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Australian Tourist Commission Act - Australian Tourist Commission - Report and financial statements, together with Auditor-General's Report - Year - 1974-75


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THE PARLIAM ENT OF THE COMMONWEALTH OF AUSTRALIA

1975—Parliamentary Paper No. 241

AUSTRALIAN TOURIST COMMISSION

EIGHTH ANNUAL REPORT FOR YEAR 1974-75

Presented pursuant to Statute 5 November 1975

Ordered to be printed 11 November 1975

T H E G O V E R N M E N T P R IN T E R O F A U S T R A L IA C A N B E R R A 1976

P rin te d in A u s tra lia by V ic to ria n P r in tin g M e lb o u rn e

Australian Tourist Commission Annual Report 1974/75

The Australian Tourist Commission was established as a statutory authority by the Australian Government in 1967 to promote Australia as an international tourist destination. This it is continuing to do.

In addition its charter was enlarged in October 1974 to encourage Australian residents to know and enjoy their own country better. ATC affairs are directed by nine commissioners appointed by the Australian Government and consisting of representatives of the Australian and State Governments and the tourist industry.

Its administration is conducted from its head office in Melbourne. There are also a Sydney office and overseas offices in London, Frankfurt, New York, Los Angeles, Tokyo and Auckland.

Contents

Chairman's Letter to the Minister 3

Visitor Traffic 6

Visitor Receipts 7

Marketing Activities 8

Marketing Services 18

Visiting Publicists 20

Staff 22

RATA and WTO 23

What of the Future? 25

Financial Statements 28

Statistical Review 30

Commission Offices 34

Commissioners 35

Senior Executives 35

2

Chairman’s Letter to the Minister The Honorable Frank Stewart, M.P. Minister for Tourism and Recreation Parliament House Canberra, A.C.T. 2600

My dear Minister, In accordance with Section 29 of the Australian Tourist Commission Act 1967-1974, I have the honour to present the eighth Annual Report and Financial Statement of the Australian Tourist Commission for the year ended 30 June 1975.

For the second time since the Australian Tourist Commission was established in 1967, the Act establishing the Commission was amended by the Australian Parliament. Amendments, passed in October 1974, have expanded the role of the Commission to enable it to encourage travel in Australia, as well as visits to Australia from people from other countries. As a result, the ATC is now able to engage in the promotion of tourism to Australians within Australia.

Another amendment enlarged the membership of the Commission from seven to nine. Two of the members have been nominated by an association representing the travel industry in Australia (i.e. the Australian National Travel Association); two are people nominated by Governments of the States, and, of the remaining five members, one is an officer of the Australian Public Service.

Messrs. E. K. Sinclair (Deputy Chairman). G. Cohen and R E. Murdoch retired as Commissioners following very valuable service to the Commission. Remaining Commissioners welcomed your appointment of Mrs. M. Lowry and Messrs. W. J. Moran, R. T. M. Rose and K Williams as new members of the Commission. At the end of the year, one vacancy on the Commission remained.

In 1974, Australia received more than half a million international visitors for the first time. The total was 532,683, an increase of nearly 13 per cent compared with 1973 This result was well in excess of the international average (a decrease of three per cent in 197·'· m; rted h, the World Tourism Organisation. However, the increase in arr .ais c d not indicate the true state of the Australian travel in tu Ty wmet .“ or·· : from the overall economic recession. Major hotel', m Sydr· , and

Melbourne were heavily hit by a decline of more than five per -.·â– -· n visitor arrivals from the important United States market wi en Iota arr i a s of 76,373 provided the lowest figure from It it rt :'-·â–  r e 19 On the other hand, opportunities are present t: snmu ate :· ■ Australian domestic travel market with re ... · · : : ·-··............· community and the travel industry.

ATC developed its promotions to the do” estir ·â–  ■/■■■■ a c ■ : a m agent for the Department of Tourism and R'-or■■a·.· η T· v " ■ second and final year when this arrangement o r . 1 .·.·â–  ; · - -1975/76 ATC will be fully responsible for a ' " wo' oj r · ■; - · ' ATC further developed promotions directed ' ,· ,nt A r m m

producing a revised edition of tne travel nr. ο·· :r, - A ■ ·. . -v :

of Things to Do" a large-seal': consumer adver1 s n : ra ■·.· v s ·- r the first time, co-operative advertising and mere· a - o · -g .·. v a number of commercial travel orgamsat no Plans are in hand to undertake res'-arc a- d to de.·· prom-,· - •m

programmes aimed at other sections of t- ·· A js ’ralian o ■ ■ ·â–  ,n ·. A survey of travel by Aus'ra a no c..... " s " ■ A , 1 ro o

Travel Research Conference, consisting of the ATC and the Tourism Departments of all States and Territories, was published during the year. It revealed that Australians took a total of 26 million trips a year, spent 133 million nights away from home and spent about $730 million on travel.

The research also showed that many Australians were not taking a holiday and there were significant opportunities to promote the idea of holidays in Australia to more Australians. This was becoming increasingly relevant as Australians had more discretionary income and more leisure time. We are conscious of the increasing amount of leisure available to the Australian community and also conscious of the challenge to us to improve the use of that leisure.

The year proved to be most difficult for the travel industry with a dramatic escalation of costs exacerbated principally by increases in labour costs. Superimposed on this have been the impacts of successive currency re-alignments which have further aggravated the situation. We would be less than responsible if we did not emphasise that this aspect

has had a very damaging impact on the total Australian tourist scene. It could, perhaps, be argued that tourism should be considered in isolation in respect of international currency alignments. The travel industry was further hit by a limitation of resources in the area of promotion. ATC was limited by a budget of only $3.3 million for overseas promotion and access to an additional $400,000 to undertake domestic promotion. The amount available for the administration of the Commission and Its overseas promotional activities was an increase of less than 10 per cent on the previous year which was below the rate of inflation and, consequently, a much smaller budget in real terms, so reducing our effectiveness.

Costs associated with increased wages are made worse by the fact that services in hotels, motels, restaurants and many other tourist enterprises are provided on a seven-day week basis. Severe penalty rates for weekend and holiday work resulted in heavy costs rises.

A serious consequence of this wages/costs spiral was reddction in services and this must inevitably affect overall standards. We are just not providing the services which are required to maintain our international competitiveness.

The travel industry is addressing itself to the serious cost problem by appealing to employees to recognise the peculiarities of the industry which in many instances is expected to provide a 24-hour, seven day a week service. Measures being considered to avoid still higher charges include reduction of services and review of management approaches and systems. The problem, which is becoming increasingly acute, can only be solved by consultation and co-operation between management and employees.

During the year the Government arranged for the Industries Assistance Commission to inquire into assistance to the tourist accommodation industry. While the results of this inquiry could be most helpful in the long term, the IAC inquiry can provide no help to the tourist accommodation industry immediately — when problems are at their most acute.

The year was made more difficult by the introduction of, and warning of, Government administrative arrangements which have the effect of further inhibiting travel.

The Commission feels that the “ easy visa system’’ for short-term visitors, abandoned by the Government and unjustly blamed for abuses, had not been given a proper trial. We still feel that other alternatives could be considered including bilateral agreements with selected countries covering visa-free visits for tourists for a limited period.

The Commission was also concerned at the introduction, on 1 January of visa requirements for British, Irish and Commonwealth citizens. This is counter to trends in many parts of the world towards more liberal entry formalities.

The introduction of documents for trans-Tasman travel, if carried out, would be a blow to the development of travel between Australia and New Zealand. It would set the travel industry back still further as New Zealand is Australia’s largest travel market.

In recent years Australia’s attitudes towards incoming charter flights have changed and the Commission hopes that there will be further liberalisation. Already outbound inclusive tour charters operated by Qantas carry many Australians on enjoyable and inexpensive holidays overseas. Similar programmes from our major overseas markets such as the United States and New Zealand could be beneficial to the Australian

economy at this time. An outstanding success of the year was the organisation of the Pacific Area Travel Association conference and workshops in Australia. More than 1,300 delegates and wives attended from 42 countries and included leaders of the world travel industry.

We are proud that you played a key role in this conference as RATA Chairman and that your contribution was recognised by the award of Life Membership in RATA. You travelled extensively in Asia, the South Pacific and North America encouraging RATA members to attend the conference and the Commission is happy that your efforts were rewarded by the success of RATA '75.

In February, Mr. Basil Atkinson, ATC General Manager since it was established in 1967, resigned to take up the position of Director of Tourism in the Bahamas. Mr. Atkinson had made an outstanding contribution not only to the work of the ATC but the Australian travel

industry since he was first associated with it as General Manager of the Australian National Travel Association in 1957. It was with regret that his resignation was accepted. At the end of the year, Mr. Kevin McDonald was appointed as the new General Manager.

This has been a year of very considerable difficulty, but our work has been greatly assisted by the support and co-operation which you have so readily given. We also are most appreciative of the contribution of and the assistance rendered to ATC by the State Governments and Australian Territories, the Department of Tourism and Recreation, Qantas and the travel industry generally.

My fellow Commissioners also join me in acknowledging with thanks the efforts of the Commission Management and staff who, despite the problems of a stringent budget and severe strains on manpower, have continued to provide leadership and a high level of quality in their work.

Yours sincerely,

Chairman

5

Visitor T ra ff ic

G ro w th in visito rs

Visitors (ΌΟΟ)

500

450

400

350

300

250

200

150

100

Short-term visitors to Australia in 1974 numbered 532,683 persons, an increase of 12.8% on the 472,124 who visited in 1973. Over the year, New Zealand was again the major market, producing 31 % of all visitors to Australia. The strong growth in this

market can be attributed to a number of factors, the most important of which was the introduction of a more attractive airfare for the Trans-Tasman route in 1973.

The increased visitor flow from New Zealand— and also from Japan— compensated somewhat for an expected and marked slowdown in the growth of U.S. traffic.

50

0

1968 1969 1970 1971 1972 1973 1974

SOURCE: Australian Bureau of Statistics

V isitor a rriva ls b y m a rk e t 1974 New Zealand

Japan

4-5% 31.0%

(3.9%) (27.4%)

U.K. and Ireland

13.4% (14.3%)

6.0% (6 .6 % )

Europe

27.6%

All other (27.5%)

countries

14.3%

<17-1% > U.S.A.

3.2% (3.2%)

Canada

* 1972/73 figures in parentheses SOURCE: Australian Bureau of Statistics

6

1974 Major Markets

New Zealand — up 2 7 . 5 % to 164,931

U.S.A. dow n 5 . 4 % to 76,373

United Kingdom — up 6 .2 % to 71,446

* Europe — up 3 .3 % to 32,159

Japan —

‘ W e s t e r n E u r o p e .

up 2 9 .7 % to 23,872

Visitor Receipts In 1974, spending by overseas visitors to Australia was $184 million, an increase of 26.9 percent over the 1973 receipts figure of $145 million*. The large increase in total visitor expenditures no doubt stems mainly from the high domestic inflation, but it also reflects the 12.8 per cent increase in the number of visitors to Australia in 1974.

The receipts figure is that published by the Australian Bureau of Statistics as the Balance of Payments credit item ‘Travel". This figure is, to a large extent, based on data obtained by the Australian Tourist Commission, from its International Visitor Survey. It includes expenditure in Australia by persons visiting for business or pleasure, plus the expenditure in Australia of Colombo Plan students, on fares, accommodation, meals and sightseeing. The "travel’’ item also includes "on-carriage" receipts of domestic airlines, included in the cost of an international airfare to Australia.

‘ Figure adjusted from $150 million by the Australian Statistician in 1974-75.

G ro w th in re c e ip ts $A Million

200

180

160

140

120

100

80

60

40

20

0

1968 1969 1970 1971 1972 1973 1974

SOURCE: Australian Bureau of Statistics

R e ce ip ts b y m a rk e ts 1973/74 Europe

New Zealand

25.2% (21 .8 % )

8.1% (8.9%)

U.S.A.

16.4% (19.6%)

1973/74 Receipts $A Million

New Zealand 40.9

U.S.A. 26.7

United Kingdom 21.3

'Europe 13.1

Japan 7.7

‘ Western Europe

28.6% (28.8%)

All other countries

3.9%

13.1% (11.7%)

(5.0%)

4.7% (4.2%)

Canada

Japan

U.K. and Ireland

* 1972/73 fig u re s in parentheses SOURCE: International Visitor Survey

7

Marketing Activities Two ATC divisions are involved in marketing activities— Marketing Operations and Marketing Services.

Marketing Operations is responsible for evaluating domestic and overseas travel trends, identification of marketing opportunities and Australian travel product needs, preparation of market development and promotion plans and co-ordination of ATC's operations in Australia and overseas.

Marketing Services division provides a range of specialised support services at ATC Head Office, Melbourne. Marketing — General Tourism world-wide suffered badly from the spreading economic recession, loss of personal discretionary spending power due to price inflation and unemployment. During

1974 and into 1975 a major decline occurred in low-cost holiday travel from U.S.A., Japan and the United Kingdom. Although Australia lost growth from half its overseas markets, the overall situation was

helped by an increase of 35,595 in New Zealand visitors (27.5% over 1973), outnumbering the combined increase from all other sources.

Such strong growth from New Zealand cannot be expected to continue. The New Zealand economy was slower than Australia’s to feel the full effects of recession and inflation. The valuable benefits of

promotional air fares on trans-Tasman routes, new tour offerings and a high level of Australian travel advertising combined to produce record traffic levels.

The ATC encouraged New Zealand visitors to travel more widely in Australia. Emphasis was given to development of a more comprehensive range of tours and destination information was made available through key travel selling outlets. Co-operative activities with tour operators, airlines and State Government tourist offices were stressed. Consumer promotion was

undertaken selectively to increase travel by young people, to persuade businessmen to bring their families and to boost off-season

holiday visits.

8

Australia's visitors from U.S.A. fell by 5.4% on the previous year to 76,373 persons in 1974, the lowest level since 1970. For American tourists, Australia became one of the world’s most expensive destinations, due primarily to the considerable disparity between Australia's accommodation and domestic travel costs compared with competitive destinations, such as Fiji, New Zealand and Singapore. The ATC focused its promotions on good quality tours and, particularly, special

interest tours to maintain its attraction among more affluent Americans. A similar strategy was followed in Canada. Good results were obtained from fly-drive tours promoted on the Pacific Coast and tours for farmers in prairie provinces. Visitors from Canada increased by 11.6% in 1974 on the previous year.

Conditions varied widely in the main travel markets within the United Kingdom and Europe. The important segment of people visiting friends and relatives in Australia in the early part of the year showed

a continuation of the previous year’s growth, aided by discount “ reunion” air fares. Severe inflation and increasing unemployment curtailed travel plans of

many low and middle-income earners who largely comprised this market. Growth from the U.K., Greece and Italy was cut by more than half in 1974, compared with the previous year.

Steady growth continued in the long­ distance tourist markets of West Germany and Scandinavia, less affected by recession and inflation than elsewhere in the region. In these markets, the ATC sought to identify pockets of immediate prospects and highlight the availability of tours through wholesale travel agents and tour operators. Complementary media and information support resulted in numerous publicity successes and increasing consumer response to ATC and co-operative promotions.

A book sponsored by the ATC and featuring Australian tours in five language

editions provided the only comprehensive Australian travel information for consumers in these markets. Cost increases due to currency movements and budget limitations prevented ATC from further expanding use of the tours book in Europe.

The Japanese market for Australian travel grew at a rate of nearly 30% in 1974. Business travel remained a prime motivation for many Japanese visitors but there was a substantial element of tourist travel in

conjunction with business itineraries. Despite the drastic fall-off in low-priced travel to short-haul destinations last year, Japan remained for Australia one of the

largest potential sources of tourist visitors. The ATC undertook market research to provide Australian travel sellers with clear guidelines on the type of tours and main consumer market segments for priority in future development.

The ATC worked with airlines and tour operators to develop new group travel potential in addition to promotions to the businessman’s market in Japan.

The dominating consideration in market development and promotion activities undertaken by the ATC overseas in 1974/75 was the emphasis placed on areas of

primary and immediate potential visitor traffic. Australian Promotion In October 1974 the Australian Tourist

Commission Act was amended by the Australian Parliament to enable the ATC to promote travel in Australia to Australians in addition to its activities in overseas

countries. A Budget provision of $400,000 having already been allocated to the Department of Tourism and Recreation for this purpose, the ATC acted as agent for the Department in

carrying out domestic travel promotions during 1974/75. Australian domestic tourism was subject to a number of constraints during the year. Competition from off-shore cruises, low cost overseas air tours, seasonality problems, and adverse weather conditions, together

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with the introduction on the Australian market of colour television sets were all factors affecting tourism demand. Initial ATC research had indicated that

domestic travel promotion campaigns should be aimed at three distinct market segments. • young independent adults

• families with children • mature independent adults. In order to consolidate awareness created during the mid 1974 promotion, a second

9

Co-operative advertising — the ATC tieing in with a number of leading Australian tourist industry operators — was part of the strategy in the ATC youth market campaign.

promotional campaign was undertaken, aimed at young independent adults. The phrase “ Australia— Land of Things to Do” was used as the nation-wide promotional theme.

A revised, expanded and updated edition of a book detailing travel facilities and attractions having particular appeal to young people was produced. The book, entitled “ Australia— Land of Things to Do” was designed for distribution through travel selling outlets and appropriate youth- orientated organisations throughout Australia.

A total of 550,000 copies was produced. Advertising, highlighting both the book and the concept of Australia as a land providing activities of appeal to youth was undertaken through television, cinemas and newspapers.

To give greater involvement to the travel industry and to increase industry benefits from its domestic promotional activities, ATC invited all elements of the industry to join it on a co-operative basis. Response was encouraging, and a number of tour operators and accommodation establishments began promoting their own youth-orientated products under the ATC umbrella theme. To maximise effectiveness, a range of merchandising materials, suitable for overprinting, was produced and made available through travel sellers.

Prints of the ATC 30-minute travel film “ Travellin’ Round” , which was made by Film Australia to encourage young people to travel more within Australia, were produced for cinema release throughout Australia.

In co-operation with the Department of Tourism and Recreation, ATC took part in the “ Go 7 5 ” Holiday and Travel fair, held in Sydney in January. ATC's display was designed to appeal to young independent adults and showed the wide range of attractions Australia offered.

Early in 1975, the Australian Travel Research Conference, of which ATC is a member, published a survey resulting from interviews conducted at more than 7,000 homes. The survey covered travel patterns

10

of more than 26,000 people. Significantly, it was shown that less than 50 per cent of ,, Australians took a main holiday of seven days or more.

Preliminary research was begun for ATC’s promotional activities aimed at the mature independent adult segment to be undertaken in 1975-1976.

It is expected that planning and implementation of these activities will involve the travel industry fully.

New Zealand

129,336 visitors in 1973

164,931 visitors in 1974

Increase 27.5 per cent.

Trans-Tasman visitor traffic to Australia increased in 1974 despite a national “ See New Zealand First" campaign to discourage New Zealanders from overseas travel.

A national press, radio and cinema campaign aimed at encouraging young people to visit Australia was launched in New Zealand by the ATC in co-operation with the New Zealand travel industry. In ATC’s first effort to promote to a specific age

group in New Zealand, nearly 60,000 copies of the 240 page book, “ Australia— Land of Things to Do", were distributed through

travel agents. This distribution was supported by a promotion using a wide range of merchandising materials. Using the theme “ Australia— Continent of Contrasts" the ATC initiated advertising

valued at over $100,000 in co-operation with State tourism departments, Australian and New Zealand tour operators and travel

agents. More than 300 travel sales offices with a special knowledge of Australian travel were encouraged to display signs reading “ We Know Australia— Book Here". They were provided with detailed and up-to-date

information files on Australian travel attractions and tours. Successive promotional drives featuring Tasmania, South Australia, Queensland and the Northern Territory were held in 16 key centres in New Zealand and over the year

attracted 1,900 travel selling personnel to seminars. Co-operative advertising with Trans- Australia Airlines was mounted in business

magazines to encourage business travellers to add family holidays to their Australian working trips. The ATC joined Qantas and Air New Zealand in a $90,000 press campaign to boost off-season travel.

The ATC co-ordinated a visit to Auckland and Wellington in November by a task force of members of the Australian travel industry. Workshops at which the Australians met New Zealand travel executives were conducted in both cities and resulted in new tourist areas and facilities being included in the 1975 tour offerings of New Zealand tour operators. ATC offered to assist Australian and New Zealand tour operators to develop new tours during the workshop negotiations.

ATC joined United Travel, Qantas, TAA, Ansett-Pioneer and Australian Pacific Coaches in planning and sponsoring the production of a book of selected Australian tour offerings under the title, “ Australia

Book 1975” . This publication was well received by both the New Zealand travel trade and New Zealand travellers.

North America (includes USA and Canada)

96,034 visitors in 1973

93, 489 visitors in 1974

D e crea se 2 .7 p e r ce n t

Tourism marketing in North America was undertaken against a background of uncertainty caused by the economic recession and increasing air fares in the

wake of inflation and the energy crisis. The Canadian market improved on the previous year, but, in line with many other countries, Australia suffered a drop in traffic from the United States. While buyers of high-priced tours kept on travelling, the

low-cost tour market, built up over the previous four years, fell away. ATC promotional programmes were

11

designed to counter this trend, and emphasis was placed on group travel. Special interest tours in a number of categories, but especially for skin-divers, farmers, cattle breeders, and lapidary enthusiasts, were encouraged by advertising, direct mailings and promotions. Some early success was achieved and increasing numbers are expected to take the tours in future.

A great deal of field work was done to develop a network of selected travel organisations with a special interest in selling travel to and within Australia. Efforts to persuade these companies to market their own tours had considerable success, particularly in the west.

By the end of the fiscal year, ATC offices were actively assisting more than 50 organisers of group travel. Promotions to encourage attendance at conventions held in Australia and to

business houses who offer travel as sales incentives were increased. As well as helping to plan and promote this travel, ATC carried out research on activities and attitudes of the participants while in Australia. The results of this research will be

passed on to the travel industry to assist future planning. Advertising was resumed in quality

magazines read by at least half the 10 million Americans and Canadians who are proven travellers and can afford to visit Australia. Enquirers responding to the

advertisements have been sent material on available tours to Australia and other promotional booklets. ATC continued to publicise travel activities

in Australia, achieving the placement of an average of more than 50 travel-orientated publicity items a month.

ATC also assisted visits to Australia by 25 North American journalists and a Canadian

Australian exhibit at the travel counsellors' show, San Diego, U.S.A., September 1974.

12

television crew. An example of the value of this publicity is that following publication of articles on Australia in “ B.C. Motorist” and “ Canadian

Motorist” magazines, written by a journalist assisted by ATC to make a fly/drive tour of Australia, sales of fly/drive tours in British Columbia in the last quarter of 1974 rose by 23.6 per cent.

Film distribution was continued and some 200.000 people saw Australian travel films which were distributed from libraries serviced by ATC.

More than 40 U.S, and Canadian travel agents visited Australia on familiarisation programmes organised by ATC and Qantas. ATC personnel were active in relevant travel industry affairs. The Marketing

Director, North America served on the marketing authority of the Pacific Area Travel Association and the Manager, Eastern Region, and Manager, Western

Region, were involved in RATA promotions. ATC staff were invited to take part in a symposium on travel marketing in the 1970s and a forum on the impact of tourism in the South Pacific. Promotions to

potential travellers were undertaken in Florida and Connecticut and to the travel trade at the “ Travel Age West” Show in San Francisco.

ATC also helped to organise a four-city travel trade promotion by the Western Australian Department of Tourism. A dinner for 150 travel agents was held in partnership with Qantas at the World Travel Congress of the American Society of Travel Agents in Montreal.

During the year, ATC staff in both North American offices answered more than 40.000 enquiries from both the travel industry and individuals interested in travelling to Australia. Europe

46,245 visitors in 1973

49,486 visitors in 1974

Increase 7.0 per cent.

ATC chairman, Mr Alan Greenway (left) briefs Australian Minister for Tourism and Recreation, Mr Frank Stewart.

13

A feature of travel marketing in Europe has been the continuing strength of long distance tourism. Recessionary trends elsewhere have not adversely affected the buoyant German and Scandinavian travel markets and growth of travel to Australia from these countries is expected to continue.

To encourage the development of Australian tour programmes in the Western European markets, a four-colour magazine advertising campaign was mounted by the ATC in partnership with the large German tour operator and travel retailer, NUR. This was strengthened by a follow-on black and white informational advertising campaign promoting the Australian travel offerings of

leading tour operators Voss, Kuoni, Airtours International and exploiting the new Qantas and Lufthansa Airline pool agreement. More

than 3,000 coupons were received in response to the black and white advertisements and nearly 2,000 in response to the ATC/NUR campaign.

In co-operation with Qantas, and with the support Of Trans-Australia Airlines and Ansett Airlines of Australia, 80,000 copies of the fourth edition of “ Australia— The Greatest Island in the South Seas” were produced by the ATC’s Frankfurt office. This publication lists Australian tours in five different language versions and is widely distributed in Italian, German and French speaking areas, and in the Netherlands and Scandinavia.

Two groups of German travel agents and one French group visited Australia on familiarisation tours arranged by the ATC in association with Qantas, Lufthansa, TAA and Ansett. The purpose of these tours was to assist travel sellers to gain a better appreciation of Australia’s attractions,

improve their itinerary planning and to stimulate development of new tours. In a programme designed to promote increased interest in travel to Australia distribution of AT.C press material featuring Australian travel news was expanded in Germany, Austria, Switzerland, the Netherlands, Italy, France and Belgium. In

14

this material emphasis was placed on conferences and special interest events in Australia. ATC representatives called on tour operators and travel agents in the major cities of Europe and arranged film showings, information seminars and press conferences, often in co-operation with international airlines.

United Kingdom

67,285 visitors in 1973

71,446 visitors in 1974

In c re a s e o f 6.2 p e r c e n t

Contrary to general economic trends in the UK tourist traffic from the UK to Australia continued to increase in 1974/1975. The purpose of most of the travel was to visit friends and relatives in Australia. Promotion to this market was

undertaken in co-operation with Qantas which arranged screenings to more than 72,000 viewers of their own and ATC films. Advertising Australia’s potential enjoyment for leisure travellers was begun near the end of the fiscal year and early response was most encouraging.

Visits to Australia were arranged for six journalists writing for major newspapers ana' magazines. Negotiations were entered into with wholesale travel agents for the re-introduction of inclusive tours featuring Australia, most of which had been discontinued when highly competitive concessional fares were introduced in 1972.

ATC staff undertook promotional visits to provincial cities in England, Scotland and Ireland. The first educational visit to Australia to be made by Irish travel agents was arranged in co-operation with Qantas and TAA.

A large number of Australian travel industry executives were assisted in making business contacts by the introduction services of ATC’s London office.

The subject was promotion on the combined ATC-Department of Tourism and Recreation stand at the “ Go ’75’’ holiday and travel fair in Sydney. Left to right: Messrs A. Pittendrigh (ATC), F. P. Johnson and R. E. Murdoch (both ATC commissioners), and D. C. Beresford, ATC assistant general manager.

Japan

18,400 visitors in 1 9 7 3

23,872 visitors in 1 9 7 4

In c re a s e 2 9 .7 p e r c e n t

Early indications in 1975 are that the number of visitors to Australia from Japan will continue to grow. Increased advertising activity was a

feature of the ATC’s marketing programme during 1974/1975. Nine full-page colour advertisements encouraging businessmen visiting Australia to spend time outside the

business centres were published in the widely-circulated “ Nikkei Business Magazine” . To promote special interest touring there were colour advertisements in professional and sporting journals. A total of 36 advertisements appeared in six leading travel trade publications.

In association with Qantas, the Australian Trade Commission and representatives of the New South Wales, Victorian and Western Australian Governments, the ATC

participated in Australian food and wine promotions at five major international hotels where film screenings and seminars were held for Japanese travel trade members.

15

Promotional materials produced in Japanese included a guide for travellers, tour folders, a manual of Australian travel and accommodation facilities, the booklet,

“ Coming Events in Australia’’ and travel hints for Japanese businessmen in Australia. Workshops for members of the Australia Incoming Tour Operators’ Association to develop business contacts with the Japanese travel trade were organised by the ATC in Japan and Sydney. In addition, three Japanese journalists visited Australia and their articles appeared among 850 items on Australia in Japanese media during

1974/1975. ATC assisted in the production of 15 television programmes with 83 million viewers on subjects ranging from the Royal Easter Show in Sydney to the Melbourne Cup, the Great Barrier Reef and Coober Pedy.

The ATC commissioned a study to identify the strengths and weaknesses of Australia as a travel destination for Japanese and to provide guidelines for a more creative approach to advertising and promotions to selected market segments. Other Asia

43,853 visitors in 1973

45,884 visitors in 1974

In c re a s e 4 .6 p e r c e n t

With the introduction of excursion rate air fares between South-East Asia and Australia, there has been increasing interest in tourist travel to Australia by residents of South­

East Asian countries. As many travel sellers in the region are not familiar with Australian travel or its attractions ATC activities have been directed toward overcoming this lack of knowledge.

In conjunction with Qantas, seminars were held during September 1974, and May 1975 in Jakarta, Singapore and Kuala Lumpur. At these seminars local sellers of travel to Australia were advised to use the services of the Australian tour operators. As a follow-up the ATC supported a visit by the

16

Australian Incoming Tour Operators’ Association to Singapore, Malaysia, Thailand and Hong Kong. At each centre the Australian operators gave presentations to

key airline and agency personnel. In association with Qantas, Singapore International Airlines, Malaysian Airline System, Ansett Airlines of Australia and Trans-Australia Airlines, 60 travel agents in eight groups from Singapore, Malaysia, Thailand, Hong Kong and Indonesia were given the opportunity to see recent travel developments in Australia.

As a prelude to the 1975 Pacific Area Travel Association Conference in Sydney, Australia’s Minister for Tourism and Recreation and PATA Chairman, Hon. F. E. Stewart, visited Manila, Hong Kong, Kuala Lumpur, Tokyo and Singapore. Industry functions in each centre provided valuable publicity for Australia.

As part of the continuing educational effort, six issues of a South-East Asian edition of the “ Australian Travel Newsletter” were published and circulated to 500 key contacts in the region.

Surveys were undertaken to determine the future potential of South-East Asia as a travel market and the results of this research are now providing guidelines for future ATC and travel industry marketing activities in the region.

Conventions and Special Interest Tours During the year, greater emphasis was placed on the promotion of Australia as the venue for conventions held by international bodies.

ATC actively assisted numerous Australian associations to extend invitations to their international affiliates to meet in Australia and encouraged overseas delegations to attend national Australian conferences, in conjunction with the overseas offices of international and domestic airlines.

The variety of meetings being held in Australia is proof of the important world role played by Australian scientists, educators, industrialists, primary producers, commercial

companies and sportsmen and women.

An indication of Australia’s standing in world agriculture was the First International Santa Gertrudis Cattle Congress, staged in Brisbane in August, 1975.

Major conferences planned for Australia during the next few years which will attract world leaders in many fields include: 6th International Conference on Oral Surgery, Sydney, May 1977; 23rd World Congress of Education through the Arts, Adelaide, 1978; International Biochemistry Congress, Perth, 1982; Congress of the International Archery Federation, Canberra, 1977; and the 1st Pacific Esperanto (International Language) Congress, Melbourne, 1976.

Australia has increased its share of international conventions held by organisations which are members of the Union of International Associations (UlA).

The Union represents the majority of world government and non-government organisations, associations and federations which hold international conventions

regularly. Australia was chosen as the host country for 75 conventions of UlA member organisations in 1974, compared with 66 in

1973, 49 in 1972 and 17 in 1971. Melbourne was host to the largest number of UlA-member conferences, with 22 meetings; Sydney 13; Canberra 12; and other areas 28.

In March, 1975, the Pacific Area Travel Association held its annual conference in Sydney, which attracted more than 1,300 leaders of the world travel and tourism

industry, especially from the USA, Japan, South-East Asia and Pacific regions. During the year, work was undertaken by ATC in the preparation of bid documents

to help 32 Australian associations to issue invitations to their international affiliates to hold meetings in Australia. ATC recognises that business travel, whether in conjunction with international or

national conventions, company management or sales meetings or trade fairs, is an important contributor to the Australian

tourism industry. ATC is undertaking market research to identify opportunities to increase business travel and will provide the travel industry with improved means of servicing business

meeting and conference requirements. ATC publications used in the promotion of convention traffic, and for assistance to convention organisers were revised and

re-published during the year.

Market Research and Analysis

The ATC's Survey of International Visitors, conducted at all Australia’s international airports, continued during the year. Analysis

of the information collected had to be postponed, owing to delays in the receipt of complementary data from the Australian Bureau of Statistics.

The ATC was heavily involved in research conducted by the Australian Travel Research Conference, and supervised the analysis and a report on the Survey of Australian Travel.

Greater emphasis is being placed on the evaluation of effectiveness of various ATC activities. Three research projects of this nature were completed during the year, and two more are in progress. An evaluation was

undertaken of the worth to both Australian and New Zealand delegates of their participation in the Australian Travel Task Force— New Zealand in September 1974.

The value of the RATA conference to Australia was also the subject of research, as were the benefits of the incentive travel groups sent to Australia by the American

Fedders Corporation in September- November 1974. The ATC subscribed to a survey conducted

in the USA on incentive travel, which demonstrates-the potential of this growing travel market. Research was commissioned in South­

East Asia to examine the potential value of this region as a tourist market for Australia. In Japan, an attitudinal survey was undertaken to discover how best to present Australia to potential Japanese visitors.

17

M arketing S ervices Special publicity efforts were undertaken during the year to support the Pacific Area

Travel Association conference and work­ shops, the Australian Travel Task Force to New Zealand and ATC domestic tourism promotions.

ATC's photographic section supplied high-standard photographs for ATC publications, prepared 14 major audio-visual productions, supervised the production of the youth-orientated film "Travellin’ Round” , maintained extensive photographic files and undertook location photo assignments in all parts of Australia.

A series of five new posters for distribution overseas was selected for printing early in 1975/76. The Trade Services section of the Marketing Services Division prepared or supervised the itineraries of 50 overseas media visitors and 147 wholesalers or travel agents during 1974/75. R e g io n M e d ia T r a v e l A g e n t s

U.S. and Canada 26 32

Europe 5 30

U.K. 6 17

Japan and South-East Asia 7 68

New Zealand 3 —

Other 3 —

50 147

ATC’s involvement in domestic tourism promotion increased greatly the output required from all sections of the Marketing Services Division.

Extra efforts were required from staff in information gathering, publicity, photo­ graphic production and printing, but schedules were maintained without detriment to the requirements of other ATC activities.

The editorial preparation and publishing of the book, "Australia— Land of Things to Do” was the major single effort during the year. Two editions were produced. The first,

of 120,000 copies, was produced for overseas distribution and the second, of 550,000 copies, was distributed free through the Australian travel industry.

Material for the book was obtained by

18

ATC staff with the co-operation of State Tourism Departments and was a formidable task of wide-ranging research. The long-standing ATC annual publication,

"Australia Travel and Accommodation” was increased in circulation from 20,000 to 25.000 to cater for increased needs within Australia and overseas.

A new edition of ATC’s Tourist Map was produced. Practically all of the run of 220.000 copies will be distributed to prospective travellers to Australia by ATC overseas offices.

Reprints were produced of the brochure, "Australia— 23 reasons why you should see it” , and of the popular promotional and information booklet, "Australia Welcomes You” . Both these publications are used worldwide to encourage potential travellers to visit Australia.

A number of ATC special activities required head office marketing services support. Programmes, informational booklets and conference aids were prepared for the important Pacific Area Travel Association meetings in Sydney, Adelaide, Hobart and Townsville in March.

Support was also given to the Australian Travel Task Force to New Zealand in November. Other publications produced during the year included a summary of visitor statistics, two editions of "Conventions and coming events in Australia” , eight brochures supporting bids for international conventions by Australian associations and 8,500 folders designed to be packed with product information and promotional literature for specific purposes.

The Press and Information section produced four copies of the periodical "Tourism Australia” for distribution to Australian, State and local governments, community groups and the travel industry, as well as providing a regular supply of publicity material for placement in Australia and overseas.

Regular bulletins of information on tourist

attractions and facilities in Australia were prepared every three weeks for use by ATC overseas offices when dealing with travel industry personnel. More than 600 requests for specific information were answered.

A major review of facilities in Australia for tourists with special interests was begun in preparation of a detailed listing of these attractions to be produced in 1975/76.

This information will enable ATC officers overseas to enlarge their promotional work in the special interest tours field. Assistance in this task is being obtained from writers commissioned by ATC.

Another notable koala capture. Frankfurt reception guest sporting the popular little Australian promotional gift is British Tourist Authority chairman, Sir Alexander Glen, here

with ATC Europe manager, Peter Harding.

—trU

Visiting Publicists The visiting overseas journalists, photographers and television producers looked after by the ATC in Australia, all provided extensive coverage of the Australian tourist attractions through

numerous newspaper, magazine, television, radio and lecture tour outlets. Listed below are the publicists who visited Australia under ATC sponsorship.

NORTH AMERICA. Ken Armstrong

Jerry Brown and Diana Orban Martin Deutsch and Carole Congram

Barnaby Conrad Bill Davis Shan Davis Jim Ferri

Shirley Fockler Paul Friedlander Chris Hallowell Magdalene Flerwig Kermit Holt Patsy Horan and Glenn Purdy Evelyn Kelran Don Langley Christopher J.

Lockwood Carl Purcell Jack McKenney Norman Reader

Louise Weiss

Fame Circuit. Film producer

Travel Weekly

R. H. Donnelly Publications Signature Magazine Boston Globe Travel Weekly Travel Magazine

Pacific Travel News New York Times Nature Magazine Travel Age East Chicago Tribune

Travel Scene East/West Network Travel Age West

Travel Agent Magazine National Geographic Skin Diver Magazine Travel Trade

New York Post, Boston Globe

CANADA W. H. Baxter Canadian Travel Press Television team C.F.C.F., Montreal T. I. N. Thomas Canadian Travel News

UNITED KINGDOM. Irene Heath Country Life Anne Morrow Daily Telegraph, The Times John Seekings Tourism International Press

Penelope Turing The Practitioner Vogue team Vogue Magazine Ken Westcott-Jones Business Travel World

GERMANY. Dr. Annelise Reichart Dr. Gerda Rob Rainer Degelmann

Schwarz Use Tubbeslng

Joachim Wein

Graberg und Gorge West am Sonntage

Neue Zurcher Zeitung Frankfurter Allgemeine Zeitung Centre Press

Australian based correspondents for European magazines. Ruth llhe Rainer Staebe Egon Varro

NEW ZEALAND. Cyril Brown, Peter Sinclair and Kevin White JAPAN. T. Inoye T. Saito T. Sumi HONG KONG. Murray Bailey and Ian Verchere Bob Murphy Lorna Strauss

German-Austrian media Burda group Frankfurter Allgemeine Zeitung

New Zealand Broadcasting Corporation

Yomiuri Newspapers Press consultant, Tokyo Kyodo News Service

Asia Travel Trade Travel Trade Gazette, Asia Asian Hotel and Tourism

2 0

S taff On 30 June 1975, the Commission had a total staff of 114 employed against 142 established positions. Of this total 39 were located in overseas offices, including 21 locally engaged staff.

The reduction in the number of staff employed during the year resulted from a policy of non-replacement pending a full review of the Commission’s activities and staff establishment which was in progress at the time of preparing this report. It is expected that the additional responsibility of promoting domestic tourism will cause

staff numbers to rise again during 75/76 to a level approximating those which existed in 73/74. It has been a long-standing practice of the Commission to limit the size of its staff to the minimum required and to use outside consultants when it is appropriate to do so. The merit of this approach ensures the widest possible range of skills is available to undertake the wide and varied activities of the Commission. This policy is reflected in current staff levels which are the lowest for three years.

S taff S um m ary

H e a d O ffic e 77

S y d n e y 3

80

L os A n g e le s 8

N e w Y o rk 9

F ra n k fu rt 5

L o n d o h 6

A u c k la n d 6

T o k y o 7

41

T O T A L 121

E S T A B L IS H M E N T 142

A s at 3 0 -6 -7 4 72 A s at 3 0 -6 -7 5

3

Aust. Local Aust. Loci

base 75 base

4 4 8 4 4

5 4 9 4 5

2 3 5 2 3

5 1 4 3 1

3 3 6 3 3

2 5 7 2 5

21 20 39 18 21

114

142

2 2

RATA The ATC continued to be actively involved in the Pacific Area Travel Association (RATA) and other tourist bodies at international and

regional level.

The Minister for Tourism and Recreation, as Chairman of the RATA Board of Directors for 1974/75, hosted the 24th Annual Conference and associated Workshops in Australia between 13-20

March, 1975. The conference, held at the Sydney Opera House, attracted 1,319 delegates and wives from 42 countries.

Three two-day pre-conference workshops were held in Adelaide, Hobart and Townsville. Adelaide received 176 delegates, Hobart 293 and Townsville 138.

The conference focused attention of travel sellers worldwide on Australia and was considered therefore to be an event of major promotional significance during the year.

During the conference, a research programme was undertaken to assess the value of travel conferences to Australia and revealed that, despite the Australian “ free and easy” life-style enjoyed by so many visitors, Australians have still to be educated to make overseas visitors more welcome. The research also showed that travel agents visiting Australia for the first time would

return to their own country eager to recommend Australia to their clients, but agents who had been here before were

disappointed at the noticeable increases in costs which had occurred since their last visit.

Mr. R. Murdoch, a Commissioner of the ATC and Chairman of the Australian Chapter of RATA, was appointed in May as Australia’s representative on the RATA

Development Authority.

The Development Authority is involved in Training and Education, Environmental, Social and Economic Planning, Investment and Finance, in the field of travel in the Pacific area. Mr. Murdoch was appointed chairman of the Training and Education Sub-Committee.

The Governor-General, Sir John Kerr opens the 7975 Pacific Area Travel Association con­ ference at Sydney Opera House. More than 1300 foreign delegates were welcomed.

W TO On 1 November, 1974, the International Union of Official Travel Organisations (IUOTO) was transformed into the World Tourism Organisation (WTO), an inter­ governmental body with special links with the United Nations.

The ATC continued to co-operate closely with the Department of Tourism and Recreation, now Australia’s representative on the Executive Council of WTO.

2 3

2 4

W hat of the Future? “ Travel and tourism suffers in Australia from insufficient understanding of its importance to the economy and from failure to accord it the status of a major national industry. It should not be dealt

with as if its various segments were separate and unrelated industries . . These were the words of U.S. consultants, Harris, Kerr, Forster and Company and Stanton Robbins & Co. in their report on Australia’s travel and tourist industry

published ten years ago. The relevance today of this quotation, and of other parts of that report, is striking. Tourism in Australia in 1975 still does not receive its deserved recognition at both national and local government level or by the Australian community in general.

Its worth in economic, cultural and social terms is too often overlooked through indifference rather than antagonism, through ignorance rather than hostility.

It is true that the development of tourism has received a good deal more attention from the Australian and State Governments over the past few years, together with vastly

improved and expanded promotional activity. This is welcome but it may not be sufficient, either as a foundation on which to realise Australia’s full tourism potential

in the next decade or so, or as an effective means by which to counteract several alarming trends and developments which, unless checked, will severely damage the

future of the travel industry. Australia's travel and tourism industry has reached a critical stage. Following a period of rapid expansion in recent years the industry is now moving into an era of

recession. This is a worldwide movement and not peculiar to Australia, but because Australia is essentially a long haul tourism

destination the trend is likely to be felt here more acutely. There are several major factors causing

the current malaise not least of which is the world economic decline, especially in North America and Europe which are

vitally important originating markets for Australia. The accompanying increases in air fares as a result of rising fuel costs have worsened the effects.

In addition, the Australian situation has been aggravated by adverse currency alignments and inflation. Together these two factors are placing Australia at a serious cost disadvantage, to such an extent that we are approaching the stage when Australia will be unable to compete effectively in world tourism markets.

Increasing operational costs are leading to diminution of services and this In turn is threatening the quality of the Australian tourism product.

Everywhere demand for tourism is becoming more selective. Destinations and services which do not meet the needs of current demand, whose pricing is unrealistic or whose promotion is deficient, cannot expect to survive. This new situation is caused by greater consumer awareness and

increased competition. There will be a need to classify markets by segments. Travel attractions and facilities increasingly should adjust their

products to clearly defined target groups. The distribution system of the travel industry also is being affected by the restructuring of demand. This has forced changes in the operations of travel agencies, tour companies, accommodation and resort groups. Because of increased costs and stationary or decreasing earnings, some agencies have been forced to close and others are seeking new forms of co-operation and joint ventures.

The standard of tourism infrastructure and facilities must be maintained and improved if Australia is to remain effective in the international market place and if Australians are to gain full benefit from their increasing leisure time. This is an

area of responsibility shared between governments and the travel industry and collective action will be necessary. Many of those close to the scene

probably have not been as aware as they

should of the growing problems; ATC has attempted to draw attention to these over recent years. There is now an urgent need to reinforce this message but the fragmented nature of the travel industry

makes this difficult. Because of the complexion or make-up of the travel and tourism business, not only within Australia but also throughout the

world, fragmentation to some extent is perhaps unavoidable. However, this is neither a cause nor an excuse for the industry not to achieve greater close-knit collaboration and understanding.

This is not to understate either current achievements or the genuine problems which exist in attempting to create meaningful cohesion within a diverse yet

inter-related industry. These problems are not insurmountable and may need to be overcome before tourism gains its sought-after recognition within the community.

A first practical step towards wider co-operation is for companies and individuals to lend greater support to their industry associations or groups who are already working hard to give the industry a

more effective representative voice. This would create a more stimulating atmosphere in which trade bodies could set about to improve intra-industry dialogue, particularly when there are cases to be made at private enterprise and government levels.

ATC believes it has a responsibility to warn of the dangers of a drop in the quality of the product to be marketed and sold both in our international markets and here at home.

In 1965, the HKF consultants drew up a table of projected targets of international visitors to Australia up to 1975; it is significant that in the past two years we have slipped below their projections.

True, the discrepancy is marginal but it was bigger last year than in 1973 and there are indications that this year the rate of growth from some of our major overseas

2 6

markets has fallen seriously over 1974. The point cannot be made too strongly that unless this industry is accorded adequate recognition we cannot hold out any real optimism about being able to remain competitive overseas and also maintain an improvement in life-style for Australians in their own country.

Confidence — which was the hallmark of the travel industry at the beginning of the decade — has been replaced by uncertainty. This more precarious situation should and must prompt the industry to ask new questions, to listen to new ideas, and to expand industry co-operation to combat the problems which exist and lie ahead.

Financial S tatem ents Statement of Receipts and Payments for the year ended 30 June 1975

Cash on hand and at bank 1 July RECEIPTS Parliamentary appropriation Industry contributions Other receipts

PAYMENTS Marketing operations and services Advertising Promotions, publicity and public relations

Marketing aids Tourist development Market research Other services Salaries and allowances General expenses

1973/74 $(a) 44,409

3,014,000 76,917 21,280

3,112,197

3,156,606

219,390 436,928 544,412 8,300

112,927 5,027 823,384 315,507

1974/75 $ 142,042

3,300,000 121,412 31,079

3,452,491

3,594,533

573,418 466,096 574,353 526

102,826 13,358 963,149 317,405

2,465,875 3,011,131

Administration Commissioners’ fees and expenses Salaries and allowances Travelling expenses

Office expenses Other expenses

19,204 27,031

229,358 268,215

4,889 3,479

203,122 237,569

26,471 2,178

483,044 538,472

Capital Office furniture and fittings Office and photographic equipment Motor vehicles Other assets

13,743 6,998

46,827 11,112

5,075 3,484

65,645 21,594

Total payments Cash on hand and at bank 30 June

3,014,564 3,571,197

142,042 23,336

Note— 3,156,606 3,594,533

(a) 1973/74 figures have been rearranged to accord with revised 1974/75 presentation.

The Statements of Receipts and Payments and of Cash and other Balances are certified to be, to the best of our knowledge, correct and in accordance with the books and records of the Commission.

2 8

Alan Greenway, Chairman J. A. Harris, Director of Management Services

Statement of Cash and other Balances as at 30 June 1975 ASSETS

Current assets Cash on hand and at bank Deposits and advances Sundry debtors Stocks of stationery, publications, etc. Prepayments (including unexpired leases) Other current assets

Fixed assets Office furniture and fittings at cost less depreciation Office and photographic equipment at cost less depreciation Motor vehicles at cost less depreciation Other fixed assets

Note—· (a) 1973/74 figures have been rearranged to accord Total assets with revised 1974/75 presentation.

LIABILITIES Sundry creditors Accrued expenses

Total liabilities

1974 $(a)

142,042 14,845 33,451 23,340

16,133 2,213

232,024

88,087 69,277 16,569

173,933

405,957

49,314 7,086

56,400

1975 $

23,336 13,540 10,301 15,622 12,339

2,213

77,351

67,803 61,759 16,124

145,686

223,037

119,628 13,162

132,790

The Honourable the Minister for AUDITOR-GENERAL’S OFFICE Tourism and Recreation, Canberra City, A.C.T. 2601

Parliament House, 18 September 1975

CANBERRA. A.C.T. 2600

AUSTRALIAN TOURIST COMMISSION Dear Sir, In compliance with section 29(2) of the Australian Tourist Commission Act 1967-74, the Commission has submitted to me the following financial statements for the year ended 30 June 1975, copies of which are attached for your information —

Statement of Receipts and Payments; and Statements of Cash and Other Balances as at 30 June 1975. The statements are in the form approved by the Treasurer under section 29(1) of the Act. I now report, that in my opinion —

(a) the statements are based on proper accounts and records; (b) the statements are in agreement with the-accounts and records and show fairly the financial operations for the year ended 30 June 1975 and the state of the affairs of the Commission as at

that date; and (c) the receipt and expenditure of moneys by the Commission during the year have been in accordance with the Act. Yours faithfully,

(D. R. STEELE CRAIK) AUDITOR-GENERAL

Statistical Review Notes on Tables Information on these tables has been derived from two principal sources:— The Australian Bureau of Statistics' periodic

reports (visitor arrivals and visitor expenditure data) and the resources of the Australian Tourist Commission (International Visitor Survey data).

Australian Bureau of Statistics Data Data from this source relates principally to Graphs 1A and 1B and Table 2. Short-term visitor data as reported by the Australian Government Statistician refers to persons who state that they intend to stay in Australia for less than twelve months. Statistics of all overseas arrivals and departures are compiled from incoming and outgoing passenger cards. Statistics of the characteristics of short-term travellers are based on a sample. From January to September 1973, statistics were estimates

derived from one-third of the sample cards. From the December quarter of 1973, the ratio of the sample decreased to one in four cards being processed. From 1st January, 1974, samples further decreased for several of Australia’s major origin markets

(e.g. N.Z., U.S.A., 1 in 30, U.K. 1 in 20, Canada and Japan 1 in 10).

Among major changes made to Bureau procedures in 1974 was the creation of four new and additional categories for recording the “ purpose of journey” .

The Australian Tourist Commission’s “International Visitor Survey” (1) This survey began in July 1971. During the twelve months ending June 1974, 19,110

interviews were conducted with departing international visitors who had been in Australia for less than twelve months.

(2) Interviews were conducted at Australia’s six international airports. People who departed by sea, and children of under fifteen years of age were omitted from the survey. It has been assumed that their travel patterns were the same as those of adult visitors departing by air, and they have been included in the tables on this basis.

(3) While most questions on the questionnaire related to individuals, expenditure questions related to the travelling unit, i.e. total number of people travelling together for whom individual expenditure was inseparable. Expenditure of all children travelling in such groups was thus covered in the survey.

1A a n d 1B. V olum e a n d value o f o v e rs e a s visito rs

1A — Volume 1B — Value

V is it o r s ( Ό 0 0 )

550 --------------------------------------------------------------------- -

^

A nr4

250 — ---------—

200 |--------

1 00 ----------i------------j-----------

o ----------1 ------------*-----------

$ A M il lio n

220 -----

200 -----

1967 1968 1969 1970 1971 1972 1973 1974 1967 1968 1969 1970 1971 1972 1973 1974

3 0 SOURCE: Australian Bureau of Statistics

SOURCE: Australian Bureau of Statistics

2. V isito r re c e ip ts V IS IT O R S T O T A L A V E R A G E A V E R A G E

$A M IL L IO N PER PE R S O N PER PE R S O N

$A PER D A Y $A

U.S.A. 26.70 353 17

Canada 6.30 395 11

N.Z. 40.90 276 9

U.K. 21.30 302 5

Germany 3.10 337 7

France 1.10 301 8

Italy 1.50 233 4

Netherlands 2.00 272 5

Switzerland 1.10 291 11

Japan 7.70 351 18

SOURCE: International Visitor Survey

3. P laces visited N u m b e r o f A v e ra g e N u m b e r

v is ito rs S ta y o f N ig h ts

(000) (N ig h ts ) (000)

Sydney 396 15 6,072

M elbourne 194 17 3,261

Brisbane 96 14 1,387

A delaide 63 22 1,387

Perth 57 23 1,339

H obart 19 15 252

C anberra 81 8 644

Darwin 9 13 115

A lice S prings 13 6 82

B a rrier Reef 20 4 72

SOURCE: International Visitor Survey

4. A c c o m m o d a tio n used H o te l/ R e n te d P riv a te O th e r

No. o f n ig h ts s p e n t in M o te l F la t/H o u s e H om e A c c o m m o d a tio n

(000) (000) (000) (000)

Sydney 1,279 1,221 2,764 808

M elbourne 517 567 1,830 348

Brisbane 186 234 733 234

Adelaide 17 6 208 13

Perth 169 304 723 144

Hobart 36 14 161 41

Canberra 136 71 296 140

Darwin 22 40 13 40

Alice Springs 31 9 7 35

Barrier Reef 38 4 2 27

SOURCE: International Visitor Survey

31

5. Visitors, ’68-74 by country of residence Country 1967

(000)

1968 (000)

1969 (000)

1970 (000)

1971 (000)

1972 (000)

1973 (000)

1974 (000)

South Africa 2.1 2.7 3.2 5.2 4.8 5.4 4.8 4.1

Other Africa 2.0 2.3 2.3 3.0 3.6 3.5 3.8 3.1

AFRICA 4.0 4.9 5.5 8.2 8.4 8.8 8.6 7.1

U.S.A. 32.8 39.4 50.1 64.3 83.3 77.8 80.7 76.4

Canada 4.6 6.1 7.5 10.2 12.5 14.7 15.3 17.1

NORTH AMERICA 37.4 45.5 57.6 74.5 95.8 92.6 96.0 93.5

Other Americas 1.5 1.5 1.7 2.6 3.5 3.3 3.5 3.1

AMERICAS 38.9 47.0 59.3 77.1 99.3 95.9 99.5 96.7

Japan 5.4 6.8 9.0 11.4 16.0 15.3 18.4 23.9

Hong Kong 3.6 3.8 4.6 5.6 6.8 7.8 8.5 8.5

Malaysia 3.2 3.5 4.3 4.1 4.4 5.3 8.3

Singapore .8 7.4 5.8 6.4 8.6 9.3 10.7 6.8

Sri Lanka, India, Pakistan 2.2 2.4 2.5 3.0 3.2 3.1 3.3 3.5

Philippines 1.5 1.7 2.1 2.4 2.6 2.9 2.2 1.9

Thailand 1.0 1.6 1.6 2.2 2.7 2.5 2.2 2.1

Other Asia 4.0 5.1 6.7 9.0 10.4 12.2 11.8 14.7

ASIA 25.5 32.1 35.9 44.2 54.3 57.6 62.3 69.8

UK AND IRELAND 24.7 28.9 34.7 39.8 44.2 57.4 67.3 71.4

France 1.7 2.2 2.2 3.0 3.3 3.8 3.4 3.8

Germany F.R. 2.9 3.2 4.0 5.6 6.8 8.2 10.2 10.4*

Italy 1.7 2.0 2.5 3.5 4.3 4.8 6.4 6.8

Switzerland 1.0 1.1 1.4 1.9 2.3 2.9 3.9 3.8

Netherlands 3.1 3.4 3.9 4.6 5.5 7.6 7.2 7.4

Other Europe 4.7 4.7 5.7 8.0 9.0 11.1 15.1 17.3

CONTINENTAL EUROPE 15.2 16.7 19.7 26.7 31.2 38.4 46.2 49.5

New Zea and 77.0 73.6 82.6 96.8 98.5 111.2 129.3 164.9

Papua New Guinea 20.5 22.3 25.4 29.5 33.8 36.0 36.8 30.3

New Caledonia 3.6 4.7 5.3 7.3 9.2 10.1 8.3 7.3

Fiji 2.8 3.1 3.7 4.7 5.1 5.7 7.9 7.0

Other Oceania 2.8 3.2 3.6 4.1 4.6 5.3 5.9 5.2

OCEANIA 106.7 107.0 120.6 142.3 151.1 168.3 188.3 214.7

TOTAL VISITORS 215.1 236.7 275.8 338.4 388.7 426.4 472.1 532.7"

SOURCE: Australian Bureau of Statistics N.B. Figures may not add due to rounding * Includes East and West Germany due to altered recording methods from 1/1/74.

** Includes the new category "At Sea/Not Stated" (23,546 persons)

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6. C haracteristics of m ajor m a rke ts 1973/74 New Zealand U.S.A.

U.K. (D Japan

Western Europe (2) Canada

All

Countries

Number of Visitors (*) 148,293 75,630 70,437 21,938 30,875 15,934 505,854

Average Stay (days) (t) 30 21 62 19 53 37 38

Visitor Nights (Ό00) (t) 4,425 1,614 4,370 416 1,636 597 19,196

EXPENDITURE x PURPOSE (+) (Total — $ A Million) 40.90 26.70 21.30 7.70 13.10 6.30 162.40

Holiday 14.96 10.20 2.09 1.97 1.91 2.57 47.80

Business 7.07 8.14 4.82 4.23 3.48 1.16 40.00

Convention 1.85 1.06 0.33 0.06 0.32 0.13 4.90

Visiting Friends/Relatives 10.26 3.78 10.77 0.38 5.97 1.90 43.10

In Transit 0.39 0.13 0.10 0.08 0.14 0.01 1.10

Other 6.37 3.39 3.19 0.98 1.28 0.53 25.50

PURPOSE OF VISIT (t) (% of total arrivals each country) Holiday 31 46 8 28 17 40 28

Business 15 22 15 49 22 11 19

Convention 3 3 1 5 3 2 3

Visiting Friends/Relatives 30 18 60 5 50 33 32

Education 1 2 1 5 1 1 3

In Transit 8 3 5 6 6 3 6

Other 12 6 10 2 1 10 9

NUMBER OF OTHER COUNTRIES VISITED (t) (% of total arrivals each country) None 80 30 49 11 45 19 56

1 -4 14 57 45 80 39 65 36

5 or more 6 13 6 9 16 16 8

MODE OF TRAVEL TO AUSTRALIA ('') (% of total arrivals each country) Sea 3 1 4 1 2 6 3

Air 97 99 96 99 98 94 97

SIZE OF TRAVEL GROUP (f) (% of total arrivals each country) Travelled Alone 44 37 55 49 59 42 49

2 in group 39 37 35 23 29 37 33

3 or more in group 17 26 10 28 12 21 18

AGE (*) (% of total arrivals each cou ntry) 0 -14 9 4 6 2 4 7 9

15-29 31 16 22 26 19 26 26

30-39 15 15 13 25 20 17 16

40-49 16 19 14 21 18 15 16

50 and over 29 46 45 26 39 35 33

SOURCES: * Australian Bureau of Statistics flnternational Visitor Survey ; NOTES: (1) Includes Ireland (2) France, Germany, Italy, Netherlands, Switzerland

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Commission offices Australia: HEAD OFFICE: 414 St. Kilda Road, Melbourne, Vic., 3004. Telephone: (03) 267 1233.

Cables: Austour. Telex 31911 BRANCH OFFICE: 95 York Street Sydney, N.S.W. 2000 Telephone: (02) 29 7277 Cables: Austour. Telex 22322

North America: Suite 2900, 1270 Avenue of the Americas, New York, N.Y., 10020. Telephone: (212) 489 7550. Cables: Austvel. Telex 125233. Suite 1740, 3550 Wilshire Boulevard, Los Angeles, California, 90010. Telephone: (213) 380 6060. Cables: Austour. Telex 674940.

United Kingdom: Qantas House, 49 Old Bond Street, London, WIX 4AQ.

Telephone: (01) 499 2247/49. Cables: Austrav. Europe: D6000 Frankfurt/Main 1, Neue Mainzerstrasse 22, West Germany. Telephone: (0611) 23 5071. Cables: Austour. Telex 416634. New Zealand: Air New Zealand House, 1 Queen Street, Auckland 1. Telephone: 36 4636. Cables: Austour. Telex 21007 Japan: Sankaido Building, 7th floor, 9-13 Akasaka, 1-Chome Minato-ku, 107 Tokyo. Postal: C.P.O. Box 16, Tokyo, 100-91. Telephone: 585 0705. Cables: Austour.

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Senior Executives mojune·^) Head Office, Melbourne: General Manager, K. A. McDonald Assistant General Managers,

D. C. Beresford, J. W. Miller. Sydney: Manager, I. L. Kennedy.

Regional and Branch Offices: North America: Marketing Director, North America (New York), J. I. Richardson.

Manager, Eastern Region (New York), P. A. Goulding. Manager, Western Region (Los Angeles), S. E. Bowman. United Kingdom: Manager (London), N. J. Dunbar. Europe: Manager (Frankfurt), P. B. Harding. New Zealand: Manager (Auckland), J. H. Brace. Asia: Marketing Director, Asia (Melbourne), J. R. Marriott. Manager, Japan (Tokyo), J. E. Vesper.

C om m issioners and m eetings

Mr C. A. Greenway Mr E. K. Sinclair, CMG, QBE, DEC Mr F. P. Johnson Mr G. Cohen Mr R. E. Murdoch Mr L. G. Stroud

Mr N. J. Semmens Mr K. Williams Mrs M. Lowry

Chairman

Deputy Chairman to 19 June 1975

from 20 June 1975 from 20 June 1975

The Commission met on nine occasions during the year — three times in Melbourne, three in Sydney, once in Canberra, once in Adelaide and once in Perth. Mr Alan Greenway, ATC chairman.

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