Growing the NSW Visitor Economy - Dawn of a New Era March 2012 - - PowerPoint PPT Presentation

Growing the NSW Visitor Economy

• Dawn of a New Era

March 2012 Presented by Sandra Chipchase

Vision:

To make Sydney and NSW one of the world’s most successful tourism and events destinations

Mission:

To double visitor expenditure by 2020 and maximise the benefits of the visitor economy for NSW

Corporate Goals

• To generate increased overnight visitor expenditure in Sydney and New

South Wales

• Attract and secure high value Major Events
• Build a sustainable Events Calendar for NSW
• Maximise yield and dispersal from the Visitor Economy
• Create and sustain a high performance organisation

Destination New South Wales

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NSW Government Commitment Goal: Double the overnight visitor economy by 2020

• From $18.3B

$36.7B

• To achieve that goal, DNSW and partners must deliver 6.5% growth p.a

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Actual Overnight Visitor Expenditure ($ Billions)

Overnight Visitor Economy Expenditure in New South Wales

Actual, Forecast, Target and Trend to 2020

$18.3b $36.7b $24b

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$12.7b

Source: Tourism Forecasting Council

• Promoting to Key Markets – Domestic and International
• Developing New Market Initiatives - Innovation
• Redefining Our Events Strategy – Event Genre, Seasonality, ROI
• Growing Our Industry Partnerships and Distribution Channels
• Reinventing The Way We Operate and Engage with Industry
• Utilising New Technologies
• Focusing on The Right Customer
• Implementing the Visitor Economy Taskforce (VET) Recommendations

How Are We Going to Achieve That?

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NSW Visitor Economy Taskforce

• The Visitor Economy Taskforce was established by the NSW Government to

develop a tourism and events strategy to double overnight visitor expenditure by 2020

• Members of the Visitor Economy Taskforce:
• Russell Balding, AO – Chairman
• The Hon. Bruce Baird, AM
• John King, OAM
• Sandra Chipchase (CEO, Destination NSW)
• 14 Advisory Group Chairs
• A Visitor Economy strategy is broader and more comprehensive than a

traditional tourism and/or events industry strategy

• The Taskforce is consulting widely with stakeholders

Workshop Consultation Approach:

Identifying factors to achieve growth

Brand Promotions Target Markets Consumer Trends Distribution Cooperative Partnerships

Demand Side

Transport Access Infrastructure & Product Development Visitor Experience Delivery Investment Attraction Events Destination Planning & Management Industry Development

Supply Side Overarching Factors

Innovation Skills, Training & Labour Sustainability

Local and Regional Factors

Key challenges, opportunities and strategies

Visitor Economy Taskforce Timeline DATE

21 October 2011 Online consultation opened 15 November 2011 Consultation workshops commenced 30 November 2011 Online consultation closes and submissions due December 2011 Advisory Group Chairs present to Taskforce End of February 2012 Interim Report due End of May 2012 Final Report due

Opportunities – Where Are They?

International

• China/India/Asia
• Sector Focus - VFR & Youth/Education, Events, Leisure, Business Delegations,

Conventions, Incentive Travel, Cruise Market

• Seasonal Campaigns – event driven

Domestic/Regional

• Sector Focus - Youth, Short Breaks, Families, Grey Nomads/Caravan and Camping
• Seasonal Campaigns – event driven
• New approach to the way we work and promote regions – no more logo soup

(consistent brand)

• Business Events – Conferences, Field Trips, Incentive Travel

Events

• Consolidate current list
• Build new ‘anchor’ events for Sydney and Regional NSW
• Align Event Acquisition and Development with our new Brands for Sydney and NSW
• Focus on events that deliver high ROI towards the 2020 goal

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International Visitor Trends

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International Visitor Trends – Annual

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500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ending September Visitors

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• 2%

+9%

• 3%

% change latest year

Australia + 1%

Source: TRA International Visitor Survey September 2011

NSW QLD VIC

International Visitor Trends - Annual

International Visitor Nights – Annual

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10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ending September Nights

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% change latest year

+5% +4% +3% Australia + 4%

Source: TRA International Visitor Survey September 2011

NSW QLD VIC

International Visitor Nights - Annual

Top Source Markets – Visitors to NSW

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50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Year Ending September

Source: TRA International Visitor Survey September 2011

New Zealand United Kingdom China USA Korea Japan

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2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Top Source Markets – Visitor Nights in NSW

Year Ending September

Source: TRA International Visitor Survey September 2011

China United Kingdom Korea New Zealand USA India Japan

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200 400 600 800 1,000 1,200 1,400 2005 2006 2007 2008 2009 2010 2011 $ Millions

Top Source Markets – Expenditure in NSW

Year Ending September

Source: TRA International Visitor Survey September 2011

China United Kingdom Korea New Zealand USA India Japan

Youth market NIGHTS

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2005 2006 2007 2008 2009 2010 2011

Nights (thousands)

NSW VIC QLD

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41.3 million nights 23 million nights 23 million nights

+4%

61% of all international nights to NSW – come from Youth Market

Source: IVS YE 2011

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84% 82% 84% 85% 88% 90% 92% 92% 92% 93% 95% 16% 19% 16% 15% 12% 10% 9% 9% 8% 7% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

All Markets to NSW Singapore Thailand Taiwan Malaysia China Indonesia Hong Kong Japan Korea India Sydney Regional NSW

Eastern Markets - Dispersal

Visitor Nights Spent in Sydney in Regional NSW

Source: International Visitor Survey

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84% 68% 71% 72% 75% 75% 75% 75% 75% 81% 82% 85% 16% 32% 30% 28% 25% 25% 25% 25% 25% 19% 18% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total markets to NSW Netherlands Switzerland Canada Germany New Zealand USA Scandinavia United Kingdom France Ireland Italy Sydney Regional NSW

Western Markets - Dispersal

Visitor Nights Spent in Sydney

Source: International Visitor Survey

in Regional NSW

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51,242 23,574 24,066 27,388 26,983 29,272 29,907 170,423 83,862 72,031 66,283 55,737

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000

Byron Bay Newcastle Blue Mountains Coffs Harbour Port Macquarie Wollongong Port Stevens Shoalhaven Bega Valley Eurobodalla Tweed Gosford

International Overnight Visitors to Regional NSW

Top Destinations in Regional NSW (Where International Visitors Stay Overnight)

Source: International Visitor Survey

Domestic Market Trends

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Domestic Visitor Trends – Annual

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5,000 10,000 15,000 20,000 25,000 30,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ending September Visitors

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+3% +6% +6%

% change latest year

Australia +4%

Source: TRA International Visitor Survey September 2011

NSW QLD VIC

Domestic Visitor Nights – Annual

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10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ending September Nights

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% change latest year

2% +2%

• 2%

Australia + 1%

Source: TRA International Visitor Survey September 2011

NSW QLD VIC

International and Domestic Opportunities

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Partnerships

• Incorporate NSW destination messaging and images into partner

campaigns and promotions

• Build on partnerships with Tourism Australia + other States
• Partnerships with Tourism Industry (campaigns)
• Business Events Sydney
• Airline and rail partnerships crucial

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Market Focus

• Asian Markets - present significant opportunities but we

still need to defend share in large volume traditional markets

• Singapore/Malaysia growth via new Low Cost Carriers
• More resources for Greater China
• Capitalise On Youth Segment Opportunities
• Event Packaging Opportunities

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Channels to Market

• Publicity/Promotions and Digital
• Outstanding Visuals/Content - invest in materials that can be

shared globally with partners

• “Making it Easy” – more focus on sample itineraries, on-line,

searchable product, link events & tourism into value packages

• Media visits and industry famils

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Dispersal

• Capitalise on Sydney’s high appeal and entice travellers

to products and experiences beyond the city

• Picking ‘winners’ – destinations and experiences
• Better understanding of visitor preferences
• Helping regional operators understand international

markets and customer servicing levels required

• Best prospects for Regional NSW are those that have

time to wander and explore : youth and retirees

• Cruise – pre and post touring

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Building Industry Capability

• Assisting industry to adapt to changing conditions and

facilitate business opportunities

• Educate the industry on:
• New markets and visitor needs – particularly China
• Educate the industry on digital marketing/e-business

Opportunities

• Developing Aboriginal tourism products & experiences
• Missions to Markets & Trade Servicing

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Visitor Servicing

• It’s all about content
• Helping visitors to find and connect to visitor experiences -

make it easy for them to do more, spend more and perhaps even stay longer!

• Using new technology
• Foreign language information and signage
• Providing ‘trusted source’ information on tourism products,

i.e. The Official Guide

• Partnership with Sydney Airport

The China Opportunity

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Fast Facts – China Visitors to NSW

• In 2011, around 300,000 Chinese visitors to NSW who spent 10.7 million

nights in NSW

• NSW attracts more Chinese visitors than any other Australian state;

(NSW 59%, VIC 52%, QLD 41%)

• Chinese visitors are the largest contributor to visitor expenditure in NSW
• Each Chinese visitor spends on avg $4,098 in NSW, $3,019 in VIC and

$2,026 in QLD

• 57% of Chinese visitors are in NSW for a holiday. These holiday visitors stay
• n average 4.6 nights in NSW
• Only 15% of Chinese visitors to NSW are here to study, however due to their

long length of stay they make up 66% of nights in NSW

• 97% of Chinese visitors to NSW visit Sydney. The South Coast and Hunter

are popular for overnight trips and the Blue Mountains is a popular destination for day trips

• 39% of Chinese visitors to NSW are on group tours.

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DNSW China Engagement

• Destination NSW established an office in Shanghai in 2010 (co-located with

NSW Trade and Investment).

• NSW has been active in the China market for 11 years (previously servicing

the market from its Hong Kong base).

• Destination NSW conducts extensive trade familiarisation and education

programs for Chinese travel buyers.

• Destination NSW’s Greater China Mission (February/March 2012) had 26

NSW product suppliers.

• Destination NSW is also the first Australian STO to capitalise on Chinese

interest in golf with a 146 page Golf Guide Book, in Mandarin, covering 19 major courses in and around Sydney.

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DNSW China Engagement (Cont.)

• In December 2011 DNSW launched a $1.6m campaign with partners China

Southern Airlines and Tourism Australia to promote Sydney & NSW to consumers.

• Destination NSW facilitated the Sydney Festival sponsorship by China Southern
• Sydney will feature as a ‘must visit destination’ in the February edition of China

Eastern Airlines’ in-flight magazine.

• Destination NSW is also running a joint marketing campaign with China-based

tour operator, Shanghai Bus Tours, promoting the Legendary Pacific Coast touring route. Depending on the itinerary, the group tour includes overnight stops in either Coffs Harbour, Port Macquarie, Port Stephens and The Hunter.

• Since July 2010, Destination NSW has also hosted 137 Mainland Chinese travel

agents and familiarisation visits. In addition, over 60 Mainland Chinese travel agents undertook either pre or post ATE familiarisation visits

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Self Drive

• NSW was the first western destination to develop and promote self drive

packages and subsequently published two self drive publications – Sydney and Surrounds and Sydney Brisbane Legendary Pacific Coast. Ctrip

• Sydney was the first destination outside mainland China and Hong Kong to be

promoted and sold by CTrip – China’s largest online hotel booking and travel agency. Events

• Out of the Hong Kong market, Destination NSW has partnered with Virgin

Atlantic and Opera Australia to promote the Handa Opera on Sydney Harbour event which opens in March 2012, and The Sydney Royal Easter Show

• Destination NSW is also working with The Parker Collection to package and

promote Vivid Sydney 2012 via their network of travel trade partners and social media channels across China.

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DNSW China Engagement (Cont.)

Case Study South Coast

CREATIVE

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CREATIVE

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CREATIVE

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Digital Marketing Challenges, Trends and Opportunities

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DNSW Digital Universe

• Websites
• Sydney.com and Visitnsw.com delivered 7 million visits and 2.2m leads

to industry as at 30 June 2011.

• NSWEvents.com and Vividsydney.com delivered 740,000 visits and

91,000 leads to industry as at 30 June 2011.

• Social Channels
• Sydney & NSW Social Channels delivered 300,000 fans and followers.
• Events Social Channels - a social reach of 18,000 fans and followers.
• Downloads
• Destination Holiday Planners downloaded over 15,000 times per month.
• iPhone and iPad apps downloaded over 30,000 times per year
• Newsletters
• Escapes Consumer Newsletter - 150,000 subscribers
• ATDW (Australian Tourism Data Warehouse)
• 8,500+ tourism products and 1,100+ events in Sydney and NSW

Challenges – Destination Marketing Landscape is Rapidly Changing

Media spend and media consumption habits are changing

Channel 2010 $m 2011 $m % Change Cinema 45.6 41.5

• 5%

Digital 672.6 810.9 20% Magazines 442 407

• 8%

Newspapers 3,284 1,195

• 7%

Outdoor 24.1 26.3 9% Radio 541 566 2% Television 478 486 2% Other 3,426 3,382

• 1%

TOTAL 6,914 6,917 0%

Source: Mediacom 2011 November Market Report

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Trends – Mobile

• Google predicts that 8% of mobile users will be booking travel from their

smartphones by 2012

• 60% of mobile consumers are looking for hotel reservations for the

night or the next night

• Marketers need to understand terms like SEO, mobile sites, geo-location

and social marketing to understand how to connect with new types of consumers

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Source: Digital Buzz 2011: Mobile Statistics, Stats & Facts 2011

Trends – Technology

• Near Field Communication (Touch & Pay)
• Mobile Internet will take over desktop internet usage
• Augmented Reality – (Opera Australia)
• Internet enabled TVs
• Digital advertising spend will be more than for TV
• Issue - Most NSW Product is not on DNSW’s NSW Connect –

Get Connected - It’s Free!!

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Source: phd – Beyond the Horizon 2016

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WHAT IS NOT NEW:

Individuals tagging themselves in photos on Facebook.

WHAT IS NEW:

• Tourism operators taking professional photos of young

people having fun in Sydney & NSW and asking permission to tag them in photos promoted on the young person’s AND the Operator’s Facebook page. WHAT ARE THE BENEFITS FOR TOURISM:

• Improved quality and number of fun and active images
• f young people enjoying Sydney & NSW.
• Improved engagement between tourism operators and

their customers.

• Increased social interaction, social reach and global

promotion via Facebook phototagging.

• Improved opportunity for friends of the holidaymakers

to see the photo, want the experience and contact the

• perator quickly and directly.
• Development of a methodology and platform that can

be used for all tourism operators in Sydney & NSW.

• It is a first for tourism in NSW (possibly Australia).

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Facebook Photo Tagging – Unique Benefits

• Leverage and optimise the ROI from the DNSW portfolio of new & existing

event assets.

• Generate additional overnight visitor expenditure via key Intrastate,

Interstate & Overseas source markets to meet the NSW Government 2020 target.

• Integrate the DNSW tourism / events marketing budgets and better

leverage the resources of event partners to build brand equity.

• Add value to the NSW Event Calendar by utilising DNSW’s resources to

provide integrated and high quality marketing strategy intelligence to all stakeholders.

DNSW Event Marketing Key Objectives

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Case Study: It’s ON! Events-led Campaign

It’s ON! integrated into the NRL 2011 Grand Final Week TVC campaign It’s ON! in Newcastle and the Hunter March 2012 campaign

Opportunities Regional NSW

• Focus on marketing “experience”:

» Beaches

• Surfest, Kellogs Ironman

» Outback

• Deni Ute Muster, Tamworth CMF

» Action & Adventure - Port Macquarie Ironman, Bathurst 12 hour » Food & Wine - FOOD Week, 100 Mile Challenge, CMC/Hunter » Festivals

• Bluesfest, Parkes Elvis
• Use events to profile and market these experiences year round (through Short

Breaks message)

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1. State Government Focus and Commitment 2. DNSW - New Agency – “One Stop Shop” 3. Focus on Key Strengths/USPs – Stop Trying To Be All Things To All People 4. NSW - Most Geographically Diverse, Exciting and Beautiful State in Australia

NSW Can And Will Be The Leader! NSW - Our Opportunity

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Thank you