International Tourism Snapshot

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1 International visitors to Australia International visits continue to grow Australia hosted a record number of international visitors in the year ending International visitor expenditure in Australia September 2017, recording 7.1% growth year on year to host 7.9m visitors 1 2 Avg stay from around the world. Visitor numbers grew in all of Australia s states and 8 1 Expenditure 3 territories except the Northern Territory. Queensland, New South Wales, Total Australia 7,871, % % Victoria, South Australia, ACT, and Tasmania all set new visitation records. Total Australia $28,338.5m 9.8% NZ 1,192, % % Holiday $9,938.8m 3.9% 4 Asia 3,865, % % Visitation grew from most of Australia's key source markets. Asian markets VFR $4,133.6m 7.5% 5 North America 841, % % led the way with overall visitation growth of 10.3%. The greatest rises in Business $2,013.8m 17.0% 6 Europe 818, % % Asian visitor numbers came from China, Japan, India and Hong Kong. North Employment $1,899.2m 0.8% UK 666, % % America had the next fastest growth, up 9.6%, with 60,000 more visitors Education $10,012.7m 17.8% Total holiday 4,421, % % NZ 499, % % Asia 2,260, % % North America 498, % % Europe 552, % % UK 400, % % 7 Total VFR 2,944, % % NZ 535, % % Asia 1,2, % % North America 292, % % Europe 302, % % UK 385, % % Total business 954,000.6% % NZ 212, % % Asia 392, % % North America 144, % % Europe 90, % % UK 63, % % Total education 612, % % NZ 25, % % Asia 424, % % North America 37, % % Europe 57, % % UK 14, % % from USA and 13,000 more from Canada. Visitation from European markets grew steadily, up by 5.0%. NZ visitation to Australia was stable (+0.3%) at 1.2m visitors. UK visitation was up by 1.0% to 666,000 visitors in the year ending September Consequently, international expenditure in Australia was up by $2.5bn to $28.3bn. China accounted for almost half (48%) of this expenditure growth, with an extra $1.2bn spent by Chinese visitors in the year ending September Total international expenditure grew slightly faster than visitation (9.8% vs. 7.1% respectively) as visitors spent slightly more per night. Expenditure per night was up by 3.0% to $106 per night while the average length of stay remained stable at 33.9 nights. Purpose of travel In the year ending September 2017, international visitation grew for all purposes of travel to Australia. Holiday was the most popular reason for travel and grew by 6.7% to 4.4m travellers. The next most popular reason was visiting friends and relatives (VFR) which grew by 7.2% to 2.9m visitors. The business and education markets are both smaller in terms of visitor numbers, but recorded the fastest year on year growth. Business travel was up by.6% to 954,000 visitors and education was up by 14.4% to 612,000 visitors. When we look at expenditure by travel purpose, we see several interesting points. Education expenditure was the biggest driver of growth, and overtook holiday expenditure, with 17.8% growth to $10.0bn. Meanwhile, holiday expenditure grew steadily, up by 3.9%, to almost $10bn. Business expenditure grew strongly, up by 17.0% to $2.0bn, and VFR expenditure grew by 7.5% to $4.1bn. The growth in education expenditure was driven almost entirely by the Eastern markets. Education expenditure grew by 22.3% in the Eastern markets compared to a decline of 4.5% among the Western markets. China alone accounted for $912m of the extra $1.5bn in education expenditure growth in the year ending September This amount represented 75% of China's expenditure growth in Australia. 9.0m 8.0m 7.0m 6.0m 5.0m 4.0m 3.0m 2.0m 1.0m International visitors to Australia 7.9m.0m Year ending September Page 1 /news-and-media/contacting-teq/enewsletters

2 State expenditure comparison Expenditure Share of expenditure visitor Total Australia $28,338.5m 9.8% 100% $3,547.9 Queensland $5,283.4m 2.5% 18.6% $2,001.6 New South Wales $10,429.1m.9% 36.8% $2,489.5 Victoria $7,637.9m 13.3% 27.0% $2,707.2 State visitation comparison Avg stay # Total Australia 7,871, % Queensland 2,628, % New South Wales 4,095, % Victoria 2,815, % Other States 1,906, % Total holiday 4,421, % Queensland 1,831, % New South Wales 2,399, % Victoria 1,537, % Other States 1,075, % Total VFR 2,944, % Queensland 630, % New South Wales 1,095,000.6% Victoria 888, % Other States 647, % Total business 954,000.6% Queensland 177, % New South Wales 453, % Victoria 309, % Other States 188, % Total education 612, % Queensland 5, % New South Wales 227, % Victoria 185, % Other States 103, % Page 2 States set the record straight International visitation to Australia grew strongly in the year ending September 2017, with all but two states (WA and NT) reaching record visitation levels. Queensland welcomed a record 2.6m visitors, with year on year growth of 3.0%. New South Wales and Victoria were strong drivers of visitation growth, up by 8.9% and 7.0% respectively to record high visitor numbers. These three states also recorded growth, and record highs, in total visitor expenditure. The star performers out of Queensland's top five visitor markets were NZ and Japan. The NZ market grew by 4.5% while Japan grew by 4.7%. Visitation for the remaining top five markets was relatively stable. China and USA were stable (+0.5% and +0.8% respectively) while the UK declined slightly by 1.0%. Japan is experiencing a revival and is now Queensland s third largest market in terms of expenditure, up from fifth largest in the year ending September Holiday visitation in Australia also grew to a record high, up by 6.7% to 4.4m visitors. New South Wales and Victoria saw record high levels of holiday visitation, up by 8.1% and 5.4% respectively. In Queensland, holiday travel also reached a record high of 1.8m visitors, up by 2.9%. Two in five (41.4%) holiday visitors to Australia included Queensland in their itinerary. These visitors delivered the state a 27.8% share of international holiday expenditure. The strong growth in education visitation to Australia was primarily driven by double-digit growth in the three largest states, i.e. Queensland, New South Wales, and Victoria. Education visitation to Queensland specifically was up by 18.1% to a record 5,000 visitors. Cyclone Debbie Tropical Cyclone Debbie hit Queensland in late March 2017 and interrupted the operation of many tourism businesses. This may be contributing to Queensland having more modest growth compared with the national growth rates in holiday visitation, total visitation, holiday expenditure and total expenditure. In particular, holiday expenditure was subdued with a slight decrease of 1.8% to $2.8bn in the year ending September % -1.0% 1.9% in visitors from key markets, by state Queensland New South Wales Victoria 13.1% 5.7% 0.5% 0.8% 9.6% 9.4% -1.0% 7.7% 1.7% 4.7% 10.6% NZ China USA UK Japan 9.8% in visitor expenditure, by state 2.5%.9% 13.3% Australia Queensland New South Wales Victoria 32.2% /news-and-media/contacting-teq/enewsletters

3 Queensland steady growth International visitors to Queensland International visitation to Queensland grew by 3.0% to a record 2.6m # visitors in the year ending September These visitors spent a record International expenditure in Queensland Avg stay $5.3bn in the state in the same period, which is up by 2.5%. Expenditure Total Queensland 2,628, % Total Queensland $5,283.4m 2.5% NZ 454, % In the year ending September 2017, a record high 1.8m holiday travellers Holiday $2,766.5m -1.8% Asia 1,173, % visited the state. These visitors accounted for 69.7% of Queensland VFR $636.6m 7.1% visitation. North America 284, % Business $237.2m 5.5% Europe 320, % Visitation for all other purposes of travel, except employment, grew Employment $267.8m -0.3% UK 225, % strongly in Queensland. VFR travel grew by 7.7% to a record 630,000 Education $1,313.2m 9.5% visitors, business travel grew by 7.1% to 177,000 visitors, and education visitation was up by 18.1% to a record 5,000 visitors. Holiday 1,831, % NZ 235, % Asia 884, % North America 203, % Europe 260, % UK 164, % VFR 630, % NZ 194, % Asia 178, % North America 59, % Europe 63, % UK 81, % Business 177, % NZ 43, % Asia 64, % North America 25, % Europe 15, % UK 14, % Education 5, % NZ 6, % Asia 67, % North America 9, % Europe 16, % UK 3, % Queensland enjoyed record-high levels of visitation from a number of international markets. China, Hong Kong, and India reached record highs in total visitation and total expenditure. The State also welcomed a record number of visitors from Germany. Below, we deep dive into several markets of note. India, Germany, and Hong Kong set records International visitation from India grew strongly to record highs in holiday and total visitation, up by 26.7% and 18.3% respectively. Visitor expenditure also grew to a record high, with 50.1% growth to $144.9m in the year ending September India is now Queensland's tenth largest market by expenditure, up from fourteenth a year ago. German visitation grew strongly to reach record highs in total and holiday visitation, up by 6.0% and 9.7% respectively. Expenditure by German visitors also grew, up by 10.0% to $191.6m. The Hong Kong market grew steadily, up by 4.5%, to reach a record high 66,000 visitors in the year ending September Visitor expenditure grew much faster; it was up by 24.2% to reach a record high of $182.7m. The strong growth in expenditure was mostly driven by Hong Kong visitors spending 22% more per night than they did in the same period a year ago. Japan on the rise The Japanese market continued to perform strongly. Expenditure from Japan has recorded double-digit growth year on year for the last six quarterly rolling annual releases. In the year ending September 2017, expenditure grew by.2% to $422.5m which boosted Japan up the market ranks to third place in terms of expenditure, up from fifth place in the same period a year ago. 3.0m 2.5m 2.0m 1.5m 1.0m.5m International visitors to Queensland 2.6m.0m Year ending September China number one China is Queensland s largest visitor market, with the state welcoming a record 488,000 visitors who spent a record $1.1bn in the year ending September It is worth noting that expenditure from education visitors was up 13.9% year on year, directly contributing $397m to the total expenditure of $1.1bn. Page 3 /news-and-media/contacting-teq/enewsletters

4 International visitors by region Avg stay Holiday visitors Total Queensland 2,628, % ,831, % Brisbane 1,237, % , % Gold Coast 1,056, % , % Sunshine Coast 294, % , % Fraser Coast 151, % ,000.2% 9 SGBR 157, % , % Whitsundays 247, % , % Townsville 138, % 9.9 3, % TNQ 890, % , % Trend Avg stay Holiday visitors Trend 10 SQC 46, % ,000.3% Mackay 50, % , % Outback 27, % , % Expenditure in Queensland regions Expenditure visitor night Total Queensland $5,283.4m 2.5% $2,001.6 $98.6 Brisbane $2,199.6m.2% $1,766.3 $85.5 Gold Coast $1,224.3m -4.1% $1,156.1 $125.4 Sunshine Coast $235.6m -.9% $800.2 $74.8 Fraser Coast $32.8m -19.7% $218.0 $ SGBR $92.7m -8.4% $537.2 $34.2 Whitsundays $197.1m -6.3% $796.9 $152.6 Townsville $2.7m 23.7% $818.3 $82.5 TNQ $1,085.5m -1.3% $1,219.4 $168.7 Expenditure Trend visitor night 10 SQC $61.3m -3.1% $1,320.0 $44.7 Mackay n/p n/p n/p n/p Outback $18.3m 1.5% $678.0 $31.8 Brisbane International visitation to Brisbane grew by 4.6%, with the region welcoming a record 1.2m visitors in the year ending September Visitation grew for all purposes of travel, except for employment. The largest increases came from the holiday and VFR markets; holiday and VFR were at record highs of 669,000 and 353,000 visitors respectively. International visitors spent slightly more per night which helped to drive regional expenditure to a record high, up by.2% to $2.2bn. Visitation from China, the largest market, was stable while NZ, the second largest market, grew by 6.4%. Visitation from Taiwan grew strongly, up by 25.9%. Gold Coast The Gold Coast region welcomed a record 1.1m visitors, up by 4.2%. The Gold Coast was the most popular holiday destination in Queensland for international visitors, with holiday visitation at a record high of 843,000 (up 4.5%). Visitation grew among the Gold Coast s top four markets: China, NZ, UK, and Japan. Of these, Japan saw the fastest growth, up by 23.4%. Overall, visitor nights in the region declined slightly which is largely due to visitors shortening their stay by 1.3 nights on average; this shorter average length of stay (ALoS) negated the impact of visitation growth. This also impacted on expenditure which declined year on year (down 4.1% to $1.2bn). Tropical North Queensland (TNQ) International visitation to TNQ grew by 1.5% to 890,000 in the year ending September This growth was driven by the holiday market which was up by 1.9% to 830,000 visitors. TNQ is the state's second most popular holiday destination for international visitors. China remains the largest source market, with stable visitation in the year ending September Visitation growth primarily came from the European markets, including the UK. Overall, visitor nights and expenditure both declined slightly. Nights declined by 2.7% to 6.4m, as the ALoS shortened slightly, and expenditure declined by 1.3% to $1.1bn. Fraser Coast The Fraser Coast welcomed 151,000 international visitors in the year ending September This was up by 10.7% year on year. This visitation growth boosted nights by 12.0% to 736,000. The majority (93.7%) of visitors were holidaymakers, whose numbers grew by.2% to 141,000. The region's two largest source markets were the UK and Germany, contributing 33,000 and 31,000 visitors respectively. Sunshine Coast International visitation to the Sunshine Coast grew by 8.2% to 294,000 in the year ending September This overall growth was driven by holiday visitation, with 6.5% growth to 229,000 visitors. Expenditure growth was more subdued (down.9%) as holidaymakers shortened their stays by 1.3 nights and both holiday and VFR travellers spent less. Germany, the region s third largest source market, was a star performer with growth of 24.2% to 39,000 visitors. The shortening of stays may be due, in part, to the impact of Tropical Cyclone Debbie which hit the region in late March 2017 and interrupted the operation of many tourism businesses. Whitsundays International visitation to the Whitsundays increased by 8.2% in the year ending September 2017, with holiday growth of 7.9% to 238,000. The Whitsundays recorded double-digit growth from four of its top five markets, they were the UK, Germany, China, and Scandinavia. Despite this, overnight visitor expenditure decreased by 6.3% to $197.1m as visitors spent fewer nights in the region, down by 14.6% to 1.3m nights. These declines may be due, in part, to the impact of Tropical Cyclone Debbie which hit the region in late March 2017 and interrupted the operation of many tourism businesses. Townsville The Townsville region recorded growth in international visitation, up by 10.5% to 138,000, in the year ending September Holiday travel to the region drove overall growth with a 17.1% increase to 3,000 visitors. VFR travel declined by 14.2% to 15,000. The VFR decline contributed to a 15.8% decline in total nights. Despite the overall decline in nights, international expenditure grew strongly, by 23.7% to $2.7m, as visitors spent on average $26 more per night. The UK, Germany and USA remained the region s largest source markets. Page 4 /news-and-media/contacting-teq/enewsletters

5 Southern Great Barrier Reef (SGBR) International visitation to SGBR increased by 18.3% in the year ending September 2017, driven by growth in visitation from three of SGBR's top four markets: they are the UK, Germany and the US. Holiday visitors contributed the most to visitor growth with a 16.1% increase to 120,000 visitors. While visitor nights grew by 22.7% to 2.7m, the average length of stay for holiday and business travellers declined by 1.2 nights and 6.2 nights respectively. This may have contributed to a decline in overnight visitor expenditure to the region (down 8.4% to $92.7m). The shortening of stays may be due, in part, to the impact of Tropical Cyclone Debbie which hit the region in late March 2017 and interrupted the operation of many tourism businesses. Southern Queensland Country (SQC) Mackay The Mackay region recorded 3.5% growth in visitation for the three years ending September 2017, welcoming 50,000 visitors. Holiday travel drove visitation growth, up by 8.0% to 37,000 (three-year trend). Germany remained the largest source market, with a 19.6% increase to 9,000 visitors over the same period. Over the past three years, the average length of stay has shortened among both holiday and VFR visitors, and this contributed to a 13.8% decline in total visitor nights. Outback International visitors by region and source market In the three years ending September 2017, SQC saw 2.4% growth to 46,000 international visitors. The average length of stay by these visitors had a slight decline of 1.9% over the same period. This resulted in nights remaining stable (+0.3%) despite the growth in visitation. The overall visitation growth came primarily from the holiday market, and VFR visitation also increased. Looking at the region's source markets, SQC welcomed 14,000 visitors from Europe (incl the UK) and,000 from Asia. Outback Queensland welcomed 27,000 international visitors. This was slightly down (-2.9%) over the three years ending September Outback Queensland welcomed 12,000 visitors from its largest source market, Europe (including the UK), which accounts for four in ten international visitors to the region. While visitation was down slightly, expenditure increased by 1.5% over the three years ending September China Europe (excl UK) Japan New Zealand North America United Kingdom Total Queensland 488, % 320, % 204, % 454, % 284, % 225, % 1 Brisbane 222, % 191, % 43, % 180, % 124, % 122, % 2 Gold Coast 305, % 94, % 69, % 203, % 54, % 71, % 3 Sunshine Coast n/p n/p 101, % n/p n/p 65, % 32, % 57, % 4 Fraser Coast n/p n/p 82, % n/p n/p n/p n/p 13, % 33, % 5 SGBR n/p n/p 65, % n/p n/p 14, % 18, % 28, % 6 Whitsundays 22, % 103, % 9, % n/p n/p 27, % 55,000.5% 7 Townsville n/p n/p 70, % n/p n/p n/p n/p 16, % 28, % 8 TNQ 218, % 167, % 109, % 42, % 130, % 96, % Trend Trend Trend Trend Trend Trend 9 SQC n/p n/p 10, % n/p n/p n/p n/p n/p n/p n/p n/p 10 Mackay n/p n/p 22, % n/p n/p n/p n/p n/p n/p n/p n/p Outback n/p n/p 9, % n/p n/p n/p n/p n/p n/p n/p n/p Page 5 /news-and-media/contacting-teq/enewsletters

6 Queensland Expenditure Expenditure New Zealand 454, % $582.1m -1.6% 1,192, % $1,732.0m -1.9% Total Asia 1,173, % $2,684.4m 3.5% 3,865, % $17,291.7m 15.0% China 488, % $1,077.9m 1.6% 1,216,000.7% $7,964.9m 18.1% Japan 204, % $422.5m.2% 394, % $1,084.1m 12.9% Singapore 57, % $128.1m -.9% 382, % $1,098.4m 2.0% Malaysia 44, % $107.7m -4.2% 354, % $1,091.3m 16.9% Korea 70, % $200.8m -18.6% 269, % $1,044.1m -8.7% India 71, % $144.9m 50.1% 269, % $1,021.5m 28.7% Hong Kong 66, % $182.7m 24.2% 249, % $1,038.0m 18.7% Indonesia 24, % $34.9m -34.8% 168, % $540.6m -4.2% Taiwan 74, % $229.2m.2% 159, % $698.0m 6.4% Thailand 18, % $51.6m 38.6% 90, % $380.0m 21.8% Other Asia 58, % $103.9m -4.6% 314, % $1,330.9m 37.0% North America 284, % $489.4m -9.1% 841, % $2,336.3m -1.2% USA 226, % $359.6m -8.1% 692, % $1,901.1m 2.3% Canada 58, % $129.7m -.6% 149, % $435.1m -13.9% Total Europe 545, % $1,0.7m 3.9% 1,484, % $5,213.4m 1.7% United Kingdom 225, % $422.2m -2.9% 666, % $2,078.3m -0.7% Germany 92, % $191.6m 10.0% 198, % $701.8m -3.3% France 43,000.5% $85.0m 38.5% 8, % $455.4m 12.8% Scandinavia 43, % $3.0m -3.6% 103, % $400.3m -1.1% Italy 24, % $64.7m 26.0% 71, % $359.7m 8.2% Switzerland 23, % $54.6m -8.5% 51, % $229.1m 5.1% Netherlands 20, % $41.2m 6.1% 52,000.6% $197.3m 9.3% Other Europe 77, % $138.5m 5.3% 225, % $791.7m 3.5% Other markets 172, % $416.8m 15.3% 488, % $1,765.2m 15.4% All markets 2,628, % $5,283.4m 2.5% 7,871, % $28,338.5m 9.8% Australia Notes: 1. refers to the percentage between the year covered by this snapshot compared to the year prior 2. Avg stay = average length of stay expressed in nights 3. Total includes those visitors classified as Other. Therefore, the sum of Holiday, VFR, Business and Education visitors may not equal to 'Total' 4. Asia includes Japan, China, Korea, Singapore, Malaysia, Hong Kong, India, Indonesia, Taiwan, Thailand and Other Asia 5. North America includes United States of America and Canada 6. Europe includes Germany, France, Scandinavia, Netherlands, Italy, Switzerland and Other Europe 7. Visiting friends or relatives (VFR) 8. All expenditure figures include package expenditure 9. SGBR - Southern Great Barrier Reef region is comprised of the Capricorn, Bundaberg and Gladstone regions 10. SQC - Southern Queensland Country region is comprised of Toowoomba, Southern and Western Downs regions. To stabilise some results, trend is used to average data over three years. Trend is the average over three years rather than a year on year comparison Other notes: Expenditure estimates should be used with caution "n/p" = not published for technical reasons For this publication data has been adjusted to conform to Tourism and Events Queensland s regional definitions, which may differ slightly from ABS Tourism Regions Strategic Research and Development Tourism and Events Queensland e. w. /research Data Source: International Visitor Survey (IVS), Tourism Research Australia. The information included in this report was extracted from the IVS conducted Tourism Research Australia (TRA). IVS information is collected by personal interviews with short-term international visitors to Australia in the departure lounges at eight Australian airports prior to departure. The IVS is weighted to total figures supplied by the Australian Bureau of Statistics Overseas Arrivals and Departures and does not include persons aged under 15 years. Disclaimer: By using this information you acknowledge that this information is provided by Tourism and Events Queensland (TEQ) to you without any responsibility on behalf of TEQ. You agree to release and indemnify TEQ for any loss or damage that you may suffer as a result of your reliance on this information. TEQ does not represent or warrant that this information is correct, complete or suitable for the purpose for which you wish to use it. The information is provided to you on the basis that the you will use your own skill and judgement and make your own enquiries to independently evaluate, assess and verify the information s correctness, completeness and usefulness to you before you rely on the information. Page 6 /news-and-media/contacting-teq/enewsletters

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