TOURISM VICTORIA 2014–15
Annual Report
Contents
Our profile 4
Chairman’s foreword 5
Chief Executive’s foreword 7
Our structure 8
Tourism Victoria Board 8
Board members’ meeting attendance 9
Output targets and performance 11
Victoria’s tourism performance 12
Priority one: Maximising our digital marketing opportunities 17
Priority two: Attracting high yield international visitors 19
Priority three: Increasing the domestic market 26
Priority four: Attracting and leveraging events 30
Priority five: Air services attraction 34
Priority six: Investment attraction 36
Priority seven: Investing in our workforce 38
Legislative requirements 40
Five year comparison 47
Financial report 48
Our Profile
As a Victorian State Government statutory authority, established by the Tourism Victoria Act 1992, Tourism Victoria is the vehicle through which the State Government participates in the tourism and travel industries.
The Act sets out Tourism Victoria’s objectives as follows:
· To market Victoria as a tourist destination for interstate and international travellers.
· To increase
· the number of travellers to Victoria.
· travellers’ or tourists’ length of stay at destinations in Victoria.
· the use of tourist facilities in Victoria
· To increase the amount of travel within Victoria and the use of tourist facilities by Victorians.
· To improve and develop tourist facilities in Victoria.
· To support and coordinate the provision of tourist facilities in Victoria.
· To provide more efficient and effective utilisation of investment in travel and tourism in Victoria.
As well, our overarching objective is to implement State Government policies as they relate to tourism development in Victoria and contribute to whole of government programs and policy implementation.
Values
Tourism Victoria has embraced the organisational values of accountability, respect, responsiveness, integrity, impartiality and leadership, which are outlined in the Public Administration Act 2004.
Chairman’s Foreword
I am pleased to present the Tourism Victoria Annual Report 2014-15, my first as Chairman of Tourism Victoria.
During my time in the tourism industry, both as an operator and member of the Tourism Victoria Board, I have seen many changes and challenges. Tourism Victoria’s unwavering commitment to achieving better outcomes for our industry and our State has led to continued growth and success.
Tourism remains a significant economic driver for Victoria, worth $20.6 billion a year in 2013-14, 5.9 per cent of the Gross State Product. The industry provides jobs for 206,000 Victorians, contributing 7.2 per cent of employment in Victoria.
In partnership with industry and other areas of government, Tourism Victoria has achieved another solid year of results in 2014-15. Visitors to and within Victoria spent a total of $21.2 billion during year ending December 2014 (including domestic daytrip and overnight expenditure, and international expenditure), this equates to 22.8 per cent of tourism expenditure in Australia. Victoria experienced an increase of 10.5 per cent year-on-year, higher than the national average (+3.9 per cent).
Spending by international visitors to Victoria reached an all-time high of $5.0 billion. China continues to be Victoria’s largest source market and had the highest expenditure ($1.4 billion) of all international visitors to Victoria in year ending December 2014, following 19.7 per cent year-on-year growth. Chinese overnight visitor expenditure now accounts for more than a quarter (27.4 per cent) of international visitor expenditure in Victoria.
Investment attraction remains an organisational priority, with new investment such as the Vibe Hotel and Conference Centre in Marysville, Larwill Studio’s in Parkville, Brady Hotel in Melbourne, Quest Melbourne Airport and Wyndham on Williams.
The Government’s event platform continues to generate significant economic impact for the State and deliver awareness of Melbourne and regional Victoria through global broadcasts. During 2014, it was announced that the Australian Grand Prix would remain in Melbourne until 2020. Victoria hosted matches as a part of the ICC Cricket World Cup 2015, including the final between Australia and New Zealand, the 2015 AFC Asian Cup, the inaugural Cadel Evans Road Race was held in Geelong, The Fashion World of Jean Paul Gaultier exhibition was held at the National Art Gallery and the WWI Centenary Exhibition at Melbourne Museum. Business events also continued to deliver positive results for Melbourne during the year, as an example the International Aids Conference attracting nearly 12,000 delegates.
My sincere thanks go to my fellow Tourism Victoria Board members for their insight, leadership and expertise during 2014-15. I would also like to thank Dr Janine Kirk for her commitment to the Board over the previous seven years.
I acknowledge the support and leadership of the Chief Executive, Leigh Harry, his dedicated leadership team and talented staff who work hard to respond to industry needs and strive for excellence.
To the Hon John Eren MP, Minister for Tourism and Major Events and the former Minister for Tourism and Major Events, the Hon Louise Asher MP, our thanks and appreciation for your leadership and support of the organisation and the tourism and events industry in Victoria.
Thank you to the industry, tourism operators and dedicated workforce for your continued enthusiasm and resilience to the success of the industry.
Tourism Victoria will continue to work collaboratively with our regional, government and broader industry partners to develop the industry for this State.
Andrew Dwyer
Chairman
Chief Executive’s Foreword
Tourism Victoria is committed to working with our industry and government partners to deliver on the government’s priority to contribute jobs, exports and regional development to the State’s economy.
This report details the organisation’s achievements in 2014-15 through seven key business plan priorities that are designed to help us achieve these outcomes.
The latest National Visitor Survey and International Visitor Survey results showed Victoria experienced strong growth in overnight visitors to Victoria, with increases of 10.8 per cent and 8.9 per cent respectively, to the year ending December 2014. Expenditure also increased with international visitor expenditure increasing 5.0 per cent to $5.0 billion and domestic overnight expenditure increasing 14.1 per cent to $11.5 billion, year-on-year.
Growth in international visitation was underpinned by an 7.4 per cent increase in seat capacity from new and increased direct international air services. In 2014-15, Victoria attracted new international flights to Melbourne through Air China, China Eastern, United Airlines, and Indonesia AirAsia X.
Tourism Victoria also partnered with Tourism Australia and other State Tourism Organisations on the Restaurant Australia campaign, promoting Australia’s amazing food and wine experiences. During this campaign, Victoria hosted 40 key international food and wine media and influencers. Victoria also hosted the 2015 Australian Tourism Exchange, Australia’s largest annual travel and tourism business-to-business event.
A significant focus of the organisation was the role of Regional Tourism Boards (RTBs) across the State, with a formal review being undertaken in 2014 evaluating the performance and effectiveness of RTBs and their respective Destination Management Plans.
The Victorian Government continues to recognise that tourism is a significant contributor to the State, with the Premier Daniel Andrews announcing a review of Victoria’s Visitor Economy to identify the best way to develop and grow this sector. A review of the Department of Economic Development, Jobs, Transport and Resources regional service delivery model and strategic directions for regional policy was also announced which will further inform the responses to the review of Regional Tourism Boards and Destination Management Plans.
Additionally, in the 2015-16 State Budget, the Victorian Government committed an additional $80 million over four years for the attraction of events and committed to the expansion of the Melbourne Convention and Exhibition Centre.
Both of these commitments will ensure that Victoria remains a leader in the sporting, cultural and business events sector.
I would like to thank the Tourism Victoria Board for their support, and my leadership team and staff for their continued energy, commitment and passion in a constantly changing and challenging environment. I would also like to thank those staff who departed the organisation this year, as their contribution was greatly valued and wish them the best in the future endeavours.
Thanks also goes to our industry and government partners for their ongoing support and commitment to our important and valuable industry.
Leigh Harry
Chief Executive
Our structure*
Tourism Victoria Board*
Board Members’ Meeting Attendance
Board members’ meeting attendance 2014-15
Name / Position / Meetings Attended / Eligible to AttendAndrew Dwyer / Chairman / 8 / 8
Wendy Smith / Deputy Chairman / 7 / 8
Craig Opie / Member / 7 / 8
Alla Wolf-Tasker AM / Member / 5 / 8
Peter Crinis / Member / 4* / 8
Helene Bender OAM / Member / 8 / 8
Andrew Fairley AM / Member / 5 / 8
Cinzia Burnes / Member / 5 / 8
Mike Brady AM / Member / 7 / 8
* Leave approved by Minister for Tourism and Major Events for absences.
Tourism Victoria Risk and Audit Committee
The Risk and Audit Committee assists the Board of Tourism Victoria in fulfilling its oversight responsibilities. Comprising four non-executive directors, the Committee maintains effective working relationships with the Board, management and the internal and external auditors. The Committee is responsible for ensuring good corporate governance, effective risk management, legal compliance and the strategic direction of Tourism Victoria.
Risk and Audit Committee members’ meeting attendance 2014-15
Name / Position / Meetings Attended / Eligible to AttendWendy Smith / Chairman / 5 / 5
Alla Wolf-Tasker AM / Member / 3 / 5
Helene Bender OAM / Member / 4 / 5
Andrew Dwyer / Member / 5 / 5
Andrew Fairley AM / Member / 1 / 2
Output targets and performance
Performance indicator / Unit of Measure / 2014–15 Actual / 2014–15 Target / Performance variation % / Result1Number of domestic overnight visitors / number (million) / 20.5 / 18.5 / +10.81 /
Number of visitors (international) / number (million) / 2.2 / 2.1 / +4.76 /
Visitor expenditure (domestic) / $ billion / 16.4 / 14.8 / +10.81 /
Visitor expenditure (international) / $ billion / 5.4 / 5.1 / +5.88 /
Visitor expenditure – regional Victoria (domestic) / $ billion / 7.7 / 6.9 / +11.59 /
Visitor expenditure – regional Victoria (international) / $ million / 440 / 280 / +57.14 /
Value of media coverage generated: domestic / $ million / 25.3 / 20 / +26.5 /
Value of media coverage generated: international / $ million / 45.8 / 40 / +14.5 /
Victoria’s share of domestic tourism advertising awareness among target markets: interstate / per cent / 23 / 25 / -8 /
Victoria’s share of domestic tourism advertising awareness among target markets: intrastate / per cent / 14.2 / 16 / -11.25 /
1 Note:
Domestic overnight visitors to and within Victoria increased 7.3 per cent to 20.5 million, ahead of the national average (+6.1 per cent). The increase in overnight visitors was driven primarily by the growth in the interstate market.
Performance target achieved.
In the year ending March 2015, domestic overnight expenditure was $11.7 billion. Growth in expenditure in Victoria (+8.6 per cent) was ahead of the national average, New South Wales and Queensland. Daytrip expenditure in Victoria of $4.7 billion increased (+7.6 per cent), exceeding the national expenditure average (+1.5 per cent). The year-on-year growth was driven by trips in regional Victoria.
In the year ending March 2015, growth in international overnight expenditure (+13.9%) was ahead of growth nationally (+9.1%). Strong growth in Chinese visitor expenditure (+31.4%) contributed to higher than anticipated growth.
Domestic overnight expenditure in regional Victoria grew 4.2 per cent to $4.9 billion, driven by interstate visitors. Daytrip expenditure also grew strongly (+12.1%) ahead of the national regional average (+5.6%).
Results for this target fell to $277 million in the year ending September 2013, at the time the target was set. Year-on-year growth for the year ending March 2015 was 38.8 per cent. The growth in expenditure was ahead of key interstate competitors and the national average (+11.9%), and reflect a return to trend.
The performance target was exceeded largely due to strong performance in quarter three from extensive marketing activity interstate, as well as highly-publicised Victorian major events such as White Night Melbourne, Australian Formula 1 Grand Prix, and the Australian Open.
The performance target was exceeded due to strong performance in quarter four. These figures include several broadcast projects coming to fruition, the momentum of the national Restaurant Australia campaign in conjunction with the Melbourne Food and Wine Festival, and major editorials in key publications such as the Financial Times UK, Marie Claire Indonesia, Frankfurter Allgemeine Zeitung Germany and ELLE China adding value.
This performance measure does not accurately reflect Tourism Victoria’s activity with regards to digital and other non-traditional media. Victoria’s activity in this space is increasingly directed towards non-traditional media.
This performance measure does not accurately reflect Tourism Victoria’s activity with regards to digital and other non-traditional media. Victoria’s activity in this space is increasingly directed towards non-traditional media.
Victoria’s tourism performance
Travellers to and within Victoria spent a total of $21.2 billion in the year ending December 2014 (including domestic daytrip, overnight expenditure and international overnight expenditure). This equates to 22.8 per cent of total tourism expenditure in Australia. Victoria experienced an increase of 10.5 per cent year-on-year, above the national average (+3.9 per cent).
Consistent with the long-term national tourism strategy and Victoria’s 2020 Tourism Strategy, Victoria’s aim is for tourism overnight expenditure to reach between $19.9 billion and $24.7 billion by 2020. For the year ending December 2014, Victoria’s overnight expenditure (excluding domestic daytrips) was $16.5 billion. This falls within the tourism industry potential range for the period and reflects an average annual growth rate of 6.2 per cent over the past four years (year ending December 2010–2014), which is higher than the national average of 4.3 per cent.
International visitor figures
(latest results available – year ending December 2014)