Guest Comment: Andrew McEvoy, Tourism Australia managing director
I'm sometimes accused of talking up Australian tourism a bit too much, but if that's a criticism it's one I'm happy to wear. I am genuinely optimistic about the year ahead and the overall direction our industry is heading.
Latest arrivals figures demonstrate solid and continued growth, with international visitors rising 4% in the past 12 months. Given fierce international competition, a persistently high Australian dollar and economic fragility in a number of our traditional high volume markets, this is a very creditable performance.
Having just attended another successful G'Day USA, it's especially pleasing to see a return to growth from the United States, which saw arrivals rise 4.2% for the 12 month period and 8.6% for November.
After a few difficult years, the US market is starting to show signs of recovery. We've now seen growth in 11 of the last 12 months, at levels not witnessed since the 2000 Sydney Olympics. We're also seeing a similarly positive bounce-back out of Japan, another important traditional market for us.
With more than 600,000 visitor arrivals last year, China now outranks Britain. Whilst China will continue to be the engine room of growth, other Asian markets will become increasingly important for us in 2013 and beyond – India, Indonesia, Malaysia, Singapore and Vietnam. Eight of Australia's top 10 visitor markets now lie within the Asia Pacific rim.
Our tourism industry is reaping the benefits of this Asian Century and Tourism Australia recognises this by substantially increasing our marketing activities in Asia's new and emerging economies.
Our efforts have been boosted by the four year $48.5 million Asia Marketing Fund, which will be put to good work in 2013 as we continue to build demand from these critical, fast-growing markets.
It's not all so positive, of course. Europe — and the UK in particular – is still doing it tough, but the Lions Tour later this year should stimulate travel, as 20,000-plus fanatical British and Irish rugby fans follow their team across the length and breadth of our country.
Closer to home, the most recent National Visitor Survey (September quarter 2012) shows domestic tourism in good health: trips up 4.1%, nights up 4.5% and spending up 7% over the previous 12 months. We'll be doing more to further build upon this momentum in 2013.
Importantly, this balanced portfolio approach to our marketing suggests the industry's Tourism 2020 target of doubling overnight visitor spending to up to $140 billion annually by the end of the decade is achievable and on track.
We can't afford to be complacent though. Significant infrastructure development and further improvements in access are still needed to hit these targets.
We need a 54% increase in international seats and a 25% increase in domestic seats out to 2020. The good news is that we are hitting those numbers, and will work with our 20 airline partners over the coming year to further grow profitable capacity to Australia.
In terms of tourism infrastructure, our capital cities need more hotel rooms while regional Australia needs better beds. Together with Austrade, we formed a new partnership last year aimed at attracting new investment and, while it's still early days, some firm foundations have been laid. I am confident that 2013 will start to see some significant projects get up.
In terms of Tourism Australia's core function — creating visitor demand for our country – we will be continuing in 2013 with our international campaign, There's nothing like Australia, launched in Shanghai in June 2012. The year ahead will see the campaign — now backed by more than 200 partners – further embedded in our global marketing push.
Our program for 2013 will also include a major push to target the youth market, with a global campaign planned for early in the first quarter of the year, which will have a strong focus on promoting the benefits of the working holiday visa.
The Qantas situation towards the end of last year was an unhelpful distraction for the industry, especially at a time when Australian tourism is performing well, and it is certainly my hope that we'll be able to get things resolved at the earliest opportunity in 2013.
So, as ever, opportunities and challenges lie ahead – lots to build on from 2012 and much to look forward to in 2013.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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