TOURISM SATELLITE ACCOUNTS : Northern Territory

8.4% 14.2% 12.7% 10.8% TOURISM SATELLITE ACCOUNTS 2006 07: Northern Territory Thiep Van Ho, Ray Spurr, Daniel Pambudi, Peter Forsyth, Larry Dwyer and Serajul Hoque Sustainable Tourism Cooperative Research Centre Centre for Economics and Policy

Technical Reports The technical report series present data and its analysis, meta-studies and conceptual studies, and are considered to be of value to industry, government and researchers. Unlike the Sustainable Tourism Cooperative Research Centre s Monograph series, these reports have not been subjected to an external peer review process. As such, the scientific accuracy and merit of the research reported here is the responsibility of the authors, who should be contacted for clarification of any content. Author contact details are at the back of this report. We'd love to know what you think of our new research titles. If you have five minutes to spare, please visit our website to complete our online survey. Sustainable Tourism CRC Tech Report Feedback National Library of Australia Cataloguing-in-Publication entry Tourism satellite account Northern Territory 2006 07 / Thiep van Ho... [et al.] ISBN: 9781921521515 (pbk.), 9781921521522 (online). Notes: Bibliography. Subjects: Tourism Northern Territory Statistics. Other Authors/Contributors: Spurr, R., Pambudi, D., Forsyth, P., Dwyer, L., Hoque, S. Dewey Number: 338.47919429021 Copyright CRC for Sustainable Tourism Pty Ltd 2008 All rights reserved. Apart from fair dealing for the purposes of study, research, criticism or review as permitted under the Copyright Act, no part of this book may be reproduced by any process without written permission from the publisher. Any enquiries should be directed to: General Manager, Communications and Industry Extension or Publishing Manager, info@crctourism.com.au First published in Australia in 2008 by Cooperative Research Centre for Sustainable Tourism Pty Ltd Printed in Australia (Gold Coast, Queensland) Acknowledgements The Sustainable Tourism Cooperative Research Centre, established and supported under the Australian Government s Cooperative Research Centres Program, funded this research. This document results from a research project undertaken by the STCRC, in conjunction with Tourism Northern Territory. Qantas Airways Limited is a major supporter of STCRC and its Centre for Economics and Policy (CEP), through its sponsorship of the Qantas Chair in Travel and Tourism Economics at the University of New South Wales. ii

Authors The following members of the STCRC s Centre for Economics and Policy (CEP) contributed to this research: Dr Thiep Van Ho Senior Economic Modeller, STCRC CEP, Monash University Ray Spurr Director of STCRC CEP, Senior STCRC Research Fellow, School of Marketing, University of New South Wales Dr Daniel Pambudi Research Fellow, STCRC CEP, Monash University Professor Peter Forsyth Professor of Economics and Deputy Director, Tourism Research Unit, Monash University Professor Larry Dwyer Qantas Professor of Travel and Tourism Economics at the University of New South Wales Dr Serajul Hoque Research Fellow, STCRC CEP, Monash University Dr Ho played a key role in developing the methodology and analysis for this report. Dr Pambudi was responsible for research and assembling of data. iii

CONTENTS ACKNOWLEDGEMENTS II LIST OF FIGURES V LIST OF TABLES V ABSTRACT VI AUTHORS III SUMMARY DIRECT CONTRIBUTION OF TOURISM VII INDIRECT CONTRIBUTION OF TOURISM VIII CHAPTER 1 INTRODUCTION 1 CHAPTER 2 ANALYSIS OF RESULTS 4 DIRECT CONTRIBUTION OF TOURISM 4 Overview 4 Tourism Industry GSP (By Type of Visitor) 6 Tourism Consumption 7 Tourism Industry Output 8 Tourism Industry GVA 9 Tourism Employment 10 Comparison with Non-Tourism Industries 11 Taxes on Tourism Products 11 INDIRECT CONTRIBUTION OF TOURISM 15 DATA TABLES 17 APPENDIX A: CONTRIBUTION OF TOURISM TO NT ECONOMY, 2003 04 41 APPENDIX B: CONCEPTS, SOURCES AND METHODS USED IN DEVELOPING TOURISM SATELLITE ACCOUNTS (TSA) FOR THE AUSTRALIAN STATES AND TERRITORIES 42 APPENDIX C: DEFINITIONS OF SELECTED TERMS USED IN THIS REPORT* 44 REFERENCES 45 GLOSSARY 47 VII iv

LIST OF FIGURES Figure 1: Share of tourism in total Australian and NT GVA, 2006 07 5 Figure 2: Share of tourism in total Australian GDP and NT GSP, 2006 07 5 Figure 3: Share of tourism in total Australian and NT employment, 2006 07 6 Figure 4: Tourism GSP by type of visitor, NT, 2006 07 6 Figure 5: Share of domestic tourism GSP by type of visitor, NT, 2006 07 7 Figure 6: Share of tourism consumption by type of visitor, NT, 2006 07 7 Figure 7: Share of tourism industry output by industry sector, NT, 2006 07 8 Figure 8: Share of tourism industry GVA by industry sector, NT, 2006 07 9 Figure 9: Share of tourism employed persons by industry sector, NT, 2006 07 10 Figure 10: Tourism GVA, compared with GVA from non-tourism industries, 2006 07 11 Figure 11: Net taxes on tourism products, NT, 2006 07 12 Figure 12: Direct and indirect contribution of tourism to the NT economy 2006 07 16 LIST OF TABLES Table 1: Tourism share of GVA and GSP (Domestic) 17 Table 2: Tourism industry gross state product (GSP), by type of visitor 18 Table 3: Tourism industry output at basic prices, by tourism industry sector 19 Table 4: Tourism industry gross value added (TGVA) 21 Table 5: Industry gross value added, by ANZSIC industry division, NT and AUS, 2006 07 (a) 24 Table 6: Tourism consumption, by type of visitor 25 Table 7: Domestic tourism consumption, by length of stay 31 Table 8: Tourism consumption, by Australian residents, outbound trips, NT and AUS 37 Table 9: Tourism consumption, by non-residents, inbound trips, NT and AUS 37 Table 10: Persons employed in tourism 38 Table 11: Net taxes on tourism products 40 Table A1: Estimates of direct, indirect and total contribution of tourism, NT and AUS, 2003 04 41 v

Abstract This report provides a Tourism Satellite Account (TSA) for the state of Northern Territory for the year 2006 07. The TSA includes estimates of the economic contribution of tourism to gross value added (GVA), gross state product (GSP), and employment. It also provides information about tourism consumption, output, and taxation and regarding the composition of the tourism industry and its interaction with other industries. A TSA normally covers only the direct economic contribution of tourism. However, to produce tourism output to satisfy tourism consumption also requires inputs and outputs from other non-tourism industries. This in turn generates additional indirect effects on GVA, GDP/GSP and on employment. In this report, we provide direct and also indirect effects of tourism on the state economy for 2006 07. While the overall method and data sources adopted in this report is broadly similar to that used in STCRC's 2003 04 TSA report, changes in data sources mean that the two sets of results are not directly comparable. This is particularly the case for the employment estimates for the Northern Territory where changes in employment output ratios adopted in two important industry sectors appear to have resulted in a significant over-estimation of Northern Territory tourism employment for 2003 04. vi

SUMMARY Direct Contribution of Tourism Tourism s direct contribution to Northern Territory s gross state product (GSP) in 2006 07 was $934 million: This was 6.4% of total GSP generated by all industries in Northern Territory. It compares with tourism s contribution to Australia s gross domestic product (GDP) of 3.7%. Tourism contributed $776 million to Northern Territory s gross value added (GVA): This was 5.8% of total GVA generated by all industries in Northern Territory. It can be compared to tourism s contribution to GVA for Australia as a whole of 3.4%. Northern Territory s share of tourism GVA in Australia as a whole was 2.4%. This compares with Northern Territory s share in GVA for all Australian industries of 1.4%. Tourism GVA included $124.6 million from interstate trade effects that arise from the production of goods and services in Northern Territory, which are subsequently consumed by visitors in the other Australian states or territories. Tourism GSP is derived by adding net taxes on products consumed by tourists (including taxes on imports consumed by tourists) to tourism GVA. GVA is the most widely accepted measure of the contribution of an industry to the economy. GSP measures are commonly used in relation to tourism, however, including usage by the Australian Bureau of Statistics in its Australian (national) Tourism Satellite Account (ATSA) 1. Tourism GVA in Northern Territory was generated in a wide range of industries including: Air and water transport (responsible for 16.7% of Northern Territory s tourism GVA), accommodation (15.2%), other retail trade (12.7%), motor vehicle hiring (8.1%), travel agency and tour operator services (8.1%), cafés, restaurants and food outlets (8.0%), other road transport (7.9%), education (3.2%), and clubs, pubs, taverns and bars (2.6%). Net taxes on products arising from tourism consumption in Northern Territory raised $158.1 million in federal, state and local government revenues: This does not include taxes on production, such as payroll tax and fringe benefits Tax (FBT). Further information in relation to those taxes is provided in a separate STCRC CEP report State and Federal Taxes on Tourism in Australia: estimates for 2003 04 2. Major sources of tax revenues were fuel ($54 million), alcohol ($21 million), takeaway and restaurant meals ($17 million), shopping ($16 million), accommodation services ($12 million) and gambling ($11 million). Net taxes on long distance and on local area passenger transportation were -$3 million and -$4 million respectively because of government subsidies. Tourism was directly responsible for generating 9,682 jobs in the Northern Territory economy: This was 9.4% of all jobs in Northern Territory. It can be compared to tourism s share of total employment in Australia of 4.7%. Northern Territory s share of tourism jobs in Australia as a whole was 2.0%. This compares with Northern Territory s share of all Australian jobs of 1.0%. Tourism employment in Northern Territory included 852 jobs, which are engaged in production of goods and services for tourism consumption in the other Australian states and territories, referred to here as interstate trade. Tourism employment was spread across a wide range of sectors of the Northern Territory economy: 31.0% of these jobs were in retail trade, 13.5% in accommodation, 10% in road transport and motor vehicle hiring, 10.0% in travel agency and tour operator services, 9.1% in air and water transport, 7.4% in cafés and restaurants, 3.9% in education, and 3.4% in clubs, pubs, taverns and bars. Tourism contributed significantly to employment in a number of industries which are identified in the System of National Accounts (SNA): 1 Australian Bureau of Statistics 2008a 2 Forsyth et al (2007) vii

Tourism had the largest share in the transport and storage industry accounting for 46.4% of total employment in this industry in Northern Territory. Tourism was responsible for 34.0% of employment in Northern Territory in the accommodation, cafés and restaurants industry. Tourism was responsible for 24.5% of employment in Northern Territory in the retail trade industry. Tourism was responsible for 9.7% of employment in Northern Territory in the communication services industry. Tourism was responsible for 8.9% of employment in Northern Territory in the cultural and recreational industry. Tourism was responsible for 5.0% of employment in Northern Territory in the manufacturing industry. Tourism was responsible for 4.7% of employment in Northern Territory in the education industry. Analysis of tourism s share of GSP at factor cost in Northern Territory for industries identified in the SNA shows that: Tourism had the largest share in the accommodation, cafés and restaurants industry, contributing 59.1% of total GSP at factor cost for this industry in Northern Territory. Tourism was responsible for 44.8% of total GSP at factor cost in the Northern Territory s transport and storage industry. Tourism was responsible for 17.7% of total GSP at factor cost in the Northern Territory s retail trade industry. Tourism was responsible for 10.8% of total GSP at factor cost in the Northern Territory s cultural and recreational industry. Tourism was responsible for 7.2% of total GSP at factor cost in the Northern Territory s communication services industry. Tourism was responsible for 6.0% of total GSP at factor cost in the Northern Territory s property and business services industry. Tourism was responsible for 4.4% of total GSP at factor cost in the Northern Territory s personal and other services industry. Tourism was responsible for 4.3% of total GSP at factor cost in the Northern Territory s education industry. Indirect Contribution of Tourism Tourism s indirect economic contribution to the Northern Territory economy in 2006 07 was: $703 million of industry GVA $749 million of GSP 7,315 jobs. The total of direct plus indirect tourism contribution generated by tourism and non-tourism industries in the Northern Territory economy was: $1.5 billion in GVA $1.7 billion in GSP 16,997 jobs. viii

Chapter 1 INTRODUCTION This report provides estimates of the contribution of tourism to the economy of Northern Territory for the financial year 2006 07. It has been produced as part of a project by the Centre for Economics and Policy (CEP), a research unit of the Sustainable Tourism Cooperative Research Centre (STCRC) in partnership with the Australian states and territories. The report updates results obtained in a previous set of Tourism Satellite Account (TSA) reports prepared by the STCRC CEP for the year 2003 04 3. The project has involved developing a set of TSA for each Australian state and territory. The reports adopt the internationally agreed TSA methodology and definitions 4 and follow the same structure as the Australian TSA (ATSA) published nationally by the Australian Bureau of Statistics (ABS) 5. Each report is consistent in terms of concepts, definitions and primary tourism data sources with ATSA. The development of the eight TSA has involved finding solutions to a range of issues, including those arising from the differing industrial structures between the states, data limitations at the state and territory level including, in particular, data on interstate trade, and the need to ensure overall consistency in methods, definitions and aggregate results with the national ATSA. To deal with the above problems a combination of top-down and bottom-up data and analysis has been used. Wherever possible, state specific data has been used to construct the TSA for each state and territory. However, in order to maximise consistency across the eight TSA, and importantly with the national TSA, it has also been necessary to use consistent data sets wherever possible. Thus Input-Output tables for each state have been derived from the MMRF Computable General Equilibrium (CGE) model developed by the Centre of Policy Studies (CoPS) at Monash University 6. Tourism expenditure data comes from a tourism data set produced by the federal government tourism research and statistical agency, Tourism Research Australia (TRA), under which top-down and bottom-up information has been used to allocate visitor expenditure from the two major national tourism surveys (the International Visitor Survey, IVS, and the National Visitor Survey, NVS) to each of the states 7 together with TRA CD-MOTA 8, Compact Disk-Monitor of Tourist Activity (further details on data sources and methods are provided in Appendix B). On completion of preliminary TSA estimates for each of the eight state or territories, the results were reconciled with ATSA to ensure that the individual state results sum to the national totals and that individual data problems have been resolved in ways which do not detract from overall consistency across the national and state TSA. ATSA considers only the direct effects of tourism expenditures. This is consistent with the internationally agreed TSA methodology 9. While direct effects are considered to be the most appropriate measure for comparison of the economic contribution of tourism with other non-tourism industries, the aggregation of tourism s direct and indirect effects can be useful, for example, in the context of economic impact analysis or as an aid to understanding the wider flow on effects of tourism to employment across the economy. Estimates of the indirect contribution of tourism to the Northern Territory economy for 2006 07 have been included as an additional set of information in this report. 3 Spurr et al (2007a-2007h) 4 OECD et al. 2007 5 Australian Bureau of Statistics 2008a 6 Adams 2008 7 Tourism Research Australia 2008 8 Tourism Research Australia 2007a 9 OECD et al. 2000

A particular complication in developing the state and territory TSA has been that, unlike in the case of a national TSA such as the ATSA, state and territory TSA need to include a term for interstate trade in tourism. A state may produce tourism goods and services which are consumed in another state. For example, one state may produce manufactured goods which are exported to another state for consumption by tourism, or an airline may be based in one state but provide services to tourists within another state. If these were not counted as part of state tourism production then the aggregate of state tourism production would be inconsistent with the national data in provided in ATSA. Several of the sources and methods used to compile the 2006 07 TSA reports have involved improvements over the earlier 2003 04 reports. Every effort was made to keep the results comparable with those provided in the earlier set of TSA, however, a number of changes have occurred. These include that the 2006 07 report was benchmarked to ATSA data released by the ABS in 2008, which incorporated revisions subsequently made by the ABS to the 2007 ATSA. STCRC s 2003 04 results had, however, been benchmarked according to the 2007 ATSA estimates. Secondly, a revised and updated version of the MMRF data base was adopted for the 2006 07 report. This led to changes in the employment output ratios used between the two periods. These differences in data and application mean that comparison between the 2006 07 and 2003 04 TSA results should be approached with considerable caution. This is particularly so in relation to employment data for the Northern Territory where marked differences have been identified for two industry sectors: tour operators and travel agents, and air and water transport. In the light of current knowledge and modelling, STCRC believe that the 2003 04 TSA employment estimates for the Northern Territory were improbably large and may have resulted in an over-estimation of total tourism employment in the NT for that year of up to 1,500 jobs. While the data and model revisions make it impossible to accurately re-estimate the 2003 04 employment figures, it seems likely that there has, in fact, been little if any significant change in tourism employment in the Northern Territory between the two periods. The absence of significant growth in tourism employment, despite growth in Northern Territory tourism activity over the period, can be explained by strong competition for labour across the Northern Territory economy generally, especially from the mining sector. This is likely to have forced improvements in labour productivity in tourism related industries. Such improvements in tourism labour productivity should be expected, and welcomed, in the environment of strong employment growth experienced by the Northern Territory over recent years. A summary table of the results from STCRC s 2003 04 TSA is attached at Appendix A for reference. TSA are static sets of accounts designed to complement the normal data sets published in the System of National Accounts. They can measure the size or economic contribution of the tourism industry, in terms of such variables as output, value added, and with the inclusion of an employment module as provided here, employment. They also provide information about the detailed composition of the industry, for example, by indicating how much value added is present in the accommodation part of the industry or the local transport part. This information about the size of the industry is useful for policy makers and in applications which require measures of the size and content of the tourism industry. Thus, for example, TSA for Australia have been used to measure trends in the productivity, prices, and profitability of the tourism industry as a whole 10. TSA, however, are not, per se, economic impact models. Impact models are models which are used to estimate the impact that one change, for example, a boom in inbound tourism to a region, will have on economic variables of interest, such as gross output in the region, or employment. A subsequent phase of the STCRC CEP research will be to link the state and territory TSA with tourism Computable General Equilibrium (CGE) based economic impact models. The resulting suite of tourism CGE models and TSA developed will make it possible to explore a wide range of tourism measurement and economic impact issues at the state and national levels in Australia. These could include detailed analysis of the impacts of changes in various aspects of tourism demand or of the likely impacts of changes in government policy settings. These economic impact models are expected to be completed in the first half of 2009. 10 Dwyer et al. 2005 2

The resulting linked and fully integrated suite of eight state and territory TSA and tourism CGE models will be unique in the world for its provision of rigorous and consistent statistical data on the economic contribution of tourism across each of the state and territory economies, using internationally and nationally endorsed concepts and definitions, and fully reconciled with the national TSA produced by Australia s official statistical agency, the Australian Bureau of Statistics. It will provide a hitherto unavailable resource for understanding tourism s economic contribution and for future analysis and research at the Australian national and state and territory levels. An explanation of the concepts, methods and data sets which were used in this report is provided at Appendix B. 3

Chapter 2 ANALYSIS OF RESULTS Direct Contribution of Tourism Overview Tourism industry gross value added (tourism GVA) represents the total basic value of Australian produced goods and services consumed by all visitors (international, interstate, intrastate, and outbound) after deducting the costs of goods and services used in the process of production. Value added is the most widely accepted measure of the contribution of an industry to the economy. By adding in the net taxes on products consumed by tourists (including taxes on imports consumed by tourists), we have a measure of tourism industry gross state product (tourism GSP). Direct contribution of tourism, NT and AUS, 2006 07 Direct contribution NT AUS Share (%) Tourism GVA ($m) 775.777 32306.021 2.4 Tourism net taxes on products ($m) 158.144 6630.048 2.4 Tourism GSP, GDP ($m) 933.921 38936.070 2.4 Tourism employment ('000) 9.682 482.900 2.0 GVA ($m) 13369.548 961880.260 1.4 Tourism share of GVA (%) 5.803 3.400 GSP, GDP ($m) 14494.000 1046364.000 1.4 Tourism share of GSP, GDP (%) 6.444 3.700 Employment ('000) 102.462 10302.419 1.0 Tourism share of employment (%) 9.449 4.687 4

Tourism GVA in Northern Territory is estimated to have been $775.8 million, or 5.8% of the total industry GVA for all industries in Northern Territory, during 2006 07. This includes interstate trade effects of $124.6 million which arise from the production of goods and services in Northern Territory which are subsequently consumed by visitors in the other Australian states or territories. Tourism s 5.8% share of Northern Territory GVA compares with the ABS estimate of 2006 07 tourism GVA for Australia as a whole of 3.4% 11, as illustrated in Figure 1. Tourism gross value added AUS NT Figure 1: Share of tourism in total Australian and NT GVA, 2006 07 Total net taxes on products consumed by visitors in Northern Territory equal $158.1 million. This results in estimated tourism GSP of $933.9 million, or 6.4% of gross state product in Northern Territory. This compares with tourism s estimated 3.7% share of national gross domestic product 12, as illustrated in Figure 2. Tourism gross state product AUS NT Figure 2: Share of tourism in total Australian GDP and NT GSP, 2006 07 In 2006 07, tourism in Northern Territory was responsible for the employment of 9,682 persons (including an interstate trade effect of 852 jobs) or 9.4% of all persons employed in Northern Territory. This compares to the tourism share in total employment nationally of 4.7% 13, as illustrated in Figure 3. The Northern Territory share of total national tourism employment was 2.0%. This compares to the Northern Territory share of total employment in Australia of 1.0%. 11 Australian Bureau of Statistics 2008a 12 Australian Bureau of Statistics 2008a 13 Australian Bureau of Statistics 2008a 5

Tourism employment AUS NT Figure 3: Share of tourism in total Australian and NT employment, 2006 07 The above estimates reflect only the direct effects of tourism consumption on the Northern Territory economy. Indirect effects of tourism are reported in the separate section on the indirect contribution of tourism. Tourism Industry GSP (By Type of Visitor) In 2006 07, tourism GSP was $933.9 million. Interstate tourism accounted for the largest share of tourism GSP (54.8%), followed by inbound international tourism (21.8%), interstate trade in goods and services for tourism related consumption (13.3%), intrastate tourism (9.5%), and expenditure within Northern Territory by tourists as part of their outbound international travel (0.5%), as illustrated in Figure 4. Tourism gross state product (NT) Figure 4: Tourism GSP by type of visitor, NT, 2006 07 Domestic tourism accounted for 64.8% of tourism GSP in Northern Territory. Of this, overnight tourism was the largest component accounting for 61.2%, followed by same day tourism (3.1%), and outbound tourism (0.5%), as illustrated in Figure 5. 6

Domestic tourism gross state product (NT) Tourism Consumption Figure 5: Share of domestic tourism GSP by type of visitor, NT, 2006 07 Tourism consumption is the total consumption of all visitors, or made on behalf of a visitor, for and during his or her trip and stay at the destination. It includes actual and imputed expenditures (for certain services for which no payment is made such as the imputed rental for accommodation in a self owned holiday home). Also included is consumption before and after the trip provided the expenditures are related to the trip, such as the purchase of luggage or film processing. Tourism consumption in Northern Territory in 2006 07 was $2.2 billion. This was 2.6% of total tourism consumption in Australia ($84.8 billion). Shares of expenditure by inbound, intrastate, interstate and outbound visitors in total tourism in Northern Territory were 26.1%, 15.0%, 57.6% and 1.3%, respectively, as illustrated in Figure 6. Tourism consumption Figure 6: Share of tourism consumption by type of visitor, NT, 2006 07 7

Tourism Industry Output Tourism industry output measures the value of goods and services produced by establishments to satisfy visitor consumption, excluding net taxes (taxes less subsidies). Total tourism industry output in Northern Territory in 2006 07 was $1.6 billion. Air and water transport was the largest component of tourism industry output at 23.4%, followed by accommodation (15.1%), cafés, restaurants and food outlets (11.8%), other retail trade (10.6%), other road transport (6.4%), motor vehicle hiring (6.2%), travel agency and tour operator services (6.0%), club, pubs, taverns and bars (3.0%), and education (2.1%), as illustrated in Figure 7. Tourism industry output (NT) Figure 7: Share of tourism industry output by industry sector, NT, 2006 07 8

Tourism Industry GVA Total tourism industry GVA Northern Territory was $776 million. Air and water transport was the largest component of tourism industry output at 16.7%, followed by accommodation (15.2%), other retail trade (12.7%), motor vehicle hiring (8.1%), travel agency and tour operator services (8.1%), cafés, restaurants and food outlets (8.0%), other road transport (7.9%), education (3.2%), and club, pubs, taverns and bars (2.6%), as illustrated in Figure 8. Tourism industry gross value added (NT) Figure 8: Share of tourism industry GVA by industry sector, NT, 2006 07 9

Tourism Employment In 2006 07, tourism consumption generated 9,682 employed positions in Northern Territory or 9.4% of total employment in the state. For the purposes of this study, tourism employed persons has been derived by multiplying the number of employed persons in the each industry by the proportion of total output of the industry which is related to tourism. An employed person is aged 15 years or over who, during the reference week of the relevant labor force survey, worked for one hour or more for pay, profit, commission or payment in kind in a job or business. Retail trade had the largest share in tourism employment at 31.0%, followed by accommodation (13.5%), road transport and motor vehicle hiring (10.0%), travel agency and tour operator services (10.0%), air and water transport (9.1%), cafés and restaurants (7.4%), education (3.9%), and clubs, pubs, taverns and bars (3.4%), as illustrated in Figure 9. About 852 jobs, or 8.8% of these positions, are engaged in production of goods and services for export for tourism consumption in other states and territories, referred to in this report as interstate trade (see table 10). Tourism employed persons (NT) Figure 9: Share of tourism employed persons by industry sector, NT, 2006 07 10

Comparison with Non-Tourism Industries In 2006 07, tourism industry GVA in Northern Territory was $776 billion. This equated to 5.8% of Northern Territory GVA. When compared to the 18 main traditional industries in Northern Territory, as identified in the Australian and New Zealand Standard Industrial Classification (ANZSIC), tourism ranked sixth in terms of contribution to gross value added. It ranked below mining, ownership of dwellings, government administration and defence, property and business services, and construction, as illustrated in Figure 10. Share of total NT GVA by industry (%) Figure 10: Tourism GVA, compared with GVA from non-tourism industries, 2006 07 The percentage share of Northern Territory s tourism GVA in Australia s tourism GVA, at 2.4%, is above the average percentage share of Northern Territory in GVA for all Australian industries of 1.4%. Taxes on Tourism Products Net taxes on tourism products due to consumption of tourism in Northern Territory totaled $158.1 million in 2006 07. This includes only net taxes (taxes less subsidies) on tourism products. This conforms to the practice in ATSA. Included are federal, state and local level taxes including the goods and services tax (GST). This was 2.4% of total taxes on tourism products for Australia as a whole. The major sources of tax revenue were fuel including petrol and diesel ($54.1m), alcoholic beverages and other beverages ($21.5m), takeaway and restaurant meals ($17.2m), shopping including gifts and souvenirs ($15.9m), accommodation services ($11.7m), gambling and betting services ($11.4m), motor vehicle hire and lease ($7.0m), recreational, cultural and sports services ($4.0m), and food products ($2.9m), as illustrated in Figure 11. Net government subsidies of $2.7 million were paid on long distance passenger transportation and $4.4 million were paid on local area passenger transportation. 11

Net taxes on tourism products (NT) Figure 11: Net taxes on tourism products, NT, 2006 07 Taxes were also involved in the production of tourism goods and services. These are not identified in the standard TSA structure and have not been included in this report. They are identified in a separate STCRC report for the year 2003 04. 14 14 Forsyth et al (2007) 12

Share of tourism GSP at factor cost by traditional industries, NT, 2006 07 Industry Tourism Total Share of Tourism, $m $m % Agriculture, forestry and fishing 0 315.8 0.0 Mining 0 3515.7 0.0 Manufacturing 18.4 762.8 2.4 Electricity, gas and Water 0 170.3 0.0 Construction 0 1042.2 0.0 Wholesale trade 0 275.3 0.0 Retail trade 98.2 555.5 17.7 Accommodation, cafés and restaurants 199.4 337.4 59.1 Transport and storage 267.9 598.1 44.8 Communication services 19 263.4 7.2 Finance and insurance 8.2 308.7 2.6 Property and business services 63.1 1042.6 6.0 Government administration and defense 1.5 1065 0.1 Education 24.7 570.5 4.3 Health and community services 22.3 743.7 3.0 Cultural and recreation services 21.6 200.8 10.8 Personal and other services 12.3 278.5 4.4 Ownership of dwellings 19.2 1323.3 1.5 GSP at factor cost 775.8 13369.5 2.3 Net taxes on products 158.1 1124.5 14.1 Gross state product 933.9 14494.0 6.4 Tourism GSP at factor cost is defined here as tourism industry gross valued added. The above table provides information on tourism value added by traditional industries for Northern Territory in 2006 07. The results show that tourism is responsible for the largest share of GSP produced in the accommodation, cafés and restaurant industry (59.1%), followed by transport and storage (44.8%), retail trade (17.7%), cultural and recreational services (10.8%), communication services (7.2%), property and business services (6.0%), personal and other services (4.4%) and education (4.3%). 13

Share of tourism employment by traditional industries, NT, 2006 07 Industry Tourism 000 Total 000 Share of Tourism, % Agriculture, forestry and fishing 0.000 3.028 0 Mining 0.000 1.882 0 Manufacturing 0.184 3.661 5.021 Electricity, gas and Water 0.000 1.129 0 Construction 0.000 7.622 0 Wholesale trade 0.000 3.289 0 Retail trade 3.005 12.259 24.514 Accommodation, cafés and restaurants 2.355 6.931 33.979 Transport and storage 2.453 5.287 46.392 Communication services 0.152 1.561 9.742 Finance and insurance 0.065 2.071 3.15 Property and business services 0.379 10.534 3.601 Government administration and defense 0.012 12.055 0.097 Education 0.377 8.019 4.706 Health and community services 0.178 10.696 1.663 Cultural and recreation services 0.423 4.776 8.858 Personal and other services 0.099 7.660 1.286 Total 9.682 102.462 9.449 The above table provides information on tourism employment in traditional ANZSIC industries for Northern Territory for the year 2006 07. The results show that tourism is responsible for the largest share of employment in the transport and storage industry (46.4%), followed by accommodation, cafés and restaurant (34.0%), retail trade (24.5%), communication services (9.7%), cultural and recreational services (8.9), manufacturing (5.0%), education (4.7%), property and business services (3.6%) and finance and insurance (3.1%). 14

Indirect Contribution of Tourism Indirect contribution of tourism, NT and AUS, 2006 07 Direct contribution NT AUS Share (%) Tourism GVA ($m) 775.777 32306.021 2.4 Tourism net taxes on products ($m) 158.144 6630.048 2.4 Tourism GSP, GDP ($m) 933.921 38936.070 2.4 Tourism employment ('000) 9.682 482.900 2.0 GVA ($m) 13369.548 961880.260 1.4 Tourism share of GVA (%) 5.803 3.400 GSP, GDP ($m) 14494.000 1046364.000 1.4 Tourism share of GSP, GDP (%) 6.444 3.700 Employment ('000) 102.462 10302.419 1.0 Tourism share of employment (%) 9.449 4.687 Indirect contribution NT AUS Share (%) Tourism GVA ($m) 703.202 27938.817 2.5 Tourism net taxes on products ($m) 45.455 1633.190 2.8 Tourism GSP, GDP ($m) 748.657 29572.007 2.5 Tourism employment ('000) 7.315 365.891 2.0 Total contribution NT AUS Share (%) Tourism GVA ($m) 1478.979 60244.835 2.5 Tourism net taxes on products ($m) 203.599 8263.238 2.5 Tourism GSP, GDP ($m) 1682.578 68508.072 2.5 Tourism employment ('000) 16.997 848.791 2.0 In 2006 07, total tourism consumption in Australia was $84.8 billion. In terms of direct economic contribution, this tourism consumption generated $71.6 billion of Australian industry output, $32.3 billion of industry gross value added, $38.9 billion of gross domestic product, and 482,900 jobs (source: ABS Tourism Satellite Account, 5249.0, 2006 07) 15. These direct contributions of tourism represent 3.4% of Australia s GVA, 3.7% of GDP, and 4.7% of total employment. In order to produce $71.6 billion of Australian industry output as required to satisfy the tourism consumption, Australian industries use inputs from both tourism and non-tourism industries. Via inter-industry linkages, this input demand generates an indirect effect on Australia s industry output, and hence on its value added, GDP and employment. Using an input-output model with some adjustments to ensure consistency with the STCRC TSA analysis, it is estimated that tourism consumption in 2006 07 produced an indirect economic contribution of $28.0 billion on Australia s industry gross value added, $29.6 billion on its GDP, and 366 thousand jobs. 15 Australian Bureau of Statistics 2008a 15

For Northern Territory it is estimated that tourism consumption in 2006 07 produced an indirect economic contribution of $703 million to Northern Territory industry GVA, $749 million to GSP, and 7,315 jobs. Tourism s indirect contribution to Northern Territory GSP of $749 million was equal to 2.5% of Australia s total indirect tourism GDP, 2.5% of total indirect tourism GVA, and 2.0% of total indirect tourism employment generated by tourism and non-tourism industries in Australia. The total direct plus indirect contribution of tourism to the Northern Territory economy in 2006 07 was: $1,479 million in GVA; $1,683 million in GSP; and 16,997 jobs. Direct and indirect contribution of tourism to NT economy NT Figure 12: Direct and indirect contribution of tourism to the NT economy 2006 07 16

DATA TABLES Table 1: Tourism share of GVA and GSP (Domestic) NT and AUS, 2006 07 Direct contribution NT AUS Tourism GVA ($m) 775.777 32306.021 Tourism net taxes on products ($m) 158.144 6630.048 Tourism GSP, GDP ($m) 933.921 38936.070 Tourism employment ('000) 9.682 482.900 GVA ($m) 13369.548 961880.260 Tourism share of GVA (%) 5.803 3.400 GSP, GDP ($m) 14494.000 1046364.000 Tourism share of GSP, GDP (%) 6.444 3.700 Employment ('000) 102.462 10302.419 Tourism share of employment (%) 9.449 4.687 Indirect contribution NT AUS Tourism GVA ($m) 703.202 27938.817 Tourism net taxes on products ($m) 45.455 1633.190 Tourism GSP, GDP ($m) 748.657 29572.007 Tourism employment ('000) 7.315 365.891 Total contribution NT AUS Tourism GVA ($m) 1478.979 60244.835 Tourism net taxes on products ($m) 203.599 8263.238 Tourism GSP, GDP ($m) 1682.578 68508.072 Tourism employment ('000) 16.997 848.791 Ratio of total to direct NT AUS Tourism GVA 1.91 1.865 Tourism net taxes on products 1.29 1.246 Tourism GSP, GDP 1.80 1.760 Tourism employment 1.76 1.758 Share of indirect in total contribution NT AUS Tourism GVA (%) 47.55 46.375 Tourism net taxes on products (%) 22.33 19.765 Tourism GSP, GDP (%) 44.49 43.166 Tourism employment (%) 43.04 43.107 17

Table 2: Tourism industry gross state product (GSP), by type of visitor NT, 2006 07 Type of Visitor Domestic Tourism GSP Tourism Share % $m of GSP % Intrastate 88.8 0.61 9.5 Interstate 512.2 3.53 54.8 Outbound 4.5 0.03 0.5 Total domestic 605.5 4.18 64.8 International 203.9 1.41 21.8 Interstate trade 124.6 0.86 13.3 Total tourism GSP, NT 933.9 6.44 100.0 Total GSP, NT, 2006 07 14494.0 Type of Visitor Domestic Tourism GSP $m Tourism Share of GSP Intrastate night 60.7 0.42 6.5 Interstate night 510.9 3.52 54.7 Total overnight 571.6 3.94 61.2 % % Intrastate day 28.0 0.19 3.0 Interstate day 1.3 0.01 0.1 Total same day 29.3 0.20 3.1 Outbound 4.5 0.03 0.5 Total domestic 605.5 4.18 64.8 International 203.9 1.41 21.8 Interstate trade 124.6 0.86 13.3 Total tourism GSP, NT 933.9 6.44 100.0 Total GSP, NT, 2006 07 14494.0 18

Table 3: Tourism industry output at basic prices, by tourism industry sector NT and AUS, 2006 07, $m Tourism Industries NT AUS Tourism characteristic industries Tourism Industry Output (generated by tourism consumption in NT) Interstate Trade Total Tourism Industry Output ABS TSA, Tourism Industry Output NT Share of Australia Travel agency and tour operator services 97.4 0.0 97.4 2201.0 4.4 Taxi transport 18.2 0.0 18.2 833.0 2.2 Air and water transport 19.9 359.8 379.7 11700.0 3.2 Motor vehicle hiring 101.6 0.0 101.6 1348.0 7.5 Accommodation 245.4 0.0 245.4 9021.0 2.7 Cafés, restaurants and food outlets 191.7 0.0 191.7 9291.0 2.1 Total tourism characteristic industries 674.1 359.8 1033.9 34394.0 3.0 % Tourism connected industries Clubs, pubs, taverns and bars 48.5 0.0 48.5 2352.0 2.1 Other road transport 104.3 0.0 104.3 2276.0 4.6 Rail transport 10.5 0.0 10.5 1077.0 1.0 Food manufacturing 9.7 1.1 10.8 3858.0 0.3 Beverage manufacturing 0.0 0.0 0.0 2026.0 0.0 Transport equipment manufacturing 4.4 1.9 6.3 648.0 1.0 Other manufacturing 8.5 3.7 12.2 2838.0 0.4 Automotive fuel retailing 0.0 0.0 0.0 816.0 0.0 Other retail trade 172.9 0.0 172.9 6911.0 2.5 Casinos and other gambling services 10.8 0.0 10.8 328.0 3.3 Libraries, museums and arts 15.1 0.0 15.1 775.0 1.9 Other entertainment services 30.6 0.0 30.6 1574.0 1.9 Education 33.6 0.0 33.6 2755.0 1.2 Ownership of dwellings 22.0 0.0 22.0 2675.0 0.8 Total tourism connected industries 471.0 6.7 477.8 30909.0 1.5 All other industries 113.6 0.0 113.6 6274.0 1.8 Total 1258.8 366.5 1625.3 71577.0 2.3 19

Tourism industry output at basic prices, by tourism industry sector NT, 2006 07, $m Tourism Industries NT Tourism characteristic industries Tourism Industry Output (generated by tourism consumption in NT) Interstate Trade Total Tourism Industry Output % % Share of Interstate Trade Travel agency and tour operator services 97.4 0.0 97.4 6.0 0.0 Taxi transport 18.2 0.0 18.2 1.1 0.0 Air and Water transport 19.9 359.8 379.7 23.4 94.8 Motor vehicle hiring 101.6 0.0 101.6 6.2 0.0 Accommodation 245.4 0.0 245.4 15.1 0.0 Cafés, restaurants and food outlets 191.7 0.0 191.7 11.8 0.0 Total tourism characteristic industries 674.1 359.8 1033.9 63.6 34.8 Tourism connected industries Clubs, pubs, taverns and bars 48.5 0.0 48.5 3.0 0.0 Other road transport 104.3 0.0 104.3 6.4 0.0 Rail transport 10.5 0.0 10.5 0.6 0.0 Food manufacturing 9.7 1.1 10.8 0.7 10.2 Beverage manufacturing 0.0 0.0 0.0 0.0 0.0 Transport equipment manufacturing 4.4 1.9 6.3 0.4 29.8 Other manufacturing 8.5 3.7 12.2 0.8 30.5 Automotive fuel retailing 0.0 0.0 0.0 0.0 0.0 Other retail trade 172.9 0.0 172.9 10.6 0.0 Casinos and other gambling services 10.8 0.0 10.8 0.7 0.0 Libraries, museums and arts 15.1 0.0 15.1 0.9 0.0 Other entertainment services 30.6 0.0 30.6 1.9 0.0 Education 33.6 0.0 33.6 2.1 0.0 Ownership of dwellings 22.0 0.0 22.0 1.4 0.0 Total tourism connected industries 471.0 6.7 477.8 29.4 1.4 All other industries 113.6 0.0 113.6 7.0 0.0 Total 1258.8 366.5 1625.3 100.0 22.6 20

Table 4: Tourism industry gross value added (TGVA) Tourism industry gross value added by tourism sectors, NT, 2006 07, $m Tourism Industries Tourism characteristic industries Tourism Industry Value Added (excluding trade effect) $m Interstate Trade $m Total Tourism Industry Value Added $m % % Share of Interstate Trade Travel agency and tour operator services 62.9 0.0 62.9 8.1 0.0 Taxi transport 10.4 0.0 10.4 1.3 0.0 Air and Water transport 6.8 122.6 129.3 16.7 94.8 Motor vehicle hiring 63.1 0.0 63.1 8.1 0.0 Accommodation 117.8 0.0 117.8 15.2 0.0 Cafés, restaurants and food outlets 61.8 0.0 61.8 8.0 0.0 Total tourism characteristic industries 322.7 122.6 445.3 57.4 27.5 Tourism connected industries Clubs, pubs, taverns and bars 19.8 0.0 19.8 2.6 0.0 Other road transport 61.4 0.0 61.4 7.9 0.0 Rail transport 3.9 0.0 3.9 0.5 0.0 Food manufacturing 2.4 0.3 2.7 0.4 10.2 Beverage manufacturing 0.0 0.0 0.0 0.0 0.0 Transport equipment manufacturing 1.4 0.6 2.0 0.3 29.8 Other manufacturing 2.6 1.1 3.7 0.5 30.5 Automotive fuel retailing 0.0 0.0 0.0 0.0 0.0 Other retail trade 98.2 0.0 98.2 12.7 0.0 Casinos and other gambling services 5.7 0.0 5.7 0.7 0.0 Libraries, museums and arts 7.8 0.0 7.8 1.0 0.0 Other entertainment services 8.1 0.0 8.1 1.0 0.0 Education 24.7 0.0 24.7 3.2 0.0 Ownership of dwellings 19.2 0.0 19.2 2.5 0.0 Total tourism connected industries 255.3 2.0 257.3 33.2 0.8 All other industries 73.2 0.0 73.2 9.4 0.0 Total tourism industry value added 651.2 124.6 775.8 100.0 16.1 21

Tourism industry gross value added, by tourism industry, NT and AUS, 2006 07, $m Tourism Industries NT AUS TGVA Interstate Trade Total TGVA TGVA (ABS TSA) % Share of NT Tourism characteristic industries Travel agency and tour operator services 62.9 0.0 62.9 1421.0 4.4 Taxi transport 10.4 0.0 10.4 340.0 3.1 Air and Water transport 6.8 122.6 129.3 4156.0 3.1 Motor vehicle hiring 63.1 0.0 63.1 832.0 7.6 Accommodation 117.8 0.0 117.8 4547.0 2.6 Cafés, restaurants and food outlets 61.8 0.0 61.8 3143.0 2.0 Total tourism characteristic industries 322.7 122.6 445.3 14439.0 3.1 Tourism connected industries Clubs, pubs, taverns and bars 19.8 0.0 19.8 1008.0 2.0 Other road transport 61.4 0.0 61.4 965.0 6.4 Rail transport 3.9 0.0 3.9 549.0 0.7 Food manufacturing 2.4 0.3 2.7 954.0 0.3 Beverage manufacturing 0.0 0.0 0.0 732.0 0.0 Transport equipment manufacturing 1.4 0.6 2.0 190.0 1.1 Other manufacturing 2.6 1.1 3.7 957.0 0.4 Automotive fuel retailing 0.0 0.0 0.0 257.0 0.0 Other retail trade 98.2 0.0 98.2 3808.0 2.6 Casinos and other gambling services 5.7 0.0 5.7 184.0 3.1 Libraries, museums and arts 7.8 0.0 7.8 422.0 1.8 Other entertainment services 8.1 0.0 8.1 441.0 1.8 Education 24.7 0.0 24.7 2124.0 1.2 Ownership of dwellings 19.2 0.0 19.2 2198.0 0.9 Total tourism connected industries 255.3 2.0 257.3 14789.0 1.7 22

Tourism Industries TGVA Interstate Total TGVA TGVA % Share of Trade (ABS TSA) NT All other industries 73.2 0.0 73.2 3078.0 2.4 Tourism industry value added 651.2 124.6 775.8 32306.0 2.4 NT industry value added 13369.5 13369.5 13369.5 Tourism share of GVA, NT, % 4.87 0.93 5.80 NT share of AUS TGVA, % 2.4 NT share of AUS GVA, % 1.4 Net taxes on tourism products 158.1 Tourism GSP, tourism GDP 933.9 38936.1 NT GSP, AUS GDP 14494.0 1046364.0 Tourism share of GSP, NT, % 6.4 Tourism share of GDP, AUS, % 3.7 NT share of tourism GDP, % 2.4 NT share of GDP 1.4 Total industry GVA, Australia 961880.3 Tourism share of industry GVA, AUS, % 3.4 NT AUS 23

Table 5: Industry gross value added, by ANZSIC industry division, NT and AUS, 2006 07 (a) Industry Division NT $m Share of Total NT GVA by Industry % NT Share of Australia s Industry GVA % Mining 3515.7 26.3 4.7 Ownership of dwellings 1323.3 9.9 1.6 Government administration and defence 1065.0 8.0 2.6 Property and business services 1042.6 7.8 0.8 Construction 1042.2 7.8 1.5 Tourism 775.8 5.8 2.4 Manufacturing 762.8 5.7 0.7 Health and community services 743.7 5.6 1.2 Transport and storage 598.1 4.5 1.2 Education 570.5 4.3 1.3 Retail trade 555.5 4.2 1.0 Accommodation, cafés and restaurants 337.4 2.5 1.6 Agriculture, forestry and fishing 315.8 2.4 1.4 Finance and insurance 308.7 2.3 0.4 Personal and other services 278.5 2.1 1.5 Wholesale trade 275.3 2.1 0.6 Communication services 263.4 2.0 1.1 Cultural and recreational services 200.8 1.5 1.4 Electricity, gas and water supply 170.3 1.3 0.8 Total 13369.5 (b)100.0 1.4 Note: Tourism is not an ANZSIC industry and, to avoid double counting, is consequently not counted in the total (a) derivation based on MMRF database, ABS State Account and ABS TSA (b) percentages subject to rounding 24

Table 6: Tourism consumption, by type of visitor Domestic tourism consumption, by tourism industry sector and type of visitor, NT, 2006 07, $m Tourism Products Intrastate Interstate Outbound Total Domestic Tourism Tourism characteristic products Travel agency and tour operator services 4.8 88.4 2.0 95.2 5.9 Taxi fares 0.8 13.9 0.3 15.1 0.9 Long distance passenger transportation 48.6 255.3 20.6 324.5 20.2 Motor vehicle hire and lease 6.2 72.7 0.0 78.9 4.9 Accommodation services 23.4 152.5 0.8 176.7 11.0 Takeaway and restaurant meals 36.8 173.2 0.3 210.3 13.1 Shopping (including gifts and souvenirs) 40.6 99.6 2.8 142.9 8.9 Total tourism characteristic products 161.3 855.7 26.7 1043.6 65.0 Tourism connected products Local area passenger transportation 0.5 8.1 0.2 8.9 0.6 Repair and maintenance of motor vehicles 8.7 8.2 0.0 16.9 1.1 Fuel (petrol, diesel) 50.4 85.5 0.0 135.8 8.5 Food products 39.4 89.4 0.4 129.3 8.0 Alcoholic beverages and other beverages 17.3 57.0 0.5 74.8 4.7 Motor vehicles, caravans, boats, etc. 26.5 11.4 0.0 37.9 2.4 Recreational, cultural and sports services 7.3 38.8 0.0 46.1 2.9 Gambling and betting services 3.2 18.4 0.0 21.6 1.3 Education 1.1 5.3 0.0 6.4 0.4 Actual and imputed rent on holiday houses 4.2 13.6 0.0 17.8 1.1 Total tourism connected products 158.6 335.8 1.1 495.5 30.8 % Other tourism goods and services 6.8 60.0 0.6 67.4 4.2 Total domestic tourism, NT 326.7 1251.4 28.4 1606.5 100.0 % 20.3 77.9 1.8 100.0 25

Domestic tourism consumption by tourism industry sector and type of visitor, AUS, 2006 07, $m Tourism Products Intrastate Interstate Outbound Total Domestic % Tourism characteristic products Travel agency and tour operator services 467.8 1497.8 241.5 2207.0 3.5 Taxi fares 142.9 449.3 32.8 625.0 1.0 Long distance passenger transportation 1074.5 4276.4 2506.1 7857.0 12.6 Motor vehicle hire and lease 248.1 886.9 0.0 1135.0 1.8 Accommodation services 2846.0 3135.2 92.8 6074.0 9.7 Takeaway and restaurant meals 6115.5 4309.0 34.5 10459.0 16.8 Shopping (including gifts and souvenirs) 6203.0 3003.5 336.5 9543.0 15.3 Total tourism characteristic products 17097.8 17558.1 3244.2 37900.0 60.7 Tourism connected products Local area passenger transportation 135.8 116.9 25.3 278.0 0.4 Repair and maintenance of motor vehicles 352.7 145.3 0.0 498.0 0.8 Fuel (petrol, diesel) 4410.8 1495.2 0.0 5906.0 9.5 Food products 3694.9 1746.5 50.6 5492.0 8.8 Alcoholic beverages and other beverages 2288.2 1399.9 59.8 3748.0 6.0 Motor vehicles, caravans, boats, etc. 748.5 234.5 0.0 983.0 1.6 Recreational, cultural and sports services 1268.2 1021.8 0.0 2290.0 3.7 Gambling and betting services 582.0 416.0 0.0 998.0 1.6 Education 138.1 59.9 0.0 198.0 0.3 Actual and imputed rent on holiday houses 1310.1 909.9 0.0 2220.0 3.6 Total tourism connected products 14929.3 7545.9 135.7 22611.0 36.2 Other tourism goods and services 1217.8 614.2 69.0 1901.0 3.0 Total 33244.7 25718.3 3449.0 62412.0 100.0 % 53.3 41.2 5.5 100.0 26

Share of NT in total Australian domestic tourism consumption, 2006 07 Tourism Products Intrastate Interstate Outbound Total Domestic Tourism characteristic products Travel agency and tour operator services 1.0 5.9 0.8 4.3 Taxi fares 0.6 3.1 0.8 2.4 Long distance passenger transportation 4.5 6.0 0.8 4.1 Motor vehicle hire and lease 2.5 8.2 0.0 7.0 Accommodation services 0.8 4.9 0.8 2.9 Takeaway and restaurant meals 0.6 4.0 0.8 2.0 Shopping (including gifts and souvenirs) 0.7 3.3 0.8 1.5 Total tourism characteristic products 0.9 4.9 0.8 2.8 Tourism connected products Local area passenger transportation 0.4 6.9 0.8 3.2 Repair and maintenance of motor vehicles 2.5 5.7 0.0 3.4 Fuel (petrol, diesel) 1.1 5.7 0.0 2.3 Food products 1.1 5.1 0.8 2.4 Alcoholic beverages and other beverages 0.8 4.1 0.8 2.0 Motor vehicles, caravans, boats, etc. 3.5 4.8 0.0 3.9 Recreational, cultural and sports services 0.6 3.8 0.0 2.0 Gambling and betting services 0.5 4.4 0.0 2.2 Education 0.8 8.8 0.0 3.2 Actual and imputed rent on holiday houses 0.3 1.5 0.0 0.8 Total tourism connected products 1.1 4.4 0.8 2.2 Other tourism goods and services 0.6 9.8 0.8 3.5 Total 1.0 4.9 0.8 2.6 27

International tourism consumption, by tourism industry sector and type of visitor, NT, 2006 07, $m Tourism Products Inbound % Tourism characteristic products Travel agency and tour operator services 13.2 2.3 Taxi fares 3.6 0.6 Long distance passenger transportation 176.5 31.1 Motor vehicle hire and lease 37.0 6.5 Accommodation services 73.9 13.0 Takeaway and restaurant meals 45.6 8.0 Shopping (including gifts and souvenirs) 43.4 7.7 Total tourism characteristic products 393.3 69.4 Tourism connected products Local area passenger transportation 5.2 0.9 Repair and maintenance of motor vehicles 0.2 0.0 Fuel (petrol, diesel) 20.7 3.7 Food products 46.3 8.2 Alcoholic beverages and other beverages 22.5 4.0 Motor vehicles, caravans, boats, etc. 3.0 0.5 Recreational, cultural and sports services 6.3 1.1 Gambling and betting services 16.1 2.8 Education 30.4 5.4 Actual and imputed rent on holiday houses 4.3 0.8 Total tourism connected products 155.2 27.4 Other tourism goods and services 18.2 3.2 Total 566.7 100.0 28

Share of NT in total Australian international tourism consumption, by tourism industry sector, 2006 07 Tourism Products NT AUS % Share of NT ($m) ($m) Tourism characteristic products Travel agency and tour operator services 13.2 243.0 5.4 Taxi fares 3.6 230.0 1.6 Long distance passenger transportation 176.5 5514.0 3.2 Motor vehicle hire and lease 37.0 404.0 9.2 Accommodation services 73.9 3139.0 2.4 Takeaway and restaurant meals 45.6 1942.0 2.3 Shopping (including gifts and souvenirs) 43.4 2495.0 1.7 Total tourism characteristic products 393.3 13967.0 2.8 Tourism connected products Local area passenger transportation 5.2 331.0 1.6 Repair and maintenance of motor vehicles 0.2 23.0 1.0 Fuel (petrol, diesel) 20.7 351.0 5.9 Food products 46.3 1656.0 2.8 Alcoholic beverages and other beverages 22.5 806.0 2.8 Motor vehicles, caravans, boats, etc. 3.0 318.0 1.0 Recreational, cultural and sports services 6.3 403.0 1.6 Gambling and betting services 16.1 151.0 10.7 Education 30.4 2818.0 1.1 Actual and imputed rent on holiday houses 4.3 469.0 0.9 Total tourism connected products 155.2 7326.0 2.1 Other tourism goods and services 18.2 1057.0 1.7 Total 566.7 22350.0 2.5 29

Total tourism consumption, NT, by tourism industry sector and type of visitor, 2006 07, $m Tourism Products Inbound Intrastate Interstate Outbound Total % Tourism characteristic products Travel agency and tour operator services 13.2 4.8 88.4 2.0 108.4 5.0 Taxi fares 3.6 0.8 13.9 0.3 18.7 0.9 Long distance passenger transportation 176.5 48.6 255.3 20.6 501.0 23.1 Motor vehicle hire and lease 37.0 6.2 72.7 0.0 116.0 5.3 Accommodation services 73.9 23.4 152.5 0.8 250.6 11.5 Takeaway and restaurant meals 45.6 36.8 173.2 0.3 255.9 11.8 Shopping (including gifts and souvenirs) 43.4 40.6 99.6 2.8 186.4 8.6 Total tourism characteristic products 393.3 161.3 855.7 26.7 1436.9 66.1 Tourism connected products Local area passenger transportation 5.2 0.5 8.1 0.2 14.1 0.6 Repair and maintenance of motor vehicles 0.2 8.7 8.2 0.0 17.1 0.8 Fuel (petrol, diesel) 20.7 50.4 85.5 0.0 156.6 7.2 Food products 46.3 39.4 89.4 0.4 175.6 8.1 Alcoholic beverages and other beverages 22.5 17.3 57.0 0.5 97.4 4.5 Motor vehicles, caravans, boats, etc. 3.0 26.5 11.4 0.0 40.9 1.9 Recreational, cultural and sports services 6.3 7.3 38.8 0.0 52.4 2.4 Gambling and betting services 16.1 3.2 18.4 0.0 37.7 1.7 Education 30.4 1.1 5.3 0.0 36.8 1.7 Actual and imputed rent on holiday houses 4.3 4.2 13.6 0.0 22.1 1.0 Total tourism connected products 155.2 158.6 335.8 1.1 650.8 29.9 Other tourism goods and services 18.2 6.8 60.0 0.6 85.6 3.9 Total 566.7 326.7 1251.4 28.4 2173.3 100.0 % 26.1 15.0 57.6 1.3 100.0 30

Table 7: Domestic tourism consumption, by length of stay Same day tourism by tourism industry sector and type of visitor, NT, 2006 07, $m Tourism Products Intrastate Interstate Total % Tourism characteristic products Travel agency and tour operator services 0.1 0.1 0.2 0.1 Taxi fares 0.0 0.0 0.0 0.0 Long distance passenger transportation 22.4 0.0 22.4 16.2 Motor vehicle hire and lease 1.3 0.0 1.3 0.9 Accommodation services 0.0 0.0 0.0 0.0 Takeaway and restaurant meals 11.6 0.2 11.9 8.6 Shopping (including gifts and souvenirs) 12.6 0.2 12.8 9.3 Total tourism characteristic products 48.1 0.5 48.6 35.2 Tourism connected products Local area passenger transportation 0.1 0.0 0.1 0.1 Repair and maintenance of motor vehicles 7.3 0.0 7.3 5.3 Fuel (petrol, diesel) 21.4 2.2 23.7 17.2 Food products 16.3 3.0 19.3 14.0 Alcoholic beverages and other beverages 5.9 0.8 6.7 4.9 Motor vehicles, caravans, boats, etc. 24.6 0.1 24.7 17.9 Recreational, cultural and sports services 2.5 0.0 2.5 1.8 Gambling and betting services 0.9 0.0 0.9 0.7 Education 0.8 0.0 0.8 0.6 Actual and imputed rent on holiday houses 0.0 0.0 0.0 0.0 Total tourism connected products 79.9 6.2 86.0 62.3 Other tourism goods and services 3.3 0.0 3.4 2.4 Total 131.3 6.7 138.0 100.0 % 95.1 4.9 100.0 31

Same day tourism, by tourism industry sector and type of visitor, Australia, 2006 07, $m Tourism Products Intrastate Interstate Total % Tourism characteristic products Travel agency and tour operator services 6.1 0.9 7.0 0.05 Taxi fares 34.3 26.7 61.0 0.4 Long distance passenger transportation 207.7 193.3 401.0 2.9 Motor vehicle hire and lease 44.7 6.3 51.0 0.4 Accommodation services 0.0 0.0 0.0 0.0 Takeaway and restaurant meals 2407.9 205.1 2613.0 18.6 Shopping (including gifts and souvenirs) 3712.3 254.7 3967.0 28.2 Total tourism characteristic products 6413.1 686.9 7100.0 50.5 Tourism connected products Local area passenger transportation 81.4 5.6 87.0 0.6 Repair and maintenance of motor vehicles 131.6 17.4 149.0 1.1 Fuel (petrol, diesel) 2313.1 219.9 2533.0 18.0 Food products 1201.4 76.6 1278.0 9.1 Alcoholic beverages and other beverages 731.0 54.0 785.0 5.6 Motor vehicles, caravans, boats, etc. 444.4 58.6 503.0 3.6 Recreational, cultural and sports services 485.0 29.0 514.0 3.7 Gambling and betting services 344.8 33.2 378.0 2.7 Education 80.4 5.6 86.0 0.6 Actual and imputed rent on holiday houses 0.0 0.0 0.0 0.0 Total tourism connected products 5814.2 498.8 6313.0 44.9 Other tourism goods and services 595.5 48.5 644.0 4.6 Total 12822.7 1234.3 14057.0 100.0 % 91.2 8.8 100.0 32

Share of NT in Australian same day tourism consumption, by tourism industry sector and type of visitor, 2006 07, % Tourism Products Intrastate Interstate Total Tourism characteristic products Travel agency and tour operator services 2.3 5.9 2.8 Taxi fares 0.1 0.0 0.1 Long distance passenger transportation 10.8 0.0 5.6 Motor vehicle hire and lease 2.8 0.0 2.5 Accommodation services 0.0 0.0 0.0 Takeaway and restaurant meals 0.5 0.1 0.5 Shopping (including gifts and souvenirs) 0.3 0.1 0.3 Total tourism characteristic products 0.7 0.1 0.7 Tourism connected products Local area passenger transportation 0.1 0.0 0.1 Repair and maintenance of motor vehicles 5.5 0.2 4.9 Fuel (petrol, diesel) 0.9 1.0 0.9 Food products 1.4 3.9 1.5 Alcoholic beverages and other beverages 0.8 1.4 0.9 Motor vehicles, caravans, boats, etc. 5.5 0.2 4.9 Recreational, cultural and sports services 0.5 0.0 0.5 Gambling and betting services 0.3 0.0 0.2 Education 0.9 0.0 0.9 Actual and imputed rent on holiday houses 0.0 0.0 0.0 Total tourism connected products 1.4 1.2 1.4 Other tourism goods and services 0.6 0.1 0.5 Total 1.0 0.5 1.0 33

Overnight tourism consumption, by tourism industry sector and type of visitor, NT, 2006 07, $m Tourism Products Intrastate Interstate Outbound Total % Tourism characteristic products Travel agency and tour operator services 4.6 88.4 2.0 95.0 6.5 Taxi fares 0.8 13.9 0.3 15.0 1.0 Long distance passenger transportation 26.2 255.3 20.6 302.1 20.6 Motor vehicle hire and lease 5.0 72.7 0.0 77.7 5.3 Accommodation services 23.4 152.5 0.8 176.7 12.0 Takeaway and restaurant meals 25.2 172.9 0.3 198.4 13.5 Shopping (including gifts and souvenirs) 28.0 99.4 2.8 130.1 8.9 Total tourism characteristic products 113.2 855.1 26.7 995.0 67.8 Tourism connected products Local area passenger transportation 0.4 8.1 0.2 8.8 0.6 Repair and maintenance of motor vehicles 1.4 8.2 0.0 9.6 0.7 Fuel (petrol, diesel) 28.9 83.2 0.0 112.2 7.6 Food products 23.1 86.4 0.4 110.0 7.5 Alcoholic beverages and other beverages 11.4 56.2 0.5 68.1 4.6 Motor vehicles, caravans, boats, etc. 1.9 11.3 0.0 13.2 0.9 Recreational, cultural and sports services 4.8 38.8 0.0 43.6 3.0 Gambling and betting services 2.3 18.4 0.0 20.7 1.4 Education 0.3 5.3 0.0 5.6 0.4 Actual and imputed rent on holiday houses 4.2 13.6 0.0 17.8 1.2 Total tourism connected products 78.8 329.6 1.1 409.5 27.9 Other tourism goods and services 3.5 59.9 0.6 64.0 4.4 Total 195.4 1244.7 28.4 1468.5 100.0 % 13.3 84.8 1.9 100.0 34

Overnight tourism consumption, by tourism industry sector and type of visitor, AUS, 2006 07, $m Domestic Tourism Products Intrastate Interstate Outbound Total Domestic Tourism characteristic products Travel agency and tour operator services 461.7 1496.8 241.5 2200.0 4.5 Taxi fares 108.6 422.6 32.8 564.0 1.2 Long distance passenger transportation 866.7 4083.2 2506.1 7456.0 15.4 Motor vehicle hire and lease 203.4 880.6 0.0 1084.0 2.2 Accommodation services 2846.0 3135.2 92.8 6074.0 12.6 Takeaway and restaurant meals 3707.5 4104.0 34.5 7846.0 16.2 Shopping (including gifts and souvenirs) 2490.7 2748.8 336.5 5576.0 11.5 Total tourism characteristic products 10684.6 16871.2 3244.2 30800.0 63.7 % Tourism connected products Local area passenger transportation 54.4 111.3 25.3 191.0 0.4 Repair and maintenance of motor vehicles 221.1 127.9 0.0 349.0 0.7 Fuel (petrol, diesel) 2097.7 1275.3 0.0 3373.0 7.0 Food products 2493.5 1669.8 50.6 4214.0 8.7 Alcoholic beverages and other beverages 1557.2 1345.9 59.8 2963.0 6.1 Motor vehicles, caravans, boats, etc. 304.0 176.0 0.0 480.0 1.0 Recreational, cultural and sports services 783.2 992.8 0.0 1776.0 3.7 Gambling and betting services 237.2 382.8 0.0 620.0 1.3 Education 57.6 54.4 0.0 112.0 0.2 Actual and imputed rent on holiday houses 1310.1 909.9 0.0 2220.0 4.6 Total tourism connected products 9115.1 7047.1 135.8 16298.0 33.7 Other tourism goods and services 622.3 565.7 69.0 1257.0 2.6 Total 20422.0 24484.0 3449.0 48355.0 100.0 % 42.2 50.6 7.1 100.0 35

Share of NT in total Australian overnight tourism consumption, by tourism industry sector and type of visitor, 2006 07, % Tourism Products Intrastate Interstate Outbound Total Tourism characteristic products Travel agency and tour operator services 1.0 5.9 0.8 4.3 Taxi fares 0.7 3.3 0.8 2.7 Long distance passenger transportation 3.0 6.3 0.8 4.1 Motor vehicle hire and lease 2.4 8.3 0.0 7.2 Accommodation services 0.8 4.9 0.8 2.9 Takeaway and restaurant meals 0.7 4.2 0.8 2.5 Shopping (including gifts and souvenirs) 1.1 3.6 0.8 2.3 Total tourism characteristic products 1.1 5.1 0.8 3.2 Tourism connected products Local area passenger transportation 0.8 7.3 0.8 4.6 Repair and maintenance of motor vehicles 0.6 6.4 0.0 2.7 Fuel (petrol, diesel) 1.4 6.5 0.0 3.3 Food products 0.9 5.2 0.8 2.6 Alcoholic beverages and other beverages 0.7 4.2 0.8 2.3 Motor vehicles, caravans, boats, etc. 0.6 6.4 0.0 2.7 Recreational, cultural and sports services 0.6 3.9 0.0 2.5 Gambling and betting services 1.0 4.8 0.0 3.3 Education 0.6 9.6 0.0 5.0 Actual and imputed rent on holiday houses 0.3 1.5 0.0 0.8 Total tourism connected products 0.9 4.7 0.8 2.5 Other tourism goods and services 0.6 10.6 0.8 5.1 Total 1.0 5.1 0.8 3.0 36

Table 8: Tourism consumption, by Australian residents, outbound trips, NT and AUS Tourism Consumption NT AUS 2006 07 2006 07 Domestically produced goods and services ($m) 28.4 3449.0 Imports of tourism goods and services ($m) 181.3 22023.0 Total consumption by Australian residents on outbound trips ($m) 209.6 25472.0 Average consumption by Australian residents on outbound trips ($) 4968.0 4968.0 Table 9: Tourism consumption, by non-residents, inbound trips, NT and AUS Tourism Consumption NT AUS 2006 07 2006 07 Overseas produced goods and services ($m) 125.8 4960.0 Domestically produced tourism goods and services ($m) 566.7 22350.0 Total consumption by non-residents on inbound trips ($m) 692.5 27310.0 Average consumption by non-residents on inbound trips ($) 2803.9 4841.0 37

Table 10: Persons employed in tourism Tourism employment in NT by tourism industry sector, 2006 07, 000 Tourism Industry Tourism Employm ent Interstate Trade Total Tourism Employment % % Share of Interstate Trade Tourism characteristic and connected industries Travel agency and tour operator services 0.964 0.000 0.964 9.961 0.000 Road transport and motor vehicle hiring 0.967 0.000 0.967 9.991 0.000 Air and water transport 0.046 0.831 0.876 9.052 94.767 Accommodation 1.309 0.000 1.309 13.522 0.000 Cafés and restaurants 0.713 0.000 0.713 7.363 0.000 Clubs, pubs, taverns and bars 0.333 0.000 0.333 3.438 0.000 Rail transport 0.024 0.000 0.024 0.246 0.000 Manufacturing 0.082 0.022 0.104 1.077 20.996 Retail trade 3.005 0.000 3.005 31.038 0.000 Casinos and other gambling services 0.049 0.000 0.049 0.508 0.000 Libraries, museums and arts 0.157 0.000 0.157 1.617 0.000 Other entertainment services 0.217 0.000 0.217 2.244 0.000 Education 0.377 0.000 0.377 3.898 0.000 Total tourism characteristic and connected industries 8.244 0.852 9.097 93.957 9.371 All other industries 0.585 0.000 0.585 6.043 0.000 Total tourism employed persons 8.830 0.852 9.682 100.000 8.804 38

Tourism industry employment, NT; Share of NT and Australian employment, 2006 07 Tourism Industry Tourism characteristic and connected industries Tourism Employment Interstate Trade Total Tourism Employment Tourism Industry Employment, Australia % Share of NT Travel agency and tour operator services 0.964 0.000 0.964 21.800 4.424 Road transport and motor vehicle hiring 0.967 0.000 0.967 25.500 3.793 Air and Water transport 0.046 0.831 0.876 33.500 2.616 Accommodation 1.309 0.000 1.309 71.400 1.834 Cafés and restaurants 0.713 0.000 0.713 51.400 1.387 Clubs, pubs, taverns and bars 0.333 0.000 0.333 24.000 1.387 Rail transport 0.024 0.000 0.024 3.000 0.794 Manufacturing 0.082 0.022 0.104 31.800 0.328 Other retail trade 3.005 0.000 3.005 120.100 2.502 Casinos and other gambling services 0.049 0.000 0.049 1.800 2.732 Libraries, museums and arts 0.157 0.000 0.157 9.800 1.598 Other entertainment services 0.217 0.000 0.217 13.600 1.598 Education 0.377 0.000 0.377 34.200 1.104 Total tourism characteristic and connected industries 8.244 0.852 9.097 441.900 2.059 All other industries 0.585 0.000 0.585 41.000 1.427 Total tourism employed persons 8.830 0.852 9.682 482.900 2.005 Total employed persons, NT, 2006 07 102.462 102.462 102.462 Tourism share of total employment (%), NT 8.617 0.832 9.449 Total tourism employed persons, Australia, 2006 07 482.900 Total employed persons, Australia, 2006 07 10302.419 Tourism share of total employment (%), AUS 4.7 Share of NT in tourism employed persons, % 2.0 Share of NT in total employed persons, % 1.0 39

Table 11: Net taxes on tourism products Net taxes on tourism products, by tourism industry sector, NT and AUS, 2006 07 Tourism Products NT AUS Share (%) Travel agency and tour operator services 0.0 0.0 0.0 Taxi fares 0.5 22.8 2.2 Long distance passenger transportation -2.7-73.2 3.7 Motor vehicle hire and lease 7.0 93.3 7.5 Accommodation services 11.7 430.2 2.7 Takeaway and restaurant meals 17.2 835.0 2.1 Shopping (including gifts and souvenirs) 15.9 1027.3 1.5 Local area passenger transportation -4.4-191.2 2.3 Repair and maintenance of motor vehicles 1.1 34.9 3.3 Fuel (petrol, diesel) 54.1 2160.8 2.5 Food products 2.9 119.2 2.5 Alcoholic beverages and other beverages 21.5 1004.4 2.1 Motor vehicles, caravans, boats, etc. 2.0 64.2 3.1 Recreational, cultural and sports services 4.0 204.1 1.9 Gambling and betting services 11.4 345.6 3.3 Education 0.0 0.0 0.0 Actual and imputed rent on holiday houses 0.0 0.0 0.0 Other tourism goods and services 16.0 552.6 2.9 Total 158.1 6630.1 2.4 40

APPENDIX A: CONTRIBUTION OF TOURISM TO NORTHERN TERRITORY ECONOMY, 2003 04 Table A1: Estimates of direct, indirect and total contribution of tourism, NT and AUS, 2003 04 Direct contribution NT AUS Tourism GVA ($m) 615.70 29366.00 Tourism net taxes on products ($m) 124.90 5896.00 Tourism GSP, GDP ($m) 740.60 35262.00 Tourism employment ('000) 11.14 448.70 GVA ($m) 9135.70 764791.00 Tourism share of GVA (%) 6.74 3.84 GSP, GDP ($m) 9445.00 840282.00 Tourism share of GSP, GDP (%) 7.84 4.20 Employment ('000) 95.20 9528.10 Tourism share of employment (%) 11.70 4.71 Indirect contribution NT AUS Tourism GVA ($m) 558.10 25361.60 Tourism net taxes on products ($m) 35.90 1450.40 Tourism GSP, GDP ($m) 594.00 26812.00 Tourism employment ('000) 8.41 339.93 Total contribution NT AUS Tourism GVA ($m) 1173.80 54727.60 Tourism net taxes on products ($m) 160.80 7346.40 Tourism GSP, GDP ($m) 1334.60 62074.00 Tourism employment ('000) 19.55 788.63 Ratio of total to direct NT AUS Tourism GVA 1.91 1.86 Tourism net taxes on products 1.29 1.25 Tourism GSP, GDP 1.80 1.76 Tourism employment 1.76 1.76 Share of indirect in total contribution NT AUS Tourism GVA (%) 47.50 46.30 Tourism net taxes on products (%) 22.30 19.70 Tourism GSP, GDP (%) 44.50 43.20 Tourism employment (%) 43.00 43.10 41

APPENDIX B: CONCEPTS, SOURCES AND METHODS USED IN DEVELOPING TOURISM SATELLITE ACCOUNTS (TSA) FOR THE AUSTRALIAN STATES AND TERRITORIES The conceptual framework on which this TSA is based is as developed by the World Tourism Organization, OECD and Eurostat and set out in Tourism Satellite Account: Recommended Methodological Framework 16 and in Australian Bureau of Statistics Tourism Satellite Account documents. The tables follow the framework used in the ABS Tourism Satellite Accounts (ATSA) and definitions and concepts are as set out in the Explanatory Notes, Appendices 1 and 2 and the Glossary to the ATSA 17. Tourism data for the year 2006 07 was derived using the information for the years 2006 and 2007 from Tourism Research Australia 18 and from the 2006 07 ATSA 19. Input-output tables for Northern Territory are from the MMRF model database 20 developed by the Centre of Policy Studies (CoPS) at Monash University, Melbourne. Step 1: Derivation of Tourism Consumption Inbound and domestic tourism consumption First, starting from the TRA CD-MOTA, we identify the sources of tourism products consumed by different types of visitors, by origins and by destinations. In particular, we derive the patterns of expenditure by intrastate, interstate and inbound tourism. For consistency, these data are mapped with the published NVS and IVS data. The data are then reconciled with the ATSA data to ensure that we have a consistent set of tourism data by states, which in total is equal to the total national tourism data. Outbound tourism Total outbound tourism consumption, that is, consumption of goods and services in Australia by Australian residents before and after they return from an overseas trip is provided in the ABS TSA. To distribute the outbound tourism consumption to individual states and territories we use the average share of numbers of visitors departing from and returning to states using short-term (less than one year) visit data from DIAC 21. We assume that, on average, the representative outbound visitor has the same level of consumption expenditure of domestic goods across all states and territories. Step 2: Deriving Tourism Industry Output, GSP and Employment for the States and Territories The tourism consumption data derived in Step 1 are in purchasers values. They are the sum of domestic output (at basic prices), imports, margin costs and taxes on products (including GST, fuel taxes, gambling taxes etc.). To arrive at the impact of tourism on state and territory value added, GSP and employment, the tourism consumption expenditure must be divided into basic values, margins and product taxes by industry. To do this we utilise the CoPS MMRF database. In particular, the state s input output tables are used to derive the contribution of tourism on GVA, GSP, and employment. These estimates of GVA, GSP, and employment are then reconciled with the ATSA to ensure consistency. This is explained in more detail in steps 4, 5 and 6. 16 OECD et al. 2000 17 Australian Bureau of Statistics 2008 18 Tourism Research Australia 2005a 19 Australian Bureau of Statistics 2007 20 Adams 2006; Adams et al. 2000; Peter et al. 1996 21 Department of Immigration and Citizenship (2008) 42

Step 3: Interstate Trade Total tourism demand for a state or territory s goods and services is not only a result of tourism activities in that state or territory but also includes demand for goods and services that are required to satisfy tourism activities in other states. For reasons of convenience, and because most interstate trade in tourism related goods and services is incorporated when we use this approach, we assume that interstate trade only happens in the manufacturing and air transport industries. This reflects the fact that there is no interstate trade in service industries such as accommodation, café and restaurants. In order to simplify the analysis, we have implicitly assumed the absence of interstate trade in tourism services in rail and road transport. To allocate total output of air transport among the states and territories, we rely on ABS data on the distribution of air transport output/income among states 22. We can then divide the state or territory s air transport output into two parts: one which is the result of tourism consumption in the state concerned, and the other which is attributable to interstate trade. To derive interstate trade in the manufacturing industry, we rely on the MMRF database. This provides information on the sources of consumption products allowing us to identify the value of a state or territory s manufacturing output supplied to other states in the form of interstate trade in tourism. Step 4: Tourism Industry Output From Steps (2) and (3) above, we have established total tourism industry output for the states and territories. This is the sum of the tourism industry output that is produced to satisfy tourism activities within the state, plus tourism industry output that is to satisfy interstate trade in tourism goods and services. This tourism industry output then needs to be adjusted to ensure that it is consistent with tourism industry output as set out in the ATSA. Step 5: Tourism Industry Value Added From the MMRF database, we can then derive industry value added output ratios (the ratio of value added for each industry to output). These ratios are then applied to tourism industry output to obtain the tourism industry value added for each of our industries. This tourism industry value added data is then adjusted to ensure consistency with tourism industry value added as set out in the ATSA. Step 6: Tourism Industry Employment Similarly, from the MMRF database, we can also derive industry employment output ratios for states and territories (the ratio of industry employment to output for each industry represented). These ratios are then applied to tourism industry output for each industry to obtain total tourism industry employment. This tourism industry employment data is also adjusted for consistency with the tourism employment data provided in the ABS TSA. That is, the sum of tourism industry employment of states and territories must be equal to the national tourism industry employment as produced from the ATSA. Further information can be found in the STCRC s TSA reports for 2003 04 23. 22 Australian Bureau of Statistics 2007 23 Spurr et al (2007b-h) 43

APPENDIX C: DEFINITIONS OF SELECTED TERMS USED IN THIS REPORT* Tourism Consumption Tourism consumption is the total consumption made by visitors, or on behalf of a visitor, for and during his/her trip and stay at the destination. Included in this definition are both actual expenditures and imputations for the consumption by visitors of certain services for which they do not make a payment. Consumption before and after the trip is likewise included provided the expenditures are related to the trip, such as the purchase of luggage or film processing. Tourism Output Tourism output is measured at basic prices, that is before any taxes on tourism product are added (or any subsidies on tourism products are deducted). Output consists of those goods and services that are produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use. Tourism Gross Value Added (TGVA) Tourism gross value added measures the value of tourism gross output at basic prices by all industries which supply tourism products, less the value of the inputs used in producing these tourism products. Tourism gross value added is directly comparable with the value added of 'conventional' industries such as mining and manufacturing and should also be used for comparisons across countries or regions. Tourism Gross Domestic Product (TGDP) or Tourism Gross State Product (TGSP) Tourism GDP is tourism gross value added plus taxes paid less subsidies received on tourism related products as these are reflected in prices that visitors actually pay. Taxes on tourism products include the Goods and Services Tax (GST), wholesale taxes and excise duties on goods supplied to visitors. TGDP and TGSP will generally have a higher value than tourism value added. TGDP and TGSP are a satellite account construct to enable a direct comparison with the most widely recognised national accounting aggregates, GDP at the national level, and GSP at the state or territory level. While it can be useful in this context, tourism gross value added is normally used when making comparisons with other industries or between countries or regions. Direct Impacts of Tourism The estimates of tourism consumption, output, value added and gross domestic product (GDP) presented in the national TSA are recorded at current prices, that is the prices prevailing in the period to which the observation relates. The estimates relate to the direct impact of tourism only. A direct impact occurs where there is a direct relationship (physical and economic) between the visitor and producer of the good or service. Employed Person An employed person is a person aged 15 years and over who, during the reference week of the relevant Labour Force Survey: worked for one hour or more for pay, profit, commission or payment in kind in a job or business, or on a farm (comprising employees, employers and own account workers); worked for one hour or more without pay in a family business or on a farm (i.e. contributing family workers); were employees who had a job but were not at work and were: on paid leave; on leave without pay for less than four weeks up to the end of the reference week; stood down without pay because of bad weather or plant breakdown at their place of employment for less than four weeks up to the end of the reference week; on strike or locked out; on workers compensation and expected to be returning to their job; or receiving wages or salary while undertaking full-time study; or were employers, own account workers or contributing family workers who had a job, business or farm, but were not at work. Tourism Employed Person Tourism employed persons is derived by multiplying the number of employed persons in the each industry by the proportion of total output of the industry which is related to tourism. * These definitions are based on the Explanatory Notes to ABS Tourism Satellite Account, Australian National Account, 5249.0, 2006 07, with adjustment where necessary to reflect the state/territory focus of this report. 44

REFERENCES Adams, P.D. (2008). MMRF Database, Centre of Policy Studies, Monash University, Melbourne. Adams, P.D. (2006). MMRF Database 2003 04, Centre of Policy Studies, Monash University, Melbourne. Adams, P.D., Horridge, J.M. and Parmenter, B.R. (2000). MMRF-GREEN: A Dynamic, Multi-Sectoral, Multi- Regional Model of Australia, Preliminary Working Paper No. OP 94, Centre of Policy Studies, Monash University, Melbourne, http://www.monash.edu.au/policy/ accessed on 10 July 2008. Australian Bureau of Statistics (2005). Australian Industry: States, Territories and Australia, Industry Subdivision: Experimental Estimates 2002 03 (8155.0.55.003), released on 07 February 2005, Canberra http://www.abs.gov.au accessed on 14 February 2007. Australian Bureau of Statistics (2007). Australian National Accounts: State Accounts 2006 07 (Cat. No. 5220.0), Canberra, http://www.abs.gov.au accessed on 18 April 2008. Australian Bureau of Statistics (2008a). Australian National Accounts Tourism Satellite Account 2006 07 (Cat. No. 5249.0), Canberra, http://www.abs.gov.au accessed on 18 April 2008. Australian Bureau of Statistics (2008b). Labour Force, Australia, Detailed, Quarterly (Cat. No. 6291.0.55.003), Released on 19 June 2008, Canberra, http://www.abs.gov.au accessed on 25 August 2008. Department of Immigration and Citizenship (2008). Total Departures: Category of Traveller by Actual State of residence, for the Financial Year 2006 07, Canberra. Dwyer L., Forsyth, P., Spurr, R. and Ho, T.V. (2005). Measuring Tourism Productivity and Economic Yield Using TSAs and CGE Models, World Tourism Organization Conference, The Tourism Satellite Account (TSA): Understanding Tourism and Designing Strategies, Iguazu Falls, Argentine/Brazil/Paraguay, 3 6 October. Forsyth P., Pambudi D., Spurr R., Dwyer L., Ho T., Hoque S., (2007) State and Federal Taxes on Tourism in Australia estimates for 2003 04 Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ Ho, T.V., Dwyer, L., Pambudi, D., Spurr, R., Forsyth, P. and Hoque, S. (2008). Indirect economic contribution of tourism to Australia and to Australian states and territories, 2003 04, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ accessed on 12 September 2008. OECD, EUROSTAT, UN and WTO (2000). Tourism Satellite Account: Recommended Methodological Framework, Brussels/Luxemburg, Madrid, New York, Paris. Spurr R., Ho, T.V., Forsyth, P., Dwyer, L., Pambudi, D. and Hoque, S. (2007a). Tourism Satellite Accounts 2003 04 Summary Spreadsheets, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ (2007b). Tourism Satellite Account New South Wales 2003 04, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ (2007c). Tourism Satellite Account Victoria 2003 04, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ (2007d). Tourism Satellite Account Queensland 2003 04, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ (2007e). Tourism Satellite Account South Australia 2003 04, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ (2007f). Tourism Satellite Account Western Australia 2003 04, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ (2007g). Tourism Satellite Account Tasmania 2003 04, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ (2007h). Tourism Satellite Account Northern Territory 2003 04, Sustainable Tourism Cooperative Research Centre, Gold Coast, Queensland, http://www.crctourism.com.au/ 45

Tourism Research Australia (2007a). CD-MOTA (electronic version of TRA data for IVS and NVS to June 2006), Canberra. Tourism Research Australia (2007b). International Visitors in Australia, June 2007 Quarterly Results of the International Visitors Survey, Canberra. Tourism Research Australia (2007c). Travel by Australians, June 2007, Quarterly Results of the National Visitors Survey, Canberra. 46

GLOSSARY ABS ACT ANZSIC ATSA AUS CEP CGE CoPS DIAC FBT GDP GIVA GSP GST GVA IVS NSW NT NVS OECD QLD SA Australian Bureau of Statistics Australian Capital Territory Australian and New Zealand Standard Industrial Classification Australian Tourism Satellite Account Australia STCRC Centre for Economics and Policy Computable General Equilibrium Centre of Policy Studies, Monash University Department of Immigration and Citizenship Fringe Benefits Tax Gross Domestic Product Gross Industry Value Added Gross State Product Goods and Services Tax Gross Value Added TRA International Visitor Survey New South Wales Northern Territory TRA National (domestic) Visitor Survey Organisation for Economic Cooperation and Development Queensland South Australia 47

STCRC TAS TGDP TGSP TGVA TGVA TRA TSA UNWTO VFR VIC WA Sustainable Tourism Cooperative Research Centre Tasmania Tourism Gross Domestic Product Tourism Gross State Product Tourism Gross Value Added Tourism Gross Value Added Tourism Research Australia Tourism Satellite Account United Nations World Tourism Organization Visiting Friends and Relatives Victoria Western Australia 48

Travel and tourism industry Academic researchers Government policy makers N RESEARCH AND DEVELOPMENT TI INDUSTRY P ARTNERS EDUCATION AND TRAINING ON INN COLLABORATION OVA O I T A C O M NIC M U COMMERCIALISE UTILISE New products, services and technologies Uptake of research finding by business, government and academe Improved business productivity Industry-ready post-graduate students Public good benefits for tourism destinations UNIVERSITY P ARTNERS C O M M E R C I A L I S AT I O N EC3, a wholly-owned commercialisation company, takes the outcomes from the relevant STCRC research; develops them for market; and delivers them to industry as products and services. EC3 delivers significant benefits to the STCRC through the provision of a wide range of business services both nationally and internationally. TOURISM NT NORTHERN TERRITORY AUSTRALIA KEY EC3PRODUCTS Chairman: Stephen Gregg Chief Executive: Ian Kean Director of Research: Prof. David Simmons CRC For Sustainable Tourism Pty Ltd Gold Coast Campus Griffith University Queensland 4222 Australia ABN 53 077 407 286 Telephone: +61 7 5552 8172 Facsimile: +61 7 5552 8171 Website: www.crctourism.com.au Bookshop: www.crctourism.com.au/bookshop Email: info@crctourism.com.au