International update Trent Banfield International Operations & Aviation Development Manager

International update Trent Banfield International Operations & Aviation Development Manager

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

OUR FOCUS - MARKETS

Number of Arrivals 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 +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

International Trend for south Australia Source: International Visitor Survey, YE June 2017, Tourism Research Australia

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

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

Aussie Specialist Program Established 27 years ago Global platform (free and available to any frontline agent) Aavailable in 11 languages Shared platform All STOs

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

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

International Insights & Activity

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 1.6 1.2 0.8 0.4 0.0 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 6 4 2 0 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

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 2020 - Record 1.3 million PLUS visitors, +11% - 51 million visitor nights, +24% - average trip spend of $8k plus

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

CHINA AVIATION LANDSCAPE Direct Flights between China and Australia as of 2010 Direct Flights between China and Australia as of 30 Sept 2017 BEIJING BEIJING GUANGZHOU Air China China Eastern Airlines China Southern Airlines Qantas Airways SHANGHAI BRISBANE Air China China Eastern Airlines ZHENGZHOU QINGDAO XI AN NANJING CHONG WUHAN SHANGHAI QING CHENGDU HANGZHOU CHANGSHA FUZHOU KUNMING XIAMEN GUANGZHOU SHENZHEN China Southern Airlines Sichuan Airlines Xiamen Airlines Qantas Airways HAIKOU CAIRNS BRISBANE SYDNEY MELBOURNE Beijing Capital Airlines Hainan Airlines Tianjin Airlines PERTH ADELAIDE SYDNEY MELBOURNE Jetstar

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

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

CHINA UGC Campaign Your best shot Australia

- Record 763K visitors, +11% - 15.1 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

North America AVIATION LANDSCAPE 125 weekly direct non stop flights from North America SFO YVR JFK 54 single connections per week via New Zealand LAX DFW MIDDLE EAST 130 single connections per week from East Coast via the Middle East HNL ASIA 125 single connections per week from east coast via Asia MEL SYD BNE AKL 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.

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 Over 110 flights per week

USA Activity Virgin Australia

UK - insights FROM A$3.2Bn in o/night spend NOW A$3.5bn in o/night spend June 2017 YE TO AS MUCH AS $5.5bn in o/night spend by 2020-722K visitors, +2.3% - 24 million visitor nights, -3% - average trip spend of $5k plus

experiences food & wine, value for money aquatic & coastal UK - insights Median nights stayed 20 days Key travel period December to March 84% OF ALL VISITORS ARE HERE FOR LEISURE PURPOSES

UK Activity ashes Qantas partnership

UK Activity ashes guardian partnership

UK Activity ashes telegraph magazine

UK Activity Wild guide to Australia in partnership with Qantas Australian Wilderness with Ray Mears Up to 3m viewers per episode

For more information: 2017 Market profiles and International Market update www.tourism.australia.com

THANK YOU