Download Matt Hingerty Tourism Presentation

Australian Tourism Export Council
Matthew Hingerty
Managing Director
The value of international tourism
to Australia - and the importance of
sister city connections in building
tourism relationships
Inbound Tourism’s Value
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$24 billion exports
5 million visitors
500k employed directly
Largest service sector exporter
Sister Cities - why tourism needs them
Global IVAs
(in millions, source UNWTO)
898.0
842.0
766.0
636.7
652.3
1998
1999
687.3
684.1
702.6
694.0
2000
2001
2002
2003
Year
2004
802.0
2005
2006
2007
IVAs to Asia Pacific
(in millions, source NTOs, compiled by PATA)
375.2
347.3
329.4
306.2
257.5
261.1
2000
2001
272.7
254.3
231.7
213.3
1998
1999
2002
2003
Year
2004
2005
2006
2007
Outlook for 2008
(Year-on-year % growth; source: UNWTO)
9.0%
8.0%
7.0%
4.0%
3.5%
2.0%
Africa
Asia & Pacific
Middle East
World
Europe
Americas
But Australia is missing out!
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Predicted inbound growth 2008 – 0% (if we’re lucky)
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Rising energy prices, inflation & interest rates will continue to
affect the current economic landscape.
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Global credit crunch and stock market slump is creating an
growing sense of consumer unease and financial worry.
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The dollar and its impact.
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Government Policy – Tax, ETS, etc.
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Oil….
Sister City Travel
more “do-able” than ever
Aviation
The Low Cost Carriers
Revenue Generation
Nok Air - Thailand
QANTAS response has been the creation of Jetstar
and Jetstar Asia…
Source: IATA, CAPA
It’s not all about LCC’s
The emergence of China & the Middle East as
major aviation and tourism players is going to
have an impact…….
Emirates
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Current Fleet 75
• Has 175 aircraft on
order Including:
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58 Airbus A380
47 Boeing 777
70 Airbus A350
Plan to launch an
LCC using A380’s
Dubai - DXB
• Handling capacity 70 million pax
• Runways - 6
• Has overtaken Singapore as the worlds 5th largest hub
Gulf Carriers
Airline Launched in 1995
Current Fleet 45
Has 112 Aircraft on order
Annual growth of 35% in the past 7yrs
Now Operates to 75 destinations
Airline Launched in 2003
Current Fleet 24
Fleet will expand to 32 by 2008
Has 14 aircraft on order incl. 4 x
A380’s
Operate to 70 destinations by 2010
Airline Capacity
Airline Capacity
Currently 934 Aircraft on order
Regional International Airports
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Cairns
Gold Coast
Avalon
Darwin / Alice Springs
Newcastle?
Margaret River?
Outbound flows
(Source ABS)
Australia
2005
2006
2007
Arrival
5497
5532
5644
Departure
4756
4941
5463
Index
0.87
0.893
0.968
In 2007 inbound arrivals grew by 2% whereas
outbound grew at 10.6%
New opportunities coupled with the strong
AU$ is eroding domestic tourism.
Challenges
• Climate Change
• Oil
• The rise of the planned economies
Climate Change
Oil
Jet Fuel
Planned v Democratic Economies
Asia Pacific Hotels:
• 1,555 in the construction pipeline
• Comprising 366,679 rooms
(Source: Lodging Econometrics, October, 2007 & March 2008)
Accommodation
Greater China:
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728 hotel projects with 222,600 rooms
Accounts for 50% of all planned projects and
60% of all new rooms
78% are currently under construction
Additional Rooms Added 2007 - Top 5
22,950
19,326
15,180
7100
6000
Beijing
Shanghai
Bangkok
Tokyo
Hong Kong SAR
Macau
(Source Macau Government Tourist Office)
Venetian Macao Resort
• IVA’s Increase 22.7% 2007
to exceeded 27million
• 55% from Mainland China
• Infrastructure development
exceeds US$25Bn
• 22 hotels currently under
construction
• Asia’s largest conference
venue with 15,000 fixed
seat theatre
Accommodation
Greater China:
• 728 hotel projects with 222,600 rooms
• Accounts for 50% of all planned projects and
60% of all new rooms
• 78% are currently under construction
• Australia currently has 2676 rooms under
construction. An increase of 32% since Nov07.
(Source Jones Lang la Salle Hotels)
An opportunity
Thailand Hospitals
Bangkok
Thai Nakarin Hospital
Thai Hospital, Bumrungrad International
Working with the Travel Industry
The role of ITOs in the distribution
system
PRODUCT
SUPPLIER
INBOUND
TOUR
OPERATOR
TOUR
WHOLESALER
TRAVEL
AGENT
CONSUMER
Inbound Tour Operators
• Provide a vital link between the suppliers of Australian
tourism product and the overseas travel companies
that buy it.
Australian Tourism Export Council
Thank you
www.atec.net.au