Cairns & Great Barrier Reef

Cairns & Great Barrier Reef Adventurus by nature Updated n: Friday, 5 July 2013 cairnsgreatbarrierreef.rg.au Last updated: 5 JULY 2013 Updated n: Friday, 5 July 2013

Updated n: Friday, 5 July 2013 Visitr Ptential Ttal visitrs Ttal Hliday Visitrs Current verall size f market and trends (YE DEC 12) China 108,052 China 105,944 Hng Kng 15,339 Hng Kng 14,793 Taiwan 5,537 Taiwan 5,085 Change YE DEC 11 t YE DEC 12 Change YE DEC 11 t YE DEC 12 China 45% Hng Kng 31% Taiwan - 8% China 50% Hng Kng 35% Taiwan 12% Ttal visitrs Hng Kng and China 2005 2010 2011 2012 2013 2014 2015 Ptential ttal visitrs t CGBR YE DEC Actual ttal visitrs t CGBR YE DEC 86,000 95,000 53,281 88,153 86,201 123,391 128,000 149,000 200,000 Actual average length f stay (visitr nights) 4 3 3 3 Market share Hng Kng and China 2005 2010 2011 2012 2013 2014 2015 Ptential CGBR prprtin f Aust. market share Actual CGBR prprtin f Aust Market Share 2011 2015 Strategic Plan 17% 13% 15% 13% 16% 40% Expenditure Hng Kng and China 2005 2010 2011 2012 2013 2014 2015 Ptential TTNQ visitr expenditure Actual TTNQ Visitr Expenditure $33.2M $24.7M $25.9M $47M $47.5M $56.9M $78.5M

Updated n: Friday, 5 July 2013 Visitr Ptential Graph Pten.al visitrs - Hng Kng and China Visitrs t CGBR 250,000 200,000 Ttal Visitrs 150,000 100,000 50,000 0 YE DEC 05 YE DEC 10 YE DEC 11 YE DEC 12 YE DEC 13 YE DEC 14 YE DEC 15 Ttal visitrs 53,281 88,153 86,201 123,391 128,000 149,000 200,000 Assumptins 2013 Anticipating 14% natural grwth (TRA Frecast), and we believe the grwth will be mre, based n the capacity prvided by China Eastern (MU) Shanghai direct services: MU: Return f 2 x A330 (arund 260 seats) / week = 520 pax/ week (9 mnths) MU: Return f 3 x A330 (arund 260 seats) /week = 780 pax/ week (3 mnths) With 80% lading, ttal number f pax carried will be 22,464 Increase in Chinese visitrs n dmestic services wh travel t Australia via ther prts f entry by QF, CX, CZ and ther airlines 2014 Anticipating 14% natural grwth (TRA Frecast) plus grwth n the base f 2014 a ptential f full year 3 direct services frm China weekly. MU: Return f 3 x A330 (assume 260 seats) /week = 780 pax/ week With 85% lading, ttal number f pax carried will be 34,476 Increase in Chinese visitrs n dmestic services wh travel t Australia via ther prts f entry by QF, CX, CZ and ther airlines 2015 Anticipating 14% natural grwth (TRA Frecast) plus grwth n the base f 2015 with a ptential f full year daily direct services frm China weekly. MU: Return f 7 x A330 (assume 260 seats) /week = 1,820 pax/ week With 80% lading, ttal number f pax will be 75,712 Increase in Chinese visitrs n dmestic services wh travel t Australia via ther prts f entry by QF, CX, CZ and ther airlines

Updated n: Friday, 5 July 2013 Analysis f visitrs China & Hng Kng Hliday Visitrs t CGBR - First vs Repeat Visit t Australia Hliday Visitrs 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 YE DEC YE DEC YE DEC YE DEC YE DEC YE DEC YE DEC YE DEC 2005 2006 2007 2008 2009 2010 2011 2012 First visit 37,798 33,644 48,040 36,976 39,904 68,923 60,146 91,421 Return visit 8,399 9,978 18,398 9,745 12,905 15,641 21,633 29,316 Mst f the visitrs t Australia frm Mainland China and Hng Kng are first time visitrs.

Updated n: Friday, 5 July 2013 China & Hng Kng Purpse f visit t CGBR - YE Dec 12 1% 2% 3% 6% 6% Hliday VisiDng friends and reladves Business EducaDn Emplyment Other 82% Mst f the visitrs are here in the regin fr hliday. Aviatin Key Airlines carrying Chinese passengers t CGBR thrugh internatinal direct services and dmestic services: China Eastern (MU) 3 weekly direct services depart frm Shanghai t Cairns frm Octber 2012. Passengers may als arrive at Sydney and Melburne cnnecting Qantas dmestic services t Cairns The intrductin f MU Nanjing Sydney direct flight als favur Cairns in Australia pattern Cathay Pacific (CX) 3 weekly direct services depart frm Hng Kng t Cairns/ 4 services via Brisbane. The established cnnectin t Hng Kng by Dragn Air (KA) in China favurs medium-high end travellers t Cairns. Passengers may als arrive at ther prts f Australia and cnnect Qantas dmestic services t Cairns Qantas (QF) depart frm Hng Kng and Shanghai t different prts f Australia and arriving Cairns by using Qantas dmestic services China Suthern (CZ) depart frm Guangzhu t different prts f Australia and arriving Cairns by using varius dmestic services; ptential seasnal direct services Dmestic services supprt and mnitr the dmestic services, which significantly prvide capacity fr Chinese custmers t visit the regin

Updated n: Friday, 5 July 2013 Her Experiences VISION By 2020 Cairns & Great Barrier Reef will be glbally recgnised as the wrld s leading trpical hliday destinatin and the gateway t adventure amngst the natural wnders f the Wrld Heritage Listed Great Barrier Reef and Wrld s Oldest Living Rainfrest CORE PROMISE Feel the natural exhilaratin f an Australian Trpical Adventure where tw Wrld Heritage Listed icns live side by side HERO EXPERIENCE: Great Barrier Reef Experience the ultimate Great Barrier Reef frm abve, upn and belw - feel the exhilaratin and thrill f an accessible encunter with the largest array f amazing marine n the Great Barrier Reef HERO EXPERIENCE: Wrld s Oldest Trpical Rainfrest Feel the tranquility and adventure f an authentic awe inspiring cnnectin with nature as yu explre this ancient trpical rainfrest and the plants, animals and peple that inhabit it! HERO EXPERIENCE: Trpical lifestyle & culture Sak up the best f what this trpical paradise has t ffer, the lcal culinary delights, culture, utdr events, laid back lifestyle and lcal character HERO EXPERIENCE: Adventure Experience yur wn adventure, frm adrenalin filled t adventures in natures playgrund f remte and untuched landscapes f the savannah cuntry t the majestic intricacies f the rainfrest and reef HERO EXPERIENCE: Abriginal & Trres Strait Island Peple Cnnect with the culture and creativity f the regins vibrant indigenus peple. Discver their distinct cultures and listen t the ancient stries f the land and sea, learn f their ancestrs traditinal way f life.

Updated n: Friday, 5 July 2013 Target Segments Turism Australia Research 2020 prject Primary: Cuples, aged 30-49 years Secndary: Yung adults, Individuals, aged 23-29 Key Segments wh they are: Experiences Match what they want t d: Precincts Match where they can d it: MICE and Study market will als be mnitred in partnership with Businss Events and Targeted segments - Gegraphic: Primary and Secndary cities in terms f drivers fr leisure travel (13 selected target cities) Targeted segments Experience: Relatively experienced traveller Almst 70 per cent have travelled fr leisure utside f Asia in the last 12 mnths Strng desire t visit Australia s icnic attractins Seeing the Sydney Opera Huse, the Great Barrier Reef, native animals are high n their list Wrld Heritage Listed Great Barrier Reef; Wrld Heritage Listed Rainfrest; Wildlife encunter Experience difference t hme envirnment Leisure and Lifestyle; Island excursin/ Luxury Mix f natural envirnment, culture, histry and develpment tgether with gf prducts and services fr accmmdatin, eating ut, different cuisine ptins Abriginal & Trres Strait Islander Culture; Fresh Fd/ Restaurant dinning Safety, have a laid back and easy ging hliday Value fr mney Welcming and friendly envirnment Well knwn htel, minimum 3.5 stars Chinese speaking tur guide, fd Lcal shpping fr lcal items, brands; Gambling and luxury shpping Cairns & Great Barrier Reef Palm Cve Athertn Tablelands & Kuranda Prt Duglas & Daintree Niche Experiences Island n Great Barrier Reef (ver night experience) Fitzry Island, Green Island, Lizard Island, Bedarra Island Glf experiences - Palm Cve, Prt Duglas & Daintree Deepsea Fishing experiences - Prt Duglas & Daintree, Cktwn & Cape Yrk Pre-Wedding phtgraphy varius lcatins

Updated n: Friday, 5 July 2013 Demgraphics 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Age f Greater China Visitrs t TTNQ YE Dec 12 0 YE DEC 05 YE DEC 06 YE DEC 07 YE DEC 08 YE DEC 09 YE DEC 10 YE Dec 11 YE DEC 12 15 t 24 25 t 34 35 t 44 45 t 54 55 t 64 65 and ver

Updated n: Friday, 5 July 2013 Travel Party - Greater China Visitrs t TTNQ YE Dec 12 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 YE DEC 05 YE DEC 06 YE DEC 07 YE DEC 08 YE DEC 09 YE DEC 10 YE DEC 11 YE DEC 12 Unaccmpanied traveller Adult cuple Family grup - parent(s) and children Friends and/ r reladves travelling tgether Business assciates travelling tgether with r withut spuses Schl tur grup (teachers and/r students) (2011 nwards)

Updated n: Friday, 5 July 2013 Market Activity 1. Grw market share and increase visitr expenditure Ø grw internatinal market share fr all visitrs t TNQ frm 13% t 16% Ø increase TNQ s internatinal visitr expenditure frm $605M t $1.1B and dmestic visitr expenditure frm $1.44B t $1.85B by 2015 Key Strategic Outcmes: Leverage marketing partnerships Increase the regin s digital reach Strengthen destinatin appeal thrugh media and publicity Actively prmte the diversity f ur regin t ur custmer segments within pririty grwth markets Grw visitatin in shulder seasns Activity: Increasing ttal visitr numbers, expenditure and grwing market share Shape and influence custmers travel destinatin decisin and experiences by maximising media pprtunity, including prminent media prject such as TV drama series/ mvie with A-List celebrities as leading characters Fully develp and actualise Expand the prduct available t the market, including Hng Kng, a mre mature market fully develp digital marketing platfrm and scial media t ech with varius campaign and feed infrmatin t cnsumers Fully utilise partnership and initiate trade and media famil, including airlines, travel trade in Greater China, ITOs, Chinese media Partner and supprt TA PASP and ASP prgram, including famil, in China, Hng Kng and Taiwan Increasing ttal visitr expenditure Wrk with Chinese travel trade t increase the length f stay and the ttal number f experiences by using mre varieties f prducts Prvide pprtunities fr TTNQ members t engage in Greater China market and supprt tgether with membership management n destinatin/ Prduct develpment t match market expectatin. Including TTNQ Sales Missin 2013 and sales seminars Wrk clsely with ITO t raise destinatin knwledge and streamline tactical sales campaigns executin, and expend the prduct diversities, including new t market prducts and services Cultivate and attract high-end custmers, including markets such as Hng Kng and 1 st tier Mainland Chinese cities Strengthen travellers destinatin knwledge thrugh custmer fcused travel materials e.g. guide bk and internet materials Grw market share Strengthen and maintain Cairns as a must visit Australia destinatin in rganised grup turs; initiate and execute sales campaigns in key markets frm whle greater China with varius partners fr GIT and FIT markets Develp and partner with Sydney, Melburne and Brisbane retail travel agents in China Twn t grw bigger market share Raise the awareness f Cairns as a FIT destinatin e.g. publish Chinese guidebk, utilising China map Participate trade missin and cnsumer exps t raise destinatin prfile

Updated n: Friday, 5 July 2013 2. Strategic Aviatin Grwth Ø Grw internatinal seats (incming) frm 478,764 t 800,000 Ø Grw dmestic seats (incming) frm 2,000,000 t 2,700,000 Key Strategic Outcmes: Grw capacity n existing Dmestic and Internatinal rutes Secure direct services frm Singapre, Nagya and Guangzhu Increase year rund charter capacity frm Asia Maximise interline aviatin agreements Activity: Wrking with CAPL, TA and TEQ; TTNQ t grw direct services frm Cairns by Chinese airlines Maximise China Eastern scheduled direct services t daily by 2015 Maximise the ptential f increasing capacity fr Chinese passengers in dmestic services Maximise the ptential f seasnal direct services, including peak seasn charters (Chinese New Year) Striving bigger market demand and travel desire t supprt direct services by wrking with the respective airlines, turism bards and trade partners in mainland China Supprting airlines t develp hub strategy Mnitr the ptential f China Suthern and Air China n Australia rute 3. Sustainable Funding Ø Increase turism marketing by a minimum f $3M annually Key Strategic Outcmes: Increase TTNQ membership revenue Increase lcal State Gvernment funding Maximising grant pprtunities Increase revenue frm marketing partners Activity: Leverage marketing fund with ther turism rganisatins and trade partners Explre grant and new funding

Updated n: Friday, 5 July 2013 4. Destinatin Management Partnerships Ø Develp partnerships with agencies that carry respnsibility fr investment, labur and skills, and infrastructure develpment t achieve grwth Key Strategic Outcmes: Develp partnerships with lcal gvernment, Advance Cairns, Chamber f Cmmerce, QTIC fr investment infrastructure develpment and industry advcacy with Wet Trpics, GBRMPA, Natinal Parks fr nature based turism wrking thrugh the alliance f sustainable turism with TAFE, JCU, ATEC and QTIC n skills develpment Mnitr and reprt against utcmes within the TNQ REP Mnitr utcmes f Destinatin Q Activity: Partner with LTOs, Advance Cairns, Chamber f Cmmerce, JCU, Study Cairns and Cairns reginal cuncils Clsely wrk with CADCAI t prvide a welcme Chinese envirnment

Updated n: Friday, 5 July 2013 Market Intelligence Mainland China Accrding t China Turism Academy 2013 seasn 1 survey n Outbund Travellers Custmer Satisfactin, Australia ranked 13 n verall custmer satisfactin amng the 22 cuntries. Accrding t Chinese Natinal Turism Administratin (CNTA), there are ttal f 83 millin Chinese utbund travellers in 2012 frm 10 millin in 2000. 1/3 f utbund travel frm China travelled medium and lng haul. Frm UNWTO, China utweighed US and became the wrld s largest cuntry in turism expenditure, reaching 102 billin US dllars. CNTA intrduced new turism law in China, which will be effective in Oct 2013, regulating all utbund and inbund turs that rganised in China. There are 13.5 millins peple wrking in travel industry in China, and 80 millins wrk in industry indirectly related t travel industry. China is Australia's largest inbund market by value, and vertk UK becme the 2 nd largest inbund market t Australia. Findings frm TA PWC 2020 Distributin study shws: Cnsumers are still hesitant t bk nline, with 86% f hliday visitrs t Australia in the year ending March 2012 nt bking any element f their trip nline. (Cmpared t 54% as an verall average frm Australia s lng haul markets). Chinese cnsumers shw a strng desire t bk thrugh nline channels. Hwever, reprted behaviur indicates this desire r intentin is nt carried thrugh, with Chinese visitrs mre likely t a bk thrugh ffline travel agents. All ffline bking channels are generally used in higher prprtins relative t the market averages. Travel trend: Changing travellers behavirs lead t travel prduct diversificatin, increasing demand n tailr made tur, small grup tur, individuals tur. Mre travellers mved frm stp the bus and take phts kind f sightseeing t requesting quality experience, such as knwing the histry f the attractins, behind the scene tur, and visit famus restaurant r stay in famus htel. And yet, in reality, due t the wide rage f dispsable incme in China, 55% f utbund travel remains t be sightseeing tur. Digital platfrm is the mst cmmn platfrm fr Chinese travellers t search fr travel infrmatin. Greater acceptance f Unin Pay which encurages increase in expenditure. Key markets including Beijing, Shanghai and Guangzhu, Hng Kng are mre mature With the rapid ecnmic grwth in 2nd and 3rd tier cities in Central and Western China, it cntinuus t create mre middle classes frm thse regins, thus increase in demand f utbund travel. With the difference in ecnmic grwth and the level f wealth crated gegraphically, it will diversify travel pattern, prduct requirements and expectatin and expect different levels f custmer services. Financially, China is the wrld s 2 nd largest ecnmic bdy in the wrld after US, with GDP + 7.8%. Investment banks like Barclays frecast 2013 GDP f China will be at 7.4-7.5%. China Eastern airline will cmmence direct service frm Shanghai t Cairns 3 times weekly (Tue, Thu, Sat 9p.m. depart frm Shanghai/ arriving the next day 9a.m. lcal time) starting frm Oct 2013.

Updated n: Friday, 5 July 2013 Hng Kng and Taiwan Hng Kng market is mature, mre hlidaymakers and FIT will be expected while rganised grup will remain as the fundatin f the business t the regin. Hng Kng travellers are als savvier in searching turism experiences and accmmdatin. In Hng Kng, besides leisure markets, wrking hliday makers market is grwing significantly with the unlimited number f visas culd be grant Taiwan market maintain tugh withut direct aviatin access t Cairns. With unlimited wrking hliday visas and increasing ppularity, mre backpackers are expected frm this market Cmpetitive Destinatins t Cairns & Great Barrier Reef Overseas Extic Islands Maldives (China is the largest internatinal market t Maldives) Steretype t be a rich peple hliday destinatin Rmantic and very unique in the wrld Typical dream hliday, beach frnt and villas in the cean Hawaii Easy t assess Strng perceptin as a dream hliday destinatin Eurpe Great luxury brands shpping experiences with variety f prdcuts Lwer cst f travel (lwer air fare, less dmestic flights) Variety f experiences in varius cuntries USA (YE2011: 1.08mil Chinese travellers) & Canada Multi-entry visa American dream Natural landscape and yet gd experience in factry utlets with well knwn brands Campaigns Actined The Internatinal Trade Marketing Team are cntinually wrking with ur trade partners Turism Australia, Turism Queensland, Airlines and whlesale partners t implement campaigns t prmte the Cairns & Great Barrier Reef regin and the experiences n ffer t their custmers. Details n campaigns that have been in market can be fund at: http://ttnq.rg.au/marketing/china.aspx

Updated n: Friday, 5 July 2013 Future Activities Campaign Advertising / Sell Perid Travel Perid Cnsumer activities with retail agents t participate - leverage with tactical campaigns Mar 2014 Mar June 2014 Sales Seminars with whlesalers partners, Cnsumer activities leverage with sales turs China Eastern 3 weekly services cmprehensive campaign Aug 2013 Oct Dec 2013 Aug- Oct 2013 Oct Dec 2013 Tactical sales campaigns with varius retailers Oct- Nv 2013 Nv Feb 2014 Sales Seminars with whlesalers partners Mar 2014 Apr May 2014 Tactical sales campaigns with varius retailers Feb Apr 2014 Mar June 2014 Media and PR campaign - Glbal 13/14 ATE famil Leverage ATE pprtunities fr extensive famil May 2014 May 2014 Other Activities TTNQ Sales Tur China 2013 Aug 2013 Date Media famil 13/14 Trade famil Chinese Trade, ITOs, 13/14 TTNQ Chinese Ultimate Guide Bk 13/14 Tur Guide Training Sept 13 ; Jan 14 QOT, ATE Mar 14, May 14

Updated n: Friday, 5 July 2013 Marketing Events Calendar The Marketing Events Calendar is a wrking dcument and updated regularly, then upladed t ur crprate website. The Calendar cntains dates and events that we are aware f fr the cming twelve mnths. Link fr all events: http://www.ttnq.rg.au Key Whlesaler / Tur Operatr Partners PASP Chinese agents TA selected Premier Aussie Specialist Agency Tp agents f China Eastern Based n sales figures f China Eastern Majr Hng Kng retail agents GIT - Wing On Travel, GIT -Hng Thai Travel, GIT -Mrning Star Travel GIT -Miramar Travel, GIT EGL Travel FIT - Wincastle Travel, FIT Qantas Hliday, FIT Travel Expert Majr Taiwan agents Lins Travel Phenix Travel

Updated n: Friday, 5 July 2013 Precinct Message Cairns Cairns pulses with energy as the heart f the Great Barrier Reef and the Wet Trpics rainfrest. Mre than 600 turs a day make the mst f the year rund utdr lifestyle while wrld class sprting events and festivals embrace the csmplitan city s vibrant trpical culture. Gulf Savannah The Gulf Savannah is a vast, rugged land where natural attractins f extrardinary beauty including spectacular grges and lava tubes are in stark cntrast t the wide, pen spaces. Friendly characters and histric twns shwcase the utback s rich pineering heritage and ffer a true Australian adventure. Missin Beach Nature takes centre stage at Missin Beach with its lng unspilt beaches, deserted islands and white-water rivers fringed by rainfrest. There are n crwds at this seductive and easy ging destinatin which is perfect fr relaxatin r discvering adrenalin pumping utdr activities. Palm Cve A ccnut fringed beach sets the idyllic scene at Palm Cve fr lazy days relaxing n the beach r at a trpical resrt. Refine yur senses with gurmet treats at a beachfrnt restaurant, indulgent treatments at a spa r butique shpping fr fashin and art. Prt Duglas and Daintree Prt Duglas and Daintree is where the tw Wrld Heritage areas f the Great Barrier Reef and the Wet Trpics rainfrest meet. Revitalise yur spirit in the wrld s ldest trpical rainfrest and discver the charm f a butique trpical village with diverse accmmdatin, restaurants, shpping and spas. Tablelands and Kuranda The Tablelands and Kuranda is an uplifting destinatin f timeless villages, extic trpical fds, cuntry markets and diverse wildlife. A netwrk f scenic drives thrugh cntrasting landscapes makes it easy t explre waterfalls and crater lakes r taste fd and wine at its surce. Cktwn and Cape Yrk Rich with Abriginal culture and Australian pineering histry, Cktwn and Cape Yrk is an untamed wilderness area that cntinues t entice explrers. The jurney t the tp f Australia is an epic adventure taking in memrable pubs, ancient rck art and spectacular natural