TOURISM AUSTRALIA OVERVIEW LEIGH SORENSEN I GENERAL MANAGER, INDUSTRY RELATIONS

TOURISM AUSTRALIA OVERVIEW LEIGH SORENSEN I GENERAL MANAGER, INDUSTRY RELATIONS

TOURISM AUSTRALIA SENATOR THE HON SIMON BIRMINGHAM THE HON MARK COULTON MP

OUR VISION TO MAKE AUSTRALIA THE MOST DESIRABLE & MEMORABLE DESTINATION ON EARTH

INTERNATIONAL PERFORMANCE: DEMA ND NOW A$42.3BN IVS MARCH 2018 6% GROWTH IN SPEND CHINA INDIA FASTEST GROWING MAJOR MARKET #1 FOR INTERNATIONAL VISITOR SPEND TRENDS SHORTER STAY EXPERIENCE DRIVING TRAVEL INCREASING NEED FOR AUTHENTICITY

OUR KEY MARKETS

Number of Arrivals INTERNATIONAL VISITORS TO AUSTRALIA YEAR END JUNE 2018 RECORD 1,600,000 1,400,000 +13% +1% 9M 6% 1,200,000 1,000,000 800,000 +4% +2% 600,000 400,000 200,000-0.6% +3% -4% +20% +15% +5% +0% +2% +5% +4% -3% - CN NZ US UK SG JP MY IN HK KR GE ID CA FR IT Source: Australian Bureau of Statistics

Spend (A$ billion) EXPENDITURE BY INTERNATIONAL VISITORS YEAR END MARCH 2018 VISITOR SPEND HAS GROWN TO A RECORD $12.00 $10.00 +13% $42.3BN 6% $8.00 $6.00 $4.00 $2.00 +4% +1% -6% +2% +3% +14% +0% +9% -1% +3% +8% +7% +3% +5% $- CN US UK NZ JP KR IN SG HK MY GE CA ID FR IT Source: Tourism Research Australia, International Visitor Survey March 2018 Qtr.

AND THE OPPORTUNITY EXISTS BEYOND 2020 TO 2030 INBOUND TODAY 2020 2030 AND POTENTIALLY $90BN INTERNATIONAL VISITOR SPEND BY 2030 NOW $107BN INTERNATIONAL AND DOMESTIC O NIGHT VISITOR SPEND MAR 18 YE TO $124BN INTERNATIONAL AND DOMESTIC O NIGHT VISITOR SPEND BY 2020 AND POTENTIALLY $181BN INTERNATIONAL AND DOMESTIC OVERNIGHT VISITOR SPEND BY 2030 AND POTENTIALLY 15.3M+ INTERNATIONAL VISITORS BY 2030

GROWING IMPORTANCE OF THE EAST SHARE OF INTERNATIONAL VISITORS EAST WEST 37% 63% 41% 59% 47% 53% 51% 49% 60% 40% 2009 2012 2017 2020* 2030*

CURRENT CHALLENGES & OPPORTUNITIES

CONSUMER CHALLENGES WHILE AUSTRALIA HAS STRONG APPEAL WITH CONSUMERS THESE CHALLENGES PRESENT THE GREATEST BARRIERS TO VISITATION. FA S H I ONABILITY Limited knowledge of Australia s offering outside of iconic experiences leads to feeling we ve seen and heard it all before. LOW U R G ENCY Australia is perceived as a once-in-a-lifetime destination which can be put off for another day because of rational factors such as time, distance and cost. C O MPLEXITY A cluttered marketing environment and low familiarity of Australia s geography and experience offering leads to feeling overwhelmed. Travellers are visiting up to 20 sites before booking.

THE PROBLEM WE ARE TRYING TO SOLVE IN THE US

OUR STRATEGY IS FIRMLY FOCUSED ON TARGETING HIGH VALUE TRAVELLERS TRAVEL LONG HAUL Travels long haul (out of region) on a regular basis. PREFERENCE FOR AUSTRALIA Consideration or intention to visit Australia. KEY DRIVERS FOR DESTINATION CHOICE Food and wine, aquatic and coastal, and nature and wildlife experiences are key drivers when choosing a holiday destination. REPRESENT HIGH VALUE Above average trip expenditure. Higher likelihood to stay longer. Higher likelihood to disperse further.

OPPORTUNITY BEING DRIVEN OUT OF THE US, CHINA & INDIA

THE KEY IS HOW WE DIFFERENTIATE FROM OUR COMPETITORS

IT S ALSO ABOUT CUT-THROUGH INCREASED FOCUS ON THE CUSTOMERS & MARKETS WITH THE GREATEST OPPORTUNITY TO DELIVER DOING FEWER THINGS BUT WITH MORE DOLLARS IN THE RIGHT CHANNELS WITH THE RIGHT MESSAGE + DISTRIBUTION PARTNERS TO CREATE A BIGGER IMPACT

THE MESSAGE FOR AMERICA

DUNDEE CAMPAIGN CASE STUDY

CAMPAIGN HIGHLIGHTS

NEXT STEPS ROLL-OUT OF SECOND PHASE SCHEDULED FOR LATE 2018 TO BUILD ON THE MOMENTUM OF PHASE ONE.

A$10M SOUTH & SOUTH EAST ASIA CAMPAIGN TO CHALLENGE CONSUMER PERCEPTIONS

UNDISCOVER AUSTRALIA STRATEGY

ATE 2019 PERTH A$9M DIRECT EXPENDITURE A$5.5BN A$9.5BN POTENTIAL BUSINESS FOR AUSTRALIA 2,200 DELEGATES 670 BUYERS 520 COMPANIES 30 COUNTRIES 26% FROM CHINA 1,300 AUSTRALIAN SELLERS 540 COMPANIES 80 INTERNATIONAL AND AUSTRALIAN MEDIA 45,000 BUSINESS APPOINTMENTS 98% DELEGATE SATISFACTION WITH THE EVENT IN ADELAIDE IN 2018

CRUISE DESIRABILTY/CONVERSION INDUSTRY ASSOCIATIONS MEASURABILITY AUSSIE SPECIALISTS/ EVENTS RETAIL AGENCY AND CRUISE LINE RELATIONSHIPS PREMIUM

THANK YOU Subscribe to Essentials: www.tourism.australia.com/ subscribe Follow us on Twitter: @TourismAus @australia Visit our corporate site: www.tourism.australia.com