Gold Coast Tourism Corporation Annual Report 2009/2010 Contents Chairman’s Summary...... 4 Chief Executive Officer’s Summary...... 6 About Us...... 8 Our Marketing Approach...... 10 Australia Marketing Summary...... 12 International Marketing Summary...... 14 Convention Bureau Marketing Summary...... 16 Membership Services Summary...... 18 Financial Statements...... 22 Chairman’s Summary

This year, for the first time in its reporting history, the At the same time we have kept domestic tourism and World Tourism Organization detailed negative growth for Business Events on the radar. The drive market, which the global tourism industry. This statement, without being attracts more than 3.6 million visitors each year, has alarmist, gives necessary perspective to the environment received heavy investment for a multitude of year-round in which Gold Coast Tourism and our almost 500 tactical programs and interstate spend in the key cities member businesses have been operating. of Sydney and Melbourne sits at record levels. Business Events’ high yield has continued to be recognized, and The Australian tourism industry acknowledged the although 2009 was a lean year, forward prospects are effects of a lingering GFC and a strong Australian dollar looking good. with flat international visitation for the year. A disturbing highlight in these numbers, was the gap between The aviation sector, without which the industry Australians travelling overseas and international visitors would fail, has also had an outstanding year. Both to Australia widening to above the one million mark in Gold Coast and airports have reported record a 12 month period for the first time. passenger movements, additional services and new operating airlines. Despite this slowing in global and national tourism, the Gold Coast increased its international visitation I wish to acknowledge: the Mayor, Councillors and for the year by 5% to 826,000. This result is even management of the Gold Coast City Council for their more impressive when compared to the 2% decline in commitment to tourism through GCT; my fellow international visitors to . Travel by Australians Board members whose tireless work often goes to the Gold Coast was also above state and national unrecognised but which is so important to our industry; trends, with the Gold Coast outperforming most other the management and staff of Gold Coast Tourism that destinations to achieve a 3% increase in domestic make everything happen so seamlessly, and finally; overnight visitors to 3.3 million compared to the 3% our local, intrastate and national industry partners who decline in domestic overnight visitors for Queensland invest both their faith and finances with us for the as a whole. common good.

At a time when construction on the Gold Coast came Notwithstanding the challenge that the Gold Coast to a virtual standstill, the tourism industry stood tall, faces with aging infrastructure and stronger than ever underpinning the local economy and preserving competition, I believe the industry has a very bright future. thousands of jobs. Gold Coast Tourism takes the responsibility invested in it very seriously. By harnessing the unqualified support This ability to sustain numbers in a declining market it receives from the Gold Coast City Council and is testament to the work undertaken by all involved industry it can confidently enter the forthcoming year in marketing and promoting the destination. The with optimism. very credible result is also of great credit to the professionalism, planning and endeavour displayed by Gold Coast Tourism.

Gold Coast Tourism made decisive decisions and executed even more innovative programs in 2009/2010. Foremost amongst these was the decision to invest in a new brand, which will roll out in time for the peak summer holiday marketing period. The fresh creative captures the very essence of the Gold Coast and why we have been Australia’s favourite holiday playground for more than half a century.

Internationally, steps were taken to capitalise on the anticipated growth out of China by opening an office in Gold Coast Tourism can confidently enter the Shanghai, and appointing an in-market representative. By working closely with our partners from Tourism forthcoming year with positive optimism. Australia and Tourism Queensland, the combined effort has leveraged many millions of valuable marketing dollars for the region.

Paul Donovan 2009 / 10 Annual Report I 4 Chairman | Gold Coast Tourism Ltd 2009 / 10 Annual Report I 5 Key Challenges Chief Executive Officer’s • Increase visitor length of stay and expenditure • Grow market share of national business events sector Summary • Maximise the potential of our Chinese investment and new direct flights • Stimulate aviation capacity and new routes at both airports • Capitalise on sport tourism, including the bid • Motivate interest and investment of new major events Over the past 12 months, we have acknowledged Singapore office and redirecting our resources to for the city the impacts of the global recession on domestic and Shanghai, where we now have a full time representative • Champion projects of the Gold Coast Tourism international tourism as a matter of fact. However, this building the Gold Coast’s trade credentials as Asia’s Opportunities Plan from possibility to reality has not changed our determination to grow tourist favourite holiday destination and driving demand numbers and expenditure for the . from consumers. • Contribute positively to the Gold Coast image

The achievement of this, particularly when compared to Staff in our two Visitor Information Centres in Surfers the general decline in tourism to Queensland and our Paradise and continued their great work competitor destinations is an exceptionally positive and in providing visitors with a friendly welcome and hard fought outcome. professional service, meeting the needs of nearly a quarter of a million visitors. Gold Coast Tourism’s contribution to this result was to focus all our destination marketing resources on high The Gold Coast Convention Bureau, a business unit return activity, and extend our expenditure by leveraging within Gold Coast Tourism, submitted 162 bids for the work of Tourism Australia and Tourism Queensland. conference, incentive and corporate meetings, winning Our prime objective continued to be the generation of 65 for the destination which produced an economic demand from leisure and business travellers to enable impact of $24,080,934. In addition, 63 bids remain industry to capitalise by converting visitor opportunities pending at the end of the year, promising into booked business. By further increasing internal further positive results in 2010 and beyond. By further increasing internal efficiencies, the total funds devoted to marketing increased by 15% to 86% of total expenditure.

efficiencies, the total funds devoted to marketing There is no doubt that some sectors of our industry increased by 15% to 86% of total expenditure. will continue to struggle with the prolongation of the market downturn, the strong Australian dollar and the At the same time, Gold Coast Tourism produced timing of Ramadan more than others. The immediate an outstanding financial result by applying tight challenge for Gold Coast Tourism is to respond to these management control. This delivered an operating issues over the forthcoming year and to continue to surplus of $1.65 million which not only underpins the grow demand. At the same time we must also look to company’s sustainability, but also facilitates its ability to the future to ensure the destination maintains relevance react positively to emerging opportunity. Close scrutiny in the context of changing consumer expectations, of all expenditure ensures the best return on investment and to deal effectively with the real issues of aging for our funds. The generation of $38 million in unpaid infrastructure, public safety, workforce skilling and media exposure over the year through effective public destination image. relations activity highlights the results that Gold Coast Tourism has achieved through our focus on efficient On behalf of the entire Gold Coast Tourism team, resource management. I wish to thank our members; industry partners; key stakeholders; the Mayor, Councillors and management Because of our commitment to corporate operations, of the Gold Coast City Council; and our chairman Paul Gold Coast Tourism was able to roll out an extensive Donovan and the Gold Coast Tourism Board for their number of high quality domestic and international continuing confidence and faith in our operations. campaigns, familiarisations and sales missions in The tourism industry is fundamental to the economic 2009/2010 which delivered positive results for the future of our city, and I look forward to working again destination. At the same time, several excellent staff in a collaborative manner in the year ahead to strongly appointments were made to ensure the delivery of the contribute to its growth and prosperity. programs and to improve the capability of the company going forward. In recognition of the great potential that lies in China, we acted decisively by closing our

Martin Winter 2009 / 10 Annual Report I 6 Chief Executive Officer | Gold Coast Tourism Ltd 2009 / 10 Annual Report I 7 About Us

Gold Coast Tourism is a not-for-profit, membership based, destination marketing organisation structured to promote the city as a leisure and business event destination through global and domestic trade, media and travel industry channels.

We represent a membership base of approximately 500 accommodation venues, theme parks and attractions, tour operators, restaurants and cafes, entertainment venues, transport providers and professional support services. Furthermore we work on behalf of almost 27,000 commercial businesses which contribute to our operation through a tourism levy.

Our industry partnerships span all levels of tourism authority including, but not limited to, Tourism Australia, Tourism Queensland, Gold Coast City Council, Connecting Southern Gold Coast, Broadbeach Alliance and Surfers Paradise Alliance.

Vision For the Gold Coast to be recognised locally, nationally and internationally as one of the world’s great tourist and Business Goals business events destinations. For Gold Coast Tourism • Increase visitor arrivals and expenditure to the city to be universally acknowledged as a successful, globally • Operate with a sustainable business model aware destination marketing organisation that embraces a culture of continuous improvement, customer • Deliver value to members focus, current technology, contemporary leadership • Deliver business outcomes based upon quality research, and excellence. best practice and return on investment • Apply available resources in the most effective Mission and productive manner To grow tourist visitation and expenditure to the Gold • Identify and invest in growth opportunities Coast, thereby facilitating wealth generation in the • Build the capacity of the Gold Coast Convention Bureau tourism and business events sectors for the benefit of stakeholders and the community. To add value to • Demonstrate industry and destination management leadership members through promotion and destination awareness. • Establish Gold Coast Tourism as an employer of choice

Brand Values The Gold Coast is Australia’s playground. It is a welcoming, vibrant, diverse, fun and entertaining destination. These values are reflected in the work of Gold Coast Tourism.

Our Role Tourism directly contributes $4.6 billion into the Gold Coast economy annually and accounts for 19,000 full time equivalent jobs in the city. Established in 1975, Gold Coast Tourism employs a staff of marketing and sales professionals to positively promote the destination. Our work generates exposure and converts the interest of potential leisure and business consumers from outside the Gold Coast region into visitation for the businesses of the city. Our strategies and activities are developed in consultation with the local industry, local council, state and national tourism bodies, national and international travel trade and other industry partners.

2009 / 10 Annual Report I 8 2009 / 10 Annual Report I 9 Our Marketing Approach

Internationally, we leverage our cooperative partnerships even further to enhance our spend and gain greater reach.

Gold Coast Tourism’s focused and strategic approach to marketing the The primary markets in which we are most active are judged on six Gold Coast Tourism operates to promote the destination image and Trade and consumer shows enable us to update and educate Gold Coast as a holiday and business events destination ensures key criteria. They are: attract leisure and business event visitors to the city. This is executed the travel wholesalers, inbound tourism operators, professional we achieve maximum value from our investments of time, resources • Current visitor volume or expenditure to Gold Coast through five main categories of activity. They are: conference organisers and travel agent networks which are and budget. crucial influencers of travel to the Gold Coast. • Forecast outbound visitor volume or expenditure • Marketing Campaigns and Promotions In our largest market, Australia, we balance independent and It is also important to visit the markets to conduct sales calls and • Current or probable aviation access into Gold Coast • Public Relations cooperative activity depending on season, sector and circumstance. or Brisbane airports talk first hand with consumers, travel agents, wholesalers, airlines Our cooperative activity includes regular campaigns with Gold Coast • Trade and Consumer Shows and representatives of Tourism Queensland and Tourism Australia. • Priority regions identified by Tourism Queensland and Tourism member businesses, Surfers Paradise Alliance, Broadbeach Tourism marketing is a business built on relationships and it is Tourism Australia • Sales Calls Alliance, Connecting Southern Gold Coast, , Tourism necessary to meet face to face several times throughout the Queensland, travel retailers and airlines. • Fit with psychographic profile Gold Coast holiday • Media and Trade Familiarisations year to ensure the destination remains relevant and understood. segmentation: This is especially important in the Business Events arena where Internationally, we leverage our cooperative partnerships even further Marketing activity direct to consumers primarily consists of traditional • Social Fun Seeker professional conference organisers recommend the Gold Coast to to enhance our spend and gain greater reach. Our chief international above-the-line advertising media promoting holiday experiences, their clients for conference and incentive events. marketing partners are Tourism Queensland, Tourism Australia and • Connector packages and airfares to the Gold Coast throughout peak and international airlines. • Experience Seeker off-peak periods. Bringing targeted media or trade representatives to experience the destination first hand has proven to be one of the most effective Promotions and public relations work is generally organised to ways to gain exposure or advocacy for the city within a highly complement the marketing campaigns through below-the-line competitive environment. Throughout the year we will host hundreds channels such as events, social media and publicity. of media and trade contacts whose personal experience goes on to positively influence millions of their audience or clients.

2009 / 10 Annual Report I 10 2009 / 10 Annual Report I 11 Australia Marketing Summary Highlights Campaigns • Tourism Queensland / Wotif, National - September 2009 • Infinity Holidays / Escape Travel, National - November 2009 • Tiger Airways, National - November 2009 and February 2010 • Virgin Blue / Blue Holidays / Tourism Queensland / Gold Coast Airport, National - January 2010 • Tourism Australia / Harvey World Travel/Qantas Holidays /Mantra Group, National - March 2010 • Flight Centre / Tourism Queensland / Infinity Holidays /Virgin Blue, National - May 2010 • Winter Regional Press, National - June 2010 • YourCoast Campaign 1-6, - July 2009 to June 2010

Familiarisations • Qantas Achievers, National - March 2010 • Domestic Wholesale Challenge, National - July 2009 • Travel Managers Conference, National - November 2009 • Harvey World Travel Residential School, National - November 2009 • APN Newspapers Journalists Rugby League Weekend, National - May 2010 • Courier Mail Journalist Rugby League Weekend, Queensland - June 2010

The Australia Marketing Department delivered a comprehensive calendar Missions of national activity with particular focus on our largest visitor source • Carnival of Flowers, Toowoomba - September 2009 markets of Brisbane, Sydney, Melbourne, regional Queensland, and regional . • Mr Summer Roadshow, Sydney and Melbourne - November 2009 We have been dedicated to developing and delivering cooperative • Austereo Roadshow, Sydney and Melbourne - May 2010 marketing campaigns on behalf of the city. By cooperating with a partner • Primex Consumer Show, Northern NSW - June 2010 or group of partners, we have greatly increased our campaign budgets, significantly extended the life of our campaigns, and demonstrably improved campaign conversion. In short, by collaborating with partners such as Tourism Queensland, Flight Centre, Wotif Group, Jetstar, and many others, we have generated bigger campaigns and more visitor bookings.

A continued push to bring Brisbane and south east Queensland residents back to the Gold Coast has proven timely and successful. Television, cinema, print, radio, digital and outdoor advertising has been maintained in this four hour drive radius throughout the year with YourCoast.com.au being the main conversion platform. YourCoast has been well supported by GCT members promoting their quarterly offers through the site.

And finally, the Gold Coast Tourism Sporting Strategy has developed over the past 12 months. In addition to our established support of major events and other City Council funded events, the Australia Marketing Department has increased our cooperative activity with national sporting teams in the promotion of the City as a short break sporting event option.

2009 / 10 Annual Report I 12 2009 / 10 Annual Report I 13 International Marketing Summary

Highlights Campaigns Familiarisations Sales/Trade Missions • Hanjin Home Shopping, Korea - • UK Etihad Agents Famil, United Kingdom • Indian Mega Famil/Workshops, India - September 2009 - September 2009 August 2009 • AirAsia X Big Fun Tiny Fares, Malaysia - • Daks Kids Famil/Photo Shoot, Korea - • China Sales Roadshow, China October 2009 October 2009 and Hong Kong - August 2009 • Japan Airlines Group, Japan - • Super GP Media Famil, Singapore - • GCT Japan Mission, Japan - October 2009 October 2009 September 2009 • STA Backpacker, UK - January 2010 • AirAsia X Bumi Photo Shoot - • WYSTC Convention, United Kingdom - • FTI Online and Instore, Germany - November 2009 September 2009 February 2010 • Jetstar Mega Famil, Japan - • Greater China Travel Mission, China - • Consumer Direct Newspaper November 2009 November 2009 Supplement, New Zealand - • Discovery Channel Asia Shoot, • Middle East Roadshow, Middle East - February 2010 South East Asia - January 2009 February 2010 • SETTour, Taiwan - February 2010 • Agent Mega Famil, New Zealand – • Flight Centre Travel Expo, New Zealand - • Kesari, India - May 2010 February 2010 February 2010 • Jin Jiang, China - May 2010 • ATEC Inbound Famil and Workshops, • NATAS Consumer Travel Fair, Singapore - The International Marketing Department has increased promotion and National - March 2010 February 2010 • Al Rais, Middle East - June 2010 understanding of the Gold Coast across our seven key international • JATA Wedding Famil, Japan - • JAM/KTM, Japan and Korea - source markets of New Zealand, Japan, China, South East Asia, India, January 2010 January 2010 Middle East and the United Kingdom. • Lawand Agent Famil, Middle East - • MATTA Consumer Travel Fair, Malaysia - We have been focused on continually improving the destination’s April 2010 March 2010 exposure and conversion through the various travel trade and travel distribution channels in each of these key markets and in additional markets including Korea, the United States and Taiwan. Effort has been made to constantly educate international travel agents on Gold Coast product, partner with travel trade and airlines in consumer direct campaigns and align the Gold Coast with established and credible brands in each market.

Furthermore, we undertook a strategic review of our South East Asia and China operations in 2009. This facilitated a minor restructure of staff and expertise which included the appointment of dedicated marketing resources for Greater China and Asia / Middle East, along with the opening of a representative office in Shanghai, China.

Finally, it must be noted that very few of Gold Coast’s key international source markets were unaffected by the combination of the global economic crisis, the H1N1 influenza and Australia’s strengthening dollar over the past 12 months. As such, the Gold Coast’s increased visitor and visitor expenditure performance compared to lacklustre state and national trends has been exceptional.

2009 / 10 Annual ReportReport I I 14 14 20092009 / / 10 10 AnnualAnnual ReportReport I 15 Convention Bureau Marketing Summary

The Gold Coast Convention Bureau has achieved significant outcomes Highlights in the domestic and South East Asian markets over the past 12 months, and our tactical expansion into China and India has progressed to plan. Bid Activity

With a renewed strategic and resource focus on bid development • Bids Submitted - 162 and conversion, we have become a more aggressive competitor • Bids Won - 65 in the association bidding arena. This was evident with our International • Bids Value - $24,808,934 Congress and Conference Association (ICCA) global ranking improving by 49 spots from 202 to 153 on the influential scale of serious Familiarisations congress destinations. • Corporate Famil, South East Asia - January 2010 The Gold Coast’s international reputation was further enhanced when • Corporate Famil, India - January 2010 our bid to host the prestigious ICCA 2013 Conference was short listed • Post AIME Famil, Australia and International - March 2010 with Shanghai and Houston. Despite Shanghai winning the 2013 bid, we were able to establish a new level of credibility for the city amongst • Air New Zealand Top PCO Famil, New Zealand - May 2010 the world’s professional conference leaders. • Emirates Premium Group Famil, New Zealand - May 2010

We have enhanced the quality and quantity of internal research Sales/Trade Missions processes, leading to greatly improved efficiency in our sales and bidding efforts. Similarly, the establishment of working relationships • Sales Calls Conducted - 116 with Gold Coast and Brisbane based universities has proven very • Site Inspections Hosted - 26 effective in converting association bids into business for the city. • Shanghai Expo Event, China - June 2010 Finally, our commitment to generating wide MICE media coverage • TABEE, China - March 2010 has been well executed, with every key industry media outlet • ICCA Congress, Global - October 2009 covering Gold Coast products, events, features or themes throughout • EIBTM, Global - December 2009 the year as a result of our proactive story pitching and content distribution strategy. • IMEX, Global - May 2010 • Dreamtime, Global - October 2009 • AIME, Global - March 2010 • MEA National Conference, Global - April 2010 • PAICE, New Zealand - September 2009 • Associations Forum National Conference, Australia - July 2009 • AACB Staff Conference, Australia - September 2009 • PCO Association National Conference, Australia - December 2009

2009 / 10 Annual Report I 16 2009 / 10 Annual Report I 17 Membership Services Summary

All Members by Category Table: Gold Coast Tourism Members by Business Type 2009/2010

Transport Venue

Tours Accommodation

481 Suppliers At June 2010 there were 481 Gold Coast Tourism members. Org/Assoc Attractions Hire Events

The Membership Services Department has increased the number and range of our membership base over the past 12 months, facilitating a greater representation and perspective of local business to inform the strategy and activity of the peak tourism body. At June 2010 there were 481 Gold Coast Tourism members.

Engaging with members through one on one visits, frequent industry events, regular news communications, special training programs, and a variety of marketing opportunities has been the dedicated approach of the new Membership Services Department this year. The introduction of a three phase member meeting cycle has increased consistency and efficiency of member relationship management and generated better communication and increased contact between Gold Coast Tourism and our valued members.

The second annual Member Survey identified a continued increase in member satisfaction. On a five point scale (five being very satisfied), we recorded an averaged score of 3.4 - compared to 3.1 for the same criteria in the previous year.

2009 / 10 Annual Report I 18 2009 / 10 Annual Report I 19 Gold Coast Tourism Corporation Limited ACN 009 935 184 Financial Statements For the year ended 30 June 2010

Contents Directors’ Report...... 22 Statement of Comprehensive Income...... 25 Statement of Financial Position...... 26 Statement of Changes in Equity...... 27 Statement of Cash Flows...... 28 Notes to and Forming Part of the Financial Statements...... 29 Auditor’s Independence Declaration...... 44 Directors’ Declaration...... 45 Independent Auditor’s Report...... 46 Gold Coast Tourism Corporation Limited ACN 009 935 184 Directors’ Report

2009 / 10 Annual Report I 22 2009 / 10 Annual Report I 23 Gold Coast Tourism Corporation Limited ACN 009 935 184 Gold Coast Tourism Corporation Limited ACN 009 935 184 Directors’ Statement of Report (cont.) Comprehensive Income For the year ended 30 June 2010

2009 / 10 Annual Report I 24 2009 / 10 Annual Report I 25 Gold Coast Tourism Corporation Limited ACN 009 935 184 Gold Coast Tourism Corporation Limited ACN 009 935 184 Statement of Statement of Financial Position Changes in Equity As at 30 June 2010 For the year ended 30 June 2010

2009 / 10 Annual Report I 26 2009 / 10 Annual Report I 27 Gold Coast Tourism Corporation Limited ACN 009 935 184 Gold Coast Tourism Corporation Limited ACN 009 935 184 Statement of Notes to and forming part of Cash Flows The Financial Statements For the year ended 30 June 2010 For the year ended 30 June 2010

2009 / 10 Annual Report I 28 2009 / 10 Annual Report I 29 Gold Coast Tourism Corporation Limited ACN 009 935 184 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June 2010

2009 / 10 Annual Report I 30 2009 / 10 Annual Report I 31 Gold Coast Tourism Corporation Limited ACN 009 935 184 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June 2010

2009 / 10 Annual Report I 32 2009 / 10 Annual Report I 33 Gold Coast Tourism Corporation Limited ACN 009 935 184 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June 2010

2009 / 10 Annual Report I 34 2009 / 10 Annual Report I 35 Gold Coast Tourism Corporation Limited ACN 009 935 184 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June 2010

2009 / 10 Annual Report I 36 2009 / 10 Annual Report I 37 Gold Coast Tourism Corporation Limited ACN 009 935 184 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June 2010

2009 / 10 Annual Report I 38 2009 / 10 Annual Report I 39 Gold Coast Tourism Corporation Limited ACN 009 935 184 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June 2010

2009 / 10 Annual Report I 40 2009 / 10 Annual Report I 41 Gold Coast Tourism Corporation Limited ACN 009 935 184 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June 2010

2009 / 10 Annual Report I 42 2009 / 10 Annual Report I 43 Gold Coast Tourism Corporation Limited ACN 009 935 184 Gold Coast Tourism Corporation Limited ACN 009 935 184 Auditor’s Directors’ Independence Declaration Declaration

2009 / 10 Annual Report I 44 2009 / 10 Annual Report I 45 Gold Coast Tourism Corporation Limited ACN 009 935 184 Independent Auditor’s Report

2009 / 10 Annual Report I 46 2009 / 10 Annual Report I 47 Gold Coast Tourism Corporation Annual Report 2009/2010

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