Aviation and Tourism: The head and heart of the visitor economy Prepared for: Prepared by: Date: Tourism Industry Summit: Sapphire Coast Carolyn Childs, Director, MyTravelResearch.com Oct 9 th 2014 Disclaimer: Please note that the data contained in this document has been prepared for the specific purpose of the Tourism Futures Conference. It may not be suitable for other applications. The use of this data for any other purpose should be discussed with the lead author. MyTravelResearch.com accepts no responsibility for unauthorised use of this data by a third party. MyTravelResearch.com 2014
Flightplan A history of growing together Aviation impact on the visitor economy (1) SOME REALLY BIG NUMBERS Win Win: LCC s as game changers for the visitor economy Aviation impact on the visitor economy (2) WIIFM? Leveraging the world s most monetisable asset Page 2
A joint history of growth globally World tourism arrivals and some aviation changes A380 1 st commercial flight Air Asia launched 747-400 launch EU deregulation Australia signs first ADS agreement with China 747 1 st commercial flight APEX fares As quoted in The Geography of Transport Systems 1998-2013, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Page 3
A joint history of growth where we work together well Quoted in Global Report on Aviation - Responding to the needs of new tourism markets and destinations, UNWTO 2012 Page 4
Aviation impact on the visitor economy (1) SOME REALLY BIG NUMBERS Sources: Oxford Economics, WTTC, ATAG -The economic and social benefits of air transport 2008 Page 5
Aviation growth supports tourism which supports jobs ACI estimates that every 1 million passengers transiting an airport brings 1,000 jobs to an economy In Europe, the average jobs gain to a sub-region is 1500 Sources: Oxford Economics, WTTC, ATAG -The economic and social benefits of air transport 2008, ACI in Global Report on Aviation Responding to the needs of new tourism markets and destinations, UNWTO 2012 Page 6
Win Win: LCC s as game changers for the visitor economy As supplied by PATA Page 7
LCC s Create New Destinations & Economies 40% of world tourism arrivals in 2007 arrived by air Compared to 35% five years earlier As supplied by PATA Page 8
LCC s build visitors to destinations London to Alghero (Italy) London to Dinard (France) London to Biarritz (France) Page 9
This new growth creates dispersal widening the benefits of tourism across regions Global Report on Aviation - Responding to the needs of new tourism markets and destinations, UNWTO 2012 Page 10
Win win can be win win win as LCC s do not automatically displace scheduled flights Mix of traffic at Porto Airport Source: Global Report on Aviation Responding to the needs of new tourism markets and destinations, UNWTO 2012 Page 11
LCCs can encourage independent travel Source: Tourism Research Australia, Tourism Northern Territory, Destination Visitor Survey Impact of LCC s on Alice Springs, 2008 Page 12
Although LCC passengers spend less overall, revenue can end up in places that spreads the benefits more widely in the economy Source: Tourism Research Australia, Tourism Northern Territory, Destination Visitor Survey Impact of LCC s on Alice Springs, 2008 Page 13
Aviation impact on the visitor economy (2) WIIFM? The benefits of tourism flow into the wider economy including places that build knowledge, innovation and wider social capital Estimated impact of incremental tourism expenditure in South Western WA if Busselton Airport upgraded Reproduced with kind permission of the City of Busselton and Tourism Western Australia Page 14
The most monetisable asset on the planet? Emotional engagement Necessary for decision-making Drives advocacy The key measure of value Page 15
Emotional engagement drives tourism growth Case study: The creation of the APEX fare The launch of the APEX fare, the gamechanger of its day Corn Flakes package and logo Kelloggs Page 16
Availability of new services fulfills dreams Source: Tourism Research Australia, Tourism Northern Territory, Destination Visitor Survey Impact of LCC s on Alice Springs, 2008 Page 17
and drives engagement Source: Tourism Research Australia, Tourism Northern Territory, Destination Visitor Survey Impact of LCC s on Alice Springs, 2008 Page 18
A new vision statement for the visitor economy To connect people and places to themselves and to each other in order to make the world a more enriching* place * Pun intended! Page 19
Look at what we do in a new way http://www.youtube.com/watch?feature=player_detailpage& v=pmscpvo4rlw#t=17 Page 20
Thanks for listening! If you have questions please contact us carolyn@mytravelresearch.com www.mytravelresearch.com TravelResearch0 MyTravelResearch.com Disclaimer: Please note that the data contained in this document has been prepared for the specific purpose of the Tourism Futures Conference. It may not be suitable for other applications. The use of this data for any other purpose should be discussed with the lead author. MyTravelResearch.com accepts no responsibility for unauthorised use of this data by a third party. MyTravelResearch.com 2014 Page 21