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Tourism Australia—Report for 2018-19


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Tourism Australia • Annual Report • 2018/19

A N N U A L R E P O R T 2 0 1 8 / 1 9

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Front cover: Hutt Lagoon, near Port Gregory, WA Inside cover: Intrepid Travel - Journey to Arnhem Land, NT

This report details Tourism Australia’s operations and reviews our performance against the objectives and goals set out in the Tourism Australia Corporate Plan 2018-22 and the Portfolio Budget Statements 2018-19: Budget Related Paper No. 1.9 - Foreign Affairs and Trade Portfolio . The report was prepared in accordance with the Tourism Australia Act 2004 (Cth), the Public Governance, Performance and Accountability Act 2013 (Cth); and other relevant legislation.

This report includes case studies of Tourism Australia’s marketing initiatives across the globe, highlighting our activities and successes in the countries where we operate.

- Letter of transmittal -

14 October 2019

Senator the Hon. Simon Birmingham Minister for Trade, Tourism and Investment Parliament House Canberra ACT 2600

Dear Minister,

I have the pleasure of presenting Tourism Australia’s 14th annual report for the reporting period 1 July 2018 to 30 June 2019.

The report has been prepared in accordance with section 39 of the Tourism Australia Act 2004; section 46 of the Public Governance Performance and Accountability Act 2013; and Finance Minister's Orders.

Yours sincerely,

Bob East Chairman

Wollongong, NSW

CONTENTS 1.0 ABOUT US 8

Overview 10

Tourism 2020 12

Our strategy 15

2.0 2018/19 OVERVIEW 18

Executive reports 21

Annual performance statement 24

Key events 32

Visitor numbers and spend 36

Awards 38

3.0 MARKETING PERFORMANCE 42

Grow demand 44

Performance overview 44

Campaign highlights 46

Promoting signature experiences 53

Public relations, broadcast and media hosting 58 Digital 59

Social media 61

Partnerships 62

Business events 64

Industry development 68

Performance overview 68

Distribution development 69

Aviation development 74

Attracting investment 76

Industry engagement 78

4.0 MANAGING OUR ORGANISATION 82

Performance overview 85

People 86

Organisational capability 90

Environmental performance 93

Organisational structure 94

Organisational changes 95

Executive Leadership Team profiles 96

5.0 CORPORATE GOVERNANCE 98

Performance overview 100

Enabling legislation and responsible minister 101 Governance framework and practices 102

Board activities and committees 105

Executive remuneration 108

Board profiles 112

6.0 FINANCIALS 116

Financial performance overview 119

Financial statements 120

7.0 REFERENCES AND APPENDICES 152

Staff statistics 154

Glossary 156

Abbreviations and acronyms 159

Tables and figures index 160

Compliance index 162

Detailed index 166

End notes 170

Contacts 172

Tourism Australia | 5

2018/19 HIGHLIGHTS

Australia ranks

1st

for visitor spend per trip, 7th globally for tourism receipts1

Tourism is one of

five

super growth industries driving the future prosperity of Australia2

43 cents of every tourism dollar are spent in regional Australia3

Tourism accounts for almost

10% of all exports3

Tourism directly provides jobs to

1 in 19 Australians, involves 1 in 8 Australian businesses3

Wyadup Spa Pool, near Yallingup, WA

6 | Annual Report 2018/19

Overnight spend by travellers $122.1 billion (+11%)a

Spend by international travellers $44.6 billion (+5%)a

Number of international visitors to Australia 9.3 million (+3%)b

Partnership marketing revenue contributed by the tourism industry $52 million (-15%)c

Business Events Bid Fund

20 bids converted $253 million economic impactd

Stakeholders’ satisfaction with our work 93% (-2%)e

Unique visitors to australia.com 18.7 million (-5%)f

Fans of Tourism Australia’s Facebook pages (Australia.com - 9.53m and Australia Inc - 942k) 10.5 million (+18%)g

Instagram followers 3.79 million (+19%)g

Twitter followers (@Australia - 513k, @TourismAus - 152k, @MeetinAustralia - 19.7k) 0.70 million (+6%)g

Weibo followers 1.25 million (+32%)g

Staff engagement 90% (-2%)h

Corporate costs as a percentage of total expenditure

9% (maintained)i

Gender diversity 30% male: 70% female (maintained)j

Table 1. Tourism Australia's 2018/19 highlights

2018/19 HIGHLIGHTS

a Tourism Research Australia, International Visitor Survey, June 2019 b Australian Bureau of Statistics, Overseas Arrivals and Departures, June 2019 c Tourism Australia, internal tracking (finance system), June 2019 d Tourism Australia, internal tracking (business events system), June 2019 e Tourism Australia, Satisfaction Survey, June 2019 f Tourism Australia, internal tracking (data channels / data sharing with partners), June 2019 g Tourism Australia, internal tracking (social media channels), June 2019 h Tourism Australia, Staff Engagement Survey, June 2019 i Tourism Australia, internal tracking (finance system), June 2019 J Tourism Australia, internal tracking (Human Resources system), June 2019

Tourism Australia | 7

1.0 A B O UT US

Byron at Byron Resort and Spa, NSW

8 | Annual Report 2018/19

Tourism Australia | 9

OUR VISION Our vision is for Australia to be the most desirable and memorable destination on Earth.

OUR ORGANISATIONAL PURPOSE Our organisational purpose is to grow demand and foster a competitive and sustainable Australian tourism industry through partnership marketing to targeted global consumers in key markets.

OUR MARKETING PURPOSE Our marketing purpose is to invite the world to experience the Australian way of life.

OUR GOAL Our goal is to achieve more than $115 billion in overnight tourism spend by 2020 (up from $70 billion4 in 2009). We share this goal with the Australian tourism industry and federal, state and territory governments to maximise tourism’s contribution to the Australian people.

OUR VALUES Our values support our vision. They are the essence of our identity and provide the guiding principles to our behaviour and to the relationships we have with our customers and partners. They are:

> United | we are one team

> Positive | we are optimistic

> Genuine | we are authentic

> Commercial | we deliver results

> Innovative | we are creative thinkers.

OUR LEGISLATIVE OBJECTS AND FUNCTIONS Under the TA Act our objects are to:

> Influence people to travel to Australia, including for events

> Influence people travelling to Australia to also travel throughout Australia

> Influence Australians to travel throughout Australia, including for events

Tourism Australia is a corporate Commonwealth entity formed under the Tourism Australia Act 2004 (TA Act). It is governed by a Board of Directors that is appointed by the Minister responsible for tourism under the TA Act and the Public Governance Performance and Accountability Act 2013 (PGPA Act).

> Help foster a sustainable tourism industry in Australia

> Help increase the economic benefits to Australia from tourism.

Under the TA Act our functions are to:

> Increase the awareness of potential international travellers of Australia as a destination

> Increase the awareness of potential domestic travellers of Australia as a place to travel

> Increase the knowledge of potential travellers, both international and domestic, of Australia

> Increase the desire of potential international travellers to travel to Australia

> Increase the desire of potential travellers, both international and domestic, to travel throughout Australia5

> Conduct research into, and analysis of, international and domestic travel

> Report on trends in international and domestic travel

> Communicate effectively with the Australian tourism industry on issues that may affect it

> Increase awareness throughout Australia of the contribution of tourism to Australia’s economy, society and environment.

OUR AUSTRALIAN GOVERNMENT OUTCOME AND PROGRAMS Each year, Australian Government agencies are required to identify their planned programs, and the desired outcomes of those programs set by the Australian Government. Programs provide the vehicles for agencies to deliver on outcomes set by the government.

Tourism Australia has one government outcome: ‘To grow demand and foster a competitive and sustainable Australian tourism industry through partnership marketing to targeted global consumers’.

This outcome is delivered through two programs:

1. Grow demand

2. Industry development.6

OVERVIEW

10 | Annual Report 2018/19

How we measure the success of our programs

Goal: Increase overnight tourism expenditure to more than $115 billion by 2020

Program Measure

Grow demand Total spend from target markets

Leisure spend from target markets

Business Events spend from target markets

Earned advertising value from marketing activities

Total unique visitors to Tourism Australia websites

Destination brand - evidence that consumers are considering Australia as a destination

Destination Net Promoter Score - visitors recommend Australia as a holiday destination

Industry development Stakeholders indicate that Tourism Australia adds value to their business

Stakeholder Net Promoter Score - stakeholders recommend working with Tourism Australia

Table 2: Tourism Australia’s government programs and performance metrics

Aboriginal Heritage Walk at Royal Botanic Gardens, Melbourne, VIC

Tourism Australia | 11

Looking beyond 2020

Seeing the results

Setting the foundation

2015-2017

2010-2014

2018-2020

Tourism 2020 is a whole-of-government and industry strategy designed to build the resilience and competitiveness of Australia’s tourism industry and increase its contribution to the Australian economy.

Tourism 2020’s goal is to double overnight expenditure to more than $115 billion by 2020. When it was introduced, the target was set at between $115 billion and $140 billion in overnight visitor expenditure, reflecting a range of scenarios from holding, to increasing market share across key markets. Composition of the spend target included domestic and international overnight spend on holidays, visiting friends and relatives, business and education.

The strategy focuses on improving the industry’s performance by pursuing opportunities to increase consumer spending and addressing supply-side factors. It is being implemented in three phases; currently, we are nearing the end of the 'looking beyond 2020' phase, as detailed in this report.

In 2018/19, we continued to champion Tourism 2020. We also began planning for the years beyond 2020, working in partnership with Austrade, state and territory governments, and the Australian tourism industry. Figure 1. Tourism 2020 implementation phases

TOURISM 2020

Wineglass Bay Beach, Freycinet, TAS

12 | Annual Report 2018/19

Looking beyond 2020

Seeing the results

Setting the foundation

Tourism 2020

Overnight visitor expenditure ($ billions)

*National Long-Term Tourism Strategy

2009

70.0 71.8

74.5

77.2

80.4

85.5

94.5

121.1

103.2

97.1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$115bn

$140bn

110.0

Performance against Tourism 2020 goals

NLTTS*

PERFORMANCE AGAINST TOURISM 2020 As outlined on page 2, the target is to achieve between $115 billion and $140 billion in overnight expenditure by the year 2020. Figure 2 shows this range and progress since the inception of the strategy. At 30 June 2019, overnight visitor expenditure reached $122.1 billion, up 11 per cent on the previous year.7 Recent forecasts indicate overnight visitor spend will reach $134 billion by 2020.8 Thus in the year 2020, we anticipate achievement of the goal midway between the target range.

A competitive aviation environment is essential to achieving the Tourism 2020 goal. When the strategy was launched in 2011, we set a target of between 40 and 50 per cent growth in international aviation capacity, representing an increase between 7 million and 8 million seats. This target has been achieved. Over the past eight years there has been solid growth, with 26.9 million seats at December 2018 (an increase of 10.3 million seats).9

Increased investment in quality accommodation is also a significant factor in achieving Tourism 2020’s goal. The Australian tourism industry has made solid progress in this area. The target of adding between 6,000 and 20,000 new rooms has already been achieved, with 48,859 new rooms added to supply at 30 June 2019.10

Figure 2: Progress against Tourism 2020 goals

Sailing on Sydney Harbour, Sydney, NSW

upper band of the Tourism 2020 goal

lower band of the Tourism 2020 goal

actual spend at 30 June in that year

Tourism Australia | 13

External changes affecting Australian tourism Implications for Tourism Australia

Economic > The global economy slowed in 2018,11 impacted by trade tensions between China and the USA; and uncertainty around Brexit.

> An increasing number of destinations continued to invest in tourism, in recognition of its ongoing economic and social benefits.12

> Australia’s tourism industry continued to be a significant contributor to our national economy. It has grown 17 per cent in the past four years, almost twice as fast as our national economy.13

> The overall macro-economic environment was relatively positive, with mixed consumer confidence across our key markets.

> Continued global competition for market share with other destinations such as Japan, Thailand and New Zealand.

> Maintaining a balanced market portfolio remained relevant.

Marketing channels and campaigns

> Media costs continued to rise (for example, up 16 per cent year on year in China, and up 12 per cent year on year in India).14

> Digital disruption continued to influence how we operate and communicate with target consumers.

> Programmatic advertising and media buying remained fundamental to effective consumer targeting.

> Digital, video and content have become increasingly important in reaching our target consumers.

> We continued to develop Tourism Australia as a connected, digitally focused organisation.

> To improve cut-through of our creative and impact of our media spend, we focused campaign activity and resources on initiatives that could be translated across regions and markets.

Consumer > Increasing demand for experiential travel - particularly for food and wine, natural beauty and wildlife experiences.

> Increasing mobile and direct transactions between consumers and tourism experiences and products.

> Visitors from Asia - particularly from China, India and Japan - outperformed those from other overseas markets, with an increasing share of independent travellers from these countries.

> While visitation continued to grow, the global trend of international visitors taking shorter trips is becoming more prominent.

> We continued to make the most of consumer and technology trends, working with industry to connect travellers to experiences.

> We continued to focus on Asian markets and high value travellers.

Travel industry

> Global aviation capacity continued to grow, but at a slower pace, up 3.6 per cent year on year, while capacity to Australia grew 4.2 per cent year on year.15

> The ‘sharing economy’ and increasing presence of online travel agencies as consumers manage their own travel plans.

> We continued to analyse and develop insights into industry developments that influence demand for Australia as a tourism destination.

Table 3. Operating environment 2018/19

OUR OPERATING ENVIRONMENT 2018/19 The table below outlines the trends that have impacted our activities and operating model in 2018/19. These include global economic factors, consumer behaviour changes, shifts in the media landscape and the composition of the travel industry. These shifts were taken into consideration when planning Tourism Australia’s budgeting and resourcing, marketing activities and operating model.

14 | Annual Report 2018/19

CUSTOMER

Target high value leisure and business events travellers

MARKETS

Invest in markets with the best potential to deliver high spending consumers to 2020 and beyond

ENABLING

Support, deliver, build capability

STRATEGIES

LEISURE BUSINESS EVENTS

Stars, Solid Deliverers, Distribution focused, Rising stars

Incentive, Association

Engaging campaigns | Effective channels | Leverage partnerships | Distribution development

MARKETING

Invite the world to experience the Australian way of life Grow demand for business events experiences and destinations

VISION

For Australia to be the most desirable and memorable destination on Earth.

PURPOSE

To grow demand and foster a competitive and sustainable Australian tourism industry through partnership marketing to targeted global consumers in key markets.

GOAL

More than $115 billion in overnight spend by 2020.

OUR STRATEGY

OUR AREAS OF FOCUS IN 2018/19 We continued to work in partnership with the tourism industry and state and territory governments to take advantage of growing demand from key markets and to achieve our Tourism 2020 goals. We focused on:

> Delivering campaigns that showcased regional Australia, highlighting the unique and unexpected experiences that can be enjoyed across our country

> Taking advantage of the opportunities in China and the USA; and the growing middle classes of South and Southeast Asia

> Undertaking global digital and creative agency tenders and selecting the agencies that best fit our needs

> Implementing the Business Events Bid Fund Program

> Developing beyond 2020 thinking.

Figure 3: Overview of Tourism Australia's 2018/19 strategy

Tourism Australia | 15

OUR TARGET CUSTOMERS In 2018/19, we continued to target two types of customers - leisure and business events.

The leisure consumers we target are predisposed to long-haul travel; are considering visiting or intend to visit Australia; are interested in Australia’s strengths as a destination; and are more likely to spend more, stay longer and travel more widely throughout the country. The move to a consolidated global target customer has enabled us to improve the targeting of our marketing activities - at the right time, with the right message.

Our business events customers are from two sectors - those travelling for international association events and those travelling for incentive trips. A differentiated marketing approach is used for each, focusing on messaging that resonates with the target customer in relevant channels.

OUR TARGET MARKETS In 2018/19 we continued to invest most of our effort and resources in a portfolio of priority markets that have the greatest potential for long-term visitor expenditure and growth to 2020 and beyond. Figure 4 indicates where we concentrated our marketing activity this year.

Our leisure marketing approach was via a framework that responds to the marketing challenge in each market and takes advantage of their forecast value by 2025. Markets have been reclassified on this basis as stars, solid deliverers, distribution focused and rising stars. There continued to be a heavy focus on the USA and China. During the year, our business events marketing approach remained unchanged. A summary of our market categories is provided in Table 4.

Upalinna Lookout, Skytrek Willow Springs Station, SA

16 | Annual Report 2018/19

Target markets and their value by 2025

Germany France Italy

North America Greater China

China Hong Kong

South Korea

Japan

New Zealand

USA

India

Singapore

Indonesia

United Kingdom

Malaysia

Canada

Europe

Worth more than

Incentive

Association

6b

Worth more than 2b

Market value by 2025

Worth more than 1.6b

Business events focus

Figure 4. Target markets and their value by 2025

Table 4. Market categories

2018/19 Market categories

Leisure marketing

Category Stars Solid deliverers Distribution focused Rising stars

Value by 2025 >$6 billion >$2 billion >$2 billion >$1.6 billion

Markets China, UK, USA Germany,

Hong Kong, Japan, Malaysia, Singapore

Canada, France, Italy, South Korea India, Indonesia

Business events marketing

Category Incentive Association

Markets Greater China, USA, New Zealand UK/Europe, USA

Target markets and their value by 2025

Tourism Australia | 17

2.0 2018/19 OV ERV I EW

Hot Air Ballooning, Yarra Valley, VIC

18 | Annual Report 2018/19

Tourism Australia | 19

Walk Into Luxury, Cape to Cape Track, Margaret River, WA

20 | Annual Report 2018/19

CHAIRMAN’S REPORT

Australian tourism continues to grow. For the ninth year in a row, international arrivals to Australia and the spending of those visitors has increased. With over nine million international visitors spending close to $45 billion, Australia continues to rank as the world’s highest yielding international destination, based on average spending per visitor.

We’re also making excellent progress on our Tourism 2020 strategy. This year we surpassed the lower $115 billion bound of our 2020 target and are on track to achieve more than $130 billion in total overnight tourism expenditure by decade’s end.

These are exceptional achievements and great news for the many thousands of tourism operators out there, most of whom are making a good living from a strong and sustainable industry. However, while international inbound tourism is growing, there is little doubt that this growth is moderating. We are seeing strong expansion from emerging markets such as India and Indonesia, but the situation is more challenging in some of our star markets.

China, for example, remains our largest and most valuable tourism market but is maturing. We are starting to see slower rates of growth, off a larger base compared to the peaks of 2015.

The global trend of international visitors taking shorter trips is something else we are seeing here in Australia. This is obviously a challenge for our industry, but one we are rising to meet through an unashamedly high yield strategy of targeting the high value traveller - and through bigger and bolder marketing campaigns designed to cut through in a competitive and cluttered marketplace.

We know from our research that Australia remains a hugely appealing destination.

We also know that for those people who visit, the experience exceeds their expectations and that they want to come back. If we target them effectively with the right products, experiences and itineraries we know they’ll return.

That’s why we are putting increased focus upon repeat visitation. Getting visitors to come back again and, when they do so, disperse further and do more. At the heart of this approach is highlighting more of the unusual and unexpected places and experiences that can be enjoyed in our country, through campaigns such as UnDiscover Australia and Too Australian for Words. A huge focus of these new campaigns is regional Australia, showing visitors a side of Australia they are less familiar with, and providing compelling new reasons to visit or come back.

Business Events is another big opportunity for our industry. International incentive visits, conventions and conferences are big business, with these visitors spending on average more than three times that of normal visitors - $5.7 billion in 2018/19, in fact.

A key highlight of 2018 was the introduction of our Business Events Bid Fund Program to help deliver more of these lucrative events. The fund is proving hugely successful, so far helping to deliver 20 events worth close to $253 million.

So, as we look forward to the coming year, we can expect challenge and opportunity in equal measure. Our industry is well placed to tackle both, and I look forward to the year ahead.

Bob East

EXECUTIVE REPORTS

Tourism Australia | 21

MANAGING DIRECTOR’S REPORT

In my foreword last year, I signalled a shift in Tourism Australia’s marketing towards taking a bigger and bolder approach to create greater impact for Australia.

Our first foray for this strategy was our Dundee campaign. Fast forward a year, and we’re seeing the noise and attention our Super Bowl ad generated start to translate into feet on the ground.

We extended the campaign in October 2018, with new creative featuring Luke Hemsworth urging Americans to explore Australia by visiting the Dundee ‘film-set’. Pleasingly, thousands of Americans accepted the invitation. The most recent tourism data reveals increases in both US visitor arrivals and spending.

If Dundee was about appealing to the iconic and well-known, our UnDiscover Australia campaign has deliberately taken a different approach. Initially targeting Malaysia, India, Indonesia and Singapore, we set out to challenge travellers’ perceptions and stereotypes of Australia by showcasing the unfamiliar, unusual and unexpected.

Yes, you can watch a game of cricket at the magnificent Adelaide Oval, but Undiscover Australia highlights the lesser known fact that you can also do an amazing rooftop climb of the stadium and enjoy spectacular 360-degree views of the city.

Since the campaign launch in September 2018, all four South-Southeast Asian markets have delivered increased arrivals. Our research has also tracked uplifts in intention to visit and desirability. And, crucially, Australia’s fashionability has risen amongst the high value traveller we are targeting in the region.

Off the back of this success, we’ve rolled out regional variations of UnDiscover Australia in the United Kingdom and Japan, as well as a similar campaign specifically tailored for the China market called Too Australian For Words. They are based on the same premise and focus on unique Australian experiences beyond the popular and already well-known tourism icons.

Through our campaigns, PR, media hosting and social media activities, we’re helping Australian tourism tell its story more powerfully than ever before.

Walk Into Luxury, Cape to Cape Track, Margaret River, WA

22 | Annual Report 2018/19

To support this campaign, we have expanded our Signature Experiences of Australia collectives, welcoming Cultural Attractions of Australia. It was interesting to see that out of the most requested meetings at this year’s Australian Tourism Exchange (ATE) event in Perth, five of these collectives featured in the top 20.

Another big highlight for this year has been our latest working holiday maker campaign, Australia Inc. This sector is not always considered high value, but it’s worth reflecting that the average working holiday maker to Australia stays 151 nights and spends $10,300 per trip.

Australia Inc. addresses a recent downward trend in the overall number of working holiday makers coming to Australia. The campaign targets the UK, Germany and France, showing these young Europeans that a working holiday in Australia not only offers a life changing experience, but also the opportunity to improve life skills and employability afterwards.

Business Events also play a critical part in telling the story of Australia to the high value traveller. This year our Bid Fund has performed exceptionally well, helping secure $253 million in new business for the country.

Through our campaigns, PR, media hosting and social media activities, we’re helping Australian tourism tell its story more powerfully than ever before. But it’s not just about great marketing. It’s about driving the right strategy and providing real return on investment for industry and our commercial partners. I believe we are doing this. The energy amongst both sellers and buyers at ATE19 in Perth was terrific. Recognising that we can’t rest on our laurels, we made a few changes to the format this year and I’m pleased to say the feedback was incredibly positive.

One of the things I love most about this job is being part of the Tourism Australia team as we get out and about around the country, talking to operators at our industry briefings, events and even the board meetings we take out into the regions. The industry contributes to almost everything we do, and it’s critically important that we engage, listen and act upon their valuable input.

We took our annual Destination Australia conference to Howard Smith Wharves in Brisbane this year, and it was one of our best events ever. The event has come a long way and we will continue to use this gathering to challenge ourselves and our industry to keep innovating and improving.

This is my final Managing Director’s report before I step down after five wonderful years at Tourism Australia. I’d like to acknowledge Australia’s Tourism Minister, Senator the Hon. Simon Birmingham, Chairman Bob East and the rest of the Tourism Australia Board for their support and guidance. I’d also like to thank the broader team at Tourism Australia, who have been a pleasure to lead. But most of all I would like to acknowledge and thank our industry that, day in, day out, sell this wonderful country to the rest of the world.

The organisation is performing well. I believe we have the right strategy and direction to maintain the strong momentum of recent years and continue to take the industry forward.

Thank you, it’s been a privilege to serve.

John O’Sullivan

Tourism Australia | 23

ANNUAL PERFORMANCE STATEMENT

INTRODUCTORY STATEMENT I, Bob East, as the accountable authority for Tourism Australia, present the 2018/19 Annual Performance Statement for Tourism Australia, as required under section 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (Cth) (PGPA Act). In my opinion, this Annual Performance Statement is based on properly maintained records, accurately reflects the performance of the entity and complies with section 39(2) of the PGPA Act.

ENTITY PURPOSE To grow demand and foster a competitive and sustainable Australian tourism industry through partnership marketing to targeted global consumers in key markets.

RESULTS - GROW DEMAND

PROGRAM 1: GROW DEMAND FOR AUSTRALIA AS A TOURISM DESTINATION

Objective: Identify and target best-prospect consumers, inspire them to travel to Australia; and to spend more and travel widely throughout Australia.

CRITERION SOURCE Portfolio Budget Statements 2018-19; Budget Related Paper No. 1.8, Foreign Affairs and Trade Portfolio (page 150); and Tourism Australia Corporate Plan 2018 to 2022 (page 30).

Scenic Rim Trail by Spicers, Spicers Peak Lodge, Main Range National Park, QLD

24 | Annual Report 2018/19

Performance criterion and results

Key performance indicator Actual 2017/18 Goal 2018/19 Actual 2018/19a

Visitor spend and arrivals At 30 Jun ‘18 At 30 Jun ‘19 At 30 Jun ‘19

Overnight tourism expenditureb $110 b

(+7%)

$115.5 b (+6%)

$121.1 b (+11%) •

International tourism expenditureb $42.5 b

(+5%)

$44.9 b (+5.5%)

$44.6 b (+5%) •

Total expenditure from Tourism Australia target marketsb c

$34.0 b (+5%)

$36.1 b (+5.5%)

$35.6 b (+5%) •

Leisure expenditure from Tourism Australia target marketsb c

$18.8 b (+5%)

$19.6 b (+5.5%)

$19.5 b (+4%) •

Business Events expenditure from Tourism Australia target marketsb

$2.4 b (+26%) d

$2.5 b (+4%)

$2.3b (-4%) •

International tourism visitorse 9.1 m

(+6%)

9.7 m (+6.5%)

9.3 m (+3%) •

Marketing effectiveness

Earned advertising value (EAV)f $259 m

(-8%)

$250 m (-3%)

$285 m (+10%) •

Total unique visitors to Tourism Australia websitesg

36.5 m (+11%)

34 m (-7%)

28 m (-23%) •

Destination brand - consumers considering Australia as a destinationh

37% 40% 36%

•

Destination NPS - visitors recommend Australiai

43 45 43

•

a Percentage change based on year on year actuals b Data source - Tourism Research Australia, International Visitor Survey (June 2019) c Target markets comprise: Leisure: Stars (China, UK, USA), Solid Deliverers (Germany, Hong Kong, Japan, Malaysia, Singapore), Distribution Focused (Canada, France, Italy, Sth Korea), Rising Stars (India Indonesia). Business Events: Greater China, USA, New Zealand, UK/Europe

d For December 2014 to March 2017, visitor expenditure results were modelled on International Visitor Survey ‘business’ purpose, with the guidance of Tourism Research Australia. The FY18 result is a composite of this modelling and data gathered since March 2017 when a specific question on the business events purpose was reintroduced into the International Visitor Survey (“Have you attended a business event?”)

e Data source - Australian Bureau of Statistics, Overseas Arrivals and Departures (June 2019) f Data source - internal tracking across Tourism Australia’s public relations channels at 30 June 2019 g Data source - internal tracking across Tourism Australia’s data channels or as part of data-sharing with partners at 30 June 2019 (explanation regarding the reduction in this metric is provided on pages 27 and 59)

h Data source - Tourism Australia, Quarterly Brand Tracking at 30 June 2019 I Data source - Tourism Australia, Consumer Demand Project at 30 June 2019

Table 5. Grow demand - performance criterion and results [where performance = achieved target within 5% of target below target]

Tourism Australia | 25

ANALYSIS OF PERFORMANCE AGAINST CRITERIA

Our activity was driven by ambitious goals, with spend performance within 5 per cent of goals for leisure spend metrics. A slowing global economy and impacts on consumer and business confidence 16 affected performance along with the trend of international visitors taking shorter trips. From an aviation perspective, increased jet fuel prices have impacted airfare prices; there has also been limited aviation capacity growth in key markets, with a consolidation of capacity from China and the Middle East and limited growth from India and Indonesia. Nevertheless, forecasts indicate visitor spend will reach $134 billion by 2020,17 well within the Tourism 2020 strategy’s goal range of $115 billion to $140 billion.

VISITOR SPEND AND ARRIVALS The following year on year performance was achieved:

> Overnight tourism expenditure - up 11 per cent to $121.1 billion

> International tourism expenditure - up 5 per cent to $44.6 billion

> Total international expenditure from target markets - up 5 per cent to $35.6 billion

> International expenditure by leisure visitors from target markets - up 4 per cent to $19.5 billion

> International expenditure by business events visitors from target markets - down 4 per cent to $2.3 billion

> International tourism visitors - up 3 per cent to 9.3 million.

At year ending June 2019, year on year performance was mixed across key markets. Spend by visitors from Star markets was impacted by uncertainties around Brexit and trade disputes between China and the USA. In the UK, spend remained soft (down 3 per cent), with industry reporting declining consumer sentiment and slow bookings due to the unstable economic environment. In China, growth was solid (up 6 per cent), with a conservative outlook for 2019 given slower consumer demand. In the USA, indicators were positive (up 9 per cent), with industry reporting increased bookings for Australia and cautious optimism for the rest of 2019 following regulatory approval for arrangements between Qantas and American Airlines in June 2019.

Spend performance across solid deliverer and distribution focused markets also varied, with strong performance from Japan (up 16 per cent), Singapore (up 8 per cent) and Canada (up 6 per cent), reflecting the positive momentum created by increased aviation capacity. Performance improved from Hong Kong (up 6 per cent) and France (up 5 per cent); but was soft from Germany (down 3 per cent), Malaysia (down 4 per cent), and South Korea (down 12 per cent). In Germany, a soft youth market is affecting overall performance as the working holiday market is impacted by the country’s high youth employment levels. In Hong Kong, political unrest is dampening overall outbound travel; while in South Korea, declining GDP and a softening economy is impacting consumer confidence and subsequent travel.

Rising star markets continued to perform well, with India achieving its sixth consecutive year of double-digit growth (up 17 per cent) and Indonesia also continuing to grow (up 5 per cent), with positive forward bookings.

Great Walks of Australia - Bay of Fires Lodge Walk, TAS

26 | Annual Report 2018/19

Marketing effectiveness measures indicated that we performed well.

Equivalent advertising value (EAV) of $285 million was achieved at 30 June 2019, up 10 per cent year on year. Highlights included our International Media Hosting Program (which delivered 172 visits, resulting in 2,205 articles with EAV of $138 million), and in-market media relations that resulted in 4,472 articles valued at $89 million. Public relations activity across our key campaigns - UnDiscover Australia, Too Australian for Words, Australia Inc and Visit the set of Dundee: Son of a Legend - delivered $17 million in EAV. Actor Chris Hemsworth also continued as our campaign ambassador. His appearances generated solid media coverage, with EAV of $26 million, and his social media posts were regularly viewed by millions of people around the globe.

At the year ending 30 June 2019, there were 28 million unique visitors to our websites - a year on year decrease of 23 per cent. This decrease was the result of a shift in media strategy with australia.com and australia.cn no longer the primary call to action for digital advertising. Rather, consumers were driven directly to partner sites or encouraged to stay within platforms such as Facebook and Weibo. This change in strategy resulted in growth in Tourism Australia’s fans in these other digital channels. At 30 June 2019, our total social media community grew to more than 15.7 million people (up 11 per cent year on year) across Facebook, Instagram, Twitter, WeChat and Weibo.

During 2018/19, we continued our quarterly brand tracking research, heightening consumer insights that helped inform and improve marketing activity in key markets. The purpose of this research is to provide a holistic picture of how Australia’s destination brand is perceived and to assess the impact of our advertising and communications. The research is conducted in

11 international markets through an online survey. Countries where the research is undertaken include China, Germany, Indonesia, India, Japan, Malaysia, New Zealand, Singapore, South Korea, the UK and the USA.

It is through this research that we track ‘Destination brand - consumers considering Australia as a destination’ and ‘Destination NPS - visitors recommend Australia’. At 30 June 2019, 36 per cent of target consumers responded that they were considering Australia as a destination, in line with 2017/18 results. Given the increasingly competitive tourism category, this is a strong result. Annual results for Destination NPS were on par with 2017/18.

In September 2018, we launched the UnDiscover Australia campaign in South and Southeast Asia, our single largest campaign in this region to date. This campaign generated significant interest, ‘turning the dial’ on the perception of Australia as a tourism destination to increase fashionability and desirability. For example, in Indonesia, Australia’s ‘desirability’ ranking as a destination compared with competitors improved from fifth to second, whilst in Singapore, our fashionability improved from fourth to third.18

MARKETING EFFECTIVENESS

Tourism Australia | 27

PROGRAM 2: INDUSTRY DEVELOPMENT

Objective: An Australian tourism industry that is competitive and sustainable and delivers on the needs of the target customer.

CRITERION SOURCE Portfolio Budget Statements 2018-19; Budget Related Paper No. 1.8, Foreign Affairs and Trade Portfolio (page 151); and Tourism Australia Corporate Plan 2018-22 (page 30).

RESULTS - INDUSTRY DEVELOPMENT

Performance criterion and results

Key performance indicator

Actual 2017/18

Goal

2018/19

Actual 2018/19

Stakeholder satisfaction

Stakeholders indicate Tourism Australia adds value to their business (‘excellent’, ‘very good’ or ‘good’ value)19 98% >90% 93% •

Stakeholder Net Promoter Score - stakeholders recommend working with Tourism Australia 40 45 48 •

Table 6. Industry development - performance criterion and results

Cape Byron Lighthouse, Byron Bay, NSW

[where performance = achieved target within 5% of target below target]

28 | Annual Report 2018/19

ANALYSIS OF PERFORMANCE AGAINST CRITERIA We delivered solid stakeholder satisfaction goals in 2018/19, reflecting our emphasis on delivering commercial value to our stakeholders and partners, and fostering a culture of continual improvement. Our performance in this area is measured by stakeholder surveys, which are completed at key events during the year, as well as through an annual industry satisfaction survey.

As a partnership marketing organisation, we continued to work with tourism businesses, and state and territory tourism organisations (STOs) to align all marketing initiatives. We also worked with industry organisations such as airlines and key distribution partners to develop and build their capacity to sell Australian tourism experiences to target consumers.

Koala at Hanson Bay Wildlife Sanctuary, Kangaroo Island, SA

ANALYSIS OF PERFORMANCE AGAINST PURPOSE We are performing well against our stated purpose - to grow demand and foster a competitive and sustainable Australian tourism industry through partnership marketing to targeted global consumers. As a result, the industry is on track to achieve the Tourism 2020 goal of between $115 billion and $140 billion in overnight visitor spend by 2020. Forecasts20 indicate overnight visitor spend will reach $134 billion by 2020.

The following highlights contributed to these results:

> There’s nothing like Australia : We continued to deliver campaign activities focusing on Australia’s unique tourism experiences, which were seen by consumers in more than 130 countries across the globe. This included the launch of UnDiscover Australia across South and Southeast Asia, Japan and the UK, and its iteration for China, Too Australian for Words. We continued the momentum of Dundee in North America, with the second phase of the campaign, Visit the set of Dundee: Son of a Legend. We introduced a new working holiday maker campaign, Australia Inc, that ran across the UK and Continental Europe.

> Creative and digital agencies: With the terms of incumbent creative agency, Clemenger BBDO and digital agency DT, coming to an end, a dedicated tender process was undertaken to select new agencies. In December 2018, M&C Saatchi was appointed as our new creative agency and Digitas and ASAP+ were appointed as our new digital agencies. They have been contracted under an arrangement that will initially run for three years, with an option to extend for two further periods of 12 months.

> Business Events Bid Fund Program: In an increasingly crowded business events marketplace, the Business Events Bid Fund Program provides Australia with a competitive advantage by providing support for marketing an event once it is confirmed and contracted to be held in Australia. In 2018/19, we assisted with the delivery of 20 events valued at $253 million to Australia’s economy.

Tourism Australia | 29

> Digital marketing and social media: A major focus of our digital marketing activity was our Digital Customer Experience Strategy. This included appointment of new digital technology partners to assist in defining our vision. We also continued to refine and upgrade our marketing technology platforms, and improve processes for content translation, maintenance and personalisation based on user behaviour. Our social media activities continued to generate awareness and stimulate conversations about Australia, providing a platform for highlighting Australia’s incredible stories and world-class experiences.

> Partnerships: In 2018/19, we worked with more than 250 tourism industry and other partners, which contributed $52 million in revenue. This enabled us to extend the reach of campaigns through bought media and our partners’ marketing channels. Partners also provided an important link to booking channels for consumers, allowing us to convert the demand our campaigns generated.

> Distribution: We continued to work in partnership with STOs and industry to deliver programs and platforms to enhance the knowledge of travel sellers and connect Australian tourism businesses with international distributors. This included the expansion of our Signature Experiences of Australia program with the introduction of Cultural Attractions of Australia; dedicated activity targeting very high value Premium travellers; training more than 34,000 frontline travel sellers (up 6 per cent year on year) through our Aussie Specialist Program; and delivery of a range of trade events in Australia and internationally that connected buyers of Australian tourism products with sellers. Our premier trade event, the Australian Tourism Exchange, was held in Perth, attracting more than 2,200 delegates that directly injected $9 million into Western Australia’s economy.

> Industry engagement: We continued to deliver a program of activities to keep the Australian tourism industry up to date on the latest tourism news, research, insights and marketing tools. This included industry briefings, webinars, newsletters and the Destination Australia conference. These activities build awareness and understanding of our strategic marketing initiatives and allow

the industry to tap into opportunities to boost business and deliver quality tourism experiences to international travellers.

> Governance: Tourism Australia maintained a robust governance framework in 2018/19, with no major audit findings. Tourism Australia has a comprehensive internal audit program. Audit topics this year included Code of Conduct, Bid Fund Program, Work Health and Safety, Transactions, China Operations, Digital Strategy and Gifts and Benefits. Minor recommendations and improvement opportunities were identified in these reviews. Actions have been taken to implement all recommendations made.

> Investment attraction and aviation route development: We continued to work in partnership with Austrade to develop the tourism investment opportunity for Australia, with an emphasis on investment into iconic regional locations across Australia. Activities included development of a suite of online tools to showcase the Australian tourism business case, and participation at key investment forums such as the Hotel Investment Conference Asia Pacific in Hong Kong. Work with airports and STOs also continued, supporting the implementation of new aviation routes from key source markets including Hong Kong, Japan, South Korea and the USA.21

> Employees: Our overall employee engagement score was 90 per cent in 2019 (down 2 per cent year on year), with 89 per cent participation (one of the highest levels to date). Since launch of the survey in 2015, scores have ranged between 84 per cent to 92 per cent. While staff engagement scores remained high, our Net Promoter Score (NPS) dropped marginally from +33 to +23, although it remains very much in positive territory. Reasons identified for the positive score are the great culture, our brand and reputation, good working environment and talented people. Tourism Australia’s gender diversity was ahead of Australian Government benchmarks - 50 per cent of our non-executive directors were female, 67 per cent of the Executive Leadership team were female and 70 per cent of the organisation was female.

30 | Annual Report 2018/19

Hill Inlet, Whitsunday Island, QLD

Tourism Australia | 31

HIGHLIGHTS

JULY 2018

Destination Australia ‘take-over’ of Singapore’s largest MRT station

90 Inbound Tour Operators attend our inaugural Inbound Workshop in Sydney

Our creative services and digital tender processes begin

HotelsWorld is held in Sydney and includes a meeting of our investment advisory group

Our China team launches a social media campaign targeting Qdaily’s 5.6 million daily users

AUGUST 2018

A new platform for German consumers is launched on australia.com

We promote Australia’s premium tourism experiences to 6,000 delegates at Virtuoso Travel Week, Las Vegas

Our 16th India Travel Mission brings together Australian travel sellers with Indian buyers

Senator the Hon Simon Birmingham is named Minister for Trade, Tourism and Investment

We host Corroboree Asia on the Gold Coast. Tourism operators meet with Aussie Specialist agents from across Asia

SEPTEMBER 2018

Senator the Hon. Simon Birmingham launches UnDiscover Australia in Jakarta, challenging stereotypes of an Australian holiday amongst South and Southeast Asian consumers

Signature Experiences of Australia collectives host an event for the high-end travel trade at Australia House in London

In Hong Kong, we showcase Eyre Peninsula produce with a cooking demonstration by chef Kris Bunder

We lead our largest-ever contingent of Youth operators to WYSTC (Edinburgh) and host roadshows through Germany and the UK

We kick off our co-operative campaign with Virgin Australia, promoting new Hong Kong-Sydney daily services

a Chairman Bob East at HotelsWorld b Famil for Corroboree Asia delegates, Gold Coast, QLD c Senator the Hon. Simon Birmingham launches UnDiscover Australia

a b c

32 | Annual Report 2018/19

OCTOBER 2018

We lead a delegation of BCA Bank Indonesia executives and media on an educational famil through Western Australia

Lin Yanjun of boy band Nine Percent visits Queensland; his Weibo posts reach over 270 million followers in China

Visit the set of Dundee: Son of a legend launches in the USA across NBC channels and our social media platforms

Our Aussie Specialist Ambassador Program begins, inviting agents to become their region’s Aussie Specialist Ambassador

Our Chair, Bob East, hosts a VIP investor lunch at the Hotel Investment Conference Asia Pacific in Hong Kong

NOVEMBER 2018

We join Austrade and DFAT to represent Australia at the China International Import Expo

Our new promotion with Ctrip goes live in China, profiling family fun, premium experiences and offers

The Distance Between drama launches in Southeast Asia, featuring Australia's regional destinations and bookable packages

We represent Australia at WTM, the largest B2B travel event in the UK

Industry briefings are held across states and territories, updating industry on our campaigns

We host 600 frontline travel sellers for an Aussie Specialist Program mega training session in Wuhan, China

We launch UnDiscover Australia in Japan with Qantas, profiling destinations beyond their gateway cities

DECEMBER 2018

M&C Saatchi is appointed to manage our global creative services and Digitas is appointed to our global digital account

Indian cricketer, Shikhar Dhawan shares his tour of Sydney Harbour with his 11 million social media followers

We host our Greater China Showcase in Melbourne. Business events buyers and media from China and Hong Kong meet with Australian industry to do business and participate in educationals

d Aussie Specialist Ambassador Program launch, Shanghai, China e Australia stand at the China International Import Expo, Shanghai f Delegates at Greater China Showcase, Melbourne, VIC

d e f

Tourism Australia | 33

JANUARY 2019

Our campaigns with Etihad kick off in the UK, Germany, France and Italy, during a key booking period for consumers in these countries

We host a Destination Australia showcase and training session for Italian trade in Turin

G’Day USA events are held in the USA

FEBRUARY 2019

We host our Spring Festival Lunch, bringing together China-focused ITOs, ATEC, airlines and states and territories

Over 7 million Indian fans follow actress, Parineeti Chopra’s travel experiences in regional Australia

Australia with Julia Bradbury airs in the UK on ITV1 to an audience of over 2 million viewers

We host a Product Development Forum for Aussie Specialist Agents in Indonesia

We host Australian sellers and Japanese buyers at Walkabout Japan, our premier trade event in Japan

MARCH 2019

We host the Australia stand at the world’s leading tourism show, ITB Berlin

Our 25 Million Mates campaign runs in the UK, promoting the friendly and welcoming Aussie personality

The Too Australian for words campaign kicks off in China

Our marketing conference, Destination Australia, is held in Brisbane

We welcome new Friends of Australia, Vogue China editor Angelica Cheung and chef Craig Willis

Chris Hemsworth’s ‘Quokka Selfie’ generates 8 million views

We host a famil for key Canadian media promoting Air Canada’s Vancouver-Melbourne flight

Our Industry Relations team deliver industry roadshows in Far North Queensland and the Northern Territory

g h i

g G'Day USA Gala dinner, Los Angeles, USA h Actress Parineeti Chopra in Brisbane, QLD i Chris Hemsworth's quokka selfie

HIGHLIGHTS

34 | Annual Report 2018/19

APRIL 2019

The Australian Tourism Exchange, the largest travel trade event in the southern hemisphere, is held in Perth

Travel like a local Aussie screens in Malaysia, featuring UnDiscover Australia experiences

Our working holiday maker campaign, Australia Inc., launches across the UK and Continental Europe

In North America, we launch a campaign with TripAdvisor, leveraging interest from our Dundee campaign

We host journalists from Singapore’s The Straits Times, profiling Qantas’ new Darwin to Uluru route

MAY 2019

Our joint marketing campaign with DERpart launches in Germany

Our industry relations team join Sunshine Coast operators for workshops and a famil in Noosa

Chinese actor Duan Yihong visits Tasmania, sharing trip highlights with his 4.8 million Weibo followers

We host a famil for premium travel agents from China, showcasing Australia’s high-end regional experiences

Inspirations Australiennes launches, inviting French travellers to take their next holiday in Australia

We host Discover Aboriginal Experiences' first famil in China

JUNE 2019

Our campaign with Virgin Australia invites North Americans to go behind the scenes and ‘Visit the set of Dundee’

Product planners from Malaysia and Singapore participate in the ‘UnDiscover the best of NT’ famil

In Japan, we launch our campaign with All Nippon Airways and Tourism WA, promoting new Tokyo-Perth direct flights

j k l

j Delegates at ATE19, Perth, WA k Famil for premium travel agents from China l Our campaign with ANA in Japan

Tourism Australia | 35

CANADA USA FRANCE ITALY INDIA SINGAPORE MALAYSIA

UNITED KINGDOM GERMANY CHINA

NEW ZEALAND

INDONESIA

HONG KONG

JAPAN

SOUTH KOREA

190,300 +10%

$0.9bn +6%

811,900 +3%

$4bn +9%

145,500 +8%

$0.8bn +5%

78,200 +5%

$0.5bn +3%

372,100 +11%

$1.8bn +17%

464,700 +7%

$1.5bn +8%

389,300 -1%

$1.3bn -4%

718,600 -3%

$3.4bn -3%

208,100 0%

$1.2bn -3%

1,432,800 +1%

$11.9bn +6%

1,407,200 +3%

$2.6bn +1%

214,700 +5%

$0.8bn +5%

309,500 +4%

$1.4bn +6%

484,300 +10%

$2bn +16%

280,700 -8%

$1.5bn -12%

VISITOR NUMBERS AND SPEND

Figure 5: Visitor numbers and spend in Australia at 30 June 2019

Arrivals: Australia Bureau of Statistics, Overseas Arrivals and Departures

Spend: Tourism Research Australia, International Visitor Survey

36 | Annual Report 2018/19

CANADA USA FRANCE ITALY INDIA SINGAPORE MALAYSIA

UNITED KINGDOM GERMANY CHINA

NEW ZEALAND

INDONESIA

HONG KONG

JAPAN

SOUTH KOREA

190,300 +10%

$0.9bn +6%

811,900 +3%

$4bn +9%

145,500 +8%

$0.8bn +5%

78,200 +5%

$0.5bn +3%

372,100 +11%

$1.8bn +17%

464,700 +7%

$1.5bn +8%

389,300 -1%

$1.3bn -4%

718,600 -3%

$3.4bn -3%

208,100 0%

$1.2bn -3%

1,432,800 +1%

$11.9bn +6%

1,407,200 +3%

$2.6bn +1%

214,700 +5%

$0.8bn +5%

309,500 +4%

$1.4bn +6%

484,300 +10%

$2bn +16%

280,700 -8%

$1.5bn -12%

Tourism Australia | 37

AWARDS

Consumer and trade marketing

UK Distribution and Trade team awarded ‘Star Online Training Course’ for the Aussie Specialist program Travel Bulletin’s 2018 Star Awards

The USA team received gold awards for the Aussie Specialist Program and for the Dundee marketing campaign Travel Weekly Magellan Awards

‘Ad Campaign of the Year’ (For Dundee) ‘Social Idea of the Year’ (for Aussie News Today)

Mumbrella Awards

Titanium Lion Award and two Gold Lion Awards for Dundee Gold and Bronze Award for Aussie News Today Cannes Lions International Festival of Creativity

‘Best Youth Marketing Campaign’ for Aussie News Today Global Youth Travel Awards

Lisa Ronson awarded ‘CMO of the Year’ Tourism Australia awarded ‘Marketing Team of the Year’ Dundee campaign awarded ‘Campaign of the Year’

Australian Institute of Marketing

Lisa Ronson awarded ‘Australia’s Best CMO’ CMO Magazine

‘Best Overseas Meeting and Incentive Destination of the Year (Long Haul)’ Award China Travel and Meeting Industry Awards 2018

‘Best PR Campaign’ for Dundee B&T Awards

Australia won ‘Most Popular Tourist Destination’ in Asia 2018 Red Coral Awards

Dundee campaign awarded Gold Effie for Media Gold Effie for Branded Content Gold Effie in Tourism and Travel Category

US Effie Awards

‘Best use of Content’ awarded for the Dundee campaign Festival of Media (Global)

Dundee campaign: Gold award ‘Integrated: Large Business’ Silver award ‘Media: Best Use of Branded Content’

‘Media: Best Use of Integrated’ ‘Branded Content and Entertainment: Fiction Film up to 5 Minutes’ Bronze award ‘Digital Marketing: Best Use of Talent and Influencers’ ‘Digital Marketing: Integrated Digital Campaigns’ ‘Digital Marketing: Best Use of Social Media’

D&AD Awards (British Design & Art Direction)

Dundee campaign awarded ‘Destination Campaign of the Year’ Expedia North America

‘Best travel advertisement’ for Dundee Travel Video Awards, USA

Awards won by Tourism Australia in 2018/19 are listed in the table below.

38 | Annual Report 2018/19

Consumer and trade marketing

‘Most influential campaign on YouTube’ for Dundee YouTube Works Awards, USA

‘Marketing Excellence for International Tourism’ for UnDiscover Australia VFS Global Times Travel Awards, India

Winner of the ‘Influencer Impact’ award for Dundee PR Week Awards, USA

Titanium winner ‘Effective Channel Integration’ for Dundee WARC Media Awards

Platinum winner ‘Integrated Marketing Communications’ for Dundee HSMAI Adrian Awards

Dundee campaign awarded ‘Excellence in Managing Optimised Customer Experience’ ‘Excellence in Content Marketing and Velocity’ ‘Excellence in Business Impact through Optimisation’

Adobe Excellence Awards, USA

‘Best Use of Social’ for Dundee AdWeek Media Plan of the Year

‘Best Use of native or content marketing’ for Aussie News Today Mumbrella Travel Marketing Awards

Dundee: Australia’s Tourism Ad in Disguise awarded ‘Most Popular Television Commercial’ Logie Award

UK team awarded ‘Tourism Board of the Year’ Globe Travel Awards 2019

Aussie Specialist Team Germany awarded runner up in the ‘Best Travel Trade Service’ category Globus Awards

Tourism Australia’s education program for Virtuoso in the USA was recognised as ‘The Most Comprehensive Advisor Program’ Virtuoso Travel Week

Aussie Specialist Program awarded the ‘Education Product’ gold award AMY Awards

‘Best Foreign Destination’ South Asia Travel and Tourism

Exchange (SATTE) 2019, India

‘Best Destination Asia/Pacific’ Travel Weekly Readers’ Choice

Awards, USA

‘Best Destination Overall’ 2019 Travvy Awards, USA

Tourism Australia | 39

Wrightsair Scenic Flight, Painted Hills, Anna Creek Station, SA

40 | Annual Report 2018/19

Corporate

Tourism Australia was named 23rd in Australia and New Zealand's Top 100 Innovative companies The Australian Financial Review

Tourism Australia 2018 Annual Report Silver Award Australasian Reporting Awards

Table 7. Tourism Australia’s awards 2018/19

Business events marketing

‘Best Overseas NTO in China promoting BT-MICE’ TTG China Travel Awards 2019, China

‘Best NTO for Promoting MICE of the Year 2018’ China BT MICE Award

‘Best NTO promoting MICE’ ‘Best MICE Creative Marketing Campaign Award’ China National Tourism Fashion Awards

Tourism Australia | 41

3.0 M A RK E TI N G PERF O R M A N CE

Poornarti Aboriginal Tours, WA

42 | Annual Report 2018/19

Tourism Australia | 43

GROW DEMAND

Objective: Identify and target best-prospect consumers and inspire them to travel to Australia. To focus activities and resources, utilise a dedicated market categorisation approach. (Source: Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.8 Foreign Affairs and Trade Portfolio, p 150.)

KEY ACHIEVEMENTS > Delivering marketing campaigns across 15 markets.

> Integrating over 250 partners in co-operative marketing campaigns that helped deliver $52 million in partnership marketing revenue.

> ‘Turning the dial’ by challenging perceptions of Australia, showcasing our hidden gems through the UnDiscover Australia campaign, and increasing Australia's fashionability as a destination of choice.

> Generating more than 16,000 pieces of content via our public relations, media and influencer-hosting activities that had an equivalent advertising value of $285 million.

> Global Ambassador, Chris Hemsworth continued to drive considerable interest in Australia as a holiday destination, generating 6,204 media articles, with an equivalent advertising value of $26 million.

> Attracting 18.7 million unique visitors to australia.com (down 5 per cent year on year), with the reduction in visitors resulting from a change in strategy to push communications through partner sites where consumers can ‘take the next step’ to book a holiday to Australia.

> Increasing social media followers across Facebook, Twitter, Instagram, Weibo and WeChat from 14.08 million in 2017/18 to 15.73 million - up 12 per cent year on year.

> Launching Australia Inc., a dedicated marketing campaign to attract more working holiday makers and youth travellers to Australia.

> Appointing new creative and digital agencies (M&C Saatchi, Digitas and ASAP+).

> Working with industry to promote quality Australian experiences. This included marketing under the Signature Experiences of Australia program.

> Delivering the Consumer Demand Project in partnership with STOs, which provides a shared foundation from which to develop future campaigns. The research was also used to inform the tourism industry about potential opportunities to build the value of Australian tourism.

PERFORMANCE OVERVIEW Overall result: Performing well. Key deliverables achieved.

44 | Annual Report 2018/19

THERE’S NOTHING LIKE AUSTRALIA In 2018/19, we continued to promote marketing communications under the There’s nothing like Australia campaign umbrella, highlighting the best attractions and experiences Australia has to offer and inviting target consumers to ‘experience the Australian way of life’. Marketing activities were undertaken across multiple channels to inspire consumers to visit Australia and included partnership activity with state and territory tourism organisations (STOs) and commercial partners. Campaign activity spanned social media, content and storytelling, Tourism Australia websites (australia.com and australia.cn), brand advertising, public relations, promotions, events and advocacy programs.

Seal Bay Conservation Park, Kangaroo Island, SA

Tourism Australia | 45

UNDISCOVER AUSTRALIA In September 2018, we launched the UnDiscover Australia campaign. This is our largest campaign in South and Southeast Asia to date, aimed at tapping

into the region’s huge emerging middle class. The campaign challenges perceptions and stereotypes of what Australia offers the region’s travellers as a tourism destination, and targets high value travellers

in India, Singapore, Malaysia and Indonesia by showcasing unfamiliar and unexpected attractions and experiences.

With fashionability a big part of destination choice, the campaign was devised to challenge consumer perception in these markets, driven by the key insight that there is much more to Australia than the typical stereotypes of koalas, kangaroos, the outback and well-

known icons such as Sydney Opera House and Uluru.22

The experiences showcased in the campaign included some of Australia’s hidden gems - like going beyond watching a cricket game at the Adelaide Oval by climbing the stadium’s roof and taking in 360-degree

views of the city skyline at sunset. Or going beyond visiting Uluru on a tour - through immersion in Bruce Munro’s outdoor ‘Field of Light’ exhibition of 50,000 solar powered illuminated flower stems. In short, Australia’s more unexpected experiences took centre stage to improve associations of Australia as ‘fashionable’ and ‘cool’ and to bridge the gap between

intention to visit and actual visitation by heightening understanding of Australia’s quality tourism experiences.

To tap into the region’s huge emerging middle class, improving aviation capacity and competitive airfares, the campaign was undertaken in partnership with STOs and was supported by an ‘airline marketplace’ in each country. These brought together airlines and online travel agents to offer competitive fares

that promoted the campaign and provided an easy transition to convert interest into bookings. The promotion also included a solid PR and advocacy program, key distribution partner campaigns and airline partnership activity.

With the industry reporting overall positive results and brand tracking showing it was ‘moving the dial’ (see summary in table 8 from Tourism Australia's Quarterly Brand Tracker) we grasped the positive momentum and rolled out the campaign in other relevant markets,

including the UK, China, Japan and Germany.

In the UK, Tourism Australia and Singapore Airlines launched a cooperative UnDiscover Australia campaign across digital, social and print. It was aimed at re-energising British high value travellers’ perceptions of Australia by providing compelling new reasons to

visit. The campaign featured an interactive lightbox with video content and a planning tool that served up itinerary suggestions to dispel UK travellers’ belief that they need more than two weeks to enjoy a holiday in Australia. Two-week UnDiscover Australia packages promoted Singapore Airlines’ nine Australian gateways,

bookable through our key distribution partner, Trailfinders. The campaign delivered strong results, exceeding bookings and sales targets.

“We are glad to have partnered with Tourism Australia for the UnDiscover Australia campaign which helped us popularise Australian destinations beyond the usual favourites of MakeMyTrip consumers. We were encouraged to see the interest generated by Signature Walks, particularly amongst couples. We can also ascribe the renewed interest in the Great Barrier Reef, and increase in queries for destinations like Perth and

Brisbane, to the UnDiscover Australia campaign.”

Deepak Rawat, Senior Vice President - Holidays Product & International Markets, MakeMyTrip.com

CAMPAIGN HIGHLIGHTS

46 | Annual Report 2018/19

UnDiscover Australia campaign results, South and South-East Asia

Desirability Fashionability

Indonesia Up (from #5 to #2) Up (from #3 to #2)

Singapore Maintained (#2) Up (from #4 to #3)

Malaysia Maintained (#2) Maintained (#3)

India Maintained (#1) Maintained (#2)

Table 8. UnDiscover Australia campaign results

In Germany, we further extended the campaign in cooperation with Singapore Airlines, Tourism Northern Territory and Tourism Western Australia. Showcasing unique experiences, the campaign challenged

stereotypes associated with Australia through digital out-of-home and display media including video, social and mobile advertising. Adventure bloggers from Off the Path also travelled to the Northern Territory promoting the campaign.

In China we launched the campaign Too Australian for Words, based on the same creative insight as UnDiscover Australia but adapted to appeal to the Chinese high value traveller. Like the UnDiscover Australia campaign, the objective was to increase awareness and create excitement about unique

experiences beyond Australia’s icons. Activity featured in out-of-home channels, digital and social media and on travel website Mafengwo. The campaign performed well, exceeding targets.

Examples of UnDiscover Australia advertisements

Tourism Australia | 47

Recent data shows accelerated growth from the USA, and forward bookings are positive.

48 | Annual Report 2018/19

VISIT THE SET OF DUNDEE: SON OF A LEGEND The USA is a significant market for Australian tourism, ranked second in terms of expenditure and third for visitor arrivals. While awareness of Australia as a tourism destination is improving among Americans, conversion is relatively low. To counter this, we launched Dundee: The Son of a Legend Returns Home in February 2018. One of our most daring to date, the campaign disguised as a big-budget Hollywood remake, was designed to catch the attention of Americans who watch the Super Bowl. More than 103 million Americans tuned in, only to learn that Dundee was not a real movie but an elaborate advertising campaign for Australian tourism. Behind the ad were more than 20 distribution partners, each with specific offerings to push into the market as the ad went to air. Subsequently this phase of the campaign went on to win a number of accolades and awards (see page 38), but more importantly set the foundation for inspiring Americans to choose Australia for their next holiday.

To maintain the momentum and build on the cut-through achieved from Dundee: The Son of a Legend Returns Home, we launched the second phase of the campaign in October 2018 - Visit the set of Dundee: Son of a Legend - with actor Luke Hemsworth inviting Americans to come and visit the ‘set’ of the movie and explore Australia.

A series of videos, hosted by Luke, took viewers on a behind the scenes tour, showcasing the spectacular and unique experiences on offer and encouraging Americans to book a holiday. The ad featured a range

of tourism destinations and experiences covering every state and territory, each selected based on their appeal to the American high value traveller. These included Katherine Gorge and Alice Springs (NT), Sydney Harbour (NSW), the Freycinet Peninsula (TAS), Great Ocean Road and Melbourne Cricket Ground (VIC), Kangaroo Island (SA), Ningaloo Reef and Lucky Bay (WA) and Canberra (ACT). Content appeared on US television broadcaster NBC’s channels as well as our Facebook, Twitter and Instagram pages.

The campaign was supported by Qantas, Virgin Australia, Expedia, STOs and eight key distribution partners in the USA.23

Given the travel planning and booking patterns of USA consumers, we anticipated a 12 to 18-month lead time before seeing increases in visitation and spend for Australia. Recent data shows accelerated growth from the USA. Visitor numbers grew 8 per cent for the month of June 2019 compared with June 2018, 24 and visitor spend was also solid, up 14 per cent for the quarter January to March 2019. 25

Forward bookings from the USA to Australia are also positive, with travel to Australia for the period July to December 2019 growing at almost twice the rate of bookings from the USA to the rest of the world (9.2 per cent versus 5.2 per cent respectively).26 Another indicator of demand is the growth in aviation seat capacity. Capacity from the USA into Australia grew 6 per cent for the year ending March 2019.27

Visit the set of Dundee: Son of a Legend key campaign results

Metric Results at 30 June 2019

Grow the US market to $6 billion by 2020 $3.9 billion (+ 9%)

Make Australia the #1 most desired, considered and intended destination to visit amongst high value travellers28

Desirability #1

Consideration #1

Intention #1

Table 9. Visit the set of Dundee: Son of a Legend key campaign results

Tourism Australia | 49

AUSTRALIA INC In April 2019, we launched a new youth campaign targeting young people in the UK, France and Germany who want to combine travel with temporary work under Australia’s Working Holiday Maker (WHM) program. The campaign involved playfully positioning Australia as Australia Inc., with a fictious CEO launching a new recruitment drive for the best workplace in the world. With thousands of places to fill with working holiday makers, the CEO is shown interviewing potential candidates while highlighting the skills required to join the world’s best company. With Australia’s vast and unique landscape as a backdrop, the recruitment drive showed off Australia Inc.’s amazing office.

The campaign aimed to demonstrate that a working holiday in Australia can give young people a point of difference and equip them with the experience, confidence and skills needed to develop a successful career at home after their working holiday and travels in Australia. The campaign was developed from research that showed that while working holidays appeal to young people from the UK, France and Germany, there are barriers to their uptake, including the need for more practical information about Australia’s WHM program and its benefits.

50 | Annual Report 2018/19

“ This campaign is one of the best youth campaigns we have ever done with Tourism Australia. Agents advised that customers

have asked them about it. As all free visa fares were already sold within the first three weeks, we decided to add resources to the campaign to maintain momentum.”

Nicole Azzola, Head of Offline Marketing CEU, STA Travel

To drive new applications and visitation to Australia, the campaign included a recruitment video as well as a series of online interviews showing potential working holidaymakers how the skills and experience gained in Australia could help them stand out from the crowd. Experiences in Victoria, Queensland, Western Australia and the Northern Territory were featured, including:

> Cattle mustering at Hale River Homestead in Alice Springs, Northern Territory

> Sky diving and quokka interactions at Rottnest Island, Western Australia

> Sailing in the Whitsundays and Hideaway Beach, Queensland.

Overall the campaign is performing well, reinforcing positive impressions of Australia and maintaining the country’s position in the top five most desirable destinations for a working holiday. Among those who saw the campaign, 63 per cent said they took further action as result of seeing Australia Inc.; 58 per cent said the campaign provided them with the information they needed to consider taking a working holiday; and 56 per cent said the campaign educated them about the range of experiences available in Australia.

Tourism Australia | 51

Kangaroo Beach Lodges, Kangaroo Island, SA

Top Didj Cultural Experience & Art Gallery, NT

Sydney Fly Fishing Tours, NSW

Port Arthur Historic Site, TAS

Wombat, TAS

Chapel Hill Winery, SA

Barnbougle Lost Farm Golf Course, TAS

Twelve Apostles Lodge Walk, VIC

52 | Annual Report 2018/19

SIGNATURE EXPERIENCES OF AUSTRALIA Signature Experiences of Australia continues as one of Tourism Australia’s most effective industry engagement and brand alignment initiatives, marketing experiences that tap into a broad range of travellers’ passions.

Highlights in 2018/19 included the launch of a new collective, Cultural Attractions of Australia, and the expansion of Discover Aboriginal Experiences.

The program features eight collectives representing 175 tourism businesses with a qualified inventory of more than 700 fully commissionable tourism experiences and multi-day itineraries. Each of the partners offer compelling and uniquely Australian

experiences that engage travellers with our people, our lifestyle and our place, in ways that are authentic and truly memorable. The collectives are listed below.

Signature Experiences of Australia lies at the heart of Tourism Australia’s Premium Strategy, targeting high value and high yield travellers. It is delivered in partnership with STOs and enables access to multiple products and experiences through a single point of contact. With 96 per cent of the tourism businesses in the collective located outside Australia’s capital cities, the program is a significant contributor to regional dispersal and creates a halo effect through competitive product packaging and conversion.

1. Australian Wildlife Journeys

2. Cultural Attractions of Australia

3. Discover Aboriginal Experiences

4. Great Fishing Adventures of Australia

5. Great Golf Courses of Australia

6. Great Walks of Australia

7. Luxury Lodges of Australia

8. Ultimate Winery Experiences Australia

The Signature Experiences of Australia collectives

PROMOTING SIGNATURE EXPERIENCES

Tourism Australia | 53

DISCOVER ABORIGINAL EXPERIENCES In November 2017, the Australian Standing Committee on Tourism approved the disbandment of the Indigenous Tourism Working Group and the repurposing of its remaining funding to the Signature Experiences of Australia Program. These funds were allocated to the Discover Aboriginal Experiences program and enabled the successful completion of:

1. An Australia-wide photographic shoot and postproduction to address image and video footage gaps

2. Participation at the global luxury travel show, Luxperience in Sydney, NSW

3. Delivery of the Eastern Markets Trade Partners Familiarisation in Far North Queensland

4. Content generation for marketing collateral including brochures, media kits and websites.

In 2018/19, the Discover Aboriginal Experiences program continued to grow, with nine new members added to the collective. Members attended a number of global events, educating, training and influencing travel trade and media to feature the unique experiences, delivered by Aboriginal guides, in their programs.

NEW MEMBERS OF THE DISCOVER ABORIGINAL EXPERIENCES COLLECTIVE IN 2018/19

Northern Territory

> Bremer Island Banubanu Beach Retreat

> Karrke Aboriginal Cultural Experience & Tour

> SeaLink NT - Tiwi Islands

Queensland

> Dreamtime Dive and Snorkel

> Flames of the Forest

Victoria

> Bunjilaka Aboriginal Culture Centre - Melbourne Museum

Western Australia

> Cape Cultural Tours

> Narlijia Experiences Broome

> Maalinup Aboriginal Gallery

54 | Annual Report 2018/19

“As a direct result of Discover Aboriginal Experiences (DAE), Kakadu Cultural Tours has experienced an increase in direct and industry requests, particularly from North America and Canada. This has grown our supplier database and bookings as well as direct bookings from independent travellers. Our tourism enterprises had a 10 per cent increase in turnover last financial year, because of DAE,

in an otherwise declining NT marketplace. Our industry partners, including Injalak Arts Centre, catering and mechanical suppliers have directly benefited from our increasing customer numbers. Smaller local indigenous operators such as Victor Cooper (Ayal Tours) and NT Bird Specialists have enjoyed more contract work from us too. We are very grateful for Tourism Australia’s support.”

Liam Maher, Kakadu Cultural Tours, Northern Territory

Kakadu Cultural Tours, NT

Tourism Australia | 55

The Spirits of the Pumpkins Descended into the Heavens, 2017, Yayoi Kusama

56 | Annual Report 2018/19

CULTURAL ATTRACTIONS OF AUSTRALIA The latest member of the Signature Experiences of Australia program, Cultural Attractions of Australia, launched at the Australian Tourism Exchange in Perth in May 2019. This industry-led collective of Australia’s leading arts and cultural attractions tells the story of how our varied geographic, ethnic and cultural origins have been embraced and have reshaped the way we define the nation. They curate the cultural narrative and provide visitors with a window into what it means to be Australian by exploring our history and sharing our contemporary, creative life.

Cultural Attractions of Australia represents 16 businesses across Australia, and offers 25 premium, behind-the-scenes cultural experiences.

“ Tourism Australia was instrumental in the establishment and launch of Cultural Attractions of Australia. Their support in educating potential and existing members about the value of collaborative

marketing; and their guidance in the development of a robust and strategic three-year plan, as well as access to Tourism Australia’s marketing and publicity channels have been invaluable. Furthermore, the cross pollination encouraged across all Signature

Experiences of Australia partners has given Cultural Attractions of Australia access to expertise and cross promotion that it couldn’t have generated as a stand-alone organisation. Feedback from trade regarding

Signature Experiences of Australia overall also demonstrates that the objectives of the program have resonated with industry and travel partners alike.”

Jennifer Ganske, Chair and Jane Ross, Executive Officer, Cultural Attractions of Australia

Cultural Attractions of Australia members

Adelaide Oval, SA

Australian Parliament House, Canberra, ACT

Fremantle Prison, WA

MONA (Museum of Old and New Art), Hobart, TAS

National Gallery of Australia, Canberra, ACT

Opera Australia, Sydney Opera House, NSW

Qantas Founders Museum, Longreach, QLD

Sydney Opera House, NSW

Arts Centre Melbourne, VIC

Australian War Memorial, Canberra, ACT

Melbourne Cricket Ground, VIC

National Anzac Centre, Albany, WA

National Gallery of Victoria, Melbourne, VIC

Port Arthur Historic Site, Port Arthur, TAS

Sovereign Hill, Ballarat, VIC

WA Maritime Museum, Fremantle, WA

Table 10. Cultural Attractions of Australia

Tourism Australia | 57

PUBLIC RELATIONS, BROADCAST AND MEDIA HOSTING Our PR program remained integral to our marketing

activity across all markets, by supporting global campaigns and major events and generating advocacy, positive publicity and word-of-mouth for Australian holiday experiences. In 2018/19, we generated more than 16,000 pieces of content via our PR, media and influencer-hosting activities that had an equivalent advertising value of $285 million.

Public relations and advocacy strategies were developed for a number of campaigns this year including Visit the set of Dundee: Son of a Legend; our global youth campaign, Australia Inc.; and our stereotype-challenging campaign, UnDiscover Australia.

Media and influencer hosting were undertaken across print, digital, social media and television channels to inspire travel to Australia through motivational storytelling. We hosted approximately 500 influential lifestyle and travel media representatives as well as visiting opinion leaders and digital influencers from 17 countries. This resulted in more than 2,000 pieces of content.

Highlights included a Vogue India cover shoot with Anushka Sharma Kohli (India), Nicholas Tse music video and Walk With Chef Nic online series (China), JAL Tabi Labo content partnership (Japan), Astro Ria series (Malaysia), Friend of Australia Kathy Lette for the Mail on Sunday (UK), Friend of Australia Curtis Stone’s Field Trip show (US), Go Wild online series with Mixson Wong (Hong Kong), Off The Path bloggers (Germany) and Entertainment Tonight coverage for the Invictus Games and Royal visit (UK).

Broadcast activites were also undertaken, including ITV Julia Bradbury's Australian Adventures (UK), Channel News Asia This Weekend (Singapore) and Trans TV My Trip My Adventure (Indonesia).

Our advocacy program continued through our Friends of Australia ambassador program which works on the principle that positive word-of-mouth advocacy via credible, trustworthy and inspiring sources can be the most persuasive form of marketing. This included continuing to work with our global ambassador Chris Hemsworth, resulting in considerable interest in Australia as a holiday destination, and generating 6,204 media articles. Other highlights of our Friends of Australia program included hosting Margot Robbie on a trip to the Northern Territory; supporting Curtis Stone’s PBS series, Field Trip with Curtis Stone which was filmed in Broome, Perth and Margaret River at the Margaret River Gourmet Escape; and supporting food and wine events and media opportunities in Shanghai with chefs Mark Alston and Guy Turland from Bondi Harvest.29

We continued to create, curate and edit destination news, and share information about new experiences, trends and events. This news was distributed across our digital and traditional media platforms and was shared with industry and STOs for use on their platforms.

58 | Annual Report 2018/19

DIGITAL

In 2018/19, digital marketing activities focused on defining our new five-year digital strategy to address changing consumer behaviour and emerging technologies. This included a tender to appoint new digital technology partners globally and in China to assist in defining our digital vision, as well as upgrades to our marketing technology platforms to improve processes for content translation, maintenance and personalisation based on user behaviour.

In addition to improving our digital marketing capability, activities focused on increasing the content available on australia.com to support Tourism Australia’s working holiday maker campaign, Australia Inc. This included working with industry and partners to provide information on visas, finding jobs and preparing for arrival.

2018/2019 saw a shift in media strategy with australia.com and australia.cn no longer the primary call to action for digital advertising. Consumers were increasingly driven to partner sites or were encouraged to stay within platforms, such as Facebook and Weibo, to interact with the brand. This shift in strategy has assisted in growing Tourism Australia’s fans in these other digital channels.

Website visitors

Website

Number of unique visitors 2018/19 (including percentage change year on year)

australia.com 18.7 million (down 5 per cent)

australia.cn (China) 4.7 million (down 23 per cent)

Aussie Specialist sites 0.48 million (up 52 per cent)

Table 11. Website visitors 2018/19

australia.com

Tourism Australia | 59

Mt Mulligan Lodge, Northern Outback, QLD

60 | Annual Report 2018/19

SOCIAL MEDIA

In 2018/19 Tourism Australia strengthened its position as social media’s most followed destination in the world, growing our audience by more than 1.6 million followers over the past 12 months. The social media team continued to use the platform to highlight incredible stories and world-class experiences from across the Australian tourism industry, achieving unpaid reach of more than one billion people.

In addition to generating awareness and stimulating conversations about Australia as a destination, the social media team worked closely with industry, regularly presenting at industry events and meeting weekly with operators to share the latest insights and trends.

LET THE AUDIENCE DECIDE The social media team handed control of its Instagram account to its 3.79 million followers in the second half of 2018/19. Capitalising on the incredible growth of, and interest in, Instagram stories, the team developed a strategy to capture the attention of its audience in a new way. They selected a region to focus on each fortnight and polled the audience each day to let them choose which activities they wanted to ‘experience’. Already, our audience has taken a helicopter flight, been lost in a maze, cuddled a koala, celebrated Dark Mofo in style, swum at Sydney’s famous Icebergs pool and toured Fraser Island in a 4WD, among a host of other activities selected. The unique approach led to a 15 per cent increase in audience retention and delivered more than 25 million in reach.

Social media followers 2018/19

Platform

Followers at 30 June 2019 (millions) Link/handle

Facebook 9.53 +8% facebook.com/SeeAustralia

Twitter 0.70 +6% @Australia; @TourismAus; @MeetinAustralia

Instagram 3.79 +19% @Australia

Weibo 1.25 +31% weibo.com/seeaustralia

WeChat 0.46 +2% tourismaustralia

Table 12. Social media followers 2018/19

Tourism Australia Instagram post

Tourism Australia | 61

PARTNERSHIPS

We continue to work with partners to increase our target customer reach and yield, increase investment in promoting Australia, enable conversion to booking, overcome destination complexity challenges, and facilitate industry development. These partnerships help bolster our marketing efforts around the globe.

Our partnership strategy is based on alignment with our high value traveller audience and market portfolio, in addition to leveraging growth opportunities for Australia. Our strategy involves working with commercial partners that enable us to engage and convert target customers; extending campaigns through partnerships with states and territories; and working with airlines, airports and states and territories to sustain existing aviation capacity and develop new routes.

During 2018/19, our partnerships collectively contributed $52 million in revenue. Airlines were our largest partners, contributing 28 per cent, followed by key distribution partners (26 per cent) and STOs (18 per cent).

Significant partnerships in 2018/19

Air China | China Eastern | China Southern | Ctrip | Etihad Airways JTB | Qantas Airways | Singapore Airlines | Virgin Australia

Table 13. Significant partnerships 2018/19

Our memorandum of understanding signing ceremony with China Southern Airlines

62 | Annual Report 2018/19

AIRLINES AND KEY DISTRIBUTION PARTNERS In 2018/19, we extended our campaigns through partnerships with states and territories, in addition to working with airlines, airports and the states and territories to sustain existing aviation capacity and develop new routes.

We partnered with 17 airlines and approximately 150 key distribution partners worldwide. Campaigns helped to tell the story of why There’s nothing like Australia , and provided packages and options designed to meet target customer needs. Campaigns included Undiscover Australia in India, Indonesia, Malaysia, Singapore, Germany, the UK and Japan; Too Australian For Words in China; the Australia Inc. working holiday maker campaign in the UK, Germany and France; and the continuation of Dundee in the USA and the UK.

Key distribution partners included the consortia Virtuoso and Travel Leaders Network in North America; Ctrip and CYTS in China; JTB and Jalpak in Japan; STA Travel and Detour in Continental Europe; MakeMyTrip in India; Chan Brothers and Dynasty Travel in Singapore; and Flight Centre and Trailfinders in the UK.

GOVERNMENT PARTNERS Tourism Australia is committed to driving alignment in policy, research, distribution and marketing as we work with government to deliver on Tourism 2020 as one voice.

In 2018/19, we continued to work with STOs to deliver quality, efficient programs that benefit the Australian tourism industry and its target consumers. This included managing the Aussie Specialist Program platform and training team, delivering research and insights, and the Signature Experiences of Australia program.

Key federal partners include Austrade, the Department of Foreign Affairs and Trade, the Department of Home Affairs, and the Department of Infrastructure and Regional Development. We also worked closely with STOs to help integrate and align international tourism promotions.

Teams from Tourism Australia and STOs met throughout the year to share insights and discuss plans across research, campaign development and marketing channels, aviation, distribution, trade events and trade missions. We also worked closely with STOs on the roll-out of multiple co-operative campaigns.

Commemorating our cooperative campaign with Tourism WA

Tourism Australia | 63

BUSINESS EVENTS The business events sector is a major driver of our visitor economy, with international business events visitors spending more on average than leisure visitors

while in Australia. The sector also plays a key role in generating trade, investment and employment.

At 30 June 2019, expenditure by international business events visitors from Tourism Australia’s target markets was worth $2.3 million, a decrease of 4 per cent year on year. There were 521,000 visitors from our target markets in the same period, down 3 per cent year on

year. The decreases were impacted by large incentives from China in 2017/18 that did not occur in 2018/19. While the slowing global economy and trade disputes between China and the USA are impacting business confidence, trade in our key markets confirms they anticipate improvements in 2019/20.

In 2018/19, our marketing communications and trade distribution and development programs continued to target two specific sectors - association conferences/ congresses and incentive events - with the aim of growing international awareness and preference for Australia as a business events destination, assisting

industry to convert business and driving visitation to confirmed business events.

To achieve our aims, our dedicated unit, Business Events Australia (BEA), focuses on three areas:

1. Building awareness through tailored messaging delivered via owned, bought and earned channels that target association and incentive decision makers.

2. Distribution development with international business events planners through a program of educational and trade events including Tourism Australia’s signature incentive showcase, Dreamtime.

3. Strengthening business conversion opportunities for Australian industry through programs including the Business Events Bid Fund Program and Advance Program; and sharing insights into target consumers.

BUSINESS EVENTS BID FUND PROGRAM In 2018/19, we continued our existing support for business events through the Business Events Bid Fund Program (BFP) which assists with securing new international business events for Australia.

Managed by BEA, the program is designed to increase the success rate of bids for new and qualified international business events by offering financial support at the critical bidding stage. In an increasingly crowded international marketplace, the BFP provides Australia with a competitive advantage: Funds are only

provided once the event is confirmed and contracted for Australia, with funds provided to ensure a material difference to event costs in Australia. These can include, but are not limited to, costs for accommodation, venue

hire and transport.

“ Partnering with Tourism Australia to showcase Brisbane at international tradeshows and utilising its Business Events Bid Fund Program has helped Brisbane Marketing achieve another record year of economic impact through bid wins. Hosting Dreamtime 2017 was a catalyst for us to ramp up Brisbane’s profile as an incentive destination and we’ve since attracted more interest in this growing sector.”

Juliet Alabaster, General Manager - Business Events, Brisbane Marketing

64 | Annual Report 2018/19

ADVANCE PROGRAM The BFP complements our existing Advance Program by providing support for delegate acquisition activities for previously confirmed international business events. In 2018/19, the program provided marketing strategy support and funds to 10 Australian business events destinations, suppliers, events and products, helping them to promote Australia to increase preference and visitation.

Activity in 2018/19 included targeted digital marketing campaigns to increase the number of delegates attending confirmed association events in Australia; content production that delivered promotional destination films; editorial copy for distribution through international trade media outlets; and collateral to raise awareness of Australia as a business events destination.

20 wins

$253m total economic impact

1,578 association congresses

2,366 incentive programs

Return on investment on the total contribution invested by all parties is

$21 for every dollar invested

APPLICATIONS BY EVENT TYPE > 57% Association (58 applications)

> 42% Incentive (42 applications)

> 1% Exhibition & Meetings (1 application)

INDUSTRY BREAKDOWN BY APPLICATIONS > International health (25 events)

> Direct selling (39 events)

> Services and disruptive technologies (8 events)

> Food and agribusiness (5 events)

> Resources and energy (5 events)

> Infrastructure (4 events)

> Aviation (2 events)

> Life insurance (3 events)

> Education (5 events)

> Environmental science (3 event)

> Humanitarian (1 event)

> Other (1 event)

BUSINESS EVENTS BID FUND

Tourism Australia | 65

DISTRIBUTION DEVELOPMENT As part of our distribution development strategy, we represented Australia at seven international trade shows and held distribution development workshops, meetings and events with key international business events decision makers. Business Events Australia received a 98 per cent satisfaction rating from Australian industry for its distribution development tradeshow activities.

We participated in and organised several international events that provided the Australian business events industry with a platform to develop business relationships, update potential customers on Australia’s offerings and secure business.

This included hosting the Australia stand at the following key business events trade shows:

> IBTM World (Spain)

> IMEX Frankfurt (Germany)

> IMEX America (USA).

In addition to these events, Tourism Australia delivered a distribution development program that included training workshops, networking events and attending industry association led events across key markets to increase target customers’ awareness of and preference for Australia.

Business Events Australia team at IMEX Frankfurt, Germany

66 | Annual Report 2018/19

MARKETING COMMUNICATIONS Marketing activities continued to use ‘There’s nothing like Australia for business events.’ We delivered differentiated marketing communications to the association and incentive sectors, with a focus on content creation, including advertorials, news articles, films and graphics.

During 2018/19, we delivered brand communications in priority markets through a variety of channels including events, public relations, print, digital and social media. Highlights include the launch of our new magazine, Australia Next, which provides international incentive planners with up to date information on what’s new in Australia.

We also raised awareness and preference for Australia through experiential events, including a client dinner in Auckland that showcased Australia’s business events offering to 60 New Zealand incentive planners and guests.

14 events

7

international trade shows

10

educational trips to Australia

113

Australian industry members joined Business Events Australia trade activity

116+ Australian industry members attended

250+ business leads generated by distribution activity

540+ business events buyers attended

13

media hosted in Australia

98% of buyers were satisfied with the educational

80

business events customers hosted in Australia

“This was a great trip, jam-packed full of information. I can now talk with confidence about these destinations to my clients. Every activity, dining option and supplier incorporated within the itinerary showcased that anything is possible. I look forward to working with clients travelling to these destinations to highlight what there is to offer.”

International buyer after attending a Business Events Australia educational.

DISTRIBUTION DEVELOPMENT ACTIVITIES

245+ articles

Public Relations activities

Tourism Australia | 67

INDUSTRY DEVELOPMENT Objective: An Australian tourism industry that is competitive and sustainable and delivers on the needs of the target customer. (Source: Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.8 Foreign Affairs and Trade Portfolio, p 151.)

PERFORMANCE OVERVIEW Overall result: Performing well. Key deliverables achieved.

Increasing the quality of Australia’s tourism products and experiences to ensure Australia is globally competitive is key to delivering the Tourism 2020 strategy. We can achieve this by training sellers of Australian tourism around the world and working with the Australian tourism industry and state and federal governments to help improve access to, and the development of, Australian tourism products, experiences and infrastructure. We will also keep the tourism industry informed about relevant developments, helping to ensure the collective success of Australian tourism.

KEY ACHIEVEMENTS > Visiting 64 destinations around Australia, engaging in 1,215 one-on-one meetings with industry, and providing updates on Tourism Australia’s

activities and the benefits of involvement in our marketing programs.

> Training 34,000 frontline travel sellers through the Aussie Specialist Program.

> Delivering a program of quality trade events, providing platforms for the Australian tourism industry to do business with distributors of Australian tourism products around the globe. This included hosting the Australian Tourism Exchange, which was held in Perth in April 2019, and attracted over 600 buyers from 30 countries.

> Undertaking cooperative marketing with 150 key distribution partners, strengthening campaign messaging and driving trip bookings by presenting quality Australian holidays to consumers.

> Promoting Australian tourism as part of G’Day USA.

> Supporting investment in tourism infrastructure, including delivering sales and marketing tools for Austrade teams to use with prospective international investors, organising investor famils in regional Australia, and coordinating investor roundtables.

> Supporting the introduction of new aviation capacity, including new routes from Japan and the USA. The increase in aviation capacity has been key to the growth in visitor numbers from these markets.

> Delivering the Destination Australia conference, as well as tourism industry briefings with STOs. Attendee satisfaction was high, with 97 per cent of conference delegates and 95 per cent of briefing participants giving a rating of ‘good to excellent’.

68 | Annual Report 2018/19

DISTRIBUTION DEVELOPMENT AUSSIE SPECIALIST PROGRAM 2018/19

30,000 qualified Aussie Specialist Agents

71,000 modules completed

34,000 frontline travel sellers attended face to face training

“ I am far more confident to promote Australia as a go-to destination after having completed the training.”

Aussie Specialist, UK

The Aussie Specialist Program, which has been running for 30 years, is our global online training program and is delivered in partnership with STOs. It is designed to provide frontline travel sellers from around the globe (and inbound tour operators in Australia) with the knowledge and skills to best sell Australian tourism experiences.

Since launching the new Aussie Specialist website in 2015/16 more than 240,000 training modules have been completed, with 71,000 in the past year alone. The modules are designed to help international travel agents better sell Australia, providing them with tips on building itineraries as well as in-depth information on Australia’s states and territories, key highlights and special-interest sectors.

We currently have over 30,000 qualified Aussie Specialists. The program is supported and delivered by a global training team that provides training in 14 countries. In 2018/19, the team delivered face to face training sessions to more than 34,000 frontline travel sellers.

In 2018/19, we:

> Continued to promote the Aussie Specialist Program and Australia to the travel trade through electronic newsletters, online module promotions, training events, roadshows, webinars and famils

> Worked to ensure our digital platform remained engaging, relevant and ahead of competitors’ platforms. This included a new Great Fishing Adventures of Australia module and the Aussie Specialist Ambassador Program

> Supported Corroboree Asia.

Tourism Australia | 69

AUSSIE SPECIALIST AMBASSADOR PROGRAM The Aussie Specialist Ambassador Program invited frontline travel sellers in 15 countries to submit a video pitch of why they believe ‘There’s nothing like Australia’

with the opportunity to become their region’s Aussie Specialist Ambassador. The prize was a famil trip to Australia where they were filmed.

Nine Aussie Specialist Ambassadors from North America, UK/Europe, Indonesia and New Zealand came to Australia on three famil visits in March 2019; with eight from Greater China, Japan, South Korea, India,

Malaysia and Singapore on three famils in June 2019.

State and territory tourism organisations hosted these visits.

The video content from these trips will be used on our Aussie Specialist website, in newsletters, training presentations and trade media promotions, to educate and inspire other travel agents to sell Australian experiences and destinations. The 17 Aussie Specialist Ambassadors will be utilised

throughout their one-year term to promote Australia and the Aussie Specialist Program.

“I am beyond excited to become New Zealand’s first-ever Aussie Specialist Ambassador. I can’t wait to share the amazing opportunities and experiences that Australia has to offer with

my fellow Kiwi agents.”

Stacey Leitch, House of Travel Kapiti Coast

Aussie Specialist Ambassadors taking part in famils at Uluru, NT (top) and Rottnest Island, WA (bottom)

17

Aussie Specialist Ambassadors

100

Videos produced for use in Aussie Specialist Program marketing

AUSSIE SPECIALIST AMBASSADOR PROGRAM

70 | Annual Report 2018/19

CORROBOREE ASIA 2018 AT THE GOLD COAST Historically, Corroboree operated only for select markets (UK/Europe and Greater China). Corroboree now takes place annually, alternating between Corroboree Asia and Corroboree Western markets each year.

Tourism Australia partnered with Destination Gold Coast, Tourism and Events Queensland, Singapore Airlines and Virgin Australia to host Corroboree Asia between 26-31 August 2018 on the Gold Coast. This event brought together 126 of Australia's leading tourism operators and around 300 top Aussie Specialists from Greater China, India, Indonesia, Japan, Malaysia, Singapore and South Korea.

The event provided a forum for Australian industry to train qualified Aussie Specialist agents and strengthen their product knowledge. State and territory tourism organisations hosted 24 famils, providing Aussie Specialist agents with firsthand experience of quality Australian tourism products. Agents also participated in scheduled appointments and networking events.

In post-event surveys, all Aussie Specialist respondents said they intended to sell more Australian product as a result of attending the event.

BUILDING GOVERNMENT AND BUSINESS LINKS During 2018/19, Tourism Australia participated in G’Day USA and the China International Import Expo in Shanghai. These events highlight Australia as a tourism destination, provide the Australian tourism industry with business opportunities and facilitate strong connections with the Australian Government.

G’DAY USA In January 2019, Senator the Hon. Simon Birmingham, Minister for Trade, Tourism and Investment attended the G’Day USA program. G’Day USA is Australia’s premier cultural and economic diplomacy initiative in the USA and brings together industry leaders and key influencers from government, business, tourism, academia and the arts.

300 Aussie Specialist Agents

126 Australian seller companies

24

Groups participated in famils around Australia

100% Delegate satisfaction

Corroboree Asia 2018 famil

CORROBOREE ASIA

Tourism Australia | 71

AUSTRALIAN TOURISM EXCHANGE 2019 IN PERTH The ATE is the Australian tourism industry’s largest annual business-to-business event. It brings together Australian tourism businesses to promote their products directly to tourism wholesalers and retailers from around the world through a combination of scheduled business appointments and networking events. It also provides international travel buyers with the opportunity to experience Australia’s tourism offerings firsthand through pre-and post-event familiarisations.

The 2019 ATE was held in Perth, Western Australia from 8-12 April. Around 2,200 delegates, including 600 travel buyers from 30 different countries, and 1,400 Australian industry sellers from 546 companies attended this year’s event.

This included 94 new travel buyer companies and 85 Australian tourism businesses attending for the first time. The International Media Marketplace (IMM) and Specialist Buyer Program were included in the event, while VIP buyers were hosted on a bespoke program including the inaugural ATE Platinum Club. The IMM provided the opportunity for international media to meet with Australian tourism suppliers in one-on-one appointments.

ATE was delivered in partnership with host-state partner Tourism Western Australia. The connections made at ATE helped deliver around $9 million to the local economy during the event. Longer term, ATE helps to grow Australia’s $43 billion tourism industry through relationships and establishing future business.

PROVIDING PLATFORMS TO DO BUSINESS We continue to coordinate and participate in international trade shows and events to promote Australia as a premier travel destination. This includes the Australian Tourism Exchange (ATE), Australia’s leading distribution event, and Corroboree Asia. These events are held in Australia as well as in source markets and bring together the Australian tourism industry, travel agents and travel wholesalers from around the world. We participate in these events to increase the presence of Australian tourism experiences in international distributors’ programs and connect the Australian industry with buyers of Australian tourism products.

In-market activities include missions and events in partnership with STOs and Australian tourism operators.

ATE delegates, Perth, WA

72 | Annual Report 2018/19

1,400 Australian tourism sellers

600 travel buyers from 30 countries

94

new travel buyers

74

International and Australian media

2,200 delegates

85

new Australian tourism sellers

Trade events 2018/19

Australian events International events

Events delivered by Tourism Australia

Australian Tourism Exchange, Perth Corroboree Asia, Gold Coast Destination Australia Conference, Brisbane Industry Briefings, various locations Tourism Australia Open Day, Brisbane

Australia Tourism Summit, USA Australia Marketplace, USA India Travel Mission, India Walkabout Japan, Japan

Major events attended by Tourism Australia (excludes Business Events)

Australian Tourism Export Council Meeting Place, Darwin Luxperience, Sydney

Adventure Travel World Summit, USA Internationale Tourismus Börse, Germany PURE Life Experiences, Morocco World Routes, Guangzhou Routes Asia, Philippines World Travel Market, UK World Youth and Student Travel Conference, Scotland

Table 14. Trade events 2018/19

ATE 2019

Tourism Australia | 73

SUPPORTING AVIATION GROWTH Air access is fundamental to the growth of tourism in Australia and the achievement of our Tourism 2020 objectives. To support the growth of aviation capacity to and around Australia, we worked with airlines, airports and STOs during 2018/19 to identify aviation gaps and opportunities.

International aviation capacity has grown by 62 per cent since the launch of the Tourism 2020 strategy in 2009 (see Figure 16). In 2018, capacity increased by 4.2 per cent to 26.9 million seats. Australia has ‘open skies’ agreements with New Zealand, China, Japan, Singapore, the USA, the UK and India. The outlook for the year ahead is for a slowing of demand in the context of higher global fuel prices.

INTERNATIONAL AVIATION CAPACITY (SEATS) TO AUSTRALIA (MILLIONS)30

International aviation capacity to Australia Millions

Case study: Growth in aviation capacity spearheads tourism growth from Japan to Australia

During the past five years Australia has secured several new air routes from Japan which has led to growth in inbound tourism numbers (following some years of decline). The expansion of air services from Japan to Australia continued in 2018/19, with All Nippon Airways (ANA) announcing a new Tokyo (Narita)-Perth route, which commenced in September 2019 and fills a strategic gap. ANA’s Perth route follows the airline’s Tokyo (Haneda)-Sydney route which commenced in 2015. In recent years Qantas also began flying from Tokyo (Narita) to Brisbane and Japan Airlines’ started Tokyo (Narita)-Melbourne flights in September 2017.

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

16.6

17.8

19.1 19.6

21.0

22.1 22.4

24.6

25.9

26.9

Figure 6: International aviation capacity in the year ending December 2018

Whale and Calf, Head of Bight, SA

AVIATION DEVELOPMENT

74 | Annual Report 2018/19

“ We are excited to add Perth to our list of world-class destinations and are happy to be collaborating with Tourism Western Australia, Perth Airport and Tourism Australia. The city is celebrated worldwide as a tourist destination and economic hub, and we look forward

to making it easier to travel there from Japan.”

Seiichi Takahashi, Senior Vice President of ANA

The Australian stand at Routes Asia, Cebu, Philippines

WORLD ROUTES AND ROUTES ASIA

In 2018/19, we participated in World Routes (Guangzhou, China) and Routes Asia (Cebu, Philippines) in partnership with Australia’s airports and states and territories. A delegation of 15 Australian aviation partners exhibited as part of Team Australia at World Routes in Guangzhou, where senior decision makers from the world’s leading aviation organisations gathered to discuss, develop and plan network strategy. The event attracted approximately 2,700 aviation professionals and marked the handover event for World Routes, which headed down under in 2019. Hosting World Routes in September 2019 presented a unique opportunity for Australia to take centre stage with the biggest players in world aviation in our own backyard.

Tourism Australia | 75

PARTNERSHIP WITH AUSTRADE Australia needs continued investment in tourism infrastructure to realise its potential. To this end, we commenced a partnership with Austrade in

May 2012 to attract foreign investment in tourism infrastructure. This collaboration promotes the Australian tourism opportunity and facilitates the relationship between investors and STOs responsible

for delivering tourism investment.

ATTRACTING INVESTMENT

INVESTMENT IN AUSTRALIA’S TOURISM INFRASTRUCTURE Tourism Research Australia’s Tourism Investment Monitor 2017/18 reported a potential pipeline of 22,300 standalone hotel rooms to the national accommodation supply, in addition to 27,890 mixed-use rooms. This, combined with the 47,800 rooms opened since 2009, means that Australia has already exceeded the accommodation target of 20,000 rooms set under the Tourism 2020 strategy.

Number of accommodation rooms in Australia 2011 to 2019 31 (hotels, motels and serviced apartments with 15 or more rooms)

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2018/19 2019/20

Key Australian destinations33

150,433 153,055 154,065 156343 159,650 164,197 168,080 175,193

Total rooms 258,149 262,347 264,012 267,606 271,313 275,700 296,655 296,655

Table 15. Number of accommodation rooms in Australia 2011 to 2019

“ The Queensland Government has been working in partnership with Tourism Australia and Austrade as a member of the Investment Attraction Partnership Group (IAPG) since its inception. The Queensland Government also works collaboratively with the partnership to host inbound investment delegations and outbound missions, which have yielded significant investment outcomes

for Queensland.”

Dominic Ward, Department of Innovation, Tourism Industry Development and the Commonwealth Games, Queensland

76 | Annual Report 2018/19

NEW SUITE OF ONLINE TOOLS HIGHLIGHTING AUSTRALIA’S TOURISM INVESTMENT OPPORTUNITY During the past 12 months we have continued to develop a suite of tools that showcase the Australian tourism business case on the

tourisminvestment.com.au website.

These tools are designed to make it easy for investors to see why Australian tourism offers a compelling business case:

> The Tourism Statistics dashboard provides a snapshot of international arrivals to Australia on a monthly and year ending basis, with the ability to filter on an individual market level

> The Markets dashboard provides a deeper dive into the travel behaviours and preferences of Australia’s major tourist markets

> The Aviation dashboard highlights capacity by airline, capacity growth and carriers offering direct services to Australia on a market-by-market basis

> The Hotel Investment Pipeline dashboard provides an overview of the number of rooms coming through the pipeline, with options to filter by project phase, location, opening date and chain scale

> The Hotel Performance dashboard is the last piece of the supply and demand puzzle, providing performance data at a national and city level, and on a monthly and year to date basis.

These dashboards collectively point to a robust industry that is well-placed to sustain growth and continue to be an attractive target for capital seeking a home.

Wollongong, NSW

Tourism Australia | 77

This year, Tourism Australia management and staff participated in government and industry briefings and events to build awareness and understanding of our strategic direction. Our Industry Relations team also took part in 1,215 one-on-one meetings and attended 91 conferences and events, while more than 6,000 industry operators attended presentations at our conferences and workshops, across 64 locations around Australia.

These activities keep industry members updated on marketing initiatives and partnership opportunities as well as tourism news, research, insights and other useful data.

In addition, a series of briefings by visiting industry and government representatives provided Tourism Australia’s staff and Executive Leadership team with valuable intelligence, updates and insights on industry businesses and activities.

TOURISM AUSTRALIA OPEN DAY In March 2019, we held our annual Tourism Australia Open Day in Brisbane, in conjunction with Destination Australia, which provided an opportunity for industry representatives to meet with staff members in one-on-one meetings. Seventeen Australian tourism operators from southern Queensland met with representatives from Tourism Australia’s business units, including our international market managers, to explore opportunities to engage more closely.

OUR RESOURCES We offer a range of resources to help tourism businesses with their marketing activities and to keep them informed about our own marketing initiatives. Table 16 outlines the details of these online resources.

Through our websites, we provide tourism research, statistics and insights; access to marketing tools such as our image and video gallery; and advice on promoting products and experiences through our programs. We also provide tips on making the most of social media; regular updates on our campaigns and promotions around the world; information on getting involved in our Aussie Specialist Program and distribution development activities; and resources for the media and students.

INDUSTRY ENGAGEMENT

1,215 one-on-one meetings

64 Australian destinations visited

91

conferences attended

6,000 participants attended our conferences/workshops

78 | Annual Report 2018/19

MAKING THE MOST OF INDUSTRY INSIGHTS In November 2018, Tourism Australia was granted an additional $5 million over two years to help address the decline in Working Holiday Maker (WHM) arrivals to Australia from our European markets. In developing the campaign, our Industry Relations and International teams hosted roundtables with operators who focus on the youth sector, particularly working holiday makers. These forums were held in Cairns, the Gold Coast, Sydney and Melbourne to discuss and gain insights to inform our marketing activity and ensure our activities met the needs of operators. A total of 37 companies contributed to the forums.

Key themes from the sessions included the importance of:

> Social media, both as a marketing tool and as a source of information

> A reliable and easy to use website with practical information about where to find jobs

> Authentic content from operators and micro influencers who have had a WHM experience in Australia

> Featuring the Aussie lifestyle and our work life balance as well as the potential to earn a good income.

These insights were integral to the development of our campaign, Australia Inc. that has positioned Australia as the world’s most desirable working holiday maker destination. The campaign commenced in the UK, Germany and France in April 2019.

Tourism Australia industry resources

Working with Tourism Australia tourism.australia.com/en/news-and-industry-tools/building-your-tourism-business/working-with-tourism-australia.html

Working with Business Events Australia

businessevents.australia.com/en/media-and-australian-industry.html

There’s nothing like Australia tourism.australia.com/en/about/our-campaigns/theres-nothing-like-australia.html

Table 16. Tourism Australia industry resources

Narlijia Experiences Broome, WA

Tourism Australia | 79

Destination Australia Conference, Brisbane, QLD

80 | Annual Report 2018/19

KEEPING THE TOURISM INDUSTRY UP TO DATE WITH TRENDS We delivered a range of communications during 2018/19 to keep the tourism industry updated about

news, research, insights, industry developments and more. Our corporate website, tourism.australia.com, continues to be the central point of information for industry and receives strong visitation. Our corporate social media also offers channels for updating industry

in a timely manner; followers grew to more than 150,000 on Twitter and 70,000 on LinkedIn during the year.

We hosted more than 2,000 participants at industry briefings that were delivered in partnership with STOs. These briefings provided an overview of our marketing initiatives, consumer insights, business events

activities and partnership opportunities.

During the year, the Tourism Australia Board held several meetings outside Sydney, so that members could meet and discuss issues with local industry. Meetings were held in Shanghai (China), Uluru and

Melbourne, with the remainder held in Sydney.

DESTINATION AUSTRALIA CONFERENCE 400 of Australia’s tourism leaders attended our fifth annual Destination Australia Conference, in March 2019. The event, held for the first time in Brisbane, covered a range of topics including the global economic outlook, insights to international consumers’ and

trends in marketing. In 2020 the conference will be held in Adelaide.

“ Congrats TA on a great forum! Enjoyed the big picture view - aside from my own business view. We all play a part.”33

“ Always a standout conference. Excellent organisation, great speakers, pertinent content and networking.”34

Tourism Australia | 81

4.0 M A N AG I N G O U R O RG A N I SATI O N

Kangaroo Island, SA

82 | Annual Report 2018/19

Tourism Australia | 83

Freycinet Experience Walk, TAS

84 | Annual Report 2018/19

PERFORMANCE OVERVIEW

KEY ACHIEVEMENTS > Leading initiatives to strengthen Tourism Australia’s corporate values - united, positive, genuine, commercial and innovative.

> Achieving strong workforce diversity - 70 per cent of our workforce is female, 67 per cent of our Executive Leadership team is female, 51 per cent of our Global Leadership Team is female, and 2 per cent of staff members in our head office in Sydney are Indigenous or Torres Strait Islander Australians.

> Achieving a staff engagement score of 90 per cent and a Net Promotor Score of +23.

> Continuing to enhance our corporate infrastructure, which included improvements in IT services across regional offices.

> Enhancing our intranet, MyTA, to include live Twitter feed functionality and improved look and feel.

> Successfully meeting the digital demands of the Visit the set of Dundee: Son of a legend, UnDiscover Australia, Too Australian for Words and Australia Inc. campaigns, and ensuring the responsiveness and reliability of digital platforms throughout all stages of these campaigns.

Vlasoff Cay, Great Barrier Reef, QLD

Tourism Australia | 85

PEOPLE

STAFF STATISTICS At 30 June 2019, we employed 209 people, of whom 146 (70 per cent) were female and 88 (47 per cent) worked overseas. Statistics on staff employed on an ongoing and non-ongoing basis are available at Appendix 1.35

VALUING DIVERSITY Women’s development and gender diversity continued to be central to our operations. The female to male ratio is 70 per cent to 30 per cent. Sixty-seven per cent of our Executive Leadership team and 51 per cent of our Global Leadership Team are women.

INDIGENOUS PARTICIPATION AND EMPLOYMENT As at 30 June 2019, the percentage of Indigenous staff members in our head office in Sydney was 2 per cent. We will continue to work towards the government target of 3 per cent by developing relationships with agencies that specialise in Indigenous placement, as well as with universities (particularly the University of New South Wales and University of Technology Sydney) to secure talented recruits.

RECONCILIATION ACTION PLAN The Reconciliation Action Plan (RAP) program provides a framework for organisations to support the national reconciliation movement. RAPs are strategic documents that support an organisation’s business plan by including practical actions that will drive contribution to reconciliation both internally and in the communities in which it operates.

Tourism Australia’s 2017 - 2019 Reconciliation Action Plan aims to create strong and productive relationships with Aboriginal and Torres Strait Islander peoples, so we can contribute meaningfully to ‘closing the gap’. It is also designed to increase demand for Indigenous tourism experiences by improving trade and consumer awareness of their quality and diversity. When we introduced our plan, Tourism Australia was the first Commonwealth government agency to achieve Reconciliation Australia’s Stretch RAP level, which involved setting long-term strategies and goals for our activities.

86 | Annual Report 2018/19

STAFF ENGAGEMENT Our overall staff engagement score was 90 per cent in 2019, while 100 per cent of staff members said they were proud to work for Tourism Australia. We have achieved ratings above 90 per cent in five out of the last six years for overall engagement as well as over 90 per cent for all of our values in the current reporting year. At a more granular level, we have continued to achieve strong results (+90 per cent) in role clarity, job expectations and articulating the contribution of individual roles to achieving Tourism 2020 goals.

NET PROMOTER SCORE The Net Promoter Score (NPS) measures staff members’ willingness to promote Tourism Australia as a ‘good place to work’. Organisations with a high NPS have strong cultures and positive staff engagement and are generally industry leaders and high performers. Our NPS decreased this year, from +33 in 2018 to +23. It is recognised that the personnel and structural changes implemented this year were key reasons for the decline in this rating, and initiatives are underway to return performance to previous levels.

Staff engagement results, 2014 to 2019

2014 2015 2016 2017 2018 2019

92% 84% 90% 90% 92% 90%

Table 17. Staff engagement results 2014 to 2019

wukalina Walk, TAS

Tourism Australia | 87

THE TAway The TAway describes Tourism Australia’s values, which are:

RECOGNISING GOOD PERFORMANCE We continued to recognise and reward high-performing staff members throughout the year. Our performance management system provides a robust framework for employees to set themselves individual goals linked to our business strategy, and then to monitor progress against these goals in mid-year and annual performance appraisal sessions with their manager. Identifying opportunities for training and growth are important components of these sessions, with individual learning and development programs an integral part of each staff member’s performance program.

Staff who are ‘living our values’ and exemplify the ‘TAWay’ are recognised at our annual Values Awards.

ATTRACTING AND RETAINING STAFF The staff retention rate remained above the industry average in 2018/19 with 94 per cent of new staff members staying for at least 12 months (against a target of 91 per cent), and 90 per cent staying for at least two years (against a target of 80 per cent). Retention has remained at this level for over five years. Voluntary turnover for 2018/19 was 16 per cent.

Kayaking on Lizard Island, Great Barrier Reef, QLD

United we are one team

Positive we are optimistic

Genuine we are authentic

Commercial we deliver results

Innovative we are creative thinkers

In 2018/19, we continued to place an emphasis on living our values and creating a culture that encourages greater authenticity and staff engagement while supporting our drive to become more innovative and commercial in how we operate. Key vehicles for instilling our values included values taskforces, participation in corporate sports programs, and our social committee. We also delivered events throughout the year to support charity institutions, commercial understanding and innovation.

88 | Annual Report 2018/19

WORK HEALTH AND SAFETY Tourism Australia is committed to protecting our key asset - our people - and strives to provide a workplace that is safe for all workers, poses no risk to the environment, and complies with relevant legislation, standards and codes of practice.

We also ensure that our key employment policies, procedures and practices comply with the requirements of Commonwealth legislation, including the Work Health and Safety Act 2011, Disability Discrimination Act 1992, Racial Discrimination Act 1975 and Sex Discrimination Act 1984.

In 2018/19, the Health and Safety Committee implemented several initiatives, including:

> A dedicated Work Health and Safety Week to raise awareness of health and safety across the organisation

> Disaster recovery planning

> Continued refinement of famil safety standards, including the launch of a new online training module for staff and contractors

> First aid and fire warden training

> Office facilities checks to ensure our work environment continues to comply with work health and safety requirements.

Number of work health and safety incidents 2014/15 to 2018/19

2014/15 2015/16 2016/17 2017/18 2018/19

Workers compensation 1 1 0 0 0

Work health and safety incidents 5 8 1 4 4

Table 18. Number of work health and safety incidents 2014/15 to 2018/19

WELLBEING We continued to provide a range of initiatives to support the wellbeing of our staff members. This included annual health assessments, health and wellbeing allowances, influenza vaccinations and an Employee Assistance Program.

INCIDENTS AND DISPUTES There were four minor work health and safety incidents in 2018/19, and no workers compensation claims.

Tourism Australia | 89

ORGANISATIONAL CAPABILITY

SYSTEMS, TECHNOLOGY AND PROCESSES In 2018/19 we continued to provide secure and reliable systems and infrastructure, driving efficiency and effectiveness and building capability.

CORPORATE SYSTEMS AND INFRASTRUCTURE We rolled out enhancements to our corporate infrastructure including replacing aging hardware and upgrades to meeting room infrastructure, SharePoint and Skype for Business. These improvements will help increase flexibility and productivity and reduce communications costs, in addition to improving collaboration across our offices. Efforts to reduce red tape continued through ongoing business systems enhancements, the consolidation of digital assets and the integration of operational data.

CONSUMER AND TRADE PLATFORMS Ensuring that our consumer platforms are equipped to meet the digital demands of our key campaigns - Visit the set of Dundee: Son of a legend, UnDiscover Australia, Too Australian for Words and Australia Inc. - was a key focus of 2018/19; along with delivery of our trade events via our new cloud-based events management system.

Our dedicated digital program resulted in improvements to performance. This included enhancements to audience sharing, reporting and real-time tracking of consumer behaviour, providing insights that were used to refine digital marketing activity; further work on our personalisation strategy to improve customer engagement across our web assets; and roll-out of a new CRM platform. We continue to manage, deploy, support and upgrade key Adobe platforms such as Campaign, Analytics, Experience Manager, Target, Audience Manager and Social.

CYBERSECURITY In 2018/19 we developed and implemented a dedicated Cyber Security Strategy, aligned with the Australian Government’s Protective Security Policy Framework and NIST (the National Institute of Standards and Technology of the US Department of Commerce). Initiatives completed as part of this strategy included a third-party review and assessment of Tourism Australia’s security risk; implementation of the NIST governance framework; documentation of controls and processes; implementation of third-party security monitoring and detective controls; and commencement of staff education programs.

LOOKING AHEAD We will continue to improve business performance, with a focus on data/audience-sharing, reporting and real-time insights into consumer behaviour. This will help us to refine and operationalise our digital marketing activities. Work will also continue on our consumer personalisation strategy to improve customer engagement across our web assets. In 2019/20, our technology team will continue to deliver end-user training programs to drive productivity gains from our technology investments. The team will also continue to migrate legacy systems to cloud-based platforms, reducing reliance on costly data centre hardware and the need for software upgrades.

90 | Annual Report 2018/19

LEARNING AND DEVELOPMENT AND WORKFORCE PLANNING We continued our partnership with global training organisation Development Dimensions International (DDI) to provide behavioural-focused leadership skill development programs. Training was delivered to team members across seven regions in 2018/19, with another three regions to complete training in the first half of 2019/20.

Continuation of external classroom-based training was also provided this year through a training organisation called New Horizons. This provided Sydney-based team members with access to courses covering leadership, presentation skills and Microsoft Office.

Globally, team members were given access to over 200 online training modules, which are accessible via our Learning Management Portal. These modules cover topics ranging from leadership and project management, to career development, wellbeing, compliance and Microsoft Office applications.

Our continued compliance-based training continued this year and included new-starter inductions; work health and safety and first aid training; and training to improve presentation and business-writing skills. Further training was provided on performance management and improving efficiencies in the areas of goal setting, performance development and performance monitoring against goals.

We joined the ‘Women Ahead Mentoring Program’ which provides three of our emerging female leaders with the opportunity to take part in a cross-industry mentoring program. Three of our Executive Leadership Team members also joined the program as mentors.

ELITE PROGRAM PARTICIPATION Tourism Australia was an Emerging Leaders of Inbound Tourism Excellence (ELITE) program partner in 2018/19. Five of our team members were selected to participate in the ELITE program and successfully graduated. The program, which is run by the Australian Tourism Export Council, identifies up-and-coming executives in the tourism industry and pairs them with industry leaders who mentor them for the duration of the program with the aim of enhancing their industry knowledge and leadership skills.

Tourism Australia | 91

Thala Beach Nature Reserve, Port Douglas, QLD

92 | Annual Report 2018/19

ENVIRONMENTAL PERFORMANCE

ENERGY AND WASTE Efforts to minimise our environmental impact continued in 2018/19. Key practices included:

> Introducing ‘follow-me’ printing on all photocopiers, reducing waste and photocopier paper expenses by 31 per cent year on year

> Replacing dual screen monitors with single screen, decreasing our electricity footprint36

> Using double-sided printing and copying as the default setting on all printers and photocopiers and sourcing office copy paper from sustainably managed plantations

> Installing paper and waste recycling for office supplies and consumables in workspaces and kitchen areas

> Ensuring contract cleaners check that recyclable materials are not contaminated by food waste

> Continuing use of video-and web-conferencing systems at our head office. These systems are also used in our 13 international offices and have lowered energy consumption and helped offset carbon emissions that would have been generated by staff travel.

Our head office is situated in the MidCity complex at 420 George Street in Sydney. The building has an unassisted five-star National Australian Built Environment Rating System (NABERS) rating and a five-star Green Star rating. All lighting in the head office is activated by motion sensors, with a timing function set at the lowest workable level.

SUSTAINABILITY - INDUSTRY EVENTS We are committed to reducing waste at our events. Some of the ways in which we are working towards delivering more sustainable industry events are:

> Limiting the number of giveaways we provide, and where giveaways are provided, responsibly sourcing products that can be recycled and/or are reusable

> Discouraging the distribution of printed collateral by providing digital platforms to share information with and between delegates

> Using digital signage in preference to printed signage wherever possible

> Not permitting the sale or give away of plastic water bottles on the trade show floor at ATE or Corroboree events

> Using crockery or biodegradable plates, cutlery and coffee cups

> Reducing cost and waste associated with catering - our Industry Events team regularly collects data as part of event feedback processes to more accurately forecast catering requirements for future events

> Leveraging venue partnerships with organisations such as Oz Harvest to minimise food waste

> Recycling general event waste where possible.

Tourism Australia | 93

ORGANISATIONAL STRUCTURE

Figure 7: Tourism Australia's organisational structure at 30 June 2019

Assistant Minister for Regional Tourism Senator the Hon. Jonathon Duniam

Chair Bob East

Directors

Anna Guillan AM, Deputy Chair | Hayley Baillie | Jeffrey Ellison | John Hart David Seargeant | Andrea Staines OAM | Bradley Woods

Managing Director John O'Sullivan*

Executive General Manager Mark Craig

Executive General Manager Karen Halbert

Executive General Manager Penny Lion

International Operations, Distribution

Corporate Services

Corporate Affairs Government and Industry

Events

Consumer Marketing

Minister for Trade, Tourism and Investment Senator the Hon. Simon Birmingham

Executive General Manager Phillipa Harrison

Chief Marketing Officer Susan Coghill

* John O'Sullivan completed his term as Tourism Australia's Managing Director at the end of the financial year.

94 | Annual Report 2018/19

ORGANISATIONAL CHANGES

In 2018/19 we continued to align our organisational structure with our strategy to drive effective delivery of our remit.

This involved the continued centralisation of key business and marketing processes and refinement of our consumer marketing structure.

The main area of change was the establishment of a new Digital Strategy team within Marketing to drive our digital strategy and the creation of a new Marketing Technology team, who work closely with the Marketing team to ensure effective delivery of our digital strategy. Together these changes were part of a broader move to bring our marketing and technology functions closer together and enable Tourism Australia to better respond to the fast-changing consumer landscape.

Our Managing Director of five years, John O’Sullivan resigned to take up a role in the private sector.

Senior manager appointments and departures 2018/19

Appointments Departures

Susan Coghill, Chief Marketing Officer Lisa Ronson, Chief Marketing Officer

Sean Rosser, Chief Information Officer Jason Flynn, Chief Information Officer

Paul Bailey, General Manager Digital Strategy John Mackenney, General Manager Digital Transformation

Mandy Wu, Country Manager China Geoff Ikin, General Manager Global Media, PR and Social

John O’Sullivan, Managing Director

Table 19. Senior manager appointments and departures 2018/19

Johanna Beach on the Twelve Apostles Lodge Walk, Great Ocean Road, VIC

Tourism Australia | 95

Managing Director John O’Sullivan

International Phillipa Harrison Executive General Manager - International

Global Marketing Susan Coghill Chief Marketing Officer

EXECUTIVE LEADERSHIP TEAM PROFILES

John O’Sullivan joined Tourism Australia as our Managing Director in March 2014. He has successfully overseen the evolution of our award winning There’s nothing like Australia campaign from the food and wine focused Restaurant Australia campaign (2014) to the emotive Aquatic and Coastal campaign (2016). In 2018, John led the launch of our biggest ever campaign for the US market, Dundee: The Son of a Legend Returns. During his time at Tourism Australia, John has also focused on growing our partnership marketing efforts whilst transforming our digital capabilities, to reflect changing consumer behaviours and conversion challenges. John has held executive positions with Fox Sports, Events Queensland (Chief Executive) and Football Federation Australia (Chief Commercial Officer), as well as with the Sydney 2000 Olympic and Paralympic organising committees. He has over 20 years’ experience in sports marketing, event management and media across Australia, the UK and the Middle East.

Tourism Australia’s International division is responsible for global marketing operations, distribution development and global partnerships across Asia, the Americas and Europe. Phillipa (Pip) Harrison joined Tourism Australia in February 2017. In her role, Phillipa oversees Tourism Australia’s network of international offices, which spans 12 countries. She also manages airline relationships and distribution channels, working in partnership with the industry to grow the inbound market for Australian tourism. Before her current role, Phillipa spent six years working for Hamilton Island Enterprises. She also held a variety of senior sales, marketing and product roles at Viator Systems (Sydney), Base Group (Sydney), STA Travel (London), Contiki Holidays (London) and Trailfinders (London).

Global Marketing is responsible for creating and developing Tourism Australia’s brand assets for global campaigns. Global Marketing manages the roll out of Tourism Australia’s marketing strategy, ensuring that Australia’s tourism marketing efforts continue to cut through in the competitive international marketplace. In her previous role as Tourism Australia's General Manager Creative, Content and Campaigns, Susan helped set the creative marketing direction for Tourism Australia, overseeing the recent Dundee, Undiscover Australia and Australia Inc. campaigns.

96 | Annual Report 2018/19

Corporate Affairs, Government and Industry Karen Halbert Executive General Manager

Corporate Services Mark Craig Executive General Manager

Events Penny Lion Executive General Manager

The Corporate Affairs, Government and Industry team is Tourism Australia’s main liaison with government, Australian news media and the tourism industry and manages the work that Tourism Australia does in attracting investment into the tourism industry. Karen Halbert has extensive experience in corporate affairs, with a strong background in government and media relations. She joined Tourism Australia in January 2013. Before that, Karen worked as Principal Advisor, Media Relations for Rio Tinto and held senior positions at Macquarie Group and AstraZeneca. Karen has also worked for a federal MP.

Corporate Services is responsible for maintaining and improving robust corporate governance through information technology, finance, planning, administration, human resources, legal advice and board secretariat duties. Mark Craig joined Tourism Australia in June 2011. Previously Mark was Chief Financial Officer at the NSW Human Services Department. He has also held senior executive roles with EnergyAustralia, Scottish Water and EY.

Events at Tourism Australia comprises the Business Events and Industry Events teams. The Business Events team is responsible for delivering marketing communications and trade programs to promote Australia internationally as a business events destination. The Industry Events team is responsible for delivering events in Australia and overseas that provide the Australian tourism industry with a platform to promote experiences and products to qualified travel sellers. Penny Lion joined Tourism Australia in 2010 as Head of Business Events Australia and was appointed Executive General Manager - Events in August 2016. Having worked on trade, consumer and corporate events for more than 20 years, she has extensive experience in strategy, marketing, sales, operations and stakeholder management.

Tourism Australia | 97

5.0 CO RP O R ATE GOV ERN A N CE

Cape Tribulation, Daintree National Park, QLD

98 | Annual Report 2018/19

Tourism Australia | 99

PERFORMANCE OVERVIEW

KEY ACHIEVEMENTS > External audits found no material issues or compliance breaches, and no significant non-compliance issues.

> Comprehensive internal audits were undertaken by EY across various organisational units. These informed a program of continuous improvement in our operations.

> We continued to operate under a robust governance and risk management framework, ensuring that our day-to-day operations are accountable, transparent and efficient. Dedicated risk workshops were held with the Audit and Finance Committee and Executive Leadership Team.

> We rehearsed a crisis simulation to assess our management capability in the event of a crisis affecting our organisation.

Kooljaman at Cape Leveque, WA

Keppel Lookout, Marysville, VIC

Sailing, Canberra, ACT

100 | Annual Report 2018/19

ENABLING LEGISLATION AND RESPONSIBLE MINISTER

Tourism Australia’s governance arrangements are prescribed by the Tourism Australia Act 2004 (TA Act) and the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The TA Act is Tourism Australia’s enabling legislation and sets out the organisation’s specific objectives, functions and powers. The PGPA Act sets out governance and accountability requirements for Commonwealth entities, with an emphasis on planning, performance and risk management.

As a portfolio agency, Tourism Australia must also consider and implement Ministerial Directions and Statements of Expectations issued from time to time by the Minister for Trade, Tourism and Investment, Senator the Hon. Simon Birmingham.

PARLIAMENTARY ACCOUNTABILITY We are accountable to the Australian Parliament through the Senate Estimates process, Senate Orders, and the tabling of our annual report and PGPA Act compliance report. In 2018/19, Tourism Australia participated in the Senate Standing Committee on Foreign Affairs, Supplementary Budget Estimates hearing in October 2018, as well as the Additional Budget Estimates hearing in February 2019.

Longitude 131, Yulara, NT

Tourism Australia | 101

GOVERNANCE FRAMEWORK AND PRACTICES

TOURISM AUSTRALIA’S GOVERNANCE FRAMEWORK

Figure 8. Tourism Australia’s governance framework

Tourism Australia Act 2004

Public Governance, Performance and Accountability Act 2013

Minister for Trade, Tourism and Investment

Tourism Australia Board

Tourism Australia Managing Director

Tourism Australia Executive Leadership team

Audit and Finance Committee

102 | Annual Report 2018/19

We are committed to implementing best practice in corporate governance matters, and to ensuring that accountability, integrity, transparency and efficiency are reflected in our day-to-day operations. We place a strong emphasis on the importance of these values by ensuring that we:

> Focus on project planning and the performance of key projects, and monitor contracts in line with best practice

> Communicate openly with the Australian Government, the Minister for Trade, Tourism and Investment, and applicable regulatory bodies

> Implement sound risk management policies and procedures, including rolling programs of risk assessment and risk planning.

Our governance framework ensures business operations comply with local and foreign legislation and enables strong commercial performance.

We assess the effectiveness and risk exposure of our governance framework through annual corporate and operational planning processes, quarterly business evaluations and an annual internal audit program. We also:

> Scrutinise operations through internal and external audits, and check internal controls set out in organisational policies and procedures

> Regularly review key governance documents such as the charters of our Board and the Audit and Finance Committee, the Delegation Instruments and Instructions, and our Code of Conduct

> Provide regular training to Australian and overseas staff members in corporate governance

> Carry out standard internal and external compliance reporting.

RISK MANAGEMENT Tourism Australia’s Risk Management Policy drives all risk management activities and establishes appetites and boundaries for risk-taking at all levels of the organisation. EY facilitates an annual strategic risk review with Tourism Australia’s Executive Leadership team, which is then discussed in detail with the Board Audit and Finance Committee. A summary of our strategic risks and risk profile is provided in Figure 9.

We also maintain a detailed risk register and track our risks quarterly. Regular risk review and reporting includes fraud risk assessments, business continuity management, procurement and insurance risk assessments and work health and safety risk assessments to identify and eliminate workplace hazards.

Figure 9: Strategic risks and risk profile categories 2019

STRATEGIC RISK PROFILE 2019

AUDIT AND EXTERNAL SCRUTINY In 2018/19, EY provided Tourism Australia’s internal audit function, supplying independent, objective assurance and advice. This year’s internal audit plan was developed in line with our strategic risks and focused on key areas of operation, including our Code of Conduct, Business Events Bid Fund program, Work Health and Safety, Transactions, China Operations and Gifts and Benefits.

The Australian National Audit Office performs Tourism Australia’s external audit function, and its report is included in the financial statements. No material audit issues or compliance breaches were noted during the year.

Tourism Australia | 103

ETHICS All new staff members are provided with an induction on our Code of Conduct, including our corporate values and governance. They are required to sign a copy of the

Code to declare they accept its provisions and commit to upholding them. We regularly update the Code and other ethics policies, which can be accessed via Tourism Australia’s intranet. We publish certain ethics policies on our corporate site in the ‘About us’ section. Ongoing

training programs are also available for staff.

In addition, all members of the Global Leadership Team are required to complete an annual compliance questionnaire.

FRAUD CONTROL Chairman’s statement on fraud control

“I am satisfied that Tourism Australia has in place appropriate fraud prevention, detection, investigation, reporting and data-collection procedures and processes, in line with its fraud risk assessment and fraud control plan. I am also satisfied that these arrangements meet

the specific needs of Tourism Australia, and that all reasonable measures to minimise the incidence of fraud, as well as investigate and recover the proceeds of fraud, have been taken. There were no reported

fraud incidents during 2018/19.”

Bob East, Chairman

FREEDOM OF INFORMATION Tourism Australia is required to comply with the Freedom of Information Act 1982. Tourism Australia received one freedom of information (FOI) requests

during 2018/19. Any FOI request we receive is published on our corporate site, tourism.australia.com, in line with the Australian Government’s Information Publication Scheme.

JUDICIAL DECISIONS AND REPORTS No judicial or tribunal decisions were made in 2018/19 in respect of Tourism Australia. No parliamentary reports were published in respect of Tourism Australia in 2018/19.

COMPLIANCE WITH FINANCE LAW Tourism Australia complied with all provisions and requirements of the PGPA Act; and with the Public Governance, Performance and Accountability Rule 2014. There were no issues of non-compliance in 2018/19.

PROCUREMENT INITIATIVES TO SUPPORT SMALL BUSINESS We support small business participation in the Australian Government procurement market. Statistics on the participation of small and medium-sized enterprises are available on the Department of Finance’s website: finance.gov.au/procurement/ statistics-on-commonwealth-purchasing-contracts

Our procurement practices support small and medium-sized enterprises by:

> Using electronic systems and processes to facilitate on-time payment, including the use of payment cards.

> Communicating in clear, simple language and presenting information in an accessible format.

> Providing standard 30-day payment terms for all suppliers.

These practices are consistent with paragraph 5.4 of the Commonwealth Procurement Rules.

CONSULTANCIES AND CONTRACTS In accordance with a 2017 Senate Order for entity contracts, we are required to list all contracts entered into that are valued at $100,000 or more (GST inclusive), on our website tourism.australia.com.

ADVERTISING AND MARKET RESEARCH Tourism Australia paid $75.1 million in advertising and market research in 2018/19.

Advertising and market research expenditure 2018/19 $millions

Advertising agencies 25.1

Market Research 2.6

Media advertising 47.4

TOTAL $75.1 million

104 | Annual Report 2018/19

TOURISM AUSTRALIA BOARD Tourism Australia is governed by a nine-person Board of Directors, which had four female members in 2018/19. As prescribed in Part 3 of the TA Act, the Board’s main responsibilities are to ensure the proper and efficient performance of Tourism Australia’s functions and to determine its policies.

In 2018/19, the Board’s areas of focus continued to be our strategic direction, streamlining our international marketing and digital marketing initiatives, and providing strong advocacy for One Voice activities with STOs and governments across Australia.

The Board is accountable for ensuring that Tourism Australia fulfils its statutory mandate, and that the organisation acts in line with the general policies, guidelines and directions of the Australian Government.

Under the Board Charter, the Board’s responsibilities include:

> Setting our strategic direction - including approving strategies and targets, and establishing policies.

> Monitoring Tourism Australia’s business.

> Communicating with the Minister for Trade, Tourism and Investment.

> Complying with general government policy as directed by the Minister for Trade, Tourism and Investment and according to Tourism Australia’s statutory obligations.

> Determining, upholding and promoting our corporate values and Code of Conduct.

> Ensuring that Tourism Australia performs its functions and exercises its powers in a manner consistent with, and designed to give effect to, the current Corporate Plan and Annual Operational Plan.

> Selecting and monitoring the performance of the Managing Director.

> Reviewing the performance of executive management.

> Ensuring our corporate governance is sound, including our risk management, legal compliance, strategic direction and organisational structure.

In addition to these responsibilities, the Board must balance Tourism Australia’s competing demands, remain independent from executive management, and consider the interests of stakeholders and the wider public.

Tourism Australia holds directors’ and officers’ liability insurance to the amount of $100 million with Comcover, the Australian Government’s general insurance fund.

The Board meets regularly. During 2018/19, six board meetings were held - one in Melbourne, one in Shanghai, China, one in Uluru and the remainder in Sydney. Industry events were held to coincide with interstate board meetings, enabling the Board to meet and discuss Tourism Australia’s activities with state and territory tourism boards as well as key tourism operators and government colleagues. Table 20 provides a summary of directors’ attendance at board meetings in 2018/19.

BOARD ACTIVITIES AND COMMITTEES

Tourism Australia | 105

Table 20. Directors’ attendance at board meetings and period of board membership

AUDIT AND FINANCE COMMITTEE Under the PGPA Act, Tourism Australia is required to have an Audit Committee. The Committee provides independent assurance and assistance to the Board on risk, performance, internal control and financial reporting responsibilities. The Committee is also responsible for advising the Board on legislative compliance, and on internal and external audit programs.

During 2018/19, four Audit and Finance Committee meetings were held. The Committee has three members - Anna Guillan AM, Andrea Staines OAM and David Seargeant. Table 21 provides a summary of directors’ attendance at Audit and Finance Committee meetings in 2018/19.

BOARD EDUCATION AND REVIEW Tourism Australia conducts an in-depth induction process for all new Board members, comprising meetings with Executive team members and the provision of detailed documentation.

An annual assessment review process is undertaken for both the Board and Audit and Finance Committee.

The Audit Chair regularly attends cross-government audit forums.

Directors’ attendance at board meetings 2018/19 Period of board membership

Board member Position title and role Meetings

attended Meetings eligible to attend

Date of commencement Date of cessation

Bob East Chair Non-executive 6 6 1 Jul 2016 31 Jul 2020

Anna Guillan AM Deputy Chair Non-executive 6 6 1 Jul 2014 31 Jul 2020

John O'Sullivan Managing Director Executive 6 6 31 Mar 2014 30 Jun 2019

Hayley Baillie Director Non-executive 6 6 12 Nov 2015 26 Nov 2021

Bradley Woods Director Non-executive 6 6 1 Aug 2017 31 Jul 2020

David Seargeant Director Non-executive 5 6 1 Aug 2017 31 Jul 2020

Andrea Staines OAM Director Non-executive 6 6 1 Jul 2016 30 Jun 2019

John Hart Director Non-executive 3 3 27 Nov 2018 26 Nov 2021

Jeff Ellison Director Non-executive 2 3 27 Nov 2018 26 Nov 2021

Kate Vale Director Non-executive 1 1 8 Oct 2015 7 Oct 2018

Frances Wong Director Non-executive 1 1 8 Oct 2015 7 Oct 2018

106 | Annual Report 2018/19

Table 21. Directors’ attendance at audit and finance committee meetings 2018/19

Directors’ attendance at audit and finance committee meetings 2018/19

Committee member Position Meetings attended Meetings eligible to attend

Anna Guillan AM Deputy Chair 4 4

Andrea Staines OAM Director 4 4

David Seargeant Director 4 4

Hervey Bay Fly and Sport Fishing, Hervey Bay, QLD

Tourism Australia | 107

EXECUTIVE REMUNERATION

REMUNERATION POLICIES FOR KEY MANAGEMENT PERSONNEL AND SENIOR EXECUTIVES Tourism Australia’s remuneration policy for key management personnel and senior executives is as directed by the Australian Government Remuneration Tribunal, local labour legislation and our own Remuneration Policy and Delegations Instrument.

Remuneration for Board members and the Managing Director is set by the Australian Government Remuneration Tribunal, while remuneration for executives and senior management is determined by the Tourism Australia Remuneration Policy. Executives and senior managers remuneration is confirmed through a common law contract.

Our Remuneration Policy outlines our approach to salary determination, that is, salary ranges are determined for each country we operate in, considering

market relativities, and based on the Hay Group Methodology (with detail on the latter provided in our Recruitment Policy). The salary range for each band is reviewed annually through external consultants Korn Ferry Hays Group. Our remuneration policy also outlines requirements related to performance assessment - with all employees assessed in an annual performance review. Our Delegations Instrument outlines governance requirements for recruitment and remuneration.

Tables 22, 23 and 24 provide a summary of executive remuneration as prescribed in paragraph 17BE of the PGPA Act, in the format specified in the Department of Finance, Annual Report for Commonwealth entities, Resource Management Guide No 136.

Table 22. Key management personnel information and remuneration 2018/19

Key management personnel - information and remuneration

Name Short-term benefits Post-

employment benefits

Other long-term benefits Termination benefits

Total remuneration $

Base salary $

Bonuses Other benefits / allowances

Superannuation contributions $

Long service leave

Other long-term benefits

Bob East 100,525 9,550 110,075

Anna Guillan AM 91,396 8,683 100,079

Hayley Baillie 50,262 4,775 55,037

Bradley Woods 50,262 4,775 55,037

David Seargeant 62,723 5,959 68,682

Andrea Staines OAM 58,261 5,535 63,796

John Hart 29,388 2,792 32,180

Jeff Ellison 29,388 2,792 32,180

Kate Vale 15,164 1,440 16,604

Frances Wong 15,164 1,440 16,604

108 | Annual Report 2018/19

Table 23. Senior executives’ information and remuneration 2018/19

Senior executives - information and remuneration

Total remuneration bands

Number of senior execs.

Short-term benefits Post-

employment benefits

Other benefits long-term Termination benefits

Total remuneration

Avg. base salary

Avg. bonuses Avg. other

benefits and allowances

Avg. super-annuation contributions

Avg. long service leave

Avg.other long-term benefits

Avg. termination benefits

Avg. total remuneration

$0 - $220,000

1 28,536 5,938 1,385 24,645 60,504

$220,001 - $345,000

$345,001 - $370,000 1 265,886 31,091 25,000 9,162 29,093 360,232

$370,001 - $395,000

$395,001 - $420,000

$420,001 - $445,000 1 305,935 36,794 59,233 10,224 19,143 431,329

$445,001 - $470,000 2 336,548 42,538 21,730 (12,665) 67,247 455,399

$470,001 - $495,000 1 366,524 40,010 37,447 10,891 28,163 483,035

$495,001 - … 1 458,241 152,502 25,000 13,269 30,054 679,066

Tourism Australia | 109

Table 24. Other highly paid staff information and remuneration 2018/19

Other highly paid staff - information and remuneration

Total remuneration bands

Number of senior execs.

Short-term benefits Post-

employment benefits

Other benefits long-term Termination benefits

Total remuneration

Avg. base salary Avg. bonuses

Avg. other benefits and allowances

Avg. super-annuation contributions

Avg. long service leave

Avg. other long-term benefits

Avg. termination benefits

Avg. total remuneration

$0 - $220,000

1 30,767 3,065 (73,617) 2,051 241,313 203,578

$220,001 - $245,000 4 209,156 11,415 1,319 13,552 235,442

$245,001 - $270,000 4 205,704 7,705 22,970 7,637 15,520 259,536

$270,001 - $295,000 6 213,106 4,218 28,311 15,545 3,368 15,669 280,218

$295,001 - $320,000 2 208,861 10,943 49,783 12,083 3,641 16,932 302,242

$320,001 - $345,000

$345,001 - $370,000 1 332,210 19,259 351,469

$370,001 - $395,000

$395,001 - $420,000

$420,001 - $445,000

$445,001 - $470,000 1 421,470 13,216 24,433 459,118

$470,001 - $495,000

$495,001 - … 1 374,117 45,676 306,461 21,688 747,942

110 | Annual Report 2018/19

Canberra Balloon Spectacular, Canberra, ACT

Tourism Australia | 111

Chair Bob East MBA

Deputy Chair Anna Guillan, AM MBA

Director Hayley Baillie

BOARD PROFILES

Bob East has more than 20 years’ experience in the tourism industry, most recently serving as the CEO of the Mantra Group for 12 years where he helped shape the Mantra Group into the largest Australian-based hotel company. He led the company to a successful ASX listing in June 2014 which culminated in its inclusion into the ASX 200 list in 2015 and managed Mantra Group’s $1.3 billion acquisition by AccorHotels, one of the world’s largest hotel operators in 2018. Bob’s experience includes serving on the boards of the Gold Coast Tourism Corporation, Queensland Tourism Industry Council, Tourism Accommodation Australia, Tourism and Events Queensland and TTF Australia. He holds a Master of Business Administration and is Chair of Tourism Australia, Chair of the Australian Venue Company, Chair of Experience Co, Deputy Chair of the Gold Coast Suns Football Club and a Board member of Sydney Metro. He has extensive experience in the accommodation sector, previously holding senior management roles with the Mirvac portfolio and the Daikyo Group. Bob was appointed to Tourism Australia’s Board in July 2016 and remains a director.

With a respected career in tourism sales and marketing, Anna Guillan is the Australia and New Zealand Regional Director of Sales and Marketing for Kerzner International, a global operator of luxury resorts. A Southern Cross University Alumnus of the Year (2010), and with a Master of Business Administration in Tourism and Hotel Management, Anna served as Vice Chair of the Australian Tourism Export Council and was acknowledged with its Outstanding Contribution to Industry Award in 2013. Anna has served on the board of Tourism and Events Queensland and is a non-executive director of CareFlight and Chair of Western Sydney Parklands Trust. She is also a co-founder and director of cancer charity The NELUNE Foundation. Anna joined Tourism Australia’s Board in July 2014 and remains a director.

Hayley Baillie co-founded Baillie Lodges in 2003 with a vision to develop a premium boutique portfolio of contemporary Australian luxury lodge experiences. To date, Baillie Lodges operates four luxury lodges in standout locations of unique natural significance: Southern Ocean Lodge on Kangaroo Island, Longitude 131° at Uluru-Kata Tjuta, Capella Lodge on Lord Howe Island and Silky Oaks Lodge in the Daintree Rainforest. All four properties appeal to the discerning global traveller and are recognised as setting new benchmarks for experiential travel. In 2013, Hayley joined the Tourism Australia Food and Wine advisory board, which was instrumental in driving the Restaurant Australia marketing campaign. Hayley is a member of the Australian Ballet and Barker College Foundations and was appointed to Tourism Australia’s Board in November 2015. She remains a director.

112 | Annual Report 2018/19

Director Andrea Staines, OAM MBA

Director Bradley Woods BIntBus

Director David Seargeant

Andrea Staines is an accomplished non-executive director with experience in listed, government, private and not-for-profit companies in the infrastructure, transport, logistics and retail service sectors. She is a former CEO of Australian Airlines, which she co-launched in 2002. This role saw Andrea become Australia’s first female CEO of a scheduled passenger airline, when she was also a member of the Qantas Executive Committee. Before this, she was the first female General Manager of Global Pricing and Inventory at Qantas, leading innovations to optimise Qantas revenue. She has also held various financial roles with American Airlines at its Dallas headquarters. Andrea currently serves on the boards of SeaLink Travel group, Freightways NZ, Uniting Care Queensland and the National Disability Insurance Agency. She has a Master of Business Administration from the University of Michigan and a Bachelor of Economics from the University of Queensland. Andrea was appointed to Tourism Australia’s Board in May 2016 and concluded her term on 30 June 2019.

For 25 years Bradley Woods has been one of Australia’s leading advocates for the hotel, hospitality and tourism industry. Bradley has been the CEO of the WA Australian Hotels Association (AHA) since 1998 and was the CEO of AHA Tasmania and AHA National Government Relations Manager. Bradley has a degree in International Business Relations. He is a board member of Tourism Accommodation Australia, and National Chair of the Commonwealth’s Tourism, Travel and Hospitality Industry curriculum committee. He is also Chair of Hospitality Group Training, which specialises in training apprentice chefs and hospitality trainees, Chair of the Australia Day Council WA and a Board Member of Ronald McDonald House Perth. Regarded as an expert in tourism, accommodation and hospitality, he has led the industry through major opportunities and crises. His experience ranges from the Tasmanian tourism sector’s response after the Port Arthur massacre, to the collapse of Ansett and responding to incidents impacting on the viability and reputation of the Australian tourism industry. Bradley joined Tourism Australia’s Board in August 2017 and remains a director.

David Seargeant has spent a lifetime in the hospitality industry and recently stepped down after 17 years as CEO and Managing Director of Event Hospitality and Entertainment Ltd (known as Amalgamated Holdings Ltd prior to 2016). He joined the company in 1988 to found Rydges Hotels and Resorts and took on the group CEO role in 2001. He is acknowledged as the creator of the QT Hotels and Resorts brand and is currently the Chair of the National Association of Cinema Operators and Deputy Chair of Tourism Accommodation Australia. David joined Tourism Australia’s Board in August 2017 and remains a director.

Tourism Australia | 113

Director John Hart, B.Com

Director Jeffrey Ellison, CA

John Hart is currently the Executive Chair for the Australian Chamber - Tourism, and the Executive Director of the Restaurant and Catering Industry Association Australia, the peak national industry association representing the interests of restaurants, cafes and caterers in Australia. John has spent over 30 years working in the hospitality industry in operational, human resources and industrial relations roles. He trained in food and beverage management at the École hôtelière de Lausanne in Switzerland, holds a Bachelor of Commerce majoring in Business Law and is currently undertaking a Master of Business Law. He is a current board member of the Australian Business Register, Western Sydney Unlimited Ltd, the Restaurant and Catering Industry Association of Australia, Food Standards Australia and New Zealand, and the National Tourism Industry Training Committee Ltd. He will also be instrumental in developing Australia’s next long term tourism strategy, as a member of the Beyond Tourism 2020 Steering Committee. John joined Tourism Australia’s Board in November 2018 and remains a director.

Jeffrey Ellison is the CEO and MD of the SeaLink Travel Group Limited. Jeff is also a Chartered Accountant, joining SeaLink following eight years in private practice. SeaLink Travel Group is ASX listed, and as Australia’s largest tourism and marine transport company, transports over 8.5 million passengers each year. With operations in SA, NSW, QLD, TAS, WA and NT, SeaLink employs 1,600 staff and operates 80 vessels and 60 coaches. Jeff is a Fellow of the Institute of Chartered Accountants and the Australian Institute of Company Directors and has been awarded a Life Membership by TTF Australia. In 2013, he won the SA Tourism Award for Outstanding Contribution by an Individual and was the 2014 Ernst & Young Entrepreneur of the Year for the Central Region. Jeff has also held appointments on the Adelaide Convention Centre Board, Tourism Australia International Industry Advisory Panel, TTF Australia and SA Tourism Commission Board. He has been a member of the SA Botanic Gardens and State Herbarium Board since 2017. Jeff joined Tourism Australia’s Board in November 2018 and remains a director.

114 | Annual Report 2018/19

Twelve Apostles, Great Ocean Road, VIC

Tourism Australia | 115

6.0 FI N A N CI A L S

Waterline Charters, Wessel Islands, NT

116 | Annual Report 2018/19

Tourism Australia | 117

CONTENTS

Cradle Mountain, Cradle Mountain-Lake St Clair National Park, TAS

Financial performance overview 119

Independent Auditor’s report 120

Statement by Officers 122

Statement of comprehensive income 124

Statement of financial position 125

Statement of changes in equity 126

Cash flow statement 128

Notes

Note 1: Overview 129

Note 2: Expenses 130

Note 3: Revenue 132

Note 4: Financial assets 134

Note 5: Non-financial assets 136

Note 6: Payables 139

Note 7: Provisions 140

Note 8: Contingent liabilities and assets 142

Note 9: Related party disclosures 143

Note 10: Key management personnel remuneration 144

Note 11: Financial instruments 145

Note 12: Other information 149

118 | Annual Report 2018/19

FINANCIAL PERFORMANCE OVERVIEW

FINANCIAL RESULTS 2018/19 Net financial expenditure for the year ended 30 June 2019 was $151.5 million based on budget foreign exchange rates, which was within 0.1 per cent of budget. Overall gross revenue exceeded budget by $0.6 million, and a similar increase in expenditure resulted in net expenditure that was in line with the budget.

The weaker Australian dollar resulted in an overall foreign exchange loss for the year of $3.9 million compared with budget parameter rates. This resulted in a $3.9 million increase in net expenditure in the statutory accounts.

REVENUE Tourism Australia’s direct revenue increased by 3 per cent to $24.4 million (2017/18: $23.6 million). This included a higher co-operative advertising revenue of $9.6 million (2017/18: $7.9 million) and lower industry contributions of $10.8 million (2017/18: $12.4 million). Industry contributions relate to trade/industry events including the Australian Tourism Exchange, Aussie Specialist Program and Corroboree Asia. Other income includes co-location rental income of $1.1 million, bank interest of $1 million and revenue from STOs for the Aussie Specialist Program and One Voice staff.

This revenue was supplemented by indirect partnership contributions of $27.6 million from STOs, airline partners and other industry participants that are not reflected in the statutory accounts. This amount includes cash contributions in co-operative marketing activities where Tourism Australia was not the banker and in-kind contributions from partners (such as flights from airline partners).

EXPENDITURE

Gross expenditure increased by 3 per cent to $179.4 million (2017/18: $173.9 million), which was primarily driven by a full year’s depreciation charge for the Dundee campaign production. A weaker Australian dollar in the key markets of China, Europe, the UK and the USA also effectively increased gross expenditure in these markets.

Remuneration costs of $35.0 million (2017/18: $33.1 million) were 6 per cent higher than last year. This was mainly due to the weaker Australian dollar which impacted overseas payroll costs, as well as an additional $0.5 million for One Voice salaries whose costs were fully recovered in other revenue. The underlying increase in remuneration costs of 2.3 per cent

primarily relates to increases in Australia (as per our Enterprise Bargaining Agreement) and higher wage growth in eastern markets.

BALANCE SHEET

FINANCIAL ASSETS A revaluation of Tourism Australia office leasehold improvements and make good obligations was performed by an independent, accredited third-party valuation expert at 31 March 2019. As a result, Net Assets increased by $0.8 million to $21 million due to the revaluation of the make good provision ($0.6 million) and the current year surplus ($0.2 million) for the year ending 30 June 2019.

The cash balance at year end was $13.6 million (2017/18: $8.1 million). The stronger cash position was driven by the cash receipt of $2.7 million foreign exchange losses from the government and lower levels of capital expenditure due to the Dundee campaign in the previous year.

Trade and other receivables were $2.3 million higher than 2017/18. Of this, trade debtors were $1.4 million higher with 100 per cent of receivables less than 30 days old. A receivable of foreign exchange losses of $3.9 million was recognised this year compared with $2.7 million in 2018.

FIXED ASSETS During the year, Tourism Australia had capital expenditure of $1.8 million, consisting primarily of brand development costs ($0.7 million) and multiple office fit-outs globally ($0.7 million). Total fixed assets at 30 June 2019 were $12.1 million (2017/18: $23 million). Overall capital investment was significantly lower than the previous year which included production costs for Dundee. Other non-financial assets of $5.5 million includes prepayments of $4.9 million (2017/18: $4.2 million) and a lease incentive of $0.6 million (2017/18: $0.7 million).

LIABILITIES Total liabilities for Tourism Australia decreased by $3.3 million to $19.1 million, driven by lower year-end suppliers’ balance of $6.8 million (2017/18: $9.9 million) with less activity undertaken late in June compared to prior year. This allowed a larger portion of invoices to be processed and paid this year. Other liabilities and employee provisions were consistent with the previous year.

Tourism Australia | 119

GPO Box 707 CANBERRA ACT 2601 19 National Circuit BARTON ACT Phone (02) 6203 7300 Fax (02) 6203 7777

INDEPENDENT AUDITOR’S REPORT

To the Minister for Trade, Tourism and Investment

Opinion

In my opinion, the financial statements of Tourism Australia (‘the Entity’) for the year ended 30 June 2019:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

(b) present fairly the financial position of the Entity as at 30 June 2019 and its financial performance and cash flows for the year then ended.

The financial statements of the Entity, which I have audited, comprise the following statements as at 30 June 2019 and for the year then ended:

• Statement by Officers; • Statement of Comprehensive Income; • Statement of Financial Position; • Statement of Changes in Equity; • Cash Flow Statement; and • Notes to the financial statements, comprising a Summary of Significant Accounting Policies and other

explanatory information.

Basis for opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Accountable Authority’s responsibility for the financial statements

As the Accountable Authority of the Entity, the Directors are responsible under the Public Governance, Performance and Accountability Act 2013 (the Act) for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards - Reduced Disclosure Requirements and the rules made under the Act. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the ability of the Entity to continue as a going concern, taking into account whether the Entity’s operations will cease as a result of an administrative restructure or for any other reason. The Directors are also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.

INDEPENDENT AUDITOR'S REPORT

120 | Annual Report 2018/19

Auditor’s responsibilities for the audit of the financial statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control; • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority; • conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern; and • evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Australian National Audit Office

Rahul Tejani

Audit Principal

Delegate of the Auditor-General

Canberra

23 August 2019

Tourism Australia | 121

STATEMENT BY OFFICERS

Statement by Officers

In our opinion, the attached financial statements for the year ended 30 June 2019 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on property maintained financial records as per subsection 41 (2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that Tourism Australia will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with the resolution of the directors.

Signed

Bob East Board Chair, Tourism Australia

22 August 2019

Signed

Mark Craig Executive General Manager Corporate Services

22 August 2019

122 | Annual Report 2018/19

Twelve Apostles Lodge Walk, Great Ocean Road, VIC

Tourism Australia | 123

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDING 30 JUNE 2019

NET COST OF SERVICES Notes

2019 $’000

2018 $’000

Budget $’000

EXPENSES

Employee benefits 2A 35,000 33,105 32,711

Suppliers 2B 125,969 127,415 130,404

Depreciation and amortisation 2C 13,616 9,317 4,500

Finance costs — 15 —

Write-down and impairment of assets 2D — 84 —

Other expenses 4,874 3,926 —

Total expenses 179,459 173,862 167,615

LESS:

OWN-SOURCE INCOME

Own-source revenue

Provision of services - external parties 3A 9,733 7,915 —

Interest on deposits 1,044 987 909

Contributions revenue 3B 10,864 12,389 —

Rental income for office sub-tenancies 1,121 1,426 —

Other revenue 3C 1,672 838 17,718

Total own-source revenue 24,434 23,555 18,627

Gains / (losses)

Non-speculative foreign exchange losses (396) (621) —

Gain on disposal of make good assets 180 — —

Other gains 36 39 —

Total (losses) / gains (180) (582) —

Total own-source income 24,254 22,973 18,627

Net cost of services 155,205 150,889 148,988

Revenue from Government 3D 155,404 150,961 148,988

Surplus attributable to the Australian Government 199 72 —

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus 579 (29) —

Total comprehensive loss attributable to the Australian Government 579 (29) —

Total comprehensive income 778 43 —

The above statement should be read in conjunction with the accompanying notes.

124 | Annual Report 2018/19

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019

Notes

2019 $’000

2018 $’000

Budget $’000

ASSETS

Financial assets

Cash and cash equivalents 4A 13,640 8,123 22,723

Trade and other receivables 4B 8,819 6,533 5,089

Total financial assets 22,459 14,656 27,812

Non-financial assets

Leasehold improvements 5A 3,011 1,999 2,909

Plant and equipment 5A 1,381 1,832 972

Intangibles 5A 7,703 19,168 11,279

Other non-financial assets 5B 5,536 4,998 4,515

Total non-financial assets 17,631 27,997 19,675

Total assets 40,090 42,653 47,487

LIABILITIES

Payables

Suppliers 6A 6,770 9,870 10,683

Other payables 6B 7,083 7,642 11,917

Total payables 13,853 17,512 22,600

Provisions

Employee provisions 7A 4,177 4,254 3,982

Other provisions 7B 1,069 674 735

Total provisions 5,246 4,928 4,717

Total liabilities 19,099 22,440 27,317

Net assets 20,991 20,213 20,170

EQUITY

Contributed equity 1,543 1,543 1,543

Reserves 3,063 2,484 2,513

Retained surplus 16,385 16,186 16,114

Total equity 20,991 20,213 20,170

The above statement should be read in conjunction with the accompanying notes.

Tourism Australia | 125

Retained earnings

Asset

revaluation surplus

2019 $’000

2018 $’000

Budget $’000

2019 $’000

2018 $’000

Budget $’000

Opening balance

Balance carried forward from previous period 16,186 16,114 16,114 2,484 2,513 2,513

Adjusted opening balance 16,186 16,114 16,114 2,484 2,513 2,513

Comprehensive income

Surplus for the period 199 72 — — — —

Other comprehensive income — — — 579 (29) —

Total comprehensive income 199 72 — 579 (29) —

Closing balance as at 30 June 16,385 16,186 16,114 3,063 2,484 2,513

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDING 30 JUNE 2019

126 | Annual Report 2018/19

Contributed equity/capital Total equity

2019 $’000

2018 $’000

Budget $’000

2019 $’000

2018 $’000

Budget $’000

1,543 1,543 1,543 20,213 20,170 20,170

1,543 1,543 1,543 20,213 20,170 20,170

— — — 199 72 72

— — — 579 (29) (29)

— — — 778 43 43

1,543 1,543 1,543 20,991 20,213 20,213

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDING 30 JUNE 2019 (CONTINUED)

Tourism Australia | 127

Notes

2019 $’000

2018 $’000

Budget $’000

OPERATING ACTIVITIES

Cash received

Appropriation 132,488 129,308 132,488

Appropriation provided by Portfolio Department 19,000 19,000 16,500

Payments from Government - FX Losses 2,653 — —

Revenue from industry sources 21,480 21,061 17,718

Interest 1,025 984 909

GST received 3,067 3,839 —

Total cash received 179,713 174,192 167,615

Cash used

Employees 34,918 32,799 32,711

Suppliers 136,700 131,908 130,404

Payments to Government - FX Gains — 5,771 —

Total cash used 171,618 170,478 163,115

Net cash from operating activities 8,095 3,714 4,500

INVESTING ACTIVITIES

Cash used

Purchase of leasehold improvement and plant and equipment 1,438 1,181 2,000

Purchase of intangibles 744 16,512 2,500

Total cash used 2,182 17,693 4,500

Net cash used by investing activities 2,182 17,693 4,500

Net (decrease)/increase in cash held 5,913 (13,979) —

Cash and cash equivalents at the beginning of the reporting period 8,123 22,723 22,723

Effect of exchange rate movements on cash and cash equivalents (396) (621) —

Cash and cash equivalents at the end of the reporting period 4A 13,640 8,123 22,723

The above statement should be read in conjunction with the accompanying notes.

CASH FLOW STATEMENT FOR THE YEAR ENDING 30 JUNE 2019

128 | Annual Report 2018/19

NOTE 1: OVERVIEW

1.1 OBJECTIVES OF TOURISM AUSTRALIA

Tourism Australia’s vision is for Australia to be the most desirable and memorable destination on earth.

Tourism Australia is a not for profit Australian Government corporate entity. Its objective is to promote tourism to and within Australia. Its revenues are sourced primarily via government funding and industry revenues. Tourism Australia’s activities to promote Australia as an international tourist destination are focused primarily overseas with the majority of expenditure incurred via Tourism Australia’s international offices.

Tourism Australia’s statutory objectives are to:

> Influence people to travel to Australia, including for events;

> Influence people traveling to Australia to also travel throughout Australia;

> Influence Australians to travel throughout Australia, including for events;

> Help foster a sustainable tourism industry in Australia; and

> Help increase the economic benefits to Australia from tourism.

While the Tourism Australia Act (2004) outlines domestic functions, Tourism Australia is not currently engaged in domestic tourism activity. This change in Tourism Australia’s remit came into effect in 2013, and is outlined in the Minister’s Statement of Expectations for Tourism Australia.

Tourism Australia's Government Outcome is to ‘grow demand and foster a competitive and sustainable Australian tourism industry through partnership marketing to targeted global consumers in key markets.’

1.2 BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements and notes have been prepared in accordance with:

> Public Governance Performance and Accountability [Financial Reporting] Rule 2015 [FRR]; and

> Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial statements have been prepared on an accrual basis and in accordance with historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance has been made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars. Values are rounded to the nearest thousand dollars unless otherwise specified.

1.3 NEW ACCOUNTING STANDARDS

No accounting standard has been adopted earlier than the application date as stated in the standard.

All new standards that were issued prior to the sign-off date and are applicable to the current reporting period have not had a material effect on the entity’s financial statements.

The entity has adopted AASB 9 Financial Instruments for the first time in 2019, the impact of such adoption has been disclosed in Note 11.

The entity will adopt AASB 15 Revenue from Contracts with Customers from 1 July 2019 and the adoption will have no material impact on its existing revenue recognition.

The entity will adopt AASB 16 Leases from 1 July 2019. The entity has undertaken a review of the future effect of the adoption of this standard. Based on this review, it is expected the adoption will have a material impact on the financial statements. It is expected that the lease assets and liabilities will both increase by $16,473k.

1.4 TAXATION

Tourism Australia is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

1.5 EVENTS AFTER THE REPORTING PERIOD

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the entity.

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NOTE 2: EXPENSES

EXPENSES

2019 $’000

2018 $’000

NOTE 2A: EMPLOYEE BENEFITS

Wages and salaries 27,848 26,670

Superannuation:

Defined benefit plans 414 480

Defined contribution plans 2,798 2,529

Leave and other entitlements 2,441 2,384

Separation and redundancies 832 354

Other employee benefits expense 667 688

Total employee benefits 35,000 33,105

Accounting Policy Accounting policies for employee related expenses is contained in Note 7A

NOTE 2B: SUPPLIERS

Services supplied or rendered

Advertising 72,482 74,258

Promotion and publicity 26,420 29,568

Films, publications and distribution 2,973 1,571

Information systems and telecommunications 10,025 9,268

Research, service fees and travel 7,653 6,608

Total goods and services supplied or rendered 119,553 121,273

Other supplier expenses

Operating lease rentals

Minimum lease payments 6,211 6,023

Workers compensation premiums 205 119

Total other supplier expenses 6,416 6,142

125,969 127,415

Operating lease commitments

One year or less 4,873 5,270

From one to five years 8,356 10,591

Total operating lease commitments 13,229 15,861

Note 7B details the future commitments for restoration expenditure to bring back leased properties to their original condition. Tourism Australia currently has 12 operating premise leases (2018: 13).

Accounting Policy An operating lease is a lease where the lessor effectively retains substantially all such risks and benefits. Operating leases are expensed on a straight line basis which is representative of the pattern of benefits from the leased assets.

Lease incentives under operating leases are recognised as a liability and amortised on a straight line basis over the life of the lease term.

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NOTE 2: EXPENSES

2019 $’000

2018 $’000

NOTE 2C: DEPRECIATION AND AMORTISATION

Depreciation:

Leasehold improvements 759 273

Plant and equipment 748 318

Leasehold improvements restoration obligation 179 104

Total depreciation 1,686 695

Amortisation:

Intangibles:

Computer software 4,950 3,859

Campaign production 6,949 4,732

Trade marks 31 31

Total amortisation 11,930 8,622

Total depreciation and amortisation 13,616 9,317

NOTE 2D: WRITE-DOWN AND IMPAIRMENT OF ASSETS

Asset write-down and impairments from:

Loss on disposal of infrastructure, plant and equipment — 3

Loss on disposal of leasehold improvements — 81

Total write-down and impairment of assets — 84

Tourism Australia | 131

NOTE 3: REVENUE

OWN-SOURCE REVENUE

2019 $’000

2018 $’000

NOTE 3A: RENDERING OF SERVICES

Rendering of services in connection with:

External parties 9,733 7,915

Total rendering of services 9,733 7,915

Accounting policy Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

> The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

> The probable economic benefits associated with the transaction will flow to Tourism Australia.

The stage of completion of contracts at the reporting date is determined by reference to the proportion of the costs incurred.

NOTE 3B: CONTRIBUTIONS REVENUE

Industry contributions 10,864 12,389

Total contributions revenue 10,864 12,389

Industry contributions reflect the actual value of industry support for Tourism Australia’s activities from direct revenue. In addition to direct revenues from the industry, joint marketing programs were undertaken. Through these programs the industry supplements funds provided by Tourism Australia for product development, visiting journalists and tactical marketing programs. Due to the nature of the programs, these funds or indirect revenue do not form part of the reported level of industry contributions for Tourism Australia, but are in addition to it.

Accounting policy Receivables for services, which have 30 day terms, are recognised at the nominal amounts due, less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 9 Financial Instruments: Recognition and Measurement.

Resources received free of charge Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of these resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

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NOTE 3: REVENUE

NOTE 3C: OTHER REVENUE

OWN-SOURCE REVENUE

2019 $’000

2018 $’000

Other revenue 1,672 838

Total other revenue 1,672 838

NOTE 3D: REVENUE FROM GOVERNMENT

Appropriation from Government 132,488 129,308

Foreign exchange supplementation receivable 3,916 2,653

Related - payments from other government bodies 19,000 19,000

155,404 150,961

Accounting Policy Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to this entity) is recognised as revenue from Government by the corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan.

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NOTE 4: FINANCIAL ASSETS

2019 $’000

2018 $’000

NOTE 4A: CASH AND CASH EQUIVALENTS

Cash at bank or on deposit 13,638 8,121

Cash on hand 2 2

Total cash and cash equivalents 13,640 8,123

Accounting Policy Cash is recognised at its nominal amount. Cash and cash equivalents includes:

a) Cash on hand; and

b) Demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

NOTE 4B: TRADE AND OTHER RECEIVABLES

Goods and services receivable

Goods and services 2,903 2,143

GST receivable from the Australian Taxation Office 1,122 446

4,025 2,589

Appropriation receivable

Appropriation foreign exchange losses receivable 3,916 2,653

Total appropriation receivable 3,916 2,653

Other receivables:

Deposits and advances 859 1,288

Interest 19 3

Total other receivables: 878 1,291

Total trade and other receivables (gross) 8,819 6,533

Less impairment loss allowance — —

Total trade and other receivables (net) 8,819 6,533

Credit terms for goods and services were within 30 days (2018: 30 days)

134 | Annual Report 2018/19

NOTE 4: FINANCIAL ASSETS

NOTE 4B: TRADE AND OTHER RECEIVABLES (CONTINUED)

Accounting Policy The entity classifies its financial assets as loans and receivables. Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised using the effective interest rate.

Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Impairment of financial assets Financial assets are assessed for impairment at the end of each reporting period.

If there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Tourism Australia | 135

NOTE 5: NON-FINANCIAL ASSETS

NOTE 5A: RECONCILIATION OF THE OPENING AND CLOSING BALANCES OF LEASEHOLD IMPROVEMENTS, PLANT AND EQUIPMENT AND INTANGIBLES (2018-19)

Leasehold improvements $’000

Plant and equipment $’000 Intangibles

$’000

Total $’000

As at 1 July 2018

Gross book value 8,423 2,735 39,994 51,152

Accumulated depreciation and impairment (6,424) (903) (20,826) (28,153)

Total as at 1 July 2018 1,999 1,832 19,168 22,999

Additions:

by purchase or internally purchased 1,141 297 744 2,182

Depreciation and amortisation (938) (748) (11,930) (13,616)

Revaluation on leasehold improvements 579 — — 579

Other movement 230 — — 230

Disposals — — (279) (279)

Total as at 30 June 2019 3,011 1,381 7,703 12,095

Total as at 30 June 2019 represented by:

Gross book value 9,889 2,915 40,459 53,263

Accumulated depreciation and impairment (6,878) (1,534) (32,756) (41,168)

Total as at 30 June 2019 3,011 1,381 7,703 12,095

All leasehold improvements were subject to a revaluation increase of $579k (2018: decrease of $29k). No indicators of impairment were found for leasehold improvements. No leasehold improvements were expected to be sold or disposed of within the next 12 months.

No indicators of impairments were found for plant and equipment. No plant and equipment is expected to be sold or disposed of within the next 12 months.

Intangible assets acquired for $279k were disposed during the year. The carrying value at the time of disposal was $279k. No indicators of impairment were found for intangibles.

Fully amortised intangible assets acquired for $296k were disposed during year. The carrying value at the time of disposal was nil. No intangibles are expected to be sold or disposed of within the next 12 months.

Accounting Policy Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000 which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by Tourism Australia where there exists an obligation to restore the property to its original condition. These costs are included in the value of Tourism Australia’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

136 | Annual Report 2018/19

NOTE 5: NON-FINANCIAL ASSETS

NOTE 5A: RECONCILIATION OF THE OPENING AND CLOSING BALANCES OF LEASEHOLD IMPROVEMENTS, PLANT AND EQUIPMENT AND INTANGIBLES (2018-19) (CONTINUED)

Revaluations Following initial recognition at cost, property, plant and equipment is carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair value as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount.

A revaluation of leasehold improvements and make good was performed by B&A Valuers, an independent valuation and asset advisory firm. The revaluation was performed at 31 March 2019 and assessed by the depreciated replacement cost approach. As this method of valuation utilises unobservable input for assessment they have been assigned level 3 input within the asset register. No other revaluations occurred at that time.

Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to Tourism Australia using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2019 2018

Leasehold improvements Lease term Lease term

Plant and equipment 3 to 10 years 3 to 10 years

Impairment All assets are assessed for indicators of impairment at 30 June. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Tourism Australia | 137

NOTE 5: NON-FINANCIAL ASSETS

NOTE 5A: RECONCILIATION OF THE OPENING AND CLOSING BALANCES OF LEASEHOLD IMPROVEMENTS, PLANT AND EQUIPMENT AND INTANGIBLES (2018-19) (CONTINUED)

Derecognition An item of leasehold improvements, plant and equipment is derecognised upon disposal or when no further economic benefits are expected from its use or disposal.

Intangibles Tourism Australia’s intangibles comprise of computer software internally developed, campaign production and trade marks.

Computer software is amortised on a straight-line basis over its anticipated useful life. The useful lives of Tourism Australia’s software is three years. All software assets have been assessed for indications of impairment as at 30 June 2019.

Campaign production is amortised on a straight-line basis over two to three years and is assessed for indications of impairment as at 30 June 2019.

Trade marks are amortised on a straight-line basis over its anticipated useful life. The useful life of trade marks is estimated at ten years. All trade marks were assessed for indications of impairment as at 30 June 2019.

NOTE 5B: OTHER NON-FINANCIAL ASSETS

2019 $’000

2018 $’000

Prepayments 4,983 4,260

Lease incentive 553 738

Total other non-financial assets 5,536 4,998

Total other non-financial assets are expected to be recovered in:

No more than 12 months 5,167 3,332

More than 12 months 369 1,666

Total other non-financial assets 5,536 4,998

138 | Annual Report 2018/19

NOTE 6: PAYABLES

2019 $’000

2018 $’000

NOTE 6A: SUPPLIERS

Trade creditors and accruals 6,770 9,870

Total supplier payables 6,770 9,870

Settlement is usually made within 30 days.

NOTE 6B: OTHER PAYABLES

Salaries and wages 1,411 1,255

Superannuation 40 36

Prepayment received/unearned income 3,736 4,167

Lease incentive 1,896 2,184

Total other payables 7,083 7,642

Accounting Policy Payables are classified as other financial liabilities and are recognised and measured at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

The liability for wages and salaries and superannuation recognised as at 30 June 2019 represents outstanding amounts and contribution for the final four days of the financial year.

Lease incentives, typically in the form of a rent-free period, are also recognised as other payables and amortised over the period of the lease on a straight-line basis.

Tourism Australia | 139

NOTE 7: PROVISIONS

2019 $’000

2018 $’000

NOTE 7A: EMPLOYEE PROVISIONS

Leave 4,177 4,254

Total employee provisions 4,177 4,254

Employee provisions are expected to be settled in:

No more than 12 months 3,305 3,292

More than 12 months 872 962

Total employee provisions 4,177 4,254

Accounting Policy Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period, minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the entity is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration, at the estimated salary rates that will be applied at the time the leave is taken. This includes Tourism Australia’s employer superannuation contribution rates, to the extent that the leave is likely to be taken during service rather than paid out on termination.

Long Service Leave has been determined using the short hand method, the estimate of the present value of the liability.

Separation and redundancy Provision is made for separation and redundancy benefit payments. Tourism Australia recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees that it will carry out the terminations. Tourism Australia's separation and redundancy costs are included in Note 2A.

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NOTE 7: PROVISIONS

NOTE 7A: EMPLOYEE PROVISIONS (CONTINUED)

Superannuation Australia: Staff of Tourism Australia are members of the Australian Government Employee Superannuation Trust (AGEST), Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or a plan of their own choice.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

Tourism Australia makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. Tourism Australia accounts for the contributions as if they were contributions to defined contribution plans.

Overseas: Superannuation for Tourism Australia offshore personnel is calculated and paid in accordance with local laws.

2019 $’000

2018 $’000

NOTE 7B: OTHER PROVISIONS

Provision for restoration obligations 1,069 674

Total other provisions 1,069 674

Other provisions are expected to be settled in:

No more than 12 months 81 81

More than 12 months 988 593

Total other provisions 1,069 674

Provision for restoration

Carrying amount 1 July: 674 735

Amounts adjusted for revaluation 50 (95)

Amounts reversed for expired leases (78) 14

Amounts restated for new leases 418 —

Unwinding of discount and change in discount rate 5 20

Closing balance 30 June 1,069 674

Tourism Australia currently has eight (2018: seven) agreements for the leasing of premises which have provisions requiring Tourism Australia to restore the premises to their original condition at the conclusion of the lease. Tourism Australia has made a provision to reflect the present value of these obligations.

Note 2B details the future commitments for rental expenditure for the leased properties.

Tourism Australia | 141

NOTE 8: CONTINGENT LIABILITIES AND ASSETS

Guarantees Total

2019 $’000

2018 $’000

2019 $’000

2018 $’000

Contingent liabilities

Balance from previous period — — — —

New contingent liabilities recognised 2,025 — 2,025 —

Total contingent liabilities 2,025 — 2,025 —

Net contingent assets/(liabilities) 2,025 — 2,025 —

During 2019, the entity gave a financial guarantee to all event winners of the Bid Fund Program.

Quantifiable contingencies At 30 June 2019, the entity had $2,025,000 quantifiable contingency against the Bid Fund Program. These possible obligations that arose from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events. The actual business events are not wholly within the control of the entity.

Unquantifiable contingencies At 30 June 2019, the entity had no unquantifiable contingencies.

Accounting Policy Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

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NOTE 9: RELATED PARTY DISCLOSURES

Related party relationships:

The entity is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel including the Portfolio Minister, Executive and other Australian Government entities.

Transactions with related parties:

In the ordinary course of business conducted under normal terms and conditions, Tourism Australia has dealt with the following related parties.

a) Ms Anna Guillan was a Director of Tourism Australia and Tourism Events Queensland for the period 1 July 2018 to 2 August 2018.

Net transactions between Tourism Australia and Tourism Events Queensland during the year totaled a net payment of $82,940 (2018: $581,768). Transactions included receipts and payments relating to co-operative marketing activities and joint rental tenancy payments.

b) Ms Kate Vale was a Director of Tourism Australia and Tourism Tasmania for the period 1 July 2018 to 17 October 2018.

Net transactions between Tourism Australia and Tourism Tasmania during the year totaled a net receipt of $36,344 (2018: $404,380). Transactions included receipts and payments relating to co-operative marketing activities.

c) Ms Andrea Staines was a Director of Tourism Australia and a non-executive director of Sealink Travel Group.

Net transactions between Tourism Australia and Sealink Travel Group during the year totaled $nil (2018: $9,500).

d) Mr Jeffrey Ellison was a Director of Tourism Australia and a non-executive director of Sealink Travel Group.

Net transactions between Tourism Australia and Sealink Travel Group during the year totaled $nil (2018: $9,500).

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NOTE 10: KEY MANAGEMENT PERSONNEL REMUNERATION Key management personnel remuneration expenses for the reporting period Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. The entity has determined the key management personnel to be Directors, Chief Executive and the Executive Officers.

2019 $’000

2018 $’000

Short-term employee benefits:

Salary 2,601 2,600

Performance bonus 345 222

Total short-term employee benefits 2,946 2,822

Post-employment benefits:

Superannuation 247 238

Total post-employment benefits 247 238

Other long-term employee benefits:

Long-service leave 20 66

Other long term benefit 266 138

Total other long-term employee benefits 286 204

Termination benefits — —

Total key management personnel remuneration expenses 3,479 3,264

Notes:

1. Note 10 is prepared on an accrual basis.

2. The total number of senior management personnel that are included in Note 10 are 17 (2018: 17).

3. The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister’s remuneration and other benefits are set by the Remuneration Tribunal and not paid by the entity.

144 | Annual Report 2018/19

NOTE 11: FINANCIAL INSTRUMENTS

Notes

2019 $’000

2018 $’000

NOTE 11A: CATEGORIES OF FINANCIAL INSTRUMENTS

Financial assets under AASB139

Loans and receivables:

Cash at bank and cash equivalents 8,123

Trade and other receivables 6,087

Total loans and receivables 14,210

Financial assets under AASB9

Financial assets at amortised cost:

Cash at bank and cash equivalents 4A 13,640

Trade and other receivables 4B 7,697

Total financial assets at amortised cost: 21,337

Total financial assets 21,337

Financial liabilities

Financial liabilities at amortised cost

Trade creditors 6A 6,770 9,870

Other payables 6B 7,083 7,642

Carrying amount of financial liabilities 13,853 17,512

Accounting Policy With the implementation of AASB 9 Financial Instruments for the first time in 2019, the entity classifies its financial assets in the following categories:

a) Financial assets at fair value through profit or loss;

b) Financial assets at fair value through other comprehensive income; and

c) Financial assets measured at amortised cost.

The classification depends on both the entity’s business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash; and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Comparatives have not been restated on initial application.

Financial assets at amortised cost Financial assets included in this category must meet two criteria:

1. The financial asset is held in order to collect the contractual cash flows; and

2. The cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

Tourism Australia | 145

NOTE 11: FINANCIAL INSTRUMENTS

NOTE 11A: CATEGORIES OF FINANCIAL INSTRUMENTS (CONTINUED) Effective interest method Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost.

Financial assets at fair value through other comprehensive income (FVOCI) Financial assets measured at fair value through other comprehensive income are held with the objective of collecting contractual cash flows, selling the financial assets and that the cash flows meet the SPPI test.

Any gains or losses as a result of fair value measurement or the recognition of an impairment loss allowance is recognised in other comprehensive income.

Financial assets at fair value through profit or loss (FVTPL) Financial assets are classified as financial assets at fair value through profit or loss where the financial assets either do not meet the criteria of financial assets held at amortised cost, or at FVOCI (i.e. mandatorily held at FVTPL), or may be designated.

Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset.

Impairment of financial assets Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12-month expected credit losses if risk has not increased.

The simplified approach for trade, contract and lease receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.

A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset.

Financial liabilities Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Financial liabilities at amortised cost Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

146 | Annual Report 2018/19

NOTE 11: FINANCIAL INSTRUMENTS

NOTE 11A: CATEGORIES OF FINANCIAL INSTRUMENTS (CONTINUED) Classification of financial assets on the date of initial application of AASB 9.

Notes

AASB 139 original classification AASB 9 new classification

AASB 139 carrying amount at 1 July 2018

$’000

AASB 9 carrying amount at 1 July 2018

$’000

Financial assets class

Cash and cash equivalents 4A Held-to-maturity Amortised Cost 8,123 8,123

Trade receivables 4B Held-to-maturity Amortised Cost 6,087 6,087

Total financial assets 14,210 14,210

Reconciliation of carrying amounts of financial assets on the date of initial application of AASB 9.

AASB 139 carrying amount at 30 June 2018 $’000

Reclassification $’000 Remeasurement $’000

AASB 9 carrying amount at 1 July 2018 $’000

Financial assets at amortised cost

Held to maturity

Cash and cash equivalents 8,123 — — 8,123

Trade receivables 6,087 — — 6,087

Total amortised cost 14,210 14,210

1. There is no change in the carrying amount of all financial assets in the transition of measurement under AASB 139 to AASB 9.

NOTE 11B: NET GAINS ON FINANCIAL ASSETS

Financial assets at amortised cost

2019 $’000

2018 $’000

Loans and receivables:

Interest revenue 1,044 987

Net gain from loans and receivables 1,044 987

Net gain from financial assets 1,044 987

The total interest income from financial assets not at fair value through profit and loss in the year ended 30 June 2019 was $1,044,000 (2018: $987,000).

Tourism Australia | 147

NOTE 11: FINANCIAL INSTRUMENTS

NOTE 11C: NET LOSSES ON FINANCIAL LIABILITIES

Financial liabilities - at amortised cost:

Exchange losses (396) (621)

Net losses financial liabilities - at amortised cost (396) (621)

Net losses from financial liabilities (396) (621)

The net interest expense from financial liabilities not at fair value through profit or loss was $396,000 (2018: $621,000).

NOTE 11D: FAIR VALUES OF FINANCIAL INSTRUMENTS

Notes

Fair Value 2019 $’000

Fair Value 2018 $’000

Financial Assets:

Cash at bank 4A 8,071 6,973

Deposits at call 4A 5,569 1,150

Receivables for goods and services 4B 8,819 6,533

Total financial assets 22,459 14,656

Financial liabilities (recognised):

Trade creditors 6A 6,770 9,870

Other payables 6B 7,083 7,642

Total financial liabilities 13,853 17,512

148 | Annual Report 2018/19

NOTE 12: OTHER INFORMATION

NOTE 12A: AGGREGATE ASSETS AND LIABILITIES

2019 $’000

2018 $’000

Assets expected to be recovered in:

No more than 12 months 39,721 40,987

More than 12 months 369 1,666

Total assets 40,090 42,653

Liabilities expected to be recovered in:

No more than 12 months 17,239 20,885

More than 12 months 1,860 1,555

Total liabilities 19,099 22,440

NOTE 12B: BUDGETARY REPORTING AND EXPLANATIONS OF MAJOR VARIANCES

Explanation of Major Departmental Variances The following provides explanations of major variances between Tourism Australia’s original budget estimates, as published in the 2018-19 Portfolio Budget Statements (PBS) and the final outcome for the financial year, as presented, in accordance with the Australian Accounting Standards. Major variances are those relevant to an analysis of the entity’s performance, not merely on numerical differences between the actual amounts and budget.

There are a number of items not incorporated into PBS estimates due to their unpredictable, uncontrollable and/or unplanned nature. These include:

> Gains or losses from foreign exchange differences reported in the Statement of Comprehensive Income and Cash Flow Statement, and

> Accounting adjustments for provision for the future make-good of leasehold improvements in leased properties reported in the Statement of Comprehensive Income and Statement of Changes in Equity.

Statement of Comprehensive Income:

> Employee benefits expense was $2,289k greater than budget due to a weakening of the Australian dollar and an increase in restructuring costs of some international offices.

> PBS estimate of suppliers have been presented in the format of suppliers and other expense in the statements. The combination of these two categories of expenses were in line with the PBS estimate.

> Depreciation and amortisation expenses were $8,799k higher than budget due to underestimated budget for Dundee campaign amortisation.

> Total own source revenue was greater than budget due to conservative budgeting on revenue from industry events and marketing partnerships.

Tourism Australia | 149

NOTE 12B: BUDGETARY REPORTING AND EXPLANATIONS OF MAJOR VARIANCES (CONTINUED)

Statement of Financial Position:

> Cash and cash equivalents were lower than budget due to decreased payables amount at the end of the reporting period.

> Trade and other receivables were mainly higher than the budget due to a higher foreign exchange loss against a weaker Australian dollar.

> Plant and equipment was higher than budget due to underestimated budget for IT equipment and furniture and fittings.

> Intangibles was lower than budget due to no major campaign production assets being produced in the year.

> Total payables was lower than budget due to lower accruals as well as reduced supplier balances at the end of the year. Major campaign activity finished earlier in the year compared to the prior year.

Statement of Cash Flows:

> Total cash received was greater than budget due to increased Working Holiday Maker funding, increased joint marketing activities and GST refund.

> Total cash used for suppliers was greater than budget due to increased funding as above and a weakening of the Australian dollar.

> Cash used to purchase capital purchases was lower due to changed timing of capital projects that occurred after the budget was prepared.

NOTE 12: OTHER INFORMATION

150 | Annual Report 2018/19

Kayaking at Whitehaven Beach, Whitsundays Islands, QLD

Tourism Australia | 151

7.0 REFEREN CES A N D A PPEN D I CES

wukalina Walk, TAS

152 | Annual Report 2018/19

Tourism Australia | 153

STAFF STATISTICS

2018/19 Staff statistics - ongoing employees (headcount)

Male Female (non Indigenous) Female (Indigenous) Total

Full time Part time Total

male

Full time Part time Total

female

(non indig)

Full time Part time Total

female (Indig)

NSW 26 0 26 60 15 75 1 1 2 103

QLD 1 0 1 1 0 1 0 0 0 2

SA 0 0 0 0 1 1 0 0 0 1

TAS 0 0 0 1 0 1 0 0 0 1

VIC 0 0 0 0 0 0 0 0 0 0

WA 0 0 0 0 0 0 0 0 0 0

ACT 0 0 0 0 0 0 0 0 0 0

Overseas 25 0 25 52 3 55 0 0 0 80

Total 52 0 52 114 19 133 1 1 2 187

2018/19 Staff statistics - non-ongoing employees (headcount)

Male Female (non Indigenous) Female (Indigenous) Total

Full time Part time Total

male

Full time Part time Total

female

(non indig)

Full time Part time Total

female (Indig)

NSW 8 0 8 6 0 6 0 0 0 14

QLD 0 0 0 0 0 0 0 0 0 0

SA 0 0 0 0 0 0 0 0 0 0

TAS 0 0 0 0 0 0 0 0 0 0

VIC 0 0 0 0 0 0 0 0 0 0

WA 0 0 0 0 0 0 0 0 0 0

ACT 0 0 0 0 0 0 0 0 0

Overseas 3 0 3 5 0 5 0 0 8

Total 11 0 11 11 0 11 0 0 0 22

Total staff 2018-19 209

154 | Annual Report 2018/19

2017/18 Staff statistics - ongoing employees (headcount)

Male Female (non Indigenous) Female (Indigenous) Total

Full time Part time Total

male

Full time Part time Total

female

(non indig)

Full time Part time Total

female (Indig)

NSW 21 0 21 55 13 68 1 1 2 91

QLD 0 0 0 0 0 0 0 0 0 0

SA 0 0 0 0 1 1 0 0 0 1

TAS 0 0 0 0 1 1 0 0 0 1

VIC 0 0 0 0 0 0 0 0 0 0

WA 0 0 0 0 0 0 0 0 0 0

ACT 0 0 0 0 0 0 0 0 0 0

Overseas 25 0 25 54 3 57 0 0 0 82

Total 46 0 46 109 18 127 1 1 2 175

2017/18 Staff statistics - non-ongoing employees (headcount)

Male Female (non Indigenous) Female (Indigenous) Total

Full time Part time Total

male

Full time Part time Total

female

(non indig)

Full time Part time Total

female (Indig)

NSW 13 1 14 17 0 17 0 2 2 33

QLD 0 0 0 0 0 0 0 0 0 0

SA 0 0 0 0 0 0 0 0 0 0

TAS 0 0 0 0 0 0 0 0 0 0

VIC 0 0 0 0 0 0 0 0 0 0

WA 0 0 0 0 0 0 0 0 0 0

ACT 0 0 0 0 0 0 0 0 0 0

Overseas 2 0 2 6 1 7 0 0 0 9

Total 15 1 16 23 1 24 0 2 2 42

Total staff 2017-18 217

Tourism Australia | 155

GLOSSARY

App An application, often as downloaded by a user to a mobile device.

Appropriation An authorisation by Parliament to spend moneys from the Consolidated Revenue Fund for a particular purpose.

Approved destination status A bilateral arrangement between the Chinese government and a destination country, allowing Chinese tourists to undertake group leisure travel to that country.

Asia Marketing Fund A fund announced in May 2012 that aims to generate greater visitation and economic returns from Asia, Australia’s fastest growing tourism region.

Assets Future economic benefits controlled by an entity because of past transactions or other past events.

Bilateral air services agreements Before an airline can operate international services to another country, the government must first negotiate a treaty-level agreement with the destination

country’s government. These treaties are known as bilateral air services agreements.

Corporate governance The process by which agencies are directed and controlled. Corporate governance is generally understood to encompass authority, accountability, stewardship, leadership, direction and control.

Depreciation A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes.

Distribution The link between the providers of tourism services and consumers.

Enterprise agreement Details employment conditions. An enterprise agreement is approved by the Fair Work Commission.

Equivalent advertising value (EAV) Calculated by measuring the column inches (in the case of print) or seconds (in the case of broadcast media) and multiplying these figures by the respective

medium’s advertising rates (per inch or per second). The resulting number is what it would have cost to place an advertisement of that size in that medium.

Estimates An agency’s expected revenues, expenses, assets, liabilities and cash flows. Estimates are prepared for each output in the agency’s budget in consultation with the Department of Finance.

Expenses The full costs of an activity, the total value of all the resources consumed in producing goods and services, or the loss of future economic benefits in the form of asset reductions or increases in an entity’s liabilities.

Famil Familiarisation visit or tour provided to journalists, travel industry members and others to allow them to experience a destination, product, experience or venue.

Fifth freedom air travel rights An airline’s right to carry traffic between foreign countries and its home country. Under the fifth freedom, an airline can carry passengers from its own country to

a second country, and from that country to a third country and so on.

Inbound tour operator A tour operator that arranges tours in its home country for people coming from overseas.

Independent travellers An individual or small group (less than 10 people), travelling and vacationing with a self-booked itinerary.

156 | Annual Report 2018/19

Open skies An international policy concept relating to the liberalisation of the rules and regulations of the international aviation industry in order to create a free-market environment for the airline industry.

Outcomes The Australian Government’s objectives for an agency or portfolio. Outcomes are desired results, impacts or consequences for the Australian community as influenced by the actions of the Australian Government. The outcomes are assessments of the end results or impacts achieved.

Out-of-home advertising Advertising that is focused on marketing to consumers when they are in public places, in transit, waiting or in commercial locations (such as in a retail venue). Out-of-home advertising formats fall into four main categories: billboards, street furniture, transit and alternative.

Net Promoter Score The percentage of promoters minus the percentage of detractors.

Partnership marketing Marketing undertaken in cooperation by at least two companies, with the objective to tap the full potential of a target market by bundling resources.

Portfolio Additional Estimates Changes in funding requirements that occur after the Australian Government Budget is presented. These changes to funding require the House of Representatives and

the Senate to consider the additional estimates.

Portfolio Budget Statements

Budget papers that inform senators and members of Parliament of the proposed allocation of resources to government outcomes by agencies within the portfolio.

Program An activity or group of activities that delivers benefits or services. Programs are the primary vehicles for government agencies to achieve the intended results of their outcomes statement.

Reconciliation Action Plan A plan that outlines efforts to develop strong and productive relationships with Indigenous peoples and provide a better future for Indigenous children.

Revenue The total value of resources earned or received to cover the production of goods and services.

Unique visitors A count of how many different people look at a website. For example, if a user leaves and comes back to the site five times during the measurement period, that person is counted as one unique visitor, but their activities would count as five ‘user sessions’ or ‘visits’.

User-generated content (UGC) Any form of content created by users of a system that is publicly made available on that system. User-generated content most often appears as supplements to

online platforms, such as social media websites.

Wide area network (WAN) A wide area network is a telecommunications network or computer network that extends over a large geographical distance.

Working Holiday Maker (WHM) visa program The Working Holiday Maker visa program is an Australian Government initiative that has been running since 1975. It is designed to foster closer ties and cultural

exchange between Australia and partner countries, with a particular emphasis on young adults. Partner countries initially comprised a relatively small number of Commonwealth countries, but the program has since grown to encompass 39 partner nations and regions from across the globe.

Tourism Australia | 157

Almonta Beach, Coffin Bay National Park, SA

158 | Annual Report 2018/19

ABBREVIATIONS AND ACRONYMS

AASB Australian Accounting Standards Board

AGEST Australian Government Employee Superannuation Trust

ASP Aussie Specialist Program

ATC Australian Tourist Commission

ATE Australian Tourism Exchange

AWA Australian Workplace Agreement

BEA Business Events Australia

CIBTM China Incentive, Business Travel and Meetings Exhibition

CSS Commonwealth Superannuation Scheme

IMHP International Media Hosting program

ITB Internationale Tourismus Börse

IVS International Visitor Survey

KPI Key performance indicator

MoU Memorandum of Understanding

NABERS National Australian Built Environment Rating System

NLTTS National Long-Term Tourism Strategy

PAES Portfolio Additional Estimates Statements

PAICE Pacific Area Incentives and Conferences Expo

PBS Portfolio Budget Statements

PGPA ACT Public Governance, Performance and Accountability Act 2013

PSS Public Sector Superannuation Scheme

PSSap Public Sector Superannuation accumulation plan

STO State and Territory Tourism Organisation

TA Act Tourism Australia Act 2004

TRA Tourism Research Australia

UNWTO United Nations World Tourism Organization

WAN Wide area network

WYSTC World Youth and Student Travel Conference

Tourism Australia | 159

TABLES AND FIGURES INDEX

Table number and description Page

1 Tourism Australia’s 2018/19 highlights 7

2 Tourism Australia’s government programs and performance metrics 11

3 Operating environment 2018/19 14

4 Market categories 17

5 Grow demand - performance criterion and results 25

6 Industry development - performance criterion and results 28

7 Tourism Australia’s awards 2018/19 41

8 UnDiscover Australia campaign results 47

9 Visit the set of Dundee: son of a legend key campaign results 49

10 Cultural Attractions of Australia 57

11 Website visitors 2018/19 59

12 Social media followers 2018/19 61

13 Significant partnerships 2018/19 62

14 Trade events 2018/19 73

15 Number of accommodation rooms in Australia 2011 to 2019 76

16 Tourism Australia industry resources 79

17 Staff engagement results 2014 to 2019 87

18 Number of work health and safety incidents 2014/15 to 2018/19 89

19 Senior manager appointments and departures 2018/19 95

20 Directors’ attendance at board meetings and period of board membership 106

21 Directors’ attendance at audit and finance committee meetings 2018/19 107

22 Key management personnel information and remuneration 2018/19 108

23 Senior executives' information and remuneration 2018/19 109

24 Other highly paid staff information and remuneration 2018/19 110

Figure number and description Page

1 Tourism 2020 implementation phases 12

2 Progress against Tourism 2020 goals 13

3 Overview of Tourism Australia’s 2018/19 strategy 15

4 Target markets and their value by 2025 17

5 Visitor numbers and spend in Australia at 30 June 2019 36

6 International aviation capacity in the year ending December 2018 74

7 Tourism Australia’s organisational structure at 30 June 2019 94

8 Tourism Australia’s governance framework 102

9 Strategic risks and risk profile categories 2019 103

160 | Annual Report 2018/19

SEIT Outback Australia, NT

Tourism Australia | 161

COMPLIANCE INDEX

PGPA rule reference Part of report Description Requirement Page

17BE Contents of annual report

17BE (a) 1.2 About us Details of the legislation establishing

the body

Mandatory 10

17BE (b)(i) 1.2 About us A summary of the objects and functions of the entity as set out in legislation Mandatory 10

17BE (b)(ii) 1.2 About us The purposes of the entity as included in the entity’s corporate plan for the reporting period Mandatory 10

17BE (c) 5.2 Enabling

legislation and responsible Minister

The names of the persons holding the position of responsible Minister or responsible Ministers during the reporting period, and the titles of those responsible Ministers

Mandatory 101

17BE (d) n/a Directions given to the entity by the Minister

under an Act or instrument during the reporting period

If applicable, mandatory n/a

17BE (e) n/a Any government policy order that applied in

relation to the entity during the reporting period under section 22 of the Act

If applicable, mandatory n/a

17BE (f) n/a Particulars of non-compliance with:

(a) A direction given to the entity by the Minister under an Act or instrument during the reporting period; or

(b) A government policy order that applied in relation to the entity during the reporting period under section 22 of the Act

If applicable, mandatory n/a

17BE (g) 2.2 Annual

Performance Statement

Annual performance statements in accordance with paragraph 39(1)(b) of the Act and section 16F of the rule

Mandatory 24

17BE (h), 17BE (i) n/a A statement of significant issues reported to

the Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with finance law and action taken to remedy non-compliance

If applicable, mandatory n/a

17BE (j) 5.5 Board profiles Information on the accountable authority, or each member of the accountable authority, of the entity during the reporting period

Mandatory 112

17BE (k) 4.5 Organisation

structure

Outline of the organisation structure of the entity (including any subsidiaries of the entity) Mandatory 94

162 | Annual Report 2018/19

PGPA rule reference Part of report Description Requirement Page

17BE (ka) 7.1 Staff statistics Statistics on the entity’s employees on an ongoing and non-ongoing basis, including the following:

(a) Statistics on full-time employees;

(b) Statistics on part-time employees;

(c) Statistics on gender;

(d) Statistics on staff location

Mandatory 154

17BE (l) 7.6 Contacts Outline of the location (whether or not

in Australia) or major activities or facilities of the entity

Mandatory 172

17BE (m) 5.3 Governance

framework and practices

Information relating to the main corporate governance practices used by the entity during the reporting period

Mandatory 102

17BE (n), 17BE (o) 6.2 Financial Statements For transactions with a related Commonwealth entity or related company where the value for

the transaction, or if there is more than one transaction, the aggregate of those transactions is more than $10,000 (inclusive of GST):

(a) The decision-making process undertaken by the accountable authority to approve the entity paying for a good or service from, or providing a grant to, the related Commonwealth entity or related company; and

(b) The value of the transaction, or if there is more than one transaction, the number of transactions and the aggregate value of the transactions

If applicable, mandatory 116

17BGE (p) 4.6 Organisation

changes

Any significant activities and changes that affected the operation or structure of the entity during the reporting period

If applicable, mandatory 95

17BE (q) n/a Particulars of judicial decisions or decisions

of administrative tribunals that may have a significant effect on the operations of the entity

If applicable, mandatory n/a

17BE (r) n/a Particulars of any reports on the entity given by:

(a) The Auditor-General (other than a report under section 43 of the Act); or

(b) A Parliamentary Committee; or

(c) The Commonwealth Ombudsman; or

(d) The Office of the Australian Information Commissioner

If applicable, mandatory n/a

Tourism Australia | 163

PGPA rule reference Part of report Description Requirement Page

17BE(s) n/a An explanation of information not obtained

from a subsidiary of the entity and the effect of not having he information on the annual report

If applicable, mandatory n/a

17BE(t) 5.4 Board

activities and committees

Details of any indemnity that applied during the reporting period to the accountable authority, any member of the accountable authority or officer of the entity against a liability (including premiums paid, or agreed to be paid, for insurance against the authority, member or officer’s liability for legal costs)

If applicable, mandatory 105

17BE (ta) 5.5 Executive

remuneration Information about executive remuneration Mandatory 108

17BF Disclosure requirements for government business enterprises

17BF(1)(a)(i) n/a An assessment of significant changes in the

entity’s overall financial structure and financial conditions

If applicable, mandatory n/a

17BF(1)(a)(ii) n/a An assessment of any events or risks that could

cause financial information that is reported not to be indicative of future operations or financial conditions

If applicable, mandatory n/a

17BF(1)(b) n/a Information on dividends paid or recommended If applicable,

mandatory n/a

17BF(1)(c) n/a Details of any community service obligations the

government business enterprise has including:

(a) An outline of actions taken to fulfil those obligations; and

(b) An assessment of the cost of fulfilling those obligations

If applicable, mandatory n/a

17BF (2) n/a A statement regarding the exclusion of

information on the grounds that the information is commercially sensitive and would be likely to result in unreasonable commercial prejudice to the government business enterprise

If applicable, mandatory n/a

COMPLIANCE INDEX

164 | Annual Report 2018/19

Boolimba Bluff, Carnarvon National Park, QLD

Tourism Australia | 165

DETAILED INDEX

A abbreviations and acronyms, 159 accommodation, 13, 76-7 accountability, 103, 129, 156 Adobe platform, 90 Advance Program, 64, 65 Airline Marketplace campaign, 46-7 Airlines, see aviation Annual Performance Statement, 24 Aquatic and Coastal campaign, 96, arrivals growth, 21-2, 25-6, 36 assets

contingent, 142 financial, 119, 125, 134-135, 145-148 fixed, 119 non-financial, 119, 125, 136-138 audits, 100, 103 Independent Auditor’s Report, 120 Audit and Finance Committee, 100, 102-103, 106-107 Aussie News Today campaign, 38-39 Aussie Specialist Ambassador Program, 70 Aussie Specialist Program, 30, 33, 38-39, 63, 68, 69-70, 78, 119 Austrade, 12, 30, 33, 63, 68, 76 Australia, Inc., 50-51 Australia Next magazine, 67 australia.cn website, 27, 45, 59 australia.com website, 7, 27, 32, 44-45, 59 Australian Tourism Exchange, 23, 30, 57, 68, 72-73, 119 Australian Wildlife Journeys, 53 aviation

growth, 13, 26 new capacity, 13-14, 26, 46, 62-63, 68, 74-77 partnerships, 62, 63 route development, 30 awards, 38-41, 49, 88

B balance sheet, 119 Board activities, 105

Charter, 105 committees, 105 education and review, 106 meetings, 106, 107 profiles, 112-114 broadcast activity, 49, 58 budgetary reports, 149-50 business evaluations, 103

business events, Advance program, 64-65 customers, 16, 67 distribution development, 15, 64, 66-67 marketing, 15-17, 41 markets, 17 overview, 64

Business Events Australia, 64, 66-7, 79, 159 Business Events Bid Fund Program, 15, 21, 29, 64

C campaigns, 44-52 Asia, 29, 47, 63 Australia Inc, (youth) 23, 35, 50-51, 58-59, 63, 79,

85, 90 business events, 67 Europe, 29, 47, 63 Inspirations Australiennes, 35 public relations, broadcast and media hosting, 58 Restaurant Australia, 96, 112 There’s nothing like Australia, 29, 45, 63, 67, 79 Too Australian for Words, 21-22, 27, 29, 34, 47, 63, 85, 90 Travel like a local Aussie, 35 UK, 29, 46 UnDiscover Australia, 46-47, 58, 63 USA, 29, 63 Visit the set of Dundee: Son of a Legend, 27, 29, 33, 35, 49, 58 Canadian visitors, 34, 37 Cash Flow Statement, 128 Chairman

Letter of transmittal, 3 profile, 112 report, 21 Statement on fraud control, 104 China Eastern Airlines, 62 China Southern Airlines, 62 Chinese market, 36, 47, 63-64, 70-71, 74 Chinese social media, 59, 61 Code of Conduct, 104 compliance-based training, 91 compliance index, 162 conferences, 21, 64, 73, 78 consultancies, 104 consumers see also visitors

demand, 25-6, 44 digital platforms, 69, 85, 93 research, 22, 25, 27, 44, 81

166 | Annual Report 2018/19

survey, 27, 29 target, 16 contacts, 172 contingent liabilities and assets, 142 contracts, 103-4, 129, 132 corporate governance, 98, 103, 105 corporate infrastructure, 85, 90 Corroboree Asia, 71 creative and digital agencies, 15, 29, 44 Cultural Attractions of Australia, 23, 30, 57 customers, see consumers; visitors cybersecurity, 90

D Destination Australia conference, 23, 30, 68, 78, 81 Development Dimensions International (DDI), 91 digital, 27, 30, 58-9, 69, 85

platforms, 90 marketing campaigns, 30, 59, 65, 90, 105 digital strategy, 59 Directors, 105-6, 112-114, see also Board Discover Aboriginal Experiences program, 53-55 distribution development, 66-67 distribution partners, 46, 49, 62-63, 68 diversity, 7, 30, 85-6 Dundee campaign, 22, 27, 29, 38, 49, 58, 63, 85, 90

E

earned advertising value (EAV), 25, 27 economic outlook, 14, 26 Emerging Leaders of Inbound Tourism Excellence (ELITE) program, 91 employees, see staff enabling legislation, 101 energy efficiency, environmental performance, 93 entity purpose, 10, 24 ethics, 104 Etihad Airways, 34, 62 European visitors, 17, 23, 36-37, 79 events management system, 90 Executive Leadership team, 85-86, 91, 96-97 executive reports

Chairman’s report, 21 Managing Director’s report, 22 expenditure business events, 64

Tourism Australia, 119 tourists, see spending by visitors

external audit, 100, 103, 106 external scrutiny, 104

F

Facebook, 7, 27, 44, 49, 59, 61 Finance law, compliance, 104 Financial instruments, 129, 145-148 financials,

assets, 134, 136 cashflow, 128 expenditure, 130 performance overview, 129 revenue, 132 statements, 116-150 Fixed assets, 119 Flight Centre, 63 foreign investment, 76 fraud control, 104 freedom of information, 104 French visitors, 17, 37 Friends of Australia program, 34, 58

G G’Day USA, 34, 68, 71 gender diversity in employment, 7, 30, 86 German visitors, 17, 37 global changes affecting tourism, 14, 21, 26 governance 103-104 government links, 30, 33, 63, 76, 103, 106 government outcome and programs, 10 Greater China Showcase, 33 grow demand, 24-27, 44, 129

H Health and Safety Committee, 89 highlights, 6-7, 27, 29, 32-35 Hong Kong visitors, 17, 37

I incentive events, 64, 67 incidents and disputes, 89 India Travel Mission, 32 Indian visitors, 17, 37 Indigenous staff, 86 Indonesian visitors, 17, 37 industry development, 28-30, 62, 68 industry engagement, 30, 78

Tourism Australia Open Day, 73, 78 Working with Tourism Australia, 79 Industry Relations team, 78

Tourism Australia | 167

DETAILED INDEX

Instagram, 7, 27, 44, 49, 61 internal audit, 103-4 International Media Hosting Program (IMHP), 27 international trade shows, 66, 72 International Visitor Survey (IVS), 25, 36 international visitors, 7, 36-37 investment attraction, 30, 76-77 Investment Attraction Partnership Group, 76 investment in tourism infrastructure, 68,76 investor tools, 77 Italian visitors, 17, 37

J

Japanese visitors, 17, 37 JTB, 62-3 judicial decisions and reports, 104

K key distribution partners, 46, 49, 62-63, 68 key management personnel remuneration, 108

L

legislation, 3, 89, 101, 103 legislative functions, 10 leisure customers, 16-17 Let the audience decide Instagram campaign, 61 liabilities, 119, 125, 142 LinkedIn, 81

M MakeMyTrip, 46, 63 Malaysian visitors, 17, 37 Managing Director, 96 Managing Director’s report, 22 marketing

awards, 38-41 campaigns, see campaigns communications, effectiveness, 27 global changes, 14 purpose, 10, 15, 27, 29 media and influencer hosting, 44, 58 Minister for Trade, Tourism and Investment, 32, 71, 94, 101-103, 105

N Net Promoter Score (NPS), 11, 28, 30, 87 non-financial assets, 136

O One Voice, 63 operating environment, changes in, 14

operational planning processes, 103 organisational capability, 90 organisational changes, 95 organisational purpose, 10 organisational structure, 94 -5

restructure, 95

P Parliamentary accountability, 101 partnerships airlines, 62

Austrade, 63, 76 Australian Tourism Exchange, 72 distribution, 30, 63 marketing, 10, 29, 44, 49 State and Territory Organisations, 69, 72, 81 payables, 139 performance

analysis, 26,29 annual statement, 24 corporate governance overview, 100 environmental, 93 financial, 119, see also financials grow demand, 25, 29, 44 industry development, 28, 68 management overview, 83-5 staff, 86 photo shoot - Discover Aboriginal Experiences, 54 procurement initiatives, 104 programs, 10-11 project planning, 103 Protective Security Policy Framework, 90 provisions, 140 public relations program, 58, 67

Q Qantas, 26, 35, 48-9, 62, 75 Quarterly Brand Tracker, 27

R Reconciliation Action Plan (RAP), 86 related party disclosures, 143 remuneration, 108-110, 144

key management personnel, 108-110, 144 policies, 108 research, 27, 44 responsible minister, 101 revenue, 132 risk management, 103 Routes Asia, 73

168 | Annual Report 2018/19

S

security, 90 Signature Experiences of Australia, 23, 30, 53-54, 57 Singapore Airlines, 46-7, 62, 71 Singapore visitors, 26, 37 small business participation, 104 social media, 23, 27, 30, 44, 58, 61 South Korean visitors, 17, 26, 37 spending by visitors, 6, 13, 25-26, 29, 49 staff

attracting and retaining, 88 diversity, 86 engagement, 87 Incidents and disputes, 89 Indigenous participation and employment, 86 Net Promoter Score, 87 performance, 88 statistics, 86 training, 91 wellbeing, 89 workforce planning, 91 work health and safety, 89 stakeholder satisfaction, 28-29 Statement of Changes in Equity, 126 Statement of Comprehensive Income, 124 Statement of Financial Position, 125 strategy, 12-13, 15

T target customers, 16-17 target markets, 16-17, 25-26 TAway, 88 technology, 30, 90, 95 There’s nothing like Australia campaign, 29, 45 , 67 Tourism Australia

goal, 10 overview, 10 purpose, 10 strategy, 15 values, 10 vision, 10 Tourism 2020 goal, 12 Tourism Australia Act 2004 (TA Act), 10, 101, 129 Tourism Australia Corporate Plan 2018-22, 3, 24, 28 tourisminvestment.com.au, 77 trade events, 64, 68, 72-73 trade shows, 66, 72 training,

staff, 88-91, 103-4 frontline travel sellers, 30, 33-34, 66, 68-70 Twitter, 7, 27, 44, 61, 81, 85

U UK visitors, 17, 37, 50 UnDiscover Australia, 46-47 USA visitors, 17, 22, 36, 49

V Virgin Australia, 32, 35, 62, 71 Visit the Set of Dundee: Son of a Legend, 49 visitors

arrivals growth, 21-22, 26, 36-37 business events, 64 expenditure, 36-37 marketing, see campaigns numbers, 36-37

W Walkabout Japan, 34, 73 waste management, 93 websites, 25, 45, 79 Woman Ahead Mentoring Program, 91 women’s development, 86, 91 work health and safety, 89, 103 workforce, see staff workshops, 66, 78 World Routes, 75

Y youth campaigns, 44, 50, 58, 79

Tourism Australia | 169

END NOTES

1 United Nations World Tourism Organisation, World Tourism Barometer, May 2019.

2 Deloitte, Tourism and Hotel Market Outlook 2017.

3 Tourism Research Australia, Tourism Satellite Account Summary of Key Results 2017-18.

4 The 2009 benchmark is derived from the 2020 Tourism Industry Potential, which preceded Tourism 2020.

5 While the TA Act outlines domestic functions, Tourism Australia is not currently engaged in domestic tourism marketing activities. This change in Tourism Australia’s remit came into effect in 2013, and is outlined in the Minister for Trade, Tourism and Investment’s Statement of Expectations for Tourism Australia.

6 Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.8 Foreign Affairs and Trade Portfolio, p 147.

7 Tourism Research Australia, International Visitor Survey, June 2019.

8 Tourism Research Australia, Tourism Forecasts 2019, September 2019.

9 Bureau of Infrastructure, Transport and Regional Economics, December 2018.

10 STR, Australia and New Zealand Hotel Review, June 2019 (strglobal.com).

11 Estimated at 3.7 per cent, International Monetary Fund, January 2019.

12 United Nations World Tourism Organisation, World Tourism Barometer, May 2019.

13 Tourism Research Australia, Tourism Satellite Account Summary of Key Results 2017-18.

14 Analysis of year on year media expenses of our key markets, data provided by our media agency, UM (Universal McCann).

15 International Civil Aviation Organisation, June 2019; Bureau of Infrastructure, Transport and Regional Economics, June 2019.

16 AC Nielsen, Consumer Confidence Board, June 2019.

17 Tourism Research Australia, Tourism Forecasts 2019, September 2019.

18 Tourism Australia, Consumer Demand Project, June 2019.

19 Tourism Australia, Satisfaction Survey, June 2019.

20 Tourism Research Australia, Tourism Forecasts 2019, September 2019.

21 New routes committed to and announce; in 2018/19: Virgin Australia: Hong Kong to Sydney; Jetstar: Seoul-Gold Coast (commencing 3 times a week operation from December 2019); ANA: Tokyo (Narita) to Perth (commencing daily operations from Sep-19); Qantas: Chicago to Brisbane (commencing April 2020 with 4 flights per week).

170 | Annual Report 2018/19

22 The strategy behind the campaign was based on research from Tourism Australia’s Consumer Demand Project with the UnDiscover Australia campaign creative informed by bespoke research undertaken by Pollfish. This research showed that familiarity and fashionability are driving holiday decision-making across South and Southeast Asia and that travellers from this region are seeking destinations and experiences that are ‘fashionable’ by virtue of being ‘unusual’.

23 Key distribution partners: About Australia, Qantas Vacations / Helloworld, Aspire Down Under, Down Under Endeavours, Flight Centre USA (Liberty Travel), Goway Travel, Swain Destinations, Springboard Vacations.

24 Australian Bureau of Statistics, Overseas Arrivals and Departures, June 2019.

25 Tourism Research Australia, International Visitor Survey, June 2019.

26 Forward Keys, Forward bookings data for Australia July to December 2019.

27 Department of Infrastructure and Regional Development, Aviation Data, March 2019.

28 Tourism Australia, Consumer Demand Project, June 2019.

29 Thirteen new friends also joined the program this year including Luke Hemsworth, Actor (US), Renee Bargh, TV Presenter (US), Jason Dundas, TV Presenter (US), Julia Bradbury, TV Presenter (UK), Angelica Cheung, Media Personality (China), Jeremy and Katinka Somers, Designers and trend commentators (US), Margaret Zhang, Photographer, Director and Writer (US/China), Analiese Gregory, Chef (AU), Jo Barrett, Chef (AU), Duncan Welgemoed, Chef (AU), Nick Stone, Entrepreneur, BlueStone Lane (US) and Mr Craig Willis, Chef and Restaurateur (China).

30 Department of Infrastructure and Regional Development, Aviation Data, December 2018.

31 STR, June 2019.

32 The key Australian destinations are Adelaide, Brisbane, Canberra, Darwin, the Gold Coast, Hobart, Melbourne, Perth, Sydney and Tropical North Queensland (including Cairns).

33 Comment from Destination Australia delegate - Event satisfaction survey at this event was anonymous.

34 Comment from Destination Australia delegate - Event satisfaction survey at this event was anonymous.

35 In addition, we also employ Aussie Specialist Agents and ‘One Voice’ staff through arrangements with state and territory tourism organisations.

36 Replacing dual screen monitors (2 amps x 122 = 244 amps) to single screen (1.5amps x 122 = 183 amps), a saving of 61 amps, decreasing our electricity footprint.

Tourism Australia | 171

CONTACTS

AUSTRALIA Sydney Level 29, 420 George Street Sydney NSW 2000 Telephone: +61 2 9360 1111

CHINA 5F, Building 9, No.1262, West Yan’an Road, 200052 Shanghai, China Telephone: +86 21 6010 3988

GERMANY Neue Mainzer Strasse 22 D 60311 Frankfurt/Main Telephone: +49 69 274 00622

HONG KONG Room 2405, 24th Floor, Harbour Centre, 25 Harbour Road Wanchai Telephone: +852 2531 3801

INDIA Office 97, 9th Floor 3rd North Avenue, Maker Maxity Bandra Kurla Complex, Bandra (East) Mumbai 400021 Telephone: +91 22 6628 0200

INDONESIA Tourism Australia, Jakarta The Plaza Office Tower 41st Floor, Unit A2 Jl. M. H. Thamrin Kav. 28-30 Jakarta 10350 Telephone: AVAILABLE JULY 2019

JAPAN 12F Sanno Park Tower, 2-11-1, Nagatacho, Chiyoda-ku, Tokyo 100-6112 Tel: +81 3 6205 1202

MALAYSIA Suite 12-1, Faber Imperial Court Jalan Sultan Ismail 50250 Kuala Lumpur Telephone: +60 3 2786 7999 Facsimile: +60 3 2070 4302

NEW ZEALAND Level 3 125 The Strand Parnell, Auckland 1001 Telephone: +64 9 337 0448

SINGAPORE 101 Thomson Road United Square #08-03 Singapore 307591 Telephone: +65 6255 4555

UK 6th Floor Australia Centre Melbourne Place/Strand London WC2B 4LG Telephone: +44 20 7438 4600

USA Suite 3150 2029 Century Park East Los Angeles, California 90067 Telephone: +1 310 695 3200

172 | Annual Report 2018/19

Email: ask.us@tourism.australia.com

australia.com australia.cn aussiespecialist.com tourism.australia.com

Facebook.com/seeAustralia Instagram.com/Australia weibo.com/seeaustralia

twitter.com/australia twitter.com/tourismAus twitter.com/meetinaustralia

CONTACT OFFICER For more information about this report, please contact:

Leo Seaton Corporate Affairs, Government and Industry

Tourism Australia GPO Box 2721 Sydney NSW 1006 Australia

Telephone: +61 2 9360 1111

This report can be accessed online at tourism.australia.com

ADDITIONAL INFORMATION SOURCES Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.9 Foreign Affairs and Trade Portfolio

Tourism Australia Corporate Plan 2018-22

FREEDOM OF INFORMATION Tourism Australia is a prescribed authority under the Freedom of Information Act 1982. Tourism Australia’s contact officer for freedom of information requests is Mark Craig, Executive General Manager - Corporate Services.

©Copyright Commonwealth of Australia

This work is copyright. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced without prior written permission from the Commonwealth. Requests and enquiries concerning reproduction and rights should be addressed to Tourism Australia, GPO Box 2721, Sydney NSW 1006 or ask.us@tourism.australia.com

Designed by Amanda Lukac

Compiled and written by Corporate Planning, Tourism Australia

Edited by Rachel Sullivan Rachel.sullivan@optusnet.com.au

Tourism Australia | 173

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