Victoria s International Tourism Performance Results from International Visitor Survey (IVS) for the year ending December 2018 Data Source: Tourism Research Australia, released March 2019 To note: This release of IVS December 2018 data includes purpose-of-visit information and revisions to estimates from 2005 to 2018. The revisions focus on purpose-of-visit estimates reflecting changes to passenger card data from the Department of Home Affairs used to benchmark the IVS, with minimal change to visitor, nights and spend estimates. As these results have been revised back to 2005, please do not use/compare previously published data. Please see notes on the data (back page) or refer to the International Visitor Survey methodology for further information.
IVS Performance highlights Year ending December 2018 Growth recorded for all key measures, in line with the national average on spend and visitors SPEND $8.5b +12.9% y/y : 28.0% +1.2% pts. International expenditure in Victoria continued to break records to reach $8.5 billion in the year ending December 2018, returning to double-digit growth of 12.9%. Victoria well exceeded the national growth rate for spend (+8.0%) and key competitor New South Wales (+4.3%), although was marginally behind Queensland (+13.3%). VISITORS 3.0m +5.4% y/y : 35.7% +0.2% pts. Victoria experienced year-on-year growth in international visitors to reach 3.0 million (+5.4%), above the national average growth rate (+4.8%) and key competitors New South Wales (+3.0%) and Queensland (+2.3%). NIGHTS 72.9m +11.2% y/y : 26.6% +1.8% pts. Visitor nights in Victoria increased at a doubledigit pace of 11.2% to reach 72.9 million nights, almost triple the national average (+3.8%), Queensland (+3.7%) and New South Wales (+2.4%) Key Markets growth for Victoria was largely driven by Asian markets, with strong double-digit growth recorded from India, China, Indonesia and Taiwan. Double-digit increases in spend were recorded from Indian (+44.3%) and Chinese (+23.9%) visitors, driving overall growth in expenditure. Other Asian markets to grow strongly were Indonesia (+22.3%) and Taiwan (+13.5%). A number of markets recorded solid growth in spend after recent declines including the USA (+7.7%) and the United Kingdom (+4.7%), while New Zealand (-4.8%) and Singapore (-1.1%) declined. Notably, spend growth from Japan was flat in the period (+0.0%) driven by a large decline in nights (-28.4%), marking a shift from the positive spend growth seen from this market over the past few years, largely fueled by airline capacity increases (average annual growth of +15.5 per cent per annum over the period 2013-2018). Melbourne Regional Victoria $7.9b spend 2.9m 64.7m +13.0% visitors +5.8% nights +12.4% $581k spend 565k 8.1m +11.1% visitors +6.1% nights +2.1% International expenditure, visitors and nights in Melbourne increased, ahead of the national cities averages. Melbourne experienced strong double-digit growth in international spend (+13.0%), outperforming the national capital cities average (+9.0%) and more than double the growth rate of Sydney (+4.9%), although behind strong performances from Brisbane (+21.2%) and the Gold Coast (+17.9%), which were boosted in this period by strong growth from China. Cities include: Melbourne, Sydney, Brisbane, Gold Coast, Adelaide, Perth, Hobart, Canberra and Darwin. Regional Victoria recovered from a recent period of decline to record growth across all key measures. International overnight expenditure in regional Victoria increased at a double-digit pace of 11.1% year-on-year to reach $581 million. Nationally, regional spend increased at a much lower rate (+2.8%). International visitors to regional Victoria increased by 6.1% to 565,000, also above the national regional average growth rate (+4.1%). The return to growth was driven by an increase in visitors from Western markets (+7.3%) after a period of decline, with growth also recorded from Eastern markets (+4.7%). 2
Table 1. Summary of results Year ending Total Total ('000) Total ('000) Australia 30,234 9.5% p.a. 8.0% 8,524 7.3% p.a. 4.8% 273,793 4.6% p.a. 3.8% Victoria 8,467 12.5% p.a. 12.9% 3,039 9.0% p.a. 5.4% 72,872 8.5% p.a. 11.2% Melbourne 7,887 12.4% p.a. 13.0% 2,889 9.1% p.a. 5.8% 64,745 8.6% p.a. 12.4% Regional Victoria 581 13.8% p.a. 11.1% 565 10.0% p.a. 6.1% 8,126 8.0% p.a. 2.1% New South Wales 10,729 10.1% p.a. 4.3% 4,370 7.2% p.a. 3.0% 96,204 5.7% p.a. 2.4% Queensland 5,994 8.7% p.a. 13.3% 2,763 6.1% p.a. 2.3% 55,052 3.5% p.a. 3.7% South Australia 1,101 7.7% p.a. -3.5% 452 2.4% p.a. -3.2% 9,874-2.6% p.a. -9.0% Western Australia 2,234 0.1% p.a. -1.2% 964 4.0% p.a. 2.1% 24,928-2.0% p.a. -5.0% Tasmania 549 18.6% p.a. 13.2% 309 14.3% p.a. 11.0% 4,911 11.1% p.a. 6.2% Northern Territory 472 2.8% p.a. 2.0% 298 2.4% p.a. 1.9% 3,589-3.1% p.a. -3.2% ACT 686 16.5% p.a. 24.7% 252 6.2% p.a. 2.9% 5,838 6.6% p.a. 11.8% * includes package expenditure Visitor Expenditure Estimates* Visitor Estimates Visitor Night Estimates Source: International Visitor Survey, Tourism Research Australia, Canberra, year ending December 2018, released March 2019. Expenditure includes package expenditure Base: International visitors aged 15+ Data considered correct at the time of publishing. 3
National Results $30.2b 8.5m 273.8m SPEND VISITORS NIGHTS +8.0% y/y +4.8% y/y +3.8% y/y $472 million spend 2.0% 298k visitors 1.9% $2.2 billion spend -1.2% 964k visitors 2.1% $6.0 billion spend 13.3% 2.8m visitors 2.3% $10.7 billion spend 4.3% 4.4m visitors 3.0% $1.1 billion spend -3.5% 452k visitors -3.2% $686 million spend 24.7% 252k visitors 2.9% $8.5 billion spend 12.9% 3.0m visitors 5.4% $549 million spend 13.2% 309k visitors 11.0% 4
Key market highlights top 15 markets Chart 1. International Overnight to Victoria ( 000s) & Y-on-Y Growth International to Victoria (000s) 6.0% 700 659.3 650 600 550 500 450 400 0.4% 350 336.1 300 1.1% -1.3% 250 234.7 226.6 19.4% 200 172.6 5.9% 2.4% 147.0 5.5% 150 131.7 6.6% 104.7-6.5% 8.9% 12.7% 12.9% 100 84.7-4.2% 78.9 77.2 17.1% 64.9 58.1 55.8 54.0 50 0 CH NZ US UK IN MY SG HK JP GE ID TW CA KR FR Chart 2. International Overnight Expenditure in Victoria ($millions) & Y-on-Y Growth International Overnight Visitor Expenditure in VIC ($millions) 23.9% 3,500 3,270 3,000 2,500 2,000 1,500 1,000 44.3% 6.0% -4.8% 543 4.7% 7.7% 450-1.1% 500 402 394 22.3% 353 0.8% 311 0.0% 270 13.5% 255-5.3% 32.9% -7.3% 198-5.4% 181 134 121 119 112 0 CH IN MY NZ UK US SG ID HK JP TW KR FR GE TH from most markets increased, with India continuing to grow at the strongest pace. Visitor growth from China was solid, but more subdued than the pace seen in previous years. China continues to be the largest source of international visitors to Victoria, with growth of 6.0% recorded in the year ending December 2018 to reach 659,300 visitors. Growth from China was softer than the double-digit pace that has been recorded in recent years, but was above the national growth rate (+5.2%), and New South Wales (-2.1%) and Queensland (-1.0%) which declined. Victoria s market share of Chinese visitors increased marginally with half (49.9%) of Chinese visitors to Australia staying overnight in Victoria. China contributed 21.7% of all international visitors to the state in the year ending December 2018, well ahead of the next ranked market New Zealand (11.1% of visitors). There were year-on-year increases in visitors to Victoria from most other markets, with double-digit growth recorded from India (+19.4%), France (+17.1%), Canada (+12.9%) and Taiwan (+12.7%). from Germany (-6.5%), Korea (-4.2%) and the United Kingdom (-1.3%) declined year-on-year. The largest increases in the volume of visitors to Victoria for the year ending December 2018 were from China (up 37,600 visitors), India (up 28,000) and Malaysia (up 8,100). India and China continued to deliver strong double-digit growth in visitor expenditure, as did Indonesia and Taiwan, while Japan remained flat after a period of high growth. Chinese visitor expenditure increased by 23.9% to reach $3.3 billion in the year ending December 2018. Victoria s growth performance was above the national average (+18.4%) and New South Wales (+11.1%), however behind the rate of growth in Chinese spend recorded for Queensland (+25.4%). Chinese visitor expenditure in Victoria contributed 38.6% of total international overnight spend in Victoria in the year ending December 2018 (more than the next nine international markets combined). Chinese spend growth was particularly strong from the VFR and Education segments, while spend from the Business segment declined. Indian spend accelerated at a rate of 44.3% year-on-year driven by spend growth from Education, Business and VFR segments, while the Holiday category declined. Other key Asian markets to grow strongly included Indonesia (+22.3%) and Taiwan (+13.5%). In comparison, declines were noted from the top ten markets of Singapore (-1.1%) and New Zealand (-4.8%). Positively, visitor spend from the USA (+7.7%) and United Kingdom (+4.7%) returned to growth, after a period of decline. 5
$ RANK Table 2. Summary Table Key results for Victoria by market Year ending December Visitor Expenditure Estimates* Visitor Estimates to Victoria Visitor Night Estimates Total % share of Total Length of Vic total Total ('000) ('000) stay 1 China 3,270 23.9% 38.6% 659.3 6.0% 20,017 16.3% 30 2 India 543 44.3% 6.4% 172.6 19.4% 8,024 46.8% 47 3 Malaysia 450 6.0% 5.3% 147.0 5.9% 3,391 7.1% 23 4 New Zealand 402-4.8% 4.7% 336.1 0.4% 2,668 1.2% 8 5 UK 394 4.7% 4.6% 226.6-1.3% 4,590 3.9% 20 6 USA 353 7.7% 4.2% 234.7 1.1% 2,773 1.7% 12 7 Singapore 311-1.1% 3.7% 131.7 2.4% 1,630-8.4% 12 8 Indonesia 270 22.3% 3.2% 77.2 8.9% 1,863 27.8% 24 9 Hong Kong 255 0.8% 3.0% 104.7 5.5% 1,649-8.1% 16 10 Japan 198 0.0% 2.3% 84.7 6.6% 1,695-28.4% 20 11 Taiwan 181 13.5% 2.1% 64.9 12.7% 2,290 7.8% 35 12 Korea 134-5.3% 1.6% 55.8-4.2% 1,432-1.9% 26 13 France 121 32.9% 1.4% 54.0 17.1% 1,593 26.6% 29 14 Germany 119-7.3% 1.4% 78.9-6.5% 1,492-13.4% 19 15 Thailand 112-5.4% 1.3% 32.5-0.8% 1,387 2.5% 43 16 Canada 73-27.3% 0.9% 58.1 12.9% 944-27.4% 16 17 Scandinavia 71 14.7% 0.8% 38.2-0.8% 639 9.0% 17 18 Italy 63-17.0% 0.7% 31.3 1.4% 869-12.6% 28 19 Netherlands 56 45.8% 0.7% 23.7-0.3% 473 3.3% 20 TOTAL 8,467 12.9% 100.0% 3,039.2 5.4% 72,872 11.2% 24 * includes package expenditure '-' indicates estimates below publishable threshold Source: International Visitor Survey, Tourism Research Australia, Canberra, year ending December 2018, released March 2019. Expenditure includes package expenditure Base: International visitors aged 15+ Data considered correct at the time of publishing. 6
Key Market Results *State market share of spend () = percentage of total VIC international expenditure noted in brackets UK CHINA (4.6% of total spend in VIC) (38.6% of total spend in VIC) VIC AUS $394m +4.7% y/y 20.9%* market share $1.9b -4.5% VIC AUS $3.3b +23.9% y/y 34.2%* market share $9.6b +18.4% NSW $625m -13.4% 33.2%* NSW $3.6b +11.1% 37.6%* QLD $433m +6.4% 23.0%* QLD $1.4b +25.4% 15.0%* JAPAN (2.3% of total spend in VIC) VIC $198m +0.0% y/y 16.9%* market share AUS $1.2b +6.0% NSW $406m +16.1% 34.6%* QLD $411m -4.4% 35.1%* USA VIC $353m +7.7% 18.8%* market share AUS $1.9b +1.9% NSW $762m +0.6% 40.5%* QLD $415m +15.2% 22.1%* INDIA (4.2% of total spend in VIC) (6.4% of total spend in VIC) VIC AUS $543m +44.3% $1.2b +24.5% 45.4%* market share NSW $373m +17.5% 31.3%* QLD $138m +2.1% 11.6%* HONG KONG VIC AUS $255m +0.8% y/y $970m +1.7% 26.3%* market share NSW $326m -0.1% 33.6%* QLD $190m +6.0% 19.6%* INDONESIA (3.0% of total spend in VIC) (3.2% of total spend in VIC) VIC AUS $270m +22.3% y/y 44.1%* market share $613m +12.3% NSW $197m +6.6% 32.2%* QLD $41m +12.8% 6.7%* MALAYSIA SINGAPORE (5.3% of total spend in VIC) (3.7% of total spend in VIC) (4.7% of total spend in VIC) NZ VIC $450m +6.0%y/y 42.5%* market share VIC $311m -1.1% y/y 28.5%* market share VIC $402m -4.8% y/y 24.5%* market share AUS $1.1b -0.9% AUS $1.1b +4.8% AUS $1.6b +1.2% NSW $179m -4.8% QLD $116m +11.7% 16.9%* 10.9%* NSW $252m +1.5% QLD $177m +41.2% 23.2%* 16.3%* NSW $466m +1.5% QLD $578m +5.2% 28.3%* 35.2%* 7
Purpose of Visit overview Education Holiday VFR Business $3.8b $2.1b $1.5b $619m +21.7% y/y +9.4% y/y +11.6% y/y +0.8% y/y AAG: +17.8% p.a. (2013-2018) AAG: +12.7% p.a. (2013-2018) AAG: +7.8% p.a. (2013-2018) AAG: +5.6% p.a. (2013-2018) Growth in spend for all segments with double-digit growth recorded from the Education and VFR segments. International visitor expenditure growth in Victoria was positive for the Education (+21.7%), VFR (+11.6%) and Holiday (+9.4%) segments, with only marginal growth in spend recorded in the Business segment (+0.8%). The remaining visitor expenditure segments fall into an Other segment (which includes Employment), which experienced a year-on-year decrease of 10.5%. Expenditure by international Education visitors comprised the largest share of international visitor spend in Victoria (45%), followed by Holiday (25%), VFR (17%) and Business (7%). Year-on-year expenditure growth was recorded from the Leisure segment (Holiday and VFR combined) to Victoria (+10.3%). This growth was higher than key competitors New South Wales (3.1%) and Queensland (6.1%) as well as the national growth rate (+4.7%). There was double-digit growth in visitors to Victoria for the Business Event segment (+24.0% to 86,600), although Business visitors grew only marginally (+1.8% to 326,500). from the VFR (+8.5% to 1.0 million) and Holiday (+6.2% to 1.6 million) segments increased solidly in the period. Declines were noted in the Employment (-16.2% to 52,700) and Backpacker segments (-1.5% to 291,900). Notably, visitors to Victoria on a working holiday maker visa also decreased by 9.1% year-on-year to 133,000. The decline was driven by working holiday makers in Melbourne (-9.5%), with regional Victoria noting an increase (+4.2%), with a decline also recorded nationally for this sector (-4.7%). Growth in visitors was recorded across the main purpose segments for most markets, with VFR performing strongly for growth markets such as India and China. Holiday visitors increased for Indonesia (+17.5%), Malaysia (+13.0%), UK (+8.6%), Singapore (+7.6%), Japan (+5.6%), China (+5.4%), the USA (+3.6%), with marginal growth from Hong Kong (+1.8%). There was a large decline in Holiday visitors from India (-17.5%), with a slight decline also noted for New Zealand (-0.2%). There was a large increase in VFR visitors from India (+32.5%), as well as China (+20.2%) and Hong Kong (+12.0%). Slight increases were noted in VFR visitors from Singapore (+3.1%) and New Zealand (+1.6%), while Japan remained flat (+0.2%). VFR visitors to Victoria declined for Indonesia (-8.4%), Malaysia (-7.3%), USA (-3.8%) and the UK (-1.4%). Strong growth in Education spend, visitors and nights. Education expenditure (+21.7%), nights (+13.4%) and visitors (+7.3%) in Victoria all increased in the year ending December 2018. Education visitors from key markets including Indonesia (+54.0%), India (+22.2%) and China (+19.5%) increased strongly. Education visitors declined from Japan (-27.7%), Malaysia (-6.6%) and New Zealand (-5.3%). Business segment remained relatively flat, although Business Event visitors performed well. Expenditure from the Business segment was relatively unchanged year-on-year (+0.8%), as were visitors (+1.8%), whilst nights declined (-4.3%). In comparison, Business Event visitors to Victoria increased in this period (+24.0%), as did nights (+14.5%). Of the main markets, Business visitors to Victoria increased at a double-digit pace year-on-year from Japan (+42.2%), Hong Kong (+23.4%), USA (+21.3%), India (+15.2%) and Malaysia (+13.7). However, Business visitors from China, contracted by 30.5%, reflecting softening conditions in the Chinese economy. Business visitors from the UK also declined by 11.5%, possibly fueled by ongoing economic uncertainty around Brexit. Chart 3. by purpose for top spend markets in Victoria. (% in brackets are the proportion of the total spend of the origin market in Victoria) China (39%) India (6%) Malaysia (5%) New Zealand (5%) Holiday VFR Business Education UK (5%) -30.5% -17.5% -7.3% -6.6% -0.2% -5.3% -1.4% -11.5% 5.4% 1.6% 5.5% 19.5% 32.5% 15.2% 22.2% 13.0% 8.6% 13.7% 20.2% 24.3% -50% -30% -10% 10% 30% 50% Data in red italics is below the publishable threshold. Please interpret with caution 8
Key Results Metro and Regional Victoria Melbourne $7.9b +13.0% y/y Sydney $9.7b +4.9% y/y Brisbane $2.7b +21.2% y/y Gold Coast $1.4b +17.9% y/y Detailed results - Regional Victoria International spend in regional Victoria increased at a double-digit rate of 11.1% to reach $581 million in the year ending December 2018, more than triple the rate of growth for regional Australia overall (+2.8%). International visitors (+6.1%) and nights (+2.1%) in regional Victoria also recorded growth. AAG: +12.4% p.a. (2013-2018) AAG: +10.2% p.a. (2013-2018) AAG: +10.7% p.a. (2013-2018) AAG: +10.0% p.a. (2013-2018) Growth in spend for Melbourne outperformed Sydney and the national cities average, but was behind Brisbane and the Gold Coast In the year ending December 2018, international spend in Melbourne increased strongly by 13.0% year-on-year to reach $7.9 billion, while visitors increased by 5.8% to 2.9 million, with stronger growth in nights (+12.4%) to 64.7 million. All key measures performed above the national cities averages. Melbourne outperformed Sydney on all key measures, recording more than double the rate of growth in spend (+13.0% compared to +4.9%). However, Brisbane (+21.2%) and the Gold Coast (+17.9%) both continued to outperform Melbourne with double-digit growth in spend, well above the national average. This result is driven by strong growth in spend from Chinese visitors for both Brisbane (+44.1%) and the Gold Coast (+18.9%). The lift in visitor expenditure from the 2018 Commonwealth Games (April 2018) is also captured in this period of results. Table 3. Summary of results for major cities Expenditure Melbourne 7,887 13.0% 2,889 5.8% 64,745 12.4% Sydney 9,708 4.9% 4,091 3.2% 81,284 2.5% Brisbane 2,734 21.2% 1,400 6.3% 28,718 9.7% Gold Coast 1,418 17.9% 1,047 1.2% 10,021 7.8% Total cities 25,790 9.0% 7,965 5.2% 223,527 5.1% to regional Victoria from Western markets returned to growth after a period of decline (+7.3% or +23,400 visitors), driving the overall positive result for regional Victoria. from Western Hemisphere markets represent the majority of international overnight visitors to regional Victoria (61% or 342,600 visitors compared to 35% or 195,500 visitors from Eastern markets). on a working holiday maker visa also increased in regional Victoria in the period (+4.2%), after a period of decline. A number of regions recorded strong double-digit growth in international visitors in the year ending December 2018, marking a recovery from the results noted last quarter (year ending September 2018). Seven of Victoria s eleven tourism regions experienced year-on-year increases in international overnight visitors including Phillip Island (+19.5%), Victoria s High Country (+16.3%), Gippsland (+16.2%), Murray (+10.9%) and Great Ocean Road (+9.7%). Marginal declines were noted in Yarra Valley and Dandenong Ranges (-0.4%), Grampians (-1.3%), Geelong and the Bellarine (-1.7%), with larger declines noted in Mornington Peninsula (-4.0%) and Daylesford and the Macedon Ranges (-12.0%). Table 4. International overnight visitors to regional Victoria International Overnight Year ending December 2013 2014 2015 2016 2017 2018 Daylesford & the Macedon Ranges 9.9 12.9 11.3 15.9 21.3 18.7-12.0% 13.7% p.a. Geelong and the Bellarine 42.5 41.2 57.3 54.3 57.0 56.1-1.7% 5.7% p.a. Gippsland 56.6 51.2 69.0 67.9 72.7 84.4 16.2% 8.3% p.a. Goldfields 36.5 41.8 38.6 48.5 43.3 48.6 12.2% 5.9% p.a. Grampians 32.0 36.0 45.4 49.5 51.9 51.3-1.3% 9.9% p.a. Great Ocean Road 141.2 154.4 182.4 194.6 218.0 239.3 9.7% 11.1% p.a. Mornington Peninsula 39.9 44.4 56.4 57.2 63.7 61.2-4.0% 8.9% p.a. Murray 49.0 43.7 50.6 60.9 54.9 60.9 10.9% 4.4% p.a. Phillip Island 31.1 33.2 45.5 42.8 52.1 62.2 19.5% 14.9% p.a. Victoria's High Country 16.5 20.4 24.3 28.5 32.4 37.6 16.3% 18.0% p.a. Yarra Valley & Dandenong Ranges 33.5 36.9 41.5 49.1 47.4 47.3-0.4% 7.2% p.a. Regional Victoria 350.7 380.0 455.3 495.9 532.3 565.0 6.1% 10.0% p.a. 9
CHINA Ranked #1 for spend (38.6%) INDIA Ranked #2 for spend (6.4%) MALAYSIA Ranked #3 for spend (5.3%) Chinese visitor expenditure continued to record strong growth of 23.9% to reach $3.3 billion, ahead of increases in visitors and nights. The growth in expenditure was ahead of the national average (+18.4%) and New South Wales (+11.1%), although behind a strong performance from Queensland (+25.4%). Chinese Business visitors to Victoria declined by 30.5% year-on-year, while VFR (+20.2%) and Education (+19.5%) visitors fueled growth. Holiday visitors also increased, however at a more moderate rate (+5.4%). Chinese China Vic 3,270 23.9% 23.4% 34.2% NSW 3,595 11.1% 20.6% 37.6% Qld 1,437 25.4% 18.7% 15.0% Aus 9,551 18.4% 21.7% Indian visitor expenditure experienced further strong growth in Victoria (+44.3%) to reach $543 million, well above the national average growth rate (+24.5%) and key competitors New South Wales (+17.5%) and Queensland (+2.1%). Visitor growth was driven by the VFR (+32.5%), Education (+22.2%) and Business segments (+15.2%), while Holiday visitors from India to Victoria declined (-17.5%). Victoria holds the highest market share of Indian spend, visitors and nights, and captured new market share from its competitors in the period against all measures. Indian India Vic 543 44.3% 24.7% 45.4% NSW 373 17.5% 15.5% 31.3% Qld 138 2.1% 17.4% 11.6% Aus 1,194 24.5% 19.5% Visitor expenditure from Malaysia increased in the year ending December 2018 (+6.0%), above the national growth rate for this market (-0.9%), although behind spend growth in Queensland (+11.7%). Victoria s market share of Malaysian visitor expenditure increased solidly (+2.8% pts). Double-digit growth was recorded for Business (+13.7%) and Holiday (13.0%) visitors from Malaysia, while VFR (-7.3%) and Education (-6.6%) visitors declined. Malaysian Malaysia Vic 450 6.0% 7.9% 42.5% NSW 179-4.8% 5.2% 16.9% Qld 116 11.7% 8.8% 10.9% Aus 1,058-0.9% 7.2% Chinese China * Vic 659 6.0% 14.9% 49.9% Chinese NSW 772-2.1% 13.4% 58.4% Qld 502-1.0% 10.7% 38.0% Aus 1,322 5.2% 14.3% China Vic 20,017 16.3% 17.2% 34.1% NSW 21,095 6.4% 11.8% 35.9% Qld 9,093 20.5% 14.6% 15.5% Aus 58,781 12.7% 14.2% Indian India Indian * Vic 173 19.4% 18.4% 51.4% NSW 164 11.0% 14.3% 48.7% Qld 78 4.6% 12.9% 23.2% Aus 336 17.9% 15.1% India Vic 8,024 46.8% 17.3% 39.2% NSW 7,075 21.0% 14.7% 34.6% Qld 2,106 23.4% 12.6% 10.3% Aus 20,458 30.3% 15.4% Malaysian Malaysia Malaysian * Vic 147 5.9% 9.2% 41.2% NSW 89 0.6% 5.5% 25.1% Qld 51 11.2% 2.4% 14.4% Aus 357 1.0% 7.3% Malaysia Vic 3,391 7.1% 6.0% 40.4% NSW 1,553-7.1% 5.8% 18.5% Qld 1,013-0.1% 7.5% 12.1% Aus 8,387-3.4% 6.0% 10
NEW ZEALAND Ranked #4 for spend (4.7%) UNITED KINGDOM Ranked #5 for spend (4.6%) UNITED STATES Ranked #6 for spend (4.2%) The New Zealand visitor market for Victoria continued to weaken further, with a decline in spend of 4.8% to $402 million recorded in the year ending December 2018, below the national growth performance (+1.2%) and key competitors Queensland (+5.2%) and New South Wales (+1.5%). As a result, Victoria s share of New Zealand visitor expenditure declined (-1.5% pts), with the gain in share largely shifting to Queensland (+1.4% pts). Business visitors from NZ to Victoria increased yearon-year (+5.5%), with a slight increase in VFR visitors (+1.6%). There was a slight decrease in Holiday (-0.2%) visitors, while the Education segment declined at a greater rate (-5.3%) New Zealand New Zealand New Zealand NZ Vic 402-4.8% 3.4% 24.5% NSW 466 1.5% 1.4% 28.3% Qld 578 5.2% 4.7% 35.2% Aus 1,643 1.2% 1.8% NZ Vic 336 0.4% 3.2% 26.7% NSW 441 0.2% 1.7% 35.1% Qld 483 4.0% 4.7% 38.4% Aus 1,259 2.1% 2.9% * NZ Vic 2,668 1.2% -1.3% 20.4% NSW 3,731 5.6% -2.1% 28.5% Qld 5,030 3.1% 0.9% 38.4% Aus 13,108 0.5% -3.0% Visitor expenditure in Victoria from the UK increased (+4.7%), as did Queensland (+6.4%). in New South Wales continued to decline at a high rate (-13.4%), resulting in an overall national decline (-4.5%). This negative result is likely to be driven by ongoing uncertainty around Brexit and the resultant negative consumer sentiment in the UK. This was also reflected in the decline in Business visitors to Victoria from the UK (-11.5%) with VFR also in decline (-1.4%), although Holiday visitors to Victoria increased (+8.6%). Victoria gained market share of UK visitor expenditure (+1.8% pts) at the expense of New South Wales (-3.4% pts). Queensland also increased its share of spend (+2.3% pts). UK UK UK UK Vic 394 4.7% 1.0% 20.9% NSW 625-13.4% 0.3% 33.2% Qld 433 6.4% 0.6% 23.0% Aus 1,885-4.5% -0.4% UK * Vic 227-1.3% 0.6% 32.9% NSW 372-3.3% 1.7% 54.0% Qld 227-0.9% 1.2% 33.0% Aus 688-0.3% 1.7% UK Vic 4,590 3.9% -1.3% 21.2% NSW 6,814-13.8% -2.5% 31.4% Qld 5,149 1.0% -2.2% 23.7% Aus 21,694-7.4% -3.3% Solid growth in USA visitor expenditure in Victoria was recorded in the year ending December 2018 (+7.7%) to reach $353 million, well above the national performance (+1.9%) and New South Wales (+0.6%), although behind strong growth in Queensland (+15.2%). Consequently, Victoria and Queensland's share of USA visitor expenditure increased (+1.0% pts and 2.6% pts respectively). Visitor growth was high for Business visitors (+21.3%) from the USA, with moderate growth in the Holiday segment (+3.6%), while the VFR segment declined (-3.8%). USA USA Vic 353 7.7% 5.8% 18.8% USA USA NSW 762 0.6% 6.7% 40.5% Qld 415 15.2% 7.7% 22.1% Aus 1,880 1.9% 6.1% USA * Vic 235 1.1% 10.6% 31.5% NSW 495 5.2% 10.1% 66.6% Qld 229-1.8% 7.8% 30.8% Aus 744 1.3% 8.8% USA Vic 2,773 1.7% 3.1% 20.7% NSW 4,857-5.4% 2.2% 36.3% Qld 2,693-0.5% 1.2% 20.1% Aus 13,380-6.0% 1.0% * of visitors may over add as visitors can stay overnight in more than one state/territory. 11
SINGAPORE Ranked #7 for spend (3.7%) INDONESIA Ranked #8 for spend (3.2%) HONG KONG Ranked #9 for spend (3.0%) Visitor expenditure from Singapore declined slightly in Victoria (-1.1% to $311 million), below the national performance (+4.8%). However, in the same period Queensland recorded a very strong double-digit increase in spend of 41.2%, with some uplift from the Commonwealth Games captured in this period of results. Singaporean nights (-8.4%) also declined for Victoria, resulting in decreases in Victoria s market share against all key measures. The Singaporean Holiday segment increased solidly (+7.6%), while the VFR (+3.1%) and Business (+1.5%) segments recorded moderate growth. Indonesian visitor expenditure experienced doubledigit growth in Victoria (+22.3% to $270 million), well ahead of the national performance (+12.3%) and key competitors Queensland (+12.8%) and New South Wales (+6.6%). Victoria holds the majority share of spend for the Indonesian market and increased its share further in this period (+3.6% pts). (+27.8%) and visitors (+8.9%) from Indonesia also recorded strong growth for Victoria, above the national growth rates, driven by strong growth from Education visitors (+54.0%) in the period. from Hong Kong visitors in Victoria was relatively flat (+0.8% to $255 million), broadly on par with the national performance (+1.7%) and New South Wales (-0.1%). Conversely, Queensland recorded a solid increase in spend (+6.0%). to Victoria from Hong Kong increased (+5.5%), although visitor nights declined (-8.1%), reflecting a shorter length of stay. As a result, Victoria lost market share across the key measures of spend (-0.2% pts), visitors (-1.3% pts) and nights (-0.7% pts). Visitor growth was driven by the Business (+23.4%) and VFR segments (+12.0%), while the Holiday (+1.8%) segment remained relatively flat. Singaporean Singapore Singaporean Vic 311-1.1% 5.1% 28.5% NSW 252 1.5% 6.2% 23.2% Qld 177 41.2% 9.6% 16.3% Aus 1,089 4.8% 7.4% Singapore * Vic 132 2.4% 8.4% 33.6% NSW 126 7.9% 3.9% 32.1% Qld 67 11.2% 1.3% 17.0% Aus 392 3.4% 6.1% Indonesian Indonesia Indonesian Vic 270 22.3% 3.5% 44.1% NSW 197 6.6% 2.2% 32.2% Qld 41 12.8% 0.0% 6.7% Aus 613 12.3% 2.0% Indonesia * Vic 77 8.9% 12.3% 41.5% NSW 87 9.5% 7.2% 46.4% Qld 20-11.2% -4.0% 10.7% Aus 186 7.3% 7.1% Hong Kong Hong Kong Hong Kong Vic 255 0.8% 3.9% 26.3% NSW 326-0.1% 9.5% 33.6% Qld 190 6.0% 11.9% 19.6% Aus 970 1.7% 8.3% Hong Kong * Vic 105 5.5% 12.0% 37.4% NSW 131 0.1% 7.3% 46.9% Qld 71 11.2% 10.3% 25.4% Aus 280 9.1% 10.8% Singaporean Singapore Vic 1,630-8.4% 2.1% 28.0% NSW 1,451 25.6% 2.0% 24.9% Qld 948 5.6% 3.5% 16.3% Aus 5,829-2.3% 3.1% Indonesian Indonesia Vic 1,863 27.8% 8.2% 32.8% NSW 2,225 28.1% 8.8% 39.2% Qld 415-23.2% 0.2% 7.3% Aus 5,675 11.2% 6.8% Hong Kong Hong Kong Vic 1,649-8.1% 2.6% 24.6% NSW 2,379-1.9% 5.7% 35.4% Qld 1,374-11.5% 2.8% 20.5% Aus 6,716-5.7% 2.2% * of visitors may over add as visitors can stay overnight in more than one state/territory. 12
JAPAN Ranked #10 for spend (2.3%) After a period of strong growth, spend from Japanese visitors was flat (+0.0% at $198 million) in the year ending December 2018, below the national average growth rate (+6.0%). Strong growth was recorded for New South Wales (+16.1%), while spend in Queensland declined (- 4.4%). As a result, Victoria s market share of Japanese visitor spend decreased by 1.0 percentage points, while New South Wales gained share (+3.0% pts). ACCOMMODATION Rented accommodation 30.3 million (42%) Friends/ relatives 24.3 million (33%) Hotel/resort /motel 6.8 million (9%) Backpacker /hostel 2.2 million (3%) Caravan/ camping 641,300 (1%) Other 8.6 million (12%) Business visitors from Japan increased strongly by 42.2%, with moderate growth in Holiday visitors (+5.6%), while Education visitors declined (-27.7%). Japanese Japan Japanese Vic 198 0.0% 15.5% 16.9% NSW 406 16.1% 4.8% 34.6% Qld 411-4.4% 7.4% 35.1% Aus 1,172 6.0% 7.7% Japan * Vic 85 6.6% 15.2% 19.5% NSW 197 17.1% 5.7% 45.3% Qld 208 1.0% 5.9% 48.0% Aus 434 8.4% 7.4% +11.0% y/y Visitor nights at a friend/ relatives increased by 14.0% year-on-year to 24.3 million nights (this was the second most utilised form of accommodation by international visitors to Victoria). Rented accommodation was the most widely used form of accommodation by international visitors to Victoria and increased by 11.0% year-onyear to 30.3 million nights. Visitor nights in hotel/resort/motel accommodation increased (+3.3% to 6.8 million nights), with a marginal increase in nights at a caravan park/camping (+1.0% to 641,300 nights). in a backpacker/ youth hostel declined (-4.5% to 2.2 million nights). International visitor nights in Other types of accommodation increased by 16.3% year-on-year to 8.6 nights (this incorporates other private or commercial accommodation types including own property, B&Bs, education institutions or Airbnb etc..). TRAVEL PARTY Unaccompanied traveller +14.0% y/y Adult couple +3.3% y/y Family group -4.5% y/y Friends/ relatives +1.0% y/y Business associates +16.3% y/y School tours groups Japanese Japan Vic 1,695-28.4% 4.2% 15.6% NSW 4,127 23.1% 1.0% 37.9% Qld 3,573-9.8% 7.3% 32.8% Aus 10,894-2.7% 3.8% * of visitors may over add as visitors can stay overnight in more than one state/territory. 1.6 million (52%) +6.0% y/y 586,400 (19%) +2.2% y/y 401,100 (13%) +13.8% y/y 354,500 (12%) -1.4% y/y 97,900 (3%) +10.1% y/y 8,900 (<1%) -9.1% y/y International visitors travelling as part of a family group increased by 13.8% to 401,100 in the year ending December 2018. This was followed by growth in business associates travelling together (+10.1% to 97,900), those travelling unaccompanied (+6.0% to 1.6 million) and those travelling as adult couples (+2.2% to 586,400). School tour groups decreased by 9.1%, albeit off a small base (8,900 visitors), while friends /relatives travelling together also declined marginally (-1.4% to 354,500). (N.B. of Victorian nights by accommodation type and visitors by travel party shown in brackets) 13
Table 5. International expenditure in Victoria by market Expenditure VIC AAG % VIC AUS ($mills) Dec 13/Dec 18 Dec 17/Dec 18 Dec 17/Dec 18 % share of VIC total Average spend per Average spend per Length of stay Ranked Markets 1 China 3,270 23.4% p.a. 23.9% 18.4% 38.6% Visitor ($) 4,959 Night ($) 163 30 2 India 543 24.7% p.a. 44.3% 24.5% 6.4% 3,144 68 47 3 Malaysia 450 7.9% p.a. 6.0% -0.9% 5.3% 3,058 133 23 4 New Zealand 402 3.4% p.a. -4.8% 1.2% 4.7% 1,196 151 8 5 UK 394 1.0% p.a. 4.7% -4.5% 4.6% 1,736 86 20 6 USA 353 5.8% p.a. 7.7% 1.9% 4.2% 1,502 127 12 7 Singapore 311 5.1% p.a. -1.1% 4.8% 3.7% 2,360 191 12 8 Indonesia 270 3.5% p.a. 22.3% 12.3% 3.2% 3,497 145 24 9 Hong Kong 255 3.9% p.a. 0.8% 1.7% 3.0% 2,433 154 16 10 Japan 198 15.5% p.a. 0.0% 6.0% 2.3% 2,343 117 20 11 Taiwan 181 14.9% p.a. 13.5% 12.6% 2.1% 2,791 79 35 12 Korea 134 5.3% p.a. -5.3% 0.5% 1.6% 2,408 94 26 13 France 121 8.5% p.a. 32.9% 8.6% 1.4% 2,234 76 29 14 Germany 119 5.7% p.a. -7.3% 4.1% 1.4% 1,508 80 19 15 Thailand 112 10.4% p.a. -5.4% -10.9% 1.3% 3,437 80 43 16 Canada 73-2.7% p.a. -27.3% 11.9% 0.9% 1,256 77 16 17 Scandinavia 71 7.7% p.a. 14.7% 10.2% 0.8% 1,870 112 17 18 Italy 63-1.6% p.a. -17.0% -11.6% 0.7% 2,008 72 28 19 Netherlands 56 20.1% p.a. 45.8% 24.2% 0.7% 2,366 119 20 TOTAL 8,467 12.5% p.a. 12.9% 8.0% 100.0% 2,786 116 24 Table 6. International expenditure state comparison International Expenditure ($b) YE Dec 18 * % pt change in share* Average spend per visitor ($) Average Length of spend per stay night ($) Vic 8.5 12.5% p.a. 12.9% 28.0% 1.2% 2,786 116 24 NSW 10.7 10.1% p.a. 4.3% 35.5% -1.3% 2,455 112 22 Qld 6.0 8.7% p.a. 13.3% 19.8% 0.9% 2,169 109 20 Aus 30.2 9.5% p.a. 8.0% 100.0% 3,547 110 32 * Percentage of all visitors to Australia Table 7. International expenditure in Victoria by purpose Purpose of Visit VIC % change AAG VIC % change AUS % change % share of VIC visitor total Average spend per visitor ($) Average Length of spend per stay night ($) Education 3,840 17.8% p.a. 21.7% 16.6% 45.4% 20,133 159 126 Holiday 2,091 12.7% p.a. 9.4% 4.1% 24.7% 1,302 125 10 VFR 1,459 7.8% p.a. 11.6% 5.9% 17.2% 1,399 61 23 Business 619 5.6% p.a. 0.8% 6.1% 7.3% 1,897 240 8 Other 458 3.6% p.a. -10.5% -6.9% 5.4% 3,228 80 40 Source: International Visitor Survey, Tourism Research Australia, Canberra, year ending December 2018, released March 2019. Expenditure includes package expenditure Base: International visitors aged 15+ Data considered correct at the time of publishing. 14
Data notes Revisions to International Visitor Survey data due to changes to passenger movement data TRA has revised International Visitor Survey (IVS) estimates from 2005 to 2018 with the release of the year ending December 2018 data. The revisions focus on purpose-of-visit estimates, with minimal change to visitor, nights and spend estimates. As the results have been revised back to 2005, please do not use/compare previously published data. Issues relate to anomalies in the coding of passenger card data processed by the Department of Home Affairs, which is used to benchmark and produce a purposeof-visit measure for the IVS. In response to these issues, the ABS and Home Affairs have revised imputation and processing practices of the passenger card data, and made a number of changes that will improve the reliability of data in the future. Please refer to the TRA website International Visitor Survey methodology for further information on this issue. Base: Only those trips where International visitors aged 15 years who have stayed in Australia for less than 12 months are in scope. For further information on data sources used please refer to our summary of Research sources, definitions and methodologies document found here: http://www.tourism.vic.gov.au/research.html Figures that are unreliable and unable to be published are represented by -. Figures might not add up due to rounding. Further information on international visitor statistics: https://www.tra.gov.au/research/international-visitors-to-australia/international-visitor-survey-results http://www.tourism.australia.com/en/markets-and-research/market-regions.html Regional definition changes Data in this release has been altered to account for official regional boundary changes for tourism regions across Australia that came into effect on January 2018. This includes a shift in 'Avoca' and 'Beaufort' SA2s which are now included in the Ballarat sub-region (Goldfields region). There were previously in the Central Highlands sub-region (Grampians region). All back data has been adjusted to reflect these changes. The definition of an SA2 is on the Australian Bureau of Statistics website: http://www.abs.gov.au/ausstats/abs@.nsf/lookup/2901.0chapter23102011#sa2 Due care is taken in the production of this analysis, however DJPR accepts no responsibility for the use of this information. All data is considered correct at the time of publishing. Next IVS release for the year ending March 2019: June 2019 (date tbc) 15