June 2018 TEQ Marketing Strategy 2025 Executive Summary
Vision and The Opportunity Tourism and Events Queensland s (TEQ) Marketing Strategy 2025 provides a platform to realise the TEQ vision of inspiring consumers to visit through showcasing Queensland s hero experiences. Tourism and Events Queensland Vision INSPIRING THE WORLD TO EXPERIENCE THE BEST ADDRESS ON EARTH through brand, integrated marketing and events in priority domestic and international source markets Queensland s signature experiences and events through quality and innovation showcasing the best of Queensland The Opportunity Tourism has been identified as a key growth industry critical to the overall success and resilience of the Queensland economy. Tourism contributes 7.5% of Gross State Product (GSP) and employs 220,000 Queenslanders, generating $25 billion for the state. Queensland s tourism industry has the potential to generate $33.1 billion by 2025 1, and contribute to the generation of 85,000 jobs 2. TEQ plays a key role in supporting industry growth and jobs through: Marketing and promoting tourism in Queensland; Tourism experience and destination development; and Working to identify, attract and promote major events. To reach its full potential, Queensland s tourism industry must overcome a number of challenges, including intense competition from domestic and international destinations. TEQ has developed the Marketing Strategy 2025 (the strategy) to guide tourism marketing and experience development. This long-term strategy aims to realise three objectives for Queensland s tourism industry: Increase overnight visitor expenditure (OVE) from priority domestic and international source markets, supporting Queensland jobs; Maintain and grow Queensland s share of Australian OVE; and Grow equity in the Queensland brand. TEQ has undertaken consumer research in Australia, and is liaising with Tourism Australia (TA) to ensure an aligned approach to segmentation in all TEQ source markets. Research shows that Queensland s experiences are the primary driver of holiday planning and travel. In the eyes of consumers, Queensland owns a range of unique and aspirational experiences, and remains one of the strongest brands in the travel category. TEQ marketing is consumer-led, experiencefocused and destination-delivered: Consumer research has formed the basis for the marketing strategy; Marketing will be based on the Queensland Experience Framework which focuses on those Hero that are the heart and soul of the Queensland story, and; Hero will be brought to life by the Best of Queensland - those tourism operators, events and iconic locations that showcase the best of what Queensland destinations have to offer.
What does success look like? In pursuit of the vision, inspiring the world to experience the best address on earth, TEQ has defined three corporate objectives with corresponding targets for Queensland s tourism industry to reach its 2025 potential 3. These objectives will be realised through the execution of five strategic marketing priorities. Corporate Objectives Measures and 2025 Targets Strategic Marketing Priorities 1. Increase OVE from key domestic and international source markets, supporting Queensland jobs Total Queensland OVE: $33.1 bn 1 (contributing to the generation of 85,000 additional jobs) 2 Relentlessly pursue targets markets with the greatest potential to grow Queensland s share of OVE 2. Maintain and grow Queensland s share of Australian OVE Queensland share of total Australian OVE: 23.4% 26.0% Showcase Queensland s hero experiences and events to create competitive advantage 3. Grow equity in the Queensland brand Queensland Brand Equity Index: 3.3 (Nielsen, all respondents) Inspire a global audience focusing on the conversion of High Value Travellers from priority markets Ensure a focus on the best of Queensland tourism operators, events and locations that deliver exceptional, quality experiences Maximise visitation and expenditure across Queensland 1 Tourism Research Australia (TRA). Note: TRA reviews and revises the Forecasts on an annual basis. Accordingly, TEQ will review the target annually. All targets are based on existing data sources at the time of publication. Measurement of these is subject to the availability and consistency of these data sources. 2 Estimate based on expenditure forecasts in Tourism Forecasts 2017 published by Tourism Research Australia and job creation data in TRA s Tourism State Satellite Accounts 2016-17. 3 The corporate objectives are aligned to the functions of TEQ detailed in the Tourism and Events Queensland Act 2012. These include TEQ s function to attract international and domestic travellers to Queensland, contribute to the Queensland economy and enhance the profile of Queensland. Note that measures and 2025 targets reflect industry performance and are affected by a multitude of factors in addition to destination marketing. Queensland OVE and market share is monitored on a quarterly basis. Reporting and review of Queensland s Brand Equity Index will occur annually. All actions are reviewed annually under TEQ s business planning process.
Consumer Research - understanding the opportunity presented by High Value Travellers Considering the opportunities and challenges facing Queensland s tourism industry, TEQ has undertaken a series of consumer research projects. The objective is to inform a consumer-led and evidence-based marketing approach. Research Findings within Queensland are the primary driver of holiday planning and travel; Queensland owns a range of unique and aspirational experiences; Queensland remains one of the strongest brands in the travel category; and Queensland is considered by holiday travellers to be the primary destination with regions considered more an experience location than a destination brand. Consumer research findings have informed the development of Queensland s Experience Framework, and the refreshed Queensland brand. Domestic and International Segmentation In order to achieve our goals of gaining market share and increasing OVE in Queensland, TEQ targets domestic travellers who will generate a disproportionate share of OVE for Queensland. Those identified as High Value Travellers (HVT) engage in domestic leisure (holiday or visiting friends and relatives) travel, spend more than the average traveller on leisure trips (>$2,000 per trip, or $300 per night for shorter trips), and are aligned to Queensland s competitive offering, indicating they are interested in having the types of leisure experiences Queensland has to offer. Three domestic HVT segments with different holiday preferences and behaviours have been identified, representing approximately 4 million Australians living interstate of Queensland, and 1.1 million Queenslanders: Travelling with children 18-49 travelling without children 50+ travelling without children Tourism Australia has embarked on a journey to transition from predominantly demographically defined and based target audiences across markets, to a global based behavioural and attitudinal target audience. This transformation is underpinned by the development of the HVT segment. As such, TEQ is liaising with TA to ensure an aligned approach to adopting an HVT approach to segmentation in all TEQ source markets. Source: High Value Traveller research commissioned with BDA Marketing Planning, 2017
Queensland s Experience Framework Queensland s Experience Framework identifies five key Experience Pillars and supporting Hero that reflect the heart and soul of the Queensland story and represents where we have a competitive advantage. The Framework will guide TEQ s marketing activities by focusing on Hero that have the best potential to drive visitation and expenditure. The Framework will also identify Queensland s best of the best tourism operators and guide the future development of quality and innovative experiences. Experience Pillars These five experience pillars have been identified through consumer research as categories that set Queensland apart. They form the backbone of Tourism and Events Queensland s creative strategy and define how messaging is delivered to consumers. Reef, Islands and Beaches Natural Encounters Adventure and Discovery Lifestyle, Culture and People Events Hero Each Experience Pillar has a suite of Hero that reflect the heart and soul of the Queensland story and represent where we have a competitive advantage. Great Barrier Reef Islands Beaches Diving and Snorkeling Sailing Natural Landscapes Wildlife Marine Life Adventure Dinosaurs and Fossicking Theme Parks Journeys Food and Beverage Indigenous Local Characters City Outback and Country Life Participation Events Food and Beverage Events Music Events Festivals Arts and Culture Events Spectator Sports Best of Queensland The Best of Queensland are identified as the best of the best tourism products, events and iconic locations that bring to life Queensland s Hero and deliver these within each destination. Tourism Products Events Iconic Locations
Queensland s Key Source Markets UK and Nordic $515.2m ($811.4m) Greater China $1,603.9m ($3,564.1m) Europe $446.8m ($754.1m) Japan $397.5m ($793.2m) Americas $538.1m ($1,009m) South Korea $249.2m ($405.7m) India $151.6m ($327.6m) Southeast Asia $299.2m ($494.7m) Domestic $16,165.2m ($22.3b) New Zealand $564.1m ($973.2m) (2025 potential) YE March 2018 OVE Domestic Markets: Intrastate (within Queensland); Interstate (states other than Queensland) Eastern Markets: Greater China (China, Hong Kong and Taiwan), Japan, Southeast Asia (Singapore, Malaysia and Indonesia), South Korea and India Western Markets: New Zealand, UK and Nordic (United Kingdom and Scandinavia), Europe (Germany, Switzerland, Netherlands, Italy, and France), Americas (USA and Canada) Source: Tourism Research Australia, year ending March 2018. 2025 potential is based on national-level Tourism forecasts to June 2025. Where forecasts were unavailable five-year historic growth was used to estimate future potential.
Strategic Marketing Priorities The following are TEQ s long-term priorities, aligned with the strategies to realise these over the medium term. Five priorities were identified to address the specific challenges and opportunities identified through consumer research and economic analysis. Strategies are reviewed and updated annually as part of TEQ s annual planning process. Strategic Marketing Priority 1. Relentlessly pursue target markets with the greatest potential to grow Queensland s share of OVE 2. Showcase Queensland s hero experiences and events to create competitive advantage 3. Inspire a global audience focusing on the conversion of HVT from priority markets 4. Ensure a focus on the best of Queensland tourism operators, events and locations that deliver exceptional, quality experiences 5. Maximise visitation and expenditure across Queensland Strategies 1.1 Align international target market approach with Tourism Australia to ensure a HVT approach to segmentation in all TEQ source markets. 1.2 Target HVT in priority Australian markets. 1.3 Effectively prioritise markets with the potential to yield the greatest return. 2.1 Use an Experience Framework to guide Queensland s marketing and experience development activities. 2.2 Profile the iconic Great Barrier Reef under the Reef, Islands and Beaches experience pillar. 2.3 Support Event Value Optimisation Cluster Strategies to develop Queensland s Hero Event. 3.1 Evolve the global marketing creative territory build on the local invitation and adaptation to source markets to intercept and engage HVTs resulting in conversion. 3.2 Market Queensland as the best address on earth with a focus on increasing brand salience, leveraging data for targeted interception and driving consumer advocacy. 3.3 Focus activity to inspire global HVTs to consider Queensland for their next holiday by ensuring Queensland is top of mind. 4.1 Implement a program to identify the Best of Queensland and encourage tourism operators to continuously improve the quality of visitor experiences available in Queensland. 4.2 Ensure a focus across all marketing activity on the Best of Queensland - those tourism operators, events and locations that deliver exceptional, quality experiences. 4.3 Actively leverage and encourage Queensland representation in Tourism Australia s Signature of Australia program, formerly the Best of Australia program. 5.1 Increase visitation and expenditure with programs of targeted conversion opportunities that enable TEQ to intercept the consumer at the point of desire (intention) to stimulate conversion. 5.2 Market the Queensland Calendar of Events using the It s Live! In Queensland platform. 5.3 Focus on the development and maintenance of marketing partnerships that will grow available investment to promote Queensland s experience pillars, destinations, products and events. 5.4 Undertake Event Value Optimisation activity to promote relevant events to appropriate markets. 5.5 Leverage the Gold Coast 2018 Commonwealth Games legacy opportunities to profile Queensland as a major events and tourism destination.