TOURISM WESTERN AUSTRALIA MARKETING … Library...TOURISM WESTERN AUSTRALIA MARKETING FORUM 2015...

TOURISM WESTERN AUSTRALIA

MARKETING FORUM 2015

CHINA

PRESENTED BY: Charley Shen

Country Manager China

APRIL 2015

Agenda1. Market status

2. Target Audience

3. Challenges

4. Market Trends

5. Market Strategies – Trade, Consumer and PR

6. The role of Events

7. Market opportunities

15%

19%

19%

22%

17%

8%

33%

42%

25%

0%0%0%

15 - 24

25 - 34

35 - 44

45 - 54

55 - 64

65+

Australia Western Australia

China Visitors – Age

Year Ending September 2014

16%

31%

14%

24%

13%2%

47%

39%

14%0%0%0%

15

–3

4 y

rs

Source: Tourism Research Australia, International Visitor Survey

% of visitors to Australia / Western Australia

WA International arrivalsfrom CHINA

Source: Tourism Research Australia – International Visitor Survey

17.6%

44.9%

-24.5%

61.5%

21.7% 28.7%

11.8% 13.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

YE Sep.'07

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

Vis

ito

rs

YO

Y %

ch

an

ge

% Change (year on year) Visitors

WA International Spending from CHINA

Source: Tourism Research Australia – International Visitor Survey

38.7%

95.3%

-44.0%

140.4%

1.8%

45.2%

-2.4%

11.0%

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

-100%

-50%

0%

50%

100%

150%

YE Sep.'07

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

Sp

en

d (

$ m

illio

n)

YO

Y %

ch

an

ge

% Change (year on year) Spend ($ million)

Purpose of Travel

63%

26%

10%14%

29%

43%

16%14%

Holiday/leisure VFR Business Education


Seasonality of Travel

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Octo

ber

No

vem

be

r

De

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be

r

Ja

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Apri

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Ju

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Ju

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Aug

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Sep

tem

be

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Mo

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rriv

als

YE Sep-12 YE Sep-13 YE Sep-14

Target Audience

15%

19%

19%

22%

17%

8%

33%

42%

25%

0%0%0%

15 - 24

25 - 34

35 - 44

45 - 54

55 - 64

65+

16%

31%

14%

24%

13%2%

47%

39%

14%0%0%0%

April, 2015 Market : China

TARGET AUDIENCEYear Target Audience Region focus Key Messages

2015-16

1) Experienced Travellers - 45 – 50 years of age or over, who are more likely planning to visit Australia again,prefer to travel in group tours (GIT)

2) Adventure Seekers - 25 – 34 years of age, seek new experiences and adventures, want to feel free and explore, prefer FIT travel

ASW, EP

2016-17

Experience TravelersAdventure Seekers

ASW, EP, ACC

2017-18


ASW, EP, ACC

2018 - 19


ASW, EP, ACC

Market Challenges• Awareness of Perth/WA is very low as iconic East Coast Australian experiences

predominate.

• Unlikely destination for a first time traveller to Australia unless undertaking a

major itinerary.

• Difficult to sell WA as part of an Australian itinerary due to the

time/distance/cost factors being amplified.

• WA is an expensive destination and less price competitive compare to the East

Coast package price.

• Many of WA tourism operators are not yet “China Ready” – lack of cultural

understanding, market knowledge and marketing tools for Chinese travellers.

• Fierce competition from increased investment and relaxed visa policy by

competitive destinations and tourism service providers.

CHINA Market Trends

1. Australia is a desirable destination for Chinese visitors and the growth is

expected to continue in particular the repeat travelers.

2. Continued economic growth creates a large pool of upper and middle class

travelling overseas as FIT or semi-FIT.

3. Chinese travelers desire world class beauty, natural environments, coastal

scenery and indulge in good food and wine and WA’s strength relate to

those offering.

4. More secondary Chinese cities emerging as key outbound travel markets.

5. Increased airline capacity and frequency.

6. Growing commitment of the Chinese travel trade.

7. More Chinese travellers are using digital channels to gather information on

holidays.

CHINA Goals

To grow visitor spend to $500M by 2020 and to

reach the Tourism WA strategy goal of 100,000

visitors by 2020.

Market StrategiesPRIORITY Strategy

TRADE 1. Strengthen partnership with key agents to promote WA Mono travel packages which drives demand in key cities.

2. Target more travel agents to promote WA travel packages continue to build the distribution in key Tier 2 cities.

3. Grow the distribution for the fast growing FIT market.

4. Expand the scale of key trade events such as China Travel Mission and Ni Hao WA as a key platform for product/business development and trade promotions.

5. Continue to build our relationship and educate the targeted East Coast Inbound Tour Operators.

AVIATION 1. Continue to target increased frequency with China Southern Airlines and utilise the airlines’ channels such as frequent flyers program, and major banks for marketing opportunities.

2. Continue to partner with Singapore Airlines to run tactical campaigns targeting the FIT market.

Market Strategies

PRIORITY Strategy

CONSUMER 1. Continue to focus on the selling proposition of WA as a Mono destination.

2. Raise the awareness of Perth and WA through brand co-op advertising campaigns, PR, events promotions and online marketing activities.

3. Identify major TV broadcast opportunities to raise the awareness and profile for WA and increase intention to travel to WA for holidays.

4. Maximizing the impact of the key events to generate media exposure which drives awareness of Perth and WA among our key target audience.

5. Run promotions with airlines; major banks and credit card companies targeting the frequent flyers and high-end customers.

6. Capitalising on the online and digital marketing opportunities and actively using Mobile app (WeChat) and Weibo to communicate with target audience.

7. To gain a better understanding of the Chinese travellers’ behaviour, needs, drivers, motivations and triggers for holiday in WA through consumer research.

Trade Activities

Trade Tactical coop with China trade 1QPartnership with TA and KDP partner to launch call to action type campaign to promote MONO WA package

Trade China Mission Oct,15

Major annual trade event held in October every year in China. Plan in double the buyer participation number. Target 25 WA operators to come to China to attend series activities with 45 Chinese buyers, and media representatives in 3-4 days.

Trade Ni Hao WA Mar, 16

Major annual trade event held in March every year in Western Australia. Target to brining 40 Chinese buyers including Hong Kong and trade media to WA to attend series activities with 30 WA operators in 3-4 days followed by famil trips to key destinations in WA.

Trade ASP Training new module 1-4Q TA initiative new ASP training model cost sharing

TradeIndustry Development & East Coast ITO famil

1-4QEducate WA industry including east coast ITO by organizing various workshops & famils

Tactical coop with China trade• Mono-WA coop with 20 travel agents, Tourism Australia and China

Southern Airlines.

• New partnership with two major Online Travel Agents – Ctrip.com &

Tuniu.com

• New distribution in Chengdu, Chongqing and Changsha.

• Mono WA itineraries cover EP, ASW and Pinnacles.

WACTM 2014• Held in October 2014 at Chengdu

• 3 days program including business forum, networking, workshop, frontline staff

training and gala dinner.

• Total participants 200

-- Buyers 26 -- WA sellers 22 -- Media 6 --Airlines 3 --VIP guests 12

-- Front line sales representatives 120

• Extremely positive feedbacks from WA operators for the program and quality of

the event.

Ni Hao WA 2015• Held in March 2015.

• Program includes famil trip to EP, ASW, Pinnacles; business forum and

workshop at Aravina Estate – Margaret River.

• 20 Chinese travel agents, 9 Hong Kong travel agents, 7 VIPs from

China travel industry and 31 WA sellers attended.

• Very positive feedbacks from WA operators.

ASP Training Program

• Attended 8 ASP trainings in Beijing, Guangzhou, Chengdu,

Chongqing, Shanghai, Hangzhou and Shenzhen.

• Around 1,900 front line staff have been trained with WA destination

knowledge.

Consumer & PR Activities

Consumer Major broadcasting Project 3Q

To increase Perth and WA awareness among target audience by partnership with main strain TV or online video, to create an video program with which strong and impactful message of WA will be communicated to mass audience.

Consumer PR strategy 1-4Q Continuing efforts to build Perth/WA awareness through PR initiatives

Consumer China digital 2QContinue building WA.com Chinese pages; online campaign by utilizing social media (WeiChat and Weibo)

Consumer TWA Global VFR 2Q Detail TBC

Aviation China Southern Coop 1Q

Integrated marketing coop campaign with China Southern in partnership with TA and KDPs. Coop campaign will include: brand advertisement, online advertisement, PR initiatives including major broadcasting program with major banks and CZ’s frequent flyers and tactical coop with KDP partners.

Aviation Singapore Airlines Coop 4QTactical coop campaign with Singapore Airlines to promote FIT package in partnership with SQ Holidays

Brand Coop with CZ

Special promotion with CZ for B787 launch

SQ TWA Joint Marketing Campaign

• Campaign Period: January – June 2015

• Joint marketing campaign on top Chinese travel website –

Qunar.com

• Target audience: FIT

• Utilize SQ and TWA’s social media platforms to enlarge

the impacts of the campaign

Event ActivityEVENT STRATEGY KEY MESSAGES OUTCOMES / TARGET

MRGE PRConsumer

Food & Wine Tourism Increase event and destination awareness

BASS PRConsumer

Life style and costal life Increase event and destination awareness

How to enter the CHINA market

Build relationship before build

business

China is too big, keep focus

Industry Opportunities for WAProject Type Dates

China Mission 15 Trade Event 18Oct-21Oct 2015

MRGE Consumer & PR & Media famil

Sept-Nov 2015

Ni Hao WA 15 Trade Event March 2016

SQ Campaign Tactical (FIT) June 2016

TWA Social Media PR All year round

TOURISM WESTERN AUSTRALIA

MARKETING FORUM 2015

HONG KONG

PRESENTED BY: Charley Shen

Country Manager China

APRIL 2015

Hong Kong Visitors to Western Australia

Year on Year Change


YE: Year Ending. YOY: Year on Year

15.7%

-42.9%

52.6%

-2.6%

14.2%

12.4%

21.4%

-0.6%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

-60%

-40%

-20%

0%

20%

40%

60%

YE Sep.'07

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

Vis

ito

rs

YO

Y %

ch

an

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% Change (year on year) Visitors

Hong Kong Visitor Spend in Western Australia

Year on Year Change



36.5%

-53.0%

57.2% 55.8%

20.8%

-3.8%

25.4%

9.8%

$0

$10

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$30

$40

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$60

$70

$80

$90

-60%

-40%

-20%

0%

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60%

80%

YE Sep.'07

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

Sp

en

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$ m

illio

n)

YO

Y %

ch

an

ge

% Change (year on year) Spend ($ million)

Hong Kong Visitors to Western Australia

Seasonality

Source: Department of Immigration and Border Protection (State of Intended Residence: WA, Category of Traveller: Short Term

Visitor Arrival)

YE: Year Ending

0

500

1,000

1,500

2,000

2,500

3,000

Octo

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YE Sep-12 YE Sep-13 YE Sep-14

Hong Kong Visitors - Purpose of Visit

Year Ending September 2014

54%

40%

12%

8%

37%

47%

8% 8%

Holiday/leisure VFR Business Education




% of visitors to Australia / Western Australia

MARKET TRENDSMARKET: HONG KONG

Brief Background (including challenges & issues):

• Hong Kong is WA’s 8th largest inbound market for spend (YE Sep 2014). 3-Year AAGR 17.4%.

• There were 17,500 visitors from Hong Kong (YE Sep 2014).

• Tourism WA and the industry were not active in the Hong Kong market in past few years.

• Awareness of Perth/WA and consumer/trade knowledge of WA is very low.

• WA has a ‘complex’ proposition to communicate.

• Unlikely destination for a first time traveller to Australia.

• Difficult to sell WA as part of an Australian itinerary due to the time/distance/cost factors being amplified.

• WA is perceived as an expensive destination and less price competitive compare to the East Coast package price.

• Strong competition from other Australian States/Territories and tourism operators.

MARKET OPPORTUNITIES 2020 Vision: Our key objective is to grow the visitation from Hong Kong between 2015-16 at amoderate rate and aim at a strongest growth rate from 2016-17 onward and to maximize the key opportunities for WA as outlined below.

Market Opportunity:1. Strong aviation links between Hong Kong and Perth on CX and SQ and other airlines

such as Scoot and Thai Airways.

2. Growing wealthy experience seekers and repeat travelers markets.

3. Well established travel distribution and a more mature market allow us too focus on the most potential market segment.

4. WA offers experiences such as world class nature, food and wine, wildlife and an overall safe experience that appeals to the key market segment.

Game Changers:

1. New hotel projects and increase supply of hotel rooms in CBD of Perth.

2. WA is emerging as a new choice of Australian holiday destination.

3. Growing interest and commitment of the Hong Kong travel trade to promote WA.

4. More Hong Kong travellers are using digital channels to gather destination information and book their holidays through online channels.

April, 2015 Market : Hong Kong

TARGET AUDIENCEYear Target Audience Region focus Key Messages

2015-16

Experience Seekers

• Are more likely to be aged 22-39 years • Seek new experiences and adventures • Prefer FIT travel or travel in a small

group• Some are more likely have been to

Australia before• Want to feel free and explore • Social media, internet and

technologically sophisticated • Are prepared to stay longer and more

likely to disperse

EP, ASW, ACCPotentially AGO

Highlight WA’s key strength:• Diversity • Pristine• Unspoilt and undiscovered• Lots of sunshine/ great climate• Same time zone as Hong Kong• Proximity to Hong Kong• Uncrowded• New infrastructure • Accessible and convenient• Secure/ Safe• Interesting wildlife

2016-17

Experience Seekers(Same as above)

EP, ASW, ACC, AGO Same as above

2017-18

Experience Seekers(Same as above but subject to review)


2018 - 19

Experience Seekers(Same as above but subject to review)


April 2015 Market: Hong Kong

2015/16 STRATEGY IN DETAIL

PRIORITY Strategy Budget by percentage

CONSUMER 1. To communicate the selling proposition of WA as a Mono holiday destination.

2. Build awareness for Perth and WA through brand co-op advertising campaigns, PR, events promotions and online marketing activities.

3. Strengthen the relationship with Tourism Australia and work with them on the IMHP and TV broadcast opportunities.

4. Run promotions with airlines; major banks and credit card companies and non traditional partners targeting the frequent flyers and high-end customers.

5. Capitalising on the online and digital marketing opportunities.

6. Continue to engage a marketing representative to manage and co-ordinate TWA’s marketing activities

37.5%

April 2015 Market: Hong Kong

2015/16 STRATEGY IN DETAIL

PRIORITY Strategy Budget by percentage

TRADE 1. Strengthen the partnership with selected key travel agents to promote WA Mono travel packages .

2. Improve the travel trade knowledge of WA’s tourism products through key trade events such as China Travel Mission and Ni HaoWA.

3. Identify the most potential OTAs to run joint promotions targeting the FIT market.

30%

AVIATION 1. Continue to partner with Singapore Airlines to run tactical campaigns targeting the FIT market through SIA Holidays.

2. Establish partnership with Thai Airways to promote WA travel packages through their trade distribution channel.

3. Establish partnership with Scoot Airlines to promote WA travel packages targeting the FIT market.

4. Continue to work with CX with an emphasis on their frequent flyers.

32.5%

BUILDING TO 2020STRATEGY FOCUS

2016/17 Increase our focus on Hong Kong and rebuild trade confidence to promote WA

Consumer/Trade/Aviation

Focus on destination awareness and conversion Consumer/Trade/Aviation

Targeting the FIT through the marketing partnership with Scoot Airlines

Consumer/Aviation

2017/18 Focus on the consumer knowledge of WA Consumer

Developing a winning digital strategy and the capability to deliver

Consumer/Trade

BUILDING TO 2020 continue

STRATEGY FOCUS

2018/19 Focus on FIT market and digital promotions Consumer/Trade

2019/20 A strong focus on communication with the targeted segments as the market will be driven by consumer

Consumer

A sophisticated and effective digital strategy and the capability to deliver

Consumer

April, 2015 Market : China

EVENTS / C&C (WHERE APPLICABLE)

EVENT STRATEGY KEY MESSAGES FUNDING (partner / TWA)

OUTCOMES / TARGET

MRGE PRConsumer

Food & Wine Tourism TBC (EventsMarketing)

Increased event and destination awareness

Industry Opportunities for WAProject Type Dates

China Mission 15 Trade Event 18Oct-21Oct 2015

MRGE Consumer & PR & Media famil

Sept-Nov 2015

Ni Hao WA 15 Trade Event March 2016

Airline coop campaign Tactical (FIT) All year around

Co-op with TA – IMHP and Broadcast opportunities

PR & Media 3Q

Tactical coop with selected key travel agents

Tactical (GIT) 3Q & 4Q

THANK YOU

QUESTIONS

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