Australian Tourism Export Council

Matthew HingertyManaging Director

The value of international tourismto Australia - and the importance of sister city connections in building

tourism relationships

Inbound Tourism’s Value

• $24 billion exports

• 5 million visitors

• 500k employed directly

• Largest service sector exporter

Sister Cities - why tourism needs them

Global IVAs (in millions, source UNWTO)

636.7 652.3687.3 684.1 702.6 694.0

766.0802.0

842.0898.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

IVAs to Asia Pacific (in millions, source NTOs, compiled by PATA)

213.3231.7

257.5 261.1272.7

254.3

306.2329.4

347.3

375.2

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

Outlook for 2008 (Year-on-year % growth; source: UNWTO)

7.0%

9.0%

8.0%

4.0%3.5%

2.0%

Africa Asia & Pacific Middle East World Europe Americas

But Australia is missing out!

• Predicted inbound growth 2008 – 0% (if we’re lucky)

• Rising energy prices, inflation & interest rates will continue to affect the current economic landscape.

• Global credit crunch and stock market slump is creating an growing sense of consumer unease and financial worry.

• The dollar and its impact.

• Government Policy – Tax, ETS, etc.

• Oil….

Sister City Travelmore “do-able” than ever

Aviation

The Low Cost Carriers

Revenue Generation

Nok Air - Thailand

20

Source: IATA, CAPA

QANTAS response has been the creation of Jetstar and Jetstar Asia…

It’s not all about LCC’s

The emergence of China & the Middle East as major aviation and tourism players is going to have an impact…….

Emirates

• Current Fleet 75• Has 175 aircraft on

order Including:• 58 Airbus A380 • 47 Boeing 777• 70 Airbus A350

• Plan to launch an LCC using A380’s

Dubai - DXB

•Handling capacity 70 million pax

•Runways - 6

•Has overtaken Singapore as the worlds 5th largest hub

Gulf Carriers

Airline Launched in 1995 Current Fleet 45 Has 112 Aircraft on order

Annual growth of 35% in the past 7yrs

Now Operates to 75 destinations

Airline Launched in 2003 Current Fleet 24Fleet will expand to 32 by 2008Has 14 aircraft on order incl. 4 x A380’s Operate to 70 destinations by 2010

Airline Capacity

Airline Capacity

Currently 934 Aircraft on order

Regional International Airports

• Cairns

• Gold Coast

• Avalon

• Darwin / Alice Springs

• Newcastle?

• Margaret River?

Outbound flows(Source ABS)

Australia 2005 2006 2007

Arrival 5497 5532 5644

Departure 4756 4941 5463

Index 0.87 0.893 0.968

New opportunities coupled with the strong AU$ is eroding domestic tourism.

In 2007 inbound arrivals grew by 2% whereas outbound grew at 10.6%

Challenges• Climate Change

• Oil

• The rise of the planned economies

Climate Change

Oil

Jet Fuel

Planned v Democratic Economies

Asia Pacific Hotels:

• 1,555 in the construction pipeline

• Comprising 366,679 rooms

(Source: Lodging Econometrics, October, 2007 & March 2008)

Accommodation

Greater China:

• 728 hotel projects with 222,600 rooms• Accounts for 50% of all planned projects and

60% of all new rooms • 78% are currently under construction

Additional Rooms Added 2007 - Top 522,950

19,326

15,180

71006000

Beijing Shanghai Bangkok Tokyo Hong Kong SAR

Macau(Source Macau Government Tourist Office)

• IVA’s Increase 22.7% 2007 to exceeded 27million

• 55% from Mainland China • Infrastructure development

exceeds US$25Bn• 22 hotels currently under

construction• Asia’s largest conference

venue with 15,000 fixed seat theatre

Venetian Macao Resort

Accommodation

Greater China:

• 728 hotel projects with 222,600 rooms• Accounts for 50% of all planned projects and

60% of all new rooms • 78% are currently under construction• Australia currently has 2676 rooms under

construction. An increase of 32% since Nov07. (Source Jones Lang la Salle Hotels)

An opportunity

Thailand HospitalsBangkok

Thai Nakarin Hospital Thai Hospital, Bumrungrad International

Working with the Travel Industry

CONSUMERTRAVELAGENT

TOURWHOLE-SALER

INBOUNDTOUR

OPERATOR

PRODUCTSUPPLIER

Inbound Tour Operators• Provide a vital link between the suppliers of Australian

tourism product and the overseas travel companies that buy it.

The role of ITOs in the distribution system

Australian Tourism Export Council

Thank you

www.atec.net.au