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 is working season and our largest international This report details the way in which we closely within government to assist with a market, New Zealand, experienced two have achieved our eight key priorities for formal response. significant earthquakes. Other key markets, 2010–11. such as the USA and the UK, experienced Tourism Victoria provides support for a Tourism contributes $15.2 billion to the high unemployment and low consumer number of major events. Due to machinery State’s economy per annum, with tourists confidence, while the Australian dollar of government changes during the year, spending $6.3 billion in regional Victoria reached a 28-year high since it began responsibility for the management of in 2010. That Melbourne has sustained trading freely in 1983. Our industry’s robust the Australian Grand Prix Corporation a higher number of interstate overnight results are more substantial when you contract transferred from the Department visitors per year than Sydney since consider the context in which they were of Planning and Community Development December 2005 confirms Melbourne as achieved. Our successes demonstrate the to Tourism Victoria. This explains the a premier destination offering compelling crucial role tourism continues to play in increase in the Tourism Victoria budget. tourism products and experiences. the economy. I thank management and Melbourne’s major events credentials were staff, and our partners across the industry Victoria’s sustained growth in international strengthened with the Australian premieres and local government, for their ongoing visitation was highlighted by the 7.8 per cent of Tutankhamun and the Golden Age of partnership and support of our important growth in international visitors in the year to the Pharaohs – on track to set an all-time and valuable industry. December 2010, above the national average attendance record for any museum exhibit of 5.1 per cent. hosted in Australia – and Mary Poppins and Love Never Dies. Mary Poppins operated at Enhancing visitor experiences remains full capacity over its nine-month season, a priority as visitation from emerging with 20 per cent of 503,644 ticketholders John Dalton international markets continues to rise. coming from interstate or overseas. Acting Chief Executive For example, visitation from China was up 26 per cent from last year, the market In June 2011 the Minister for Tourism and spending $685 million – the highest spend Major Events, Louise Asher, launched Play of all inbound visitors. China is now the Melbourne – the 10th phase of Victoria’s second largest market for international long-running Jigsaw campaign. This overnight visitors to Victoria. Tourism campaign aims to position Melbourne’s Victoria commenced development of a competitive advantage as Australia’s leading China consumer marketing campaign and cultural tourism destination. China Tourism Plan to ensure Victorian tourism remains attractive to this market in the long term.
3 OUR STRUCTURE
The Hon. Louise Asher MP Minister for Tourism and Major Events
Dr Janine Kirk AM Howard Ronaldson Chairman Secretary Tourism Victoria Department of Business and Innovation
John Dalton Acting Chief Executive Tourism Victoria
OUTPUT TARGETS & PERFORMANCE
Performance indicator Unit of Measure 2010–11 Target 2010–11 Result Comments
Investment projects facilitated $ million 250–300 235 Projects anticipated for 2010–11 were realised earlier than expected and resulted in a larger figure being recorded for 2009–10.
Number of visitors (international) number (million) 1.5–1.7 1.69 *
Visitor expenditure (domestic) $ billion 12.0–13.0 12.19 *
Visitor expenditure (international) $ billion 3.6–4.2 4.1 *
Visitor expenditure in regional Victoria (domestic) $ billion 5.8–6.3 6.0 *
286–331 303 Visitor expenditure in regional Victoria (international) $ million * visitvictoria.com annual visits to site number (’000) 6,500 7,100
Value of media coverage generated (domestic) $ million 20–30 30.4
Value of media coverage generated (international) $ million 40–50 50.75
Victoria’s share of domestic tourism advertising awareness among target per cent 16–21 18.7 markets: interstate
Victoria’s share of domestic tourism advertising awareness among target per cent 21–26 30 markets: intrastate
* Result is for the year ending March 2011 (latest available)
4 TOURISM VICTORIA ANNUAL REPORT 2010–11 VICTORIA’S TOURISM PERFORMANCE
The competitive landscape 1 INTERNATIONAL OVERNIGHT EXPENDITURE IN VICTORIA In the past year, Victoria’s visitor results YEAR ENDING DECEMBER 2010 have been driven by the continued growth 4,500 in overseas arrivals from China, and other $3.9 BILLION emerging international markets. 4,000
3,500 This offset declining visitation from the $ (MILLIONS ) USA and the UK, which was impacted 3,000 by poor economic conditions and the 2,500 4. 9% increasing Australian dollar. YEAR ENDING DEC 2009 2,000 TO DEC 10 At the same time, Australians’ appetite for overseas travel has grown, driven by 1,500 strong price competition in the outbound 1,000 sector, cheap airfares and the strength of 500 the Australian dollar. 0 The surge in outbound travel is reflected DEC MARJUN SEP DEC MAR JUN SEP DEC MARJUN SEP DEC MARJUN SEP DEC in recent data, which shows that 2006 07 08 09 10 Australians took more than 7.1 million short-term overseas trips during the year Source: International Visitor Survey, Year ending December 2010, Tourism Research Australia, Canberra. ending December 2010. Over the same period international arrivals to Australia Melbourne Performance of international markets continued to grow with 5.9 million short- In 2010 Melbourne achieved its highest International overnight visitation term arrivals. As a result, Australia has recorded number of international visitors continued to grow from China, up a net balance of 1.2 million short-term and visitor nights. International overnight 26.4 per cent, and New Zealand up resident departures. visitation increased 7.5 per cent over the 6.8 per cent. The UK was down previous year, to 1.54 million, and the 2.3 per cent and the USA 3.0 per cent. International visitor figures number of nights spent in Melbourne Statewide China now has the highest expenditure grew 4.2 per cent to 35.7 million nights. International overnight visitor expenditure of all inbound visitors to Victoria at in Victoria in the year ending December International expenditure in Melbourne $685 million in 2010. New Zealand 2010 grew by 4.9 per cent to $3.9 billion. increased by 6.1 per cent to $3.7 billion. ($326 million) has overtaken the UK This is the highest spend on record and ($296 million) to become the second Regional Victoria the growth outperformed key competitors largest market for international visitor The spend by international visitors in New South Wales (up 3.0 per cent) and spend in Victoria. regional Victoria decreased by 8.0 per cent Queensland (down 2.7 per cent), as well year-on-year to $288 million. The national Other priority markets that experienced as the national average (up 2.9 per cent). regional average declined by 1.1 per cent, strong year-on-year growth included: This growth is a good result given the while in regional New South Wales it Hong Kong up 28.5 per cent, Malaysia up high Australian dollar and the continuing increased by 15.7 per cent. Regional 24.5 per cent, India up 15.0 per cent and economic difficulties in the USA and UK. Queensland was down by 4.3 per cent. Singapore up 4.1 per cent. International overnight visitation to The year-on-year decrease in regional Victoria increased by 7.8 per cent over Victorian expenditure from 2009 to 2010 the previous year to 1.65 million, a record. was prefaced by the comparatively strong 15.9 per cent increase in regional Victoria This result also outperformed the spend from 2008 to 2009 – a year in which national average (up 5.1 per cent) and regional Victoria experienced exceptionally key competitors New South Wales strong growth, well above growth in (up 4.7 per cent) and Queensland regional Australia (down 0.6 per cent). (up 4.1 per cent). The number of nights international visitors spent in Victoria increased 6.0 per cent to 40.7 million nights.
1 International Visitor Survey, Year ending December 2010, Tourism Research Australia, Canberra.
5 VICTORIA’S TOURISM PERFORMANCE CONTINUED
Domestic (Australian) visitor figures2 DOMESTIC OVERNIGHT INTERSTATE VISITORS TO MELBOURNE & SYDNEY Statewide YEAR ENDING DECEMBER 2010 MELBOURNE SYDNEY The rapid increase in outbound travel 5,000 by Australians has had a major impact on domestic (combined interstate and 4,500 intrastate) travel. However, Victoria MELBOURNE OVERTOOK SYDNEY recorded a small increase in domestic VISITORS (000s) 4,000 overnight visitors – up 0.5 per cent to 15.8 million and expenditure – up 2.7 per cent to $8.6 billion in 2010. 3,500 There was a slight decrease in the number of nights domestic visitors spent in 3,000 Victoria, which were down 0.1 per cent to 49.4 million nights. 2,500
Melbourne 2,000 DEC 00 MAR 01 JUN 01 SEP 01 DEC 01 MAR 02 JUN 02 SEP 02 DEC 02 MAR 03 JUN 03 SEP 03 DEC 03 MAR 04 JUN 04 SEP 04 DEC 04 MAR 05 JUN 05 SEP 05 DEC 05 MAR 06 JUN 06 SEP 06 DEC 0 6 MAR 07 JUN 07 SEP 07 DEC 0 7 MAR 08 JUN 08 SEP 08 DEC 0 8 MAR 09 JUN 09 SEP 0 9 DEC 0 9 MAR 10 JUN 10 SEP 10 DEC 1 0 Domestic overnight visitation to Melbourne was flat at 6.3 million visitors, but domestic overnight visitor expenditure increased 1.4 per cent to $4.7 billion in Source: National Visitor Survey, Year ending December 2010, Tourism Research Australia, Canberra. 2010, which was $46 million more in Melbourne than in Sydney for the period Regional Victoria ($4.7 billion compared to $4.6 billion). Domestic overnight visitor numbers to regional Victoria declined by 0.2 per cent The Roy Morgan Research Holiday to 10 million visitors for the year ending Tracking Survey for the year ending March December 2010. However, domestic 2011 shows Melbourne continues to be overnight visitor expenditure increased the most preferred domestic city, with by 4.2 per cent to $4 billion. 21.1 per cent of Australians aged 14 years or more wanting to visit Melbourne for Domestic daytrip visitation to and within a holiday of one or more nights in the Victoria increased by 1.8 per cent to next two years. This is higher than the 38.6 million daytrips for the year ending preference to visit the Gold Coast December 2010. Year-on-year growth in (18.4 per cent) and Sydney (12.5 per cent). daytrips for Victoria was behind the national average which was up 4.8 per cent. Daytrips Melbourne received 4 million interstate represented 71 per cent of domestic overnight visitors (down 0.6 per cent visitation to and within Victoria and year-on-year) compared to 3.5 million 29 per cent of visitor expenditure in 2010. in Sydney (up 6.0 per cent year-on-year) in 2010. Despite the lower year-on-year Daytrips to regional Victoria increased growth, Melbourne has sustained a higher 1.1 per cent year-on-year to 24.3 million number of interstate overnight visitors for the year ending December 2010, with than Sydney since December 2005. an average annual growth of 3.7 per cent from December 2006 to 2010. Domestic daytrips increased from the previous year’s results for four of the ten regional campaign regions: Yarra Valley and Dandenong Ranges (up 35.4 per cent), Murray (up 20.6 per cent), Gippsland (up 8.8 per cent) and Daylesford and the Macedon Ranges (up 1.0 per cent).
2 National Visitor Survey, Year ending December 2010, Tourism Research Australia, Canberra.
6 TOURISM VICTORIA ANNUAL REPORT 2010–11 1 PRIORITY ONE
Grow visitation from China and other emerging markets.
Tourism Victoria pursues a diverse INTERNATIONAL OVERNIGHT VISITORS (EMERGING) TO VICTORIA* portfolio of markets. In 2010–11 the YEAR ENDING DECEMBER 2010 CHINA MALAYSIA SINGAPORE INDIA organisation accelerated investment in 250 emerging, fast growing markets such as China and India while recognising that the +10.6% long haul markets of Europe and the USA 200
continue to deliver regional dispersal. VISITORS (000s) Core to the international marketing 150 strategy was an aggressive approach to public relations which generated more 100 +17.6% than $50 million in media value. Oprah +4.6% Winfrey's visit to Melbourne in December 50 +19.6% 2010 was a powerful opportunity to put Victoria on the world stage. As one of the key destinations showcased in two 0 episodes of The Oprah Winfrey Show, DEC 06 DEC 07 DEC 08 DEC 09 DEC 10 YEAR ENDING Melbourne achieved significant coverage across 147 countries with a global * AVERAGE ANNUAL GROWTH Source: International Visitor Survey, Year ending December 2010, Tourism Research Australia, Canberra. audience of more than 90 million viewers. Tourism Victoria monitors Melbourne’s Tourism Victoria’s consumer websites China international reputation closely and we achieved record high visitation, with a China had the highest expenditure of continue to perform strongly. Melbourne 12.4 per cent increase from international all visitors to Victoria at $685 million for placed second behind Vancouver in visitors on the previous year. Significant the year ending 2010, nearly 30 per cent the 2010 Economist Intelligence Unit's increases were seen from China and India, higher than the previous year. During Most Livable Cities ranking, once again with growth in website visitation from this period, China overtook the United confirming its long held status as one of both countries exceeding 50 per cent. Kingdom to become the second largest the world's most livable cities. market for international visitors to Victoria. Significant work was undertaken to This shift in ranking was not forecast to Strong global airline partnerships increase Victoria’s reputation as a occur until the end of 2011. With year- remained a critical aspect of our golfing destination, ahead of the 2011 on-year growth of 26.4 per cent, Chinese international marketing efforts in Presidents Cup in Melbourne. Licensed overnight visitation reached its highest emerging markets. Cooperative marketing tour operators were appointed in New number on record at 206,000 visitors, agreements with key airline partners Zealand, the United States, and in Asia in representing 47.8 per cent of all Chinese Qantas Airways, Emirates Airlines, Etihad China, Singapore, Malaysia, Japan, Korea visitors to Australia who visited Victoria. Airways, Qatar Airways, Singapore Airlines, and India, with cooperative marketing China Southern Airlines and China Eastern activities rolling out across these markets. Airlines allowed us to maximise marketing spend during the financial year.
7 PRIORITY ONE CONTINUED
In 2010–11 Tourism Victoria’s public In addition, Tourism Victoria developed an In April the Minister for Tourism and relations activity generated approximately integrated sales and marketing campaign Major Events, Louise Asher launched a $8 million in publicity value in China. In targeting the Australian Open Tennis variety of travel packages for Indian golf addition, Tourism Victoria developed a Championships. Through a partnership fans to attend the 2011 Presidents Cup range of integrated marketing activities with Tennis World Magazine, a national in November. The packages, which were to target China’s increasingly tech-savvy tennis publication, and four licensed tailored to suit a range of budgets and residents. tour operators in Beijing, Shanghai, timeframes, were available through three Guangzhou and Hong Kong, more than licensed tourism operators – Thomas An extensive marketing program was 400 consumers visited Melbourne to Cook, KUONI/SOTC and Tiger Sports undertaken following the Shanghai World experience the 2011 Australian Open Travel – and will also give visitors access Expo in November 2010. The cornerstone Tennis Championships. to play at Melbourne’s internationally of the activities was a major integrated acclaimed golf courses. trade and online consumer marketing India campaign – the ‘Victoria Awards / To harness India’s significant potential South East Asia I Love Melbourne’. The integrated digital for market growth over the next decade Significant cooperative campaign activity marketing campaign and interactive Tourism Victoria increased its investment in underpinned activities in South East microsite attracted 300,000 unique visitors public relations to help drive visitation to Asia in 2010–11. By leveraging industry and 17,000 consumer votes. Twelve key Victoria. This activity generated more than partnerships with other State Tourism distribution partners were selected to $1.4 million in media coverage in India. Organisations (STOs) and airlines, Tourism promote these quality travel experiences. Travel trade engagement extended beyond Victoria undertook a Melbourne Family the core cities of Mumbai and New Delhi Playtime campaign targeted at families. During the year, Tourism Victoria to Bangalore, Chennai, and Kolkata. highlighted the State’s unique nature- Similarly, cooperation between Tourism Tourism Victoria also ran a successful trade based offering in partnership with Phillip Victoria, Qantas, Tourism Australia and mission into India which was supported Island and Zoos Victoria with a highly other STOs focused on touring and by six Victorian tourism products. visible trade and consumer marketing self-drive holidays in the Great Australia campaign. The campaign was delivered An online campaign was launched Journeys campaign targeting ‘young through a range of channels, including to increase consumer visitation to singles’ and ‘double income no kids’ outdoor promotions at the Beijing visitmelbourne.com/in, featuring an markets from March to September 2010. Zoo, newspaper advertisements, media interactive digital quiz. The campaign Victoria-specific advertisements featuring familiarisations and a public relations ran in partnership with India’s leading the Great Southern Touring Route, program. A range of supporting travel online travel company, Make My Trip, specifically the Grampians, appeared in packages were also developed by key and encouraged the Indian audience the daily Singaporean newspapers of travel agency partners. to interact with unique experiences in Straits Times and TODAYOnline, in addition Melbourne and Victoria. The three- to being distributed to Tourism Australia’s To support the launch of China Southern week campaign was supported through Aussie Specialists travel agents database. Airlines daily flights to Melbourne, electronic direct mail to an extensive Tourism Victoria developed an integrated Tourism Victoria also collaborated with client database which attracted more marketing campaign throughout China. Air Asia X, Tourism Western Australia, than 11,000 entries and received more Brand and tactical advertisements through and Tourism Queensland to commission than 14 million page views. a range of print, outdoor, radio and online a 10-part travelogue, Now Everyone Can media channels promoted Victoria and Fly To Australia, which was telecast to an the new air services. estimated audience of 800,000 people in Malaysia. Air Asia X was a key partner in the Chillout In Winter campaign, promoting travel to Victoria’s snowfields China overtook the United from June to October. Kingdom to become the second largest market for international visitors to Victoria.
8 TOURISM VICTORIA ANNUAL REPORT 2010–11 2 PRIORITY TWO
Roll out the next phase of Melbourne marketing to interstate markets.
The campaign aims to convert a Tourism Victoria also developed a strategic high domestic preference to travel to partnership with Virgin Australia Group for Melbourne into actual visitation, evolve the launch of Play Melbourne. This is the the Melbourne brand to incorporate first time Tourism Victoria has partnered more active and energetic elements, with an airline group in a major domestic and position Melbourne as a premium brand campaign for Melbourne. destination by highlighting the authentic Play Melbourne is led by a year-long qualities of the city. competition in which Tourism Victoria, The Play Melbourne campaign intends to in conjunction with Virgin Australia, is encourage participation from potential giving away a weekend for two every week, tourists by inviting them to explore for 52 weeks. The benefits of combining Melbourne on a whim and to tell their a major advertising campaign with social friends. It is designed to attract interstate media were demonstrated instantly, after visitors from the key markets of Sydney, the first competition winner saw the Brisbane, Adelaide, Perth and Canberra, television commercial on YouTube after and predominantly targets Creative it was shared by a friend on Facebook. Opinion Leaders who have extensive The cornerstone of the campaign social networks and are strong generators Play Melbourne campaign image is the dedicated microsite, of positive word of mouth. playmelbourne.com.au which is In June 2011 the Minister for Tourism and The campaign was launched with complemented by online activity and the Major Events Louise Asher unveiled the next a 60-second television commercial Play Melbourne iPhone application. phase of Victoria’s highly successful tourism which aired nationally across free-to-air marketing Jigsaw campaign, Play Melbourne. television networks and subscription The $14 million Play Melbourne campaign, channels. Play Melbourne is a fully to be implemented over three years, integrated media campaign which seeks to deepen visitors’ appreciation of includes television, cinema, print and Melbourne’s creative culture and reinforce radio advertising, as well as online – its reputation as Australia’s most culturally including social media – and public diverse city. relations activity.
9 3 PRIORITY THREE
Increase consumer awareness of regional Victoria in interstate markets.
Daylesford. Lead a double life campaign local tourism stakeholders indicated pave the way for advertisements, reader In 2010–11 Tourism Victoria and the the campaign had a positive impact on promotions, advertorials and sponsored industry continued to implement the enquiries and bookings in the region. reader events over the next two years. $7.3 million Daylesford. Lead a double The placement of the Daylesford. Lead The campaign results to date have been life regional tourism campaign in the key a double life television commercial during positive with Victoria maintaining its interstate markets of Sydney, Adelaide an advertising break on the Masterchef strong position in the spa and wellbeing and Brisbane. finale optimised exposure, reaching market. In the 2011 Brand Health Survey The campaign positions Daylesford as the 37 per cent of the Australian viewing Victoria increased its lead by 2 percentage premium destination for a spa and wellbeing population with 5.4 million viewers. points to reach 26 per cent as the lead short break among high-income earning state recognised for offering spa and From February to June 2011, a dedicated females aged between 30 and 59 in Sydney, wellbeing experiences. print campaign featured in publications through targeted print media activities. such as InStyle, Belle, Gourmet Traveller Villages of Victoria program A secondary objective was to increase and Women’s Health. The print activity To enable other regions to leverage the visitation from Adelaide, capitalising was supported by public relations activity Daylesford. Lead a double life campaign, on this market’s significant increase in which included sponsorship of a Business Tourism Victoria continued to work with unprompted awareness from 1.9 per Chicks breakfast event held in Sydney in Regional Tourism Boards and Regional cent to 10.2 per cent in 2009 3. Tourism May 2011. The breakfast was attended by Campaign Committees to highlight the Victoria is working with the Daylesford over 1,500 influential business women, 27 iconic regional villages featured in the and Macedon Ranges region to develop including the Minister for Tourism and cooperative Villages of Victoria marketing supporting offers. Major Events Louise Asher and Olivia program. Newton-John. From July to October 2010, a $1.1 million Following the success of the 2009–10 integrated advertising campaign was In addition, a significant media partnership Villages of Victoria activity, an additional implemented nationally through SBS and was developed with Marie Claire, a flagship $6 million was secured to execute subscription television, cinema, online publication for the target audience and the program over four years to 2014. and print advertising. Daylesford and a natural fit for the Daylesford brand. Significant marketing activity is being the Macedon Ranges Tourism generated The first initiative was a 16-page fold undertaken, with a particular focus on the significant industry buy-in of almost out insert that showcased Daylesford’s food and wine, nature-based and spa and $250,000 to support this campaign spa and wellbeing offering and strengths wellbeing experiences in and around the with tactical activity. Feedback from in food and wine. The partnership will villages of Victoria.
3 Brand Health Survey, Roy Morgan Research 2009.
10 Daylesford. Lead a double life campaign advertisement
Qualitative research was undertaken in • Dedicated content was secured Quality marketing assets were also January 2011 to gain further insights into on television programs including a produced, including videos for six consumer attitudes and perceptions of refreshed sponsorship of Channel ‘hero’ and priority villages (Warburton, villages and regional Victoria. Focus groups Nine’s Postcards series and Channel Sassafrass, Olinda, Healesville, Halls Gap in Melbourne, Sydney and Adelaide were Seven’s No Leave No Life. and Maldon), with regional photography conducted finding that Victoria’s villages undertaken for Barwon Heads. • A content audit was undertaken are a highly motivating tourism offer, to identify opportunities to profile The 2011 Brand Health Survey indicated particularly with the over-45 market. villages through key websites including that Victoria had maintained its The 2010-11 Villages of Victoria program Wikipedia, tripadvisor.com, Google leading position as the number one focused on building marketing content, maps and other social networking sites. state recognised for having a variety of and distributing this through key interesting and unique villages, with • A media promotions and marketing channels. 20 per cent of respondents selecting familiarisations program generating Victoria ahead of our competitor states. The following interstate marketing coverage on spa and wellbeing, activities were undertaken: food and wine and nature-based experiences in and around the villages. • A cooperative promotion was undertaken with Fairfax Media through Good Living in Sydney in conjunction with Regional Tourism Boards. The series highlighted Victoria’s food and In the 2011 Brand Health Survey wine villages and was supported with food and wine offers. Victoria increased its lead by 2 percentage points to reach 26 per cent as the lead state recognised for offering spa and wellbeing experiences.
11 4 PRIORITY FOUR
Expand direct international and domestic airline services to the State.
Victoria’s major airports continued to ANNUAL PASSENGER GROWTH BY AIRPORT defy the odds attracting significant growth YEAR ENDING DECEMBER 2010 INTERNATIONAL DOMESTIC in visitors throughout the year, despite the rising Australian dollar, floods in 13.5% Queensland and Victoria, earthquakes MEL in Japan and New Zealand, unrest in the MELBOURNE 6.2% Middle East and North Africa and the sharp rise in oil prices slashing the global aviation industry’s profit expectations. SYD 4.5% Melbourne Airport was Australia’s best SYDNEY 4.0% performing major airport in terms of growth, recording a 7.7 per cent increase 3.6% on June 2010 to reach more than BNE 28.1 million passengers in the year ending BRISBANE 6.0% June 2011. This record feat highlighted sustained growth in overseas visitors and 05 10 15 Melbourne’s resilience as a key tourism GROWTH (%) and business city. Source: Melbourne, Sydney and Brisbane Airports Of the 28.1 million travellers through Melbourne Airport, 6.2 million were Direct air services are critical to growing A long-term objective of the Victorian international passengers – a 13.5 per cent Victoria’s export sectors, particularly Government has been to secure more increase on the previous year. This strong international education, tourism and international direct flights to Melbourne. international performance, driven by trade in high value low volume goods. Persistent efforts have brought results. increased travel from Asian markets, Tourism Victoria actively works to improve was notably greater than Sydney Airport air services between Victoria and key (up 4.5 per cent) and Brisbane Airport international markets. (up 3.6 per cent).
12 Twenty-seven international airlines now service Melbourne Airport, accounting for 320 weekly international services.
Domestically, Melbourne Airport’s Australian passenger count rose 6.2 per cent to reach 21.9 million passengers, continuing to outperform Sydney (up 4 per cent) and Brisbane (up 6 per cent). In November 2010, Avalon Airport became the third Australian base for Tiger Airways Australia. Avalon Airport continues to be served by Jetstar as well as regional carrier, Sharp Airlines. During the financial year, Avalon Airport served 850,000 domestic passengers. Extensive infrastructure work was undertaken on the airport’s hardstand to accommodate the increased number of aircraft operating at the airport. In November 2010, the 127th Melbourne Airport. Photo: James Lauritz International Air Transport Association Scheduling Conference was held at the Victoria continued to be an attractive In 2010-11, Victoria welcomed new Melbourne Convention and Exhibition option for international airlines wanting international airlines Royal Brunei Airlines Centre. It was the first time Melbourne to commence or increase services. and Strategic Airlines, new A380 services had hosted the high profile conference Twenty-seven international airlines now from Qantas and increased services from which was attended by 904 delegates service Melbourne Airport, two more China Southern Airlines, China Eastern from 300 airlines and 200 airports from than last year, accounting for 320 weekly Airlines, Vietnam Airlines, Jetstar and around the world. The event provided international services – up from 281. Philippine Airlines, bringing more a significant opportunity to showcase This equates to a 15.2 per cent boost in tourists and business visitors to Victoria Melbourne and its aviation infrastructure passenger seat capacity resulting in a from overseas. to key airline decision makers, helping 2.0 per cent increase to Melbourne to grow the city’s position as Australia’s Airport’s share of overall Australian seat aviation gateway. capacity to 23.1 per cent.
13 5 PRIORITY FIVE
Accelerate investment priorities in regional Victoria.
New investment and infrastructure Tourism Victoria is working with the large cruise ships. Concept plans have been helps our industry venture into new Department of Business and Innovation prepared and a business case is planned. territory while fuelling visitation. In through the Leveraging Global Tourism Victoria also worked with the City 2010–11, Tourism Victoria facilitated Opportunities program to investigate of Greater Geelong in planning a mineral $235 million in investment. And we the potential of the Middle East market spring bathhouse and spa complex at accelerated priority investment in for outward tourism investment and Eastern Beach overlooking the Geelong regional Victoria aligned with our product infrastructure in Victoria. waterfront. Concept plans and technical strengths of nature-based tourism, high The Frankston Safe Boat Harbour project studies have been prepared to assist in quality accommodation and business has advanced over the year with successful determining the project’s feasibility and conferencing facilities. consideration of issues such as hill potential to attract the necessary investment. New projects that Tourism Victoria stabilisation, public boat ramps and cultural Tourism Victoria worked with the Colac facilitated included the Dromana Estate heritage in order to assist investors to deliver Otway Shire plan to redevelop Apollo development on the Mornington a successful tender in the coming year. Bay’s harbour and waterfront precinct. Peninsula, the RACV Torquay, the Work is currently underway to facilitate Consultation was undertaken to determine Warburton Resort and the Vintara a high quality, boutique nature-based the level of community support for the Winery Resort in Rutherglen. In addition, tourism lodge on a site along the Great master plan, including the potential for some of Victoria’s newest regional hotel Ocean Road. This facility would have a boutique hotel to be developed in the developments opened their doors with the potential to showcase Victoria’s harbour precinct. the Mercure Horsham and Quest Portland premier natural attraction, capitalise on opening in September 2010 and April Victoria’s ski fields form a key part of the the significant visitation to the region 2011 respectively. Victorian tourism experience. To facilitate and highlight the state in our marketing the growth and attractiveness of these Following the return of the Point campaigns. This project is complemented areas, Tourism Victoria also assisted the Nepean Quarantine Station from the by Tourism Victoria’s assistance to Mount Buller and Mount Stirling Resort Commonwealth to Victoria, Tourism the Corangamite Shire Council in the Management Board with a master plan to Victoria and Parks Victoria examined the proposed rezoning of a number of sites to identify key investment opportunities to grow opportunity for a high quality boutique better facilitate tourism investment. Mount Buller as a year round destination. hotel to be built on the Quarantine Station Tourism Victoria continued to assist the precinct. The hotel’s master-planning As part of the Victorian Government’s City of Greater Geelong plan for a new process has been undertaken with the $14.5 million election commitment pier at Geelong’s waterfront to create community and stakeholders. to the redevelopment of Mildura’s Victoria’s second cruise ship port. The Riverfront, Tourism Victoria assisted project involves the construction of a new Regional Development Victoria with the pier at the end of Yarra Street, a possible implementation of stage one project marina for the Royal Geelong Yacht Club initiatives. and channel deepening to accommodate
14 6 PRIORITY SIX
Deliver on our commitments outlined in the Regional Tourism Action Plan 2009–12.
The Regional Tourism Action Plan 2009–2012 A review of the first two operational 2009 Bushfire recovery (RTAP) was released in December 2008 RTBs (Grampians and Gippsland) was Tourism Victoria continues to provide and provides a clear direction to stimulate undertaken to track the Boards’ progress, ongoing support to RTBs to implement growth in regional tourism. A report card, highlight positive outcomes and identify recovery initiatives as part of the $10 released in February 2011, outlined progress areas for improvement. million 2009 Bushfire Recovery Program. to date and key outcomes for the year Regional Marketing Program A number of initiatives were undertaken, ending December 2010. The 2009-12 Regional Marketing Program including: A key outcome has been the development provides $2 million in marketing funds • $1.7 million was provided for tourism and implementation of annual Regional annually to RTBs. Tourism Victoria marketing and events in relation to Marketing and Development Plans for the worked with the Boards to develop the Marysville triangle to assist in the 10 campaign regions of Victoria. and implement annual marketing plans economic recovery of fire affected and cooperative and tactical marketing Establishing Regional Tourism Boards areas from 2011 to 2014. activities to garner industry participation Tourism Victoria is progressively working and drive regional visitation. • Victoria’s High Country implemented a with the regions of Victoria to establish range of marketing campaigns highlighting new Regional Tourism Boards (RTBs). In Expansion of the adventure trails, cycling, the Great Alpine 2010–11, Tourism Victoria facilitated the Tourism Excellence Program Road, food and wine and cycling. establishment of RTBs for Daylesford and The Tourism Excellence Program is a key the Macedon Ranges, North-East Victoria tool in improving service standards and • Destination Gippsland implemented a (High Country) and The Murray. Joining business practices. In 2010–11, the RTBs summer campaign focusing on coastal, the Grampians, Gippsland, and the Yarra and Regional Campaign Committees lake, and water-based experiences Valley and Dandenong Ranges, these three hosted Tourism Excellence workshops and an autumn campaign highlighting Boards are now operational in line with attended by 900 tourism businesses. Gippsland’s unique events. the guidelines presented in the RTAP. More than 1,200 businesses were audited • Yarra Ranges Regional Marketing to assess customer service delivery Processes have commenced to establish worked with Tourism Victoria to and 17 businesses graduated from the Boards for the Great Ocean Road, undertake filming of the region’s International Mentoring Program. Mornington Peninsula and the Goldfields. villages. In addition, the region The establishment of Boards for these regions attended the Taste of Sydney festival and Phillip Island are a priority for 2011–12. and worked to develop a signature food and wine event.
15 PRIORITY SIX CONTINUED
Flood recovery campaign to promote The Murray
• The Murrindindi Mitchell Response to identify the physical and economic • $400,000 in funding grants to and Recovery Group, working with impacts to regions and ensuring tourism the Regional Tourism Boards and Yarra Ranges Regional Marketing, issues were considered in broader Campaign Committees in the five implemented public relations activity emergency messaging. impacted regions to support their own and online marketing including the recovery initiatives. In January 2011, the Victorian Government development of an iPhone application. announced a $1 million, 18-month Tourism In May 2011 a further $1.5 million was An Official Visitors Guide was Flood Recovery Program aimed at restoring announced to promote the flood affected also produced. visitation to the Victorian regions affected by regions of the Murray, Grampians and • Tourism Victoria also worked the floods. South Gippsland. The funding will support closely with the Department of marketing activities and events to attract Tourism Victoria worked in conjunction Justice, Department of Sustainability visitors back to flood affected areas. with RTBs and Campaign Committees to and Environment and emergency This funding is in addition to whole-of- implement the program which includes services agencies on a FireReady government support for small businesses a number of initiatives to be implemented communication strategy. such as clean up and restoration grants from March 2011 to June 2012: and the Small Business Mentoring Service. Flood recovery • $300,000 immediate response advertising The January and February 2011 flood and campaign aimed at mitigating negative storm events impacted tourism businesses perceptions and generating visitation to in the western half of Victoria, specifically impacted regions for the March Labour parts of the Grampians, Great Ocean Day and Easter holiday period. Road, the Murray, the Goldfields and Daylesford and Macedon Ranges regions. • $300,000 to generate positive advertorial or editorial support for The floods affected more than 3,300 the key flood affected regions. properties, resulting in approximately Initiatives included features on $176 million of lost revenue to the television programs including Postcards tourism industry. More than 4,000 small and Coxy’s Big Break and across print businesses and primary producers were media including the Herald Sun and directly or indirectly affected by the flood Royal Auto. events. Tourism Victoria played a lead role in the Victorian Government’s response to the floods by taking immediate action
16 TOURISM VICTORIA ANNUAL REPORT 2010–11 7 PRIORITY SEVEN
Build on Victoria’s leadership as a world-class business events and major events destination.
Tourism Victoria works closely with a Tourism Victoria continued to forge strong from Australia, Europe, North and number of government agencies, event partnerships with the domestic travel South America, Asia, the Middle East promoters and organisers and the Victorian industry to underpin interstate brand and New Zealand. The event provided Major Events Company to maximise activity in-market and to promote major excellent branding and profiling tourism impacts of major events staged sporting and cultural events including the for Melbourne through signage, in Melbourne and Victoria. In 2010–11, Melbourne Winter Masterpieces series, the vignettes, and sweeping footage of Tourism Victoria advised the Victorian Vodafone Ashes Boxing Day Test Match, the city shown to a large international Government on major events, as well as the 2011 Presidents Cup and the 2011 audience. coordinating and overseeing all funding Australian Open Tennis Championships. Placement of the Melbourne brandmark submissions for the acquisition of major Significant highlights included: at internationally renowned sporting events and business events for the State. events like the 2011 Australian Open • Mary Poppins finished its Melbourne Victoria’s year-round major events Tennis Championships, 2011 FORMULA season on 1 April 2011 after selling calendar included a variety of hallmark 1 Qantas Australian Grand Prix, UCI Road at full capacity over its nine-month sporting events and theatre shows this World Championships, and the JBWere season. The performances were year. Throughout 2010–11, Tourism Masters secures unique coverage and seen by 503,644 ticketholders with Victoria implemented tourism marketing brand exposure. approximately 20 per cent coming campaigns, familiarisation programs for from interstate or overseas. Tourism Victoria produced a new media and trade and leveraged broadcast 30-second television commercial to media activities for events such as the • The 2011 Australian Open Tennis capitalise on the global broadcast UCI Road World Championships, JBWere Championships, held from 17–30 opportunities presented by Victoria’s major Masters, the 150th Melbourne Cup January, attracted 651,127 spectators. events. The commercial debuted in the Carnival, the 2011 FORMULA 1 Qantas There was significant media coverage broadcast of the 2011 Australian Open Australian Grand Prix, and a raft of theatre of the event including 386 Australian Tennis Championships and was seen by shows including Mary Poppins, Rock of and 320 international media outlets millions of people worldwide. Ages and Love Never Dies. and a total of 36 television networks
17 PRIORITY SEVEN CONTINUED
The Victorian business events industry is estimated to be worth more than $1.2 billion per annum, providing 22,000 jobs.
Tourism Victoria funded the development International conferences held at MCEC of various cultural exhibitions held during the year included: in Bendigo and assisted in securing • The International Society for additional funding from the Major Events Haematology and Stem Cells Fund to support the Bendigo International Conference, (September 2010) which Collection series of cultural exhibitions. hosted 750 attendees. Tourism Victoria assisted with the creation • The Asian and Oceanian Epilepsy of a new cultural exhibition that focused Congress (October 2010) which on photography, the Ballarat International attracted 2,000 delegates. Foto Biennale, and the creation of the Gippsland Lakes Boat Muster – a new • The International Air Transport water-based major event for Gippsland. Association Conference (November 2010) which was attended by 904 Melbourne remains a competitive delegates, 94 per cent of whom were business events destination. The Victorian from overseas. Statistics from the business events industry is estimated to be Melbourne Convention and Visitors Mary Poppins © Disney/CML worth more than $1.2 billion per annum, Bureau also estimated that 47 per providing 22,000 jobs. With a $1.45 million allocation from the cent of delegates travelled with an Events Program, Tourism Victoria continued Melbourne’s ‘6 Star Green Star’ accompanying person. to assist with the creation, development Convention and Exhibition Centre In October 2010, Business Events Victoria and marketing of events held in regional (MCEC) is recording strong business event – a collective, membership-based group Victoria, while working with regionally- bookings, with more than 90 international of conference venues, accommodation based shires on the development or business events secured. In the year providers, tour operators, local councils, refocusing of their event strategies. ending December 2010, the number regional tourism organisations and service of domestic overnight business event Throughout the year Tourism Victoria providers – was appointed to facilitate visitors to Melbourne reached 175,000, supported various product segments in the delivery of the Regional Business an increase of 14.4 per cent from the cycling, food and wine, and golf events Events Program across Victoria. The focus previous year. to complement relevant Tourism Victoria of the Program is to facilitate and attract strategies. business events to the regions, and build relationships between public and private stakeholders to generate bids to secure events. The Program will also develop and implement marketing activities to promote the capability of Victoria’s regions to host and attract business events.
18 TOURISM VICTORIA ANNUAL REPORT 2010–11 8 PRIORITY EIGHT
Develop organisational and industry capability and effectiveness.
Industry In November 2010, Tourism Australia Tourism Victoria will conduct a product In this highly competitive environment, released the 2020 Tourism Industry gap audit in the Great Ocean Road region Tourism Victoria works in partnership Potential, calling for the Australian tourism which will deliver reports that outline with industry to pave the way for future industry and governments to focus on the tourism infrastructure and products growth. In August 2010, Tourism Victoria increased returns from the tourism sector. required to cater for forecast and potential released the 10 Year Tourism and Events Tourism Victoria is currently reviewing the visitor numbers over the long term. Industry Strategy: Progress Report. The implications of this report for the State The Victorian Competition and Efficiency review indicates Victoria’s tourism industry and our strategic direction. Commission (VCEC) released its interim has been performing ahead of target since To drive the growth potential of Victorian report Unlocking Victorian Tourism: An the strategy’s release almost five years ago. tourism, Tourism Victoria works closely Inquiry into Victoria’s Tourism Industry Our targets for industry growth in size and across all tiers of government to place in March 2011. The inquiry identifies value remain both ambitious and relevant. tourism at the forefront of government regulatory and other major impediments During the year Tourism Victoria decision making. to the future development and growth completed its Corporate Plan 2011–15 of the industry. The interim report Tourism Victoria chairs the Investment which sets out a clear approach to recommended a number of changes in and Regulatory Reform Working Group of realising the Victorian Government’s goals the areas of planning and environmental the National Long-Term Tourism Strategy. of growing Victorian tourism. The plan regulation, to remove unnecessary barriers Comprising representatives from the identifies the following priority action to tourism investment. Tourism Victoria private and public sectors across a range areas over the next three years: was actively involved in the review of portfolios, the working group considers process, working with VCEC throughout • Attracting high-yield initiatives to lower barriers to tourism the development of its report. Tourism international visitors investment and general options for Victoria provided a submission on regulatory reform. • Increasing the domestic market key issues affecting the tourism sector The working group has commissioned and met directly with Commissioners. • Attracting and leveraging events a review into barriers to investment Tourism Victoria also assisted VCEC by • Maximising our digital marketing in the tourism industry and a review facilitating meetings with regional tourism opportunities of best practice facilitation. Final representatives and publicising the recommendations arising from both inquiry through industry communications • Increasing aviation access reports will be presented to the Tourism channels. A final report was delivered to • Investment attraction Ministers’ Council in late 2011. the Treasurer on 1 June 2011. Tourism Victoria is working with other agencies • Infrastructure development on a government response. • Investing in our workforce.
19 PRIORITY EIGHT CONTINUED
To drive the growth potential of Victorian tourism, Tourism Victoria works closely across all tiers of government to place tourism at the forefront of government decision making.
To help the industry respond to crisis The 2010 instalment of the RACV Victorian Organisational situations such as bushfires, Tourism Tourism Awards again recognised the Tourism Victoria is committed to sharing Victoria conducted a series of regional drive and innovation of individual its knowledge and resources to deliver workshops with tourism stakeholders in businesses to remain at the forefront industry growth. To enable staff to rise to high-risk bushfire areas. Tourism Victoria, of the industry. The awards showcased this challenge, the organisation continues to in partnership with the Department the work of Victorian tourism operators invest in developing employees’ skills and of Primary Industries and RTBs, also while providing participants with practical behaviours by learning from on-the-job conducted workshops to help Regional assistance – through workshops and experiences, workplace relationships and Tourism Managers prepare for the mentorships – to help them build on their feedback, and formal training opportunities. potential tourism impacts of forecasted success and achieve a competitive and At least 123 training programs were locust activity in parts of the State. marketable edge. The program attracted undertaken by Tourism Victoria staff 135 participants, a 30 per cent increase on Bushfire preparedness workshops were during the financial year. Areas of training 2009 program participants. delivered to regional tourism managers included digital marketing workshops, and officers in December 2010. Training Victoria took top honours at the 26th high impact communications, executive was based on information in the Qantas Australian Tourism Awards hosted coaching, and leadership performance Crisis Communications Handbook for by the National Tourism Alliance in Perth and coaching. Regional and Local Tourism and crisis in March 2011 across five categories: media training. Topics included the Tourism Marketing (Destination establishment of Regional Response and Gippsland), Visitor Information and Recovery Groups as well as a special crisis Services (Bendigo Visitor Centre), Tourism media management session, conducted Restaurants and Catering Services (Max’s by Media Manoeuvres. at Red Hill Estate), Specialised Tourism Services (Mornington Peninsula Tourism) and Tourism Education & Training (Holmesglen). These results show that Victoria is a national leader in tourism thanks to the dedication and creativity of individuals and businesses that strive to deliver quality visitor experiences.
20 TOURISM VICTORIA ANNUAL REPORT 2010–11 LEGISLATIVE REQUIREMENTS
As a Victorian State Government statutory authority established by the Tourism Victoria Act 1992, Tourism Victoria is the vehicle through which the Government participates in the tourism and travel industries.
Attestation on compliance with Progress in Implementing National Other Information the Australian/New Zealand Risk Competition Policy Other relevant information relating to Management Standard Implementing National Competition the financial year is retained by the I, Janine Kirk certify that Tourism Victoria Policy does not impact on the business of accountable officer and made available has risk management processes in place Tourism Victoria. to the relevant Minister, Members of consistent with the Australian/New Zealand Parliament and the public on request. Reviews of Legislation that Restrict Risk Management Standard and an internal Competition Summary of additional information control system in place that enables No reviews were undertaken in 2010–11 available on request the executive to understand, manage in relation to legislation relating to Tourism The following information is available and satisfactorily control risk exposures. Victoria. on request: The Corporate Governance and Audit Committee verifies this assurance and that Application of the Competition Test • A statement that declarations of private the risk profile of Tourism Victoria has been to New Legislative Proposals interests have been duly completed by critically reviewed within the last 12 months. No new legislation was introduced during all relevant officers. 2010–11 relating to Tourism Victoria. • Details of publications produced Application of Competitive Neutrality during 2010–11. Principles to significant Government • Details on any major external review business activities Dr Janine Kirk AM carried out during 2010–11. Tourism Victoria does not undertake Chairman any significant Government business • Details of any major research and Tourism Victoria activity with respect to the application of development activities. OTHER RELEVANT INFORMATION competitive neutrality principles. • Details of overseas visits undertaken. Legislation Application of Competitive Neutrality Tourism Victoria was established under • Details of major promotional, public principles to In-House Bids the Tourism Victoria Act 1992. The Act relations and marketing activities There were no in-house bids relating to outlines Tourism Victoria’s functions, undertaken during 2010–11. Tourism Victoria in 2010–11. powers and duties. The information is available from: Engagements of Consultants for 2010–11 Merit and Equity Statement Group Manager Business Services in excess of $100,000 In accordance with Government policies Tourism Victoria Tourism Victoria engaged two consultants, and guidelines, all appointments to GPO Box 2219T each with a total consultancy cost above Tourism Victoria in 2010–11 were made Melbourne VIC 3001 $100,000 during the 2010-11 year. The total on the basis of merit. Telephone: (03) 9653 9721 cost of consultancies in the financial year Employees’ Health and Safety was $425,000. This year’s Annual Report for the Engagements of Consultants for Department of Business and Innovation 2010–11, $100,000 and under (DBI) covers occupational health and Tourism Victoria engaged one consultant safety matters and performance indicators with a total consultancy cost below concerning staff employed in the Tourism $100,000 during the 2010-11 year. Victoria offices. See the Department’s The total cost of the consultancy in the Annual Report 2010–11. financial year was $89,870.
21 LEGISLATIVE REQUIREMENTS CONTINUED
Workforce data as at 30 June 2011
Ongoing Employees Fixed Term & Total Employees Casual Employees
Full time Part time Total Total Total Total (headcount) (headcount) (headcount) (FTE) (FTE) (FTE)
June 2010 84 12 96 90 5 95 June 2011 88 11 99 94 11 105
June 2010 June 2011 June 2011 totals (FTE) Ongoing Employees Fixed Term & Ongoing Employees Fixed Term & Casual Employees Casual Employees
Headcount FTE FTE Headcount FTE FTE
Gender Male 33 33 1 36 36 3 39 Female 63 57 4 63 58 8 66
Age Under 25 2 2 – 2 2 – 2 25–34 35 34 3 34 32 7 39 35–44 30 25 2 32 30 4 34 45–54 19 19 – 20 19 – 19 55–64 8 8 – 9 9 – 9 Over 64 2 2 – 2 2 – 2
Classification VPS1 – – – – – – 0 VPS2 3 3 – 1 1 – 1 VPS3 17 16 2 15 14 1 15 VPS4 25 23 3 27 25 5 30 VPS5 27 25 1 29 27 4 31 VPS6 18 18 – 21 21 1 22 STS 1 1 – 1 1 – 1 Executives 6 6 – 5 5 – 5
22 TOURISM VICTORIA ANNUAL REPORT 2010–11 DIVERSITY, EQUALITY AND Request for documents in the possession of Reporting procedures ENVIRONMENTAL MANAGEMENT Tourism Victoria should be addressed to: Disclosures of improper conduct or Tourism Victoria is committed to the detrimental action by Tourism Victoria Mr Darcy Provatas employment and engagement of people or our employees may be made to the Freedom of Information Officer from a diverse range of backgrounds, both following persons: GPO Box 2219T in our workplace and in the communities Melbourne VIC 3001 Tourism Victoria’s Protected Disclosure in which we operate. Telephone: (03) 9653 9721 Coordinator is: Throughout the year, Tourism Victoria Facsimile: (03) 9653 9755 Mr John Dalton complied with the office-based environ- Requests can also be lodged online Acting Chief Executive mental performance improvement initiatives at foi.vic.gov.au. Tourism Victoria and requirements of the Department of Level 32, 121 Exhibition Street Business and Innovation (DBI). From 1 July 2011, the required application Melbourne VIC 3000 fee per request is $24.40. The Department manages matters relating [email protected] to the application of merit and equity Access charges may also apply once Tourism Victoria’s Protected Disclosure principles and environmental practices. documents have been processed and a Officer is: See the DBI Annual Report 2010–11. decision on access made, for example photocopying, search and retrieval charges. Mr Darcy Provatas FREEDOM OF INFORMATION Group Manager Business Services Freedom of Information Act 1982 – Further information regarding Freedom of Tourism Victoria Section 7 Information can be found on FOI Online, Level 32, 121 Exhibition Street Publication Requirements foi.vic.gov.au. Melbourne VIC 3000 The Victorian Freedom of Information WHISTLEBLOWERS PROTECTION ACT Telephone: (03) 9653 9721 Act 1982 gives individuals the right to 2001 [email protected] request information held by Tourism The Whistleblowers Protection Act 2001 You can also make your complaint or Victoria. During the year, DBI received encourages and assists people in making provide information directly to three Freedom of Information requests disclosures of improper conduct by the Ombudsman. specifically pertaining to Tourism Victoria, public officers and public bodies. The Act and 23 additional departmental requests provides protection to people who make The Ombudsman, George Brouwer which captured data from Tourism Victoria. disclosures in accordance with the Act Level 22, 459 Collins Street and establishes a system for the matters Melbourne VIC 3000 (DX 210174) Access to documents may be obtained disclosed to be investigated and rectifying Telephone: (03) 9613 6202 through written request to the Freedom action to be taken. Toll Free: 1800 806 314 of Information Unit, as detailed in section Email: [email protected] 17 of the Freedom of Information Act. In Tourism Victoria does not tolerate Website: ombudsman.vic.gov.au summary, the requirements for making a improper conduct by employees, nor the request are: taking of reprisals against those who come Disclosures can be made in writing or forward to disclose such conduct. We are made verbally. You may also provide • It should be in writing committed to ensuring transparency and information anonymously. • It should identify as clearly as possible accountability in our administrative and A copy of Tourism Victoria’s what document is being requested management practices and support the Whistleblower Protection Procedures making of disclosures that reveal corrupt • It should be accompanied by can be obtained by contacting Tourism conduct, conduct involving a substantial the appropriate application fee Victoria on (03) 9653 9777 or from our mismanagement of public resources, (the fee may be waived in certain website at tourism.vic.gov.au or conduct involving a substantial circumstances). risk to public health and safety or the environment. Tourism Victoria will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure. We will also afford natural justice to the person who is the subject of the disclosure.
23 TOURISM VICTORIA CONTACTS
Melbourne (Head Office) Sydney New Zealand Tourism Victoria Tourism Victoria Tourism Victoria Level 32, 121 Exhibition St Suite 7 Level 18 Level 3, 125 The Strand Melbourne VIC 3000 Darling Park Tower 2 Parnell 201 Sussex Street Auckland, New Zealand GPO Box 2219T Sydney NSW 2000 PO Box 1666 Melbourne VIC 3001 Auckland, New Zealand Tel +61 2 9287 6500 Tel +61 3 9653 9777 Fax +61 2 9287 6507 Tel 0011 649 379 0425 Fax +61 3 9653 9722 Fax 0015 649 379 4361 People’s Republic of China visitvictoria.com [email protected] Victoria Trade and Investment Office visitmelbourne.com Suite 308, Shanghai Centre North America visionsofvictoria.com 1376 Nanjing West Road Tourism Victoria tourism.vic.gov.au Shanghai 200040 China Suite 1150, 6100 Center Drive [email protected] Los Angeles CA 90045 USA Tel 0011 86 21 6279 8681 Fax 0015 86 21 6279 8685 Tel 0011 1 310 695 3245 [email protected] Fax 0015 1 310 695 3248 [email protected] Tourism Victoria Suite 6706, Central Plaza Europe 18 Harbour Road Tourism Victoria Wanchai, Hong Kong Neue Mainzer Str 22 60311 Frankfurt, Germany Tel 0011 852 2531 3870 Fax 0011 852 2845 2213 Tel 0011 49 2740 0677 Fax 0015 49 2740 0640 Japan [email protected] Tourism Victoria 4-25-7 Asumigaoka, Midori-ku United Kingdom/Ireland/Nordic Chiba-shi, Chiba-ken , Japan 267-0066 Countries Tourism Victoria Tel +81 0901 796 8174 Sixth Floor, Australia Centre, Fax +81 43 205 2285 Melbourne Place [email protected] Strand, London WC2B 4LG, United Singapore Kingdom Tourism Victoria Tel 0011 44 207 438 4645 101 Thomson Road Fax 0015 44 207 240 6690 #08-01 United Square [email protected] Singapore 307591 Tel 0011 65 6255 6888 Fax 0011 65 6255 2922 [email protected]
64 TOURISM VICTORIA ANNUAL REPORT 2010–11 Cover is printed on Tudor RP Tudor RP is FSC Recycled Published by Tourism Victoria, Authorised by the Designed by haildesign.com.au Recycled 300gsm containing a Certified and Australian made. Melbourne, Victoria Victorian Government Printed by Bambra Press minimum of 70% FSC Certified Tudor RP is Certified Carbon September 2011 Tourism Victoria Post Consumer recycled pulp. Neutral and Greenhouse Friendly This report is also available Level 32, 121 Exhibition Street by the Australian Government online at tourism.vic.gov.au Melbourne VIC 3000 Text pages are printed on Tudor Department of Climate Change. Copyright State of Victoria 2011. Contact: RP Recyled 140gsm containing No chlorine bleaching occurs in This publication is copyright. Corporate Communications 100% FSC Certified Post Consumer the recycling process. No part may be reproduced by Tel (03) 9653 9777 recycled pulp. any process, except in accordance with the provisions of the Copyright Act 1968. All Seasons Houseboats Mildura, The Murray
Meringa Springs Lodge, Grampians Wilsons Promontory, Gippsland
The January and February 2011 flood and storm events had a devastating direct and indirect effect on regional Victorian tourism businesses. To help the industry recover, the Victorian Government – through Tourism Victoria – implemented a Tourism Flood Recovery Program to encourage visitors back to impacted towns and communities through strategic marketing initiatives and event promotion. Tourism Victoria remains committed to driving a successful recovery for flood affected areas and working with our government and tourism partners to show that Victoria is open for business. Annual Report 2010–11 FIVE YEAR COMPARISON
2006–07 2007–08 2008–09 2009–10 2010–11 $’000 $’000 $’000 $’000 $’000
Total assets 16,265 20,406 31,535 28,436 30,473
Total liabilities 5,919 7,163 15,120 13,196 11,149
Net worth/Accumulated surplus 10,346 13,243 16,415 15,239 19,324
Surplus/(Deficit) (395) 2,897 3,172 (1,176) 4,084
Property, plant and equipment (WDV) 623 499 246 193 143
State Government contributions 42,786 59,869 66,066 73,829 132,342
Total expenditure 46,309 60,548 68,458 81,822 133,738
Significant changes in financial The net worth of Tourism Victoria at Operational and budgetary objectives position 2010–11 30 June 2011 is $19.3 million. This will of the entity for the financial year and State Government contributions fund contractual commitments totalling performance against those objectives increased from $73.8 million in 2009–10 $21.6 million at year end which are due including significant activities and by $58.5 million (79.2 per cent) in 2010–11 and payable in the 2011–12 financial year. achievements during the year. to $132.3 million. This mainly reflects the The majority of these commitments relate These are outlined in narrative and decision to transfer the management of to the following: graphical form elsewhere in this report. the Australian Grand Prix Corporation • Tourism Victoria undertakes the role Summary of major changes or factors (AGPC) contract from the Department of of contract manager for various major which have affected the achievement of Planning and Community Development. events. This results in funds being held the operational objectives for the year. Tourism Victoria receives funding which until contractual payments are due. There were no major factors affecting the is paid directly to the AGPC as grant achievement of the operational objectives expenditure. The AGPC manages the • The research, development, for the year. FORMULA 1 Qantas Australian Grand production and delivery of a new Prix and the IVECO Australian Motorcycle marketing campaign specifically to Grand Prix. market Melbourne in China. Tourism Victoria had an accumulated • The interstate delivery of the new surplus in 2010–11 of $4.1 million which Jigsaw Phase 10 Melbourne marketing increased net worth to $19.3 million. campaign. The major factors for the surplus are: • Additional funding received from other state government organisations for dedicated projects which will occur in the 2011–12 financial year. • A decision to delay the scheduled launch of the Phase 10 Melbourne marketing advertising campaign.
Tourism Victoria is a Statutory Authority of the State of Victoria. Tourism Victoria was established under the Tourism Victoria Act 1992. Its principal address is: Tourism Victoria, 121 Exhibition Street Melbourne VIC 3000. A description of the nature of Tourism Victoria’s operations and its principal activities is included in the annual report. For queries in relation to our reporting please call (03) 9653 9777.
24 TOURISM VICTORIA ANNUAL REPORT 2010–11 COMPREHENSIVE OPERATING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011
2011 2010 Notes $ $
Income from transactions Grant income 2(a) 132,342,105 73,828,600 Other income 2(b) 5,614,113 6,963,409 Total income from transactions 137,956,218 80,792,009
Expenses from transactions Grants and other payments 3(a) (82,598,421) (30,403,782) Employee expenses 3(b) (10,752,169) (10,303,378) Depreciation 3(c) (63,351) (71,998) Capital asset charge (47,004) (47,000) Supplies and services 3(d) (35,376,911) (36,223,211) Administration charges 3(e) (4,879,906) (4,728,883) Finance costs (19,816) (44,591) Total expenses from transactions (133,737,579) (81,822,843)
Net result from transactions (net operating balance) 4,218,639 (1,030,834)
Other economic flows included in net result Net gain/(loss) on non-financial assets 16 (3,806) – Net gain/(loss) on financial instruments 16 (130,610) (144,876) Total other economic flows included in net result (134,416) (144,876)
Comprehensive result – total change in net worth 4,084,223 (1,175,710)
The above comprehensive operating statement should be read in conjunction with the accompanying notes.
25 BALANCE SHEET AS AT 30 JUNE 2011
2011 2010 Notes $ $
Assets Financial assets Cash and deposits 15 27,527,636 13,790,872 Receivables 4 1,454,147 10,693,575 Forward Foreign Currency Exchange Contract 14(d) 1,313,299 3,725,724 Investments 5 1 1 Total financial assets 30,295,084 28,210,172
Non-financial assets Non-financial physical asset classified as held for sale, including disposal group assets – 22,704 Prepayments 34,448 10,377 Property, plant and equipment 6 143,218 192,911 Total non-financial assets 177,665 225,992
Total assets 30,472,749 28,436,163
Liabilities Borrowings 8 115,292 189,717 Payables 7 7,073,517 6,773,958 Forward Foreign Currency Exchange Contract 14(d) 1,313,299 3,725,724 Provisions 9 2,646,726 2,507,073 Total liabilities 11,148,835 13,196,473
Net assets 19,323,914 15,239,690
Equity Accumulated surplus/(deficit) 19,323,914 15,239,690 Net worth 19,323,914 15,239,690
Commitments for expenditure 12 Contingent liabilities and contingent assets 13
The above balance sheet should be read in conjunction with the accompanying notes.
26 TOURISM VICTORIA ANNUAL REPORT 2010–11 STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011
Accumulated Total surplus/(deficit) $ $
Balance at 1 July 2009 16,415,400 16,415,400 Net result from transactions (1,030,834) (1,030,834) Other economic flows included in net result (144,876) (144,876) Balance at 30 June 2010 15,239,690 15,239,690 Net result from transactions 4,218,639 4,218,639 Other economic flows included in net result (134,416) (134,416) Balance at 30 June 2011 19,323,913 19,323,913 The above statement of changes in equity should be read in conjunction with the accompanying notes.
CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011
2011 2010 Notes $ $
Cash flows from operating activities Receipts from government 141,484,383 65,908,732 Receipts from other entities 5,081,673 6,059,338 Net goods and services tax recovered from the ATO (i) 10,672,889 5,435,446 Interest received 1,098,613 896,115 Total receipts 158,337,557 78,299,630 Payments Payments to suppliers and employees (144,311,475) (86,059,771) Capital assets charge (47,004) (47,000) Interest and other cost of finance paid (19,816) (44,591) Total payments (144,378,295) (86,151,361) Net cash flows from/(used in) operating activities 15(b) 13,959,262 (7,851,731)
Cash flows from investing activities Purchases of non-financial assets (56,123) (41,895) Proceeds from disposal of property, plant & equipment – – Sales of non-financial assets 38,660 – Net cash flows from/(used in) investing activities (17,463) (41,895)
Cash flows from financing activities Repayment and disposal of finance leases (108,454) (2,652) Proceeds from borrowings 34,029 41,961 Net cash flows from/(used in) financing activities (74,425) 39,309
Net increase/(decrease) in cash and cash equivalents 13,867,374 (7,854,317)
Cash and cash equivalents at beginning of financial year 13,790,871 21,790,256 Effect of exchange rate fluctuations on cash held in foreign currency (130,610) (145,067) Cash and cash equivalents at the end of the financial year 15(a) 27,527,635 13,790,871
The above cash flow statement should be read in conjunction with the accompanying notes.
(i) Should note that GST paid to ATO is presented on a net basis
27 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2011
Notes Note 1. Summary of significant accounting policies 1 Summary of significant accounting policies 28 The annual financial statements represent assets and liabilities that are not readily 2 Income from transactions 36 the audited general purpose financial apparent from other sources. The estimates 3 Expenses from transactions 37 statements for Tourism Victoria. The and associated assumptions are based purpose of the report is to provide users on professional judgements derived from 4 Receivables 38 with information about Tourism Victoria’s historical experience and various other 5 Investments 38 stewardship of resources entrusted to factors that are believed to be reasonable 6 Property, plant and equipment 39 it. To gain a better understanding of the under the circumstances. Actual results may 7 Payables 41 terminology used in this report, a glossary differ from these estimates. 8 Borrowings 41 of terms and style conventions can be The estimates and associated assumptions 9 Provisions 42 found in Note 21. are reviewed on an ongoing basis. 10 Superannuation 43 (a) Statement of compliance Revisions to accounting estimates are 11 Leases 44 These general purpose financial statements recognised in the period in which the 12 Commitments for expenditure 45 have been prepared in accordance with the estimate is revised if the revision affects 13 Contingent liabilities Financial Management Act 1994 (FMA) and only that period or in the period of the and contingent assets 45 applicable Australian Accounting Standards revision, and future periods if the revision 14 Financial instruments 46 (AAS) which include interpretations, issued affects both current and future periods. 15 Cash flow information 53 by the Australian Accounting Standards Judgements made by management in the 16 Other economic flows Board (AASB). In particular, they are application of AAS that have significant included in net result 54 presented in a manner consistent with the effects on the financial statements 17 Responsible persons 55 requirements of the AASB 1049 Whole of and estimates, with a risk of material 18 Remuneration of executives 57 Government and General Government adjustments in the subsequent reporting 19 Remuneration of auditors 57 Sector Financial Reporting. period, are disclosed throughout the notes 20 Subsequent events 57 to the financial statements. Where appropriate, those AAS paragraphs 21 Glossary 58 applicable to not-for-profit entities have This report has been prepared in accordance been applied. with the historical cost convention. Historical cost is based on the fair values of the The annual financial statements consideration given in exchange for assets. also comply with relevant Financial Reporting Directions (FRDs) issued by Exceptions to the historical cost the Department of Treasury and Finance, convention include: and relevant Standing Directions (SDs) • non-financial physical assets which, authorised by the Minister for Finance. subsequent to acquisition, are Accounting policies are selected and measured at a revalued amount applied in a manner which ensures that being their fair value at the date of the resulting financial information satisfies the revaluation less any subsequent the concepts of relevance and reliability, accumulated depreciation and thereby ensuring that the substance of subsequent impairment losses. the underlying transactions or other Revaluations are made with sufficient events is reported. regularity to ensure that the carrying amounts do not materially differ from (b) Basis of accounting preparation their fair value; and measurement The accrual basis of accounting has • the fair value of an asset is generally been applied in the preparation of these based on its depreciated replacement financial statements whereby assets, value; and liabilities, equity, income and expenses • derivative financial instruments are are recognised in the reporting period measured at fair value through profit to which they relate, regardless of when and loss. cash is received or paid. These financial statements are presented in Australian The accounting policies set out below dollars, the functional and presentation have been applied in preparing the currency of Tourism Victoria. financial statements for the year ended 30 June 2011 and the comparative In the application of AAS, judgements, information presented for the year ended estimates and assumptions are required 30 June 2010. to be made about the carrying values of
28 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 1. Summary of significant accounting policies (continued)
(c) Reporting entity ’Other economic flows’ are changes arising (f) Income from transactions The financial statements cover Tourism from market re-measurements. They Income is recognised to the extent that Victoria as an individual reporting entity. include gains and losses from disposals it is probable that the economic benefits It is a statutory authority of the State of non-financial physical assets; and fair will flow to the entity and the income can of Victoria, established pursuant to an value changes of financial instruments. be reliably measured. Amounts disclosed order made by the Premier under the The net result is equivalent to profit or loss as revenue are, where applicable, net of Administrative Arrangements Act 1983. derived in accordance with AAS. returns, allowances and duties and taxes. Its principal address is: Balance sheet Revenue is recognised for each of Tourism Tourism Victoria Assets and liabilities are presented in Victoria’s major activities as follows: Level 32, 121 Exhibition Street liquidity order with assets aggregated Grant income Melbourne VIC 3000 into financial assets and non-financial Grants are recognised as income when assets. Current and non-current assets and The financial statements include all the Tourism Victoria gains control over liabilities (those expected to be recovered controlled activities of Tourism Victoria. the underlying assets. Where grants or settled beyond 12 months) are are reciprocal, income is recognised as (d) Objectives and funding disclosed in the notes, where relevant. performance occurs under the grant. Tourism Victoria’s resources are primarily Cash flow statement Non-reciprocal grants are recognised directed to marketing the state, nationally Cash flows are classified according to as income when the grant is received or and internationally, as well as contributing whether or not they arise from operating receivable. Conditional grants may be to the development of a sustainable activities, investing activities, or financing reciprocal or non-reciprocal depending tourism industry. activities. This classification is consistent on the terms of the grant. (e) Scope and presentation of financial with requirements under AASB 107 Other income statements Statement of cash flows. cooperative ventures income Comprehensive operating statement Statement of changes in equity The amount recognised for Income and expenses in the comprehensive The statement of changes in equity cooperative ventures refers to funds operating statement are classified according presents reconciliations of each non- directly received and banked by to whether or not they arise from ‘transactions’ owner and owner equity opening balance Tourism Victoria for activities such as or ‘other economic flows’. This classification at the beginning of the reporting period brochure participation and cooperative is consistent with the whole of government to the closing balance at the end of the marketing. Funds from cooperative reporting format and is allowed under AASB reporting period. It also shows separately venture participants which are 101 Presentation of financial statements. changes due to amounts recognised in reciprocal are recognised as revenue ’Transactions’ and ‘other economic flows’ the comprehensive result and amounts in the year when cooperative venture are defined by theAustralian system of recognised in other comprehensive activities take place. Funds received government finance statistics: concepts, income related to other non-owner prior to activities having taken place sources and methods 2005 Cat. No. 5514.0 changes in equity. are recognised as Funds Received in published by the Australian Bureau Advance where reciprocal or as revenue Rounding of amounts of Statistics. if not reciprocal. Amounts in the financial statements ’Transactions’ are those economic flows (including the notes) have been rounded Interest income that are considered to arise as a result to the nearest dollars, unless otherwise Interest income includes interest of policy decisions, usually interactions stated. Figures in the financial statements received on bank term deposits, between two entities by mutual agreement. may not equate due to rounding. interest from investments, and other Transactions also include flows within an interest received. Interest income is entity, such as depreciation where the recognised on a time proportionate owner is simultaneously acting as the basis that takes into account the owner of the depreciating asset and as effective yield on the financial asset. the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the Government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash.
29 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 1. Summary of significant accounting policies (continued)
(g) Expenses from transactions Depreciation (h) Other economic flows included Expenses are recognised as they are Depreciation is provided on property, plant in the net result incurred and reported in the financial and equipment. Depreciation is generally Other economic flows measure the change year to which they relate. calculated on a straight line basis so as to in volume or value of assets or liabilities write off the net cost or other revalued that do not result from transactions. Grants and other payments amount of each asset over its expected Grants and other payments to third Net gain/(loss) on non-financial assets useful life to its estimated residual value. parties are recognised as an expense in Net gain/(loss) on non-financial assets and Leasehold improvements are depreciated the reporting period in which they are liabilities includes realised and unrealised over the term of the lease agreement as paid or payable. They include transactions gains and losses as follows: the leased building does not revert to such as grants, subsidies and other transfer the state at the end of the lease term. Revaluation gains/(losses) of payments to third parties. The depreciated cost is a reasonable non-financial physical assets Employee expenses approximation of fair value where the assets Refer to accounting policy on Property, These expenses include all costs related to are depreciated (to reflect its consumption) plant and equipment, provided in employment (other than superannuation over the term of the lease agreement. Note 1( j) Non-financial assets. which is accounted for separately) The expected useful lives are as follows: Disposal of non-financial assets including salaries, fringe benefits tax, leave Any gain or loss on the sale of non- entitlements, redundancy payments and Leasehold improvements: 8 years financial assets is recognised at the WorkCover premiums. Plant and equipment: 3-5 years date that control of the asset is passed Leased plant and equipment: 1-3 years Superannuation to the buyer and is determined after Defined benefit plans These rates are reviewed on an annual basis. deducting from the proceeds the The amount charged to the carrying value of the asset at that time. Capital asset charge comprehensive operating statement The capital asset charge is calculated Gain/(loss) arising from in respect of defined benefit plan on the budgeted carrying amount of transactions in foreign exchange superannuation represents the applicable non-financial physical assets. Refer to Note 1(q) Foreign currency. contributions made by Tourism Victoria to the superannuation plan in respect Supplies and services Net gain/(loss) on financial instruments to the current services of current Supplies and services generally represent Net gain/(loss) on financial instruments Tourism Victoria staff. Superannuation the marketing program costs of Tourism includes: contributions are made to the plan Victoria. • realised and unrealised gains and losses based on the relevant rules of the plan. Administration charges from revaluations of financial instruments Tourism Victoria does not recognise any These expenses generally represent the that are designated at fair value; defined benefit liability in respect of the day-to-day running costs required to • disposals of financial assets. superannuation plan because Tourism deliver program activities in the normal Victoria has no legal or constructive operations of Tourism Victoria. These Revaluations of financial obligation to pay future benefits relating items are recognised as an expense in the instruments at fair value to its employees; its only obligation is reporting period in which they are incurred. The revaluation gain/(loss) on financial to pay superannuation contributions as instruments at fair value excludes Finance costs they fall due. dividends or interest earned on Finance costs are recognised as expenses financial assets, which is reported as The Department of Treasury and in the period in which they are incurred part of income from transactions. Finance centrally discloses the defined and include: benefit liability or surplus of most • interest on bank overdrafts and short- Victorian government employees in term and long-term borrowings; and such funds. • finance lease charges.
30 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 1. Summary of significant accounting policies (continued)
Impairment of assets Receivables Investments Tourism Victoria has no intangible assets. Receivables consist of: Investments are classified in the following All other assets are assessed annually categories: • statutory receivables, which include for indications of impairment, except predominantly amounts owing from • financial assets at fair value through for financial assets that are assessed in the Victorian Government and GST profit or loss; accordance with Note 1(i). input tax credits recoverable; and • loans and receivables; and If there is an indication of impairment, • contractual receivables, which include the assets concerned are tested as to • interests in listed and unlisted securities mainly debtors in relation to goods whether their carrying value exceeds their other than controlled entities are and services, accrued investment recoverable amount. Where an asset’s brought to account at the lower of cost income, and finance leases receivables. carrying value exceeds its recoverable and recoverable amount. amount, the difference is written off by a Receivables that are contractual are The classification depends on the purpose charge to the operating statement except classified as financial instruments. for which the investments were acquired. to the extent that the write down can be Statutory receivables are not classified Management determines the classification debited to an asset revaluation reserve as financial instruments. of its investments at initial recognition. amount applicable to that class of asset. Receivables are recognised initially at Any dividend or interest earned on It is deemed that, in the event of the loss fair value and subsequently measured at the financial asset is recognised in the of an asset, the future economic benefits amortised cost, using the effective interest comprehensive operating statement as arising from the use of the asset will be method, less an allowance for impairment. a transaction. replaced unless a specific decision to the A provision for doubtful receivables is contrary has been made. The recoverable Tourism Victoria assesses at each balance made when there is objective evidence amount for most assets is measured at sheet date whether a financial asset or that the debts may not be collected and the higher of depreciated replacement group of financial assets is impaired. bad debts are written off when identified. cost and fair value less costs to sell. ( j) Non-financial physical assets Recoverable amount for assets held Forward Foreign Currency Exchange Non-financial physical assets classified primarily to generate net cash inflows is Contract as held-for-sale, including disposal measured at the higher of the present All derivatives (other than those designated group assets. value of future cash flows expected to be as an accounting hedge) are recognised Non-financial physical assets (including obtained from the asset and fair value less as a financial asset or financial liability disposal group assets) are treated as costs to sell. at fair value through profit and loss. In current and classified as held for sale if June, Tourism Victoria purchased forward (i) Financial assets their carrying amount will be recovered exchange contracts to fix the costs of Cash and deposits through a sale transaction rather than the budgeted foreign currency activities Cash and deposits, including cash through continuing use. for 2011–12. Consistent with Treasury equivalents, comprise cash on hand and recommendation FRD114A, Tourism This condition is regarded as met only when: cash at bank, deposits at call and those Victoria has not adopted hedge accounting. highly liquid investments with an original • the asset is available for immediate use maturity of three months or less, which in the current condition; and are held for the purpose of meeting short • the sale is highly probable and term cash commitments rather than for the asset’s sale is expected to be investment purposes, and which are completed within 12 months from readily convertible to known amounts of the date of classification. cash and are subject to an insignificant risk of changes in value. For cash flow These non-financial physical assets, related statement presentation purposes, cash and liabilities and financial assets are measured cash equivalents includes bank overdrafts, at the lower of carrying amount and fair which are included as borrowings on the value less costs to sell, and are not subject balance sheet. to depreciation or amortisation.
31 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 1. Summary of significant accounting policies (continued)
Prepayments Net revaluation decreases are recognised Tourism Victoria do not need to present Prepayments represent payments in immediately as other economic flows statutory ‘taxes payables’ in the note, as advance of receipt of goods or services in the net result, except that the net the amount of fringe benefits tax payable or that part of expenditure made in revaluation decrease is recognised in ‘Other is not material. one accounting period covering a term economic flows – ther movements in Contractual payables are classified as extending beyond that period. equity’ to the extent that a credit balance financial instruments and categorised exists in the asset revaluation surplus in Property, plant and equipment as financial liabilities at amortised cost. respect of the same class of property, Plant, equipment and building leasehold Statutory payables are recognised and plant and equipment. The net revaluation improvements are measured initially at cost measured similarly to contractual payables, decrease recognised in ‘Other economic and subsequently revalued at fair value less but are not classified as financial instruments flows – other movements in equity’ reduces accumulated depreciation and impairment. and not included in the category of financial the amount accumulated in equity under liabilities at amortised cost, because they do Leasehold improvements the asset revaluation surplus. not arise from a contract. The cost of leasehold improvements to Revaluation increases and decreases or on leasehold properties is capitalised Provisions relating to individual assets within a class as an asset and depreciated over the Provisions are recognised when Tourism of property, plant and equipment, are remaining term of the lease. Leasehold Victoria has a present obligation, the offset against one another within that improvements held at the reporting future sacrifice of economic benefits is class but are not offset in respect of assets date are being depreciated over eight probable, and the amount of the provision in different classes. Any asset revaluation years (2010 – 8 years). can be measured reliably. surplus is not normally transferred to Revaluations of non-financial physical accumulated funds on derecognition of The amount recognised as a liability is the assets the relevant asset. best estimate of the consideration required Non-financial physical assets are measured to settle the present obligation at reporting (k) Liabilities at fair value in accordance with the period, taking into account the risks and Borrowings Financial Reporting Directions (FRDs) uncertainties surrounding the obligation. Borrowings are initially measured at fair issued by the Minister for Finance. A full Where a provision is measured using the value, being the cost of the borrowings, revaluation normally occurs every five cash flows estimated to settle the present net of transaction costs (refer to Note 1(l)). years, based upon the asset’s government obligation, its carrying amount is the purpose classification, but may occur more Subsequent to initial recognition, present value of those cash flows, using frequently if fair value assessments indicate borrowings are measured at amortised discount rate that reflects the time value of material changes in values. Independent cost with any difference between the initial money and risks specific to the provision. valuers are generally used to conduct recognised amount and the redemption When some or all of the economic these scheduled revaluations. Any interim value being recognised in net result over benefits required to settle a provision are revaluations are determined in accordance the period of the borrowing using the expected to be received from a third party, with the requirements of the FRDs. effective interest method. the receivable is recognised as an asset if Revaluation increases or decreases arise Payables it is virtually certain that recovery will be from differences between an asset’s Payables consist of: received and the amount of the receivable carrying value and fair value. can be measured reliably. • contractual payables, such as accounts Net revaluation increases (where the payable, and unearned income. carrying amount of a class of assets is Accounts payable represent liabilities increased as a result of a revaluation) for goods and services provided to are recognised in ‘Other economic Tourism Victoria prior to the end of flows – other movements in equity’ and the financial year that are unpaid, and accumulated in equity under the asset arise when Tourism Victoria becomes revaluation surplus. However, the net obliged to make future payments in revaluation increase is recognised in the respect of the purchase of those goods net result to the extent that it reverses and services; and a net revaluation decrease in respect of • statutory payables, such as fringe the same class of property, plant and benefits tax payables. equipment previously recognised as an expense (other economic flows) in the net result.
32 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 1. Summary of significant accounting policies (continued)
Employee Benefits Conditional LSL is disclosed as a non- (l) Leases Provision is made for benefits accruing current liability. There is an unconditional A lease is a right to use an asset for an to employees in respect of wages and right to defer the settlement of the agreed period of time in exchange for salaries, annual leave and long service entitlement until the employee has payment. Leases are classified at their leave for services rendered to the completed the requisite years of service. inception as either operating or finance reporting date. These are recognised leases based on the economic substance This non-current LSL liability is when incurred, except for contributions of the agreement so as to reflect the risks measured at present value. Any gain in respect of defined benefit plans. and rewards incidental to ownership. or loss following revaluation of the Leases of property, plant and equipment (i) Wages and salaries, annual leave and present value of non-current LSL are classified as finance infrastructure sick leave liability is recognised as a transaction, leases whenever the terms of the lease Liabilities for wages and salaries, except to the extent that a gain or loss transfer substantially all the risks and annual leave and accumulating sick arises due to changes in bond interest rewards of ownership from the lessor to leave are recognised in the provision rates for which it is then recognised as the lessee. All other leases are classified for employee benefits, classified as an other economic flow (refer to Note as operating leases. current liabilities. Those liabilities 1(h). Other economic flows included in which are expected to be settled within net result). Tourism Victoria as lessee 12 months of the reporting period, are Assets held under finance leases (iii) Termination benefits measured at their nominal values. are recognised as assets of Tourism Termination benefits are payable Victoria at their fair value or, if lower, Those liabilities that are not expected when employment is terminated at the present value of the minimum to be settled within 12 months are before the normal retirement date, or lease payments, each determined recognised in the provision for employee when an employee accepts voluntary at the inception of the lease. The benefits as current liabilities, measured at redundancy in exchange for these corresponding liability to the lessor present value of the amounts expected benefits. Tourism Victoria recognises is included in the balance sheet as a to be paid when the liabilities are settled termination benefits when it is finance lease obligation. using the remuneration rate expected to demonstrably committed to either apply at the time of settlement. terminating the employment of current Lease payments are apportioned employees according to a detailed between finance charges and (ii) Long service leave formal plan without possibility of reduction of the lease obligation so as Liability for long service leave (LSL) withdrawal or providing termination to achieve a constant rate of interest is recognised in the provision for benefits as a result of an offer made on the remaining balance of the employee benefits. to encourage voluntary redundancy. liability. Finance charges are charged Unconditional LSL is disclosed in the notes Benefits falling due more than directly against income. to the financial statements as a current 12 months after balance sheet date Finance Leases liability even where Tourism Victoria are discounted to present value. Finance lease assets are amortised on does not expect to settle the liability Employee benefits on-costs a straight line basis over the estimated within 12 months because it will not Employee benefits on-costs useful life of the asset. have the unconditional right to defer the (payroll tax, workers compensation, settlement of the entitlement should an Operating Leases superannuation, annual leave and LSL employee take leave within 12 months. Operating lease payments are accrued while on LSL taken in service) recognised as an expense on a straight The components of this current LSL are recognised separately from the line basis over the lease term, except liability are measured at: provision for employee benefits. where another systematic basis is more –– present value – component that representative of the time pattern in Tourism Victoria does not expect to which economic benefits from the settle within 12 months; and leased asset are consumed. –– nominal value component that Tourism Victoria expects to settle within 12 months.
33 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 1. Summary of significant accounting policies (continued)
(m) Commitments Cash flows are presented on a net basis. (q) Foreign currency Commitments include those operating, The GST components of cash flows arising All foreign currency transactions during capital and other outsourcing from investing or financing activities the financial year are brought to account commitments arising from non- which are recoverable from, or payable using the relevant contract rate in effect cancellable contractual or statutory to the taxation authority, are presented at the date of the transaction. Foreign sources and are disclosed at their nominal as operating cash flow. monetary items at reporting date are value, and inclusive of the goods and translated at the exchange rate existing (p) Events after reporting date services tax (GST) payable. at reporting date. Non-monetary assets Assets, liabilities, income or expenses carried at fair value that are denominated (n) Contingent assets and contingent arise from past transactions or other in foreign currencies are translated at liabilities past events. Where the transactions the rates prevailing at the date when the Contingent assets and contingent liabilities result from an agreement between fair value was determined. Exchange are not recognised in the balance sheet, Tourism Victoria and other parties, the differences are recognised in the profit or but are disclosed by way of a note and, transactions are only recognised when loss in the period in which they arise. if quantifiable, are measured at nominal the agreement is irrevocable at or before value, inclusive of GST receivables and balance date. Adjustments are made Foreign currency translation differences payables respectively. to amounts recognised in the financial are recognised in ‘Other economic statements for events which occur after flows’ and accumulated in a separate (o) Goods and Services Tax (GST) the reporting date and before the date the component of equity, in the period in Income, expenses and assets are statements are authorised for issue, where which they arise. recognised net of the amount of those events provide information about associated GST, unless the GST incurred (r) New accounting standards and conditions which existed at the reporting is not recoverable from the taxation interpretations date. Note disclosure is made about authority. In this case it is recognised as Certain new AAS have been published events between the balance date and the part of the cost of acquisition of the asset that are not mandatory for the 30 June date the statements are authorised for or as part of the expense. 2011 reporting period. DTF assesses the issue where the events relate to condition impact of these new standards and advises Receivables and payables are stated which arose after the reporting date and Tourism Victoria of their applicability and inclusive of the amount of GST receivable which may have a material impact on the early adoption where applicable. or payable. The net amount of GST results of subsequent reporting periods. recoverable from, or payable to, the taxation As at 30 June 2011, the following authority is included with other receivables standards and interpretations (applicable or payables in the balance sheet. to departments) had been issued but were not mandatory for the financial year ending 30 June 2011. Tourism Victoria has not early adopted these standards.
Standard / Interpretation Summary Applicable for Impact on annual reporting periods Tourism Victoria beginning or ending on financial statements
AASB 9 Financial instruments This standard simplifies requirements for the Beginning 1 Jan 2013 Detail of impact is still being classification and measurement of financial assets assessed. resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).
AASB 124 Related Party Disclosures (Dec 2009) Government related entities have been granted Beginning 1 Jan 2011 Preliminary assessment suggests the partial exemption with certain disclosure impact is insignificant. However, requirements. the Department is still assessing the detailed impact and whether to early adopt.
AASB 2009-11 Amendments to Australian This Standard gives effect to consequential Beginning 1 Jan 2013 Detail of impact is still being Accounting Standards arising from AASB 9 [AASB changes arising from the issuance of AASB 9. assessed. 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12]
34 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 1. Summary of significant accounting policies (continued)
(r) New accounting standards and interpretations (continued)
Standard / Interpretation Summary Applicable for Impact on annual reporting periods Tourism Victoria beginning or ending on financial statements
AASB 2009-12 Amendments to Australian This standard amends AASB 8 to require an entity Beginning 1 Jan 2011 AASB 8 does not apply to Accounting Standards [AASB 5, 8, 108, 110, 112, 119, to exercise judgement in assessing whether a departments therefore no impact 133, 137, 139, 1023 and 1031 and Interpretations 2, 4, government and entities known to be under the expected. Otherwise, only editorial 16, 1039 and 1052] control of that government are considered a changes arsing from amendments single customer for purposes of certain operating to other standards, no major segment disclosures. This standard also makes impact. Impacts of editorial numerous editorial amendments to other AAS. amendments are not expected to be significant.
AASB 2009-14 Amendments to Australian Amendments to Interpretation 14 arise from the Beginning 1 Jan 2011 Expected to have no significant Interpretation – Prepayments of a Minimum issuance of prepayments of a minimum funding impact. Funding Requirement [AASB Interpretation 14] requirement.
AASB 2010-4 Further Amendments to Australian This Standard makes numerous improvements Beginning 1 Jan 2011 No significant impact on the Accounting Standards arising from the Annual designed to enhance the clarity of standards. financial statements. Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13]
AASB 2010-5 Amendments to Australian Accounting This amendment contains editorial corrections Beginning 1 Jan 2011 No significant impact on the Standards [AASB 1, 3, 4, 5, 101, 107, 112, 118, 119, to a range of Australian Accounting Standards financial statements. 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and and Interpretations, which includes amendments Interpretations 112, 115, 127, 132 & 1042] to reflect changes made to the text of IFRSs by the IASB.
AASB 2010-6 Amendments to Australian Accounting This amendment adds and changes disclosure Beginning 1 July 2011 This may impact on departments Standards – Disclosures on Transfers of Financial requirements about the transfer of financial and public sector entities as it Assets [AASB 1 & AASB 7] assets. This includes the nature and risk of the creates additional disclosure for financial assets. transfers of financial assets. Detail of impact is still being assessed.
AASB 2010-7 Amendments to Australian Accounting These amendments are in relation to the Beginning 1 Jan 2013 This amendment may have an Standards arising from AASB 9 (December 2010) introduction of AASB 9. impact on departments and [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, public sector bodies as AASB 9 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and is a new standard and it changes Interpretations 2, 5, 10, 12, 19 & 127] the requirements of numerous standards. Detail of impact is still being assessed.
AASB 2010-8 Amendments to Australian Accounting This amendment provides a practical approach Beginning 1 Jan 2012 This amendment provides Standards – Deferred Tax: Recovery of Underlying for measuring deferred tax assets and deferred tax additional clarification through Assets [AASB 112] liabilities when measuring investment property practical guidance. by using the fair value model in AASB 140 Investment Property.
AASB 2010-9 Amendments to Australian Accounting This amendment provides guidance for entities Beginning 1 July 2011 Amendment unlikely to impact on Standards – Severe Hyperinflation and Removal of emerging from severe hyperinflation who are public sector entities. Fixed Dates for First-time Adopters [AASB 1] going to resume presenting Australian Accounting Standards financial statements or entities that are going to present Australian Accounting Standards financial statements for the first time. It provides relief for first-time adopters from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards.
AASB 2011-1 Amendments to Australian Accounting This amendment affects multiple Australian Beginning 1 July 2011 This amendment will have no Standards arising from the Trans-Tasman Accounting Standards and AASB Interpretations significant impact on public sector Convergence Project [AASB 1, AASB 5, AASB 101, for the objective of increased alignment with bodies. AASB 107, AASB 108, AASB 121, AASB 128, AASB 132 IFRSs and achieving harmonisation between & AASB 134 and Interpretations 2, 112 & 113] both Australian and New Zealand Standards. It achieves this by removing guidance and definitions from some Australian Accounting Standards, without changing their requirements.
AASB 2011-3 Amendments to Australian Accounting This amends AASB 1049 to clarify the definition Beginning 1 July 2012 This amendment provides Standards – Orderly Adoption of Changes to the of the ABS GFS Manual, and to facilitate the clarification to users on the version ABS GFS Manual and Related Amendments [AASB adoption of changes to the ABS GFS Manual and of the GFS Manual to be used and 1049] related disclosures. what to disclose if the latest GFS Manual is not used. No impact on performance measurements will occur.
35 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 2. Income from transactions
2011 2010 $ $
Income (a) Grant income State government grants Core program 29,098,825 27,722,600 Special projects 103,243,280 46,106,000 Total grant income 132,342,105 73,828,600
(b) Other income Cooperative ventures Marketing strategy 359,232 547,080 Product and destination marketing 3,313,425 3,335,794 International marketing 323,558 1,607,042 Other 512,021 569,422 4,508,236 6,059,338
Interest income Interest on bank deposits 328,141 208,856 Interest from Investments 777,736 695,215 1,105,877 904,071 Total other income 5,614,113 6,963,409
36 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 3. Expenses from transactions
2011 2010 $ $
Expenses from transactions (a) Grants and other payments Events 76,223,311 16,232,750 Regional tourism cooperative marketing 3,147,160 8,791,840 Victoria Trade and Investment Company Pty Ltd 1,378,496 1,596,990 Industry development 477,550 542,125 Other 1,371,904 3,240,077 Total grants and other payments 82,598,421 30,403,782
(b) Employee expenses Salary and wages 8,313,041 7,770,855 Superannuation 825,337 738,538 Annual leave 708,620 749,963 Long service leave 155,609 320,435 Other on-costs (fringe benefits tax, payroll tax and workcover levy) 749,562 723,587 Total employee expenses 10,752,169 10,303,378
(c) Depreciation expense Leasehold improvements 15,441 16,691 Plant and equipment 14,237 16,861 Leased motor vehicles 33,673 38,446 Total depreciation expense 63,351 71,998
(d) Supplies and services Advertising 8,683,480 14,588,802 Printed material 169,190 236,105 Consultants, outsourcing and professional services and agency staff 5,988,623 4,892,049 Distribution 196,009 268,568 Exhibition costs/Venue hire 619,165 1,041,409 Familiarisation expenses 1,364,476 1,185,570 Hospitality and entertainment 722,419 603,074 Marketing, promotional and PR costs 12,713,822 9,273,828 Media 73,731 22,222 Online services 1,970,760 574,557 Overseas contractors 762,208 1,094,186 Photographic/Video 544,066 935,053 Research 1,540,650 1,425,223 Other 28,312 82,565 Total supplies and services 35,376,911 36,223,211
(e) Administration charges Rent, cleaning and power 1,081,787 1,117,220 Telephone, facsimile and postage 345,210 348,513 Audit fees 30,500 28,565 Computer charges 1,282,080 1,176,860 Printing, stationery and offices requisites 215,055 261,678 Motor vehicle running costs 134,788 145,839 Travel charges 910,308 937,500 Training and development 583,307 488,646 Other 296,873 224,062 Total administration charges 4,879,906 4,728,883
37 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 4. Receivables
2011 2010 $ $
Current receivables Contractual Debtors (a) 507,045 9,813,601 Other receivables 107,713 82,957 614,758 9,896,557 Statutory GST Input tax credit recoverable 839,389 797,017 839,389 797,017 Total current receivables 1,454,147 10,693,575
(a) The average credit period on sales of goods and/or services is 30 days. No interest is charged on other receivables. (b) Ageing analysis of contractual receivables, please refer to note 14(b). (c) Nature and extent of risk rising from contractual receivables, please refer to note 14(b).
Note 5. Investments
2011 2010 $ $
Non traded investments Shares in other entities (at cost) 1 1 1 1 Impairment of shares
2011 2010 $ $
Opening balance 1 1 Closing balance 1 1
Note 5(a) In June 2001 Tourism Victoria, along with all the other state tourism authorities, and Tourism Australia contributed share capital to the establishment of Australian Tourism Data Warehouse Pty Ltd (ATDW). ATDW is a company limited by share, incorporated in New South Wales. Paragraph 10 of the Shareholders Agreement states that a shareholder can only dispose of shares to another shareholder. In practical terms this means that the shares cannot be sold as they will not be purchased by an existing shareholder. Tourism Victoria believes that because of the nature of ATDW and its shareholders and the restrictions in the shareholder agreement, Tourism Victoria is unable to find a shareholder to purchase the shares. Therefore, using the definition in AASB 139 of ‘Fair Value’, the shares have little value. Consequently the shares have been impaired to $1.
38 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 6. Property, plant and equipment
2011 2010 $ $
Classification by purpose groups - carrying amounts
Sub classification by nature
Leasehold improvements Gross carrying amount 133,528 133,528 less: accumulated depreciation (121,285) (105,844) Net carrying amount 12,243 27,685
Plant, equipment and motor vehicles Gross carrying amount 308,376 327,385 less: accumulated depreciation (177,402) (162,159) Net carrying amount 130,974 165,227 Net carrying amount of property, plant and equipment 143,218 192,911
(a) Property, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used according to one of six ‘Purpose Groups’ based upon Government Purpose Classifications (GPCs). All assets within a ‘Purpose Group’ are further sub-categorised to the asset’s ‘nature’ (i.e. buildings, plant and equipment etc), with each sub-category being classified as a separate class of asset for financial reporting purposes. All Tourism Victoria assets are within the Public Safety and Environment purpose group.
39 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 6(a). Property, plant and equipment
Leasehold improvements Plant, equipment and Total at fair value motor vehicle at fair value
2011 2010 2011 2010 2011 2010 $ $ $ $ $ $
Opening balance 27,685 44,376 165,226 201,342 192,911 245,718 Additions – – 56,123 41,895 56,123 41,895 Disposals – – (42,466) – (42,466) – Assets held for resale – – – (22,704) – (22,704) Disposals due to 08/09 policy change – – – – – – Transfers free of charge – – – – – – Depreciation expense (15,441) (16,691) (47,910) (55,307) (63,351) (71,998) Closing balance 12,244 27,685 130,973 165,226 143,217 192,911
Note 6(b). Property, plant and equipment
2011 2010 $ $
The following useful lives of assets are used in the calculation of depreciation:
Leasehold improvements 8 years 8 years Plant and equipment 3–5 years 3–5 years Leased plant and equipment 1–3 years 1–3 years
Aggregate depreciation allocated, recognised as expense during the year:
Leasehold improvements 15,441 16,691 Plant and equipment 14,237 16,861 Leased plant and equipment 33,673 38,446 63,351 71,997
Note 6(c). Property, plant and equipment
2011 2010 $ $
Gross sales proceeds 61,364 – Carrying amount of non-financial assets disposed (65,169) – Net gain/(loss) on disposal (3,806) –
40 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 7. Payables
2011 2010 $ $
Current Contractual Trade creditors and accruals (a, b, c) 6,590,169 5,989,931 Other creditors (d) 483,348 784,027 Total current payable 7,073,517 6,773,958
(a) The average credit period on trade creditors during the year is 30 days. (b) All payables were paid out. There are no overdue amounts. (c) Trade creditors and accruals represents accrued expenses only. (d) Other creditors represents accrued employee expenses and prepaid revenue. (e) Please refer to note 14(d) for the maturity analysis of contractual payables.
Note 8. Borrowings
2011 2010 $ $
Current borrowings Secured Finance lease liabilities (i) (note 11) 70,132 99,904 Total current borrowings 70,132 99,904
Non-current borrowings Secured Finance lease liabilities (i) (note 11) 45,160 89,814 Total non-current borrowings 45,160 89,814
Aggregate carrying amount of borrowings Current 70,132 99,904 Non-current 45,160 89,814 Total 115,293 189,718 (i) Secured by the assets leased. Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.
(a) Please refer to note 14(d) for the maturity analysis of borrowings. (b) During the current and prior year there were no breaches or defaults on any of the borrowings.
41 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 9. Provisions
2011 2010 $ $
Employee benefits and related on-costs
Current employee benefits Employee benefits (Note 9 (a)) - annual leave entitlements (i): Unconditional and expected to settle within 12 months (ii) 631,729 549,803 Employee benefits (Note 9 (a)) - long service leave entitlements: Unconditional and expected to settle within 12 months (iii) 76,986 80,726 Unconditional and expected to settle after 12 months (iii) 1,462,742 1,297,503 2,171,457 1,928,031 Provisions related to employee benefit on-costs (Note 9 (a)) Unconditional and expected to settle within 12 months (ii) 120,144 97,009 Unconditional and expected to settle after 12 months (iii) 224,362 208,182 344,506 305,191 Total current provisions 2,515,963 2,233,222
Non-current employee benefits Conditional long service leave (i) 105,363 236,282 Conditional long service leave on-costs (Note 9 (a)) 25,400 37,569 Total non-current provisions 130,763 273,851
Total provisions 2,646,726 2,507,073
(i) The amounts disclosed are nominal amounts. (ii) The amounts disclosed are discounted to present values.
(a) Employee benefits and related on-costs
Current employee benefits Annual leave entitlements 740,064 635,855 Unconditional long service leave entitlements 1,775,899 1,597,367 Non-current employee benefits Conditional long service leave entitlements 130,763 273,851 Total employee benefits 2,646,726 2,507,073
On-costs Current on-costs 344,506 305,191 Non-current on-costs 25,400 37,569 Total on-costs 369,906 342,760
(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts. (iii) The amounts disclosed are discounted to present values.
42 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 10. Superannuation
Employees of Tourism Victoria are entitled to receive superannuation benefits and Tourism Victoria contributes to both defined benefit and defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary. Tourism Victoria does not recognise any defined benefit liability in respect of this plan because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in its disclosure for administered items. However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the Comprehensive Operating Statement of Tourism Victoria. The name and details of the major employee superannuation funds and contributions made by Tourism Victoria are as follows:
Fund Contribution Contribution Contribution Contribution outstanding outstanding for the year for the year at year end at year end 2011 2010 2011 2010 $ $ $ $
Defined benefit plans: State Superannuation Fund – revised and new 189,411 157,520 – – Defined contribution plans: VicSuper 463,276 437,093 – – Private Funds 186,817 145,509 – –
Total 839,504 740,121 – –
The bases for contributions are determined by various schemes.
43 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 11. Leases
Disclosure for lessees – finance leases Leasing arrangements Finance leases relate to motor vehicles with lease terms of one to three years. Tourism Victoria has the options to purchase the vehicles for a nominal amount at the conclusion of the lease agreements. Finance lease liabilities Minimum future Present value of minimum lease payments future lease payments
2011 2010 2011 2010 $ $ $ $
Not longer than 1 year 69,203 104,914 70,132 99,904 Longer than 1 year and not longer than 5 years 47,861 84,079 45,160 76,637 Minimum future lease payments * 117,064 188,993 115,292 176,540 less: Future finance charges (1,771) (12,453) – – Present value of minimum lease payments 115,292 176,540 115,292 176,540
Included in the financial statements as: Current borrowings (note 8) 70,132 99,904 Non-current borrowings (note 8) 45,160 76,637 115,292 176,541
* Minimum lease payments includes the aggregate of all lease payments and any guaranteed residual.
Disclosure for lessees – operating leases Leasing arrangements Operating leases relate to offices which Tourism Victoria leases overseas and interstate, with lease terms of between two and ten years. All operating lease contracts are between Tourism Victoria and Tourism Australia, and contain market review clauses in the event that Tourism Victoria exercises its option to renew. Tourism Victoria does not have an option to purchase the leased asset at the expiry of the lease period.
Non-cancellable operating leases 2011 2010 $ $
Not longer than 1 year 126,177 160,228 Longer than 1 year and not longer than 5 years 257,199 391,970 Longer than 5 years – 3,494 383,376 555,692 a) Please refer to note 14(d) for ageing analysis of finance lease liabilities.
44 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 12. Commitments for expenditure
Grant commitments Commitments for the payment of grants under contracts in existence at the reporting date but not recognised as liabilities and payable are:
2011 2010 $ $
Not longer than 1 year 18,794,749 18,545,106 Longer than 1 year and not longer than 5 years 33,613,663 38,238,048 52,408,412 56,783,154
Other commitments Commitments for the payment of other expenditure under contracts in existence at the reporting date but not recognised as liabilities and payable are:
2011 2010 $ $
Not longer than 1 year 4,979,461 6,676,133 Longer than 1 year and not longer than 5 years 656,121 412,718 5,635,582 7,088,851
Lease commitments Finance lease liabilities and non-cancellable operating lease commitments are disclosed in Note 11 to the financial statements.
Note 13. Contingent liabilities and contingent assets
Contingent assets There were no contingent assets at 30 June 2011 (2010: nil).
Contingent liabilities There were no contingent liabilities at 30 June 2011 (2010: nil).
45 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 14. Financial instruments
(a) Financial risk management objectives Tourism Victoria’s principal financial instruments comprise of: • cash assets; • term deposits; • forward foreign currency exchange contract; • receivables (excluding statutory receivables); • payables (excluding statutory payables); • borrowings; and • finance lease payables. Tourism Victoria’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, and interest rates. The policies for managing these risks are discussed in more detail below. Details of significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1 of the financial statements. The main purpose in holding financial instruments is to prudently manage Tourism Victoria’s financial risks within the Government policy parameters. Tourism Victoria’s main financial risks include credit risk, liquidity risk, interest rate risk, foreign currency risk and market risk. Tourism Victoria manages these financial risks in accordance with its financial risk management policy. Tourism Victoria uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility for the identification and management of financial risks rests with the Financial Risk Management Committee of Tourism Victoria. The carrying amounts of Tourism Victoria’s financial assets and financial liabilities by category are in the following table:
2011 2010 Notes $ $
Financial assets Cash and deposits (i) 27,527,636 13,790,872 Loans and receivables (i) 614,758 9,896,557 Investments (ii) 1 1 Forward Foreign Currency Exchange Contract (ii) 1,313,299 3,725,724 Total financial assets (a) 29,455,694 27,413,154
Financial liabilities Payables (iii) 7,188,810 6,963,676 Forward Foreign Currency Exchange Contract (ii) 1,313,299 3,725,724 Total financial liabilities (b) 8,502,109 10,689,399
Categorisation of financial instruments (i) These are loans and receivables (ii) Contractual financial assets/liabilities designated at fair value through profit and loss (iii) These are contractual financial liabilities at amortised costs
(a) The total amount of financial assets disclosed here excludes statutory receivables (i.e. Amounts owing from Victorian Government and GST input tax credit recoverable). (b) The total amount of financial liabilities disclosed here excludes statutory payable (i.e. Taxes payable).
46 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 14. Financial instruments (continued)
Net holding gain/(loss) on financial instruments by category
2011 2010 $ $
Financial assets Cash and deposits 1,105,877 904,071 Total financial assets 1,105,877 904,071
Financial liabilities Finance lease 9,280 (25,925) Total financial liabilities 9,280 (25,925) The net holding gains or losses disclosed above are determined as follows: • For cash and deposits, loans or receivables, the net gain or loss is calculated by taking the interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result; • For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost; • For financial asset and liabilities that are held-for-trading or designated at fair value through profit or loss, the net gain or losses calculated by taking the movement in the fair value of the financial asset or liability.
(b) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to Tourism Victoria. Tourism Victoria has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. Tourism Victoria measures credit risk on a fair value basis. Tourism Victoria does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with credit- ratings assigned by international credit rating agencies. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents Tourism Victoria’s maximum exposure to credit risk without taking account for the value of any collateral obtained. Provision of impairment for contractual financial assets is recognised when there is objective evidence that Tourism Victoria will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.
47 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 14. Financial instruments (continued)
Ageing analysis of contractual receivables
Carrying amount Not past due and Past due but not impaired not impaired
Less than 1 month 1–3 months 3 months – 1 year
2011 Debtors 507,045 270,407 144,238 92,400 – Other receivables 107,713 107,713 – – – 614,758 378,120 144,238 92,400 –
2010 Debtors 9,813,601 8,909,951 892,970 10,680 – Other receivables 82,957 82,957 – – – 9,896,557 8,992,908 892,970 10,680 –
Credit quality of contractual financial assets that are neither past due or impaired
Other Finance Government Government Regional Institutions Departments Entities Tourism Bodies Other Total
2011 Cash and deposits 11,778,728 – 15,500,000 – 248,909 27,527,636 Receivables 22,515 221,000 4,100 92,132 275,011 614,758 Investments – – – – 1 1 Total contractual financial assets 11,801,243 221,000 15,504,100 92,132 523,921 28,142,395
2010 Cash and deposits 9,138,012 – 4,350,000 – 302,860 13,790,872 Receivables 15,251 8,814,860 134,076 780,714 151,658 9,896,557 Investments – – – – 1 1 Total contractual financial assets 9,153,263 8,814,860 4,484,076 780,714 454,519 23,687,430
There are no material financial assets which are individually determined to be impaired.
48 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 14. Financial instruments (continued)
(c) Liquidity risk Liquidity risk arises when Tourism Victoria is unable to meet its financial obligations as they fall due. Tourism Victoria operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, make payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holdings of high quality liquid assets and dealing in highly liquid markets. Tourism Victoria’s exposure to liquidity risk is deemed insignificant based on prior period’s data and current assessment of risk. Maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the Balance Sheet.
(d) Market risk Tourism Victoria’s exposure to market risk is primarily through interest rate risk and foreign currency risk. Objectives, policies and processes used to manage each of these risks are disclosed below: Foreign currency risk Tourism Victoria’s foreign currency risk is managed using forward exchange contracts, which are over-the-counter contracts that fix the future delivery of foreign currencies at a specified exchange rate. The forward foreign currency contract amount results in foreign currency account balances being sufficient to fund the budgeted foreign currency activities for 2011–2012. Tourism Victoria’s exposure to direct foreign currency risk has no impact on the net result from transactions. Consistent with Treasury recommendation (FRD 114a), Tourism Victoria has not adopted hedge accounting. Interest rate risk Tourism Victoria’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out below. Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. Tourism Victoria does not hold any interest bearing financial instruments that are measured at fair value, therefore has nil exposure to fair value interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Tourism Victoria has minimal exposure to cash flow interest rate risks through its cash and deposits and term deposits that are at floating rates. Tourism Victoria manages this risk by investing in short term fixed rate financial instruments with an investment maturity sufficient to fund weekly expenditure. Cash at bank balances are kept at minimal operational levels. Management reviews its cash flow position on a weekly basis. Management has concluded that cash at bank is a financial asset that can be left at a floating rate without necessarily exposing Tourism Victoria to significant bad risk as it adopts a conservative approach in budgeting for interest revenue. Management monitors movement in interest rates on a weekly basis.
49 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 14. Financial instruments (continued)
The following table details Tourism Victoria’s exposure to interest rate risk as at 30 June 2011.
Maturity dates
Weighted Variable average effective interest Less than More than Non-Interest interest rate rate 1 year 1–5 years 5 years Bearing Total
2011 Note % $ $ $ $ $ $
Financial assets Cash and deposits 15 4.73% 12,027,636 15,500,000 – – – 27,527,636 Trade and other receivables 4 – – – – 614,758 614,758 Forward Foreign Currency 14 – – – – 1,313,299 1,313,299 Exchange Contract Investments 5 – – – – 1 1 12,027,636 15,500,000 – – 1,928,058 29,455,694
Financial liabilities Payables 7 – – – – 7,073,517 7,073,517 Finance lease liabilities 8,11 7.22% – 70,132 45,160 – – 115,292 Forward Foreign Currency – – – – 1,313,299 1,313,299 Exchange Contract – 70,132 45,160 – 8,386,816 8,502,109
Net financial assets (liabilities) 12,027,636 15,429,868 (45,160) – (6,458,758) 20,953,586 The following table details Tourism Victoria’s exposure to interest rate risk as at 30 June 2010.
Maturity dates
Weighted average Variable effective interest interest Less than More than Non-Interest rate rate 1 year 1–5 years 5 years Bearing Total 2010 Note % $ $ $ $ $ $
Financial assets Cash and deposits 15 3.88% 9,440,872 4,350,000 – – – 13,790,872 Trade and other receivables 4 – – – – 9,896,557 9,896,557 Forward Foreign Currency 14 – – – – 3,725,724 3,725,724 Exchange Contract Investments 5 – – – – 1 1 9,440,872 4,350,000 – – 13,622,282 27,413,154
Financial liabilities Payables 7 – – – – 6,773,958 6,773,958 Finance lease liabilities 8,11 7.41% – 99,904 89,814 – – 189,717 Forward Foreign Currency – – – – 3,725,724 3,725,724 Exchange Contract – 99,904 89,814 – 10,499,682 10,689,399
Net financial assets (liabilities) 9,440,872 4,250,096 (89,814) – 3,122,600 16,723,755
50 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 14. Financial instruments (continued)
Sensitivity disclosure analysis Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, Tourism Victoria believes the following movements are ‘reasonably possible’ over the next 12 months (Base rates are sourced from Reserve Bank of Australia): • A parallel shift of +0.5% and -0.5% in market interest rate (AUD) from year end rates of 4.82%. (2010: 4.05%); • Proportional exchange rate movement of -10% (depreciation of AUD) and +10% (appreciation of AUD) against foreign currencies, from the year end rates. At year end there were foreign currency balances (AUD 1,938,884) which would expose Tourism Victoria to exchange rate risk (2010: AUD 2,810,436); and • A parallel shift of +1% and -1% in inflation rate from year end rates of 3.6% (2010: 3.1%) – Tourism Victoria has no financial instruments exposed to inflation risk (2010: no exposure). The following table discloses the impact on net operating result and equity for each category of financial instrument held by Tourism Victoria at year end as presented to key management personnel, if the above movements were to occur.
2011 Foreign exchange risk 2011 Interest rate risk -10% +10% -0.5% +0.5% (50 basis points) (50 basis points)
Carrying Profit Equity Profit Equity Profit Equity Profit Equity amount $ $ $ $ $ $ $ $
Financial assets Cash and deposits (1) 27,527,636 193,888 193,888 (193,888) (193,888) (137,638) (137,638) 137,638 137,638 Forward Foreign Currency 1,313,299 131,330 131,330 (131,330) (131,330) – – – – Exchange Contract (2) Receivables (3) 614,758 – – – – – – – – Investments in other entities (4) 1 – – – – – – – – Financial liabilities Forward Foreign Currency 1,313,299 (131,330) (131,330) 131,330 131,330 – – – – Exchange Contract (2) Payables (3) 7,073,517 – – – – – – – – Finance lease liabilities (5) 115,292 – – – – – – – – Total increase/(decrease) 193,888 193,888 (193,888) (193,888) (137,638) (137,638) 137,638 137,638
2010 Foreign exchange risk 2010 Interest rate risk -10% +10% -0.5% +0.5% (50 basis points) (50 basis points)
Carrying Profit Equity Profit Equity Profit Equity Profit Equity amount $ $ $ $ $ $ $ $
Financial assets Cash and deposits (1) 13,790,872 281,044 281,044 (281,044) (281,044) (68,954) (68,954) 68,954 68,954 Forward Foreign Currency 3,725,724 372,572 372,572 (372,572) (372,572) – – – – Exchange Contract (2) Receivables (3) 9,896,557 – – – – – – – – Investments in other entities (4) 1 – – – – – – – – Financial liabilities Forward Foreign Currency 3,725,724 (372,572) (372,572) 372,572 372,572 – – – – Exchange Contract (2) Payables (3) 6,773,958 – – – – – – – – Finance lease liabilities (5) 189,717 – – – – – – – – Total increase/(decrease) 281,044 281,044 (281,044) (281,044) (68,954) (68,954) 68,954 68,954
51 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 14. Financial instruments (continued)
(1) In 2010–11, $25,588,752 cash and deposits are held in Australian Dollars. $10,088,752 is held on deposit at variable interest rates. $15,500,000 is invested in Australian Dollars in interest bearing accounts. The equivalent of AUD 1,938,884 is held in seven overseas currencies. In 2009–10, $10,980,435 cash and deposits are held in Australian Dollars. $6,630,435 is held on deposit at variable interest rates. $4,350,000 is invested in Australian Dollars in interest bearing accounts. The equivalent of AUD 2,810,436 is held in seven overseas currencies. (2) In 2010–11, the Forward Foreign Currency Contract amount covers the costs of the budgeted foreign currency activities for 2011–12. Contracted on 8 June 2011, maturity is on 18 and 19 July 2011. Sensitivity of the foreign currency is as follows: – sensitivity impact on net result due to appreciation/(depreciation) of AUD by 10 per cent is $131,330. In 2009–10, the forward foreign currency contract amount covers the costs of the budgeted foreign currency activities for 2010–11. Contracted on 11 and 25 June 2010, maturity is on 15 July 2010. Sensitivity of the foreign currency is as follows: – sensitivity impact on net result due to appreciation/(depreciation) of AUD by 10 per cent is $372,572. (3) The carrying amount is denominated in Australian Dollars and is non-interest bearing. This item is not subject to the identified risk sensitivities. (4) Investments are denominated in Australian Dollars and are non-interest bearing. This item is not subject to identified risk sensitivities. (5) Interest bearing liabilities solely relate to finance lease liabilities associated with motor vehicles. Each contract has interest fixed at the inception of the lease. This item is not subject to identified risk sensitivities.
(e) Fair value Management consider that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values. The fair values and net fair values of financial assets and financial liabilities are determined as follows: • the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices; and • the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models on discounted cash flow analysis. The financial statements include holdings in unlisted shares (note 5). Transaction costs are included in the determination of net fair value. The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as the carrying amounts.
Comparison between carrying amount and fair value Carrying amount Fair value Carrying amount Fair value
2011 2011 2010 2010
Contractual financial assets Cash and deposits 27,527,636 27,527,636 13,790,872 13,790,872 Loans and receivables 614,758 614,758 9,896,557 9,896,557 Forward Foreign Currency Exchange Contract 1,313,299 1,313,299 3,725,724 3,725,724 Investments 1 1 1 1 Total contractual financial assets 29,455,694 29,455,694 27,413,154 27,413,154
Contractual financial liabilities Payables 7,188,810 7,188,810 6,963,676 6,963,676 Forward Foreign Currency Exchange Contract 1,313,299 1,313,299 3,725,724 3,725,724 Total contractual financial liabilities 8,502,109 8,502,109 10,689,399 10,689,399
52 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 15. Cash flow information
2011 2010 $ $
(a) Reconciliation of cash and cash equivalents For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows:
Cash at bank and on hand 11,779,028 9,159,606 Short term deposits and investments 15,500,000 4,350,000 Cash advance – (held at overseas offices) 248,609 281,266 Balance as per cash flow statement 27,527,636 13,790,872
(b) Reconciliation of net result for the period
2011 2010 $ $
Net result for the reporting period 4,084,223 (1,175,710) Non-cash movements (Gain)/Loss on disposal of non-current assets 3,806 – Impairment loss of financial asset – – Depreciation and amortisation of non-current assets 63,351 71,998 Allowance for doubtful debts – – Other non cash items – (191) (Gain)/Loss on foreign exchange currency 130,610 145,067
Movements in assets and liabilities Changes in net assets and liabilities (Increase)/Decrease in assets Current receivables 9,239,428 (7,662,576) Other current assets (1,367) 658,424 Increase/(Decrease) in liabilities Current payables 299,559 (305,112) Current provisions 282,741 384,982 Non-current provisions (143,088) 31,387 Net cash flows from (used in) operating activities 13,959,263 (7,851,731)
53 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 16. Other economic flows included in net result
2011 2010 $ $
(a) Net gain/(loss) on non-financial assets Net gain/(loss) on disposal of physical assets (3,806) – Total net gain/(loss) on non-financial assets (3,806) –
(b) Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments (130,610) (145,067) Total net gain/(loss) on financial instruments (130,610) (145,067)
Total other economic flows included in net result (134,416) (145,067)
54 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 17. Responsible persons
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period. Names The persons who held positions in Tourism Victoria are as follows: Minister for Tourism and Major Events The Hon. Tim Holding, MP 1 July 2010 to 2 December 2010 Minister for Tourism and Major Events The Hon. Louise Asher, MP 2 December 2010 to 30 June 2011 Chief Executive Greg Hywood 1 July 2010 to 1 October 2010 Acting Chief Executive Mark Stone 4 October 2010 to 3 June 2011 Acting Chief Executive John Dalton 6 June 2011 to 30 June 2011 Chairman Janine Kirk, AM 1 July 2010 to 30 June 2011 Deputy Chairman Pamela Catty 1 July 2010 to 30 June 2011 Board Member Greg Sword, AM 1 July 2010 to 14 September 2010 Board Member Chris Woodruff 1 July 2010 to 30 June 2011 Board Member Bee Ho Teow 1 July 2010 to 30 June 2011 Board Member Alla Wolf-Tasker, AM 1 July 2010 to 30 June 2011 Board Member John Mitchell 1 July 2010 to 30 June 2011 Board Member Brian Cook 1 July 2010 to 30 June 2011 Board Member Janelle Boynton 1 July 2010 to 30 June 2011 Board Member Penny Hutchinson 1 July 2010 to 30 June 2011 Board Member Christopher Brown 26 October 2010 to 30 June 2011
Remuneration Remuneration received or receivable by the Accountable Officers, Chief Executive Officer, in connection with the management of Tourism Victoria during the reporting period was in the range: $270,000–$279,999 (2010:$309,999–$319,999) Remuneration received or receivable by Tourism Victoria Board Members for the reporting period is provided below:
Total Remuneration 2011 2010 No. No. $1,000 – $19,999 8 9 $20,000 – $29,999 1 – $30,000 – $39,999 – – $40,000 – $49,999 1 1 10 10
$186,472 $167,861
Amounts paid to Ministers are reported in the financial statements of the Department of Premier and Cabinet.
55 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 30 JUNE 2011
Note 17. Responsible persons (continued)
Related parties In addition to the remuneration outlined overleaf, Tourism Victoria entered into payable and receivable transactions with the following organisations in its domestic dealings and within normal customer relationships on terms and conditions no more favourable than those available in similar arm’s length dealings. The Board Members listed below were, during all or part of 2010–11, directors, employees or owners/part owners of the organisations.
2011 2010 $ $ Alla Wolf-Tasker Lake House Restaurant & Boutique Hotel (1) 18,546 31,649 Alla Wolf-Tasker Daylesford & The Macedon Ranges Tourism Inc (2) 328,454 344,358 Bee Ho Teow Australian Tours Management Pty Ltd (3) 500 – John Mitchell Mornington Peninsula Tourism Inc (4) (102,843) 86,619 John Mitchell Montalto Vineyard and Olive Grove (5) 6,160 4,761 Chris Woodruff Melbourne Airport (6) (38,500) – Chris Woodruff Melbourne Convention & Visitors Bureau (7) 4,307,432 – Janelle Boynton Feathertop Wines (8) (3,300) – Janine Kirk Ernst & Young (9) 311,848 84,758 Penelope Hutchinson Arts Victoria (10) (357,500) (60,500) 4,470,796 425,645
(1) Familiarisation programs expenses $9,999. Tourism Victoria runs both trade and media familiarisations programs. Trade familiarisations programs are to promote Victoria to the tourism industry; Media familiarisations programs are to generate media publicity in pursuit of the marketing objectives of Tourism Victoria. $8,547 Tourism Victoria accommodation costs while staying in Daylesford. (2) Marketing expenses $2,025; Grant payments $326,429, Cooperative marketing and miscellaneous revenue $76,850. (3) Supplies and consumables $500. (4) Cooperative marketing and miscellaneous revenue $102,843. (5) Familiarisation expenses $9,598, miscellaneous revenue $3,438. (6) Cooperative marketing revenue $121,000, Grant payment $82,500. (7) Grant payments $4,309,150, miscellaneous receipts $1,718. (8) Miscellaneous receipts $3,300. (9) Professional services $311,848. (10) Cooperative marketing and miscellaneous revenue $357,500.
56 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 18. Remuneration of executives
The number of executive officers, other than Ministers and the Accountable Officer, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits. The number of executives within Tourism Victoria during the year is the same as the previous reporting period, however total remuneration has increased.
Income band Total remuneration Base remuneration 2011 2010 2011 2010 No. No. No. No.
$80,000 – $89,999 – – – – $120,000 – $129,999 – – – – $130,000 – $139,999 – – – – $140,000 – $159,999 – – – – $160,000 – $169,999 – – 1 1 $170,000 – $179,999 1 2 2 3 $180,000 – $189,999 2 2 1 – $190,000 – $199,999 1 – 1 1 $200,000 – $209,999 – 1 – – $220,000 – $229,999 1 – – – $250,000 – $259,999 – – – – $280,000 – $289,999 – – – – $290,000 – $299,999 – – – – $310,000 – $319,999 – – – – Total numbers 5 5 5 5
Total amount $972,664 $931,721 $902,682 $885,302
Note 19. Remuneration of auditors
2011 2010 $ $
Victorian Auditor-General’s Office Audit of the financial statements 30,500 28,565
30,500 28,565
Note 20. Subsequent events
There were no subsequent events as at balance date which are required to be brought to account or disclosed.
57 NOTES GLOSSARY OF TERMS & STYLE CONVENTIONS 30 JUNE 2011
Note 21. Glossary
Administration costs Effective interest method Financial instrument Administration costs represent the The effective interest method is used to A financial instrument is any contract operating costs of Tourism Victoria calculate the amortised cost of a financial that gives rise to a financial asset of one such as rent, telephone charges, audit asset and of allocating interest income entity and a financial liability or equity fees, computer expenses, motor vehicle over the relevant period. The effective instrument of another entity. Financial running costs, travel expenses and training interest rate is the rate that exactly assets or liabilities that are not contractual and development. discounts estimated future cash receipts (such as statutory receivables or through the expected life of the financial payables that arise as a result of statutory Amortisation appropriate, a shorter period to the net requirements imposed by governments) Amortisation is the expense which results carrying amount of the financial asset or are not financial instruments. from the consumption or use over time of a financial liability. non-produced physical asset. This expense is Financial liability classified as an other economic flow. Employee benefits expenses A financial liability is any liability that is: Employee benefits expenses include all Borrowings (a) A contractual obligation: costs related to employment including Borrowings refers to finance leases and wages and salaries, fringe benefits tax, (i) To deliver cash or another financial other interest-bearing arrangements, leave entitlements, redundancy payments, asset to another entity; or including non-interest-bearing advances defined benefits superannuation plans, from government that is acquired for (ii) To exchange financial assets or and defined contribution superannuation policy purposes. financial liabilities with another plans. entity under conditions that are Comprehensive result Finance costs potentially unfavourable to the The net result of all items of income and Includes finance lease interest on Vic Fleet entity; or expense recognised for the period. It is the vehicle lease and finance expense and fees. aggregate of operating result and other (b) A contract that will or may be settled non-owner movements in equity. Financial asset in the entity’s own equity instruments A financial asset is any asset that is: and is: Capital asset charge The capital asset charge represents the (a) cash; (i) A non-derivative for which the opportunity cost of capital invested in the entity is or may be obliged to (b) a contractual or statutory right: non financial physical assets used in the deliver a variable number of the provision of outputs. • to receive cash or another financial entity’s own equity instruments; or asset from another entity; or Commitments (ii) A derivative that will or may be Commitments include those operating, • to exchange financial assets or settled other than by the exchange capital and other outsourcing commitments financial liabilities with another of a fixed amount of cash or arising from non-cancellable contractual or entity under conditions that are another financial asset for a fixed statutory sources, and inclusive of the goods potentially favourable to the entity; number of the entity’s own equity and services tax (GST) payable. or instruments. For this purpose the entity’s own equity instruments do Current grants (c) a contract that will or may be settled not include instruments that are Amounts payable or receivable for current in the entity’s own equity instruments themselves contracts for the future purposes for which no economic benefits and is: receipt or delivery of the entity’s of equal value are receivable or payable • a non derivative for which the entity own equity instruments. in return. is or may be obliged to receive a Financial statements Depreciation variable number of the entity’s own Depending on the context of the sentence Depreciation is an expense that arises equity instruments; or where the term ‘financial statements’ from the consumption through wear or • a derivative that will or may be is used, it may include only the main time of a produced physical asset. This settled other than by the exchange financial statements (i.e. comprehensive expense is classified as a ‘transaction’ and of a fixed amount of cash or operating statement, balance sheet, so reduces the ‘net result from transaction’. another financial asset for a fixed cash flow statements, and statement of number of the entity’s own equity changes in equity); or it may also be used instruments. to replace the old term ‘financial report’ under the revised AASB 101 (September 2007), which means it may include the main financial statements and the notes.
58 TOURISM VICTORIA ANNUAL REPORT 2010–11 Note 21. Glossary (continued)
Forward Foreign Currency Exchange Net acquisition of non financial assets Other economic flows Contract (from transactions) Other economic flows are changes in the Forward Foreign Currency Exchange Purchases (and other acquisitions) of non volume or value of an asset or liability that Contract is an obligation to buy a certain financial assets less sales (or disposals) of do not result from transactions. It includes: amount of foreign currency at a pre- non financial assets less depreciation plus • gains and losses from disposals, determined date. changes in inventories and other movements revaluations and impairments of non in non financial assets. It includes only those Grants and other transfers financial physical and intangible assets; increases or decreases in non financial assets Transactions in which one unit provides resulting from transactions and therefore • actuarial gains and losses arising from goods, services, assets (or extinguishes a excludes write-offs, impairment write-downs defined benefit superannuation plans; liability) to another unit without receiving and revaluations. approximately equal value in return. • fair value changes of financial Grants can either be operating or capital Net result instruments and agricultural assets; and in nature. Net result is a measure of financial • depletion of natural assets (non performance of the operations for the While grants to governments may result in produced) from their use or removal. period. It is the net result of items of the provision of some goods or services income, gains and expenses (including In simple terms, other economic flows to the transferor, they do not give the losses) recognised for the period, are changes arising from market transferor a claim to receive directly excluding those that are classified as ‘other remeasurements. benefits of approximately equal value. non-owner changes in equity’. For this reason, grants are referred to by Receivables the AASB as involuntary transfers and are Net result from transactions/net Includes amounts owing from termed non reciprocal transfers. Receipt operating balance government through appropriation and sacrifice of approximately equal value Net result from transactions or net receivable, short and long term trade may occur, but only by coincidence. For operating balance is a key fiscal aggregate credit and accounts receivable, accrued example, governments are not obliged to and is income from transactions investment income, grants, taxes and provide commensurate benefits, in the minus expenses from transactions. It interest receivable. form of goods or services, to particular is a summary measure of the ongoing Supplies and services taxpayers in return for their taxes. sustainability of operations. It excludes Supplies and services generally represent gains and losses resulting from changes Grants can be paid as general purpose cost of goods sold and the day to day in price levels and other changes in the grants which refer to grants that are not running costs, including maintenance volume of assets. It is the component of subject to conditions regarding their use. costs, incurred in the normal operations the change in net worth that is due to Alternatively, they may be paid as specific of Tourism Victoria. transactions and can be attributed directly purpose grants which are paid for a to government policies. Transactions particular purpose and/or have conditions Transactions are those economic flows attached regarding their use. Net worth that are considered to arise as a result of Assets less liabilities, which is an economic Interest expense policy decisions, usually an interaction measure of wealth. Costs incurred in connection with interest between two entities by mutual component of finance leases repayments, Non financial assets agreement. They also include flows and the increase in financial liabilities Non financial assets are all assets that within an entity such as depreciation and non employee provisions due to are not ‘financial assets’. It includes where the owner is simultaneously the unwinding of discounts to reflect the inventories, land, buildings, infrastructure, acting as the owner of the depreciating passage of time. road networks, land under roads, plant asset and as the consumer of the service and equipment, investment properties, provided by the asset. Taxation is Interest income cultural and heritage assets, intangible and regarded as mutually agreed interactions Interest income includes unwinding over biological assets. between the government and taxpayers. time of discounts on financial assets and Transactions can be in-kind (e.g. assets interest received on bank term deposits provided/given free of charge or for and other investments. nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the government.
59 10 August 2011
Officer’s Declaration We certify that the attached financial statements for Tourism Victoria have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statements, balance sheet, statement of changes in equity, cash flow statement and notes forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2011 and financial position of Tourism Victoria as at 30 June 2011. We are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 10 August 2011.
Janine Kirk AM John Dalton Steve Wilson Chairman Acting as Chief Executive Chief Finance Officer Tourism Victoria Tourism Victoria Tourism Victoria Melbourne Melbourne Melbourne 10 August 2011 10 August 2011 10 August 2011
tourism.vic.gov.au Tel (03) 9653 9777 Fax (03) 9653 9722 1 / 2
61 2 / 2
62 TOURISM VICTORIA ANNUAL REPORT 2010–11 DISCLOSURE INDEX
The Annual Report of Tourism Victoria is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Institute’s compliance with statutory disclosure requirements.
Legislation Requirement Page
Ministerial Directions
Report of operations Charter and purpose FRD 22B Manner of establishment and the relevant Ministers 1 & 4 FRD 22B Objectives, functions, powers and duties 1 FRD 22B Nature and range of services provided 1 Management and structure FRD 22B Organisational structure 4 Financial and other information FRD 22B Operational & budgetary objectives and performance against objectives 24 FRD 22B Employment and conduct principles 21 FRD 22B Occupational health and safety 21 FRD 29 Workforce Data disclosures 22 FRD 15B Executive officer disclosures 57 FRD 22B Summary of the financial results for the year 24 FRD 22B Significant changes in financial position during the year 24 FRD 22B Major changes or factors affecting performance 24 FRD 22B Subsequent events 57 FRD 22B Application and operation of Freedom of Information Act 1982 23 FRD 22B Compliance with building and maintenance provisions of Building Act 1993 21 FRD 22B Statement on National Competition Policy 21 FRD 22B Application and operation of the Whistleblowers Protection Act 2001 23 FRD 25 Victorian Industry Participation Policy disclosures 21 FRD 22B Details of consultancies over $100,000 21 FRD 22B Details of consultancies under $100,000 21 FRD 12A Disclosure of major contracts 21 FRD 24B Reporting of office-based environmental impacts 23 FRD 22B Statement of availability of other information 21 FRD 10 Disclosure index 63 FRD 8A Budget Portfolio Outcomes 4 Financial statements Financial statements required under Part 7 of the FMA SD 4.2(b) Operating Statement 25 SD 4.2(b) Balance Sheet 26 SD 4.2(a) Statement of Changes in Equity 27 SD 4.2(b) Cash Flow Statement 27 Other disclosures in notes to the financial statements FRD 13 Disclosure of parliamentary appropriations n/a FRD 9A Departmental disclosure of administered assets and liabilities n/a FRD 11 Disclosure of ex-gratia payments 37 FRD 21A Responsible person and executive officer disclosures 55–57
Legislation Freedom of Information Act 1982 23 Building Act 1983 21 Whistleblowers Protection Act 2001 23 Victorian Industry Participation Policy Act 2003 21 Financial Management Act 1994 60 Audit Act 1994 61
63 TOURISM VICTORIA CONTACTS
Melbourne (Head Office) Sydney New Zealand Tourism Victoria Tourism Victoria Tourism Victoria Level 32, 121 Exhibition St Suite 7 Level 18 Level 3, 125 The Strand Melbourne VIC 3000 Darling Park Tower 2 Parnell 201 Sussex Street Auckland, New Zealand GPO Box 2219T Sydney NSW 2000 PO Box 1666 Melbourne VIC 3001 Auckland, New Zealand Tel +61 2 9287 6500 Tel +61 3 9653 9777 Fax +61 2 9287 6507 Tel 0011 649 379 0425 Fax +61 3 9653 9722 Fax 0015 649 379 4361 People’s Republic of China visitvictoria.com [email protected] Victoria Trade and Investment Office visitmelbourne.com Suite 308, Shanghai Centre North America visionsofvictoria.com 1376 Nanjing West Road Tourism Victoria tourism.vic.gov.au Shanghai 200040 China Suite 1150, 6100 Center Drive [email protected] Los Angeles CA 90045 USA Tel 0011 86 21 6279 8681 Fax 0015 86 21 6279 8685 Tel 0011 1 310 695 3245 [email protected] Fax 0015 1 310 695 3248 [email protected] Tourism Victoria Suite 6706, Central Plaza Europe 18 Harbour Road Tourism Victoria Wanchai, Hong Kong Neue Mainzer Str 22 60311 Frankfurt, Germany Tel 0011 852 2531 3870 Fax 0011 852 2845 2213 Tel 0011 49 2740 0677 Fax 0015 49 2740 0640 Japan [email protected] Tourism Victoria 4-25-7 Asumigaoka, Midori-ku United Kingdom/Ireland/Nordic Chiba-shi, Chiba-ken , Japan 267-0066 Countries Tourism Victoria Tel +81 0901 796 8174 Sixth Floor, Australia Centre, Fax +81 43 205 2285 Melbourne Place [email protected] Strand, London WC2B 4LG, United Singapore Kingdom Tourism Victoria Tel 0011 44 207 438 4645 101 Thomson Road Fax 0015 44 207 240 6690 #08-01 United Square [email protected] Singapore 307591 Tel 0011 65 6255 6888 Fax 0011 65 6255 2922 [email protected]
64 TOURISM VICTORIA ANNUAL REPORT 2010–11