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Figures reveal the nitty-gritty of Aussie tourism value

April 11, 2018 Headline News No Comments Email Email

Tourism Research Australia (TRA) forecasts and figures released at the end of last week have a lot to say about the tourism contribution, and market share, of Australia’s states and territories.

Over the 10-year period from 2006-07 to 2016-17, the contribution – and thus relative importance – of international tourism to total consumption increased in the following states and territories:

  • Victoria – 31%, up from 23%.
  • New South Wales – 32%, up from 27%.
  • Australian Capital Territory – 22%, up from 16%.
  • South Australia – 19%, up from 14%.
  • Tasmania – 17%, up from 15%.

For all others states and territories, the share of consumption attributable to international tourism fell or remained unchanged between 2006–07 and 2016–17, namely:

  • Queensland – remained unchanged at 24%.
  • Northern Territory – 24%, down from 29%.
  • Western Australia – 22%, down from 23%.

Over the 10-year period from 2006-07 to 2016-17, some Australian states increased their share of national tourism employment.

Consumption Expenditure By Visitor Type, 2016–17

According to the State Tourism Satellite Accounts, newly released by Tourism Research Australia, the states that increased their share of national tourism employment over this period were:

  • Victoria – growing from a 21% to 24% share, as direct employment increased from 110,000 to 144,000 workers.
  • Western Australia – growing from a 11% to 12% share, as employment increased from 57,000 to 71,000 workers.

Meanwhile, Queensland decreased its share of national tourism employment slightly over the same period, (25% to 24%) as direct employment fell from 139,000 to 138,000 workers.

States and territories that maintained their share of national tourism employment over the same period were:

  • New South Wales – a 29% share, while employment grew from 156,000 to 171,000 workers.
  • South Australia – a 6% share, while employment grew from 32,000 to 36,000 workers.
  • Tasmania – a 3% share, while employment grew from 17,000 to 19,000 workers.
  • Australian Capital Territory – a 2% share, while employment grew from 9,000 to 11,000 workers.
  • Northern Territory – a 2% share, while employment declined from 11,000 to 9,000 workers.

Tourism Research Australia (TRA) forecasts show that international arrivals will likely grow by 6.9% in 2017-18, and by 64% in 2026-27 compared to 2017-18. Domestic travel is forecast to grow by 24% (overnight visitors) and 29% (day visitors) over the period 2017-18 to 2026-27.

Tourism Research Australia notes that Australia is well placed geographically to take advantage of the growth of Asian middle-class populations, which are expected to increase fivefold over the next 20 years.

“The global tourism market is, however, highly competitive, with more than 190 national tourism organisations competing for international visitors. Activity within the industry is also highly vulnerable to international events, economic uncertainties and levels of traveller risk – both real and perceived. Nevertheless, with its economic and political stability, Australia is able to provide a safe and secure environment for investors, operators and travellers.

“To ensure that Australia continues to remain an attractive destination for overseas visitors, and to keep pace with forecast increases in demand, continued (and greater) investment in hotels, infrastructure, attractions and training is needed.

“For this reason, the Australian Government – together with industry – implemented a strategy to grow the industry, Tourism 2020, and is currently developing a new strategy to plan for sustainable growth beyond 2020.”

Although domestic consumption outweighs international consumption by almost three-to-one, the average international visitor consumed AUD 4347 in 2016-17, 1.2% lower than the previous year. This was 12 times more than domestic travellers (AUD 349, 2.9% higher than the previous year).

For every dollar spent by international visitors, 15 cents was spent on accommodation, 16 cents on long-distance transport, 13 cents on shopping and 12 cents on takeaway and restaurant meals.

You can download the State Tourism Satellite Accounts from Tourism Research Australia website here.

Written by Peter Needham

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