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Annual Report 2017/18 Annual report 2017/18 australia.com | australia.cn | tourism.australia.com | australia.com/businessevents This report details Tourism Australia’s operations and reviews our performance against the objectives and goals set out in the Tourism Australia Corporate Plan 2017 to 2021 and the Portfolio Budget Statements 2017–18: Budget Related Paper No. 1.9 – Foreign Affairs and Trade Portfolio. The report was prepared in accordance with the Tourism Australia Act 2004 (Cth), the Public Governance, Performance and Accountability Act 2013 (Cth) and other relevant legislation. This report includes case studies of Tourism Australia’s marketing activities across the globe, highlighting our activities and successes in the countries where we operate. Tourism Australia acknowledges the traditional owners of this country throughout Australia and their continuing connection to land, sea and community. We pay our respects to them, their cultures, and to their elders both past and present. – Letter of transmittal – 23 October 2018 Senator the Hon. Simon Birmingham, Minister for Trade, Tourism and Investment Parliament House Canberra ACT 2600 Dear Minister I am pleased to present the 13th annual report of Tourism Australia for the reporting period 1 July 2017 to 30 June 2018. It has been approved by the Tourism Australia Board. The report has been prepared in accordance with section 39 of the Tourism Australia Act 2004; section 46 of the Public Governance, Performance and Accountability Act 2013; and Finance Orders. Yours sincerely Bob East Chairman Maleny, Sunshine Coast, QLD ANNUAL REPORT 2018 CONTENTS 1.0 ABOUT US 1.1 Overview 05 1.2 Our strategy – Tourism 2020 07 2.0 2017/18 OVERVIEW 2.1 Executive reports 14 2.2 Annual Performance Statement 18 2.3 Key events 26 2.4 Visitor numbers and spend 30 2.5 Awards 2017/18 32 3.0 PERFORMANCE IN DETAIL 3.1 Grow demand 35 3.2 Industry development 81 4.0 MANAGING OUR ORGANISATION 4.1 Performance overview 95 4.2 People 96 4.3 Organisational capability 102 4.4 Environmental performance 104 4.5 Organisational structure 105 4.6 Organisational changes 106 4.7 Executive Leadership team profiles 108 5.0 CORPORATE GOVERNANCE 5.1 Performance overview 111 5.2 Enabling legislation and responsible Minister 112 5.3 Governance framework and practices 113 5.4 Board activities and committees 115 5.5 Board profiles 117 6.0 FINANCIALS 6.1 Financial performance overview 121 6.2 Financial statements 124 7.0 REFERENCES AND APPENDICES 7.1 Glossary 156 7.2 Abbreviations and acronyms 157 7.3 Alphabetical index 158 7.4 Tables and figures index 160 7.5 Compliance index 161 7.6 Contacts 162 Cover image: In February 2018, Tourism Australia launched the Dundee marketing campaign in the USA, kicking off with a Super Bowl ad as part of the world’s most watched television broadcast. Supported by Qantas and starring some of Australia’s biggest celebrities, the campaign features all states and territories, showcasing experiences that resonate most strongly with American high-value travellers. TOURISM AUSTRALIA 1 1st Australia ranks first globally for Tourism is one of five super of every tourism dollar is visitor spend per trip and 9th growth industries driving the spent in regional Australia3 globally for tourism receipts1 future prosperity of Australia2 (+6%) Number of international Partnership marketing Return on every dollar invested visitors to Australia (June 18) revenue contributed by the in tourism promotion tourism industry (+12%) (+17%) (+17%) Fans of Tourism Australia’s Instagram Twitter followers Facebook page followers @Australia: 570K (Australia.com – 8.16M, @TourismAus: 137K Aussie News Today – 693K) @MeetinAustralia: 19.4K Sunrise at Wineglass Bay, TAS 2 ANNUAL REPORT 2018 (+7%) (+5%) in a row that tourism has Overnight spend Spend by international outpaced the growth of the by travellers (June 18) travellers (June 18) national economy 4 (+12%) (+11%) Stakeholder satisfaction Unique visitors Unique visitors to Tourism with our work to australia.com Australia and partner websites (+35%) (+2%) Weibo followers Staff engagement Gender diversity among staff (female-to-male ratio) 1 United Nations World Tourism Organisation, World Tourism Barometer, December 2017. 2 Deloitte, Tourism and Hotel Market Outlook, 2017. 3 Tourism Research Australia (TRA), State of the Industry, February 2018. 4 TRA, Tourism Satellite Accounts 2016–17. (+1%) 2017/18 of Australians believe international tourism is good for our country HIGHLIGHTS MOOD OF THE NATION STUDY In 2017, Tourism Australia completed the second ( ) round of a study to identify opportunities for the +2% Australian tourism industry to improve how we of Australians are tell our story. The Mood of the Nation study found proud of the way that while Australians recognise the importance Australia is promoted and benefits of our industry, they consistently underestimate its size and value. Educating the public about the overall value of tourism to Australia’s economy is imperative to ensuring a successful and sustainable future for Australian tourism. TOURISM AUSTRALIA 3 1.0 ABOUT US IN THIS SECTION 1.1 Overview 05 1.2 Our strategy – Tourism 2020 07 The National Carillon, ACT 4 ANNUAL REPORT 2018 1.1 OVERVIEW Tourism Australia is a corporate Commonwealth entity formed under the Tourism Australia Act 2004 (TA Act). It is governed by a Board of Directors that is appointed by the Minister responsible for tourism under the TA Act and the Public Governance, Performance and Accountability Act 2013 (PGPA Act). OUR VISION OUR LEGISLATIVE FUNCTIONS AND DELIVERABLES Our vision is for Australia to be the most desirable and memorable destination on earth. Under the TA Act, Tourism Australia’s main functions are to: OUR ORGANISATIONAL PURPOSE ● Increase potential international travellers’ Our aim is to grow demand and foster awareness of Australia as a destination a competitive and sustainable Australian ● Increase potential domestic travellers’ tourism industry through partnership awareness of Australia as a place to travel marketing to targeted global consumers in key markets. This purpose is identical to ● Increase both international and domestic our Australian Government outcome, as potential travellers’ knowledge of Australia outlined in the Portfolio Budget Statements. ● Increase both international and domestic potential travellers’ desire to travel to and OUR MARKETING PURPOSE throughout Australia2 Our marketing purpose is to invite the world ● Conduct research into, and analyse, to experience the Australian way of life. international and domestic travel OUR GOAL ● Communicate effectively with the Australian Our goal is to achieve more than $115 billion tourism industry on matters that may affect it in overnight tourism spend by 2020 (up from ● Increase awareness among Australians of 1 $70 billion in 2009). We share this goal with the contribution tourism makes to Australia’s the Australian tourism industry and with federal, economy, society and environment state and territory governments, to maximise ● Report on trends in international and tourism’s contribution to the Australian people. domestic travel. OUR VALUES Our values support our vision. They are the essence of our identity and guide our behaviour and the relationships we have with our customers and partners. They are: United Positive Genuine Commercial Innovative we are one team we are optimistic we are authentic we deliver results we are creative thinkers 1 The 2009 benchmark is derived from the 2020 Tourism Industry Potential, which preceded the Tourism 2020 strategy. 2 While the TA Act outlines domestic functions, Tourism Australia is not currently engaged in domestic tourism marketing activities. This change in Tourism Australia’s remit came into effect in 2013, and is outlined in the Minister for Trade, Tourism and Investment’s Statement of Expectations for Tourism Australia. TOURISM AUSTRALIA 5 OUR AUSTRALIAN GOVERNMENT OUTCOME AND PROGRAMS Each year, Australian Government agencies are required to identify the programs they plan to undertake, and the desired outcomes of those programs as influenced by the actions of the Australian Government. Programs are the vehicles for agencies to deliver on their outcomes. Tourism Australia has one government outcome: ‘To grow demand and foster a competitive and sustainable Australian tourism industry through partnership marketing to targeted global consumers in key markets’.1 This outcome was delivered through two programs: 1 Grow demand 2 Industry development. How we measure the success of our programs Goal: Increase overnight tourism expenditure to more than $115 billion by 2020 Program Measure Grow demand Overnight tourism spend Total international spend Total international spend by visitors from Tourism Australia markets Total international spend by leisure visitors from Tourism Australia markets Total international spend by business events visitors from Tourism Australia markets Earned advertising value Total unique visitors to Tourism Australia websites Return on marketing investment Industry development Stakeholders indicate that Tourism Australia adds value to their business Table 1: Tourism Australia’s government programs and performance metrics Katherine Gorge sunset cruise, Nitmiluk National Park, NT 1 Portfolio Budget Statements 2017–18: Budget Related Paper No. 1.9 – Foreign Affairs and Trade Portfolio, p. 159. 6 ANNUAL REPORT 2018 1.2 OUR STRATEGY — TOURISM 2020 Tourism 2020 is a whole-of-government and PERFORMANCE AGAINST TOURISM 2020 industry strategy designed to build
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