Cairns & Great Barrier Reef. Adventurous by nature

Cairns & Great Barrier Reef Adventurous by nature Updated on: Friday, 5 July 2013 cairnsgreatbarrierreef.org.au Updated on: Friday, 5 July 2013 Last updated: Wednesday, 25 June, 2013

Visitor Potential Total visitors Total Holiday Visitors Current overall size of market and trends (YE DEC 12) 96,375 87,853 Change YE DEC 11 to YE DEC 12 Change YE DEC 11 to YE DEC 12 +13% +6% Total Visitors 2005 2010 2011 2012 2013 2014 2015 Potential total visitors to CGBR YE DEC Actual total visitors to CGBR YE DEC 115,000 135,000 250,763 111,151 85,660 96,375 120,000 155,500 211,700 Actual average length of stay (visitor nights) 5 7 5 9 Market Share 2005 2010 2011 2012 2013 2014 2015 Potential CGBR proportion of Aust. market share Actual CGBR proportion of Aust Market Share 2011 2015 Strategic Plan 40% 40% 39% 39% 39% 41% 46% Expenditure 2005 2010 2011 2012 2013 2014 2015 Potential TTNQ visitor expenditure Actual TTNQ Visitor Expenditure $104.6M $105.4M $65.4M $94M $142.7M $161.5M $178.6M

Visitor Potential Graph 300,000 Visitor poten.al - Japanese Visitors to TNQ 250,000 Total Visitors 200,000 150,000 100,000 50,000 0 YE DEC 05 YE DEC 10 YE DEC 11 YE DEC 12 YE DEC 13 YE DEC 14 YE DEC 15 Total visitors 250,763 111,151 85,660 96,375 120,000 155,500 200,000

Assumptions Year Ending December 2012- TNQ attracted 96,375 Japanese visitors increase by 13.0% due to a rebound after sluggishness in overseas travel following the Earthquake and Tsunami disasters. In 2012, Japanese travelling abroad increased to hit 18.49M. This marks the first time that the annual total of outbound Japanese travellers surpassed the threshold 18 million. With Australia receiving 1.92% for Japanese outbound market share, there is still huge potential to attrtact Japanese visitors to Cairns and Great Barrier Reef. Main Results: - Increased JQ Osaka/Cairns flights from four times weekly to five times weekly from Northern Summer 2012 including its daily flights between 27 July and 2 September 2012. - Created 15 charter flights operated by eight Korean Air peak period charter flights in May, Aug, Nov & Dec, four Transaero Air/JTB school excursion charters in Oct, three Japan Airlines Eclipse charter flight in Nov that created over 4,200 visitors to the region. 2013- Anticipating 120,000 Japanese visitors based on the following capacities and passenger load factors. The figures are calculated in inbound Japanese excluding Australian outbound. Japanese visitors anticipation: 70,647 visitors (105,444 seats @ 67% - JQ Tokyo including 17 cancellations) 22,058 visitors (33,936 seats @ 65% - JQ Osaka 4/Weekly x 28 weeks until 12 July 2013) 11,589 visitors (15,453 seats @ 75% - JQ Osaka 7/Weekly until 1 Sep 2013) 8,271 visitors (11,817 seats @ 70% -JQ Osaka 5/Weeklyx8 weeks-39flights until26oct 2013) 8,059 visitors (11,514 seats @ 70% - JQ Osaka 38 flights x 303 from 27 Oct 2013) 7,415 visitors (16,120 seats@ 46% - UA via Guam) 884 visitors (5,200 seats@ 17% - PX via Port Moresby) 2,604 visitors (8 Charter flights 4 KE Charters and 4 JTB/Transaero Air School Charters) 7,200 visitors city of arrival SYD, visiting TNQ JAL & QF (600pax x 12 months) 840 visitors via third country carriers - Cathay Pacific and others (70pax x 12months) TOTAL: 139,567 visitors A scenario of JQ Osaka/Cairns daily services from July 2013 (confirmed 13 July to 1 September) will provide 15,453 capacities. Expect JQ Tokyo/Cairns services will make good performances from mid 2013 by TTNQ s tactical activities. Additionally, 8 charter flights will provide over 2,600 visitors to the region. The Japanese economy is expected to recover in 2013 leading by Prime Minister Shinzo Abe s policies of massive fiscal spending, encouraging private investment, aggressive monetary easing and a weaker yen policy. In 2013, the Japanese trade industry is expected to pick up their businesses from mid 2013. JTB Foundation output demand forcast for 2013 is that Japanese overseas travellers will exceed 18 million. Year Ending December 2014 - Anticipating 155,500 Japanese visitors, there will be 29.5% growth per annum. Year Ending December 2015- Anticipating 211,700 Japanese visitors, there will be 36.1% growth per annum.

Analysis of visitors Japanese Holiday Visitors to TNQ - First vs Return Visit to Australia Holiday Visitors 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 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 179,512 177,953 150,527 120,184 58,987 79,462 64,074 63,347 Return visit 57,076 46,832 42,528 35,651 23,128 24,666 18,576 24,506 Japan is the market that it has very low repeat visitor rate (27.8%). Cairns needs to attract more repeat visitors to achieve the target of Vision Cairns 2015 (211,700 Japanese visitors by 2015). Japanese Visitors - Purpose of travel to TNQ YE Dec 12 1% 1% 1% 2% Holiday VisiDng friends and reladves Business EducaDon Employment Other 94% The figure shows that the main reason for Japanese visitors coming to Cairns is holiday, account for 94%. Other reason account for 2%, Employment for 1%, Education for 1%, Business for 1% and VFR for 1% respectively.

Aviation Continue a regular dialogue with Jetstar to boost sales for Jetstar Tokyo/Cairns and Osaka/Cairns services and implement JQ Osaka seasonal daily flight project to make the daily through the year. In partnership with Jetstar Japan, to promote JQ Japan domestic feeder interline services and increase the number of interline connecting passengers for Cairns through Narita Airport (Tokyo) and Kansai Airport (Osaka) when interline flights are connected. Also develop seasonal program charters for the peak period i.e. Sapporo/Cairns for Dec-Feb. Continue to engage in regular dialogue with United to create additional services and to conduct regular activities focusing the regions of Nagoya and Fukuoka. Continue to engage in regular dialogue with Air Niugini to secure the Saturday flight from Tokyo to Cairns via Port Moresby. Continue to engage in regular dialogue with Jetstar, Delta, United, Nagoya Central Airport, Nagoya City Government and Nagoya Travel Trade to reinstate Nagoya/Cairns direct flights. Continue regular dialogue with Korean Air to secure charter flights for the holiday peak periods for Xmas/End Year 2013 and Golden Week in May 2014. Continue to regular dialogue with JTB Kyushu and Transaero Air to secure four flights school excursions for October 2013. Continue to work with Qantas, Japan Airlines, Cathay Pacific and China Eastern for the promotions of via Sydney, Hong Kong and Shanghai combination tour programs for Cairns. Continue to regular dialogue with United, Delta, Japan Airlines, All Nippon Airways, Air New Zealand and other potential airlines to operate new services for Cairns.

Hero Experiences VISION By 2020 Cairns & Great Barrier Reef will be globally recognised as the world s leading tropical holiday destination and the gateway to adventure amongst the natural wonders of the World Heritage Listed Great Barrier Reef and World s Oldest Living Rainforest CORE PROMISE Feel the natural exhilaration of an Australian Tropical Adventure where two World Heritage Listed icons live side by side HERO EXPERIENCE: Great Barrier Reef Experience the ultimate Great Barrier Reef from above, upon and below - feel the exhilaration and thrill of an accessible encounter with the largest array of amazing marine on the Great Barrier Reef HERO EXPERIENCE: World s Oldest Tropical Rainforest Feel the tranquility and adventure of an authentic awe inspiring connection with nature as you explore this ancient tropical rainforest and the plants, animals and people that inhabit it! HERO EXPERIENCE: Tropical lifestyle & culture Soak up the best of what this tropical paradise has to offer, the local culinary delights, culture, outdoor events, laid back lifestyle and local character HERO EXPERIENCE: Adventure Experience your own adventure, from adrenalin filled to adventures in natures playground of remote and untouched landscapes of the savannah country to the majestic intricacies of the rainforest and reef HERO EXPERIENCE: Aboriginal & Torres Strait Island People Connect with the culture and creativity of the regions vibrant indigenous people. Discover their distinct cultures and listen to the ancient stories of the land and sea, learn of their ancestors traditional way of life.

Target Segments Key Segments who they are: Primary Office Ladies/Honeymoon (Age 20-39) Families Secondary Wedding Youth & Students Jukunen/Mature (Age 60 +) MICE & Group Events & Sports Experiences Match what they want to do: Primary Two World Heritages - Great Barrier Reef (Day and Island Stay, Scenic Flights, Seawalker, Snorkeling and learn to dive) - Rainforest (Walking, Day and extended overnight tours) Soft Adventure (Rafting, Ballooning, Horse Riding, etc) Nature & Wildlife Beach & Resort Stay (Palm Cove & Port Douglas) Study & Indigenous Culture Secondary Events/Sports Outback Self Drive Lifestyle & Culture & Meeting Locals Precincts Match where they can do it: Cairns Palm Cove Port Douglas Daintree/Cape Tribulation Gulf Savannah Atherton Tablelands Mission Beach Kuranda Great Barrier Reef & Islands In segmenting the Japanese travel market for Cairns & Great Barrier Reef, TTNQ developed the First Priority (Office Ladies/Honeymoon and Families) and the Second Priority (Wedding, Youth & Students, Jukunen/Mature, MICE & Group, Events & Sports). Visitors from Japan by age, people aged 25 to 34 years are the biggest market, the next group is 15 to 24 years old. Japanese Youth & Students businesses (School Excursion/Working Holiday age 15-25) are sustainable business and MICE/Events/Sport businesses are lucrative businesses in this region.

Niche Experiences Diving Golf Bird Watching Whole Watching Self Driving Events Cairns Adventure Festival, Ironman Cairns, Cairns to Karumba Bike Ride, Great Barrier Reef Masters Games, Great Barrier Reef Marathon Festival Port Douglas. Demographics Japanese visitors 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Age of Japanese Visitors to TNQ 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 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and over The figures show the age of 25 to 34 has been making up the largest proportion for Japanese visitors coming to Cairns that consists of honeymoon couples and young families.

Travel party - Japanese visitors to TNQ YE Dec 12 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 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 Unaccompanied traveller Adult couple Family group - parent(s) and children Friends and/ or reladves travelling together Business associates travelling together with or without spouses School tour group (teachers and/or students) (2011 onwards) The figures show adult couple has been making up the largest proportion for Japanese visitors coming to Cairns, followed by Friends and/or relatives travelling together and Family group.

Market Activity 1. Grow market share and increase visitor expenditure Ø grow international market share for all visitors to TNQ from 13% to 16% Ø increase TNQ s international visitor expenditure from $605M to $1.1B and domestic visitor expenditure from $1.44B to $1.85B by 2015 Key Strategic Outcomes: Leverage marketing partnerships Increase the region s digital reach Strengthen destination appeal through media and publicity Actively promote the diversity of our region to our customer segments within priority growth markets Grow visitation in shoulder seasons Activity: Conduct tactical campaigns with TEQ, TA and airlines to leverage our funds and work with trade and online partners for call to action. Promote Cairns regional areas to dispersal within the region and to increase the length of night. Work closely with Jetstar to promote its Tokyo/Cairns and Osaka/Cairns flights for Cairns mono programs Work with TA and TEQ for media and trade famil opportunities. Develop digital campaigns to increase the awareness of Cairns and the regional areas. Develop wedding market and affluent target segments. ATE 2014 to be held in Cairns. Concentrate on low season maintain integrity of airline schedule

2. Strategic Aviation Growth Ø Grow international seats (incoming) from 478,764 to 800,000 Ø Grow domestic seats (incoming) from 2,000,000 to 2,700,000 Key Strategic Outcomes: Grow capacity on existing Domestic and International routes Secure direct services from Nagoya and (Singapore, Guangzhou) Increase year round charter capacity from Asia Maximise interline aviation agreements Activity: Implement the strategy for Vision Cairns 2015 for development of additional air capacity. Continue to work with travel trade and online companies to boost sales for Jetstar Osaka/Cairns services to increase the number flights for the route to be daily flights through the year. Conduct joint marketing activities and campaigns with Tourism & Events Queensland and Jetstar concentrating on using wholesale partners for call to action. Implement consumer direct activity with Tourism Australia using digital and TV channels and where possible affinity partners. Reinforce CGBR as the gateway to the Great Barrier Reef and Rainforest. Reinforce the natural assets of the Cairns & Great Barrier Reef region (Great Barrier Reef, Rainforest, Palm Cove, Port Douglas and Tableland). Combat the exchange rate by presenting CGBR as a quintessential Australian experience this includes Reef, Rainforest, Beaches, Tableland and Outback (including Indigenous). Work with Tourism & Events Queensland, Tourism Australia and airlines for media and trade familiarisation opportunities. Conduct sales activities (QOT Japan, strategic meetings with airlines, regular dialogue with key travel and online agents, destination seminars, trade & consumer famils and consumer events) Work with Inbound Tour Operators (ITO s) for new product development and destination exposure. Identify trade and consumer expos for Cairns & Great Barrier Reef exposure.

3. Sustainable Funding Ø Increase tourism marketing by a minimum of $3M annually Key Strategic Outcomes: Increase TTNQ membership revenue Increase local State Government funding Maximising grant opportunities Increase revenue from marketing partners Activity: Leverage off TEQ and TA activities: trade, media, direct consumer, social media to include TNQ Leverage activities with TTNQ members and other partners to increase awareness of TNQ; identify opportunities TTNQ can be involved in, either in kind or financial contribution Work with other TTNQ departments where Grants have been acquired to include Japan activity where possible and inline with guidelines 4. Destination Management Partnerships Ø Develop partnerships with agencies that carry responsibility for investment, labour and skills, and infrastructure development to achieve growth Key Strategic Outcomes: Develop partnerships with local government, Advance Cairns, Chamber of Commerce, QTIC for investment infrastructure development and industry advocacy with Wet Tropics, GBRMPA, National Parks for nature based tourism working through the alliance of sustainable tourism with TAFE, JCU, ATEC and QTIC on skills development Monitor and report against outcomes within the TNQ REP Monitor outcomes of Destination Q Activity: Maintain and strengthen partnerships with Cairns Regional Council, Cairns Airport, LTO s, Chamber-Advance Cairns, JCU and TAFE

Market Intelligence Japan s week Yen policy, aimed at pulling its economy out of deflation become one of the issues for its import business including overseas travel. Hawaii has continuously increased scheduled seats from Japan. It was increased by 9.9% in 2012 compared to 2011 due to rising seats counts out of Osaka, Nagoya and Fukuoka by both of Delta and Hawaiian Airlines. Korean Air has resumed operating daily flights between Narita (Tokyo) and Hawaii from the NS 2013 schedule. Hawaiian Airlines add its fifth Japan gateway in June 2013 with launch of new service three times a week from Sendai to Hawaii. Continue to negotiate with Japan Airlines, Korean Air, Transaero Air, Delta and major wholesalers to operate further charter programs for 2013/2014. Highlighting Cairns as a mono destination that currently accounts for 65% of itineraries sold. Strong growth in visitor numbers in 2012 will be maintained by expanding experiences and mono itineraries. In 2013/2014, the Japanese travel industry is expected to boost their sales from the Eastern Japan Earthquake and Tsunami Disaster, as the Japanese outbound market is to fully rebound. In 2012, the Japanese outbound marked the first time that the annual total of outbound Japanese travellers surpassed the threshold 18 million. Australia has decreased its Japanese outbound market share to 1.92%, decreased by 0.04% in 2012 compared to 2011. JTB Foundation output demand forecast for Japanese outbound market 2013 will reach 19M, increased by 2.7% increase given 18.49M travellers in 2012. Expect a growth of group business and events (e.g. School Excursions, MICE and Cairns sports event participants) Jukune/Mature markets have seen a recovery sign and Young and Honeymoon traveller are getting active segments for 2013/2014. Competitive Destinations to Cairns & Great Barrier Reef Hawaii Guam Saipan Korea China Taiwan Hong Kong Macau Vietnam Singapore Thailand Malaysia Indonesia United States Canada

Campaigns Actioned The International Trade Marketing Team are continually working with our trade partners Tourism Australia, Tourism & Events Queensland, Jetstar, United, Airlines and wholesale partners to implement campaigns to promote the Cairns & Great Barrier Reef region and the experiences on offer to their customers. Details on campaigns that have been in market can be found at: http://ttnq.org.au/marketing/japan.aspx Future Activities Campaign Advertising / Sell Period Travel Period JQ Interline Fukuoka & Sapporo Campaign Oct - Dec 2013 Oct 2013- Mar 2014 JQ Off Peak Cairns Best Season Campaign Tactical activities with JQ and wholesalers to boost JQ sales for Apr-Jun 2014 JQ Tokyo/Osaka CNS Daily Promotion Wedding Magazine Promotion Billboard & Digital Campaign Feb Jun 2014 Apr Jun 2014 Jul 2013 Jun 2014 Jul 2013 Jun 2014 TA/TEQ Partnership Promotion Asia Marketing Fund One Voice Campaign UA Campaigns UA Nagoya Campaign UA Fukuoka Campaign Jul 2013 Jun 2014 Jul 2013 Jun 2014 Jul 2013 Jun 2014 Jul 2013 Sep 2014 Contestable Fund Campaign Jul 2013 Jun 2014 Jan Jun 2014 Aviation Development including Charter Flights Korean Air Xmas & Golden Week JTB Kyushu School Excursion Jul 2013 Jun 2014 Jul 2013- Sep 2014 Other Activities JQ Japan Interline Promotion Seminars in Sapporo and Fukuoka with Gold Coast Tourism Pre QOT Japan *QOT Japan attending operators have the option to attend. Queensland on Tour Japan 2013 QOT Japan *Visiting Osaka, Nagoya and Tokyo. Attending operators have the option to attend the JATA World Travel Fair 2013 on 12-15 Sep. Date 4-6 Sep 2013 8-11 Sep 2013 Post QOT Japan Sales Calls 12 20 Sep 2013 JQ/UA Strategic Meetings & Sales Calls 17 28 Feb 2014 Tokyo Marine Diving Fair 2014 4-6 Apr 2014 Vision Cairns 2015 Senior Management Forum in Japan. Proposed for Jun/Jul 2014 JQ Cairns Regional City Trade Seminars - TBC Jun /Jul 2014 TBC

Marketing Events Calendar The Marketing Events Calendar is a working document and updated regularly, then uploaded to our corporate website. The Calendar contains dates and events that we are aware of for the coming twelve months. Link for all events: http://www.ttnq.org.au Key Wholesaler / Tour Operator Partners JTB JTB World HIS Kinki Nippon Tourist Nippon Travel Agency Hankyu Travel International Jetstar Tours / Arc Three International Top Tour Jalpak STA Travel ST World Nishitetsu Travel Meitetsu Travel Nippon Express Yomiuri Travel Travel Plaza International Rakuten Travel ALAN (Veltra) Corporation Australian Tour Specialist Trans Orbit

Precinct Message Cairns Cairns pulses with energy as the heart of the Great Barrier Reef and the Wet Tropics rainforest. More than 600 tours a day make the most of the year round outdoor lifestyle while world class sporting events and festivals embrace the cosmopolitan city s vibrant tropical culture. Gulf Savannah The Gulf Savannah is a vast, rugged land where natural attractions of extraordinary beauty including spectacular gorges and lava tubes are in stark contrast to the wide, open spaces. Friendly characters and historic towns showcase the outback s rich pioneering heritage and offer a true Australian adventure. Mission Beach Nature takes centre stage at Mission Beach with its long unspoilt beaches, deserted islands and white-water rivers fringed by rainforest. There are no crowds at this seductive and easy going destination which is perfect for relaxation or discovering adrenalin pumping outdoor activities. Palm Cove A coconut fringed beach sets the idyllic scene at Palm Cove for lazy days relaxing on the beach or at a tropical resort. Refine your senses with gourmet treats at a beachfront restaurant, indulgent treatments at a spa or boutique shopping for fashion and art. Port Douglas and Daintree Port Douglas and Daintree is where the two World Heritage areas of the Great Barrier Reef and the Wet Tropics rainforest meet. Revitalise your spirit in the world s oldest tropical rainforest and discover the charm of a boutique tropical village with diverse accommodation, restaurants, shopping and spas. Tablelands and Kuranda The Tablelands and Kuranda is an uplifting destination of timeless villages, exotic tropical foods, country markets and diverse wildlife. A network of scenic drives through contrasting landscapes makes it easy to explore waterfalls and crater lakes or taste food and wine at its source. Cooktown and Cape York Rich with Aboriginal culture and Australian pioneering history, Cooktown and Cape York is an untamed wilderness area that continues to entice explorers. The journey to the top of Australia is an epic adventure taking in memorable pubs, ancient rock art and spectacular natural