Touris VictoriÅ A NNUAL R EPORT 1999-2000 visitvictoria.com Touris VictoriÅ 55 Collins Street Melbourne 3000 Victoria Australia GPO Box 2219T Melbourne 3001 Telephone (03) 9653 9777 Facsimile (03) 9653 9744 23 October 2000 The Hon John Pandazopoulos MP Minister for Major Projects and Tourism 55 Collins Street Melbourne Vic 3000 Dear Minister Tourism Victoria Annual Report 1999-2000 I am pleased to submit to you the Annual Report of Tourism Victoria for the year ended 30 June 2000.The report has been prepared in accordance with the Tourism Victoria Act 1992 and the Financial Management Act 1994. Yours sincerely JOHN KENNEDY Chairman visitvictoria.com Profil´ T OURISM V ICTORIA ISA VIBRANT AND DYNAMIC ORGANISATION ACTIVELY MARKETING V ICTORIA AS A PREMIER TOURISM DESTINATION WITHIN THE A SIA-PACIFIC REGION. ................................................................... As a market leader,Tourism Victoria is successfully raising awareness and Ten experienced private sector representatives form the Tourism visitation to Victoria from within Australia and from around the world Victoria Board, which provides the strategic direction for Tourism through innovative and effective marketing strategies and campaigns. Victoria based on four broad goals: In partnership with Victoria's tourism industry,Tourism Victoria is • Marketing Victoria to increase visitor numbers, length of stay working in line with its mission to "maximise employment and the and visitor expenditure by positioning Victoria as a distinct and long-term economic benefits of tourism to Victoria by developing competitive tourist destination; and marketing the State as a competitive tourism destination." • Providing leadership in the tourism industry to encourage The organisation acts as a catalyst in stimulating the growth and professional standards and the development of cooperative development of Victoria's tourism industry. arrangements to maximise industry effectiveness; As a Victorian State Government statutory authority, established by the • Improving Victoria's tourism assets by identifying infrastructure Tourism Victoria Act 1992,Tourism Victoria is the vehicle through which opportunities and facilitating development projects and the Government participates in the tourism and travel industries. international air services to Victoria; and • Managing and maximising the use of resources by conducting business in accordance with professional commercial management principles. Tourism Victoria is staffed by dedicated professionals who are committed to building on success and striving for new and innovative ways to market Victoria. For more information about Victoria as a great holiday destination visit visitvictoria.com visitvictoria.com 1 Chairman’Í Reporˇ T HE PAST YEAR HAS BEEN A SUCCESSFUL AND REWARDING ONE FOR TOURISM IN V ICTORIA ASTHE INDUSTRY CONTINUESTO SEIZE OPPORTUNITIES FOR GROWTH. ................................................................... The economic opportunities presented by tourism continue to Control of the organisation has been strengthened through the expand in both regional and metropolitan Victoria.The total economic rigorous operations of the Corporate Governance Committee. benefit of tourism to the State is now estimated at $10.5 billion Headed by Board Deputy Chairman Graeme McMahon, this per annum. Committee has made a major contribution to the efficient operation of Tourism Victoria. The relatively declining Australian dollar has had the countervailing impact of making Victoria and Australia better value for money The change of Government part way through the reporting year compared to other international holiday options, but it has also resulted in a smooth transition, with all key committed plans and reduced the impact of our market spending to promote our programs continuing and the policy initiatives of the new Government attractions overseas. embraced. Staff and management are to be congratulated on handling the transition with a high degree of professional competence, The combined performance in both the international and domestic ensuring that no loss of forward momentum occurred. areas has been strong but there are clear indications of the challenges ahead. Both markets remain extremely competitive and therefore it I would like to thank the Minister, the members of the Board, the is essential that marketing resources be tightly focused on obtaining staff of Tourism Victoria and the tourism industry in Victoria for their the maximum economic benefits that are available to the State. hard work and commitment over the past year. I would particularly like to thank the outgoing Board members, Marcia Griffin,Ted Substantial resources have been devoted to the development of Baillieu and Christine Fyffe for their service to the organisation. the e-marketing capability of Tourism Victoria and to facilitate the I congratulate the reappointed Board members,Tom Smith and uptake of e-commerce by Victorian product.This investment will Geoffrey Conaghan, and I extend a warm welcome to the new provide significant long term benefits for the State, enabling the Board members, Pamela Catty, Bee Ho Teow and Kevin Davern. complete range of Victoria's diverse tourism assets to be cost effectively show-cased to markets world-wide. Phase one of the The following year is set to be another satisfying and successful year Victorian Tourism Online project is now operational for Tourism Victoria, whilst presenting ongoing challenges in reaching at visitvictoria.com our global and domestic tourism markets. I look forward to further strengthening the partnerships between Tourism Victoria and Global interest in visiting Australia will significantly increase as a members of the industry to achieve our mutual goals. result of the Sydney Olympics.This year Tourism Victoria generated approximately $250 million worth of free publicity worldwide. In the same period Tourism Victoria hosted in excess of 2300 visitors to the State from influential groups such as the media, travel agents and tour wholesalers. Such groups often have great influence on consumers discretionary travel decisions, therefore this work will contribute significantly to future visitor numbers and yields. Tourism Victoria has been professionally managed by Jeff Floyd and his team against an agreed Annual Business Plan and a set of output targets as specified in the State Budget. A high level of achievement John Kennedy has been attained on a wide range of performance milestones, as Chairman evidenced by the specific results outlined in this report. visitvictoria.com 2 ChieÏ Executive’Í Overvie„ T HE 1999-2000 YEAR HASBEEN A CHALLENGING ONE AS T OURISM V ICTORIA HAS SOUGHT TO INTEGRATE THE EXCITING OPPORTUNITIES AFFORDED BY E- MARKETING INTO ITS ESTABLISHED AND SUCCESSFUL J IGSAW PROGRAMS. ................................................................... The Victorian Tourism Online project gathered pace with the Another important development for both domestic and international release of Tourism Victoria's new consumer and corporate web visitation was the launch of the Melbourne Attractions Pass.This sites - visitvictoria.com and tourismvictoria.com.au. As the world pass combines 11 of Melbourne's best attractions offering visitor rapidly joins the Internet revolution, the new consumer site is a key savings of at least 20 per cent off the normal price of the attraction. step in the global marketing of Victoria as a destination whilst the This is a good example of the collaboration between the different new corporate site offers Tourism Victoria's services to the tourism sectors of the tourism industry which underpins the successful industry online. promotion of Melbourne and Victoria. Tourism Victoria's close partnership with the Product Region A key achievement for Tourism Victoria in the past year was the Campaign Committees and regional tourism bodies will underpin value of 'free ink' media coverage of Victoria generated from around the success of Victorian Tourism Online, as it is they who will support the world: around $250 million dollars worth of free publicity.The Tourism Victoria in bringing regional tourism operators to join the focus on Australia as a result of the Sydney Olympics presented us Victorian Tourism Online initiative. Equally vital is Tourism Victoria's with the opportunity to host some of the international Olympic work with inbound tour operators, wholesalers, airlines and other Broadcast Rights Holders to film stories in Victoria to be included key partners in mutually exploring the opportunities of marketing as part of their Olympic coverage. on line. Such positive outcomes are a result of the efforts of the Tourism Tourism Victoria's traditional Jigsaw campaign has continued to be Victoria staff over the past year and I thank them for their very effective.The fifth stage of the campaign saw the centre of commitment, and professionalism. I also thank the Minister, the Sydney transformed using more than 200 illuminated sidewalk displays. Chairman and the members of the Board for their valued guidance This was part of a major new advertising campaign promoting and support during the year. Melbourne and its surrounds, and also incorporated outdoor billboards and significant magazine advertising. I look forward to another successful year ahead working in partnership with all the members of the Victorian tourism industry. An important factor in Victoria's tourism performance has been Tourism Victoria strongly values its close collaboration with wholesalers, an