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TOURISM VISION 2020: NORTHERN TERRITORY’S STRATEGY FOR GROWTH RAZORBACK RIDGE, SECTION 5 LARAPINTA TRAIL, CENTRAL AUSTRALIA UBIRR, KAKADU NATIONAL PARK © Northern Territory Government DISCLAIMER Tourism NT We have taken due care and attention in ensuring 18 Parsons Street information contained in this document Alice Springs NT 0870 was true and correct at the time of publication; PO Box 2532 however, changes in circumstances after the time ALICE SPRINGS NT 0871 of publication may impact upon its accuracy. We do not warrant that it is correct, complete or Telephone: 08 8999 3900 suitable for the purposes for which it is intended Email: [email protected] to be used. We disclaim all liability associated www.tourismnt.com (corporate) with the use of this information. www.travelnt.com (consumer) Aboriginal and Torres Strait Island readers and Published September 2013 by Tourism NT, viewers should be aware that this material may a statutory authority of the Northern Territory Government. contain images or names of deceased persons. TABLE OF CONTENTS MESSAGE FROM THE MINISTER 2 MESSAGE FROM THE CHAIR AND CEO OF TOURISM NT 3 EXECUTIVE SUMMARY 4 STATE OF THE INDUSTRY 6 Visitor Profile 6 The Visitor Economy 7 Current Economic Contribution 7 Current Market Analysis 8 VISION FOR THE VISITOR ECONOMY 12 A PARTNERSHIP APPROACH 14 CHALLENGES AND CONSTRAINTS 15 ACTION TOWARDS 2020 16 STRATEGIC REQUIREMENT 1: Grow Value 17 STRATEGIC REQUIREMENT 2: Address Supply Constraints 27 STRATEGIC REQUIREMENT 3: Improve the Visitor Experience 35 STRATEGIC REQUIREMENT 4: Improve Business Sustainability 43 MEASURING OUR PERFORMANCE 47 LIST OF ACRONYMS 48 TOURISM VISION 2020 1 MESSAGE FROM THE MINISTER FOR TOURISM The Northern Territory Government is making tourism an absolute priority, recognising it as crucial to its plans to build a bigger NT economy. Despite the Territory’s iconic natural landscapes, rich cultural heritage and award winning tourism experiences, in recent years the NT has been falling short of competing destinations across a range of tourism measures. Visitation to the NT has been declining since 2000 requiring a significant change in strategic focus and a whole-of-Territory partnership to revitalise the sector. Tourism Vision 2020: Northern Territory’s Strategy for Growth provides an essential blueprint for the sector, uniting efforts of industry and Government through an agreed set of strategies, actions and a 2020 target aimed at delivering a $2.2 billion visitor economy by 2020. Industry entrepreneurship and innovation will be key to delivering the turnaround required to meet the 2020 target. Tourism NT has been restructured to strengthen its focus on tourism marketing in partnership with industry, working to ensure the NT brand connects with our key audiences and that marketing activities focus on driving bookings. Other portfolios within government are focused on delivering results for tourism in areas such as aviation development, investment attraction, business development, indigenous participation and regional development. The NT Government as a whole is committed to resourcing this strategy for tourism. A thriving visitor economy is critical to the economic and social health of the Northern Territory. Through a shared commitment to Tourism Vision 2020, industry and Government will return the tourism sector to growth; stimulating investment, employment and regional development. HON MATT CONLAN MLA, Minister for Tourism 2 MESSAGE FROM THE CHAIR AND CEO OF TOURISM NT Tourism NT was tasked with developing a strategy on behalf of the tourism industry to return the sector to growth and capitalise on tourism opportunities emanating from changes in the wider economy. Tourism Vision 2020: Northern Territory’s Strategy for Growth sets the direction for the Northern Territory tourism sector over the next seven years outlining a vision “To grow the visitor economy in the Northern Territory to $2.2 billion by 2020 as measured by overnight visitor expenditure”. The 2020 NT growth target equates to 3.1% growth per annum, delivering an additional $535 million in visitor expenditure against 2011-12 levels and supporting an estimated 4300 new jobs. A ‘business as usual’ approach simply will not deliver the turnaround required to return the sector to growth. Essential to achieving the target of a $2.2 billion visitor economy by 2020 is a genuine partnership approach between industry and Government, focused on opportunities that span all aspects of the visitor economy. Tourism Vision 2020 identifies growth opportunities and partnerships outside traditional tourism markets and channels, positions the Territory to capitalise on rapid growth Asian markets and the high growth/high yield segments including business, cruise and education. Tourism NT will coordinate delivery of the Strategy and has committed to increasing its research capacity to guide industry’s collective investment in marketing, experience development and delivery. We look forward to working with industry on this important initiative to shape the future of tourism in the Northern Territory. Yours sincerely, MICHAEL BRIDGE, TONY MAYELL, Chair Chief Executive Officer TOURISM VISION 2020 3 EXECUTIVE SUMMARY CURRENT STATE OF PLAY Tourism is a major employer and a key contributor to the Northern Territory economy, however despite a rich blend of natural and cultural tourism experiences unlike anywhere else on earth, visitation to the NT has been steadily declining since 2000. This downturn has been driven predominantly by global events, most recently the economic downturn in the US and Europe impacting inbound travel from the NT’s key Western hemisphere source markets and a strengthening Australian dollar fuelling rapid outbound domestic travel. Central Australia has been most impacted by the decline in visitation due to the heavy reliance on holiday visitors from Western markets and the overall decline in regional visitation experienced across Australia. Reductions in aviation capacity in Central Australia have further exacerbated the decline. Visitation to the Top End has been buoyed by activity in the resources sector, although this has benefited Darwin city centre in particular, with little spill-over to regional destinations and market segments, such as leisure-focused extended tour product, due to the high proportion of business and employment related travel. OPPORTUNITY Increased resource and military sector activity in the NT, our proximity to the fastest growing travel market in the world, China, and rapid growth in niche segments such as cruise, business and education are just some of the emerging opportunities that the NT is well positioned to capitalise on. The NT’s competitive strength as a leisure destination is in providing visitor experiences that deliver a unique blend of nature and culture. These remain powerful motivators for the NT’s core visitor markets and are attributes that can be leveraged to attract visitors from niche market and experience segments including working holiday makers, cruise, business tourism, education, luxury and special interest tourism (e.g. bushwalking, bird watching, photography). By connecting the right products with the right markets and increasing the sales focus of all marketing activities, the opportunity exists to inspire more visitors to come to the NT, stay longer and spend more. With technology and social media increasingly influencing the way consumers research, share and book travel there is an enormous opportunity to expand the NT’s presence across digital channels to ensure more consumers are being connected to bookable NT experiences with the ability to purchase in real time. By adopting a more strategic approach to the NT’s major events, festivals and regional events, potential exists to leverage the NT brand, aid regional dispersal and address seasonality issues by providing visitors with a definite, time-based reason to travel to specific NT destinations. While the current climate requires an increased focus on demand generating marketing opportunities such as those listed above, a supply-side focus is also important to enhance the NT’s competitiveness as a global destination. There are significant opportunities to improve the visitor experience in the NT from the range of product and experiences available, to the delivery of visitor information and the quality of service delivery. These improvements will also drive increases in visitation and yield. Key enablers of visitation growth will be to increase access (aviation and transport), increase and improve accommodation (range and stock) and increase the availability of labour and skills. 4 THE TARGET ACTION NEEDED “To grow the visitor economy in To arrest the decline in visitation and stimulate the visitor growth required to meet the Northern Territory to $2.2 billion the goal of delivering $2.2 billion in overnight visitor expenditure by 2020, the NT by 2020 as measured by overnight must address the following strategic requirements: visitor expenditure.” 1 • Grow the value of the visitor economy through embracing opportunities outside The 2020 NT Growth Target, equates of traditional leisure sectors, delivering inspiring marketing and communications to 3.1% growth per annum, delivering that are sales oriented and focusing on priority markets and niche segments that an additional $535 million in visitor will provide the best return on investment in terms of visitor growth. expenditure against 2011/12 levels and supporting an estimated 4,300 new jobs. • Improve
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