Tourisâ Victoriå a NNUAL R EPORT 1999-2000
Touris VictoriŠA NNUAL R EPORT 1999-2000
visitvictoria.com Touris VictoriÅ
55 Collins Street Melbourne 3000 Victoria Australia GPO Box 2219T Melbourne 3001 Telephone (03) 9653 9777 Facsimile (03) 9653 9744
23 October 2000
The Hon John Pandazopoulos MP Minister for Major Projects and Tourism 55 Collins Street Melbourne Vic 3000
Dear Minister
Tourism Victoria Annual Report 1999-2000
I am pleased to submit to you the Annual Report of Tourism Victoria for the year ended 30 June 2000.The report has been prepared in accordance with the Tourism Victoria Act 1992 and the Financial Management Act 1994.
Yours sincerely
JOHN KENNEDY Chairman
visitvictoria.com Profil´
T OURISM V ICTORIA ISA VIBRANT AND DYNAMIC ORGANISATION
ACTIVELY MARKETING V ICTORIA AS A PREMIER TOURISM DESTINATION WITHIN
THE A SIA-PACIFIC REGION......
As a market leader,Tourism Victoria is successfully raising awareness and Ten experienced private sector representatives form the Tourism visitation to Victoria from within Australia and from around the world Victoria Board, which provides the strategic direction for Tourism through innovative and effective marketing strategies and campaigns. Victoria based on four broad goals:
In partnership with Victoria's tourism industry,Tourism Victoria is • Marketing Victoria to increase visitor numbers, length of stay working in line with its mission to "maximise employment and the and visitor expenditure by positioning Victoria as a distinct and long-term economic benefits of tourism to Victoria by developing competitive tourist destination; and marketing the State as a competitive tourism destination." • Providing leadership in the tourism industry to encourage The organisation acts as a catalyst in stimulating the growth and professional standards and the development of cooperative development of Victoria's tourism industry. arrangements to maximise industry effectiveness;
As a Victorian State Government statutory authority, established by the • Improving Victoria's tourism assets by identifying infrastructure Tourism Victoria Act 1992,Tourism Victoria is the vehicle through which opportunities and facilitating development projects and the Government participates in the tourism and travel industries. international air services to Victoria; and
• Managing and maximising the use of resources by conducting business in accordance with professional commercial management principles.
Tourism Victoria is staffed by dedicated professionals who are committed to building on success and striving for new and innovative ways to market Victoria.
For more information about Victoria as a great holiday destination visit visitvictoria.com
visitvictoria.com 1 Chairman’Í Reporˇ
T HE PAST YEAR HAS BEEN A SUCCESSFUL AND REWARDING ONE FOR
TOURISM IN V ICTORIA ASTHE INDUSTRY CONTINUESTO SEIZE OPPORTUNITIES
FOR GROWTH......
The economic opportunities presented by tourism continue to Control of the organisation has been strengthened through the expand in both regional and metropolitan Victoria.The total economic rigorous operations of the Corporate Governance Committee. benefit of tourism to the State is now estimated at $10.5 billion Headed by Board Deputy Chairman Graeme McMahon, this per annum. Committee has made a major contribution to the efficient operation of Tourism Victoria. The relatively declining Australian dollar has had the countervailing impact of making Victoria and Australia better value for money The change of Government part way through the reporting year compared to other international holiday options, but it has also resulted in a smooth transition, with all key committed plans and reduced the impact of our market spending to promote our programs continuing and the policy initiatives of the new Government attractions overseas. embraced. Staff and management are to be congratulated on handling the transition with a high degree of professional competence, The combined performance in both the international and domestic ensuring that no loss of forward momentum occurred. areas has been strong but there are clear indications of the challenges ahead. Both markets remain extremely competitive and therefore it I would like to thank the Minister, the members of the Board, the is essential that marketing resources be tightly focused on obtaining staff of Tourism Victoria and the tourism industry in Victoria for their the maximum economic benefits that are available to the State. hard work and commitment over the past year. I would particularly like to thank the outgoing Board members, Marcia Griffin,Ted Substantial resources have been devoted to the development of Baillieu and Christine Fyffe for their service to the organisation. the e-marketing capability of Tourism Victoria and to facilitate the I congratulate the reappointed Board members,Tom Smith and uptake of e-commerce by Victorian product.This investment will Geoffrey Conaghan, and I extend a warm welcome to the new provide significant long term benefits for the State, enabling the Board members, Pamela Catty, Bee Ho Teow and Kevin Davern. complete range of Victoria's diverse tourism assets to be cost effectively show-cased to markets world-wide. Phase one of the The following year is set to be another satisfying and successful year Victorian Tourism Online project is now operational for Tourism Victoria, whilst presenting ongoing challenges in reaching at visitvictoria.com our global and domestic tourism markets. I look forward to further strengthening the partnerships between Tourism Victoria and Global interest in visiting Australia will significantly increase as a members of the industry to achieve our mutual goals. result of the Sydney Olympics.This year Tourism Victoria generated approximately $250 million worth of free publicity worldwide. In the same period Tourism Victoria hosted in excess of 2300 visitors to the State from influential groups such as the media, travel agents and tour wholesalers. Such groups often have great influence on consumers discretionary travel decisions, therefore this work will contribute significantly to future visitor numbers and yields.
Tourism Victoria has been professionally managed by Jeff Floyd and his team against an agreed Annual Business Plan and a set of output targets as specified in the State Budget. A high level of achievement John Kennedy has been attained on a wide range of performance milestones, as Chairman evidenced by the specific results outlined in this report.
visitvictoria.com 2 ChieÏ Executive’Í Overvie„
T HE 1999-2000 YEAR HASBEEN A CHALLENGING ONE AS T OURISM V ICTORIA HAS
SOUGHT TO INTEGRATE THE EXCITING OPPORTUNITIES AFFORDED BY E- MARKETING INTO
ITS ESTABLISHED AND SUCCESSFUL J IGSAW PROGRAMS......
The Victorian Tourism Online project gathered pace with the Another important development for both domestic and international release of Tourism Victoria's new consumer and corporate web visitation was the launch of the Melbourne Attractions Pass.This sites - visitvictoria.com and tourismvictoria.com.au. As the world pass combines 11 of Melbourne's best attractions offering visitor rapidly joins the Internet revolution, the new consumer site is a key savings of at least 20 per cent off the normal price of the attraction. step in the global marketing of Victoria as a destination whilst the This is a good example of the collaboration between the different new corporate site offers Tourism Victoria's services to the tourism sectors of the tourism industry which underpins the successful industry online. promotion of Melbourne and Victoria.
Tourism Victoria's close partnership with the Product Region A key achievement for Tourism Victoria in the past year was the Campaign Committees and regional tourism bodies will underpin value of 'free ink' media coverage of Victoria generated from around the success of Victorian Tourism Online, as it is they who will support the world: around $250 million dollars worth of free publicity.The Tourism Victoria in bringing regional tourism operators to join the focus on Australia as a result of the Sydney Olympics presented us Victorian Tourism Online initiative. Equally vital is Tourism Victoria's with the opportunity to host some of the international Olympic work with inbound tour operators, wholesalers, airlines and other Broadcast Rights Holders to film stories in Victoria to be included key partners in mutually exploring the opportunities of marketing as part of their Olympic coverage. on line. Such positive outcomes are a result of the efforts of the Tourism Tourism Victoria's traditional Jigsaw campaign has continued to be Victoria staff over the past year and I thank them for their very effective.The fifth stage of the campaign saw the centre of commitment, and professionalism. I also thank the Minister, the Sydney transformed using more than 200 illuminated sidewalk displays. Chairman and the members of the Board for their valued guidance This was part of a major new advertising campaign promoting and support during the year. Melbourne and its surrounds, and also incorporated outdoor billboards and significant magazine advertising. I look forward to another successful year ahead working in partnership with all the members of the Victorian tourism industry. An important factor in Victoria's tourism performance has been Tourism Victoria strongly values its close collaboration with wholesalers, an increase in the number of direct flights to Melbourne. United inbound tour operators, airlines, regional tourism organisations, Airlines and Qantas both introduced non-stop services between industry bodies, tourism operators, and all sectors of the State Los Angeles and Melbourne in the past year, significantly reducing Government, for it is these partnerships which are the foundation travel times. As the US market is one of the fastest growing and of the continued growth of tourism in Victoria. largest markets for Victoria, this is an important boost and Tourism Victoria continues to work closely with these and other valued airline partners.
Jeff Floyd Chief Executive
visitvictoria.com 3 HighlightÍ 1999-2000 ......
• Victoria attracted 1.1 million of the 4.1 million international • The Melbourne's Great Indoors campaign, in partnership with tourists who visited Australia in the year ended December Melbourne's leading hotels, attracted more than 20,000 visitors 1999 - a 2% increase over the same period in 1998. to Melbourne between 1 May and 31 August 1999, selling over 24,000 room nights, a 25% increase on the 1998 campaign. • A major increase in direct international air capacity to Melbourne was achieved totalling an additional 7,500 seats • Victoria's stable of Hallmark Events was increased to 14, with per week. the addition of the Wangaratta Festival of Jazz and Equitana Asia Pacific. For every $1 of funding provided by Tourism • Melbourne Airport, which welcomes more than 200 Victoria to the events it supported in 1999-2000, $30 of international flights every week, recorded strong growth in economic impact was returned to Victoria. international passenger movements, up 6.3% in 1999, the highest growth recorded by any major Australian airport. • Melbourne was included in an elite network of six Capital Cities of Great Wine Growing Regions - a network that will • Victorian tourism took an important step in online marketing bring international exposure to Victoria and positions with the launch of phase one of a major new tourism consumer Melbourne as Australia's premier wine city, providing an web site visitvictoria.com, which globally promotes Victoria's important boost to wine industry related events. tourism assets. • The Victorian Tourism Research Kit was launched and is available • Tourism Victoria and Ericsson successfully developed the first on Tourism Victoria's web site tourismvictoria.com.au. local service to provide travellers with tourism information, at The kit assists Victoria's regional tourism associations, and other the touch of a button, on their mobile phone. bodies involved in tourism, plan for future tourism development.
• The fifth stage of Tourism Victoria's Jigsaw campaign saw the • Following representations and support from Tourism Victoria, centre of Sydney transformed (using more than 200 illuminated the Office of National Tourism announced grants totalling side walk displays) in a major new advertising campaign promoting $390,000 to support five regional Victorian projects. Melbourne and its neighbouring regions.The campaign also encompassed outdoor billboards and significant magazine • Victoria won seven Australian Tourism Awards, crowning its advertising. achievement by producing one of only two entrants to the Australian Hall of Fame, the Sanctuary Shop at Healesville • At the Australian Writers & Art Directors Association Awards Sanctuary, which won the Tourism Retailing Category for the in November 1999,Tourism Victoria won two awards for its third consecutive year. Seven of the 11 members of the Melbourne Plus 120 second television advertisement - a Silver Australian Hall of Fame are now from Victoria. Award for Editing and a Bronze Award for Direction in the Craft in Television & Cinema category. • A contingent of Victorian tourism operators did strong business at the 2000 Australian Tourism Exchange (ATE) held in Sydney. • Tourism Victoria, in conjunction with the Board of Alpine The 69 Victorian tourism operators who attended ATE were Resorts Tourism, produced a new cinema commercial promoting able to do business with 681 buyers from 46 countries.This Victoria's ski fields as part of the new Victoria. A Whole Lot year Melbourne won the bid to host ATE in 2003 and 2004, Moreski campaign. ensuring that it once again benefits from such international exposure. • Tourism Victoria generated about a quarter of a billion dollars in 'free ink' media coverage on Victoria globally.Tourism Victoria • The new Country Victoria Events Program was established worked aggressively with high profile international Olympic with funding from the Government. Broadcast Rights Holders, such as America's NBC and China's CCTV, encouraging them to film stories in Victoria as part of their Olympic coverage.
• Tourism Victoria led a major product development, the Melbourne Attractions Pass, which combines 11 of Melbourne's best attractions on one pass, inducing increased visitation, and offering visitor savings of at least 20% off the normal retail price of each attraction.
visitvictoria.com 4 InternationaÒ Visitatio˜ TrendÍ
V ICTORIA ATTRACTED NEARLY 1.1 MILLION OF THE 4.1 MILLION INTERNATIONAL TOURISTS
( AGED 15 YEARSAND OVER ) WHO VISITED A USTRALIA IN THE YEAR ENDED D ECEMBER
1999. THISWASA 2% INCREASE OVER THE SAME PERIOD IN 1998, AND PROVIDED
V ICTORIA WITH A 25.6% MARKET SHARE OF ALL INTERNATIONAL VISITORS......
International visitors spent 20.5 million nights in Victoria for the year The Asian region returned to strong growth in 1999, at 8% overall. ended December 1999, an increase of 6% over the previous year. Significant increases in visitation were experienced from Korea Victoria's market share of international visitor nights was 18.9%. (42%), Malaysia (40%), Singapore (32%) and Indonesia (10%). Despite experiencing a 10% decline in visitors in the year ending Victoria recorded an average annual growth rate of 6% in December 1999,Taiwan maintained its position as Victoria's 7th international visitors from 1993-1999, with New South Wales and largest market. China, one of Victoria's emerging markets, increased Queensland, both at 5%. Nationally, average annual growth was 7% visitation (by 1%) as did Thailand (by 5%).Visitor numbers from over this period. China and Korea are forecast to grow dramatically in the future, at average annual rates of 21.1% and 23.7% respectively. Average Annual Growth of International Visitors (1993-1999) Japan maintained its position as Victoria's fourth largest source of international visitors.Visitors to Victoria from Canada increased by
8% 14% in the year ending December 1999 and visitation from Germany increased by 8% over the previous year. 7% Victoria's Major International Markets
6% AUS Ranking, 1999
5% VIC Visitors Visitor Nights (000s) 4% 1 UK 155,192 1UK 2,600 QLD NSW 2 New Zealand 140,925 2 New Zealand 1,784 3% 3USA 118,647 3USA 1,659 2% 4Japan 77,923 4 Singapore 1,329 5 Singapore 67,044 5Japan 1,265 1% 6Germany 52,516 6 China 1,159 7Taiwan 45,852 7 Malaysia 1,153 0% 8 China 36,727 8 Indonesia 1,122 9 Malaysia 36,131 9Germany 877 Source: International Visitor Survey 1999, Bureau of Tourism Research 10 Canada 27,645 10 Taiwan 631 11 Indonesia 25,977 11 Canada 586 Average Length of Stay Increases 12 Hong Kong 23,498 12 Thailand 500 The average length of stay of international visitors to Victoria has 13 Thailand 16,794 13 Hong Kong 398 increased from 18.7 nights in 1998 to 19.3 nights in 1999.The average 14 Korea 14,582 14 Korea 381 length of stay of international visitors in Australia has risen 0.7 nights since 1998 to 26.1 nights in 1999. Source: International Visitor Survey 1998 and 1999, Bureau of Tourism Research Performance of International Markets The United Kingdom became the largest source of visitors to Backpacker Market Grows Victoria for the year ending December 1999, increasing 13% over In the year ending December 1999, 170,672 backpackers visited the previous year. Although the number of visitors from New Victoria, an increase of 21% from 140,535 in 1998. In 1999,Victoria Zealand and the USA declined by 5% and 3% respectively, these had a 42% market share of all international backpackers.The largest countries remained Victoria's second and third largest markets. source markets were the United Kingdom and Europe.
Victoria experienced over 3.6 million backpacker nights for 1999, an increase of 1.2% from 1998. In 1999, backpackers spent an average of 21 nights in Victoria, with Canadian backpackers staying the longest, at an average of 32 nights. Source: International Visitor Survey, 1998 and 1999 Bureau of Tourism Research.
visitvictoria.com 5 DomestiÇ Visitatio˜ TrendÍ
T HERE WERE 16.7 MILLION DOMESTIC VISITORS TO AND WITHIN V ICTORIA IN 1999,
WHICH GAVE THE S TATE A 23% MARKET SHARE OF ALL DOMESTIC VISITORS......
Victoria attracted 4.4 million interstate visitors in 1999, giving the Tourist Accommodation Sector Performs Strongly State a 21% market share of all interstate visitors. Tourist accommodation data (which measures accommodation of 15 rooms or more) shows that room nights occupied in Victorian Intrastate travel accounted for approximately 12 million visitors, hotels, motels and serviced apartments increased by 6.8% to 6.58 giving Victoria a 24% market share of all intrastate visitors. Intrastate million for the year ending March 2000. travel makes up three quarters of all domestic travel in Victoria. Takings from Victoria’s hotels, motels and serviced apartments Visitor Nights totalled $759.2 million for the year ending March 2000.This is an With 52.5 million domestic visitor nights spent in Victoria in 1999, increase of 8.3% over the previous year to March 1999 and above the State achieved an 18% market share of all domestic nights. the national increase of 7.6%.Victoria’s takings made up 18% of The average domestic trip length for Victoria was 3.2 nights. national accommodation takings.
Interstate visitors spent nearly 20 million visitor nights in Victoria, Hotels, Motels and Serviced Apartments March 2000 giving the State a 16% market share of all interstate nights. VIC NSW QLD AUS Intrastate travel in Victoria accounted for almost 33 million visitor Room Nights nights, representing a 19% market share of all intrastate nights. Occupied % change +6.8% +7.0% +5.6% +6.5% The graph below shows Victoria's share of total domestic, interstate and intrastate travel across the key indicators of visitors and nights. Number of establishments Victoria’s market share of visitors and nights: change +21 +12 +20 +86 year ending December 1999 Takings % change +8.3% +8.9% +5.1% +7.6% 17.9% 20.8% 15.9% 23.7% 19.3% Employment % change +1.7% +5.9% +2.0% +3.0%
Source: Survey of Tourist Accommodation, 1999 and 2000, Australian Bureau of Statistics
Employment Employment in Victorian accommodation establishments was 21,498 as at March 2000.Victoria experienced growth of 1.7% in employment in accommodation establishments for the year ending March 2000 over March 1999. It is estimated that approximately 170,300 persons are directly employed in Victoria as a result of tourism.This accounts for approximately 8% of employed persons in Intrastate nights Interstate nights Victoria. Intrastate visitors Interstate visitors All domestic nights
All domestic visitors 22.8% Sources: Tourism's Economic Contribution 1996/1997, Bureau of Tourism Source: National Visitor Survey, 1998 and 1999, Bureau of Tourism Research Research, Labour Force Statistics February 2000 and Survey of Tourist Accommodation 2000, Australian Bureau of Statistics.
visitvictoria.com 6 Regional Victoria Room nights occupied increased by 6% across the State from the Victoria received 75.1 million international and domestic visitor March Quarter 1999 to the March Quarter 2000.The largest nights for the year ending December 1998. Regional Victoria increase in room nights occupied was recorded in the Macedon received 52% of these nights, with the remaining 48% in the Ranges & Spa Country region, rising 15%, followed by Lakes & Melbourne region. Wilderness (up 11%) and Murray Outback and Yarra Valley, Dandenongs & the Ranges (both up 9%). Nearly 44 million domestic day trips were taken during 1998. Regional Victoria received approximately 57% of Victoria's domestic day trip visitors in 1998.1
Victoria experienced a 9% increase in takings from accommodation (15 rooms or more) across the State, from the March Quarter 1999 to the March Quarter 2000.The Murray Outback, Goldfields, Macedon Ranges & Spa Country,Yarra Valley, Dandenongs & the Ranges and Goulburn Murray Waters all increased takings by 11% or more.
Visitor Activity Summary Regional Victoria Victoria Melbourne & Bays Peninsulas Macedon Ranges & Spa Country The Ranges Valley, Dandenongs & Yarra Outback Murray Great Ocean Road Grampians Goldfields Waters Goulburn Murray Legends,Wine & High Country Wilderness & Lakes Phillip Island & Gippsland Discovery The Murray Overnight Visitors (International & Domestic) Total Visitors (‘000) 19,671 7,366 2,557 425 565 933 2846 776 2062 1669 1391 831 2030 1815 Total Nights (‘000) 75,059 36,238 6,997 985 1,455 2,991 8,072 1,943 4,625 4,461 4,111 2,606 5,925 5,588
Day Trip Visitors (Domestic) Total Visitors (‘000) 43,949 19,121 7,046 1,365 3,636 845 5,416 917 4,382 3,288 1,110 517 3,726 1,723
Accommodation (March 2000-1999)*
Takings +9% +10% +1% +28% +20% +11% -1% +2% +11% +13% -2% +10% -5% +8%
Room nights occupied +6% +8% -5% +15% +9% +9% -4% -4% +6% +2% -4% +11% -11% +3%
Source: 1998 National Visitor Survey, and 1998 International Visitor Survey, Bureau of Tourism Research, Survey of Tourist Accommodation, Australian Bureau of Statistics *Compares growth between March 1999 quarter and March 2000 quarter 1. (Due to a time lag in the delivery of survey results, the 1999 results were not available as at 30 June 2000.)
visitvictoria.com 7 Touris Victoria’Í KeÁ PartnerÍ ......
The Industry Tourism Council Australia (TCA) Tourism Victoria works in close partnership with the tourism The TCA is a national peak tourism industry body and Tourism industry including individual operators, local government, the Victoria works closely with the TCA across a range of industry Federal Government, airlines, major accommodation chains and issues.Tourism Victoria is a major sponsor of the TCA's Victorian the travel trade in general. Tourism Awards.
Australian Tourist Commission (ATC) Tourism Task Force (TTF) The ATC, established by the Federal Government in 1967, promotes The TTF is a national, apolitical lobby group representing the chief Australia to the world as a tourist destination.Tourism Victoria executives of 100 major corporations and institutions in Australia's works closely with the ATC in targeted international markets and tourism and transport industries.Tourism Victoria works with TTF actively participates in the Partnership Australia program. across a range of industry issues.
Other State Tourism Organisations Victorian Tourism Operators Association (VTOA) Tourism Victoria competes for market share on a national basis The VTOA is the key industry association representing tour operators, but also works closely with other State and Territory tourism attractions and other tourism businesses in the State.Tourism organisations in a number of areas including: joint marketing, the Victoria has partnered the VTOA in a number of key industry domestic tourism initiative, product development, on-line database development areas. development; growth of domestic tourism overall and taking a national approach to a range of key industry issues. Tourism Accreditation Board of Victoria (TABV) The TABV oversees the implementation of industry quality assurance Other Victorian Government Agencies and accreditation programs.Tourism Victoria is strongly pursuing Tourism Victoria works with a range of agencies covering areas such accreditation in Victoria with the TABV. as National Parks, sporting events, business events, and cultural events and festivals. Tourism Training Victoria (TTV) The TTV has responsibility for industry training plans and interaction Melbourne Convention and Visitors Bureau (MCVB) with industry and training providers.Tourism Victoria strongly endorses Tourism Victoria has partnered the MCVB in two key areas: the TTV's activities and works with the TTV on key initiatives. Meetings, Incentives, Conventions and Exhibitions; and the marketing of the Melbourne region to tourists. City of Melbourne The City of Melbourne, amongst a wide range of local government Country Victoria Tourism Council (CVTC) services, provides a range of programs designed to service the Tourism Victoria has partnered the CVTC in three key functions: information needs of visitors to Melbourne.Tourism Victoria works management and representation of the interests of local and regional in partnership with the City and the Melbourne Convention and tourism associations; promotion of the growth and development of Visitors Bureau to market Melbourne to key target groups. tourism in country Victoria; and delivery of specific programs such as the Regional Co-operative Marketing Program. Other Partners Tourism Victoria also works with the Australian Hotels & Hospitality Victorian Wineries Tourism Council (VWTC) Association, Hotel, Motel and Accommodation Association (Vic), Tourism Victoria works in partnership with the VWTC, which assists Caravan Parks Association (Vic), Caravan Trades and Industry in enhancing the economic contribution of wine tourism, including Association,Victorian Employers Chamber of Commerce and the development and promotion of food as a key component of Industry, Australian Farm and Country Tourism,Victorian Bed & this burgeoning tourism sector. Breakfast Council, Aboriginal Tourism Australia, Bus Association Victoria Incorporated, Australian Federation of Travel Agents, Licensed Clubs Victoria Incorporated, Professional Tour Guides Association, the Cultural Tourism Industry Group and other key industry bodies.
visitvictoria.com 8 Touris Victoria’Í ProgramÍ
T OURISM V ICTORIA' S SOUND AND CONSISTENT RESULTS IN THE MARKETING OF
V ICTORIA AND THE DEVELOPMENT OF THE S TATE' S TOURISM INDUSTRY ARE DUE TO THE
ORGANISATION' S SKILLED AND DEDICATED PEOPLE AND THE STRATEGIC FOCUS IT SETS
ITSELF THROUGH THE DELIVERY OF SEVEN KEY PROGRAMS.THESE PROGRAMS ARE: ......
Strategic Planning & Research Investment & Infrastructure Development Providing information and data to assist with the formulation of Facilitating investment in quality tourism infrastructure developments Tourism Victoria's strategies, the completion of strategic plans, the and increased airline capacity into Victoria. Key responsibilities are development of priority industry segments and the implementation providing investment advice for private and public sector projects of key initiatives including the Victorian Tourism Online Strategy, and working closely with airlines and regulatory agencies to promote the Olympics Strategy, and tourism development plans. increased capacity, direct international flights and cooperative marketing initiatives. Image Marketing Conducting advertising and marketing campaigns to increase Industry Leadership, Professionalism & Standards tourism visitation and yield to Victoria and raise the awareness and Providing advice and assistance to the tourism industry to raise the profile of the State as a premier tourism destination. Key elements level of professionalism and standards in the industry and by operators. are media familiarisations to Victoria, and the marketing of Brand Specific focus is placed on industry communication, increasing operator Melbourne / Brand Victoria based on the ongoing roll out of and industry association participation in accreditation programs and the highly successful Jigsaw campaign. coordinating educational seminars and training opportunities.
Product Development & Marketing Corporate Support Providing assistance with the development of tourism product Ensuring adequate business system support for the six key and packaging, which appeals to international and domestic visitors, output programs; quality advice to the Minister and his office; as well as maximising the benefits flowing from events. Key activities provision of public relations, media services and corporate include working directly with new product, the travel trade, developing communications; management of service level agreements with key wholesale programs and the implementation of the Regional partners; and the overall management of Tourism Victoria's human, Cooperative Marketing Program (in partnership with the Country financial and physical resources. Victoria Tourism Council).
Information Provision & Distribution Producing, distributing and managing information services for consumers and the trade.This includes the development of the Visitor Information Centre Accreditation Program (in conjunction with the Country Victoria Tourism Council), management of the Victorian Tourist Information Service and the Statewide Tourist Signing Program.
visitvictoria.com 9 StrategiÇ Plannin˝ & ResearcÓ
......
Brand Melbourne and Brand Victoria Domestic Tourism Initiative Integral to every aspect of Tourism Victoria's work is the use of a The $16 million Domestic Tourism Initiative is a Federal, State, consistent brand for Melbourne/Victoria in all key targeted markets. Territory and tourism industry partnership to encourage Australians As part of a significant branding project,Tourism Victoria has to holiday in their own country, in particular in regional Australia. developed a series of web pages for its corporate web site The Federal Government has committed $8 million towards an (www.tourismvictoria.com.au) and an associated CD-Rom, outlining integrated program, with the States,Territories and tourism industry its brand strategy and including key images of Melbourne and Victoria collectively pledging over $8 million over three years (1999-2001). for use in specific markets. Key Brand Melbourne/Victoria images and The Domestic Tourism Initiative is managed by Partnership Australia supporting text were finalised for the markets of the USA, UK, Domestic Limited (PADL), which was established to lead the three- Germany, New Zealand, Japan, Singapore,Taiwan, and Hong Kong and year initiative to stimulate growth of national, and in particular distributed to international offices, wholesalers and distributors.These regional, Australian tourism sales by Australians. will be used by Tourism Victoria and all of its partners in these markets to ensure that Melbourne and Victoria are presented consistently and Tourism Victoria initiated this strategy and has provided a significant in a way that resonates with the particular target market. input to the design of all its aspects and will be actively involved in its implementation.Tourism Victoria is represented on the Board of PADL Tourism Victoria also worked closely with the Melbourne Convention (now called See Australia P.L.). and Visitors Bureau to finalise a Brand Melbourne market positioning guide for the Australian market to ensure consistency in branding Australian Tourism Data Warehouse across the combined efforts of the two organisations. The Australian Tourism Data Warehouse is a critical project to link the data bases of all State and Territory tourism organisations A regional branding guide was developed for Phillip Island and draft across Australia so that potential visitors to Australia can search guides completed for the Yarra Valley and Great Ocean Road.These "seamlessly" for any information they may need via branding guides highlight the regional branding for each of these visitvictoria.com, any other State web site or the Australian regions, including positioning and key imagery. Tourist Commission's australia.com. Tourism Victoria has been actively involved in this project from its inception and will continue Victorian Tourism Research Kit to support the build phase of the project over 2000-2001. A new research kit, the Victorian Tourism Research Kit, was launched in February 2000 and is available on Tourism Victoria's corporate Aboriginal Tourism Development Plan web site at www.tourismvictoria.com.au.The kit, which will be To implement actions identified in its Aboriginal Tourism continually updated, will assist Victoria's regional tourism associations Development Plan,Tourism Victoria has formed a strategic alliance and other bodies involved in tourism to plan for future tourism with Aboriginal Tourism Australia to: provide support for the development. establishment of an Aboriginal Tourism Marketing Co-operative in Victoria; develop an online aboriginal tourism product database The kit summarises the latest visitor statistics, market profiles, for the Victorian Tourism Online project; and undertake an aboriginal forecasts and economic impact data from key tourism research tourism marketing diagnostic study to assess the marketing sources such as the Bureau of Tourism Research and the Australian activities of Victorian aboriginal tourism product. Bureau of Statistics. A highlight of the kit was the newly released regional data from the 1998 National Visitor Survey, which replaced Fishing Tourism Action Plan the Domestic Tourism Monitor as the major survey of domestic Recreational fishing, already worth more than $1.2 billion to travel.The Survey provided information not previously available, Victoria's economy, was the target of a new Fishing Tourism Action such as expenditure data, regional data, and information on day Plan, launched in April 2000.The Plan, developed by Tourism Victoria, trips.The kit also contains important information on commissioning sets the agenda for promoting recreational fishing to visitors and and conducting research, the latest research methods and a provides direction for the industry and regional tourism associations step-by-step guide on how to evaluate marketing campaigns. over the next three to five years.
A Regional Research Reference Group, established as part of Through the Plan,Tourism Victoria will identify and profile a range Victoria's regional campaign committees will, in close liaison with of quality fishing venues across the State, provide access to better Tourism Victoria, be responsible for directing the development of information on fishing activities, raise Victoria's profile as a competitive further research. fishing destination and develop packages for high yield markets.
visitvictoria.com 10 Adventure Tourism Plan Government Policy Initiatives The enormous tourism potential of Victoria's natural attractions, in Tourism Victoria has built the following key Government policies the context of a rapidly growing adventure tourism market, are at into its programs and action plans.Work started on these areas the core of an Adventure Tourism Plan being developed by Tourism over the year and will continue into 2000-2001. Victoria. Adventure tourism includes activities as diverse as horse riding, guiding, bushwalking, ballooning, rock climbing, whitewater • Events - a particular commitment to regional and community rafting, diving, water based tours, cycling and four wheel driving. events;
More than half of Victoria's international visitors take part in at least • Victorian Tourism Online - focus on regional access to the one adventure tourism activity and this figure grows to more than benefits of online marketing; 60 per cent in high yielding European markets. In 1998, 6.7 million overnight domestic visitors took part in adventure tourism activities • Recreational Fishing - release of the Fishing Tourism Action Plan; in Victoria. • Adventure Tourism - commitment to making the most of The Adventure Tourism Plan will set the agenda for the collaborative Victoria's natural assets in this growing industry through involvement of Tourism Victoria, Parks Victoria, the Department of development of an Industry Action Plan; Natural Resources and Environment, and the Victorian Tourism Operators Association in developing adventure tourism. It will • Bonegilla - proposal pursued for the establishment of a Migrant provide direction for the wide range of associations, operators Experience attraction at the Albury-Wodonga site; and organisations involved in adventure tourism and examine issues such as the needs of operators, product development • Goldfields - a commitment to this region, in particular to gaps,Victoria's competitive positioning and regional strengths. the 150 year Celebration of the Discovery of Gold in 2001 as well as to the development of a Goldfields Walking Trail; and Research Throughout the year,Tourism Victoria was involved in a variety • Nature Based Tourism - the development of a nature-based of research activities to support and maximise the impact of its tourism plan and a Code of Practice for the sector. marketing campaigns across Australia.
Key activities during 1999-2000 included: • Brand personality and regional awareness surveys to support the development of the latest phases of Tourism Victoria's Jigsaw campaign;
• Focus group research to support the development of a three- year domestic marketing strategy in Sydney and Melbourne;
• Focus group research in New Zealand to assist in formulating a communications strategy for the New Zealand market;
• Testing of the effectiveness of the new ski image campaign, Victoria. A Whole Lot Moreski. in the key target market segments in Sydney and Brisbane;
• Events research through the Co-operative Research Centre for Sustainable Tourism;
• Leading a national review of research on behalf of the Australian Standing Committee on Tourism to identify research gaps; and
• Co-operative research on aboriginal tourism as well as international product development.
visitvictoria.com 11 Imag´ Marketin˝ ...... visitvictoria.com Awards to Tourism Victoria Victorian tourism took an important step in online marketing with At the Australian Writers & Art Directors Association Awards the launch, in May 2000, of phase one of a major new tourism in November 1999,Tourism Victoria won two awards for its consumer web site, visitvictoria.com (also accessible via Melbourne Plus 120 second television advertisement - a Silver visitmelbourne.com), which globally promotes Victoria's Award for Editing and a Bronze Award for Direction in the Craft in tourism assets. Television & Cinema category. London Weekend Television aired a copy of the Melbourne Plus commercial on its annual Tarrant on TV While only in its first stage, the site already offers over 6,000 pages program, which highlights the best commercials and television of information highlighting all parts of regional Victoria.The full web programs around the world. site will be launched in late 2000 and will be driven by a vast and expanding database containing comprehensive information on International Markets Campaigns Melbourne and Victoria as well as individual tourism products. Tourism Victoria uses a number of strategies for international marketing campaigns including running co-operative campaigns The web site will be linked to regional and specialist tourism sites with the private sector; partnering with one or more States and and will eventually offer visitors the opportunity to book and pay Territories; or joining with the Australian Tourist Commission (ATC) for accommodation, tours, attractions and events over the Internet under the Partnership Australia agreement.This agreement covers from anywhere in the world. tactical advertising, trade help lines, the distribution of collateral, trade events and seminars, and the Aussie Specialist Program for The site, an integral part of Tourism Victoria's Victorian Tourism travel agents. Partnership Australia is a co-operative approach to Online project, is already featuring online tactical campaigns such as marketing between Australia's States and Territories and the ATC Melbourne's Great Indoors,Victoria's Bed & Breakfast Getaways, and worldwide. Victoria. A Whole Lot Moreski. Tourism Victoria successfully leveraged ATC and industry funding for Tourism Victoria is reviewing all of its marketing strategies in order tactical advertising relating to marketing campaigns, usually with a to maximise the use of online marketing, where appropriate. price offer specific to a wholesaler or airline. For every $1 Tourism Victoria spent on 47 Partnership Australia campaigns in 1999-2000, Australian Market Advertising Strategy it was able to secure additional funding through ATC and trade partner Tourism Victoria's Australian market advertising media schedule for contributions of just over $12.Tourism Victoria undertook 46 other 1999-2000 was targeted at the key markets of New South Wales, tactical campaigns in its international markets, securing nearly $12 Queensland,Victoria and South Australia. to add to every $1 it spent. By leveraging off its relatively small contributions,Tourism Victoria is able to gain exposure across all The fifth stage of Tourism Victoria's Jigsaw campaign was launched in markets for Victoria through significantly more media advertising November 1999, with the centre of Sydney transformed by a major than would otherwise be possible. new advertising campaign to promote Melbourne and its neighbouring regions of Daylesford, the Mornington Peninsula and the Yarra Valley. Apart from traditional media advertising, these campaigns include relationship marketing, prize promotions and cross-promotional Tourism Victoria used over 200 Decaux (large illuminated sidewalk activities. displays) in an innovative and imaginative way.The images of Melbourne on each site were literally down the road, around the Free Ink and Media Activity corner, or just the other side of those depicting key regions of A vital component of Tourism Victoria's marketing programs is securing Victoria.The positioning reinforced the fact that each of the unique 'free ink' (media publicity) via extensive editorial coverage in domestic and diverse regions was only an hour's drive from Melbourne. and international markets. Free ink is particularly important in international markets, where the cost of advertising is often The campaign, which also included the installation of huge billboards prohibitive. In 1999-2000,Tourism Victoria generated about a quarter and significant magazine advertising, was an extension of the of a billion dollars in value of 'free ink', including numerous television acclaimed Melbourne Plus image advertisement, which continued to broadcasts in Japan, the UK and North America, which were associated be screened on television and in cinemas throughout 1999-2000. with the increasing focus on Australia in the lead up to the Olympic Games. A wide variety of editorial coverage was gained in newspapers The popular Touring Victoria television advertisement continued to and magazines and on radio and television worldwide and be aired on Melbourne and regional television networks, driving throughout Australia. visitation into regional Victoria.
Tourism Victoria, in conjunction with the Board of Alpine Resorts Tourism, produced a new cinema commercial, promoting Victoria's ski fields as part of the new Victoria. A Whole Lot Moreski. Campaign.The commercial screened in cinemas to coincide with the 2000 ski season.
visitvictoria.com 12 The majority of this 'free ink' was generated as a result of Tourism • Hosting a highly regarded Chinese model to the 1999 Victoria hosting international and domestic media on 'familiarisations' Melbourne Cup, which resulted in significant coverage of to Victoria. In the case of international media, familiarisations are Melbourne and Sovereign Hill in two popular Chinese magazines; hosted directly by Tourism Victoria and under the Visiting Journalists Program (VJP), a co-operatively managed and funded program • Hosting Indonesia's top television station, SCTV, to film a children's between the Australian Tourist Commission and State and Territory program featuring activities in Melbourne, the Dandenongs, tourism offices.Victoria's tourism industry provides invaluable support Phillip Island and Ballarat; to the familiarisation program by providing free or discounted services for media visits. • Hosting Japanese magazine Katei Gaho, which committed to producing a 12-page feature on gourmet food and wine in The table below illustrates the increased emphasis that has been Melbourne; placed on hosting media to Victoria, one of the most effective ways to gain 'free ink' nationally and internationally.The increase in inter- • Germany's NTV news channel screening a 30-minute This is national media numbers was also a result of the increasing global My Australia program on Melbourne and its attractions; and interest in Australia in the lead up to the Sydney 2000 Olympic Games. As part of Tourism Victoria's $2 million Olympics Strategy • Hosting a high profile group of media, entertainment, legal and extra resources were allocated to effectively service this increase in corporate high fliers led by the Travel Editor of America's NBC media, and particularly large broadcast crews, prior to the Olympics. Today Show.
Media Familiarisations In Australia,Tourism Victoria worked particularly closely with television travel programs, such as Getaway and The Great Outdoors, national magazines, such as Australian Gourmet Traveller, Elle Cuisine and Marie Claire Food & Lifestyle, and the travel sections of all 1999-2000 metropolitan daily newspapers. Media Familiarisation Apart from organising more traditional editorial opportunities,Tourism Program Victoria also developed prize promotions publicising key campaigns, Domestic Media increase Percentage on 1998-1999 Total International Media such as Melbourne's Great Indoors and Victoria's Bed & Breakfast Journalists Getaways, in national magazines and metropolitan newspapers.Tourism hosted 693 195 888 46% Victoria leveraged its advertising spend with national magazines through a Value Added Program, which negotiated free editorial opportunities to Victoria's promote specific campaigns in these magazines. tourism industry in-kind contribution $345,000 $60,000 $405,000 43% Intrastate tourism promotion was boosted this year with Tourism Victoria regularly contributing to weekly travel pages in the Herald In addition to hosting media visits,Tourism Victoria gains 'free ink' Sun, the City Weekly, and the Leader Newspaper group, and hosting by providing media kits, story ideas, information, images and editorial, weekly radio travel segments on ABC, 3AK and 3MP. to a wide variety of media, including Internet media and event programs. It also answers media inquiries about Victoria, and provides Direct Marketing editorial guidance and updates to the publishers of guide books Tourism Victoria undertakes direct marketing, an integral featuring Victoria. component of its marketing mix, across a range of areas. In 1999- 2000 those activities included: Media highlights for 1999-2000 included: • North America's Conde Naste Traveller's Readers Choice • A direct marketing program to communicate and reinforce the Awards placing Melbourne at number five in the Top Foreign Melbourne Plus campaign, with more than 150,000 Melbourne Cities category and the Grand Hyatt as number five in the Top Plus fliers distributed through the Victorian Tourism Information Five Australian Hotels category; Service and a targeted letterbox drop;
• North America's Endless Vacations magazine featuring Victoria • The design of a new letterhead and envelope, incorporating under its 10 Great Reasons section and North America's Travel strong Melbourne/Victoria branding, for the fulfilment of and Leisure magazine listing the Windsor Hotel as seventh and brochures through the Victorian Tourism Information Service; the Grand Hyatt as 10th in its Top 10 Hotels for service in the Australia-Pacific region; • Inserts into magazines promoting the Stepping Out brochure and Melbourne Plus; • Hosting the crew and presenters of Men Down Under, a joint ABC-BBC documentary, which will air in Australia and the • A direct marketing campaign to promote the new Victoria's United Kingdom, with the lead actors from the BBC's Bed & Breakfast Getaways guide via direct mail and postcards; enormously popular Men Behaving Badly comedy program and as presenters; • The development of a 12-month marketing strategy directed at • Shooting of the Japanese television drama series Detective the Traditional Family Life segment, with letterbox distribution Katherine in Melbourne and the Yarra Valley; of The Spring Guide to Discovering Victoria to highly targeted recipients in New South Wales and Queensland.
visitvictoria.com 13 Producˇ Developmenˇ & Marketin˝ ......
Olympic Marketing Initiatives with an increase in the number of appointed committee members. Tourism Victoria's Olympics Strategy has been directed at exploiting A Regional Research Reference Group, consisting of one representative the tourism benefits of the Olympics by maximising the level of free from each regional campaign committee, was also formed to identify media exposure and international promotion of Victoria as a result and develop cooperative research projects across the State to of the increased global interest in Australia.Tourism Victoria has meet regional needs. worked aggressively with high profile international Olympic Broadcast Rights Holders, encouraging them to film stories in During 1999-2000, campaign committees succeeded in generating Victoria. Crews hosted include those from China's CCTV, Canada's significant levels of extra funding, allowing them to undertake a TSN, Europe's cable television company Eurosport, Brazil's Globo variety of marketing programs to promote their regions. All regional News and America's NBC. In addition, crews from the Sydney Jigsaw brochures, managed by campaign committees, were reprinted. Olympic Broadcasting Organisation (SOBO) filmed numerous vignettes in Victoria, which were provided to Olympic Broadcast Tourism Victoria continued working with Tourism New South Wales Rights Holders for broadcast before, during and after the Olympics. and the South Australian Tourist Commission to support the Tourism Murray River campaign committee in marketing the Murray River Tourism Victoria successfully negotiated with international wholesalers region, which is shared by all States under the banner The Murray - CARTAN, in the United States, and Sportsworld, in the United Australia's Greatest River. Kingdom, to include Melbourne/Victoria information in their Olympic holiday brochures, designing Olympic-specific collateral for the purpose. The Sydney-Melbourne Coastal Drive group completed the production of a motivational touring map that links with the 48- Tourism Victoria's Olympic media resource kit, Melbourne - Australia's page route guide.The map is used as the key fulfilment collateral for Original Olympic City, which contains features, story ideas and images of all marketing activity and consumer and trade show activity. Victoria, was distributed to media in all international markets and to Olympic media by the Sydney Organising Committee for the Victoria continues to be acknowledged by Australia's tourism industry Olympic Games (SOCOG) and SOBO. A comprehensive media kit as a best practice benchmark for regional tourism development, profiling each of Victoria's towns and suburbs visited by the Olympic which is spearheaded by Tourism Victoria and the Country Victoria Torch Relay was distributed to international and domestic media. Tourism Council.
During the Olympics,Tourism Victoria will be targeting international Product Development Olympic media with information on Victoria, including the media kit, Tourism Victoria plays a key role in advising new and existing by staffing tourism desks in the Main Press Centre and the Sydney tourism operators on developing and marketing their products Media Centre. through one-on-one sessions and product development workshops. Advice was given to a wide range of operators from new resorts Over 5000 accredited print media and 400 broadcast journalists to established cultural tourism groups and operators. Product will get a taste of Victoria at the Main Press Centre through large development work was also undertaken with representatives from images depicting Victoria's tourism product strengths and lifestyle. niche industry segments such as caravanning, fishing, gay and lesbian For Olympic media that are pre or post touring, nearly 200 tourism, backpackers, and aboriginal tourism. For example, in late Victorian tourism operators contributed heavily discounted or 1999,Tourism Victoria assisted the Melbourne-based backpacker free of charge services as part of a Travel Australia Media Pass. industry to establish an industry group to establish a marketing program.
Victoria's new tourism web site, visitvictoria.com, has carried A major product development in 1999-2000, led by Tourism information pages about Olympic Football in Melbourne, the 1956 Victoria and greatly assisted by the support of the new Melbourne Olympic Games, and the route of the Olympic Torch Relay through Aquarium, was the Melbourne Attractions Pass, which combines Victoria, alongside a wealth of destination marketing information 11 of Melbourne's best attractions in one pass.The pass can only already contained on the site. be bought from travel agents and offers visitors savings of at least 20 per cent off the normal retail price of each attraction. In booklet Regional Co-Operative Marketing Program form, the pass contains information on each attraction and a map Tourism Victoria and its key partner the Country Victoria Tourism of inner city Melbourne. It is open-ended so visitors can continue Council are committed to strong regional marketing on a partnership using remaining vouchers on repeat trips to Melbourne. basis through its Regional Co-operative Marketing Program (RCMP), now in its sixth successful phase. On an 18-month cycle, the 2000-2001 RCMP started in January 2000, with new guidelines. Under the new guidelines, the structure of the 12 regional campaign committees and their operational arrangements were improved,
visitvictoria.com 14 Product Marketing Campaigns At the Annual Seatrade Cruise Shipping Conference and Trade Throughout the year,Tourism Victoria, in conjunction with key Show, in Miami in March 2000, Melbourne and Australia's other tourism industry partners, undertook a number of product marketing cruise ship destinations were represented. All cruise line executives campaigns including: Summer in the High Country, Serving Summer were positive about continued cruising in the Australia region and Live, Melbourne in March, Melbourne's Great Indoors, Victoria's Bed & Melbourne received universally positive feedback, including via passenger Breakfast Getaways, Melbourne Plus, and Victoria. A Whole Lot Moreski. surveys. Melbourne is now recognised as a first class destination for In line with Tourism Victoria's Tourism Online Strategy, many of cruise ships, with the economic impact on Victoria estimated at these campaigns were extended into e-marketing strategies with approximately $1 million for each visiting cruise ship. partners such as Ansett, Qantas, ninemsn,Telstra Bigpond and Traveland. E-commerce activity is also being explored with all Events national travel agent chains. As Australia's events' state,Victoria continues to host a world-class line up of annual Hallmark Events and Special Events, reaping major The Melbourne's Great Indoors (MGI) campaign, now in its third year, economic benefit for the State. For every $1 of funding provided by continued to successfully promote Melbourne as an exciting winter Tourism Victoria to the major events in 1999-2000, $30 of economic destination, driving hotel occupancy at a traditionally low occupancy impact was returned to Victoria. Apart from financial support, period.The campaign was developed by Tourism Victoria in Tourism Victoria established tourism marketing relationships with partnership with Melbourne's leading hotels, coordinated by the 35 Hallmark and Special Events, which are now recording incremental Australian Hotels Association, and the Melbourne Convention and growth in tourism visitors. Visitors Bureau. In 1999, MGI attracted more than 20,000 visitors to Melbourne, selling over 24,000 room nights, a 25 per cent A number of Hallmark Events reported excellent results including increase on 1998 activity. In addition, nearly $1 million of publicity the 2000 Australian Open, which reported record attendance of was generated nationally. In 2000, from 1 May to 31 August, 33 hotels 501,251, compared to 473,296 in 1999. One of the day-night sessions were participating in the campaign along with 15 principal partners recorded an all time 'grand slam' record of over 50,000 people. representing tourism operators, retailers and events. In 1999 and The 1999 Melbourne Festival was also a significant success, with the 2000, the campaign was extended to New Zealand offering special box office exceeding $2 million, a 25 per cent increase on the 1998 packages to Melbourne. box office, with attendance of over 500,000 people.The Spring Racing Carnival experienced record crowds at its four-day Flemington In conjunction with the Board for Alpine Resort Tourism,Tourism Carnival, with the biggest Cup Day attendance in 50 years of 104,028. Victoria developed a new integrated winter marketing program for 2000, Victoria. A Whole Lot Moreski.The campaign is the first Victoria's stable of Hallmark Events was increased to 14, with comprehensive alpine marketing campaign to specifically target a the addition of the Wangaratta Festival of Jazz, Australia's four-day core segment (Young Optimist) of consumers, with disposable premier jazz event, which has an estimated economic impact in income, who are mobile, flexible, and motivated to fly or drive the Wangaratta region of $18.3 million.Victoria's Hallmark Events to Victoria's snowfields.These young professionals are passionate currently generate over $650 million of economic impact each year frequent skiers, enjoy evening activities after a day's skiing, and see and provide extensive destination exposure. the ability to ski to their accommodation as a considerable bonus. A new cinema commercial started in Sydney, Brisbane, Adelaide, Tourism Victoria also supported a large number of Special and Perth and Melbourne in May 2000.The ski Web address was also Major events via cooperative marketing programs.The events changed to visitvictoria.com/ski, in line with Tourism Victoria's included: the Barbara Streisand Concert, Equitana Asia Pacific '99, Online Strategy. The Age Melbourne Writers' Festival, Fun 4 Kids - Warrnambool International Children's Festival, the Ballarat Begonia Festival, and Cruise Shipping the Manchester United vs Australia soccer match. The 1999-2000 cruise ship season, October 1999 to March 2000, recorded 20 ships arriving at Station Pier carrying 28,000 passengers Australia's inaugural Equitana Asia Pacific '99, which included and crew.The decrease of 6,000 in cruise ship visitors from 1998- exhibition, education, entertainment and competition components, 1999 reflects the cruise-shipping trend of scheduling ships to the had a direct economic impact to Victoria of $7.7 million and region every second year. Five ships were deployed to the South attracted more than 70,000 people. Pacific region for the first time and Royal Carribean International's Legend of the Seas ship visited Melbourne twice, with a record 2,000 passengers each time. As at June 2000, 24 ships are scheduled to visit Melbourne in the 2000-2001 cruise ship season, with an expected increase in passenger and crew numbers on the previous two seasons.
visitvictoria.com 15 Wine Tourism The travel trade was also educated through seminars, training The Victorian Wineries Tourism Council (VWTC) enhances the sessions and conferences and the inclusion of editorial on Victoria economic contribution of wine tourism throughout Victoria and in domestic and international travel trade publications. Over 10,000 also develops and promotes the food component of food and wine international wholesale and retail staff were trained on Victoria's tourism. Under the strategic leadership of the VWTC,Victoria's tourism product in sessions conducted by Tourism Victoria's interna- standing as an internationally renowned wine growing region was tional staff during 1999-2000.Tourism Victoria's international staff further consolidated in 1999-2000 with Melbourne's inclusion in an also made nearly 3,000 sales calls on the travel trade in their markets elite network of Capital Cities of Great Wine Growing regions.The during the year. network, aimed at encouraging tourism, economic, academic and cultural development, consists of Melbourne (Australia), Bordeaux Victoria is the only Australian State tourism office to have a totally (France), San Francisco (USA), Santiago (Chile), Porto (Portugal) online training program available to North American travel agents. and Florence (Italy). A total of 128 agents have completed the program and qualified to be Melbourne/Victoria specialists. The network will bring international exposure to Victoria and positions Melbourne as Australia's premier wine city, providing an A highlight of the year was the work that Tourism Victoria undertook important boost to wine industry related events such as conferences in China following the awarding of Approved Destination Status to and seminars on wine technology and wine making. During the Australia.Tourism Victoria worked closely with 22 approved next four years more than 3,000 additional jobs are expected due Chinese travel agents and conducted regular training seminars, to industry growth in Victoria, which has more than 19 distinct wine trade familiarisations, as well as working closely with the agents regions and more than 320 wineries.The industry is expected to on cooperative marketing campaigns involving key airline partners. increase in value from $700 million to more than $1 billion, with Since 1996,Victoria has experienced an average annual growth of exports doubling from $150 million to $300 million, over the same 18 per cent in the Chinese market, with Victoria (as at December period.Visitation to wineries in Victoria has grown from 1.6 million 1999) holding a 42 per cent market share. visitors in 1994-1995 to 2.35 million in 1997-1998 and is expected to reach 2.6 million by the end of 2000. Tourism Victoria also worked closely with inbound tourism operators, an integral link in the international product distribution chain, by Wholesale Programs conducting workshops, familiarisations, trade missions and other Tourism Victoria continues to work successfully with key domestic activities, in conjunction with the Inbound Tourism Organisation of wholesalers including Qantas Holidays, Ansett Australia Holidays, Australia, to raise awareness of Victoria's tourism product. Jetset and Great Aussie Holidays to package both Melbourne and regional product.This close working relationship resulted in continued Trade and Consumer Information Shows growth in wholesaling packages, and the production of over 400,000 Tourism Victoria is a key agent in organising and leading Victoria's cooperative package brochures and package flyers in 1999-2000. participation and success at a large range of trade and consumer shows within Australia and overseas.Valuable business is written at The 2000 Melbourne's Great Indoors campaign attracted seven these trade shows and invaluable relationships and knowledge built domestic wholesalers, who developed their own special packages, both by Victorian tourism operators and key buyers. with Qantas Holidays and Ansett Holidays committing to Tourism Victoria's television retail advertising campaign in Sydney and In 1999-2000, 200 Victorian tourism operators attended 25 domestic Melbourne. A wide variety of wholesalers also produced a range trade missions and trade shows and 179 operators attended 16 of packages to underpin retail advertising of other campaigns such international trade shows.Tourism Victoria led 10 international trade as Serving Summer Live. missions, involving 114 Victorian operators and undertook nearly 3,500 appointments with buyers at international trade shows and Tourism Victoria also produced a range of dedicated passports to missions. be given to people booking packages to Victoria. Passports, which include discount bonus offers, are designed to raise the quality of A strong contingent of Victorian tourism operators successfully experience and awareness of Melbourne as a holiday destination. negotiated business at the 2000 Australian Tourism Exchange (ATE) They are developed for packages centred on Hallmark and Special held in Sydney, the world's largest travel trade fair after ITB in Berlin Events, such as the Qantas Australian Grand Prix, as well as campaign (where Victoria also went on show to 60,000 trade visitors and packages, such as Melbourne's Great Indoors. 116,000 consumers) and Pow Wow in the USA.The 69 Victorian tourism operators who attended ATE were able to do business Trade Education and Familiarisations with 681 buyers from 46 countries. Approximately 70 trade buyers Educating the domestic and international travel trade about Victoria and media attending ATE also took the opportunity to pre and and its attractions is vital in raising awareness of Victoria as a premier post tour in Victoria.This year, Melbourne, which successfully hosted tourism destination and increasing the amount of Victorian tourism ATE in 1991, 1992, 1997 and 1998, won the bid to host ATE in product featured in trade programs. 2003 and 2004, ensuring that it once again benefits from the wide international exposure enjoyed by the host city. A key component of educating the travel trade is Tourism Victoria's familiarisation program, which, in 1999-2000, brought 1,478 travel agents (450 from Australia and 1,028 from international markets) to Victoria.Victoria's tourism operators supported the familiarisation program by providing $238,000 worth of in-kind services.
visitvictoria.com 16 Informatio˜ Provisio˜ & Distributio˜
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Victorian Tourism Online Victorian Tourism Information Service Tourism Victoria launched its new corporate site The Victorian Tourism Information Service, a national telephone tourismvictoria.com.au, which puts its information services to information service, provides tourism information and brochure industry, students and the general public online.The site is divided fulfilment seven days a week by calling 132 842 (local call cost). into two sections covering information about Tourism Victoria, such The Service Level Agreement with the Royal Automobile Club of as its marketing programs and industry information, such as Victoria specifies a service operating at world's best practice, with research and data. 80 per cent of calls answered in 20 seconds and an abandonment rate of less than two per cent. An extensive online communication and education program was undertaken during 1999-2000 to explain the Victorian Tourism These benchmarks were exceeded in 1999-2000, with 86 per Online (VTO) initiatives to Victoria's tourism industry and to cent of the 196,818 calls answered within 20 seconds and an encourage a rapid uptake of online marketing and service provisions abandonment rate of only 1.1 per cent.The service distributed by the industry.The communication program included newsletters 56,000 brochures during the year. and forums in Melbourne and regional Victoria. An Industry Reference Panel, with wide representation, was formed to provide industry Information Brochures feedback to Tourism Victoria on all aspects of VTO. The 2000-2001 edition of one of Tourism Victoria's most popular publications, Victoria's Bed & Breakfast Getaways, was published in visitvictoria.com will be driven by a vast and expanding database December 1999.The guide features 360 properties, of which 95 per containing comprehensive information on Melbourne and Victoria cent are in regional Victoria.The bed and breakfast industry in Victoria as well as individual tourism products.The web site will be linked to is an important niche market with an excellent reputation for offering regional and specialist tourism sites and will eventually offer visitors quality accommodation and high standards of personal service. the opportunity to book and pay for accommodation, tours, attractions and events over the Internet from anywhere in the world.The VTO The release of the new edition also marked an important step initiative is valuable to both Tourism Victoria's larger established forward in Tourism Victoria's Victorian Tourism Online initiative. partners as another vehicle for cooperative marketing efforts and While the contents of the guide have been on the Web since 1998, to small, regional tourism operators who will be able to market the 2000-2001 Web edition, at visitvictoria.com/bnb, has been their product at low cost to the worldwide tourism market.Tourism given a complete overhaul with a change to the technical structure Victoria's online operator participation program, enabling tourism of the database and new look pages. operators to list on the site, will be launched in late 2000. The guide is also being distributed nationally through the Victorian In another online initiative,Tourism Victoria and Ericsson successfully Tourism Information Service,Visitor Information Centres, selected developed the first local service to provide travellers with tourism RACV Travel Clubs, at consumer shows and via direct mail. information, at the touch of a button, on their mobile phone.This new prototype service uses digital tourism data from Tourism Statewide Tourist Signing Program Victoria's Victoria's Bed & Breakfast Getaways guide. Ericsson's Mobile A new publication, Tourist Signing Guidelines, produced by Tourism Positioning System and WAP (wireless application protocol) technical Victoria and VicRoads, was released in 1999-2000, and will achieve and consulting services allows the information to be viewed on a greater consistency and uniformity in signing across the State.The mobile phone anywhere in Victoria.When the commercial version guidelines outline the new criteria for tourism operators and service is released, a traveller approaching a town will be able to identify the providers to obtain tourist and services signing and offer advice on location of the nearest available bed and breakfast property and achieving effective signing, rationalising existing signing and introducing make enquiries over the telephone. tourist drives and trails.
Ericsson and Tourism Victoria will continue collaborating on maximising The guidelines were the latest component in the highly successful the potential of WAP technology to provide visitors, as well as locals, Statewide Tourist Signing Program, launched in 1997 and funded by with other information on Tourism Victoria's database, including the Community Support Fund and local contributions. Under the shopping, exhibitions, markets, sporting and other events, food and program, new signage at border entry points was installed and wine, accommodation and directions - all on their mobile phone. Victoria's 13 regions installed entry signs displaying their product A significant amount of this information will be available via the service strengths and directing visitors to the nearest accredited Visitor by September 2000, with the full service available from June 2001. Information Centre.
During 1999-2000, 62 local and regional signing schemes were designed and implemented.The complete signage program has enabled visitors to move around Victoria with greater ease and will continue to encourage tourism growth.
visitvictoria.com 17 Investmenˇ & Infrastructur´ Developmenˇ ......
Tourism Investment Direct Air Services to Melbourne During 1999-2000,Tourism Victoria actively facilitated the development Tourism Victoria is Victoria's lead agency in negotiating international of tourism infrastructure by providing ongoing strategic focus, advice air services, crucial for Victoria's trade, investment and tourism and assistance on private and public sector investment proposals prospects. Pursuing improved airline services in 1999-2000 involved and projects. 10 submissions to relevant airlines and regulatory agencies, continued support of existing carriers via cooperative marketing programs, the An important aspect of Tourism Victoria's work in 1999-2000 was identification of new complementary services and efforts to remove to identify supply gaps in Victoria's tourism infrastructure and product bilateral impediments. In 1999-2000, international capacity to offering and work to fill them. Melbourne increased by approximately 7,500 seats per week and Melbourne Airport now welcomes more than 200 international Tourism Victoria published a booklet, Planning and Building Tourism flights every week. From Concept to Reality, which provides information to investors planning new tourism projects.The guide is designed to assist developers Tourism Victoria worked in close partnership with Industry Victoria understand the requirements for business planning and permits and and Melbourne Airport to secure additional flights by Qantas contains information on concept development, design and site Airways, United Airlines, Gulf Air, Malaysia Airlines, Air Pacific, Air issues, and checklists for market and financial feasibility. Planning and Vanuatu, Freedom Air and Air New Zealand. Building Tourism From Concept to Reality promotes the development of well-researched, good quality, self-sustaining tourism projects that can One of the year's highlights was the introduction, by United Airlines, contribute to Victoria's ongoing prosperity. of daily non-stop services between Melbourne and Los Angeles and Qantas' launch of five non-stop services between Melbourne and During 1999-2000,Tourism Victoria managed 10 Community Support Los Angeles.The new services have improved access to the high Fund projects across the State including: Ballarat Information Centre; yield North American market and have significantly reduced travel Gum San Canton Lead Pagoda, Ararat; Otway Ranges Drive; Split times between Melbourne and Los Angeles leading to greater Point Lighthouse, Aireys Inlet; 1999 Rose Society Centenary;Tourist business, trade and tourism benefits. A cooperative marketing Information Network Project; and the Diamond Valley Miniature agreement was developed between Tourism Victoria and United Railway.Tourism Victoria also continued to provide advice and assistance Airlines to undertake advertising and promotions in the United for tourism related funding applications to the CSF. States publicising the direct flights and Melbourne's desirability as a destination.Tourism Victoria also hosted 30 VIP guests, who Tourism Victoria provided strategic input, through the Office flew to Melbourne on the inaugural flight from Los Angeles, on a of National Tourism, to the Commonwealth funded and highly familiarisation around Melbourne and to the Yarra Valley.The guests competitive Regional Tourism Program. In the latest round of funding included Australia's Ambassador to the United States of America, in April 2000,Victoria received funding of $390,000 to support five key travel influencers and journalists. regional Victorian projects.The funding will be dispersed for the following projects: relocation of Tulklana Kumbi Aboriginal Gallery Melbourne recorded strong growth in international passenger from Dareton to Mildura ($50,000); creative renewal of the Central movements up 6.3 per cent in 1999, the highest growth recorded by Deborah Gold Mine & Tramway ($65,000); development of a any major Australian airport. Melbourne Airport is the only Australian Maritime Museum within the Geelong Customs House ($100,000); airport to offer 24-hour access, integrated international and domestic Gippsland Cultural Trail of the First Australians, Bairnsdale ($85,000); terminals, and uncongested air space. Around 40 per cent of all new and development of whale viewing facilities at Logans Beach, services introduced since 1998 utilise the 11pm to 6am period, Warrnambool ($90,000). highlighting the benefits that 24-hour operations can bring.
Also in regional Victoria,Tourism Victoria provided assistance to the Shire of Campaspe for its investment prospectus for the Echuca Heritage Precinct, which was launched with the Echuca Master Plan in June 2000.The Master Plan provides the basis for coordinated development of this nationally significant tourism precinct centred around the historic red gum wharf on the Murray River at Echuca, once Australia's busiest inland port.
visitvictoria.com 18 IndustrÁ Leadershi∏, Professionalis & StandardÍ
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Accreditation Australian Tourism Awards In March 2000,Tourism Victoria announced that, by April 2003, Tourism Victoria was a major sponsor of the 1999 National Tourism accreditation would be a prerequisite for tourism businesses Council Australia Conference and Australian Tourism Awards, held participating in cooperative marketing programs. Mandatory in Melbourne in November 1999. Regional operators won six of accreditation, which is to be phased in over the next three years, is Victoria's seven awards, which were hotly contested by 200 finalists critical to continually improving standards in Victoria's tourism industry. from across Australia who were vying for awards in 28 categories. The National Tourism Award winners were:Wangaratta Festival of Victoria continues to lead Australia in the campaign for national Jazz; Eureka Museum and Montrose Historic Cottage; RACV Club tourism accreditation and the requirement to be accredited in Cobram; Cumberland Lorne Conference and Leisure Resort; Great order to participate in Tourism Victoria's cooperative marketing Ocean Road Marketing; and Victorian Sue Calwell received an programs was a logical extension of this campaign.The adoption award for her significant contribution to the tourism industry. of nationally recognised and endorsed tourism accreditation programs provides the necessary impetus to maximise the number of Victoria crowned its achievement by producing one of only two Victorian tourism operators who can deliver world-class standards entrants to the Australian Hall of Fame, the Sanctuary Shop at and therefore contribute to a sustainable tourism industry. Healesville Sanctuary, which won the Tourism Retailing Category for the third consecutive year. Seven of the 11 members of the During the three-year phase-in period,Tourism Victoria will introduce Australian Hall of Fame are now from Victoria. incentives for accredited operators, such as price discounts for inclusion in brochures, tradeshows and priority involvement in Seminars and Conferences programs such as Victorian Tourism Online. In 1999-2000, there was strong industry attendance and positive feedback about conferences and seminars organised, assisted or Tourism Victoria continues to support and assist the Tourism facilitated by Tourism Victoria, including: Accreditation Board of Victoria, which in September 1999 approved a new Better Business Tourism Accreditation Program. Designed • A series of Victorian Tourism Online seminars in Melbourne and developed by tourism industry partners, the program is a self- and throughout regional Victoria; assessment process establishing minimum performance standards for tourism businesses. • The first Australian Tracks and Trails Conference;
Victorian Tourism Awards • A series of industry communication forums - over 40 - held Tourism Victoria was a major sponsor of the Tourism Council throughout the year; Australia's (Victoria branch) 1999 and 2000 Victorian Tourism Awards (held in August 1999 and June 2000), which encourage • The Domestic Markets Revealed Conference; tourism excellence and leadership. • The 2000 Adventure Tourism Forum at Mt Buffalo; The 1999 Awards attracted 169 entrants and an audience of approximately 1,400 for the Awards' ceremony, while the 2000 • The International Markets Update Seminar; and the Awards attracted 136 entrants and an audience of just over 1,000. In the 2000 Awards almost 50 tourism businesses entered the • Second National Wine Tourism Conference. awards for the first time, with the majority of entrants and winners in both the 1999 and 2000 Awards coming from regional Victoria. In addition,Tourism Victoria gave many presentations at tourism industry forums and other conferences around Australia, highlighting All winners from the Victorian Tourism Awards go on to represent its major programs and the growth of Victoria's tourism industry. Victoria at the Australian Tourism Awards.
visitvictoria.com 19 Student Education Initiatives Public Education Tourism Victoria proudly fosters the development of the tourism Tourism Victoria regularly reinforces the vital role tourism has as leaders of tomorrow by supporting tertiary tourism education the fastest growing sector of the Victorian economy, generating through a number of programs and activities, which are designed about 170,000 jobs for Victorians and being the largest employer to engender excellence and increase students' knowledge of, and of young Victorians.Throughout 1999-2000,Tourism Victoria gave participation in, the Victorian tourism industry prior to graduation. presentations on the importance of tourism to a wide variety of groups including major industry bodies, conferences, service In a joint initiative between Employment Victoria, the Department organisations, international delegations and tertiary students. of Education, Employment and Training,Tourism Council Australia (Victoria),Tourism Training Victoria and the Country Victoria Tourism Council,Tourism Victoria supported the Tourism Student Business Initiative. In its third year, the initiative encourages tourism and hos- pitality students to develop innovative business strategies within the tourism industry, as well as raising the profile of tourism studies and promoting graduate qualifications to the industry.
In 1999, tourism students Deanne Wade and Tara Brida, of Kangan Batman Institute of TAFE, beat a field of 85 entries (a 72 per cent increase on 1998) to win first place and an $8,000 study tour. The students' initiative was Old Narby-Out on a Limb, an unusual hypothetical resort of four well appointed tree houses, including one for the disabled, at Narbethong on the Maroondah Highway. The entry included a business plan demonstrating the resort's via- bility and employment opportunities.
During 1999-2000,Tourism Victoria worked closely with a number of Victorian universities, taking students for 40-week cooperative education placements, providing other forms of work experience, and conducting a number of briefing sessions with students.
visitvictoria.com 20 Corporat´ Governanc´ anÎ Managemenˇ
T OURISM V ICTORIA' S B OARD, APPOINTED UNDER THE T OURISM V ICTORIA A CT 1992,
PROVIDESSTRATEGIC DIRECTION FOR T OURISM V ICTORIA.THE B OARD' S C HAIRMAN ISTHE
INTERNATIONALLY RECOGNISED TOURISM INDUSTRY LEADER,MR J OHN K ENNEDY......
The Board's membership has a strong tourism industry orientation, Mr David Marriner ensuring strong links between the State Government and Victoria's Mr Marriner is the Executive Chairman of Marriner Theatres and tourism industry. the Managing Director of Staged Developments Australia.
The Board is appointed by the Governor in Council, upon the Mr Marriner started his business career in the furniture industry, advice of the Minister for Major Projects and Tourism and meets establishing and building a major retail presence in country Victoria, and monthly. In 1999-2000, the Board met in Melbourne as well as in contributing to the development of a number of industry initiatives. Colac and Mildura. Mr Marriner has been in business for over 30 years and has The Board's Corporate Governance Committee, headed by Deputy accumulated a wealth of property experience and is well known for Chairman Graeme McMahon, met four times in 1999-2000 and his knowledge and expertise in theatre. He successfully redeveloped advises the Board on audit and other governance matters. and refurbished the Princess Theatre, the Regent Theatre and the old State Theatre, and recently acquired the Comedy Theatre. He Tourism Victoria's Board comprises: has gained the respect of the arts community throughout Australia.
Mr John Kennedy, Chairman As Managing Director of Staged Developments Australia, Mr Marriner Mr Kennedy generated inbound tourism and travel to Australia for is involved in the recently opened Westin Melbourne on Regent 20 years until he sold his Port Philip Investments Limited to the Place hotel and with four other major CBD and city fringe projects. Thomson Travel Group in the United Kingdom. In 1997-1998, the Port Philip Group moved approximately 80,000 UK visitors, 15,000 Mr Marriner was involved in forming the Melbourne Convention North Americans and 3,000 Europeans to Australia. It had over 200 and Marketing Bureau in 1995, was elected Deputy Chairman in staff and operated from 18 offices in five countries. In 1988, 1996, retiring from the role in 1998. He was the 1997 Victorian of Mr Kennedy inaugurated the first United Kingdom-Australia charter the Year. flights using Britannia Airways B767 aircraft. Born in Melbourne, Mr Kennedy holds a Bachelor of Commerce Degree from the Mr Marriner was first appointed to Tourism Victoria's Board in 1994 University of Melbourne and an MBA from the London Business and was reappointed in 1995, 1997 and 1998. School. Mr Peter Gillooly Mr Kennedy was appointed as a member and Chairman of Tourism Mr Gillooly retired as the Chief General Manager and Chief Victoria in 1998. Operating Officer of Tattersall's Melbourne,Victoria, in June 2000. He was previously employed by the Department of Customs and Mr Graeme McMahon, Deputy Chairman Excise, and was a director of Automatic Ticket Research Pty Ltd, In March 1996, Mr McMahon retired from Ansett Australia Holdings and Chief Executive of the Housing Guarantee Fund Ltd. Limited as Managing Director and Chief Executive, a position held since November 1992. He joined the airline in 1956. Mr McMahon In his position with Tattersall's, Mr Gillooly was responsible to the was responsible for Ansett Australia's domestic and international Board of Trustees of the Estate of the Late George Adams and was operations, and for all other aspects of the group's business. responsible for the public presentation of the corporation to its six Born and educated in Melbourne, Mr McMahon is a Fellow of million immediate customers as well as the wider community. the Australian Society of Accountants, a Fellow of the Australian Institute of Management, a Fellow of the Australian Institute of Mr Gillooly was the Chairman of the Australian Lotto Bloc 1990- Transport and a Fellow of the Royal Aeronautical Society. 1994, and Vice President of the Association Internationale Lotteries Etat, 1990-1992. Currently he is Chairman of the Motor Racing Promoters of Australia, a Latrobe University Councillor and Chairman of the Mr Gillooly was first appointed to Tourism Victoria’s Board in 1995 Essendon Football Club. and reappointed in 1997 and 1998.
Mr McMahon was first appointed to Tourism Victoria's Board in 1992 and reappointed in 1995, 1997 and 1998.
visitvictoria.com 21 Mr Tom Smith mental and community relations. She is also a member of the 10 Mr Smith is the General Manager - Marketing and Public Affairs of person Executive Committee responsible for Ansett's leadership. the Melbourne Underwater World Aquarium, Chairman of the Country Victoria Tourism Council and Chairman of the Melbourne Her previous positions include: Manager Public Affairs, Ansett Region Campaign Committee. (1995-1996); Senior Adviser to the Hon. Michael Lee MP,Minister for Tourism, Minister for Communications and the Arts (1993-1994); Mr Smith is the former Executive Director of Ballarat Tourism. Senior Adviser to the Hon. Neal Blewett as Minister for Social He was a founder and coordinator of the Great Southern Touring Security (1992-1993) and Media Adviser to Minister Blewett from Route consortium, the inaugural administrator and member of 1988-1992. Ms Catty was also Senior Adviser and Press Secretary Great Ocean Road Marketing, and Executive Director of Shipwreck to the Hon. Peter Anderson MP,NSW Minister for Police,Youth and Coast Tourism. Despite working in Melbourne, Mr Smith is still a Community Services, Health and the Drug Offensive (1982-1988). resident of Warrnambool, the major city on the Great Ocean Road. Prior to these roles, Ms Catty was a Senior Publicity Officer for the Mr Smith has also been Tourism Manager for the City of NSW Ministry for Education (1981-1982), a journalist in Bermuda Warrnambool, Director of Economic Development at the City of (1976-1980), Oxford (1973-1976) and Rugby (1972-1973). Warrnambool, and Regional Education Officer for the Barwon South West Region. Ms Catty is a board member of Traveland Pty Ltd,Traveland International Pty Ltd, the Tourism Task Force and WorkPlacement. Mr Smith was first appointed to Tourism Victoria's Board in 1995 She is also a Graduate of the Australian Institute of Company and reappointed in 1997, 1998 and 2000. Directors.
Ms Denise Scrafton Ms Catty was appointed to Tourism Victoria's Board in 2000. Ms Scrafton has extensive experience with the tourism industry. Since June 1995, she has been the General Manager International Ms Bee Ho Teow Marketing and Sales for Flag Choice Hotels where she is responsible Ms Teow is a joint Managing Director of Australian Tours for all international marketing and sales and for offices in Australia, Management and part owner of Australian Tours Management Germany, USA, UK and Singapore. Pty Ltd (ATM), one of Australia's largest independent inbound operators established for over 17 years. Ms Teow holds a Master Ms Scrafton was previously: the National Marketing and Sales of Science from the University of Melbourne and, prior to joining Manager for the Castle Hotel Group (1989-1995); a tourism industry ATM, worked both as a clinical and research dietician. consultant (1988-1989); International and Domestic Tours Manager for Flag International (1978-1988). She also held various other Ms Teow is a member of the Minister's Advisory Council on positions with Flag Inns between 1971 and 1978. Customs, a director of the Inbound Tourism Organisation of Australia and was a director of the Australian Tourist Commission Ms Scrafton has served as the National Director, for four years, from 1995 to 1998. and member, for 15 years, of the Inbound Tourism Organisation of Australia. She has served for seven years on the Executive Ms Teow was first appointed to Tourism Victoria's Board in 1995 Committee of the Inbound Tourism Organisation of Australia's (until 1997) and reappointed in 2000. southern branch. Mr Kevin Davern Ms Scrafton was appointed to Tourism Victoria's Board in 1998. Mr Davern is a Director/Company Secretary of Insuper Ltd (the trustee company for the Finance Industry Superannuation Fund) Mr Geoffrey Conaghan and a coordinator of the ACTU's Financial Services Trust. Mr Conaghan is Melbourne Airport's Corporate Affairs Manager and is responsible for the airport's corporate and community image Following a 10-year career in the insurance industry, Mr Davern and its relationship with the tourism industry. Mr Conaghan has joined the Australian Insurance Employees' Union and was its principal responsibility for international air services growth. He was Federal Secretary between 1985-1991. He was the Joint National previously the founding Executive Director of Tourism Training Victoria. Secretary of the Finance Sector Union from 1991-1998.
Mr Conaghan has served on the following boards and committees: Mr Davern has held a number of union and public positions. Victorian Tourism Minister's Jobs Council; Hospitality Group These include: member of the CSIRO Board; member of the Apprentice Scheme; Member, National Rural Tourism Committee; Commonwealth Treasurer's Government Insurance Consultative Judge, Australian Tourism Awards (1995-1999); and Chairman of Committee; director of the Australian Institute of Superannuation Judges,Victorian Tourism Awards (1996-1997). Trustees; member of the ACTU Executive/Council and director of the ACTU Financial Services Trust; and a member of the World Mr Conaghan was first appointed as a member of Tourism Victoria's Executive of the International Federation of Commercial, Board in 1998 and was reappointed in 2000. Professional and Technical Employees.
Ms Pamela Catty Mr Davern was appointed to Tourism Victoria's Board in 2000. Ms Catty has been the Executive General Manager Corporate Affairs at Ansett Australia for four years.This position entails During 1999-2000, two Board members resigned and one member’s responsibility for public affairs, government relations, legal, environ- term expired.They were Ms Marcia Griffin, Mr Ted Baillieu and Ms Christine Fyffe.
visitvictoria.com 22 OrganisationaÒ Charˇ ......
Minister for Major Projects and Tourism The Hon. John Pandazopoulos
Tourism Victoria Board John Kennedy, Chairman
Chief Executive Jeff Floyd
General Manager Executive Services Deputy Chief Executive and and Board Secretary Director of Marketing Bernie Stewart David Riley
General Manager General Manager General Manager General Manager General Manager Industry & Strategy Infrastructure & Marketing Product & Global Markets Development Aviation Strategy Destinational Melanie de Souza Wayne Kayler-Thomson Peter Keage Don Richter Marketing Clive Dwyer
Mr Jeff Floyd Mr David Riley Mr Floyd has been Chief Executive of Tourism Victoria since July Mr Riley has been Deputy Chief Executive of Tourism Victoria since 1998. Prior to this Mr Floyd was Chief Executive of a number of November 1995. Prior to this Mr Riley held senior positions with Government bodies, most recently Parks Victoria. Mr Floyd is a the Tasmanian Department of Tourism, Sport and Recreation and director of the Melbourne Convention and Visitors Bureau, the the South Australian Tourism Commission. Mr Riley is a member of Victorian Major Events Company, Museum of Modern Art at Heidi, the Melbourne Film Office Advisory Board for Tourism and William Angliss Institute and the Clean Up Australia Environment Hospitality at Latrobe University. Foundation. Mr Floyd is a Fellow of the Australian Institute of Management, a Fellow of the Institute of Public Administration Australia and Victorian Chair of the Committee for Economic Development of Australia.
visitvictoria.com 23 Freedo oÏ Informatio˜ ......
Freedom of Information Act 1982 - Section 7 CORRECTION OF PERSONAL INFORMATION Publication Requirements A request for correction or amendment of information about a The information required to be published pursuant to Section 7 of person that is contained in a document held by Tourism Victoria the Freedom of Information Act 1982 (the Act) follows, except for must be made in writing. It should specify particulars of how and information required by that section but which is published why the person making the request believes the information to be elsewhere in this Annual Report. incorrect, incomplete, misleading or out of date and specifying the amendments they wish to have made. Queries about the availability of, and charges for, other material prepared under Part II of the Act should be directed to: CHARGES An application fee of $20 is required unless evidence of hardship is Ms Marisa Piacente provided. Other charges may be made in respect of access to Freedom of Information Officer documents and will be made in accordance with the Act. Tourism Victoria GPO Box 2219T APPEALS MELBOURNE VIC 3001 Applicants may appeal against a decision made in response to Telephone: (03) 9653 9754 requests for access to documents, for the amendment of records or Facsimile: (03) 9653 9722 against the cost levied for allowing access to documents. Information about appropriate avenues of appeal will be conveyed to the appli- Categories of Documents cant in the letter detailing the original access decision. Applicants The following are the general categories of documents maintained are advised to consult Part IV of the Act for further information by Tourism Victoria: about appeal rights. • General correspondence files: paper records maintained on registered files; Freedom of Information Request Summary - 1999-2000 • Minutes, agendas and papers: paper records of minutes of Principal Officer - Mr Jeff Floyd meetings are maintained on registered files and copies are Authorised Officer - Ms Marisa Piacente maintained on computer disk in some instances; • Accounting records: accounting records are maintained on a Tourism Victoria received one freedom of information request for computerised accounting system.The records deal with general the period 1 July 1999 to 30 June 2000. A decision to allow access ledger entries and other accounting functions. Paper records in part was made.The exemption categories specified in the Act are also kept on registered files; and and used in decision making were sections 28, 30 and 33. • Interstate and international offices: paper records are maintained in each interstate and international office and the Sydney retail branch also maintains customer booking files.
Freedom of Information Arrangements ACCESS TO ALL RECORDS All requests for access to records of Tourism Victoria are dealt with by the Freedom of Information Officer, who also makes access decisions. Applicants seeking access to documents should attempt to be as specific as possible and should make contact with the Freedom of Information Officer if clarification is required.
FORM OF REQUEST FOR ACCESS Applicants are required by the Act to submit applications requesting access to documents in writing. No form of application is specified and a letter clearly describing the document/s sought is sufficient. The letter should specify that the application is a request made under the Freedom of Information Act 1982 and should not form part of a letter on another subject.The applicant should write to the Freedom of Information Officer and provide the following information: Name; address; business hours contact number; details of documents requested and form of access required, ie: copies of documents, inspection of file or other (specify).
visitvictoria.com 24 Othe‰ Relevanˇ Informatio˜ ......
Legislation Application of the competition test to new legislative The legislation for which Tourism Victoria is responsible is the proposals Tourism Victoria Act 1992, which establishes Tourism Victoria and outlines its functions, powers and duties. There was no new legislation introduced during 1999-2000 relating to Tourism Victoria. Merit and Equity Statement In accordance with Government policies and guidelines, all appointments Application by Departments of Competitive Neutrality to Tourism Victoria in 1999-2000 were made on the basis of merit. (CN) principles to significant government business activities
Multicultural Policy Tourism Victoria does not undertake any significant government During 1999-2000,Tourism Victoria continued to promote policies, business activity with respect to the application of competitive programs and strategies aimed at delivering culturally appropriate neutrality principles. services to all Victorians. In particular,Tourism Victoria's marketing campaigns promoted Victoria as a multicultural society, with particular Application of competitive neutrality principles to emphasis on the diversity of international cuisines and festivals in-house bids within the State. There were no in-house bids relating to Tourism Victoria in 1999-2000.
In 1999-2000,Tourism Victoria hosted 693 international media Engagements of Consultants for 1999-2000 in Excess of $100,000 and 1028 international trade familiarisation participants.Tourism There were no consultancies for over $100,000 in 1999-2000. brochures and maps are available in six languages (Chinese, French, German, Italian, Japanese and Korean) and Tourism Victoria's Engagements of Consultants for 1999-2000, $100,000 and international offices produce collateral in the language of their markets. Under There were 11 consultancies for less than $100,000 each in Workforce Data 1999-2000, with a total cost of $191,043.
Class Male Female FTE Other relevant information in relation to the financial year is EO1 1.0 0.0 1.0 retained by the accountable officer and made available to the rele- EO2 1.0 0.0 1.0 vant Minister, Members of Parliament and the public on request. EO3 6.0 1.0 7.0 VPS5 6.0 8.0 14.0 VPS4 8.0 10.6 18.6 VPS3 6.8 25.4 32.2 VPS2 9.0 19.6 28.6 VPS1 2.0 7.0 9.0 Other 0.0 0.0 0.0 Total 39.8 71.6 111.4
Progress in Implementing National Competition Policy
Reviews of legislation that restrict competition
No reviews were undertaken in 1999-2000 in relation to legislation relating to Tourism Victoria.
visitvictoria.com 25 Outpuˇ TargetÍ and Performanc´
O UTPUT G ROUP D ESCRIPTION AND O UTPUTS ......
Tourism Marketing Conduct marketing campaigns to further increase visitation and yield, assist in developing tourism product which appeals to international and domestic visitors, maximise cooperative marketing opportunities and capitalise on the tourism benefits flowing from major events. Key deliverables include international marketing and national marketing.
MAJOR OUTPUTS/DELIVERABLES
Performance Measures Unit of Measure 1999-2000 Target 1999-2000 Performance Visitor nights (Domestic) number (millions) 1 52.52
Visitor nights (International) number (millions) 16-18 20.53
Number of visitors (international) number (millions) 1.0-1.2 1.064
Tourism Victoria ratio 1:13 1:12.3 expenditure as proportion of total of Partnership Australia
Number of enquiries Number 170,000 197,000 handled by the Victorian Tourism Information Service (VTIS)
Number of familiarisation Number participants:- Domestic - trade 300-400 450 - media 30-60 185 International - trade 700-800 1,028 - media 500-600 6595
Wholesale packages number 70,000 103,000 sold (domestic)
Awareness of advertising per cent on Victoria - New South Wales 18-22 18 - South Australia 18-26 17 - Queensland 18-22 21 - Victoria 14-22 116
Value of free ink generated Domestic $ million 20-25 277 International $ million 45-50 218
Percentage of consumer per cent 80% 86% telephone calls answered within 20 seconds (VTIS)
visitvictoria.com 26 Tourism Industry and Infrastructure Development Facilitate private sector tourism investment and manage tourism projects funded from the Community Support Fund (CSF). Provide leadership and direction in line with the Tourism Victoria Strategic Business Plan (1997-2001) and the Tourism Development Plans for each of Victoria's product regions. Secure approval for new carriers and air services to Melbourne.
MAJOR OUTPUTS/DELIVERABLES
Performance Measures Unit of Measure 1999-2000 Target 1999-2000 Performance Priority actions identified per cent 95-98 99 in the Strategic Business Plan (1997-2001) that have been satisfactorily implemented
Number of CSF projects number 30 108 managed.
Submissions to airlines number 4-6 10 and regulatory agencies
Event Facilitation Provide funding and development assistance for major events conducted in both regional and metropolitan Victoria. In conjunction with the travel industry, develop retail packages and cooperative marketing strategies.
MAJOR OUTPUTS/DELIVERABLES
Performance Measures Unit of Measure 1999-2000 Target 1999-2000 Performance Major events assisted number 15-20 19
Business events assisted number 3-5 Industry Victoria is now responsible for the delivery of this output as of 1 July 1999
Relevant quality standards per cent 100 100 are met
Administration of major weeks 6 6 events funding - response time/ turnaround time
Administration of business weeks 8 Industry Victoria is now responsible for the event funding delivery of this output as of 1 July 1999 - response time/ turnaround time
1 At the time targets were set, results were not yet available from the new National Visitor Survey therefore no benchmark data was available from which to set a target. 2 Due to a time lag in the data series, this result is for the year ending December 1999. 3 Due to a time lag in the data series, this result is for the year ending December 1999. 4 Due to a time lag in the data series, this result is for the year ending December 1999. 5 These results were collected just prior to 30 June 2000 and are therefore understated. 6 As at end of June 2000, the latest published figures were to March 2000. 7 Due to a time lag in data collection, this figure was to 31 May 2000. See full text of report for result to 30 June 2000. 8 Responsibility for these projects was progressively transferred to the CSF Unit in the Department of Premier and Cabinet and as a result the number of projects managed by Tourism Victoria has been gradually wound down.
visitvictoria.com 27 FinanciaÒ AppendiceÍ
F INANCIAL P OSITION - 5 YEAR C OMPARISON ......
1995-1996 1996-1997 1997-1998 1998-1999 1999-1900 $’000 $’000 $’000 $’000 $’000
Total Assets 2,804 2,440 2,207 4,156 3,820
Total Liabilities 1,585 1,986 1,825 3,488 4,258
Net Assets 1,219 454 382 667 (438)
Surplus/(Deficit) (691) (764) 370 285 (1,106)
State Govt Contributions 27,893 32,927 37,105 39,571 34,727
Fixed Assets (WDV) 915 981 570 338 494
Significant changes in financial position 1999-2000 1. An operating loss of $1,105,770 was recorded in 1999-2000. This loss was as a result of the accounting treatment of government grant and co-operative marketing funding which was treated as being received in the 1998-1999 year but which was expended during the 1999-2000 year. This treatment resulted in an operating surplus in the 1998-1999 year.
2. The reduction in State Government funding reflects the net change between infrastructure project funding received by Tourism Victoria in 1998-1999 which was transferred to the Department of State and Regional Development in 1999-2000, additional funding related to the Victorian Tourism Online Initiative and the Olympics marketing program.
The operational and budgetary objectives of the entity for the financial year and performance against those objectives including significant activities and achievements during the year.
These are outlined in narrative and graphical form elsewhere in this report.
A summary of major changes or factors which have affected the achievement of the operational objectives for the year.
Unfavourable exchange rates mainly in Japan and North America were partially offset by favourable rates in other markets
Events subsequent to balance date which may have a significant effect on the operations of the entity in subsequent years.
There have been no events subsequent to balance date effecting the operations of Tourism Victoria.
visitvictoria.com 28 B ALANCE S HEET ASAT 30 JUNE 2000 ......
1999-2000 1998-1999 Notes $ $
CURRENT ASSETS Cash on Hand 2 1,885,508 2,641,195 Debtors and Prepayments 3 1,439,873 1,176,302
TOTAL CURRENT ASSETS 3,325,381 3,817,497
NON-CURRENT ASSETS Fixed Assets 4 494,204 338,293
TOTAL NON-CURRENT ASSETS 494,204 338,293
TOTAL ASSETS 3,819,585 4,155,790
EQUITY
Accumulated Surplus/(Deficit) (438,455) 667,315
TOTAL EQUITY (438,455) 667,315
CURRENT LIABILITIES
Trade Creditors and Accruals 5 2,505,556 1,770,106 Deferred Revenue 1(h) 363,226 271,700 Provision for Employee Entitlements 6 492,318 514,064
TOTAL CURRENT LIABILITIES 3,361,101 2,555,870
NON-CURRENT LIABILITIES
Provision for Employee Entitlements 6 896,939 932,605
TOTAL NON-CURRENT LIABILITIES 896,939 932,605
TOTAL EQUITIES AND LIABILITIES 3,819,585 4,155,790
The accompanying notes form an integral part of these accounts
visitvictoria.com 29 S TATEMENT OF F INANCIAL O PERATIONS FOR THE F INANCIAL Y EAR E NDED 30 JUNE 2000 ......
1999-2000 1998-1999 Notes $ $
Revenues
State Government Appropriations 7 34,727,000 39,571,000 Commission - Retail 30,293 70,650 Community Support Fund 177,107 122,622 Interest 518,187 322,313 Co-op Ventures 1h 2,013,886 3,071,445 Other Income 8 & 9 1,402,916 2,174,566 Proceeds from Sale of Assets 10 3,922 5,662
38,873,310 45,338,258 Expenses
Advertising and Promotion 11 21,153,592 16,309,885 Grants 12 7,235,672 16,851,037 Office Administration Charges 9 & 13 3,506,523 3,936,447 Salaries and Employment Charges 14 7,830,084 7,644,540 Depreciation 4 253,209 307,607 Disposal of Assets (Written Down Value) 10 0 2,995
39,979,080 45,052,511
Operating Surplus/(Deficit): (1,105,770) 285,747
Accumulated Surplus/(Deficit) at the beginning of the Year 667,315 381,568
Accumulated Surplus/(Deficit) at the end of the Year (438,455) 667,315
The accompanying notes form an integral part of these accounts
visitvictoria.com 30 S TATEMENT OF C ASHFLOWS F OR THE Y EAR E NDED 30 JUNE 2000 ......
1999-2000 1998-1999 Notes $ $
Cash Flows from Operating Activities
Payments to Suppliers (31,053,362) (35,507,198) Payments for Salaries and Related Costs (7,887,496) (7,538,693) Receipts from Debtors and Others 3,345,182 4,875,410 Interest Received 518,187 322,313
Cash Flows from Government Grants from Government 34,727,000 39,571,000
Net Cash Flow (Used in) / Provided by Operating Activities 15 (350,489) 1,722,832
Cash Flows from Investing Activities
Payments for Purchase of Fixed Assets (409,121) (78,496) Proceeds from the Sale of Fixed Assets 3,922 5,662
Net Cash Used in Investing Activities (405,199) (72,834)
Net Increase (decrease) in Cash Held (755,688) 1,649,998
Cash at the Beginning of the Year 2,641,196 991,198
Cash at the End of the Year 2 1,885,508 2,641,196
The accompanying notes form an integral part of these accounts
visitvictoria.com 31 N OTESTO AND F ORMING P ART OF THE F INANCIAL S TATEMENTS ......
1. Statement of Accounting Policies (d) Foreign Currency Foreign currency transactions in respect of overseas offices (a) General have been accounted for on the basis of current conversion The general purpose financial statements are compiled on an rates at the date of reimbursement or forwarding of funds. accrual and a going concern basis adopting the principles of historical cost accounting except where otherwise stated. (e) Superannuation As an employer Tourism Victoria paid $464,425 in employer's The statements are prepared pursuant to the disclosure superannuation contributions in 1999-2000. This is compared requirements of the Financial Management Act 1994 and in to $457,102 contributed in 1998-1999. In addition to payments accordance with Australian Accounting Standards and other made to the Government Super Office (Defined Benefit mandatory reporting requirements. Schemes: Revised - at 14%, New - at 7.3% to 10.8%, SERB - at 10.8%), payments were made into the following Accumulation Accounting policies adopted are consistent with those adopted schemes at 7%:- Vic. Super, Bankers Trust, Stewart for the previous financial year. Superannuation, Asgard Capital, Legal and General, MLC, AMP, Local Authorities Super and Mutual Life. (b) Depreciation There was no employer contribution outstanding at 30 June Depreciation is charged on all depreciable assets, including 2000. items forming part of office and building refurbishments, on a straight line basis, at rates designed to write off the carrying Unfunded Liability value of assets over the period of their estimated useful life to Tourism Victoria holds a letter from the Government Tourism Victoria, as follows: Superannuation Office that the unfunded liability is the total Leasehold Improvement 5 Years responsibility of the Department of Treasury and Finance. As a I.T. Equipment 3 Years result, no liability is shown for superannuation in the Balance Furniture & Equipment 5 Years sheet of Tourism Victoria. Superannuation expenses relate to the These rates are reviewed on an annual basis. Depreciation is reporting period only and represent Tourism Victoria’s contribution charged on all assets with an acquisition cost of $1,000 or over. determined under various Superannuation Acts relating to the These rates are consistent with those applied in prior years. accruing benefits in respect of current employees.
(c) Employee Entitlements (f) Co-Operative Ventures Tourism Victoria has recognised and brought to account The amount recognised for co-operative ventures refers to employee entitlements as follows: funds directly received and banked by Tourism Victoria for activities such as Business Events programs, brochure (i) Salaries and Wages, Annual Leave and Sick Leave participation and co-operative marketing. The liability for accrued annual leave has been calculated using the actual leave outstanding for each employee at 30 June (g) Leased Non-Current Assets 2000 and pay rates applicable at that date, including on-costs Operating lease payments are charged to the Statement of for workcover, payroll tax and superannuation. Financial Operations in the periods in which they are incurred, As it is considered that non-vesting sick leave to be taken in as this represents the pattern of benefits derived from the future reporting periods will not exceed entitlements that are leased assets. expected to accrue in those periods, no provision has been made. (h) Revenue Recognition Revenue is recognised on the following basis: (ii) Long Service Leave 1. Grants from Government are recognised as revenue in the The liability for long service leave is calculated at the net present year when Tourism Victoria gains control of these funds value of estimated future payments to be made in respect of 2. Funds from co-operative venture participants which are services provided by employees in accordance with Australian refundable are recognised as revenue in the year when co- Accounting Standard AAS30 "Accounting for Employee operative venture activities take place. Funds received Entitlements". prior to activities having taken place are recognised as The liability for long service leave includes on-costs for workcover, Funds Received in Advance. payroll tax and superannuation. The current liability for long service leave represents the (i) Comparatives amount expected to be taken in the next twelve months. Comparative information has been reclassified where appropriate to enhance comparability.
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1999-2000 1998-1999 $$
2. Cash On Hand and at Bank Bank - General Operations 1,661,058 2,522,936 Trust Accounts - 17,294 Cash Advance & Cash on Hand 224,450 100,965 1,885,508 2,641,195
3. Debtors and Prepayments 1999-2000 1998-1999 $$ Trade Debtors - General Operations 814,773 440,704 Other Receivables 503,329 598,378 Prepayments 121,771 137,220 1,439,873 1,176,302 4. Fixed Assets 1999-2000 1998-1999 $$ Office Refurbishment - at cost 138,719 54,296 Less: Accumulated Depreciation (36,451) (21,729) 102,268 32,567
Office Furniture & Equipment - at cost 1,294,463 997,106 Less: Accumulated Depreciation (902,527) (691,380) 391,936 305,726
Total Assets 1,433,182 1,051,402 Less: Accumulated Depreciation (938,978) (713,109)
Written Down Value 494,204 338,293
Depreciation
Office Refurbishment 14,723 5,656 Office Furniture & Equipment 238,486 301,951 253,209 307,607
5. Trade Creditors and Accruals 1999-2000 1998-1999 $$ Trade Creditors - 17,295 Accruals 2,505,556 1,752,811 2,505,556 1,770,106
6. Employee Entitlements 1999-2000 1998-1999 $$ Current Liabilities Provision for Annual Leave 392,658 410,441 Provision for Long Service Leave 99,660 103,623 492,318 514,064 Non-Current Liabilities Provision for Long Service Leave 896,939 932,605
Total Provision for Employee Entitlements 1,389,257 1,446,669
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1999-2000 1998-1999 $$
7. State Government Contributions Current Expenditure
Tourism Program 34,727,000 39,571,000
Total State Government Contributions 34,727,000 39,571,000
8. Other Income 1999-2000 1998-1999 $$ Crown Casino Funding 1,000,000 1,000,000 Rent Received 51,750 113,750 Resources Received Free of Charge (Note 9) 250,000 250,000 Miscellaneous Receipts - Wine Australia -- 563,299 Other 101,166 247,517 1,402,916 2,174,566
9. Resources Received Free of Charge
Personnel, account processing, information technology and other corporate services amounting to $250,000 were received free of charge by Tourism Victoria from the Department of State and Regional Development.These resources have been included in the Statement of Revenue and Expenses as income in 'Other Income' and as expenses in 'Administration Charges'.
10. Profit/(loss) from sale of Fixed Assets
The profit/(loss) made on assets disposed is illustrated below:- 1999-2000 1998-1999 $$
Proceeds from Disposal of Furniture & Equip. 3,922 5,662
WDV of Furniture & Equipment Disposed - 2,995
Profit/(Loss) from Sale of Fixed Assets 3,922 2,667
11. Advertising and Promotion
Included in this year's advertising and promotion expenditure, was expenditure related to the Victorian Tourism Online Initiative ($2.63m) and the Olympics program ($1.29m). These items were not included in the prior year's expenditure. 1999-2000 1998-1999 $$
12. Grants Regional Tourism Co-operative Marketing 1,895,330 1,917,000 Melbourne Convention & Marketing Bureau 1,850,000 1,850,000 Information Provision 120,000 120,000 Major Events 582,517 1,014,220 Industry Development 822,802 871,470 Business Events 1,848,373 1,152,183 Infrastructure Projects* 116,650 9,926,164 7,235,672 16,851,037
* The change reflects funds for infrastructure projects which were budgeted by Tourism Victoria in 1998/99 ($9.702m) and which were transferred to the Department of State and Regional Development in 1999-2000.
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1999-2000 1998-1999 $$
13. Administration Charges
Rent, Cleaning & Power 1,453,001 1,610,322 Telephone, Facsimile & Postage 430,457 415,589 Audit Fees - Auditor General 28,000 14,085 Office Building Maintenance 2,109 346,627 Computer Charges 495,080 492,066 Printing, Stationery & Office Requisites 351,752 325,052 Resources Provided Free of Charge (Note 9) 250,000 250,000 Motor Vehicle Running Costs 211,726 162,594 Other 258,998 283,699 Capital Charge ** 25,402 36,413 3,506,523 3,936,447
** The capital charge is a nominal financing charge calculated by the Department of Treasury and Finance.
14. Salaries and Employment Expenses 1999-2000 1998-1999 $$ A. Salaries, Superannuation, Recreation & LSL 6,374,773 6,013,268 Tourism Victoria Board 109,115 135,663 Payroll Tax,Workcare and FBT 580,482 583,524 Travel Charges 560,206 777,173 Training and Development 205,508 134,914 7,830,084 7,644,542
B. Responsible Persons
The following have served as Responsible Persons during 1999-2000
Ministers
The Hon Louise Asher, MLC (1 July 1999 to 19 October 1999) The Hon John Pandazopoulos, MP (20 October 1999 to 30 June 2000)
Accountable Officer
Jeffrey Floyd (Chief Executive Officer)
Board Members from 1 July 1999 to 30 June 2000
John Kennedy (Chairman) Graeme McMahon (Deputy) Ted Baillieu (1 July 1999 to 31 August 1999) Pamela Catty (18 April 2000 to 30 June 2000) Geoffrey Conaghan Kevin Davern (18 April 2000 to 30 June 2000) Christine Fyffe (1 July 1999 to 31 August 1999) Peter Gillooly Marcia Griffin (1 July 1999 to 18 April 2000) David Marriner Denise Scrafton Tom Smith Bee Ho Teow (18 April 2000 to 30 June 2000)
Employment remuneration for Board members is recorded in Section A.
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A remuneration profile of responsible persons is provided below:-
Remuneration Number of Responsible Persons $ 1999-2000 1998-1999
0 - 10,000 9 8 10,000 - 20,000 - 1 20,000 - 30,000 1 1 $'000 $'000 Total remuneration received, or due and receivable by Responsible Persons from the reporting entity amounted to 109 116
The remuneration of the Accountable Officer who is not a member of the governing board is reported under "Executive Officer Remuneration".
C. Executive Officers Remuneration
Tourism Victoria had nine executive officers excluding Responsible Persons whose remuneration was greater than $100,000 in the reporting period. The remuneration range includes the payment of 'performance pay' on the expiry of contracts for periods ranging from one to five years.
Remuneration Number of Executive Officers $ 1999-2000 1998-1999
100,000 - 109,999 1 1 110,000 - 119,999 2 2 120,000 - 129,999 2 - 130,000 - 139,999 1 - 140,000 - 149,999 1 - 160,000 - 169,999 1 3 170,000 - 179,999 - 1 180,000 - 189,999 - 1 210,000 - 219,999 1 -
Total remuneration for the reporting period of executive officers included above amounted to:- $'000 $'000 1,244 1,300
D. Related Parties
Beside the remunerations outlined above, no Board member was involved in any direct transactions with Tourism Victoria, other than “arms length” transactions with entities associated with Board members, such as cooperative marketing agreements.
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1999-2000 1998-1999 $$
15. Notes to Statement of Cash Flow Reconciliation of Net Cash Used in Operating Activities to Operating Surplus/(Deficit)
Operating Surplus/(Deficit) (1,105,770) 285,747 Depreciation 253,209 307,607 Profit/Loss on Sale of Fixed Assets (3,922) (2,667)
Changes in Assets and Liabilities Decrease/(Increase) in Debtors & Prepayments (263,571) (531,326) (Decrease)/Increase in Trade Creditors & Accruals 735,450 1,285,924 (Decrease)/Increase in Deferred Revenue 91,526 271,700 (Decrease) / Increase in Leave Provisions (57,411) 105,848 Net Cash Used in Operating Activities ( 350,489) 1,722,833
16. Lease Commitments Operating Leases 1999-2000 1998-1999 $$ Equipment Due within 1 year 31,629 70,258 Due within 2-5 years 17,415 57,752 49,044 128,010 Properties Due within 1 year 1,166,065 1,313,613 Due within 2-5 years 2,480,930 3,531,684 Due after 5 years 20,624 103,606 3,667,619 4,948,903 Motor Vehicles Due within 1 year 97,844 72,200 Due within 2-5 years 391,376 288,800 489,220 361,000
4,205,883 5,437,913
17. Ex-gratia Payments
There have been no ex-gratia payments made during the reporting period.
18. Contingent Liabilities
Tourism Victoria does not have any contingent liabilities (1999: $0)
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19. Financial Instruments
Terms, conditions and accounting policies
Tourism Victoria's terms, conditions and accounting policies in respect of financial instruments, both recognised and unrecognised, are as follows:
Financial Instrument Accounting Policy Terms and Conditions
Financial Assets Cash at Bank Cash deposits are recognised at reporting Cash is held at deposit, earning interest date, including accrued interest as at balance at a variable rate. date. Interest is recorded as revenue as it accrues.
Trade Debtors Trade debtors are carried at amounts due. Trade debtors are usually on 14-day The collectibility of debts is assessed at balance date terms from date of invoicing date. and specific provision is made for any doubtful accounts.
Financial Liabilities Trade Creditors & Accruals Liabilities are recognised for amounts to be paid Trade Creditors are normally settled in the future for goods or services received, whether 30 days from the date of invoicing. or not billed to Tourism Victoria.
Interest Rate Risk Exposure
Financial Instruments Variable Interest Non Interest Bearing Weighted Effective 2000 1999 2000 1999 Interest Rate $$ $ $ %
(i) Financial Assets Cash on Hand and at Bank 1,885,508 2,641,195 5.35 Debtors 814,773 440,704 Other Receivables 503,329 598,378
Total Financial Assets 1,885,508 2,641,195 1,318,102 1,039,082
(ii) Financial Liabilities
Trade Creditors and Accruals 2,505,556 1,770,106
Total Financial Liabilities 2,505,556 1,770,106
Foreign Exchange Risk
Tourism Victoria's foreign exchange risk is limited to the balance of cash at bank in foreign currencies held at overseas offices.The balance of overseas offices cash at bank at 30 June 2000 was A$224,450.
Credit Risk Exposure
Tourism Victoria's maximum exposure to credit risk at balance date is the carrying amount of debtors as indicated in the balance sheet, net of the provision for doubtful debts.
The nature of Tourism Victoria's business is that it is faced with a small customer base with minimal exposure to each individual customer. To this extent, default by any one customer is not likely to represent a material loss to Tourism Victoria.
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Net Fair Values
The aggregate net fair values of financial assets and financial liabilities at balance date are as follows:
Financial Instruments Total Carrying Amount Aggregate Net Fair Value 2000 1999 2000 1999 $$ $$
(j) Financial Assets Cash on Hand and at Bank 1,885,508 2,641,195 1,885,508 2,641,195 Debtors 814,773 440,704 814,773 440,704 Other Receivables 503,329 598,378 503,329 598,378 Total Financial Assets 3,203,610 3,680,277 3,203,610 3,680,277
(ii) Financial Liabilities Trade Creditors and Accruals 2,505,556 1,770,106 2,505,556 1,770,106 Total Financial Liabilities 2,505,556 1,770,106 2,505,556 1,770,106
visitvictoria.com 39 S TATEMENT BY M EMBER OF B OARD,ACCOUNTABLE O FFICER AND C HIEF F INANCE AND A CCOUNTING O FFICER ......
In the opinion of the Board of Tourism Victoria and the Accountable Officer and Chief Finance Officer of Tourism Victoria, the financial statements comprising the balance sheet, statement of financial operations, statement of cash flows and notes to and forming part of the accounts fairly present the state of affairs of Tourism Victoria and the results of operations for the year ended 30 June 2000.
The financial statements are presented and prepared in accordance with the Financial Management Act 1994.
We are not aware of any circumstances which would render any particulars included in the statements misleading or inaccurate.
Manager Finance
Chairman
Chief Executive
23 October 2000
visitvictoria.com 40 A UDITOR G ENERAL’ S R EPORT ......
visitvictoria.com 41 Complianc´ Inde˛ ......
The Annual Report of Tourism Victoria is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance.This index has been prepared to facilitate identification of compliance with statutory disclosure requirements.
CLAUSE DISCLOSURE PAGE
REPORT OF OPERATIONS
Charter and purpose
9.1.3 (i) (a) Manner of establishment and relevant Minister 1
9.1.3 (i) (b) Objectives, functions, powers and duties 1
9.1.3 (i) (c) Services provided and persons or sections of community served 1
Management and structure
9.1.3 (i) (d) (i) Names of the members of the governing board, audit committee and chief executive 21
9.1.3 (i) (d) (ii) Names of senior office holders and a brief description of each office 23
9.1.3 (i) (d) (iii) Chart setting out organisational structure 23
Financial and other information
9.1.3 (i) (e) Workforce data and application of merit and equity principles 25
9.1.3 (i) (f) Application and operation of the Freedom of Information Act 1982 24
9.1.3 (ii) (a) Summary of financial results with previous four-year comparatives 28
9.1.3 (ii) (b) Summary of significant changes in financial position 28
9.1.3 (ii) (c) Operational objectives for the year and performance against those objectives 26
9.1.3 (ii) (d) Major changes or factors affecting achievement of objectives 26
9.1.3 (iii) (e) Events subsequent to balance date 28
9.1.3 (ii) (f) Full details of each consultancy costing in excess of $100,000 25
9.1.3 (ii) (g) Number and total cost of each consulting engagement costing less than $100,000 25
9.1.3 (ii) (h) Extent of compliance with the Building Act 1993 N/A
9.1.3 (ii) (i) Statement that information listed is available on request 25
9.1.3 (ii) (k) National Competition Policy 25
FINANCIAL STATEMENTS
Statement of financial operations 30
9.2.3 (ii) (a) Operating revenue by class
9.23 (ii) (b) Investment income by class
9.2.3 (ii) (c) Other material revenue by class
9.2.3 (ii) (d) Material revenues arising from exchanges of goods or services
9.2.3 (ii) (e) Depreciation, amortisation or diminution in value
9.2.3 (ii) (f) Bad and doubtful debts
9.2.3 (ii) (g) Financing costs
9.2.3 (ii) (h) Net increment or decrement on the revaluation of each category of assets
9.2.3 (ii) (i) Audit expense
visitvictoria.com 42 Statement of financial position 29
9.2.3 (iii) (a) (i) Cash at bank or in hand
9.2.3 (iii) (a) (ii) inventories by class
9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtors
9.2.3. (a) (iv) Other assets, including prepayments
9.2.3 (iii) (a) (v) Investments by class
9.2.3 (iii) (a) (vi) Property, plant and equipment
9.2.3 (iii) (a) (vii) tangible assets
9.2.3 (iii) (b) (i) Overdrafts
9.2.3 (iii) (b) (ii) Bank loans, bills payable, promissory notes, debentures and other loans
9.2.3 (iii) (b) (iii) Trade and other creditors
9.2.3 (iii) (b) (iv) Finance lease liabilities
9.2.3 (iii) (b) (v) Provisions, including employee entitlements
9.2.3 (iii) (c) (i) Authorised capital
9.2.3 (iii) (c) (ii) Issued capital
9.2.3 (iii) (d) Reserves and transfers to and from reserves
Statement of cash flows 31
9.2.2 (i) (c) Statement of cash flows during the year
Notes to the financial statements 32
9.2.2 (i) (d) Ex gratia payments and amounts written off
9.2.2 (i) (d) . Amounts written off
9.2.3 (iv) (a) Charges against assets
9.2.3 (iv) (b) Contingent liabilities
9.2.3 (iv) (c) Commitments for expenditure
9.2.3 (iv) (d). Government grants received or receivable
9.2.3 (iv) (e) Employee superannuation funds
9.2.3 (iv) (f) Assets received without adequate consideration
9.4 Transactions with responsible persons and related parties
visitvictoria.com 43 OfficeÍ ......
Melbourne (Head Office) New Zealand Tourism Victoria Tourism Victoria 55 Collins Street C/- Australian Tourist Commission Melbourne VIC 3000 Level 13, 44-48 Emily Place GPO Box 2219T Auckland New Zealand Melbourne VIC 3001 Tel: +649 379 0425 Tel: +613 9653 9777 Fax: +649 379 4361 Fax: +613 9653 9722 Regional Manager New Zealand, Ms Margaret Spiro Email: [email protected] Internet: Ta i w a n visitvictoria.com Tourism Victoria visitmelbourne.com Suite 2208,22F tourismvictoria.com.au 333 Keelung Road, Section 1 International Trade Building Adelaide Taipei, 110 Taiwan Tourism Victoria Tel: +8862 2757 6482 Level 4, East Wing Fax: +8862 2757 7088 50 Grenfell Street Manager Taiwan, Mr Edward Chen Adelaide SA 5000 Tel: +618 8231 4582 Japan Fax: +618 8231 9627 Tourism Victoria Regional Manager SA/NT/WA, Leanne Richards Australia Business Centre 28F New Otani Garden Court Brisbane 4-1 Kiyoichi, Chiyoda-ku Tourism Victoria Tokyo 102 Japan Level 6, 545 Queen Street Tel: +81 3 5214 0787 Brisbane QLD 4000 Fax: +81 3 5214 0790 Tel: +617 3221 5200 Regional Manager Japan, Mr Izumi Nagai Fax: +617 3221 4750 Regional Manager QLD, Karen Rose Poyhonen North America Tourism Victoria Sydney 2049 Century Park East Tourism Victoria Los Angeles CA 90067 403 George Street Tel: +1 310 229 4892 Sydney NSW 2000 Fax: +1 310 552 1215 Tel: +612 9299 2288 Regional Manager North America, Fax: +612 9299 2425 Ms Margaret Sparrow Acting Regional Manager NSW/ACT, Jodie Stevens Singapore People's Republic of China Tourism Victoria Tourism Victoria 101 Thomson Road Room 1101A #26-04/05 United Square 11/F Shanghai Bund Singapore 307591 International Tower Tel: +65 255 6888 99 Huangpu Road Fax: +65 255 2922 Shanghai 200080 Regional Manager South Asia, Ms Celia Ho People's Republic of China Tel: +8621 6307 6107 Europe Fax: +8621 6393 8804 Tourism Victoria Regional Manager China and Hong Kong SAR, Mr Russell Jao Kantstr 7 D-64354 Reinheim Germany Tel: +49 6162 85550 Fax: +49 6162 85559 Regional Manager Europe, Ms Hannelore Wagner
visitvictoria.com 44 United Kingdom/Ireland/Scandinavia Tourism Victoria The Australia Centre The Strand London WC2B 4LG United Kingdom Tel: +44 0207 240 7176 Fax: +44 0207 240 7196 Regional Manager UK/Ireland/Scandinavia, Ms Valerie Arends
Tourism Victoria's General Sales Agent
Indonesia Jakarta Express Kompleks Harmoni Plaza Blok J 13 Jalan Suryopranoto No. 2 Jakarta 10130 Indonesia Tel: +62 21 634 8145 Fax: +62 21 345 0018 Marketing Executive, Ms Shinta Rampen
visitvictoria.com 45 Touris VictoriŠA NNUAL R EPORT 1999-2000 ......
Tourism Victoria, Published October 2000, Melbourne,Victoria
Copyright State of Victoria 2000
This publication is Copyright. No part may be reproduced by any process except in accordance with the
provisions of the Copyright Act 1968.
For permission to reproduce from this publication, or for further information,
contact Fiona Athersmith,
Marketing Communications Manager,Tourism Victoria.
Telephone: +613 9653 9864 Email: [email protected]
This Annual Report covers the period 1 July 1999 to 30 June 2000.