30,000 entries collected from consumers in the
competition. The map is the primary digital tool
within the new campaign and was launched on
31 May 2010 at the Australian Tourism Exchange
event in Adelaide. Consumers were invited to vote
for the best entry and the winner was announced
at the launch of the campaign’s digital map in
June 2010.
• To support the launch of the new campaign and
regional marketing programs, the Consumer Marketing
unit developed and delivered new content and
photographic, digital and campaign-specific guidelines.
These documents were designed to increase marketing
effectiveness and improve the efficiency of marketing
campaigns in regional locations.
24 Australian Operations
2009–2010 ANNUAL REPORT 25
Consumer Marketing continued
Digital Marketing highlights and results
Brand highlights and results
• Adapted global search activities to support the new
campaign in the fourth quarter of 2010. The team
developed an innovative search tool that enabled
consumers to search for and locate videos on YouTube.
The team also created a Tourism Australia brand
channel that has played video footage to more than
555,000 people. This launch support is part of a broader
search program which creates a global presence for
Australia in eight languages across 15 markets. The
central coordination of search activity ensures Tourism
Australia can buy and manage its profile in major
search engines globally, in a cost-effective manner.
• Re-examined Tourism Australia’s brand blueprint as a
precursor to the new campaign launch. This analysis
led to the creation of a new Destination Australia brand
blueprint, a new Destination Australia brand book and
a new brand foundations film to showcase the unique
benefits of an Australian holiday.
• Focused on improving the performance and reach of
Tourism Australia’s core digital asset, australia.com. The
site attracted 18,008,797 unique visitors in 2009/10,
almost a 100 per cent increase on the previous year.
Visitors spent an average of six minutes on the site.
• Completed development work to make australia.com
available in 17 languages – more than double the
number available in the previous year – helping to
cost-effectively promote Australia in smaller markets.
Quarterly content updates focusing on events and
holiday activities available in Australia in spring,
summer, winter and autumn were also introduced.
• Created Tourism Australia’s first syndicated content
suite, which allows trade partners to take itineraries
from the australia.com Walkabout Planner and put
them on their own websites, free of charge. The
Walkabout Planner was so well received by regional
marketing teams that it is now available in German,
Italian, French, Spanish, Korean, Japanese, Chinese and
Bahasa Malaysian.
• Launched Tourism Australia’s first iPhone application in
June 2010. The application is based on the Walkabout
Planner, and was downloaded 2,200 times in six weeks.
• Launched the first mobile version of australia.com in
June 2010. The small ‘m-site’ was designed to pilot
the delivery of a mobile version of the website. It was
launched in English, Simplified Chinese, Traditional
Chinese, Korean and Japanese, and will provide
strategic insights on how to engage with mobile
audiences in the future.
• Delivered a viral video seeding pilot. Two videos called
Trip in a Minute were created and seeded on popular
video channels such as YouTube. The pilot received 2.79
million impressions and 650,000 views across a range
of youth media in the UK and USA markets.
• Continued to provide support for regional marketing
teams, delivering more than 90 different international
market campaigns over the past 12 months.
26 Australian Operations
• Enabled Tourism Australia to maximise the resources
provided under agency agreements. In April, Tourism
Australia conducted a formal review of its agency
partners. The results of this evaluation will be used over
the course of the year to improve the effectiveness and
efficiency of the services provided.
Design Services highlights and results
• Completed more than 700 internal projects, over 300 of
which were for offshore offices.
• Designed and delivered Tourism Australia’s first set of
Youth Guidelines to support global youth campaigns.
These designs are being used by Japan, the USA, the UK
and France to support local market projects without
incurring external agency costs.
Visual Assets highlights and results
• Delivered more than 59,000 free images to trade,
media and industry with an estimated commercial
value of AUD$37.9 million, this is a 47 per cent increase
compared to the previous year.
• Created a new repository in the existing image gallery
for all There’s Nothing Like Australia materials, to
improve the distribution of new campaign product.
The online gallery upgrade will allow more trade,
media, industry, stakeholders and staff to access new
and existing images and footage simply, efficiently
and effectively.
Domestic Marketing
The Domestic Marketing team’s objective in 2009/10 was
to encourage Australians to take more domestic trips and
thus increase the value of domestic tourism. This would be
achieved by raising the emotional appeal of an Australian
holiday, and leading the way in unlocking Australia’s 126
million days of stockpiled annual leave as at 30 June 2009
through the national rollout of the No Leave No Life program.
The Domestic Marketing team was also responsible for
launching the first phase of the There’s Nothing Like
Australia promotion, by inviting Australians to share their
unique, personal holiday experiences.
No Leave No Life highlights and results
• Produced a television series called No Leave No Life,
which aired on the 7 Network from December 2009 to
January 2010. The seven-part series raised the issue of
accrued leave in an entertaining format and showcased
seven locations in Australia. With an average of 1.1
million viewers per episode, it was the most watched
program in its timeslot and second overall against all
Saturday night entertainment. The program increased
awareness of the No Leave No Life campaign from 25
per cent to 43 per cent and drew more than 50,000
unique visitors to the website during the series.
• Produced and distributed more than 1.5 million No
Leave No Life magazines through the national press
and to companies implementing No Leave No Life
programs. The magazines gave industry, particularly
small and medium-sized tourism businesses, the
opportunity to be involved in a national campaign and
provide offers direct to consumers at an affordable cost.
More than 116 operators took part in the promotion.
• Made more than AUD$2.6 million available for
cooperative marketing, matched equally by industry, to
ensure consumers were motivated to use their accrued
leave for a domestic holiday and extend industry
partnerships. Fourteen campaigns totalling AUD$5.2
million in media spend were executed in 2009/10.
• Delivered 243,764 monthly unique visitors to
noleavenolife.com, with 33 per cent of those visitors
clicking through to partners’ websites.
• Received more than 800 employer registrations for the
No Leave No Life program. These employers received
information that will help them instigate their internal
leave-taking programs. Case studies of successful
activities can be viewed at noleavenolife.com.
• Accrued annual leave days reduced from a peak of
126 million days for the year ending June 2009, to
117 million days for the year ending June 2010.
“The No Leave No Life television
series aired on the 7 Network
from December 2009 to
January 2010 ... With an
average of 1.1 million viewers
per episode it was the most
watched program in its timeslot
and second overall against all
Saturday night entertainment.”
There’s Nothing Like Australia highlights and results
• Developed an integrated media partnership with PBL
(Nine Network) and News Limited, with extensive
activity across TV, print and digital channels. When
Australians were asked to share their favourite
holiday destinations and experiences, almost
30,000 entries were received within 28 days,
making the promotion one of the most successful
social media competitions ever run in Australia.
• Launched the There’s Nothing Like Australia campaign
in Australia in June 2010. The campaign used the
almost 30,000 competition entries to create content.
Highlights included a one-hour prime time special on
Channel 7 titled There’s Nothing Like Australia – Holiday
Hotspots Revealed, which aired to a national audience
of 1.84 million viewers. An innovative digital campaign
attracted 313,921 monthly unique visitors to the
campaign website in June alone, the largest number of
visitors for a Tourism Australia domestic website in the
organisation’s history.
• Produced more than 1.2 million custom-published
magazines titled My Australia. The three editions
featured inspirational destination content and
travel experiences of well-known Australians and
provided industry with the opportunity to participate
through advertising.
• Attracted a collective 1.3 million domestic
monthly unique visitors to australia.com and
nothinglikeaustralia.com (a threefold increase on the
previous year). Visitors spent an average of more than
six minutes on the sites.
2009–2010 ANNUAL REPORT 27
Trade Marketing
The Trade Marketing team is responsible for delivering
opportunities for industry growth. This is achieved by
building the capabilities of the international travel industry
to confidently market and sell Australia.
“Hosted Australian
Tourism Exchange 2010
in Adelaide. The event
received a 100 per cent
buyer satisfaction rating
and a 95 per cent seller
satisfaction rating.”
Highlights and results
• Supported or delivered 33 events in partnership with
regional offices, to increase distribution opportunities
for industry.
• Hosted Australian Tourism Exchange (ATE) 2010 in
Adelaide (29 May to 4 June). The event received a 100
per cent buyer satisfaction rating and a 95 per cent
seller satisfaction rating.
• Launched phase 1 of the Indigenous Tourism
Champions Program (ITCP) in December 2009. The
ITCP helps selected mature and export-ready tourism
operators meet the needs of trade and consumers, and
supports their participation in marketing initiatives to
effectively communicate the quality and diversity of
Indigenous experiences offered in Australia. The program
consists of three membership categories to facilitate
effective allocation of resources, to best mentor and best
promote the participating tourism businesses.
The program is a joint initiative between Tourism
Australia and Indigenous Business Australia (IBA),
with the support of State and Territory Tourism
Organisations. IBA provides mentoring to help
Indigenous tourism operators develop their products
and marketing expertise in line with the needs of
the travel industry, while Tourism Australia actively
promotes the participating businesses through
targeted initiatives, and hosts forums to facilitate
trade relationships.
• Attracted 20 key inbound tourism operators and
wholesalers to meet with Indigenous champions at
the launch of the ITCP at the Australian Tourism Export
Council Meeting Place event in December.
• In addition, the Indigenous Success Stories Dinner at
the event was attended by 80 key industry delegates,
including 29 buyers, 23 suppliers, and prominent
Indigenous entertainers and celebrities.
• Increased the distribution of Indigenous tourism
products, with 19 Indigenous tourism operators
attending ATE 2010. Six Indigenous tourism products
were accepted for the European New Product
Workshop 2010, and three for Corroboree 2010.
Attracted 19 Indigenous tourism operators to
attend ATE 2010.
• Delivered Indigenous content for Tourism Australia and
external stakeholders. The image library was updated
with 200 new Indigenous images, showcasing a
diverse range of engaging and authentic experiences.
Indigenous fact sheets were updated, two new fact
sheets were created and Indigenous content was
written for the Australia’s National Landscapes website.
Twenty news stories were also delivered.
28 Australian Operations
• Updated the third edition of the National Indigenous
Tourism Product manual and made it available online.
• Launched a new version of the Aussie Specialist
Program in January 2010. The online training program
provides travel agents and distributors with the
knowledge and skills to sell Australia effectively. It is
available for free in 110 countries and in 12 languages,
providing a more interactive and engaging experience
for users. As at 30 June 2010, there were 21,044
registered agents (11,408 qualified agents and 9,636
agents in training).
• Promoted Aussie Specialists globally through
marketing programs, with opportunities available for
Australian industry to access these agents. A total of
26 partners participated in newsletters and training
modules in 2009/10, with 116 Travel Club offers made
by industry partners.
• Launched the Kimberley as the 10th National Landscape
in April 2010 and Tasmania, the Great Barrier Reef,
Ningaloo/Shark Bay and South Western Australia have
been accepted to progress to the next stage.
• Received 139,176 page views, 48,000+ unique visits,
8,000+ video plays, 1,000+ video downloads, 800+ PDF
downloads and 680+ screensaver downloads since the
launch of the Australia’s National Landscapes microsite (australia.com/nl) last year. There have also been
7,463 video views on the media.australia.com website.
• Distributed newsletters to Australia’s National
Landscapes industry stakeholders to improve
communication and engagement. In addition, the
annual Australia’s National Landscapes forum was
hosted in Alice Springs; meetings were held with Parks
Australia, park agencies, and State and Territory Tourism
Organisations; and the Australia’s National Landscapes
Reference Committee met quarterly.
• Finalised a pilot project involving stakeholders in the
Australia’s Coastal Wilderness landscape sector in June
2010 to help with the implementation of the branding.
• Held more than 1,500 face-to-face meetings with
Australian industry partners, including State and
Territory tourism offices, to communicate Tourism
Australia’s messages, opportunities and research.
• Developed a manual/toolkit for the There’s Nothing
Like Australia campaign to provide industry partners
with free and cooperative opportunities to engage with
the new campaign.
• Gathered and relayed market intelligence to Tourism
Australia teams.
• Organised the Australian Village at the World Youth
and Student Travel Conference 2009, which included
a booth, networking event and theming. The event
received more than 90 per cent satisfaction rating from
delegates. In addition, fact sheets were produced and
information was provided on the youth market and
Tourism Australia’s marketing activities in this segment
at relevant conferences and on the corporate website.
• Represented Tourism Australia on Cruise Down Under’s
management committee and provided marketing
support to the organisation. Tourism Australia also
attended the Seatrade event in Miami.
• Supported the launch of the Luxury Lodges of Australia
brochure, which includes coverage of Australia’s
National Landscapes.
• Featured the Australia’s National Landscapes program
at ATE 2010, including moving footage and stills on
Tourism Australia’s stand. Itineraries for each landscape
were distributed to trade partners to encourage them
to increase their product offering for each landscape.
• Undertook a range of Australia’s National Landscapes
marketing activities, including more than 60 journalist
visits, inclusion in the No Leave No Life and My Australia
initiatives, and features on the media website, image
gallery and film libraries.
• Visiting journalists and bloggers from Japan, China,
Malaysia, USA, UK, and New Zealand covered Australia’s
National Landscapes areas in their IMHP visits.
2009–2010 ANNUAL REPORT 29
Global Trade Events
Global Public Relations
Tourism Australia participated in or coordinated 33 international trade shows, travel markets and trade missions around
the world during 2009/10, providing Australian tourism businesses with opportunities to meet travel agents and
wholesalers, and to help build new business relationships and distribution networks for Australian tourism products.
The goal of the Global Public Relations unit is to be Tourism
Australia’s ‘storyteller’. This is achieved by generating
motivational stories delivered via global media channels
and through a network of influential advocates. The
unit works in close collaboration with State and Territory
Tourism Organisations, Australian tourism operators and
Tourism Australia’s global public relations network.
Event
Date
Country
OzTalk North America
07/08/09–09/08/09
United States
India Mega Famil and Workshop (IMFW)
10/08/09–14/08/09
Australia (Gold Coast)
Corroboree – The Americas
11/09/09–14/09/09
Australia (Adelaide)
International French Travel Market (IFTM – formerly Top Resa)
22/09/09–25/09/09
France
Otdykh Leisure Show Moscow
22/09/09–25/09/09
Russia
Dreamtime
12/10/09–17/10/09
Australia (Sydney)
Greater China Travel Mission (GCTM)
08/11/09–12/11/09
China
World Travel Market (WTM)
09/11/09–12/11/09
United Kingdom
Team Australia Exploratory Mission to India
16/11/09–20/11/09
India
China International Travel Mart (CITM)
19/11/09–22/11/09
China
The European Incentive, Business Travel & Meetings Exhibition (EIBTM)
01/12/09–03/12/09
Spain
ATEC Meeting Place
02/12/09–03/12/09
Australia (Sydney)
International Luxury Travel Market (ILTM)
07/12/09–10/12/09
France
Vakantiebeurs (VAK)
12/01/10–17/01/10
Netherlands
G’Day USA (Los Angeles, San Francisco and New York)
13/01/10–27/01/10
United States
FITUR 2010
20/01/10–24/01/10
Spain
FESPO
28/01/10–31/01/10
Switzerland
Borsa Internazionale del Turismo (BIT)
18/02/10–21/02/10
Italy
Confex
23/02/10–25/02/10
United Kingdom
Japan Australia Mission (JAM)
24/02/10¬25/02/10
Japan
Korea Travel Mission (KTM)
26/02/10
Korea
South Africa Workshop
01/03/10–05/03/10
South Africa
Asia Pacific Incentives & Meetings Expo (AIME)
02/03/10–03/03/10
Australia (Melbourne)
Internationale Tourismus Börse (ITB)
10/03/10–14/03/10
Germany
Team Australia Business Events Educational (TABEE)
15/03/10–17/03/10
China
European New Product Workshop
16/03/10–18/03/10
United Kingdom
OZTalk New Zealand
19/03/10–21/03/10
New Zealand
New Product Workshop USA
25/03/10–26/03/10
United States
ATEC Symposium
20/04/10–23/04/10
Australia (Hobart)
‘See Australia’ Latin Famil Workshop
30/04/10
Australia (Sydney)
Corroboree Europe
06/05/10–08/05/10
Australia (Melbourne)
The Worldwide Exhibition for Incentive Travel, Meetings & Events (IMEX) 25/05/10–27/05/10
Germany
Australian Tourism Exchange (ATE)
Australia (Adelaide)
30 Australian Operations
29/05/10–04/06/10
Highlights and results
• Delivered 6,594 articles that reached consumers in
19 countries. To purchase the equivalent advertising
space generated by the articles would cost an estimated
AUD$185.2 million. This represents a total return on
investment of AUD$0.57 to reach 1,000 consumers.
• Of this editorial, 1,684 articles were generated as a
result of 269 international visits hosted by Tourism
Australia in 2009/10. This publicity achieved an
estimated advertising value of AUD$109.6 million. The
majority of articles (46 per cent) were published in print
channels, 36 per cent appeared online, and 18 per cent
were shown on free-to-air and paid television.
• Launched the Cooperative Broadcast Program. Tourism
Australia provides logistics and limited funding support
to facilitate the creation of quality programs with
high destination content, earmarked for multinational
distribution on paid and free-to-air television. Of
particular relevance are travelogues, documentaries,
lifestyle programs and short films.
• 110,800 unique visitors to media.australia.com
recorded. These visitors viewed almost 500,000
pages and downloaded thousands of media-friendly,
story-generating aids. Three adaptations of the
media website were also launched – a UK version and
Traditional and Simplified Chinese language versions.
These sites are supplemented by a news video portal
– Lens on Australia – which now houses over 200
vignettes. Visits to the video portal continue to grow,
with more than 27,000 video views at 30 June 2010.
“Tourism Australia’s
Facebook fan page attracts
around 40,000 new fans
a month ... an additional
7,000 users actively
follow Tourism Australia
on Twitter.”
• Augmented media programs with a network of
powerful advocates who work with Tourism Australia
to tell Australia’s story through a variety of channels,
including video and social and traditional media. Of
note were 15 influential bloggers from the USA, France,
Italy and Singapore who, following their Australian
visits, posted 94 articles that have continued to
generate ongoing dialogue and destination profiling.
• Recruited 109 high-profile celebrities and personalities
to the Friends of Australia network. Their Australian
experiences are shared through vignettes uploaded
onto the media website Lens of Australia, Facebook
and YouTube. They also worked with Tourism Australia
during the Australian launch of the There’s Nothing
Like Australia campaign to provide insights into their
favourite Australian holiday experiences.
• Attracted more than 500,000 consumers from around
the world via the Tourism Australia Facebook fan page.
The page attracts around 40,000 new fans a month
and is the largest Facebook fan page of any national
tourism organisation. An additional 7,000 users actively
follow Tourism Australia on Twitter.
2009–2010 ANNUAL REPORT 31
Business Events Australia
Business Events Australia is responsible for delivering
trade marketing campaigns that position Australia as a
competitive, environmentally and socially responsible
destination for business events (corporate meetings,
incentives, association conferences and exhibitions). The
unit works to increase consideration of Australia as a place
to hold international business events by corporate agents
and corporate and association decision makers.
Highlights and results
• Hosted Dreamtime – Tourism Australia’s premier
corporate meetings and incentives trade event –
which brought 75 corporate agents and 12 media
representatives from across Asia, the UK, Europe,
the USA and New Zealand to visit five Australian
destinations. Buyers also met with more than 50
Australian industry representatives at a two-day
business forum, which generated more than 50
business leads.
Corporate
“The unit works to
increase consideration of
Australia as a place to
hold international business
events by corporate
agents and corporate and
association decision makers.”
• Hosted Team Australia Business Events Educational
(TABEE) 2010, which took 29 Australian industry and
four media representatives to Beijing, where they met 68
corporate buyers and agents, as well as key trade media,
from 11 Asian markets. The trip generated 87 enquiries,
14 quotes and three confirmed pieces of business.
• Hosted New Zealand corporate agents and media
representatives on an educational visit to Melbourne
and the Northern Territory.
• Launched a new marketing and communications
campaign for the association conferences sector with
Australia’s leading convention centres and bureaux,
worth AUD$1.8 million over three years.
• Launched a new series of marketing tools promoting
Australia’s business events capabilities, including a
series of Dreamtime showreels.
• Delivered a domestic cooperative program of 24
projects worth AUD$2 million, designed to boost
the number of business events delegates attending
conferences in Australia.
• Represented Australia at key international trade shows:
PAICE (Auckland), EIBTM (Barcelona), AIME (Melbourne)
and IMEX (Frankfurt).
• Developed three new executions of the ongoing
print campaign for the corporate meeting and
incentives market.
Corporate works with the Board of Directors and the
Managing Director to establish and implement the overall
strategy and governance for Tourism Australia’s operations.
This includes strategic annual planning, organisational
goal setting, performance evaluation, consumer and
market insights, economic and aviation analysis, audit
management and compliance reporting.
Corporate Technology, Finance and Procurement, Legal
Services, People and Culture, and Strategy and Research
are the five business groups that fall under the Corporate
umbrella. There is also a Corporate Executive which
provides secretariat services for the Board of Directors
and the Board’s Audit and Finance Committee, and which
manages related operational policies, procedures and plans.
Highlights and results
• Undertook testing of business continuity arrangements
at the Executive level and updated internal planning
documents accordingly. Related awareness training was
organised for all Australian-based staff.
• Coordinated a fraud risk assessment and updated the
fraud control plan in accordance with the provisions
of the Commonwealth Fraud Control Guidelines 2002.
There were no reported incidents of fraud in 2009/10.
• Coordinated a comprehensive review of the project
management framework. Recommendations from this
review will be realised over 2010/11 and will benefit all
areas of the organisation.
• Delivered a public relations program designed to
generate more visibility for Australia as a business
events destination, including supporting Dreamtime
and other international trade shows.
• Managed a stakeholder engagement program,
including eight regular newsletters, briefings, two
leaders’ forums and two meetings of the Business
Events Marketing Industry Advisory Panel.
• Sponsored the 2009 AACB Staff Scholarship and
the 2009/10 Meetings & Events Australia NSW
Mentor Program.
• Produced a second comprehensive guide to investment
in new business events infrastructure. The guide
identified AUD$8.1 billion of investment in new or
refurbished facilities.
32 Australian Operations
2009–2010 ANNUAL REPORT 33
Finance & Procurement Legal Services
Finance and Procurement is responsible for providing
Tourism Australia with global support services,
including accounting, statutory management reporting,
budgeting and forecasting, treasury, procurement, and
contracts administration. The group also oversees the
implementation and monitoring of related policies,
procedures, processes and systems to help ensure
compliance with legislative requirements, and provides
regular training to employees so they can operate
effectively within established frameworks.
Highlights and results
• Made enhancements to budgeting processes to allow
for monthly forecasting and better management of
budget variances.
• Introduced system improvements to enable nominated
local currency budgeting and reporting.
• Implemented multiple payment platforms to allow for
competitive settlement of foreign currency payments.
• Finalised the Sydney office products tender with a
savings target of over AUD$100,000.
• Finalised the invoice automation tender with a savings
target of over AUD$1 million over five years.
• Commissioned an independent data-mining audit
which confirmed an excellent level of data accuracy and
quality in the finance systems.
• Undertook more than 100 training and awareness
sessions with staff to support correct application of
and compliance with relevant systems and processes.
“Achieved the target of
no outstanding financial
or procurement-related
recommendations
from auditors.”
34 Australian Operations
Legal Services is responsible for providing advice on legal
issues, anticipating and guarding against legal risks,
and ensuring Tourism Australia complies with certain
Commonwealth legislation. Legal Services also coordinates
mandatory compliance reporting and Freedom of
Information requests, and manages Tourism Australia’s
comprehensive insurance requirements with Comcover.
Highlights and results
• Developed and issued an intellectual property policy to
staff in August 2009.
• Introduced a suite of new and updated standard
agreements following a review of all template
legal documents.
• Introduced a new checklist and procedure for contracts.
• Developed and delivered training on services provided
by the Legal Services team with Regional General
Managers, Corporate Service Managers, Global
Distribution Managers, Domestic Marketing, Consumer
Marketing and Trade Marketing.
“Legal Services is
responsible for providing
advice on legal issues,
anticipating and guarding
against legal risks.”
Corporate Technology Strategy & Research
Corporate Technology manages and supports Tourism
Australia’s global information and communications
technology requirements, and is also responsible for
providing assessment, implementation and management
of new initiatives that depend on the use of technology.
Highlights and results
• Reviewed technology platforms to identify where
long-term operating improvements could be made,
and reduced costs by standardising applications
where possible.
• Tested disaster recovery processes for core critical
services and made improvements as required.
• Centralised all backup infrastructure for Sydney,
simplifying the technology support needs within
regional offices.
• Updated technology policies and procedures to improve
service levels.
• Effected technology-related recommendations from
corporate strategies and audits.
• Developed a new Aussie Specialist website and
improved Tourism Australia’s Corporate, Trade Events
and International Media websites.
• Implemented a global electronic document
management system to improve collaboration on
projects and programs.
“Developed a new Aussie
Specialist website and
improved Tourism
Australia’s Corporate, Trade
Events and International
Media websites.”
Strategy and Research is responsible for delivering
consumer, market and industry knowledge and insights to
Tourism Australia and the Australian tourism industry. The
team is also responsible for the corporate and operational
planning for the organisation’s global operations, including
managing the development of Tourism Australia’s
Corporate Plan and Annual Operational Plan, and reporting
on industry and organisational performance against
strategic key performance indicators.
The group comprises three teams – Corporate Planning,
Consumer and Market Insights, and Tourism Economics
and Aviation.
Highlights and results
• Submitted the Tourism Australia Corporate Plan to
the Minister for Tourism on 30 April 2010.
• Received approval for the Annual Operational Plan for
2010/11 from the Minister for Tourism in June 2010.
• Developed the Global Market Monitor, which provides
real-time insights into market trends and performance.
• Conducted a number of notable research projects,
including a study of Korean travellers in partnership
with State and Territory Tourism Organisations; and a
qualitative study related to the Australian Experiences
Framework, to examine how certain experiences are
perceived and best promoted to inbound visitors from
China, the UK, France and New Zealand. Both studies
are being communicated publicly.
“Strategy and Research is
responsible for delivering
consumer, market and
industry knowledge and
insights to Tourism
Australia and the Australian
tourism industry.”
2009–2010 ANNUAL REPORT 35
People & Culture
People and Culture is responsible for developing and
implementing strategies relating to people management,
training and career development, remuneration and
cultural change initiatives. The key objectives for 2009/10
were to ensure that Tourism Australia had a demonstrably
passionate and integrated culture, as well as a motivated,
skilled and cohesive global team that reflects the Tourism
Australia brand.
“Of the 216 staff employed
as at 30 June 2010, 100
were employed overseas,
72 per cent were female,
59 per cent of senior
management roles were
held by women, and 44
per cent of executive roles
were held by women.”
Corporate Communications
Highlights and results
• Permanent staffing averaged 210.33 full-time
equivalent (FTE), a reduction from the 2008/09
average of 222.73. This was due primarily to the
mid-year transfer of Tourism Research Australia to the
Department of Resources, Energy and Tourism.
• Of the 216 staff employed as at 30 June 2010, 100 were
employed overseas, 72 per cent were female, 59 per
cent of senior management roles were held by women,
and 44 per cent of executive roles were held by women.
• Recorded significant improvements in strategic key
performance indicators. The staff engagement index
increased to its highest ever level of 82.9 per cent; the
role clarity index remained steady at 85.7 per cent; and
voluntary turnover was 14.7 per cent, marginally higher
than the 13.7 per cent rate recorded in 2008/09.
• Implemented new procedures and a template for gifts
and benefits reporting.
• Reviewed and updated all People and Culture-related
policies where necessary for compliance with relevant
legislation and market practice. All employment
contracts were reviewed by external lawyers and
amended where necessary.
• Reviewed and mapped all Tourism Australia job
descriptions and competencies against a standardised
framework of grades, accountabilities and skills for
similar roles.
• Delivered global training programs covering topics such
as ethical behaviour and Tourism Australia’s Code of
Conduct, time and email management, and cultural
awareness, as well as technical training in document
management software.
• Reviewed and amended all relevant HR policies and
employment contracts where necessary in line with the
Fair Work Act 2009 (FWA). Additionally, all Australianbased managers were briefed by external lawyers on
the impact of the FWA and HR staff received intensive
training on all aspects of the Act.
• There were no industrial disputes during the year.
• Tourism Australia’s employment policies, procedures
and practices complied with the requirements of the
Occupational Health and Safety Act 1991, the Disability
Discrimination Act 1992, the Racial Discrimination Act
1975 and the Sex Discrimination Act 1984.
36 Australian Operations
The Corporate Communications unit is responsible for
managing Tourism Australia’s corporate reputation and
its relationships with key stakeholders in government,
industry, media and the wider community.
The unit manages these responsibilities by working with
tourism industry bodies and operators; ensuring compliance
with Tourism Australia’s obligations to the Australian
Government; maintaining productive relationships with
the media and effectively managing public affairs issues;
and ensuring effective internal communication of key
information to Tourism Australia staff.
In 2009/10 the unit’s objectives were to: ensure
compliance with the agency’s statutory obligations;
enhance Tourism Australia’s reputation and profile by
minimising negative impacts on the agency; build and
maintain effective partnerships with key government
and private sector bodies; assist the agency to leverage
new marketing opportunities and attract traditional
and non-traditional partnerships; and improve internal
communications and government relations to maximise
performance and increase staff engagement.
Highlights and results
• Held 2010 Market Briefings in nine locations
around Australia
• Hosted two Industry Leader Forums, achieving a
75 per cent excellent/very good satisfaction rating.
• Launched a new corporate website and video portal,
continuing growth in visitors to the site.
• Distributed essentials newsletter to over 10,000
subscribers each week.
• Developed and implemented the corporate
communications program for Australian Tourism
Exchange (ATE) 2010, including the daily production
and dissemination of ATE Daily.
• Continued management of the staff intranet, i-Net, and
distribution of a weekly e-newsletter to all staff, i-Net
News Desk.
• Prepared 98 briefings for the Minister for Tourism,
including material for ministerial engagements,
speeches and media releases.
• Managed ministerial, industry and media engagement
at major events, including the launch of the There’s
Nothing Like Australia campaign and ATE 2010.
• Issued more than 70 corporate media releases,
managed inquiries and provided regular briefings to
media on Tourism Australia activities.
• Generated significant media coverage around
Tourism Australia’s activities, including more the
1,600 stories around the launch, public competition
and video launch phases of the There’s Nothing Like
Australia campaign.
• Represented Tourism Australia on whole-ofgovernment activities and taskforces.
2009–2010 ANNUAL REPORT 37
International Operations
International Operations Overview
International Operations is responsible for managing and
delivering strategies, plans and activities across Tourism
Australia’s global markets. It also connects Tourism
Australia’s global network and international markets with
the Sydney head office, the inbound tourism industry and
key stakeholders. The unit directly manages six international
regions and provides information on issues impacting key
international markets to assist with decision making and
planning. It also provides industry and stakeholders with
international market information and insights on Tourism
Australia’s global operations and activities.
Highlights and results
• Managed AUD$8 million in funding brought forward
from Tourism Australia’s 2010/11 appropriation.
The unit negotiated and implemented 57 tactical
campaigns and 27 charters and supplementary services
– in partnership with airlines, State, Territory and
regional tourism organisations, and industry partners –
to stimulate travel from Australia’s short and medium
haul markets, including New Zealand, North and South
East Asia, the Middle East and Japan. The total value of
the investment with all partners was AUD$20 million.
• Launched a new video portal featuring weekly updates
from Regional General Managers on key international
markets. The videos provide the Australian industry
with the latest market insights and trends as well as
potential business opportunities.
• Established and managed Market Advisory Panels for
North America, France, Japan, South Korea, China, India
and Latin America. The panels met twice during the
year to provide insight and advice to Tourism Australia
and industry on the strategic development of the
markets and other specific issues. Panel members were
selected based on their market knowledge.
• Managed the International Industry Advisory
Group, which provides guidance to the Board on the
performance of Tourism Australia, as well as industry
advice and input to the strategic planning process. The
group is chaired by a member of the Board, supported
by Eastern and Western Hemisphere Executive General
Managers and five senior industry representatives. The
group met three times during the year to discuss the
development and ongoing review of Tourism Australia’s
strategic and annual operation plans.
• Continued leadership and management of the Japan
Aviation Recovery Group, delivering a cohesive strategic
approach to address capacity issues between Japan
and Australia.
• Managed quarterly Destination Australia Marketing
Alliance (DAMA) meetings with state and territory
tourism organisations to discuss international issues
and opportunities.
• Presented the latest Eastern and Western Hemisphere
market insights to more than 1,000 Australian industry
representatives at a Market Briefings seminar in
April 2010.
• Negotiated a Memorandum of Understanding (MOU)
with Qantas, involving cooperative marketing in key
international markets, the Australian Tourism Exchange,
Dreamtime and the International Media Hosting
Program – worth AUD$44 million over three years.
• Managed strategic engagements with airlines,
including MOUs with Singapore Airlines, China
Southern Airlines and Japan Airlines; as well as
cooperative marketing partnerships with 28 other
airlines such as Jetstar.
• Represented Tourism Australia at key government
forums including the China–Australia Tourism talks on
the Approved Destination Status (ADS) scheme and
development of the China market; and participated in
key government panels including the ADS Government
Coordination Group and Advisory Panel, Council on
Australia–Latin America Relations, and the Tourism and
Visa Advisory Group (TVAG).
• Managed the Aussie Specialist program, including the
launch of a new website, distribution of newsletters
and provision of marketing collateral.
• As at June 2010, there were 295 qualified Aussie
Specialist agents in Rest of World markets (including
Russia, South Africa and the Gulf countries).
• Coordinated See Australia Latin Famil and Workshop
in April 2010, working with four inbound tour operators
to bring 31 Latin American agents to a workshop
in Sydney with more than 30 Australian industry
representatives.
• Attracted 17 Rest of World agents to the ATE event in
Adelaide to meet Australian tourism operators and
experience Australia firsthand.
• Attracted 18 Rest of World agents to Corroboree Europe
in Melbourne in May 2010, to undertake familiarisation
visits and meet with 158 Australian companies.
• Attended key trade shows such as PATA Travel Mart in
Hangzhou, China in September 2009 and ITB in Berlin
in March 2010, to recruit new agents to the Aussie
Specialist Program.
• Managed and delivered quarterly Global Market
Monitor reports to provide industry with the latest
booking trends, insights and forecasts.
38 Mt Field National Park, TAS. Photography: Andreas Smetana
2009–2010 ANNUAL REPORT 39
The Americas
United States of America
International Markets
The United States of America (USA) is Australia’s thirdlargest source market for visitors and the fourth largest
in terms of yield. Australia received a total of 488,800
visitors from the USA in 2009/10, an increase of 8 per cent
compared to the previous year.
Canada
UK
Germany
USA
South Korea
Japan
China
PerthHong Kong
Taiwan
India
Malaysia
Singapore
GHQ Sydney
New Zealand
Despite the tough economic conditions of 2009, the entry
of two new carriers – V Australia and Delta Airlines – on
the Pacific route stimulated heavy competition, resulting
in some of the lowest fares ever seen for Australia. The
market responded and overall visitor arrivals exceeded
Tourism Forecasting Committee (TFC) expectations, driven
by strong growth in the Visiting Friends and Relatives and
Holiday travel segments. Business travel remained weak in
light of the global financial crisis in late 2009 but bounced
back in the first six months of 2010.
The objective in 2009/10 for the USA market was to drive
immediate, short-term leisure volume – to get consumers
to ‘take a holiday in Australia now’ by capitalising on
competitive airfares and deals.
Highlights and results
Tourism Australia operates in six key regions including
Japan, South/South East Asia and Gulf countries, Asia,
UK and Europe, New Zealand and the Americas, with
15 offices covering 26 countries. Tourism Australia
also reaches other markets where it does not have a
direct presence through its partnership with Austrade
and the Aussie Enthusiasts Program.
To maximise its return on investment, Tourism Australia
allocates its resources to customers, markets and
opportunities which offer the best growth prospects in
terms of spending, dispersal to regional Australia and can
be effectively influenced by marketing strategies.
Tier 1
Tier 1 markets deliver the vast majority of the total
Australian tourism business by spend. They are:
United Kingdom, United States of America, Japan,
New Zealand, China, Korea and Germany.
Tier 2
Tourism Australia’s Tier 2 markets are typically those
that work off a reasonable base, but offer strong growth
opportunities in terms of visitors in the short to medium
term. This includes Ireland, Canada, Singapore, Malaysia,
Hong Kong, Taiwan and India.
Tier 3
Tier 3 markets may not account for a significant
proportion of global growth in visitor spend, but offer
above-average dispersal with high relevance to distinct
or remote locations or opportunities with specific higher
yield segments. This includes Thailand, Gulf countries,
Netherlands, Switzerland, Austria, Italy, France and
Nordic countries.
Tier 4
The remaining international markets where Tourism
Australia does not have a direct presence are referred to
as Tier 4 markets. Typically, these markets yield less than
AUD$200 million per year in economic value to Australia.
Tier 4 includes the key markets of Russia, Spain, Latin
America, South Africa, Indonesia, Vietnam, Philippines
and Belgium, and rest of the world.
• Generated 196 million paid media impressions and
helped drive USA consumers to australia.com for the
Australia Now campaign. Focusing on the themes of
nature/adventure and food and wine, the campaign
comprised print, online and integrated events (as part
of G’Day USA 2010) and featured partnerships with
three State and Territory Tourism Organisations, Swain
Tours and Wine Australia. The main media partner was
National Geographic (on TV and with a sweepstakes
competition). Additional partners included American
Express, Fodors and Zagat.
• Generated more than 247 million paid media
impressions through the One Week Walkabout
campaign in partnership with Qantas, State and
Territory Tourism Organisations and key wholesalers
such as Travelscene and Goway. The campaign
continued to position Sydney, Melbourne and Brisbane
as compelling one-week vacation destinations. Forged
a new partnership with Delta Airlines, the latest
USA carrier to commence services to Australia. The
partnership included a launch event at Los Angeles
International Airport, a Delta VIP executive group
familiarisation to Australia, and a program to broadcast
Tourism Australia advertising in-flight across Delta’s
entire USA domestic network.
Indigenous Tourism Art Gallery opening in Los Angeles,
with 50 consumers and trade in attendance; a Come
Walkabout consumer event in Beverly Hills with more
than 1,550 attendees; a sold-out Music Showcase and
Good Food live event with radio station KCRW; an It’s
Time for Australia lunch for 30 media representatives
in San Francisco; and the Zagat Consumer Dinner with
over 80 attendees.
• Partnered with V Australia and youth travel specialist
STA Travel to implement an online Youth campaign, with
messaging about work and holiday visas supported by
V Australia student airfares. Other key components of
the campaign included a youth-dedicated Facebook
page, which earned more than 10,000 fans; an online
promotion with culture website Flavorpill; and IMHP
visits that included current.com and College Magazine.
The campaign exceeded targets for the number of paid
media impressions by incorporating additional elements
such as advertorials, social media extensions and emails,
helping boost the share of voice within online media.
• Generated more than USD$12 million worth of
coverage with 1,302 articles through IMHP and
public relations work. Forty IMHP trips to Australia
were organised for publications including National
Geographic Magazine, Extra TV, Forbes Life Magazine,
LA Times Magazine, View From The Bay TV, MTV MADE
and Islands Magazine.
• Attracted more than 300 industry partners – including
144 Aussie Specialists – to Corroboree 2009 in Adelaide.
The event connected the Australian tourism industry
with North America’s top Aussie Specialist agents.
Corroboree 2009 received the highest satisfaction
ratings from travel agents and suppliers since the
annual event began in 2000.
• There were 1,583 qualified Aussie Specialists, including
100 Premier Agents, operating in 2009/10, an increase
of 41 per cent on the previous year. New partnerships
established with key consortia (including Virtuoso, Travel
Leaders and Ensemble) drove significant registration
numbers into the Aussie Specialist Program.
• In 2009/10, australia.com (US) received 1,928,945
unique visitors, an increase of 32 per cent on the
previous year.
• Hosted a number of signature events during G’Day USA
2010, including the Palm Springs International Film
Festival, where 5,860 attendees viewed the 30-second
campaign trailer prior to 24 Australian film screenings
(the same event attracted more than 450 people to the
Tourism Australia booth). Other events included the
40 International Operations
2009–2010 ANNUAL REPORT 41
The Americas
The Americas
Canada
Latin America
Visitor arrivals from Canada remained stable during
2009/10. Australia received a total of 125,400 visitors
during the year, up 3 per cent compared to the previous
year. This was despite the roll-on effects of the global
financial crisis in the USA on the Canadian economy.
Leisure visitor arrivals performed better than expected,
largely driven by airline fare offers and discounting. The
Canadian economy continues to strengthen, along with
improvements in consumer confidence in the first half
of 2010.
The objective in 2009/10 for the Canadian market was
to encourage consumers to ‘visit Australia now’ by taking
advantage of the increase in capacity and the number of
airlines flying to the country.
“Australia received a
total of 125,400 visitors
during the year, up
3 per cent compared
to the previous year.”
Highlights and results
• Generated an estimated 21 million impressions for the
Australia Now campaign, exceeding targets for page
visits. The campaign featured a media partnership
with the Food Network, comprising TV, online and print
activity. Additional PR activity included a media tour
highlighting the Australia Now message, which included
writers from the Toronto Sun and Macleans magazine.
• Drove 33,000 users to australia.com and delivered
more than 31 million impressions through digital
media activity for the Youth campaign. The
campaign featured an online promotion with Dine
Alone Records and a social media promotion with
CampusPerks.ca. The latter generated more than
57 video uploads, 23,300 votes, 49,459 video views
and 30 social events on 17 campuses across Canada.
In addition, there were 1,994 event attendees and
more than 4.9 million impressions though Facebook.
Local PR coverage (via newspapers, radio, Twitter
and Flickr) focused on working holiday visas.
• Generated more than AUD$440,000 worth of coverage
with 173 articles through IMHP and public relations work.
Eleven IMHP trips to Australia were organised for writers
from publications such as Departures TV, Globe and Mail,
Toronto Star, Toronto Sun and Macleans magazine.
• Partnered with Qantas Airways and State and Territory
Tourism Organisations to support Goway Travel’s
nationwide retail campaign. The campaign celebrated
40 years of Goway marketing Australia in Canada and
involved retail advertising promoting deals covering the
whole of Australia, a sweepstakes to collect consumer
contacts and a trade engagement plan to recruit new
Aussie Specialists.
• Partnered with Tourism Queensland in an integrated
consumer marketing and trade development program
to support the launch of Air Canada’s Vacations
Australia program. This included packages to popular
Australian destinations serviced by Air Canada and its
code share partners.
Tourism Australia continues to recognise the potential
of Brazil and Argentina as key emerging markets. Leisure
visitor arrivals from Brazil and Argentina showed strong
growth during 2009/10.
“There were 31 qualified
Aussie Specialists in
Argentina, an increase of 23
agents on the previous year.
In Brazil, the number of
qualified Aussie Specialists
was 18, an increase of eight
agents compared to the
previous year.”
Highlights and results
• Established trade partnerships with Qantas, Ways
(Argentina) and Kangaroo Tours (Brazil) to generate
interest in Australia and encourage agents to sign up
to the Aussie Specialist Program. The Ways partnership
recruited more than 50 trainee Aussie Specialists in
Argentina in June 2010.
• Launched a cooperative campaign with Qantas
and Sundance Tours, supported by Tourism New
South Wales and Tourism Queensland. Qantas
reported a strong interest in travel to Australia,
and during the campaign period visits to Qantas.
com doubled compared with the previous year.
• Generated 244 sales from the Kangaroo Tours
cooperative campaign, representing more than
AUD$1.09 million in revenue.
• Attracted 31 retail agents to the See Australia
familiarisation workshop, in partnership with State and
Territory Tourism Organisations and Australian ITOs.
The familiarisation provided an opportunity for trade
partners in Argentina and Brazil to attend a workshop
in Australia with over 30 Australian tourism products.
Around 97 per cent of attendees rated the event as
‘good or excellent’ and 67 per cent as ‘excellent’.
• Launched the Aussie Specialist Program in Latin
Spanish. The Portuguese program will be released in
early 2011.
• As at June 2010, there were 31 qualified Aussie
Specialists in Argentina, an increase of 23 agents on
the previous year. In Brazil, the number of qualified
Aussie Specialists was 18, an increase of eight agents
compared to the previous year.
• Launched the Latin Spanish and Portuguese versions
of australia.com, a major step forward in covering
consumer enquiries. Aussie Specialist agents and key
wholesalers will also be featured on the site.
• As at June 2010, there were 670 qualified Aussie
Specialists in Canada (including 20 Premier Agents),
an increase of 62 per cent on the previous year. New
partnerships were established with key consortia
including Flight Centre, Ensemble Travel and Sears Travel.
This helped drive the recruitment of Aussie Specialists, a
key component of the trade development strategy.
• In 2009/10, australia.com (Canada) received 245,212
unique visitors, an increase of 22 per cent on the
previous year.
42 International Operations
2009–2010 ANNUAL REPORT 43
Europe
Europe
United Kingdom
The United Kingdom (UK) is Australia’s second largest
market in terms of visitors.
A number of events impacted travel by UK visitors, including
the strengthening of the Australian dollar against the
British pound, economic and political uncertainty caused by
the UK general election, the volcanic ash cloud in April and
May 2010, British Airways strikes, the FIFA World Cup and
flight prices returning to pre-global financial crisis levels.
Despite this, the number of UK visitors to Australia
declined by just 1 per cent for the six months to June 2010.
In contrast, the total number of UK residents’ visits abroad
was down 10 per cent for the same period compared to
2009 (from 27.2 million to 24.6 million).
Aviation opportunities continued to emerge on the UK–
Australia route throughout 2009/10 as bilateral agreements
were expanded, including United Arab Emirates–Australia
in February 2010 and New Markets were serviced, such as
Emirates’ regional UK ports. Qantas, Singapore Airlines and
Emirates introduced A380 upgrades while AirAsia X debuted
business-class flat beds. The Qantas–British Airways Joint
Service Agreement was also renewed.
Highlights and results
• Generated PR coverage worth an equivalent advertising
value of AUD$17,676,034 for 2009/10. PR activities
focused on delivering brand messages and broadening
the story of what Australia offers British holidaymakers.
• Reached 13.3 million consumers through the regional
project brand advertising campaign. With Emirates
as the airline partner, the campaign used digital,
press, radio and outdoor advertising to promote the
accessibility of Australia from six airports around
the UK. A high-impact outdoor space stretching over
60 metres was erected at Cromwell Road in January,
bringing Australia to life through a series of two- and
three-dimensional images. An estimated 1.5 million
vehicles passed the site during the campaign.
• Reached 12.8 million consumers through Leisure Marketing
project brand advertising, designed to create urgency to
travel to Australia. The strategy included campaigns with
Qantas (Two Week Walkabout) and Singapore Airlines.
• Launched the There’s Nothing Like Australia campaign
in June, with cinema and online activity, and presented
it to UK trade partners at the Tourism Australia annual
industry awards ‘The OZCars’.
Ireland
“Aviation opportunities
continued to emerge on
the UK–Australia route
throughout 2009/10 as
bilateral agreements were
expanded, including United
Arab Emirates–Australia in
February 2010.”
• Conducted a £10 Pom campaign with STA Travel for
the Youth market. The campaign achieved excellent
sales results and PR coverage, including a 23 per cent
increase in passengers and a 35 per cent increase in
working holiday visas. A total of 147 articles were
generated through PR activity.
• Attracted 37,141 UK Facebook fans aged 18–34, against
a target of 25,000. The Facebook page promotes
Australia and working holidays to the Youth market and
encourages peer advocacy.
• Hosted Corroboree in Melbourne in May 2010. Run
in partnership with Qantas and State and Territory
Tourism Organisations, the event enabled 298 Aussie
Specialist travel agents from the UK, Europe and South
Africa to undertake 22 familiarisation visits and meet
158 Australian companies at workshops.
• Australia won the Best Holiday Destination award from
luxury travel magazine ultratravel for the third consecutive
year. The award recognises the growth in luxury product
and destination experiences offered by Australia.
Australia received a total of 58,917 visitors from Ireland
in 2009/10, a decrease of 12 per cent compared to the
previous year. The Total Inbound Economic Value decreased
17 per cent to AUD$395 million in 2009/10.
Ireland was one of the European economies worst hit by
the global financial crisis, with unemployment continuing
to climb throughout 2009/10, reaching more than 13 per
cent as at June 2010. The decline in visitor arrivals can be
attributed to the state of the Irish economy, which has
affected consumer confidence and disposable income.
The Icelandic volcanic ash disruption also saw a significant
number of flights cancelled in late April and early May
2010, which compounded the negative arrival figures.
Although the Youth market (15–29 year olds) is still the
largest demographic segment of total Irish arrivals to
Australia, it declined during 2009/10, an indication that
this usually resilient group was impacted by the country’s
economic situation. Accordingly, the number of working
holiday visas granted to Irish visitors declined by 35 per
cent in 2009/10 compared to the previous year.
“The decline in visitor
arrivals can be attributed
to the state of the Irish
economy, which has affected
consumer confidence and
disposable income.”
Highlights and results
• Trained 89 travel agents to sell Australia. Agents are a
crucial channel in the Irish market; they were invited
to Tourism Australia events in Ireland, as well as the
Corroboree event in Melbourne in May 2010.
• Generated PR coverage worth an equivalent
advertising value of AUD$1,066,624 (versus a target
of AUD$640,000) for 2009/10. PR activities focused on
delivering brand messages and broadening the story of
what Australia offers Irish holidaymakers.
• Attracted 10,947 Irish Facebook fans aged 18–34,
against a target of 3,500. The Facebook page promotes
Australia and working holidays to the Youth market and
encourages peer advocacy.
• As at June 2010, there were 101 qualified Aussie
Specialist agents in Ireland.
• In 2009/10, australia.com (Ireland) received 44,374
monthly unique visitors, an increase of 16 per cent
compared to the previous year.
• Highly commended in the category of Best Destination
Marketing Campaign at the EIBTM 2009 Business
Events Awards, for the first time.
• In 2009/10, australia.com (UK) received 1,014,763
monthly unique visitors, an increase of 68 per cent on
the previous year.
• Ran a campaign to encourage consumers to travel
to Australia for the Ashes cricket series, and to travel
beyond the match host cities during their visit. Activities
included dedicated content at australia.com/ashes; an
outdoor and online See Every Ball promotion; and a Find
Warnie promotion with The Daily Telegraph.
44 International Operations
2009–2010 ANNUAL REPORT 45
Europe
Europe
France
Australia received a total of 97,471 visitors from France
in 2009/10, an increase of 9 per cent compared to the
previous year. The Total Inbound Economic Value increased
1 per cent to AUD$482 million in 2009/10, with visitor
nights increasing 17 per cent to 4.6 million for the year.
The French economy technically emerged from recession
in the June 2009 quarter, but continued to feel the effects
of the crisis in the latter half of 2009. Despite the tough
economic times, France was the best performing Western
market in terms of visitor growth in 2009. The growing
popularity of Australia among 15–29 year olds was
responsible for this growth. French arrivals continued to
perform strongly in the six months to June 2010.
Additional aviation capacity and competitive pricing
between France and Australia (including the launch of
A380 services from Paris to Australia) also aided growth in
arrivals in 2009.
Highlights and results
• Launched Come Walkabout, the largest ever consumer
campaign for Tourism Australia in France. The campaign
featured Paris Metro station advertising and 1 million
consumer print supplements inserted in Elle and Nouvel
Observateur magazines in May and June 2010, with the
australia.com website as the call to action. A research
study showed that, among those who had seen the
advertising, approximately half stated that it increased
their interest in taking a trip to Australia.
• Ran two online cooperative airline campaigns – Two
Week Walkabout with Qantas in January and Come
Walkabout with Singapore Airlines in February 2010.
The campaigns had a combined online reach of over
17 million page impressions.
• Generated AUD$7.4 million in PR coverage for 2009/10.
One IMHP highlight involved extensive coverage in
the print edition of Marie Claire magazine (circulation
687,558) and its online equivalent (870,000 monthly
unique visitors) during Sydney Fashion Week, followed
by a holiday experience in Melbourne.
• Undertook a university road show in partnership with
radio station NRJ in March 2010, visiting 12 French
universities with an Australia-branded vehicle and
stalls distributing nearly 100,000 pieces of youth
collateral, destination information and giveaways.
Extensive radio advertising and promotions occurred
during this time.
• Launched a French-language Facebook site in
December 2009. The site had 11,821 fans as at June
2010, against a target of 6,000 fans for 2009/10.
46 International Operations
Germany
“Despite the tough
economic times, France
was the best performing
Western market in terms
of visitor growth in 2009.”
• Conducted 13 different trade partner marketing
campaigns utilising online, radio, direct mail and
print activity.
• Hosted an Australia stand at IFTM in Paris, the
largest trade show in France, in September 2009. The
Australia stand featured all State and Territory Tourism
Organisations and five stand partners. The event
attracted 25,000 attendees.
• Re-launched the new Aussie Specialist program in
January 2010 via extensive online advertising in trade
media, including an incentive trip to Australia. As at
June 2010, there were 400 qualified Aussie Specialist
agents in France.
• Created an integrated honeymoon-themed promotion
involving leading French wedding dress retailer
Complicité, utilising its 49 stores and online channels
to distribute 50,000 specially produced ‘LOVE Australia’
mini-booklets.
• Hosted 49 Aussie Specialists on familiarisation trips
to Australia in 2009/10, in partnership with State and
Territory Tourism Organisations.
• Participated in five major travel agent training
road shows with multiple partners, resulting in
567 agents trained.
• In 2009/10, australia.com (France) received 191,835
unique visitors, an increase of 102 per cent compared
to the previous year.
Australia received a total of 162,998 visitors from Germany
in 2009/10, an increase of 3 per cent compared to the
previous year. The Total Inbound Economic Value decreased
11 per cent to AUD$805 million in 2009/10, with visitor
nights decreasing 5 per cent to 7.1 million for the year.
The German economy technically emerged from recession
in the June 2009 quarter. However, repercussions from the
global financial crisis continued to be felt in the latter half
of 2009. Recovery was stronger in the first half of the 2010
calendar year.
Feedback from the German tourism industry throughout
2009/10 indicated a continuance in reduced lead times
for consumer bookings. Fully independent travel bookings
performed better than group bookings, and growth was
noted in campervan/self-drive holidays over escorted coach
tours. The growth in Holiday Visits and the Youth segment
(15–29 year olds) continued to drive German arrivals
to Australia.
Highlights and results
• Launched the Come Walkabout campaign with
partners Qantas and Singapore Airlines. The campaign
utilised online and print media, with the australia.com
website as the call to action. The campaign results
included more than 63 million online page impressions
and a print circulation of nearly 1 million.
• Created an integrated campaign with leading German
adventure retail brand Globetrotter in April 2010.
Australia was the feature destination for its summer
catalogue (circulation 1.2 million). Other activities
included point-of-sale displays and events in four
megastores, editorial features in Four Seasons Magazine
(circulation 440,000) and digital exposure reaching over
1 million adventure travellers. Key partners included
Qantas, State and Territory Tourism Organisations and a
leading tour operator.
• Generated AUD$7.6 million in PR coverage for
2009/10. One of the highlights from the IMHP was
lifestyle coverage in the December 2009 edition of
Elle magazine (circulation 250,395), featuring Sydney,
Melbourne and regional Victoria.
• Undertook a university road show with Unicum
media in January 2010, visiting 10 German cities in an
Australia-branded vehicle to promote youth travel and
working holiday visas.
“In 2009/10, australia.com
(Germany) received 254,482
monthly unique visitors,
an increase of 69 per cent
compared to the previous year.”
• Launched a German-language Facebook site in
November 2009. The site had 7,075 fans as at June
2010 against a target of 6,000 fans for 2009/10.
• Hosted the Australia stand at ITB, the world’s largest
trade show, in Berlin in March 2010. The Australia stand
featured all State and Territory Tourism Organisations,
and 19 stand partners – double the number of the
previous year.
• Showcased Australia-branded posters in more than
1,400 retail travel agency shopfront windows.
• Created dedicated Australian luxury content for Vogue,
Abenteuer & Reisen and Elle magazines, and hosted
luxury group press and trade familiarisations.
• Re-launched the new Aussie Specialist Program in
January 2009 with a print and online promotion, in
partnership with three major airline partners. As at
June 2010, there were 1,452 qualified Aussie Specialist
agents and 148 Premier Agents in Germany.
• Undertook 17 major travel agent training initiatives with
multiple partners, resulting in 2,163 agents trained.
• Received the Globus 2010 Award for Best Travel Agent
Training Services in Germany, from the trade media
Touristik Aktuell.
• Working holiday visa grants increased by 3 per cent in
2009/10, compared to the previous year.
• In 2009/10, australia.com (Germany) received 254,482
monthly unique visitors, an increase of 69 per cent
compared to the previous year.
• Produced and distributed approximately 1 million
Australia-themed mini-booklets via German schools,
youth media inserts, events and trade partners.
2009–2010 ANNUAL REPORT 47
Europe
Europe
Italy
Netherlands
Australia received a total of 56,185 visitors from Italy in
2009/10, a decrease of 5 per cent compared to the previous
year. The Total Inbound Economic Value decreased 17 per
cent to AUD$302 million in 2009/10, with visitor nights
decreasing 19 per cent to 2.3 million for the year.
Italy technically emerged from recession in the September
2009 quarter. However, the economy continued to struggle
throughout 2009/10, with rising unemployment and
declining consumer confidence. Despite negative growth
in Italian arrivals in the 2009 calendar year, consumer
sentiment for Australian travel remained strong, with
feedback from Italian trade indicating the Honeymoon and
Youth segments had good growth in the first half of 2010.
“Despite negative growth
in Italian arrivals in the
2009 calendar year,
consumer sentiment
for Australian travel
remained strong.”
Highlights and results
• Achieved a print reach of over 350,000 and 3 million
online impressions for the Two Week Walkabout print
and online campaign.
• Produced 75,000 ‘LOVE Australia’ honeymoon minibooklets in partnership with State and Territory Tourism
Organisations, which were distributed through trade
partners and at honeymoon fairs, and in Viaggi di
Nozze magazine.
• Undertook online banner advertising and extensive
editorial coverage in White magazine (circulation
100,000), and hosted events to promote honeymoons
in Australia.
• Generated AUD$7.2 million in PR coverage for 2009/10.
A key IMHP highlight was coverage of the Whitsundays,
the Great Barrier Reef and Melbourne in two editions
of travel magazine Voyages (with combined circulation
of 160,000).
• Undertook a university road show across four major
Italian cities between October 2009 and March 2010.
The initiative included distribution of more than
100,000 flyers on Australia, TV commercials, print
advertising, on-stage and media events and a
Facebook promotion.
• Launched an Italian-language Facebook site in October
2009. The site had 8,534 fans as at June 2010 against a
target of 6,000 fans for 2009/10.
• Exhibited at the Borsa Internazionale del Turismo event
in Milan in February 2010, with six Australian partners
and State and Territory Tourism Organisations.
• Showcased Australia-branded posters in more than
1,000 retail travel agency shopfront windows.
• Re-launched the new Aussie Specialist Program in
January 2010 via online advertising in trade media,
including an incentive trip to Australia. As at June 2010,
there were 618 qualified Aussie Specialist agents in Italy.
Fifty-six Aussie Specialists were sent on familiarisation
trips in 2009/10.
Australia received a total of 51,756 visitors from the
Netherlands in 2009/10, a decrease of 1 per cent compared
to the previous year. The Total Inbound Economic Value
decreased 3 per cent to AUD$274,150 in 2009/10, with
visitor nights increasing 4 per cent to 2.1 million for the year.
The Netherlands was moderately impacted by the global
financial crisis in comparison to most of its European
counterparts and technically emerged from recession
in the September 2009 quarter. The decline in total
Dutch arrivals to Australia in 2009 is directly linked to
the heightened cautious economic environment and
conservative consumer spending, which prevailed during
and after the global financial crisis.
The strength of the Australian dollar against the Euro
presented a challenge in regard to the price competitiveness
of Australian holiday products. There was a marginal
increase in working holiday visa grants issued to Dutch
visitors during 2009/10 compared to the previous year,
reflecting the resilience of the Youth market despite the
tough economic times.
In the first six months of 2010, Dutch arrivals have
rebounded – growth that can be attributed to a return in
consumer confidence and economic stability.
“Partner, Malaysia Airlines,
reported that the Zoover
promotion helped the
airline break its January
record for ticket sales.”
Highlights and results
• Launched a promotion with travel review website
Zoover, targeting Dutch travellers aged 44 and over
with an interest in exploring beyond gateway cities.
Partner, Malaysia Airlines, reported that the promotion
helped the airline break its January record for ticket
sales. Winners were presented with their prizes at the
Australia stand at Vakantiebeurs, a Dutch travel show
that regularly attracts more than 115,000 consumers.
• Partnered with studenten.net, a community website
aimed at Dutch students, to target the Youth segment
of the leisure consumer market. The campaign
attracted 100,966 unique visitors (against a target
of 75,000) to the website and generated 25,412
competition entries (against a target of 25,000).
Malaysia Airlines reported a 147 per cent increase in
ticket sales to Adelaide and a 41 per cent increase in
ticket sales to Brisbane. The two destinations featured
in blogs and vodcasts from studenten.net’s IMHP trip.
• As at June 2010, there were 203 qualified Aussie
Specialist agents in the Netherlands.
• In 2009/10, australia.com (Netherlands) received
43,552 monthly unique visitors.
• Participated in six major travel agent training initiatives
with multiple partners, resulting in 965 agents trained.
• In 2009/10, australia.com (Italy) received 87,772
monthly unique visitors, an increase of 1 per cent
compared to the previous year.
48 International Operations
2009–2010 ANNUAL REPORT 49
Europe
Europe
Spain
Australia received a total of 22,917 visitors from Spain in
2009/10, a decrease of 5 per cent compared to the previous
year. The Total Inbound Economic Value decreased 9 per
cent to AUD$115.3 million in 2009/10, with visitor nights
decreasing 8 per cent to 781,336 for the year.
Spain technically emerged from a two-year recession in
the first quarter of 2010. The country was hit hard by the
global financial crisis, with the highest unemployment rate
in Europe – 20 per cent overall and 40 per cent among the
15–24 age group.
This had an impact on the number of visitor arrivals
to Australia. However, feedback from Spanish trade
throughout 2009/10 indicated that travel to Australia
performed better than other long-haul destinations, in
particular among the Couples and Honeymoon segments.
Switzerland
“As at June 2010, there
were 289 qualified Aussie
Specialist agents in Spain,
an increase of 30 per cent
on the previous year.”
Australia received a total of 44,013 visitors from
Switzerland in 2009/10, an increase of 12 per cent
compared to the previous year. The Total Inbound Economic
Value increased 1 per cent to AUD$264.2 million in
2009/10, with visitor nights decreasing 6 per cent to 1.5
million for the year.
Switzerland technically emerged from recession in the
September 2009 quarter. It was one of the least impacted
European economies during the global financial crisis, in
terms of consumer confidence and unemployment.
“Launched the Swiss
version of australia.com
in July 2009; consumers
can now choose from four
language options.”
Relatively low air and ground fares, a strong Swiss franc (as
opposed to a weakened Euro) and the introduction of A380
services from Zurich to Australia helped drive demand
among Swiss consumers for leisure travel to Australia.
Highlights and results
Highlights and results
• Launched the Spanish-language version of australia.
com in October 2009. In 2009/10 the site received
52,115 unique visitors, an increase of 416 per cent
on the previous year, when only an English-language
version was available.
• Delivered the Come Walkabout consumer advertising
campaign with Singapore Airlines, using online and
print media. The campaign reach included 12,683,000
online page impressions and 256,000 print impressions.
• Undertook a Facebook promotion to create awareness
of the new Spanish-language version of australia.com.
The promotion, in partnership with Singapore Airlines,
resulted in over 10,000 users of the promotional tool.
• Coordinated the Australia stand at the FITUR travel
trade show for the first time, with 12 stand partners.
The January 2010 event attracted more than 124,000
consumer and trade participants.
• Re-launched the new Aussie Specialist Program in
February 2010 via online trade advertising and an
incentive trip to Australia. An impressive 652 travel
agents signed up to the program during this time;
26 per cent finished the program and became fully
qualified Aussie Specialists. As at June 2010, there
were 289 qualified Aussie Specialist agents in Spain,
an increase of 30 per cent on 2008/09.
• Arranged a press trip for Spanish Condé Nast Traveler
magazine to Victoria and the Northern Territory. The
exposure to date includes 14 pages in the May 2010
edition, with more to follow.
• Organised face-to-face training for 410 agents
throughout the year.
• Generated AUD$565,692 in PR coverage for 2009/10.
A highlight of the IMHP program was coverage of
the South Australian cattle drive in the Swiss daily,
ReiseBlick (circulation 240,000), in April 2010.
• Launched the Swiss version of australia.com in July
2009; consumers can now choose from four language
options. In 2009/10, australia.com (Switzerland)
received 30,923 unique visitors.
• Conducted 10 different cooperative trade marketing
campaigns using online and tram advertising, event
promotions, direct mail and print activity.
• Launched a youth promotion in partnership with
STA Travel and Qantas, in a leading free commuter
publication. The promotion ran in both the print and
online editions.
• Showcased Australia-branded posters in more than
1,400 retail travel agency shopfront windows.
• Participated in the Australia Village at FESPO,
Switzerland’s largest consumer travel show, in January
2010. The ‘village’ comprised wholesalers, Australian
suppliers, and State and Territory tourism partners.
• Re-launched the new Aussie Specialist Program with a
trade print and online advertising campaign in January
2010. As at June 2010, there were 139 qualified Aussie
Specialist agents in Switzerland.
• Undertook two major travel agent training initiatives
with multiple partners, resulting in 326 agents
being trained.
50 International Operations
2009–2010 ANNUAL REPORT 51
Nordic countries
Outbound travel from the Nordic countries was generally
not significantly affected by the recession. However, in
2009 there was slight decline in total arrivals from the
Nordic region, driven by a decrease in Swedish arrivals, the
largest market within the region. In the first six months
of 2010, there was an increase in Nordic arrivals, linked to
the relative stability of the Nordic economies during the
global financial crisis. Returning consumer confidence and
a stronger economic position during this period, especially
in Sweden, has resulted in strong arrivals growth for the
Swedish and Norwegian markets.
The Youth segment, the region’s largest visitor age group,
showed resilience despite the global financial crisis. As
a result, the number of working holiday visa grants in
Norway and Denmark increased by 27 per cent and 6
per cent respectively during 2009/10, compared to the
previous year.
Feedback from the Nordic trade in the first half of the
2010 calendar year suggested that lead times had started
to increase again compared to the latter half of 2009,
and Australia is once again a desired destination for
these markets.
Russia
“The Youth segment,
the region’s largest
visitor age group, showed
resilience despite the
global financial crisis.”
Highlights and results
• Exhibited at TUR, the leading Scandinavian trade fair for
travel, tourism and meetings, in March 2010. After the
trade engagement days, the stand was handed over to
trade partners for the consumer days, to encourage the
conversion of interest in Australia to sales.
• Participated in a cooperative marketing campaign to
launch STA Travel in Norway in June 2010. This new
operator will further stimulate demand for Australia.
• As at June 2010, there were 207 qualified Aussie
Specialist agents in Nordic countries.
• In 2009/10, australia.com (Nordic) received 90,812
monthly unique visits.
52 International Operations
Australia received a total of 12,756 visitors from Russia
in 2009/10, an increase of 5 per cent compared to the
previous year. The Total Inbound Economic Value decreased
15 per cent to AUD$80.2 million in 2009/10, with visitor
nights decreasing 20 per cent to 528,337 for the year.
The decline in Russian visitor arrivals during 2009 was
mainly driven by a decrease in holiday and business visits
as a result of the Russian economic downturn, declining
consumer confidence and cautious spending. The Russian
travel trade estimated the decline in demand for outbound
tourism in Russia to be 16 to 20 per cent in 2009.
The increase in Russian arrivals to Australia in the first six
months of 2010 has been driven by the leisure market, and
can be attributed to the resilience of high-spending luxury
consumers and a significant increase in the Visiting Friends
and Relatives segment. There has also been a significant
increase in business visits. Tour operators report growing
numbers compared to last year due to the stabilisation of
the Russian economy over the past six months and pent-up
demand from 2008.
“The increase in Russian
arrivals to Australia in
the first six months of
2010 can be attributed
to the resilience of highspending luxury consumers
and a significant increase in
the Visiting Friends and
Relatives segment.”
Highlights and results
• Exhibited at the Otdykh Leisure Show Moscow, the
largest international autumn trade fair for tourism in
Russia, in September 2009. The four-day event attracted
65,000 visitors. Tourism Australia was joined on the
Australia stand by 10 Australian operators.
• Launched the Russian-language version of australia.
com in March 2010, with a promotion in the popular
coffee shop chain Coffeemania.
2009–2010 ANNUAL REPORT 53
New Zealand
New Zealand is Australia’s largest source market for
visitors and the third largest economic contributor, with a
Total Inbound Economic Value of AUD$1.9 billion. Australia
received a total of 1,123,300 visitors from New Zealand
in 2009/10, an increase of 2 per cent compared to the
previous year.
Consumer confidence did not bounce back quickly in
2009/10 following the global financial crisis, but was
more buoyant than the previous year. Competitive airfares
and aviation growth on the Trans-Tasman route helped
stimulate travel throughout the year. Australia still holds
the majority market share (50 per cent) of all New Zealand
outbound departures.
“Competitive airfares and
aviation growth on the
Trans-Tasman route helped
stimulate travel throughout
the year. Australia still holds
the majority market share
(50 per cent) of all New
Zealand outbound departures.“
South Africa
Highlights and results
• Conducted the Short Break campaign, an eight-week
initiative during October and November 2009 to
drive short break opportunities. The campaign won
the Yahoo!Xtra NZ BAM award for Best Advertising
and Creative of the Month in October 2009. Partners
reported 2,892 passengers and 6,109 room nights from
the promotion.
• Launched the Brand Postcard Project, an innovative
outdoor campaign using billboards and giant
postcards. Running between April and June 2010, it
included a partnership with Air New Zealand and two
48-hour Aussie airfare sales. Results included 25,000
face-to-face engagements and more than 13,000
competition entries. The campaign made up 21 per
cent of overall website traffic for 2009/10. Air New
Zealand ticket sales increased by up to 42 per cent
during the promotion.
• Ran the Take Your Mates to Australia integrated digital
and viral marketing campaign, which included a
competition. The aim was to engage the Youth segment
through interactive and experiential Australian road
trips. The campaign attracted 5,959 competition entries
and engagements with more than 30,000 participants.
An average of 2,500 people visited the campaign site
every week.
• Hosted OZTalk 2010, New Zealand’s largest trade and
consumer travel event. The event attracted 243 New
Zealand buyers and 174 seller delegates.
• Generated PR coverage worth AUD$254,000 in
estimated advertising value from 43 articles.
Australia received a total of 61,361 visitors from South
Africa in 2009/10, a decrease of 5 per cent compared to the
previous year. The Total Inbound Economic Value decreased
29 per cent to AUD$222.6 million in 2009/10, with visitor
nights decreasing 13 per cent to 1.8 million for the year.
The South African economy was severely impacted by the
global financial crisis. Tourism operators reported that the
crisis directly impacted consumer sentiment throughout
2009/10 and demand for overseas travel, particularly longhaul travel.
Interest for short-haul destinations grew throughout
2009 due to consumers’ increasing focus on price and
affordability. Moreover, the unfavourable exchange rate
between the South African rand and the Australian dollar
contributed to the double-digit decline in South African
arrivals to Australia in 2009.
However, the launch of V Australia services from
Johannesburg to Melbourne in March 2010 generated
bookings for Australia in a market where visitor arrivals
have been in decline since February 2009. Competitive
pricing on the route is believed to have contributed to the
9 per cent increase in visitors in the four-month period to
June 2010 since the service started, compared to the same
four-month period in the previous year.
“The launch of V Australia
services from Johannesburg
to Melbourne in March
2010 generated bookings
for Australia in a market
where visitor arrivals
have been in decline since
February 2009.”
Highlights and results
• Brought together 17 Australian suppliers and 268 travel
agents at the Australia Travel Workshops road shows,
held in three South African cities in March 2010.
• Generated PR coverage worth an equivalent advertising
value of AUD$1,985,132 in 2009/10, against a target of
AUD$1,970,000.
• As at June 2010, there were 82 qualified Aussie
Specialist agents in South Africa.
• In 2009/10, australia.com (South Africa) received
17,716 monthly unique visits.
• Exhibited at the Pacific Area Incentives and Conferences
Expo in September 2009. The event attracted 116
exhibitors (44 Australian) and 176 buyers. Business
Events Australia was the major sponsor.
• Championed 12 projects with funds of AUD$1 million,
brought forward from the 2010/11 appropriation, with
an additional industry input of AUD$1 million.
• In 2009/10, australia.com (New Zealand) received
196,588 monthly unique visitors.
54 International Operations
2009–2010 ANNUAL REPORT 55
1
Japan
Japan is Australia’s fifth largest market in terms of visitor
numbers and economic yield. Australia received a total
of 363,800 visitors from Japan in 2009/10, a decrease of
10 per cent compared to the previous year. Visitor arrivals
in the second half of 2009 were down 21 per cent, but
returned to growth in the first half of 2010, with visitor
arrivals up 5 per cent on last year.
Economic and political uncertainty in Japan continued
to influence consumer sentiment and weakened longhaul travel. The outbreak of H1N1 influenza at the end of
April 2009 significantly impacted the Japanese outbound
market to Australia, particularly the school excursion
segment in the second half of 2009. However, the market
showed steady recovery in the first half of 2010.
Aviation capacity was also affected when Japan Airlines
filed for bankruptcy protection in January 2010. As part
of the restructure, the Narita to Brisbane service was
suspended (effective from the end of September 2010).
However, Jetstar introduced new direct services from
Kansai to Cairns in April 2010.
Highlights and results
• Implemented Aussie Oji, a major digital campaign
promoting special interest travel experiences for young
females. The campaign generated 700,000 cumulative
monthly unique visits to australia.com.
• Secured 28,821 bookings through cooperative activity
with State and Territory Tourism Organisations; major
agent partners in Tokyo, Osaka and Nagoya; Japan
Airlines, Qantas, Jetstar, and Continental Airlines.
• Rolled out a campaign targeting the Jukunen (over
55) segment, through editorials and events with
major Japanese newspapers. The campaign’s online
component was a major travel portal featuring
three storytellers. Cooperative activities were also
undertaken with travel agent partners strong in the
Jukunen segment.
• Showcased the Special Interest travel theme of
Australian wildlife to more than 11,000 visitors at the
JATA World Travel Fair, in partnership with State and
Territory Tourism Organisations, Qantas and Jetstar.
Targets were met for this activity.
“Economic and political
uncertainty in Japan
continued to influence
consumer sentiment and
weakened long-haul travel.
However, the market
showed steady recovery
in the first half of 2010.”
• Partnered with the Japan Association of Travel Agents
(JATA), State and Territory Tourism Organisations,
Qantas and Jetstar to launch the Aussie Specialist
Program. Around 128 agents registered for the
program, with 82 qualifying (17 per cent above target).
A JATA familiarisation program was conducted for
77 retail agents (54 per cent above target), as well as
seminars for 148 retail agents.
• Hosted Japan–Australia Mission (JAM) 2010 in Tokyo for
50 Japanese buyers and 35 Australian sellers.
• Relaunched a school excursion website, resulting in
93,153 unique visitors. Partnered with the Australian
Embassy and State and Territory Tourism Organisations,
Qantas and Jetstar to host workshops in Tokyo and
Osaka to promote study in Australia. Around 160
teachers attended the workshop.
• Supported 10 charter flights to Cairns from Tokyo,
Nagoya, Nagasaki and Fukuoka to take advantage of
seasonal demand and niche segment opportunities.
2
3
4
1. Melbourne: Corroboree Europe
2010 2. Netherlands: Zoover
campaign competition winners
presentation. 3. Tourism Australia’s
America Team 4. UK: Tourism
Australia and Emirates outdoor
cooperative advertising 5. Sydney:
See Australia Latin Famil &
Workshop April 2010
5
• Attracted 35 buyers to the Australian Tourism Exchange
2010 in Adelaide.
• Attracted eight buyers to Dreamtime 2009 in Sydney.
• In 2009/10, australia.com (Japan) received 1,249,496
unique visitors.
• Generated AUD$54,149,871 in estimated advertising
value through the IMHP and PR activity.
• Ran a campaign to raise awareness of two key Australian
marathons with Tourism Queensland, Gold Coast
Tourism, Tourism New South Wales and key agents.
Around 1,117 Japanese runners participated in the Gold
Coast Marathon and 555 in the Sydney Marathon.
56 International Operations
2009–2010 ANNUAL REPORT 57
1
North Asia
Hong Kong
Australia received a total of 154,331 visitors from Hong
Kong in 2009/10, an increase of 3 per cent compared to the
previous year. The Total Inbound Economic Value increased
1 per cent to AUD$653.9 million in 2009/10.
2
3
4
1. China: Premier Aussie Specialist Event, 2010
Shanghai World Expo. 2. Japan: Australian
industry visiting travel agents in Tokyo as part
of the Oji campaign. 3. Korean travel industry
seminar, Busan 2010. 4. China: See the
Pavilion, Feel the Country campaign launch
2010, Shanghai World Expo 5. Korea Travel
Mission 2010 6. China: Australian Corporate
Business Event, North Asia, Australia Pavilion
2010, Shanghai World Expo.
5
The Hong Kong outbound market, particularly the Family
Leisure segment, was impacted by the global financial
crisis and the H1N1 influenza during the 2009 summer
peak season. To encourage recovery in the outbound
market, airlines and trade partners introduced compelling
offers from August 2009. Coupled with the weaker
Australian dollar in the last quarter of 2009, this resulted in
a strong rebound in visits to Australia. In addition, Qantas
operated nine supplementary services during the 2010
Chinese New Year peak season to meet seasonal demand.
Travel to Australia softened following the strengthening
of the Australian dollar and the significant drop in value
of the Euro and British pound. This created a strong
competitive edge for Australia’s key long-haul competitors
from April to June 2010.
The Free Independent Travel (FIT) segment continued to
grow due to competitive ticket-only promotions from
airlines and aggressive marketing campaigns by the
region’s low-cost carriers. Hong Kong trade increased its
investment in the FIT segment by establishing special
business units and expanding branches to service the
growing segment.
Hong Kong’s economic recovery was reflected in the 25 per
cent increase (at May 2010) in business events arrivals.
6
58 International Operations
“Hong Kong’s economic
recovery was reflected in
the 25 per cent increase
(at May 2010) in
business events arrivals.”
Highlights and results
• Partnered with Qantas and key agents to promote nine
supplementary services to Australia during the 2010
Chinese New Year period. The charters delivered 2,276
passengers to Cairns and Brisbane, with an average
load of 91 per cent.
• Partnership with Qantas and key agents to target the
group travel market.
• Implemented the My Short Break campaign with
Cathay Pacific and key agents to target the FIT market
and position Australia as a short-break destination. The
campaign attracted more than 26,000 monthly unique
visitors to australia.com (Hong Kong).
• Generated AUD$2,045,153 in media value and 214
articles through eight IMHP media familiarisations,
targeting the Group Independent Traveller and FIT
segments. Karen Mok, a well-known figure in Greater
China, was recruited as the first Asian Friend of Australia.
• Achieved 98 per cent growth in the number of qualified
Aussie Specialist agents by focusing on five major retail
agencies and providing quality training seminars for
frontline staff.
• Engaged State and regional tourist offices to develop
12 new short-break packages in partnership with
agents. The packages included self-drive group tours
with Miramar Travel and small group offers with
Kunoi Travel.
• Co-hosted the Friends of Australia event with two
convention and visitor bureaux to target the business
events segment. Twenty corporate end-users and
20 agents attended the event.
• Achieved 97 per cent growth in the number of monthly
unique visitors to australia.com (Hong Kong).
2009–2010 ANNUAL REPORT 59
North Asia
North Asia
China
South Korea
China is Australia’s largest market in terms of Total
Inbound Economic Value. Australia received a total of
393,929 visitors from China in 2009/10, an increase of
10 per cent compared to the previous year. The Total
Inbound Economic Value increased 18 per cent to
AUD$2.8 billion in 2009/10.
China’s economy grew by 8.7 per cent in 2009 and is
forecast to grow 9.4 per cent in 2010. In 2009, total
outbound travel was 47.7 million people, an increase of
4 per cent on the previous year, and is forecast to grow by
7 per cent in 2010.
“Major Chinese airlines
such as China Southern
Airlines, Air China and
China Eastern Airlines
plan to develop new routes
and increase capacity
substantially in 2010.”
Competition in China continues to intensify. Demand
for travel to the USA and Western Europe has increased
strongly. From July to August 2009, the market was heavily
impacted by the H1N1 influenza virus. However, after
quarantine measures were lifted, the pent-up demand
resulted in a rebound in visits from September 2009
onwards.
A strong charter program of eight services, including
several new routes from Beijing to Brisbane and Cairns
and Guangzhou to Adelaide, operated during the 2010
Chinese New Year peak season. The bilateral air services
talks between Australia and China were also positive
in promoting long-term air service development. Major
Chinese airlines such as China Southern Airlines, Air China
and China Eastern Airlines plan to develop new routes and
increase capacity substantially in 2010.
The most significant growth segment and now the largest
for Chinese travel to Australia is the 15–29 age group.
60 International Operations
Highlights and results
• Negotiated and signed a Strategic Partnership
Agreement with China Southern Airlines to support
long-term aviation development between southern
China and Australia. In late 2010, China Southern
Airlines will increase the number of services to
Australia from 10 to 24 weekly, including new services
to Brisbane.
• Leveraged the 2010 Shanghai World Expo to host four
major events. Tourism Australia partnered with 47
Premier Aussie Specialist agents for a major nationwide
See the Pavilion, Feel the Country promotion, which
generated 10,254 bookings from May to June 2010,
exceeding target by over 6,000 bookings. The digital
promotion attracted nearly 2 million cumulative
monthly unique visitors to australia.com (Hong Kong).
Sixty-three corporate buyers from North Asia attended
the Business Events Forum during the Expo (90 per
cent of target).
• Partnered with five agents, two State Tourism
Organisations and three airlines to promote 12
charters from Beijing, Guangzhou and Shenzhen to
Cairns, Brisbane and Adelaide during Chinese New Year.
The charters delivered 3,010 visitors to Australia.
• Launched separate cooperative brand campaigns
with Premier Aussie Specialist agents and an H1N1
recovery campaign with Qantas in primary cities, and a
cooperative brand campaign with Singapore Airlines in
secondary cities, resulting in 9,400 bookings (4 per cent
above target).
• Generated 157 articles and programs worth AUD$13.08
million in estimated value (25 per cent above target)
through the IMHP and Visiting Opinion Leader program.
The advocacy program, with celebrities Chen Kun and
Jerry Yan, generated 342 articles worth AUD$3.56
million in advertising value (78 per cent above target).
• Hosted the inaugural Greater China Travel Mission in
Guangzhou, involving 48 Australian sellers (including
13 inbound tourism operators) and 179 buyers from
China, Hong Kong and Taiwan (3 per cent above target
overall). The event received a 100 per cent agent
satisfaction rating (2 per cent above target).
• In 2009/10, australia.com (Hong Kong) received more
than 3 million monthly unique visitors.
Australia received a total of 196,046 visitors from South
Korea in 2009/10, a decrease of 17 per cent compared
to the previous year. The Total Inbound Economic Value
decreased 5 per cent to AUD$1.1 billion in 2009/10.
The number of South Korean outbound travellers was
down by 21 per cent in 2009, as a result of the economic
downturn and the H1N1 outbreak in the 2009 summer
season. Long-haul destinations suffered as a result, with
arrivals to Australia down by 17 per cent. However, the
Korean economy and consumer sentiment recovered
strongly in the first half of 2010, which was reflected in
a 17 per cent increase in arrivals compared to the same
period last year.
Visitors aged 15–29 years were the major inbound
segment, driven largely by the growth in the Free
Independent Traveller (FIT) and the Working Holidaymaker
segments. The over-45 years old segment also recovered in
the first half of 2010, following significant declines in 2009.
The availability of seats for group package agents will be a
critical issue in the recovery of the South Korean market.
Competition from the USA has intensified following
the launch of the USA Visa Waiver Program in August
2008 and an increase in direct airline services to the USA.
However, it is hoped visitor arrivals will increase in the
coming year following the launch of a major Australian
consumer advertising campaign worth AUD$6.3 million
by Korean Airlines.
“Tourism Australia was
voted the number one
National Tourism Office
in terms of quality travel
information my readers of
COLA magazine.”
Highlights and results
• Leveraged trade partnerships for the Adventure Seeker
project, including a cooperative campaign with Tourism
Victoria and nine agents, and a digital campaign with
seven agents. The project drove the majority of the
6.8 million monthly unique visitors to australia.com
(Korea), which was 14 per cent above target.
• Generated more than 28,000 package sales in
partnership with nine agents through the Honeymoon
and Functional Traveller campaigns (10 per cent above
the target of 25,500 bookings).
• Created a digital campaign to support group
agents and to highlight the flight options available to
consumers. This initiative generated more than 126,000
visits to australia.com (Korea).
• Generated more than AUD$3.68 million in
equivalent advertising value through the IMHP. Sixtynine features were published following 30 media
familiarisations targeting the Adventure Seeker and
Family Focus segments.
• Initiated a business events seminar in partnership with
the Sydney, Melbourne and Gold Coast convention and
visitors bureaux, engaging 92 agents, corporate clients
and airlines.
• Hosted six key South Korean corporates and airlines
at a major business events function during the 2010
Shanghai World Expo.
• Exceeded buyer and seller targets for the Korea Travel
Mission in Tokyo by 34 per cent and achieved a 95 per
cent satisfaction rating from both buyers and sellers.
• Initiated a new trade seminar in Busan, South Korea’s
second largest city, for 110 agents, in partnership with
Dragon Air and State and Territory Tourism Offices.
• Conducted the Korea Segmentation Study and hosted a
seminar to share insights with three State and Territory
Tourism Organisations and 55 industry stakeholders.
• Achieved 21 per cent growth in the number of qualified
Aussie Specialist agents through offline training seminars.
• Voted by readers of COLA Magazine as the number
one national tourism office in terms of quality
travel information.
2009–2010 ANNUAL REPORT 61
North Asia
South and South East Asia
Taiwan
Australia received a total of 88,113 visitors from Taiwan in
2009/10, a decrease of 5 per cent compared to the previous
year. The Total Inbound Economic Value was AUD$385.8
million in 2009/10.
The recovery of the Taiwanese economy was slower than
other Asian countries, hindered by a major typhoon and
severe flooding during the Taiwanese summer. Total
outbound travel was down by 3.8 per cent.
Despite this, arrivals to Australia were strong due to
increased capacity from China Airlines and strong
support from trade in promoting Australia. However,
following the launch of direct flights to London
and China in late 2009, and the stronger Australian
dollar in 2010, airline capacity and trade promotional
efforts shifted to these competitor destinations.
Holiday visits remained the main source of visitation, with
major segments being the 15–29 and 30–44 age groups.
Malaysia
“Arrivals to Australia
were strong due to
increased capacity from
China Airlines and strong
support from trade to
promote Australia.”
Highlights and results
• Launched a digital brand campaign targeting First
Time Experience Seekers in partnership with 13 travel
agencies, resulting in more than 128,000 visitors to
australia.com (Taiwan) and more than 1,100 bookings;
both of these results were well above target.
• Provided marketing support for three charter services
to Cairns and one to Brisbane in 2010.
• Launched a joint Australian promotion with 12 travel
agents during the 2009 Taipei International Travel Fair,
and an online promotion with 15 agents – resulting in
1,200 bookings.
• Implemented five cooperative consumer campaigns
with China Airlines, Singapore Airlines, Qantas and
Enjoy Travel Service.
• Coordinated three IMHP familiarisations, which
generated 15 articles (25 per cent above target) with an
estimated equivalent advertising value of AUD$59,182.
• Conducted an Aussie Specialist Program training seminar
for 120 agents, 12 per cent from secondary cities.
• Initiated partnerships with the Sydney, Melbourne
and Gold Coast convention and visitor bureaux and
conducted business events product training for 50
business events agents.
• In 2009/10, australia.com (Taiwan) received 102,414
monthly unique visitors.
62 International Operations
Australia received a total of 214,343 visitors from Malaysia
in 2009/10, an increase of 10 per cent compared to the
previous year. The Total Inbound Economic Value increased
6 per cent to AUD$901.4 million in 2009/10, with visitor
nights increasing 1 per cent to 6.6 million for the year.
This was the first time that arrivals from Malaysia topped
the 200,000 mark. Visitor numbers surged in the last
quarter of 2009 as H1N1 concerns and the global financial
crisis compelled consumers to holiday within the Asian
region. Outbound travel beyond Asian destinations revived
in the second half of 2009, aided by competitive airfare
offers by low-cost carrier AirAsia X and legacy carriers
Malaysia Airlines and Singapore Airlines.
Consumer confidence remained high in 2010. The
Malaysian economy grew 10.1 per cent in the first quarter
of 2010 and is forecast to grow 5–6 per cent in 2010.
Despite the strong Australian dollar, Australia captured a
high volume of international bookings made at the March
2010 Malaysian Association of Tour and Travel Agents
consumer travel fair.
Aviation capacity increased in the first half of 2010.
Emirates launched its new Kuala Lumpur–Melbourne
service in February 2010.
North Asia competitor destinations ran aggressive
marketing campaigns, particularly China for the 2010
Shanghai World Expo. Western European destinations also
highlighted the low Euro with new packages.
“Australia received a total
of 214,343 visitors from
Malaysia in 2009/10 ...
This was the first time
that arrivals from Malaysia
topped the 200,000 mark.”
Highlights and results
• Continued the Great Australian Journeys campaign to
encourage visitors to self- drive and explore more of
Australia. This joint tactical campaign with State and
Territory Tourism Organisations and Aussie Specialist
partner agencies exceeded booking targets by 37 per
cent. PR and IMHP activities generated 47 stories. An
online game called Ultimate Aussie Road Trip ran for
six weeks and generated more than 39,000 visits to
the campaign microsite; 35,000 outbound referrals
to australia.com (Malaysia); and nearly 2,500 game
entries. Around 37,500 virtual postcards were also sent
to players’ friends, sharing their favourite experiences
for each route. An average of 13 pages were viewed by
visitors, spending an average of 9 minutes on the site.
• Launched the Only in Oz promotional campaign in
March 2010 with partner Malaysia Airlines. PR and
IMHP activities generated 48 stories, including one from
a media visit coinciding with the Vivid Sydney event. A
joint tactical campaign with State and Territory Tourism
Organisations and Aussie Specialist partners offered
exclusive land packages and bonus offers on a range of
Only in Oz experiences. Bookings exceeded targets by
240 per cent.
• Generated 110 media impressions with an estimated
equivalent advertising value of AUD$6.3 million
through public relations activities, including a Visiting
Opinion Leader program visit by two top Malaysian
bloggers.
• Four buyers attended Dreamtime 2010; 31 buyers
attended Australian Tourism Exchange 2010; and
two corporates and two buyers attended the Tourism
Australia Business Events Educational 2010.
• Conducted the first Tourism Australia Malaysia
Passenger study from October 2009 to January 2010.
Key findings from the study have been incorporated into
Malaysia’s 2010/11 market plans and media strategies.
• As at June 2010, there were 104 qualified Aussie
Specialist agents in Malaysia.
• In 2009/10, australia.com (Malaysia) received 209,321
monthly unique visitors, driven mainly by the Great
Australian Journeys campaign.
2009–2010 ANNUAL REPORT 63
South and South East Asia
South and South East Asia
Singapore
Australia received a total of 289,937 visitors from Singapore
in 2009/10, an increase of 4 per cent compared to the
previous year. The Total Inbound Economic Value increased
7 per cent to AUD$988.4 million in 2009/10, with visitor
nights increasing 10 per cent to 5.8 million for the year.
The depressed economic climate at the end of 2009
had a significant impact on consumer confidence in this
export-dependent economy. Tourism Australia capitalised
on aggressive discounting by key trade partners and
Australia’s ‘closest Western destination’ status to increase
market share and record above-forecast arrivals for the
2009 calendar year.
Research identified pent-up demand for travel
among families and early signs of resilience to the
global financial crisis among singles and couples with no
children. Accordingly, initiatives were run to target these
two segments in the second half of 2009 and the first
half of 2010.
Although competitive pressure increased in early 2010,
partnerships forged with agents during the global financial
crisis in 2009 enabled Tourism Australia to leverage these
relationships and significantly increase exposure for Australia
as consumers became more active in planning their travel.
The Singapore economy rebounded strongly in the first half
of 2010, with the Singapore Government forecasting that it
will grow by 13 to 17 per cent in the coming year.
“Visitor numbers from
Singapore increased by
4 per cent in 2009/10,
with Total Inbound
Economic Value up by
7 per cent.”
India
Highlights and results
• Launched the Family Playtime campaign in December
2009 in partnership with eight State and Territory Tourism
Organisations, Warner Village Theme Parks, Singapore
Airlines and 13 Aussie Specialist agents. The campaign
aimed to increase the volume of travellers, particularly
families, to Australia. A major PR and advertising program,
including print, radio, online and consumer travel events,
was run to promote a range of value-based Australian
experiences. Consumers responded well to the campaign
and the number of bookings with the airline partner
exceeded the target by 88 per cent. The results of this
campaign eclipsed other previous initiatives in terms of
enquiries and bookings made through partners.
• Continued the Great Australian Journeys campaign
to capitalise on Australia’s strong ownership of the
self-drive market in Singapore. This joint tactical
campaign with Qantas and eight State and Territory
Tourism Organisations highlighted the diverse range of
experiences available on 17 suggested routes. An online
game called Ultimate Aussie Road Trip ran for six weeks
and generated more than 53,000 visits to the campaign
microsite; 37,000 outbound referrals to australia.com
(Singapore); and over 1,900 game entries. Around
82,000 virtual postcards were also sent to players’
friends, sharing their favourite experiences for each
route. On average, visitors viewed 10 pages and spent
8 minutes on the site. The number of bookings with
partners exceeded targets by 30 per cent.
• Partnered with Singapore Airlines on a fare offer to
promote five key Australian gateways. Singapore
Airlines increased retail advertising by working with
State and Territory Tourism Offices to boost passenger
numbers for the June school holiday period. The
campaign generated a significant increase in bookings
compared to the same time last year.
• Generated 108 press, radio and television broadcast
impressions through PR activities, with an estimated
advertising value of AUD$2.5 million.
• Conducted a number of educational events with more
than 30 travel agents active in the business events
market, and engaged directly with 40 corporate end
users to present Australia as a destination for meetings,
incentives, conventions and exhibitions.
Australia received a total of 129,870 visitors from India
in 2009/10, an increase of 8 per cent compared to the
previous year. The Total Inbound Economic Value increased
2 per cent to AUD$752.3 million in 2009/10, with visitor
nights increasing 5 per cent to 7.5 million for the year.
Positive Indian consumer sentiment declined significantly
in the past 12 months due to ongoing negative media
coverage of incidents impacting Indian students studying in
Australia. Tourism Australia commissioned research to track
consumer sentiment and assist in formulating the 2010/11
market strategy. Trade and consumer feedback indicated
safety concerns in the key consumer target segment of
higher socio-economic level leisure travellers.
Planned 2009/10 marketing activities could not proceed
due to the aforementioned negative publicity. Instead,
below-the-line PR activities were executed and support
was provided to trade partners for their ongoing
marketing activities.
“Due to negative publicity,
below-the-line PR activites
were executed and support
was provided to trade
partners’ marketing activities.”
Highlights and results
• Initiated the India Perceptions Study in September
and October 2009 to measure consumer perceptions
of Australia. This was followed by an India Activation
Study from November to January 2010, which built a
profile of the Indian long-haul traveller and provided an
updated understanding of consumer perceptions. The
third stage of the study was conducted in June 2010.
Results from both studies have been incorporated into
the 2010/11 India market strategy.
• Continued trade servicing activities by supporting
trade partners’ marketing activities and promotions.
PR activities were also executed to highlight the unique
experiences offered by Australia.
• Generated 112 articles with an estimated advertising
value of AUD$727,000 through IMHP and PR activities.
• Four buyers attended Dreamtime 2010, nine buyers
attended Australian Tourism Exchange 2010, and two
corporates and three buyers attended the Tourism
Australia Business Events Educational 2010. Around 98
buyers and 70 sellers attended the Indian Mega Famil
and Workshop on the Gold Coast in August 2009.
• As at June 2010, there were 527 qualified Aussie
Specialist agents in India. Ongoing trade servicing
has ensured continued trade support for the Aussie
Specialist Program. The Preferred Aussie Specialist
Program also enjoyed strong support, with 114
preferred agencies and 204 agents.
• As at June 2010, there were 146 qualified Aussie
Specialist agents in Singapore.
• In 2009/10, australia.com (Singapore) received 202,599
unique visitors.
64 International Operations
2009–2010 ANNUAL REPORT 65
Rest of Asia
Indonesia
Highlights and results
Indonesian arrivals in 2009 exceeded 100,000 for the first
time since 1997. Indonesia was relatively untouched by the
global financial crisis and its economy grew 5.7 per cent in
the first quarter of 2010. Outbound travel has surged as
consumers remained highly positive.
• In Indonesia, conducted an advertorial campaign with
the Wonder Holidays consortium, which resulted in
bookings exceeding target by 35 per cent. A similar
campaign with the Our Holidays consortium reached
90 per cent of target bookings.
Garuda Indonesia launched Melbourne services and
increased Sydney services in August 2009. The airline
plans to add capacity throughout its network, including on
Australian routes, over the next 12 months. Other airlines
serving Indonesia to Australia routes are Qantas
(to Sydney) and Jetstar (to Perth).
• In Vietnam, ran two campaigns with trade partners.
Bookings generated from these projects achieved 96
per cent of target.
Thailand
Thailand arrivals to Australia were maintained, although
the political unrest from April to June 2010 in Bangkok
shook consumer and investor confidence. Overall, the Thai
economy appeared unscathed, with the Bank of Thailand
forecasting 2010 growth at 6 per cent. Trade servicing
activities in Thailand were cancelled in the last quarter of
2009/10, including the business events segment, where
Thailand has been a strong performer.
Vietnam
Vietnam arrivals continued to grow, mostly driven by
consumers visiting friends and relatives due to strong
family ties. The holiday and education segments are
growing but their share of arrivals is not significant as yet.
The Vietnamese economy has recovered from its 2008
downturn and grew 5.3 per cent in 2009, with consumer
confidence tracking above average levels.
Gulf countries
Expatriates continue to dominate Gulf arrivals, particularly
Dubai, which suffered badly from the global financial crisis.
Market activities for 2009/10 focused on supporting airline
and State partners’ marketing efforts, and encouraging
Gulf nationals to share their Australian holiday experiences
on a local Arabic website.
66 International Operations
• In Thailand, supported the Department of Immigration
and Citizenship (DIAC) visa training sessions for agents
in July 2009. Trade partners were also supported at the
Thai Travel Association’s annual fair in February 2010.
Advertorial campaigns with Premier Aussie Specialist
agents in January and Siam Orchard Travel in February
achieved 90 per cent and 40 per cent of booking
targets respectively.
• The Thai and Vietnamese language versions of
australia.com were launched in April 2010.
• Met trade event attendance targets, with three Thai
agents attending Dreamtime; and two Indonesian
buyers and one corporate, two Thai buyers and one
corporate, and one Vietnamese corporate attending the
Tourism Australia Business Events Educational 2010.
• Attracted nine buyers from Indonesia, 13 buyers
from Thailand, two buyers from the Gulf countries,
and four buyers from Vietnam to Australian Tourism
Exchange 2010.
• In Gulf countries, launched a cooperative project with
Singapore Airlines, Tourism New South Wales, Tourism
Queensland and Tourism Victoria in the United Arab
Emirates, Kuwait and Qatar, in May and June 2010.
Consumer response to the project was positive. An
Arabic consumer promotion took place from November
to January 2009, which encouraged consumers to share
their Australian holiday experiences. There were 14,125
unique visitors to the project’s Arabic microsite, and
25,152 click-throughs from contest banners placed on a
popular Arabic website.
• Achieved 93 per cent of Aussie Specialist target
numbers, with a total of 244 agents qualified (21 in
Vietnam, 142 in Thailand, 37 in Indonesia and 44 in
the Gulf countries).
Financial Statements
for the Year Ended 30 June 2010
Flinders Ranges, SA. Photography: Peter Fisher 67
Notes
68 Financial Statements
2009-2010 ANNUAL REPORT 69
Notes
Statement
Statement of Comprehensive Income
Notes
by the Board Chairman, Audit and Finance Committee Chairman and Managing Director
for the year ended 30 June 2010
Notes
In our opinion, the attached financial statements for the year ended 30 June 2010 are based on properly maintained
financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the
Commonwealth Authorities and Companies Act 1997, as amended.
In our opinion, at the date of this statement, there are reasonable grounds to believe that Tourism Australia will be able
to pay its debts as and when they become due and payable.
This statement is made in accordance with a resolution of the directors.
Expenses
Employee benefits
Supplier expenses
Depreciation and amortisation
Finance costs
Write-down and impairment of assets
Losses from asset sales
Other expenses
3A
3B
3C
3D
3E
3F
3G
Total expenses
2010
$’000
2009
$’000
25,948
109,755
2,934
35
–
4
4,238
31,827
132,809
3,177
37
425
2
5,256
142,914
173,533
85
3,101
2,058
10,339
809
281
5,365
2,531
13,218
943
Less
Geoff Dixon
Board Chairman
Janet Whiting
Director
27 August 2010
27 August 2010
Own income source
Own-source revenue:
Sale of goods and rendering of services
Advertising
Interest
Contributions revenue
Rental income
Other revenue
4A
4B
4C
4D
4E
4F
Total own-source revenue
Gains:
Foreign exchange
Other gains
Andrew McEvoy
Managing Director
27 August 2010
Grant Le Loux
Executive General
Manager Corporate
4G
4H
Total gains
Total own-source income
1,163
1,243
17,555
23,581
548
370
1,907
70
918
1,977
18,473
25,558
124,441
147,975
27 August 2010
Net cost of services
Revenue from Government
141,622
137,559
17,181
(10,416)
Other Comprehensive Income
Changes in asset revaluation reserve
380
90
Total other comprehensive income
380
90
17,561
( 10,326)
Surplus (Deficit) attributable to the Australian Government
Total comprehensive income (loss) attributable to the
Australian Government
4I
The above statement should be read in conjunction with the accompanying notes.
70 Financial Statements
2009–2010 ANNUAL REPORT 71
Notes Sheet
Balance
Statement
Notes
of Changes in Equity
as at 30 June 2010
for the year ended 30 June 2010
Notes
2010
$’000
2009
$’000
Retained earnings
Assets
Financial assets:
Cash and cash equivalents
Trade and other receivables
Investments
5A
5B
5C
Total financial assets
Non-financial assets:
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
Other non-financial assets held for sale
12,321
5,512
–
Opening balance:
Balance carried forward
from previous year
24,586
17,833
Adjusted opening balance
1,562
723
7,480
983
–
1,466
501
4,879
1,497
–
Total non-financial assets
10,748
8,343
Total assets
35,334
26,176
Liabilities
Payables:
Suppliers
Other payables
6A
6B
6C
6D
6E
20,383
4,203
–
Total comprehensive income
of which:
Attributable to the
Australian Government
Transactions with owners:
Other – return of foreign
exchange surplus
7A
7B
Total payables
Provisions:
Employee provisions
Other provisions
Comprehensive income:
Surplus for the period
Other comprehensive
income
8A
8B
Contributed
equity/capital
Reserves
Total equity
2010
$’000
2009
$'000
2010
$’000
2009
$’000
2010
$’000
2009
$’000
2010
$’000
2009
$’000
5,226
21,830
1,545
1,455
827
827
7,598
24,112
5,226
21,830
1,545
1,455
827
827
7,598
24,112
17,181
(10,416)
–
–
–
–
17,181
(10,416)
–
–
380
90
–
–
380
90
17,181
(10,416)
380
90
–
–
17,561
(10,326)
17,181
(10,416)
380
90
–
–
17,561
(10,326)
–
(6,188)
–
–
–
–
–
(6,188)
–
(6,188)
–
–
–
–
–
(6,188)
5,141
1,039
11,482
1,688
Sub-total transactions
with owners
6,180
13,170
Closing balance as at 30 June
22,407
5,226
1,925
1,545
827
827
25,159
7,598
4,421
987
Closing balance attributable
to the Australian
Government
22,407
5,226
1,925
1,545
827
827
25,159
7,598
The above statement should be read in conjunction with the accompanying notes.
3,390
605
Total provisions
3,995
5,408
Total liabilities
10,175
18,578
Net assets
25,159
7,598
Equity
Contributed equity
Reserves
Retained surplus
827
1,925
22,407
827
1,545
5,226
Total equity
25,159
7,598
The above statement should be read in conjunction with the accompanying notes.
72 Notes to the Financial Statements
2009–2010 ANNUAL REPORT 73
Cash Flow Statement
Schedule of Commitments
for the year ended 30 June 2010
as at 30 June 2010
Notes
2010
$’000
Operating activities
Cash received:
Goods and services
Receipts from Government
Interest
Net GST received
16,170
141,622
2,045
4,933
21,603
137,559
2,605
4,630
Total cash received
164,770
166,397
Cash used:
Employees
Suppliers
Other cash used
26,979
124,702
–
30,759
144,210
6,188
Total cash used
151,681
181,157
13,089
(14,760)
Net cash from (used by) operating activities
9
Investing activities
Cash used:
Purchase of property, plant and equipment
Purchase of intangibles
644
4,931
446
3,052
Total cash used
5,575
3,498
Net cash used by investing activities
(5,575)
(3,498)
Net increase (decrease) in cash held
7,514
(18,258)
12,321
548
28,672
1,907
20,383
12,321
Cash and cash equivalents at the beginning of the year
Effect of exchange rate movements on cash and cash equivalents
Cash and cash equivalents at the end of the year
The above statement should be read in conjunction with the accompanying notes.
5A
2010
$’000
2009
$’000
By type
Commitments receivable:
Sublease rental income
GST recoverable on commitments
(2,606)
(1,497)
(2,477)
(1,884)
Total commitments receivable
(4,103)
(4,361)
Other commitments:
Operating leases1
Other commitments2
12,712
23,297
18,359
19,663
2009
$’000
Total other commitments
36,009
38,022
Net commitments by type
31,906
33,661
By maturity
Commitments receivable:
Other commitments receivable:
One year or less
From one to five years
Over five years
(2,175)
(1,928)
–
(1,900)
(1,907)
(554)
Total other commitments receivable
(4,103)
(4,361)
5,245
7,467
–
6,356
10,064
1,938
Total operating lease commitments
12,712
18,358
Other commitments:
One year or less
From one to five years
19,974
3,323
12,710
6,954
Commitments payable
Operating lease commitments:
One year or less
From one to five years
Over five years
Total other commitments
23,297
19,664
Net commitments by maturity
31,906
33,661
Note: Commitments are GST inclusive where relevant.
Commitments receivable comprises sublease rental receivable and GST recoverable.
1. Operating leases comprise leases for office accommodation and equipment leases.
2. Other commitments comprise amounts payable under project agreements in respect of which the recipient is yet to either perform
the services required or meet eligibility conditions.
74 Financial Statements
2009–2010 ANNUAL REPORT 75
Schedule of Commitments
Schedule of Asset Additions
as at 30 June 2010
for the year ended 30 June 2010
Nature or lease
General description of leasing arrangement
Leases for office accommodation
The lease payments for some offices are subject to annual increases in
accordance with the terms of the leases. The initial periods of the office
accommodation leases are still current and some of the leases may be
renewed for up to five years at Tourism Australia’s option, with adjustment
of rentals according to the terms of the leases.
A lease in relation to computer
equipment held as at 30 June 2010
The lessors provide all computer equipment and software designated as
necessary in the supply contract for two to three years. Items of computer
equipment supplied under this lease have useful lives of two to three years
from the commencement of the contract.
The above schedule should be read in conjunction with the accompanying notes.
Schedule of Contingencies
as at 30 June 2010
There were no known contingencies as at 30 June 2010 (2009: NIL).
Year ended 30 June 2010
Non-financial non-current assets added during the year
Additions funded in the current year:
By purchase – appropriation of ordinary
annual services
Total additions funded in the current year
Computer
software
internally Campaign
developed production
$’000
$’000
Total
$’000
223
421
813
4,118
5,575
223
421
813
4,118
5,575
Additions recognised in 2009–10 to be
funded in future years:
Make good
117
–
–
–
117
Total additions to be funded in future years
117
–
–
–
117
Total additions
340
421
813
4,118
5,692
Non-financial non-current assets added during the year
Additions funded in the current year:
By purchase – appropriation of ordinary
annual services
Total additions funded in the current year
Year ended 30 June 2009
332
114
2,528
524
3,498
332
114
2,528
524
3,498
Additions recognised in 2008–09 to be
funded in future years:
Make good
68
–
–
–
68
Total additions to be funded in future years
68
–
–
–
68
400
114
2,528
524
3,566
Total additions
76 Financial Statements
Other
property,
plant &
Buildings equipment
$’000
$’000
2009–2010 ANNUAL REPORT 77
Notes
Notes to and forming part of the
nts
Financial Stateme
2010
Note 1: Summary of Significant
Accounting Policies
for the year ended 30 June
1.1 Objectives of Tourism Australia
Tourism Australia is an Australian Government statutory
authority. The objective is to promote tourism to and within
Australia. Its revenues are sourced primarily via government
funding and industry revenues. Tourism Australia’s
activities to promote Australia as an international tourist
destination are focused primarily overseas with the
majority of expenditure incurred via Tourism Australia’s
international offices in Europe, Asia, North America, Japan
and New Zealand.
Note 1: Summary of Significant Accounting Policies
79
Note 2: Events After the Reporting Period
84
Note 3: Expenses
85
Note 4: Income
86
Note 5: Financial Assets
87
Note 6: Non-Financial Assets
89
Outcome 1: Tourism Australia seeks to stimulate
sustainable international and domestic demand for an
Australian tourism experience, and to maximise the return
on investment of the tourism and travel industry’s total
marketing effort, as measured by total visitor spend and
dispersal of that spend.
Note 7: Payables
93
Tourism Australia’s statutory objectives are to:
Note 8: Provisions
94
Note 9: Cash Flow Reconciliation
95
• Influence people to travel to Australia, including
for events
Note 10: Contingent Liabilities and Assets
95
Note 11: Directors Remuneration
95
Note 12: Related Party Disclosures
96
• Influence Australians to travel throughout Australia,
including for events
Note 13: Executive Remuneration
96
• Help foster a sustainable tourism industry in Australia
Note 14: Remuneration of Auditors
97
Note 15: Financial Instruments
98
• Help increase the economic benefits to Australia
from tourism.
Note 16: Restructuring
101
Note 17: Reporting of Outcomes
102
Tourism Australia is structured to meet one outcome:
• Influence people travelling to Australia to also travel
throughout Australia
Three Output Groups were identified for this outcome:
Output Group 1: Industry and market development
through strategic insights
Output Group 2: Increased distribution of Australian
tourism product and facilitation of niche events and
regional tourism growth
1.2 Basis of Preparation of the
Financial Statements
The financial statements and notes are required by
clause 1(b) of Schedule 1 to the Commonwealth
Authorities and Companies Act 1997 (CAC Act) and are
general purpose financial statements.
The financial statements and notes have been prepared in
accordance with:
• Finance Minister’s Orders (FMOs) for reporting periods
ending on or after 1 July 2009; and
• Australian Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board
(AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual
basis and in accordance with historical cost convention,
except for certain assets and liabilities at fair value. Except
where stated, no allowance is made for the effect of
changing prices on the results or the financial position.
The financial statements are presented in Australian dollars
and values are rounded to the nearest thousand dollars
unless otherwise specified.
Unless an alternative treatment is specifically required by
an accounting standard or FMO, assets and liabilities are
recognised in the balance sheet when and only when it is
probable that future economic benefits will flow to Tourism
Australia or a future sacrifice of economic benefit will be
required and the amounts of the assets or liabilities can be
reliably measured. However, assets and liabilities arising
under Agreements Equally Proportionately Unperformed
are not recognised unless required by an accounting
standard. Liabilities and assets that are unrecognised are
reported in the Schedule of Commitments or the Schedule
of Contingencies (other than unquantifiable contingencies,
which are reported at Note 10).
Unless alternative treatment is specifically required by an
accounting standard, income and expenses are recognised
in the Statement of Comprehensive Income when and only
when the flow, consumption or loss of economic benefits
has occurred and can be reliably measured.
Output Group 3: Consumer travel demand stimulation.
The continued existence of Tourism Australia in
its present form and with its present programs is
dependent on Government policy and on continuing
funding by Parliament for Tourism Australia’s
administration and programs.
78 Notes to the Financial Statements
1.3 Significant Accounting Judgements
and Estimates
No accounting assumptions or estimates have been
identified that have a significant risk of causing a material
adjustment to carrying amounts of assets and liabilities
within the next accounting period.
2009–2010 ANNUAL REPORT 79
Notes
Notes
1.4 New Australian Accounting Standards
Resources received free of charge
Adoption of new Australian Accounting
Standard requirements
Resources received free of charge are recognised as gains
when and only when a fair value can be reliably determined
and the services would have been purchased if they had
not been donated. Use of those resources is recognised as
an expense.
No accounting standard has been adopted earlier than
the application date as stated in the standard. No new
accounting standards, amendments to standards and
interpretations issued by the Australian Accounting
Standards Board that are applicable to the current period,
have had a material financial impact on Tourism Australia.
Resources received free of charge are recorded as either
revenue or gains depending on their nature.
No new standards, revised standards, interpretations or
amended standards that were issued by the Australian
Accounting Standards Board and are applicable to the
future reporting period, are expected to have a future
material financial impact on Tourism Australia.
1.5 Revenue
Revenue from the sale of goods is recognised when:
• The risks and rewards of ownership have been
transferred to the buyer
• The seller retains no managerial involvement or
effective control over the goods
• The revenue and transaction costs incurred can be
reliably measured
• It is probable that the economic benefits associated
with the transaction will flow to Tourism Australia.
Revenue from rendering of services is recognised by
reference to the stage of completion of contracts at the
reporting date.
The revenue is recognised when:
• The amount of revenue, stage of completion and
transaction costs incurred can be reliably measured
• The probable economic benefits with the transaction
will flow to Tourism Australia.
The stage of completion of contracts at the reporting
date is determined by reference to the proportion that
costs incurred to date bear to the estimated total costs of
the transaction.
Receivables for goods and services, which have 30-day
terms, are recognised at the nominal amounts due less
any impairment allowance account. Collectability of debts
is reviewed at balance date. Allowances are made when
collectability of the debt is no longer probable.
Interest revenue is recognised when earned.
80 Notes to the Financial Statements
Other long-term employee benefits are measured as net
total of the present value of the defined benefit obligation
at the end of the reporting period minus the fair value at
the end of the reporting period of plan assets (if any) out of
which the obligations are to be settled directly.
Leave
Revenues from Government
Future Australian Accounting Standard requirements
The nominal amount is calculated with regard to the rates
expected to be paid on settlement of the liability.
Funding received or receivable from agencies (appropriated
to the agency as a CAC Act body payment item for payment
to Tourism Australia) is recognised as revenue from
Government unless they are in the nature of an equity
injection or a loan.
1.6 Gains
Resources received free of charge
Resources received free of charge are recognised as
gains when, and only when, a fair value can be reliably
determined and the services would have been purchased
if they had not been donated. Use of those resources is
recognised as an expense.
Resources received free of charge are recorded as either
revenue or gains depending on their nature.
Contributions of assets at no cost of acquisition
or for nominal consideration are recognised as
gains at their fair value when the asset qualifies
for recognition, unless received from another
Government agency or authority as a consequence
of a restructuring of administrative arrangements.
The liability for employee benefits includes provision for
annual leave, long service leave, time off in lieu, bonus
leave, and purchased leave. No provision has been made
for sick leave as all sick leave is non-vesting and the
average sick leave taken in future years by employees of
Tourism Australia is estimated to be less than the annual
entitlement for sick leave.
The leave liabilities are calculated on the basis of
employees’ remuneration, at the estimated salary rates that
will apply at the time the leave is taken, including Tourism
Australia’s employer superannuation contribution rates to
the extent that the leave is likely to be taken during service
rather than paid out on termination.
The liability for long service leave has been determined
by reference to the present value of the estimated future
cash flows to be made in respect of all employees as at 30
June 2010. The estimate of the present value of the liability
takes into account attrition rates and pay increases through
promotion and inflation.
Separation and redundancy
Tourism Australia did not incur any separation or
redundancy costs during the financial year.
Sale of assets
Superannuation
Gains from disposal of non-current assets are recognised
when control of the asset has passed to the buyer.
Australia: Staff of Tourism Australia are members of the
Commonwealth Superannuation Scheme (CSS), the Public
Sector Superannuation Scheme (PSS), the PSS accumulation
plan (PSSap) or a plan of their own choice.
1.7 Transactions with the Government as Owner
During 2009–10, Tourism Research Australia was transferred
to the Department of Resources, Energy and Tourism
portfolio. Refer to Note 16 for full disclosure of the transfer.
1.8 Employee Benefits
Liabilities for short-term employee benefits (as defined
in AASB 119 Employee Benefits) and termination benefits
due within 12 months of the end of the financial year are
measured at their nominal amounts.
The CSS and PSS are defined benefit schemes for
the Australian Government. PSSap is a defined
contribution scheme.
The liability for defined benefits is recognised in the
financial statements of the Australian Government and is
settled by the Australian Government in due course.
Tourism Australia makes employer contributions to the
defined benefits schemes at rates determined by an
actuary to be sufficient to meet the current cost to the
Government of the superannuation entitlements of
Tourism Australia’s employees.
The liability for superannuation recognised as at 30 June
2010 represents outstanding contributions for the final
fortnight of the year.
The contribution rate for Tourism Australia as a Group 2
Authority was 18.4% – CSS, 15.1% – PSS, 15.4% – PSSap, and
other choice of fund between 9% to 15.4% of salaries in
2009–10. In addition, Tourism Australia remitted Employer
Productivity Superannuation Contributions to ComSuper
for all employees. The contribution rate was variable and
banded according to earnings between 2% and 3% of
salaries in 2009–10.
Asia: In Hong Kong, in accordance with local regulations
Tourism Australia provided superannuation for its locally
engaged staff with HSBC Life (International) Ltd. The
contribution rate was 11.5% of gross salaries in 2009–10 for staff that joined before 1 December 2000 (11.5%
in 2008–09). Tourism Australia matched employees’
contributions up to a maximum of 5% of gross salary in
2009–10. (The contribution rate was 5% of gross salary in
2008–09 for those staff who joined after 1 December 2000
under the new mandatory provident fund regulations).
In India, Tourism Australia provided superannuation for its
locally engaged staff with Provident Fund. The contribution
was 12% and the associated administration fees varied
between 1.3% and 1.37% (1.2% in 2008–09).
In Malaysia, Tourism Australia provided superannuation for
its locally engaged staff with Provident Fund at a rate of
12%. The contribution rate for employees aged between
55 and 75 years is fixed at 6%.
In Singapore, Tourism Australia provided superannuation
(up to a ceiling of SGD$4,500) for its locally engaged staff
with the Central Provident Fund where the contribution
rate was 14.5% of salaries for employees aged below 50
years and 10.5% for employees aged between 50–55 years.
In Korea, Tourism Australia provided superannuation for its
locally engaged staff with funds run by National Pension.
The contribution rate was 4.5% of salaries in 2009–10
(4.5% in 2008–09).
In Taiwan, Tourism Australia provided superannuation
for its locally engaged staff in accordance with local
regulations. The contribution rate in 2009–10 was 2% of
salaries to Labour Standards Law Fund and 6% of salaries to
the employee’s individual pension fund account governed
by the Labour Pension Act (unchanged from 2008–09).
In China, Tourism Australia provided superannuation for
its locally engaged staff with the local official agency
FESCO. The monthly contribution for resident staff is
between 44%–62% of indexed salary (set annually by the
local government) per staff member in 2009–10 and the
contribution ranged from around CNY2,100 to CNY6,600
2009–2010 ANNUAL REPORT 81
Notes
(unchanged from 2008–09). For non-resident staff, Tourism
Australia contributed approximately 20% towards social
insurance in 2009–10 (approximately 20% in 2008–09).
In Japan, Tourism Australia provided superannuation for its
locally engaged staff with Japan’s National Pension Scheme
where the contribution rate was 7.852% of salaries with an
annual limit of JPY584,196 in 2009–10 (7.675% in 2008–09).
USA: Tourism Australia provided an optional employee
retirement benefit for its locally engaged staff in Los
Angeles with Mutual of America. Tourism Australia
matched employees’ contributions up to a maximum
of 3% of gross salary in 2009–10 and an annual limit of
US$11,500 for employees less than 50 years of age. For
employees who are 50 years of age or older, the limit
is US$14,000 for 2010. These limits apply to employee
contributions only on a calendar-year basis.
Canada: Tourism Australia provided an optional employee
retirement benefit for its locally engaged staff in Canada.
Tourism Australia matched employees’ contributions up
to a maximum of 3% of gross salary in 2009–10 (3% in
2008–09). Funds are deposited to designated member
funds chosen by the employees.
Europe: For the United Kingdom, in accordance with locally
engaged terms and conditions of employment, Tourism
Australia provided a group personal pension scheme for
its locally engaged staff in London with Standard Life
Assurance Co. Contributions to the scheme were fixed at
10% in 2009–10 (10 % in 2008–09).
In Germany, Tourism Australia contributed an inclusive
social amount to the statutory insurance government fund
for its locally engaged staff. Tourism Australia matched
staff contributions on a 1:1 basis. The contribution rate is
not separately nominated.
New Zealand: Tourism Australia provides the opportunity for
all staff to join the New Zealand Government superannuation
scheme – Kiwisaver. The scheme is not mandatory for
locally engaged staff; however, Tourism Australia currently
contributes 4% toward the scheme – whereby staff can
contribute between the equivalent amount of 2%, 4% or 8%
depending on the employee’s preference.
1.9 Leases
A distinction is made between finance leases and operating
leases. Finance leases effectively transfer from the lessor to
the lessee substantially all the risks and rewards incidental
to ownership of leased assets. An operating lease is a lease
that is not a finance lease. In operating leases, the lessor
effectively retains substantially all such risks and benefits.
Tourism Australia has not entered into any finance leases.
82 Notes to the Financial Statements
Notes
Operating lease payments are expensed on a straight-line
basis, which is representative of the pattern of benefits
derived from the leased assets.
1.10 Borrowing Costs
All borrowing costs from the unwinding of make good
provisions are expensed as incurred.
1.11 Cash
Cash and cash equivalents includes cash on hand and
demand deposits in bank accounts with an original maturity
of three months or less that are readily convertible to known
amounts of cash and are subject to insignificant risk of
changes in value. Cash is recognised at its nominal amount.
1.12 Financial Assets
Tourism Australia classifies its financial assets as ‘loans and
receivables’ and ‘held-to-maturity investments’.
The classification depends on the nature and purpose of
the financial assets and is determined at the time of initial
recognition.
Financial assets are recognised and derecognised upon
‘trade date’.
Held-to-maturity investments
Non-derivative financial assets with fixed or determinable
payments and fixed maturity dates that Tourism Australia
has the positive intent and ability to hold to maturity are
classified as held-to-maturity investments.
The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments through the expected life of the
financial liability, or, where appropriate, a shorter period.
Supplier and other payables
Supplier and other payables are recognised at cost.
Liabilities are recognised to the extent that the goods or
services have been received (and irrespective of having
been invoiced).
1.14 Contingent Liabilities and
Contingent Assets
Contingent liabilities and contingent assets are not
recognised in the Balance Sheet but are reported in
the relevant schedules and notes. They may arise from
uncertainty as to the existence of a liability or asset, or
represent an existing liability or asset in respect of which
settlement is not probable or the amount cannot be
reliably measured. Contingent assets are reported when
settlement is probable but not virtually certain, and
contingent liabilities are recognised when the possibility
of settlement is greater than remote.
1.15 Financial Guarantee Contracts
Tourism Australia had no financial guarantee contracts
during the financial year.
1.16 Acquisition of Assets
Loans and receivables
Trade receivables, loans and other receivables that have
fixed or determinable payments that are not quoted in an
active market are classified as ‘loans and receivables’.
1.13 Financial Liabilities
Financial liabilities are classified as either financial
liabilities at fair value through profit or loss or other
financial liabilities. Financial liabilities are recognised and
derecognised upon ‘trade date’.
Other financial liabilities
Other financial liabilities are initially measured at fair
value, net of transaction costs. Other financial liabilities
are subsequently measured at amortised cost using the
effective interest method, with interest expense recognised
on an effective yield basis.
Assets are recorded at cost on acquisition except as stated
below. The cost of acquisition includes the fair value of
assets transferred in exchange and liabilities undertaken.
Financial assets are initially measured at their fair value
plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are
initially recognised as assets and income at their fair value
at the date of acquisition, unless acquired as a consequence
of restructuring of administrative arrangements. In the
latter case, assets are initially recognised as contributions
by owners at the amounts at which they were recognised
in the transferor Authority’s accounts immediately prior to
the restructuring.
1.17 Property, Plant and Equipment
Asset recognition threshold
Purchases of property, plant and equipment are recognised
initially at cost in the Balance Sheet, except for purchases
costing less than $5,000, which are expensed in the year of
acquisition (other than where they form part of a group of
similar items which are significant in total).
The initial cost of an asset includes an estimate of the
cost of dismantling and removing the item and restoring
the site on which it is located. This is particularly relevant
to ‘make good’ provisions in property leases taken up by
Tourism Australia where there exists an obligation to
restore to original condition. These costs are included in the
value of Tourism Australia’s leasehold improvements with a
corresponding provision for the ‘make good’ recognised.
Revaluations
Plant and equipment are carried at fair value, being
revalued with sufficient frequency such that the carrying
amount of each asset is not materially different, at
reporting date, from its fair value. Valuations undertaken in
each year are as at 30 June.
Fair values for each class of asset are determined as
shown below:
Asset class
Leasehold improvements
Plant and equipment
Fair value measured at
Depreciated replacement cost
Depreciated replacement cost
Following initial recognition at cost, property plant and
equipment are carried at fair value less subsequent
accumulated depreciation and accumulated impairment
losses. Valuations are conducted with sufficient frequency
to ensure that the carrying amounts of assets do not differ
materially from the assets’ fair values as at the reporting
date. The regularity of independent valuations depends
upon the volatility of movements in market values for the
relevant assets.
Revaluation adjustments are made on a class basis. Any
revaluation increment is credited to equity under the
heading of asset revaluation reserve except to the extent
that it reverses a previous revaluation decrement of the
same asset class that was previously recognised in the
surplus/deficit. Revaluation decrements for a class of assets
are recognised directly in the surplus/deficit except to the
extent that they reverse a previous revaluation increment
for that class.
Any accumulated depreciation as at the revaluation date is
eliminated against the gross carrying amount of the asset
and the asset restated to the revalued amount.
2009–2010 ANNUAL REPORT 83
Notes
Notes
Depreciation
1.19 Taxation
Depreciable property, plant and equipment assets are
written off to their estimated residual values over their
estimated useful lives to Tourism Australia using, in all
cases, the straight-line method of depreciation. Leasehold
improvements are depreciated on a straight-line basis over
the lesser of the estimated useful life of the improvements
or the unexpired period of the lease.
Tourism Australia is exempt from all forms of taxation in
Australia except fringe benefits tax (FBT) and the goods and
services tax (GST).
Depreciation rates (useful lives), residual values and
methods are reviewed at each reporting date and necessary
adjustments are recognised in the current, or current and
future reporting periods, as appropriate.
Revenues, expenses and assets are recognised net of
GST except:
• Where the amount of GST incurred is not recoverable
from the Australian Taxation Office
• For receivables and payables.
Tourism Australia is exempt from all foreign taxation laws
except for any consumption taxes.
Depreciation rates applying to each class of depreciable
asset are based on the following useful lives:
Leasehold improvements
Plant and equipment
2010
2009
Lease term
Lease term
3 to 10 years
3 to 10 years
Impairment
All assets are assessed for impairment at 30 June.
Where indications of impairment exist, the asset’s
recoverable amount is estimated and an impairment
adjustment made if the asset’s recoverable amount is
less than its carrying amount.
The recoverable amount of an asset is the higher of its fair
value less costs to sell and its value in use. Value in use is
the present value of the future cash flows expected to be
derived from the asset. Where the future economic benefit
of an asset is not primarily dependent on the asset’s ability
to generate future cash flows, and the asset would be
replaced if Tourism Australia were deprived of the asset,
its value in use is taken to be its depreciated replacement
cost. No indicators of impairment were found for assets at
fair value.
1.18 Intangibles
Tourism Australia’s intangibles comprise internally
developed software for internal use, campaign production
and trade mark. These assets are carried at cost.
Software is amortised on a straight-line basis over
its anticipated useful life. The useful lives of Tourism
Australia’s software are two to five years (2008–09: two to
five years). All software assets are assessed for indications
of impairment as at 30 June.
Note 2: Events After the
Reporting Period
There were no significant events after the reporting period
that had an impact on the financial statements.
Note 3: Expenses
Note 3A: Employee benefit
Wages and salaries
Superannuation:
Defined benefits plans
Defined contribution plans
Leave and other entitlements
Separation and redundancies
Other employee benefits expense
Total employee benefits
2010
$’000
2009
$’000
21,295
24,415
605
1,785
1,523
–
740
971
2,140
2,561
808
932
25,948
31,827
57,402
22,634
6,889
6,120
10,836
67,814
26,600
6,030
7,129
18,331
103,881
125,904
5,860
14
6,882
23
Note 3B: Suppliers
Goods and services from external parties
Advertising
Promotion and publicity
Films, publications and distribution
Information systems and telecommunications
Research, service fees and travel
Total goods and services
Other supplier expenses
Operating lease rentals:
Minimum lease payments
Workers compensation premiums
Total other supplier expenses
5,874
6,905
109,755
132,809
Note 3C: Depreciation and amortisation
Depreciation:
Infrastructure, plant and equipment
515
779
Total depreciation
515
779
Amortisation:
Intangibles:
Computer software
Campaign production
Trade mark
Make good
1,632
619
11
157
1,926
243
11
218
Total amortisation
2,419
2,398
Total depreciation and amortisation
2,934
3,177
Total supplier expenses
Campaign production is amortised on a straight-line basis
over three years. The campaign production was assessed
for indications of impairment as at 30 June.
Note 3D: Finance costs
Unwinding of discount for make good
35
37
The useful life of trade marks is estimated at 10 years.
Total finance costs
35
37
84 Notes to the Financial Statements
2009–2010 ANNUAL REPORT 85
Notes
Notes
2010
$’000
2009
$’000
Note 3E: Write-down and impairment of assets
Impairment of property, plant and equipment
Impairment of other non-financial assets held for sale
–
–
354
71
Total write-down and impairment of assets
–
425
Note 3: Expenses
(continued)
2009
$’000
Note 4E: Rental income
Operating lease:
Office sub-tenancies
809
943
Total rental income
809
943
Other revenue
1,163
1,243
Total other revenue
1,163
1,243
Note 4F: Other revenue
Note 3F: Losses from asset sales
Infrastructure, plant and equipment:
Carrying value of assets sold
4
2
Total losses from asset sales
4
2
Note 3G: Other expenses
Other operating expenses
4,238
5,256
Total other expenses
4,238
5,256
Note 4: Income
2010
$’000
Note 4: Income (continued)
2010
$’000
2009
$’000
Gains
Note 4G: Foreign exchange
Non-speculative
548
1,907
Total foreign exchange gains
548
1,907
Note 4H: Other gains
Reversal of restoration provision
Reversal of impairment losses
256
114
70
–
Total other gains
370
70
Revenue
Note 4A: Sale of goods and rendering of services
Provision of goods – external parties
13
127
Rendering of services – external parties
72
154
Total sale of goods and rendering of services
85
281
141,622
137,559
Total revenue from Government
141,622
137,559
2010
$’000
2009
$’000
Note 5A: Cash and cash equivalents
Australian Dollars
Canadian Dollars
Chinese Yuan
Euro
Great Britain Pounds
Hong Kong Dollars
Japanese Yen
Korean Won
Malaysia Ringgit
New Zealand Dollars
Singapore Dollars
Thailand Baht
Indian Rupee
United States Dollars
Taiwan Dollars
Cash at bank or on deposit
Cash on hand
18,527
203
343
44
297
132
51
30
11
95
283
64
48
200
49
20,377
6
9,165
100
222
130
411
179
660
183
136
105
151
86
51
612
124
12,315
6
Total cash and cash equivalents
20,383
12,321
Note 5: Financial Assets
Note 4B: Advertising
Advertising revenue
3,101
5,365
Total advertising revenue
3,101
5,365
Note 4C: Interest
Deposits
2,058
2,531
Total interest
2,058
2,531
Note 4D: Contributions revenue
Industry contributions*
10,339
13,218
Total contributions revenue
10,339
13,218
* Industry contributions reflect the actual value of industry support for Tourism Australia's activities from direct revenue. In addition to
direct revenues from the industry, joint marketing programs were undertaken. Through these programs the industry supplements funds
provided by Tourism Australia for product development, visiting journalists and tactical marketing programs. Due to the nature of the
programs, these funds do not form part of the reported level of industry contributions for Tourism Australia, but are in addition to it.
86 Notes to the Financial Statements
Note 4I: Revenue from Government
Department of Resources, Energy and Tourism:
CAC Act body payment
2009–2010 ANNUAL REPORT 87
Notes
Notes
2010
$’000
2009
$’000
10,547
(9,243)
3,892
(2,724)
Total leasehold improvements
1,304
1,168
Leasehold improvements make good:
Fair value
Accumulated depreciation
640
(382)
567
(269)
258
298
1,562
1,466
2010
$’000
2009
$’000
Note 6: Non-Financial Assets
2,192
1,019
905
3,787
1,235
523
Note 6A: Land and buildings
Leasehold improvements:
Fair value
Accumulated depreciation
25
104
12
5
129
17
4,245
5,562
(42)
(50)
4,203
5,512
3,974
3,634
210
42
6
13
1,509
249
106
64
4,245
5,562
The impairment allowance account is aged as follows
Overdue by:
30 to 60 days
61 to 90 days
More than 90 days
–
(42)
–
–
(50)
–
Total impairment allowance account
(42)
(50)
Note 5: Financial Assets
(continued)
Note 5B: Trade and other receivables
Goods and services
GST receivable from the Australian Taxation Office
Deposit and advances
Other:
Interest
Other receivables
Total other receivables
Total trade and other receivables (gross)
Less impairment allowance account:
Goods and services
Total trade and other receivables (net)
Receivables are aged as follows
Not overdue
Overdue by:
Less than 30 days
30 to 60 days
61 to 90 days
More than 90 days
Total receivables (gross)
Total leasehold improvements make good
Total land and buildings
Reconciliation of the impairment allowance account
Goods and services:
Opening balance
Amounts reversed
(50)
8
(66)
16
Closing balance
(42)
(50)
Receivables are expected to be recovered in:
No more than 12 months
4,203
5,512
Total trade and other receivables (net)
4,203
5,512
Note 5C: Investments
Shares in other company – unlisted (at cost)
Less: Provision for diminution in value
400
(400)
400
(400)
Total investments
–
–
Investments are expected to be recovered in:
More than 12 months
–
–
Total investments
–
–
Leasehold improvements were subject to revaluation. The carrying amount is included in the valuation figures above.
All revaluations were conducted in accordance with the revaluation policy stated at Note 1. On 30 June 2010, an independent valuer,
Australian Valuation Office, conducted the revaluations.
Revaluation increments of $380,000 for leasehold improvements (2009: $Nil), was credited to the asset revaluation reserve by asset
class and included in the equity section of the balance sheet.
No indicators of impairment were found for property, plant and equipment.
No property, plant or equipment is expected to be sold or disposed of within the next 12 months.
Note 6B: Infrastructure, plant and equipment
Computer and office equipment:
Fair value
Accumulated depreciation
1,235
(868)
1,933
(1,817)
367
116
746
(390)
1,215
(830)
Total furniture and fittings
356
385
Total infrastructure, plant and equipment
723
501
Total computer and office equipment
Furniture and fittings:
Fair value
Accumulated depreciation
No indicators of impairment were found for infrastructure, plant and equipment.
Tourism Australia holds 11.9 per cent interest in Australian Tourism Data Warehouse Pty Limited (ATDW), which is carried at cost less
provision for diminution in value. ATDW’s principal activity is the development of a database for Australian Tourism Products.
88 Notes to the Financial Statements
2009–2010 ANNUAL REPORT 89
Notes
Note 6: Non-Financial Assets
Notes
(continued)
Note 6C: Intangibles
Software at cost:
In progress
In use
Accumulated amortisation
Total software
Campaign production at cost:
In progress
In use
Accumulated amortisation
Total campaign production
Trade mark:
At cost
Accumulated amortisation
2010
$’000
2009
$’000
Note 6: Non-Financial Assets (continued)
82
10,445
(7,146)
1,761
14,945
(12,438)
3,381
4,268
91
7,496
(3,530)
189
3,279
(2,910)
4,057
558
108
(66)
108
(55)
42
53
Total intangibles
7,480
4,879
No indicators of impairment were found for intangible assets.
As at 1 July 2009
Gross book value
Accumulated depreciation/amortisation and impairment
Net book value 1 July 2009
Total
$’000
4,459
(2,993)
3,148
(2,647)
7,607
(5,640)
1,466
501
1,967
223
117
421
–
644
117
Additions:
By purchase
By new leases (make good)
Revaluations and impairments recognised in other comprehensive
income
Depreciation/amortisation expense
Reclassification of assets
Effect of foreign exchange movements
Disposals
666
–
666
(542)
(18)
(298)
(52)
(130)
18
(44)
(43)
(672)
–
(342)
(95)
Net book value 30 June 2010
1,562
723
2,285
11,187
(9,625)
1,982
(1,259)
13,169
(10,884)
1,562
723
2,285
5,004
(3,218)
2,946
(2,353)
7,950
(5,571)
1,786
593
2,379
Net book value as of 30 June 2010 represented by:
Gross book value
Accumulated depreciation/amortisation and impairment
Note 6D: Other non-financial assets
Prepayments
983
1,497
Total other non-financial assets
983
1,497
Note 6F (Cont’d): Reconciliation of the opening and closing
balances of property, plant and equipment (2008–09)
As at 1 July 2008
Gross book value
Accumulated depreciation/amortisation and impairment
Total other non-financial assets are expected to be recovered in:
No more than 12 months
983
1,497
Total other non-financial assets
983
1,497
Net book value 1 July 2008
Note 6E: Other non-financial assets held for sale
OCC motorcycle
Impairment
–
–
71
(71)
Total other non-financial assets held for sale
–
–
Additions:
By purchase
By renewed leases (make good)
Revaluations and impairments recognised in other comprehensive
income:
Make good
Depreciation/amortisation expense
Reversal of make good provision
Disposals
332
68
114
–
446
68
90
(793)
(17)
–
–
(204)
–
(2)
90
(997)
(17)
(2)
Net book value 30 June 2009
1,466
501
1,967
4,459
(2,993)
3,148
(2,647)
7,607
(5,640)
1,466
501
1,967
Net book value as of 30 June 2009 represented by:
Gross book value
Accumulated depreciation/amortisation and impairment
90 Notes to the Financial Statements
Plant &
equipment
$’000
Note 6F: Reconciliation of the opening and closing
balances of property, plant and equipment (2009–10)
Total trade mark
No indicators of impairment were found for other non-financial assets.
Buildings
$’000
2009–2010 ANNUAL REPORT 91
Notes
Note 6: Non-Financial Assets
(continued)
Computer
software
internally
developed
$’000
Notes
Campaign
production
$’000
Trade mark
$’000
Total
$’000
Note 7: Payables
2010
$’000
2009
$’000
Note 6G: Reconciliation of the opening and
closing balances of intangibles (2009–10)
Note 7A: Suppliers
Trade creditors and accruals
5,141
11,482
As at 1 July 2009
Gross book value
Accumulated depreciation/amortisation and impairment
Total supplier payables
5,141
11,482
Supplier payables expected to be settled within 12 months:
External parties
5,141
11,482
Total supplier payables
5,141
11,482
252
33
542
212
479
38
1,171
–
1,039
1,688
868
171
1,688
–
1,039
1,688
Net book value 1 July 2009
Additions:
By purchase or internally developed
Disposals
Amortisation
Net book value 30 June 2010
Net book value as of 30 June 2010 represented by:
Gross book value
Accumulated depreciation/amortisation and impairment
16,706
(12,438)
3,468
(2,910)
108
(55)
20,282
(15,403)
4,268
558
53
4,879
813
(68)
(1,632)
4,118
–
(619)
–
(11)
4,931
(68)
(2,262)
3,381
4,057
42
7,480
10,527
(7,146)
7,587
(3,530)
108
(66)
18,222
(10,742)
3,381
4,057
42
7,480
Note 6G (Cont’d): Reconciliation of the opening
and closing balances of intangibles (2008–09)
As at 1 July 2008
Gross book value
Accumulated depreciation/amortisation and impairment
Net book value 1 July 2008
Additions:
By purchase or internally developed
Amortisation
Net book value 30 June 2009
Net book value as of 30 June 2009 represented by:
Gross book value
Accumulated depreciation/amortisation and impairment
92 Notes to the Financial Statements
Settlement is usually made net 30 days.
Note 7B: Other payables
Salaries and wages
Superannuation
Prepayments received/unearned income
Other short-term liabilities
Total other payables
Total other payables are expected to be settled in:
No more than 12 months
More than 12 months
Total other payables
14,178
(10,512)
2,944
(2,667)
108
(44)
17,230
(13,223)
3,666
277
64
4,007
2,528
(1,926)
524
(243)
–
(11)
3,052
(2,180)
4,268
558
53
4,879
16,706
(12,438)
3,468
(2,910)
108
(55)
20,282
(15,403)
4,268
558
53
4,879
2009–2010 ANNUAL REPORT 93
Notes
Notes
Note 8: Provisions
2010
$’000
2009
$’000
Note 9: Cash Flow Reconciliation
Note 8A: Employee provisions
Leave
3,390
4,421
Total employee provisions
3,390
4,421
Employee provisions are expected to be settled in:
No more than 12 months
More than 12 months
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
Cash and cash equivalents as per:
Cash Flow Statement
Balance Sheet
2,290
1,100
2,318
2,103
Total employee provisions
3,390
4,421
Note 8B: Other provisions
Provision for restoration obligations
Provision for asset write-off – Tourism Research Australia
605
–
633
354
Total other provisions
605
987
Other provisions are expected to be settled in:
No more than 12 months
More than 12 months
97
508
354
633
Total other provisions
605
987
633
179
(210)
21
(53)
35
616
67
–
(17)
(70)
37
605
633
Provision for restoration
Carrying amount 1 July:
Additional provisions made
Amounts used for restoration
Amounts adjusted for revaluation
Amounts reversed for expired leases
Unwinding of discount or change in discount rate
Closing balance 30 June
Tourism Australia currently has 14 agreements for the leasing of premises which have provisions requiring Tourism Australia to
restore the premises to their original condition at the conclusion of the lease. Tourism Australia has made a provision to reflect the
present value of this obligation.
2010
$’000
2009
$’000
20,383
20,383
12,321
12,321
–
–
(124,441)
141,622
(147,975)
137,559
2,934
4
(256)
–
35
(548)
3,177
2
–
425
37
(1,907)
Changes in assets/liabilities
(Increase)/decrease in other cash used
(Increase)/decrease in trade and other receivables
(Increase)/decrease in prepayments
Increase/(decrease) in employee provisions
Increase/(decrease) in other provisions
Increase/(decrease) in supplier payables
Increase/(decrease) in other payables
–
1,309
514
(1,031)
(63)
(6,341)
(649)
(6,188)
(120)
20
1,068
(70)
(1,535)
747
Net cash from/(used by) operating activities
13,089
(14,760)
Difference
Reconciliation of net cost of services to net cash from operating activities
Net cost of services
Add revenue from Government
Adjustments for non-cash items
Depreciation/amortisation
Net write-down of non-financial assets
Reversal of restoration provision
Impairment of other non-financial assets held for sale
Unwinding of discount for make good provision
Net foreign exchange (gain)/losses
Note 10: Contingent Liabilities and Assets
Tourism Australia has no contingent liabilities or assets, quantifiable or unquantifiable.
Note 11: Director’s Remuneration
The number of Tourism Australia directors included in these figures are shown below
in the relevant remuneration bands:
less than $145,000
$175,000 to $189,999
$385,000 to $399,999
Total number of directors
Total remuneration received or due and receivable by directors of Tourism Australia
94 Notes to the Financial Statements
2010
2009
8
1
–
8
–
1
9
9
$695,328
$819,660
2009–2010 ANNUAL REPORT 95
Notes
Note 12: Related Party Disclosures
Notes
Note 13: Executive Remuneration (continued)
No director has entered into any transaction with Tourism Australia during the year ended 30 June 2010 (2009: NIL).
Note 13: Executive Remuneration
2010
2009
Note 13A: Actual remuneration paid to senior executives
Executive remuneration
The number of senior executives of Tourism Australia who received:
less than $145,000*
$160,000 to $174,999
$175,000 to $189,999
$190,000 to $204,999
$205,000 to $219,999
$220,000 to $234,999
$235,000 to $249,999
$250,000 to $264,999
$265,000 to $279,999
$280,000 to $294,999
$295,000 to $309,999
$310,000 to $324,999
$325,000 to $339,999
$340,000 to $354,999
$355,000 to $369,999
$370,000 to $384,999
$385,000 to $399,999
Total
–
1
–
2
4
1
1
–
2
1
–
1
–
–
–
2
1
–
–
3
2
3
1
3
1
–
–
1
–
1
–
–
1
1
16
17
*Excluding acting arrangements and part-year service.
Total expense recognised in relation to senior executive employment
Short-term employee benefits:
Salary (including annual leave taken)
Changes in annual leave provisions
Other allowances
3,461,638
69,114
68,916
3,430,425
89,967
–
Total short-term employee benefits
3,599,668
3,520,392
503,476
94,434
538,652
101,090
4,197,578
4,160,134
Superannuation (post-employment benefits)
Other long-term benefits
Total
As at 30 June 2010
Note 13B: Salary packages
for senior executives
Average annualised
remuneration packages for
substantive senior executives
Total remuneration*:
less than $145,000
$160,000 to $174,999
$175,000 to $189,999
$190,000 to $204,999
$205,000 to $219,999
$220,000 to $234,999
$235,000 to $249,999
$250,000 to $264,999
$265,000 to $279,999
$280,000 to $294,999
$295,000 to $309,999
$310,000 to $324,999
$325,000 to $339,999
$340,000 to $354,999
$355,000 to $369,999
$370,000 to $384,999
$385,000 to $399,999
Total
As at 30 June 2009
Total
Base salary
(including remuneration
No. senior
package1
executive annual leave)
–
1
–
2
5
1
1
–
2
1
–
1
–
–
–
2
1
–
149,719
–
165,468
170,103
196,088
206,126
–
239,957
257,344
–
270,309
–
–
–
318,099
347,086
–
174,285
–
195,919
214,038
230,462
242,414
–
272,633
292,790
–
319,745
–
–
–
376,297
389,488
17
No. senior
executive
–
1
3
1
3
1
2
2
1
–
1
–
1
–
–
1
1
Total
Base salary
(including remuneration
package1
annual leave)
–
147,073
141,278
167,876
182,907
190,762
203,887
217,658
240,022
–
255,604
–
280,722
–
–
327,846
326,897
–
170,148
177,476
196,211
215,996
225,376
238,748
252,355
274,165
–
298,528
–
329,336
–
–
371,143
387,738
18
*Excluding acting arrangements and part-year service.
Notes : 1. Non-salary elements available to senior executives include superannuation.
Note 14: Remuneration of Auditors
Fair value of the services provided for auditing the financial statements
for the reporting period
2010
$’000
2009
$’000
124
116
124
116
No other services were provided by the auditors of the financial statements.
During the year the entity paid $Nil in termination benefits to senior executives (2009: $355,203)
96 Notes to the Financial Statements
2009–2010 ANNUAL REPORT 97
Notes
Notes
2010
$’000
Note 15: Financial Instruments
2009
$’000
Note 15: Financial Instruments (continued)
Note 15E: Credit risk exposures
Note 15A: Categories of financial instruments
Financial assets
Held-to-maturity:
Cash at bank
Loans and receivables:
Trade and other receivables
20,383
12,321
20,383
12,321
3,184
4,277
3,184
4,277
23,567
16,598
Tourism Australia has established policies and procedures in regard to collection of debts. Carrying amount of financial assets
Tourism Australia holds no collateral to mitigate against credit risk.
Not past due nor impaired
Credit risk of financial instruments not
past due or individually determined as impaired
Financial liabilities
Other financial liabilities:
Trade and other payables
6,180
13,170
Carrying amount of financial liabilities
6,180
13,170
2009
$’000
2010
$’000
2009
$’000
Cash at bank
Receivables for goods and services
20,383
2,955
12,321
2,399
–
271
–
1,928
Total
23,338
14,720
271
1,928
2,058
2,531
Net gain from held-to-maturity
2,058
2,531
Ageing of financial assets that are past due but not impaired
Net gain from financial assets
2,058
2,531
Note 15C: Net income and expense from financial liabilities
Financial liabilities – at amortised cost:
Exchange gains (refer to Note 4G)
548
1,907
Net gain financial liabilities – at amortised cost
548
1,907
Net gain from financial liabilities
548
1,907
Receivables for goods and services
Notes
Carrying
amount
Fair value
Carrying
amount
Fair value
Note 15D: Fair values of financial assets and liabilities
5A
5A
5B
Total financial assets
Financial liabilities (recognised):
Trade creditors
Other payables
Total financial liabilities (recognised)
98 Notes to the Financial Statements
Past due or impaired
2010
$’000
Note 15B: Net income and expense from financial assets
Held-to-maturity:
Interest revenue (refer to Note 4C)
Departmental
Financial assets:
Cash at bank
Deposits at call
Receivables for goods and services
Tourism Australia is exposed to minimal credit risk as the majority of loans and receivables are cash and receivables for
goods and services. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This
amount is equal to the total amount of trade receivables (2010: $4,245,000 and 2009: $5,562,000). Tourism Australia
has assessed the risk of the default on payment and has allocated $42,000 in 2010 (2009: $50,000) to an impairment
allowance account.
7A
7B
4,685
15,698
3,184
4,685
15,698
3,184
11,072
1,249
4,277
11,072
1,249
4,277
23,567
23,567
16,598
16,598
5,141
1,039
5,141
1,039
11,482
1,688
11,482
1,688
6,180
6,180
13,170
13,170
2010
$’000
2009
$’000
0 to 30 days
31 to 60 days
61 to 90 days
90+ days
210
42
6
13
1,509
249
106
64
Total
271
1,928
Note 15F: Liquidity risk
Tourism Australia’s financial liabilities are supplier payables. The exposure to liquidity risk is based on the notion that
Tourism Australia will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly
unlikely due to Government funding and internal policies and procedures put in place to ensure there are appropriate
resources to meet its financial obligations.
Trade creditors
Maturities for financial liabilities
2010
$’000
2009
$’000
On demand
Within 1 year
1 to 5 years
> 5 years
5,141
-
11,482
-
Total
5,141
11,482
Tourism Australia receives funding from the Australian Government. Tourism Australia manages its budgeted funds to
ensure it has adequate funds to meet payments as they fall due. In addition, Tourism Australia has policies in place to
ensure timely payments are made when due and has no past experience of default.
2009–2010 ANNUAL REPORT 99
Notes
Notes
Note 15G: Market risk
Note 16: Restructuring
Tourism Australia holds basic financial instruments that do not expose Tourism Australia to major market risks. Tourism
Australia accounts for its financial instruments (cash and cash equivalents) in accordance with AASB 139 Financial
Instruments: Recognition and Measurement and reports these instruments under AASB 7 Financial Instruments: Disclosures.
Foreign exchange
Tourism Australia maintains foreign bank accounts that facilitate local transactions and at balance date reported an
AUD$ equivalent cash balance of $1.8 million (2009: $3.8 million). Assets and liabilities denominated in foreign currency
are converted to Australian dollar equivalents at the exchange rate prevailing on balance date. Realised and unrealised
gains and losses on foreign currency are taken to profit. Tourism Australia expends a significant amount of revenue from Government in foreign currencies and uses budget
parameter rates to measure its performance against budgets. In 2010 the movement of the Australian dollar against
foreign currencies (12 month average of 13–22% against budget rates) resulted in an estimated gain of $12 million
(2009: loss of $14.1 million). This movement also contributed to an increase in overall cash balance.
The principal exchange rates affecting the foreign exchange gain are the US Dollar, Hong Kong Dollar, Great British Pound,
Euro and the Japanese Yen.
Interest rate
Tourism Australia maintains operating and investment bank accounts to manage cash. The operating bank accounts are
non-interest bearing and investment accounts are designated in liquid and short-term interest-bearing deposits. All cash
holdings are held in operating accounts at balance date (2010: $20.4 million; 2009: $12.3 million).
The average interest rates during the year for the interest-bearing accounts was between 3.5%-5.5%.
As a result of a restructuring of administrative arrangements, Tourism Research Australia was re-integrated into the
Department of Resources, Energy and Tourism effective from 12 November 2009.
In respect of functions relinquished, the net book values of assets and liabilities transferred to the Department for no
consideration and recognised as at the date of transfer were:
2010
$’000
Assets returned to the Department of Resources, Energy and Tourism:
Cash
1,122
Total assets returned to the Department of Resources, Energy and Tourism:
1,122
Liabilities returned to the Department of Resources, Energy and Tourism:
Employee benefits and other provisions
(545)
Total liabilities returned to the Department of Resources, Energy and Tourism:
(545)
Net assets returned to the Department of Resources, Energy and Tourism:
577
Income and expenses for the functions relinquished by Tourism Australia were as follows:
Income received by Tourism Australia:
Appropriation received
Other income
1,553
943
Total income
2,496
Expenses incurred by Tourism Australia:
Salaries and supplier expenses
(1,919)
Total expenses
(1,919)
Surplus for the period 1 July 2009 to 11 November 2009 attributable to Tourism
Research Australia
577
Reconciliation of Appropriation Balance transferred to the Department of Resources,
Energy and Tourism:
Total 2009–10 appropriation attributable to Tourism Research Australia
Less expenses paid by Tourism Australia 1 July 2009 to 11 November 2009:
Salaries and other expenses
5,617
(1,553)
Net Appropriation Balance transferred
Reconciliation of cash refunded to the Department of Resources, Energy and Tourism:
Cash received for revenue invoiced to 31 October 2009
Transfer of employee benefits and other provisions
Less:
Payments made on behalf of Tourism Research Australia
Cost of minor assets transferred to the Department of Resources, Energy
and Tourism
Total
100 Notes to the Financial Statements
4,064
(944)
(545)
1,489
(365)
(2)
(367)
1,122
2009–2010 ANNUAL REPORT 101
102 Notes to the Financial Statements
4,742
104
72
346
69
–
66
5,399
Total operating revenues
33,530
22,396
490
13
9,993
326
–
312
22,582
33,588
19,891
776
41
12,198
366
–
316
25,093
–
–
120,248
114,484
2,507
–
–
1,663
–
1,594
115,511
–
–
2,371
21,074
92,066
–
2010
$’000
114,900
107,054
4,175
–
–
1,970
–
1,701
135,012
–
425
2,475
24,792
107,320
–
2009
$’000
918
–
–
–
–
–
918
–
39
35
–
–
–
–
4
2010
$’000
1,977
–
–
–
–
–
1,977
–
39
37
–
–
–
–
2
160,095
141,622
3,101
85
10,339
2,058
918
1,972
142,914
35
–
2,934
25,948
113,993
4
2010
$’000
Total
163,117
137,559
5,365
281
13,218
2,531
1,977
2,186
173,533
37
425
3,177
31,827
138,065
2
2009
$’000
The attribution of expenses and revenue is based on percentage of direct investment in the respective outputs. The investment reflects Tourism Australia’s objectives – which are
consistent with the Annual Operational Plan for 2009-10. Outcome 1 is described in Note 1.1.
12,652
10,614
414
240
1,020
195
–
169
13,389
4,782
Total operating expenses
Funded by:
Revenue from Government
Advertising
Sale of goods and services
Industry contribution
Interest
Gains
Other non-taxation revenues
–
–
Refer to Note 1.1 for a description of Outcome 1.
Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.
–
–
25,277
147,975
–
–
18,388
124,441
458
Total other external revenues
Net cost of outcome delivery
465
5,365
13,218
2,531
1,977
2,186
244
3,101
10,339
2,058
918
1,972
98
281
4,587
20,048
–
281
85
4,022
18,095
–
85
Total costs recovered
2,448
10,697
–
Costs recovered from provision of goods and services to the non-government sector:
Departmental
852
3,832
–
Operating expenses:
Employees
Suppliers and other expenses
Net losses from sale of assets
Depreciation and
amortisation
Finance costs
Write-down of assets
173,533
2009
$’000
173,533
142,914
2009
$’000
142,914
Total expenses
Note 17B: Major classes of
departmental revenues and
expenses by output groups
and outputs
Non-Specific
Note 17A: Net cost of outcome delivery
Expenses:
Departmental
Note 17: Reporting
of Outcomes (continued)
2010
$’000
Other external revenues:
Advertising
Industry contribution
Interest
Gains
Other revenues
2009
$’000
Output Group 3
Note 17: Reporting of Outcomes
2010
$’000
2009
$’000
Output Group 2
Outcome 1
2010
$’000
Output Group 1
Notes
Notes
2009–2010 ANNUAL REPORT 103
Glossary
104 Neville Poelina Uptuyu Aboriginal Adventures, Udiala Nyikina Kimberley, WA. Photography: James Fisher
AACB Association of Australian Convention Bureaux
AOP
Annual Operational Plan
ADS
Approved Destination Scheme
AMEX
American Express
ANAO
Australian National Audit Office
ASCOT
Australian Standing Committee on Tourism
ASP
Aussie Specialist Program
ATDW
Australian Tourism Data Warehouse
ATE
Australian Tourism Exchange
ATEC
Australian Tourism Export Council
BEA
Business Events Australia
DAMA
Destination Australia Marketing Alliance
DAP
Destination Australia Partnership
DFAT
Department of Foreign Affairs and Trade
DVS
Destination Visitor Survey
EEO
Equal Employment Opportunity
FMOs
Finance Minister’s Orders
GCC Gulf Cooperative Countries
IDC
Inter-departmental Committee
IMHP
International Media Hosting Program
ITO
Inbound Tourism Operator
IVS
International Visitor Survey
JATA
Japan Association of Travel Agents
KPI
Key Performance Indicator
MOU
Memorandum of Understanding
NVS
National Visitor Survey
PATA
Pacific Asia Travel Association
RET
Department of Resources, Energy and Tourism
SOE
Statement of Expectation
STOs
State and Territory Tourism Organisations
TA
Tourism Australia
TABEE
Team Australia Business Events Educational
TFC
Tourism Forecasting Committee
TIEV
Total Inbound Economic Value
TMC
Tourism Ministers’ Council
TRA
Tourism Research Australia
VFR
Visiting Friends and Relatives
2009–2010 ANNUAL REPORT 105
Index
A
C
F
J
P
T
A380 44, 46, 51
Canada 40, 42, 108
Facebook 3, 5, 13, 31, 41–42, 44–48, 50
Parks Australia 14, 21, 29
Taiwan 40, 60, 62
AirAsia X 44, 63
Cathay Pacific 59
Fair Work Act 2009 36
Japan
4, 12, 26, 29, 30, 39, 40, 56, 58, 108
Performance indicators 8–9, 36
Technology 33, 35
Air Canada 42
Finance and Procurement 33–34
Philippines 40
Thailand 40, 66
Air New Zealand 54
China 13, 29–30, 35, 39, 40, 58–60,
62, 63, 108
Procurement 33, 34
Annual Operational Plan 18, 35
China Airlines 62
France 26, 30, 31, 35, 39, 40, 46
There’s Nothing Like Australia
2–3, 4–5, 10–15, 24–27, 29, 31, 37, 44
Approved Destination Status 39
China Southern Airlines 39, 60
Fraud control 3, 33
Asia 30, 32, 39–40, 59–66
Climate change 21
Freedom of Information 34, IBC
Association of Australian Convention
Bureaux 5, 32
Come Walkabout campaign
41, 46–47, 51
Friends of Australia 3, 31, 59
Audit and Finance Committee
19, 33, 70
Commonwealth Authorities and
Companies Act 1997 3, 18–19, 70
G
Audit Report 68–69
Compliance report 19
Aussie Enthusiasts Program 40
Cooperative Broadcast Program 31
Aussie Specialist Program (ASP)
8, 29, 35, 39, 41, 43, 46–48, 50–51, 56,
62, 65
Corporate Communications 37
Austrade 40
Australia.com
9, 11–13, 25–27, 29, 41–56, 59–64, 66
Australian experiences
2–3, 10–14, 27–29, 31, 35, 63–66
Corporate governance 18–20
Corporate Plan 18, 35, IBC
Corroboree 28, 30, 39, 41, 44–45
D
Delta Airlines 41
Financial Statements 67–103
Garuda Indonesia 66
Germany 30, 40, 47
Global financial crisis 4, 41–42, 44–45,
47, 49–52, 54–55, 63–64, 66
Global Market Monitor 35, 39
Gulf Countries 39, 40, 66
Japan Airlines 39, 56
Jetstar 39, 56, 66
K
Korea 13, 30, 35, 39, 40, 58, 61, 108
L
Tourism Queensland 42, 43, 56, 66
Tourism Research Australia 36
Luxury Lodges of Australia 29
Regional 25–26, 28, 35, 39, 40, 44, 59
Tourism Victoria 61, 66
Research 8, 10, 18, 29, 33, 35, 46, 64, 65
Trade Events, Global 30
M
Resilience Working Group 21
Trade Marketing 28–29, 32, 51
Malaysia 29, 40, 63, 108
Risk, Legal 34
Twitter 3, 13, 31, 42
Malaysia Airlines 49, 63
Russia 30, 39, 40, 53
Department of Immigration and
Citizenship 66
Australian Tourism Data Warehouse
13
Department of Resources, Energy
and Tourism 5, 21, 36
Australian Tourism Exchange
4–5, 25, 28–30, 37, 39, 56, 63, 65–66
Destination Australia Marketing
Alliance 39
India 30, 39, 40, 65, 108
Australian Tourism Export Council
(ATEC) 28, 30
Disability Discrimination Act 1992 36
Indigenous Tourism Champions 3, 28
Indonesia 40, 66
Austria 40
Domestic tourism
2–5, 9, 14–17, 18, 27
Aviation 33, 35, 39, 44, 46, 54, 60, 63
Dreamtime 30, 32, 39, 56, 63, 65, 66
Industry partners/partnerships
4–5, 17, 27, 29, 39, 41
E
Information and Communications
Technology 35
No Leave No Life campaign
2, 5, 15–17, 27, 29
B
Ecotourism 21
Interactive digital maps 5, 11, 13, 25
Nordic Countries 40, 52
Belgium 40
Emirates (Airlines) 44, 57, 63
Board of Directors 3, 18–20
Europe
30, 32, 39, 40, 44–51, 57, 60, 63
International Industry Advisory Group
39
Brand campaign
10–15, 24–29, 31, 37, 41–66
British Airways 44
Business continuity 33
Business events
4–5, 8–9, 32, 58–59, 60–66
Business Events Australia
9, 20, 24, 32, 54
106 Index
European New Product Workshop
2010 28, 30
Exchange rate 44, 49, 55
Experience Seekers 9, 62
International Media Hosting Program
(IMHP) 29, 39, 41–42, 46–49, 51, 56,
59–63, 65
International trade shows 30, 32, 39,
46–47, 50
Tourism New South Wales 43, 56, 66
Racial Discrimination Act 1975 36
Australian Human Resources Institute
17
Awards 44, 47, 54
Tourism Forecasting Committee 41
Legislative framework 18
H1N1 influenza 4, 56, 59–61, 63
Indigenous Business Australia 28
Tourism Australia Act 2004 IFC, 3, 18–19
R
Marketing
2, 8, 12–17, 23–32, 37, 39–66
I
Qantas 39, 41–44, 46–47, 51, 56,
59–60, 62, 64, 66
Tourism Action Plan for Climate
Change 21
Legal Services 33–34
Market briefings 37, 39
Hong Kong 40, 59, 60, 108
Q
Latin America 39, 40, 43
H
Honeymoon promotions 46, 48, 50, 61
Public Relations, Global 24, 31
Media partnerships 27, 42
Middle East 39
U
S
Sex Discrimination Act 1984 36
Singapore 31, 39, 40, 64, 108
Minister 16, 18–20, 35, 37
Singapore Airlines
39, 44, 46–47, 50–51, 60, 62–64, 66
Mobile internet 12–13, 26
South Africa 30, 39, 40, 44, 55
South Korea 39, 40, 61
N
Spain 30, 40, 50
National Landscapes 14–15, 21, 28–29
Staff 32, 33–34, 36–37
Netherlands, The 30, 40, 49, 57
State and Territory Tourism
Organisations
5, 17, 28–29, 31, 35, 39, 41, 42–44,
46–48, 51, 56, 61, 63–64
New Zealand 29, 30, 32, 35, 39, 40, 54
O
Occupational Health and Safety Act
1991 36
Organisational structure 20
United Kingdom (UK)
13, 26, 29–32, 35, 40, 44, 57, 108
United States of America (USA)
13, 26, 29–32, 40, 41–42, 60–61, 108
V
V Australia 41, 55
Values and Code of Conduct 19, 36
Vietnam 40, 66
Visiting Opinion Leader Program
3, 60, 63
Visitors to Australia, number of 9, 44
Volcanic ash 44, 45
Statement of Expectation 18
Survey, stakeholder 8
W
Sustainability 21
Walkabout Planner, The 13, 26
Switzerland 30, 40, 51
Working holiday visas
13, 41–42, 44–49, 52
World Youth and Student Travel
Conference 2009 29
Outcome statement 8
iPhone application 12–13, 26
Y
Ireland 40, 45
Youth Market
13, 26, 29, 41–42, 45–49, 51–52, 54
Italy 30–31, 40, 48
YouTube 26, 31
2009–2010 ANNUAL REPORT 107
Contacting Tourism Australia
AUSTRALIA
Level 18, Darling Park Tower 2
201 Sussex Street
Sydney NSW 2000
Telephone: +61 2 9360 1111
Facsimile: +61 2 9331 6469
Email: ask.us@tourism.australia.com
CANADA
Suite 272, 1920 Yonge Street
Toronto M4S 3E2
Telephone: +1 416 408 0549 or
+1 416 408 0560
Facsimile: +1 416 408 1013
Email: ask.us@tourism.australia.com
CHINA
Unit 1501, 15/Citigroup Tower
33 Hua Yuan Shi Qiao Road
Lujiazui PuDong
Shanghai 200120
Telephone: +86 21 6887 8129
Facsimile: +86 21 6887 8133
Email: ask.us@tourism.australia.com
GERMANY
Neue Mainzer Strasse 22
D 60311 Frankfurt/Main
Telephone: +49 69 274 00622
Facsimile: +49 69 2740 0640
Email: ask.us@tourism.australia.com
HONG KONG
Suite 6706
67th Floor Central Plaza
18 Harbour Road
Wanchai
Telephone: +852 2531 3800
Facsimile: +852 2802 8211
Email: ask.us@tourism.australia.com
108 Contact
INDIA
Office 52, 5th Floor
Nariman Bhavan
Nariman Point
Mumbai 400021
Telephone: +91 22 6628 0200
Facsimile: +91 22 6743 9765
Email: ask.us@tourism.australia.com
JAPAN
12F Marunouchi Trust
Tower North
1-8-1 Marunouchi, Chiyoda-ku
Tokyo 100-0005
Telephone: +81 3 5218 2560
Facsimile: +81 3 5218 2577
Email: ask.us@tourism.australia.com
KOREA
20th Floor
Youngpoong Building
33 Seorin-dong
Chongro-ku
Seoul 110-752
Telephone: +82 2 399 6500
Facsimile: +82 2 399 6507
Email: ask.us@tourism.australia.com
MALAYSIA
Suite 12-1, Faber Imperial Court
Jalan Sultan Ismail 50250
Kuala Lumpur
Telephone: +60 3 2611 1148
Facsimile: +60 3 2070 4302
Email: ask.us@tourism.australia.com
NEW ZEALAND
Level 3, 125 The Strand
Parnell 1001
Auckland
Telephone: +64 9 915 2826
Facsimile: +64 9 915 2881
Email: ask.us@tourism.australia.com
SINGAPORE
101 Thomson Road
United Square #08-03
Singapore 307591
Telephone: +65 6255 4555
Facsimile: +65 6253 8431
Email: ask.us@tourism.australia.com
UNITED KINGDOM
Australia Centre
Australia House
6th Floor
Melbourne Place/Strand
London WC2B 4LG
Telephone: +44 20 7438 4601
Facsimile: +44 20 7240 6690
Email: ask.us@tourism.australia.com
UNITED STATES
6100 Center Drive
Suite 1150
Los Angeles California 90045
Telephone: +1 310 695 3200
Facsimile: +1 310 695 3201
Email: ask.us@tourism.australia.com
Contact Officer
For more information about this report please contact:
General Manager Corporate Communications
Tourism Australia
GPO Box 2721
Sydney NSW 1006
Australia
Telephone +61 2 9360 1111
This report can be accessed online at
www.tourism.australia.com
Additional Information Sources
2009/10 Portfolio Budget Statements
Tourism Australia Annual Operational Plan 2009/10
Tourism Australia Corporate Plan 2009/10 – 2011/12
Freedom of Information
Tourism Australia is a prescribed authority under the
Freedom of Information Act 1982. Tourism Australia
received two Freedom of Information requests in 2009/10.
Tourism Australia’s contact officer for freedom of
information requests is Grant Le Loux, Executive General
Manager, Corporate.
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under the Copyright Act 1968, no part may be reproduced
without prior written permission from the Commonwealth.
Requests and enquiries concerning reproduction and rights
should be addressed to the Commonwealth Copyright
Administration, Attorney General’s Department, Robert
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3 International Operations