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Annual Report 2010–11 13 September 2011 the Hon Annual Report 2010–11 13 September 2011 The Hon. Louise Asher MP Minister for Tourism and Major Events Level 36, 121 Exhibition Street Melbourne VIC 3000 Dear Minister RE: Tourism Victoria Annual Report 2010–11 I am pleased to submit to you Tourism Victoria’s Annual Report. The document outlines the achievements of the organisation for the year ended 30 June 2011. The report has been prepared in accordance with the Tourism Victoria Act 1992 and Financial Management Act 1994. Yours sincerely Dr Janine Kirk AM Chairman Tourism Victoria Tourism Victoria Level 32, 121 Exhibition Street, Melbourne VIC 3000 Australia ABN 18 381 772 530 GPO Box 2219T, Melbourne VIC 3001 Australia tourism.vic.gov.au Tel (03) 9653 9777 Fax (03) 9653 9722 Cover image: Mount William, Boronia Peak, Grampians CONTENTS 1 Our profile 14 Priority Five: Accelerate investment priorities in regional Victoria. 2 Chairman’s Report 15 Priority Six: Deliver on our 3 Acting Chief Executive’s Report commitments outlined in the Regional 4 Our structure Tourism Action Plan 2009–12. 4 Output targets & performance 17 Priority Seven: Build on Victoria’s leadership as a world-class business 5 Victoria’s tourism performance events and major events destination. 7 Priority One: Grow visitation from 19 Priority Eight: Develop organisational China and other emerging markets. and industry capability and 9 Priority Two: Roll out the next phase effectiveness. of Melbourne marketing to interstate 21 Legislative requirements markets. 24 Five year comparison 10 Priority Three: Increase consumer awareness of regional Victoria in 25 Financial report interstate markets. 12 Priority Four: Expand direct international and domestic airline services to the State. OUR PROFILE As a Victorian State Government statutory • To improve and develop tourist authority, established by the Tourism facilities in Victoria. Victoria Act 1992, Tourism Victoria is • To support and coordinate the the vehicle through which the State provision of tourist facilities in Victoria. Government participates in the tourism and travel industries. The Act sets out • To provide more efficient and effective Tourism Victoria’s objectives as follows: utilisation of investment in travel and tourism in Victoria. • To market Victoria as a tourist destination for interstate and As well, our overarching objective is to international travellers. implement State Government policies as they relate to tourism development • To increase in Victoria and contribute to whole – the number of travellers to Victoria of government programs and policy – travellers’ or tourists’ length of stay implementation. at destinations in Victoria – the use of tourist facilities in Victoria. • To increase the amount of travel within Victoria and the use of tourist facilities by Victorians. 1 CHAIRMAN’S REPORT of our major visitor markets – Queensland, Tourism Victoria has been working to New Zealand and Japan – also establish new Regional Tourism Boards experienced significant natural disasters. in partnership with Victoria’s tourism The Victorian storm and flood events regions. These Boards will promote in January and February 2011 occurred and support the local tourism sector in during the critical summer period, the active partnership with local government industry’s busiest and most profitable time. and industry. We see this as critical to The Victorian Government responded delivering positive outcomes for the immediately with a $1 million Tourism regions through a coordinated and well Flood Recovery Program in January, supported effort. boosted by a further $1.5 million in May, My sincere thanks go to my fellow to help affected tourism regions recover board members for their invaluable and rebound. Under this program Tourism leadership and expertise. I acknowledge Victoria delivered strategic marketing the commitment and professionalism of initiatives in partnership with the regions former Chief Executives Gregory Hywood to promote events and attractions in and Mark Stone, and the dedication of I am pleased to present the Tourism flood impacted areas. We also worked our talented leadership team and staff Victoria Annual Report 2010–11. closely with the Victorian Government who work hard to ensure Tourism Victoria and Victorian Employers’ Chamber of Achieving better outcomes for our remains responsive to needs of the Commerce and Industry to provide short industry and our State drives us to Victorian tourism industry. term emergency financial support for improve and succeed. Tourism is a businesses indirectly impacted through To the returning Tourism and Major Events significant economic driver for Victoria loss of income. Minister Louise Asher, our thanks and worth $15.2 billion a year – 5.2 per cent appreciation for her continued support and of the State’s Gross State Product. The By having a diversity of source markets, ongoing collaboration. Minister Asher has tourism industry provides jobs for more the industry has become more resilient to been a strong advocate for the tourism and than 193,000 Victorians, contributing external challenges. To help the industry events sector over many years. 7.2 per cent of employment in tourism compete for the tourist dollar, Tourism and other industries. Tourism Victoria, Victoria will continue to work alongside And, of course, I must congratulate in close partnership with the industry and industry to improve the quality of its Victoria’s tourism operators for their other areas of government, has achieved tourism offerings and skills. continued enthusiasm and resilience. record results in 2010–11. This has been a particularly stressful year In August 2010, Tourism Victoria released in many regions, with floods and an Spending by international visitors to a comprehensive progress report on uncertain economic environment. Victoria reached an all-time high of the industry’s performance against the $4.1 billion. The State saw its highest directions of the 10 year tourism and Tourism Victoria is committed to a number and share of total international events strategy. While indicating that continuing partnership with industry to visitors on record. Despite the long- Victorian tourism is performing ahead of overcome these challenges and pave the term downward trend in domestic target, the review also highlighted new way for a sustainable, profitable future. travel, Australian visitors spent more opportunities. Our targets for industry Tourism Victoria works in a collaborative tourism dollars in Victoria in the year growth in size and value remain ambitious. spirit with our regional, government and and, according to Roy Morgan Research, broader tourism industry partners. With During the financial year we launched Melbourne maintained its number one partnerships, skill improvement and a a plan to address the key challenges in position as the nation’s most popular diversified portfolio of markets, we will attracting and retaining a skilled and holiday city with 21.1 per cent of continue to grow the Victorian tourism experienced tourism workforce. To Australians over the age of 14 preferring industry to benefit all Victorians. encourage the industry to offer tourism to visit Melbourne over the Gold Coast product for all, including those with (18.4 per cent) and Sydney (12.5 per cent). accessibility needs, we also launched Tourism operates in a complex and Tourism Victoria’s Accessible Tourism Plan ever-changing environment. In the past 2010–2013. Dr Janine Kirk AM financial year, Victorians endured high Chairman impact flood events causing hundreds of millions of dollars in damage, saw the Australian dollar soar to its highest value since it was floated in 1983, and some 2 TOURISM VICTORIA ANNUAL REPORT 2010–11 ACTING CHIEF EXECUTIVE’S REPORT Growth in international visitation Like other areas of regional Australia, was underpinned by the number of visitor growth in regional Victoria has international airline partners increasing been flat. To improve the appeal of from 25 to 27 and an overall 15.2 per cent regional destinations, Tourism Victoria is increase in seat capacity from new and working with the regions to establish new increased air services. A record 28.1 million Regional Tourism Boards. These Boards passengers travelled through Melbourne will replace and build on the work of Airport in the year to 30 June. the Regional Campaign Committees to support tourism growth through marketing, Tourism Victoria is playing a lead role product and industry development and in support of industry capability and investment attraction. This year, new Boards effectiveness. The Victorian Competition were established for Daylesford and the and Efficiency Commission (VCEC) released Macedon Ranges, North-East Victoria its interim report Unlocking Victorian (High Country) and The Murray and I thank Tourism: An Inquiry into Victoria's Tourism the local governments and industry for Industry in March 2011. The interim report their support in this process. recommended a number of changes in Tourism Victoria has delivered on the planning and environmental regulation. Tourism Victoria has achieved significant government’s strategic priorities to ensure In its function as a policy advocate to success in a very challenging environment. the Victorian tourism industry continues increase Victoria’s tourism investment During the year, Victorians endured to contribute jobs, exports and regional prospects, Tourism Victoria made a detailed prolonged flooding in the peak tourism development to the Victorian economy. submission to the VCEC, and
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