Gold Coast Tourism Corporation Annual Report 2009/2010 Contents Chairman’S Summary
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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 Brisbane 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 Queensland. 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 2018 Commonwealth Games 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 City of Gold Coast. 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 Coolangatta 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