International update Phillipa Harrison Executive General Manager International

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1 International update Phillipa Harrison Executive General Manager International

2 Agenda 1. Markets 2. Performance 3. Distribution Development 4. International Insights & Activity

3 OUR FOCUS - MARKETS

4 Number of Arrivals 1,400,000 1,200,000 1,000, , , ,000 +2% +10% +14% +3% INTERNATIONAL VISITORS TO AUSTRALIA YEAR END June 2017 Source: Australian Bureau of Statistics +3% +13% +13% +13% +15% +10% +8% +22% +14% +4% VISITORS up 9% to 8.5m 200,000 +4% Spend (A$ billion) $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $ NZ CN US UK SG JP MY KR IN HK GE ID CA FR IT +10% +4% 8% +0% EXPENDITURE BY VISITORS YEAR END June 2017 Source: International Visitor Survey, Tourism Research Australia +15% +0% +1% +30% +11% +10% +1% Spend up 7% to $40.6BN 9% +2% +0% 1% CN US UK NZ JP KR SG IN MY HK GE CA ID FR IT

5 DISTRIBUTION Development CONNECT FOR BUSINESS EDUCATION EXPERIENCE PARTNER MARKETING Events e.g. ATE Decision Makers Aussie Specialists Frontline Travel Sellers Training Famils Aussie Specialists Key Distribution Partners (KDPs)

6 Key Distribution Partners 160+ globally Work with KDPs committed to selling quality Australian product and experiences to drive conversion in all markets

7 Aussie Specialist Program Global e-learning platform free and available to any frontline travel seller Established 28 years ago relaunched 2 years ago 11 languages 18 websites ASP Trainers 22 globally Run in partnership with the STOs

8 - 30,000 Qualified globally Up 76% since launch 47,000 Registered globally 99% Aussie specialists satisfaction 72,000 trained face to face 150,000 Modules completed Program Performance since relaunch 2015

9 98% Aussie specialists satisfaction 54% Had never visit Australia before 99% Seller Satisfaction 86% of Sellers will attend in future

10

11 International Insights & Activity

12 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun Changing dynamic of Australian tourism TRIPS TO AUSTRALIA EXPENDITURE IN AUSTRALIA 12 NZ China 10 China 8 USA UK Singapore Japan Malaysia Sth Korea India Germany Indonesia USA UK NZ Japan Sth Korea Singapore Malaysia India Germany Indonesia Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17

13 FROM A$3bn in o/night spend NOW A$9.8bn in o/night spend June 2017 YE TO AS MUCH AS $13bn CHINA - Insights In o/night spend by Record 1.3 million PLUS visitors, +11% - 51 million visitor nights, +24% - average trip spend of $8k plus

14 CHINA AVIATION LANDSCAPE Direct Flights between China and Australia as of 30 June 2016 Direct Flights between China and Australia as of 30 Sept 2017 NANJING CHENGDU WUHAN CHONGQING GUANGZHOU Air China China Eastern Airlines China Southern Airlines BEIJING SHENZHEN SHANGHAI FUZHOU XIAMEN Air China China Eastern Airlines BEIJING ZHENGZHOU QINGDAO XI AN NANJING CHONG WUHAN SHANGHAI QING CHENGDU HANGZHOU CHANGSHA FUZHOU KUNMING XIAMEN GUANGZHOU SHENZHEN China Southern Airlines HAIKOU Sichuan Airlines Xiamen Airlines Qantas Airways Jetstar PERTH CAIRNS BRISBANE GOLD COAST SYDNEY MELBOURNE Sichuan Airlines Xiamen Airlines Qantas Airways Beijing Capital Airlines Hainan Airlines Tianjin Airlines PERTH ADELAIDE CAIRNS BRISBANE SYDNEY MELBOURNE Jetstar

15 experiences World class nature, food & wine, aquatic & coastal CHINA - Insights 80% of travellers are Free and Independent (FIT) Two-thirds of travellers are <35 YEARS OLD 84% share travel on social 100m+travelers Chinese consumers travel overseas, expected to double by 2030

16 CHINA Wechat 950m Active Wechat users 500,000 followers Tourism Australia official account Wechat moments partner campaigns City Experience - Sydney Pilot Launched November 2017

17 - Record 763K visitors, +11% Million nights, +7% - average trip spend of $5k plus FROM A$2.5Bn in o/night spend USA - Insights NOW A$3.7bn in o/night spend June 2017 YE TO AS MUCH AS $4.5bn in o/night spend by 2020

18 North America AVIATION LANDSCAPE 125 weekly direct non stop flights from North America 54 single connections per week via New Zealand 130 single connections per week from East Coast via the Middle East 125 single connections per week from east coast via Asia Source : OAG Connections, data for week of 5 June 2017 as at 2 May 2017 *Five hours maximum connecting time at transit point, and for connections on same carrier.

19 experiences World class nature, UNIQUE WILDLIFE, aquatic & coastal USA - Insights Significant Opportunity Australia ranks #5 for aspiration & Intention but #25 for visitation 20% CONSIDERING TRAVEL TO AUSTRALIA IN THE NEXT Four YEARS 21% OF us VISITORS ARE FROM CALIFORNIA

20 USA Activity Virgin Australia

21 India NOW A$1.4bn in o/night spend JUNE 2017 YE TO AS MUCH AS $1.9bn in o/night spend by Record 286K visitors, +15% million visitor nights, +4% - average trip spend of $5k plus - Sydney Melbourne-Gold Coast

22 INDIA Insights 300 MILLION + Aspirational middle class that will drive economy Affluent OUR TARGET CUSTOMERS ARE amongst the wealthy Late booking and price Sensitive Significant length of stay 29 nights (Median)

23 India Activity The Great Australian Airfare Sale

24 For more information: 2017 Market profiles and International Market update

25 THANK YOU

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