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Annual Report 2016/17 Australia.Com | Australia.Cn | Tourism.Australia.Com | Businesseventsaustralia.Com About This Annual Report annual report 2016/17 australia.com | australia.cn | tourism.australia.com | businesseventsaustralia.com about this annual report This report details Tourism Australia’s operations and reviews our performance against the objectives and goals set out in the Tourism Australia Corporate Plan 2016–20 and the Portfolio Budget Statements 2016–17: 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 activities across the globe, highlighting our activities and successes in the countries where we operate. Cover: Tourism Australia and drone manufacturer DJI co-sponsored a competition to inspire aerial photographers from around the world to share, enjoy and experience new creative perspectives on Australia. The Australia from Above contest was run in partnership with SkyPixel – the world’s most popular aerial photography community – and received more than 6,000 submissions. Perth based Kyle Bowman of Airloft Aerial Photography and Videography won the competition with his image, Refreshing places to float, which featured Wyadup Spa Pool, near Yallingup in Western Australia. Inside cover: Kayaking at Whitehaven Beach, Whitsunday Islands, QLD TOURISM AUSTRALIA contents 1.0 ABOUT US 04 1.1 Overview 05 – Letter of transmittal – 1.2 Our strategy – Tourism 2020 07 14 October 2017 2.0 2016/17 OVERVIEW 11 The Hon. Steven Ciobo MP, 2.1 Operating environment 12 Minister for Trade, Tourism and Investment 2.2 Executive reports 16 Parliament House 2.3 Performance summary 20 Canberra ACT 2600 2.4 Key events 22 2.5 Visitor numbers and spend 24 Dear Minister 2.6 Awards 26 I have pleasure in presenting the 12th annual 3.0 PERFORMANCE IN DETAIL 30 report of Tourism Australia for the reporting Australian Government programs: period 1 July 2016 to 30 June 2017. 3.1 Grow demand 31 3.2 Industry development 66 The report has been prepared in accordance with section 39 of the Tourism Australia Act 4.0 MANAGING OUR ORGANISATION 78 2004; section 46 of the Public Governance 4.1 Performance overview 79 Performance and Accountability Act 2013; 4.2 People 80 and Finance Orders. 4.3 Organisational capability 84 4.4 Environmental performance 88 Yours sincerely 4.5 Organisational structure 89 4.6 Organisational changes 91 4.7 Executive Leadership Team profiles 92 5.0 CORPORATE GOVERNANCE 94 5.1 Performance overview 95 5.2 Enabling legislation and responsible minister 96 5.3 Governance framework and practices 97 Bob East 5.4 Board activities and committees 102 Chairman 5.5 Board profiles 104 6.0 FINANCIALS AND KPIs 107 6.1 Financial performance overview 108 6.2 Financial statements 110 6.3 Annual Performance Statement 150 7.0 REFERENCES AND APPENDICES 157 7.1 Glossary 158 7.2 Abbreviations and acronyms 160 7.3 50 years of destination marketing 162 Timeline 164 7.4 History 166 7.5 Alphabetical index 168 7.6 Tables and figures index 170 7.7 Compliance index 172 7.8 Contacts 174 at a glance 2016/17 HIGHLIGHTS Overnight spend by travellers $103.2 BILLION Spend by international travellers $40.6 MILLION Number of international visitors to Australia 8.5 MILLION Partnership marketing revenue contributed by the tourism industry $73 MILLION Return on investment for every dollar invested in tourism promotion $16:1 Stakeholders’ satisfaction with our work 95% Unique visitors to australia.com 17.6 MILLION Unique visitors to Tourism Australia and partner websites 32.9 MILLION Fans of Tourism Australia’s Facebook page 7.9 MILLION Instagram followers 2.7 MILLION Twitter followers 0.6 MILLION Weibo followers 0.7 MILLION Staff engagement 90% Corporate costs as a percentage of total expenditure 8.3% Gender diversity, male: female 30:70 MOOD OF THE NATION REPORT In 2016, Tourism Australia undertook a study to identify opportunities for the Australian tourism industry to improve how we tell our story. The Mood of the Nation study found that while Australians recognise the importance and benefits of our industry, they consistently misjudge its size and value, with three-quarters of respondents underestimating 94% 83% the economic value of Australian tourism. Educating the public about of Australians believe of Australians are the overall value of tourism to Australia’s economy is imperative to international tourism proud of the way ensuring a successful and sustainable future for Australian tourism. is good for our country Australia is promoted 2 | TOURISM AUSTRALIA Bay of Fires Lodge Walk, Abbotsbury Peninsula, Mount William National Park, TAS ANNUAL REPORT 2016/2017 | 3 1.0 about us IN THIS SECTION 1.1 Overview 05 1.2 Our strategy – Tourism 2020 07 01 about us Mary River National Park, NT 4 | TOURISM AUSTRALIA 1.1 overview 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). OUR VISION OUR VALUES Our vision is for Australia to be the most desirable Our values support our vision. They are the essence of and memorable destination on Earth. our identity and provide the guide to our behaviour and relationships we have with our customers and partners. OUR ORGANISATIONAL PURPOSE They are: Our aim is to grow demand and foster a competitive United | we are one team and sustainable Australian tourism industry through partnership marketing to targeted global consumers Positive | we are optimistic 1 in key markets. Genuine | we are authentic OUR MARKETING PURPOSE Commercial | we deliver results Our marketing purpose is to invite the world to Innovative | we are creative thinkers experience the Australian way of life. OUR LEGISLATIVE FUNCTIONS AND DELIVERABLES OUR GOAL Under the TA Act, Tourism Australian’s main functions Our goal is to achieve more than $115 billion are to: in overnight tourism spend by 2020 (up from $70 billion 2 in 2009). > Increase potential travellers’ awareness of Australia as a destination We share this goal with the Australian tourism > Increase potential domestic travellers’ industry and federal, state and territory governments, awareness of Australia as a place to travel to maximise tourism’s contribution to the Australian people. > Increase both international and domestic potential travellers’ knowledge of Australia > Increase both international and domestic potential travellers’ desire to travel to and throughout Australia 3 > Conduct research into, and analyse international and domestic travel > Communicate effectively with the Australian tourism industry on matters that may affect it > Increase awareness among Australians of the contribution tourism makes to Australia’s economy, society and environment > Report on trends in international and domestic travel. 1 This purpose is identical to our Australian Government outcome, as outlined in the Portfolio Budget Statements. 2 The 2009 benchmark is derived from the 2020 Tourism Industry Potential, which preceded the Tourism 2020 strategy. 3 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. ANNUAL REPORT 2016/2017 | 5 1.0 about us OUR AUSTRALIAN GOVERNMENT OUTCOME AND PROGRAMS Each year, Australian Government agencies are required to identify the programs they plan to undertake, and the desired outcomes of those programs as influenced by the actions of the Australian Government. Programs are the vehicles for agencies to deliver on their outcomes. 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’. 1 This outcome was delivered through two programs: 1. ‘Grow demand’ 2. ‘Industry development’. HOW WE MEASURE THE SUCCESS OF OUR PROGRAMS Goal: Increase overnight tourism expenditure to more than $115 billion by 2020 Program Measure Grow demand Overnight tourism spend Total international spend Total international spend by visitors from Tourism Australia markets Total international spend by leisure visitors from Tourism Australia markets Total international spend by business events visitors from Tourism Australia markets Earned advertising value Total unique visitors to Tourism Australia websites Return on marketing investment Industry development Stakeholders indicate that Tourism Australia adds value to their business Table 1: Tourism Australia’s government programs and performance metrics AC/DC Lane, Melbourne Laneways, VIC 1 Portfolio Budget Statements 2016–17; Budget Related Paper No. 1.9 – A Foreign Affairs and Trade Portfolio, p 159. 6 | TOURISM AUSTRALIA 1.2 our strategy– tourism 2020 Tourism 2020 is a whole-of-government and PERFORMANCE AGAINST TOURISM 2020 industry strategy designed to build the resilience and At 30 June 2017, overnight visitor expenditure reached competitiveness of Australia’s tourism industry and $103.2 billion, up 7 per cent on the previous year. Recent increase its contribution to the Australian economy. forecasts indicate overnight visitor spend will reach $131 billion by 2020. 1 The Tourism 2020
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