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Queensland Asia Tourism Strategy 2016 2025
Queensland Asia Tourism Strategy 2016 2025
2016-2025
teq.queensland.com
Acknowledgements
TEQ recognises and values the Queensland tourism industry and would like to thank the following stakeholders for their input into
the development of this strategy: Accor Hotels, Airbnb, Apollo Campers, Ardent Leisure Limited, Australian Cruise Association,
Brisbane Airport Corporation, Brisbane Convention and Exhibition Centre, Brisbane Marketing, Cairns Airport, Cairns Convention
Centre, China Eastern Airlines, Cruise Whitsundays, Events Management Queensland, Event Hospitality and Entertainment, Far East
Consortium, Gold Coast Convention and Exhibition Centre, Gold Coast Tourism, Great Adventures – Cairns Great Barrier Reef & Green
Island Tours, Griffith University, Hamilton Island Enterprises, Hana Tour Oceania, Hong Kong Airlines, Intercontinental Hotel Group,
Jetstar Airways, Lone Pine Koala Sanctuary, One & Only Hayman Island, Qantas Airways Limited, Queensland Airports, Queensland
Government Department of Education and Training, Queensland Government Department of Tourism, Major Events, Small Business
and the Commonwealth Games, Quicksilver Group, Scoot Airlines, Shayher Group, Skyrail Rainforest Cableway, TAFE Queensland,
Tangalooma Island Resort, The University of Queensland, Tjapukai Aboriginal Cultural Park, Tourism Australia, Tourism Leisure
Corporation, Tourism Tropical North Queensland, Trade and Investment Queensland, Trip Advisor and Village Roadshow Theme Parks.
2.0 THE NEED FOR ACTION................................................................. 7 7.3 The potential of the target segments.................................... 35
2.1 Strategic links to Government priorities.................................8 8.0 QUEENSLAND EXPERIENCES AND THE
ASIAN MARKET................................................................................ 38
2.2 Consultation and partnerships....................................................9
8.1 The experience aspirations of the modern
3.0 OUR VISION.........................................................................................10 Asian traveller...................................................................................... 38
3.1 Goal, objectives, measures and 2025 targets....................11 8.2 Queensland brand and experiences.....................................40
3
EXECUTIVE SUMMARY
Globally, the tourism sector is witnessing phenomenal growth in Tourism and Events Queensland (TEQ) in partnership with
Asian outbound travel. By 2020, Asian outbound travel will reach the Queensland Government has developed the Queensland
286 million travellers – over 100 million more than in 2014.1 Asian Asia Tourism Strategy 2016-2025 (the strategy) to maximise
travellers accounted for one in three international visitor nights in Queensland’s competitive position with Asian travellers, drive
Queensland in 2005; today, they represent nearly half.2 Although sustained growth in Queensland’s tourism industry and deliver
Queensland is attracting increasing numbers of Asian travellers, jobs in regional Queensland. The strategy is based on research
competition from domestic and international destinations will and insights from Deloitte Access Economics and Tourism
intensify. Australia and forms a core component of the Queensland
Government’s overarching strategy: Advancing Tourism 2016-20
to ensure that Queensland capitalises on the Asian opportunity.
Our vision is: Inspiring Asia to experience the best address on earth
This vision is underpinned by an aspirational goal and objectives that will propel the industry beyond ‘business as usual’.
Aspirational Goal
By 2025 Queensland will be recognised as the leading Australian destination for
market share, reputation and experience delivery by Asian travellers
1
Source: MasterCard Intelligence Report (2015)
2
Source: Tourism Research Australia (TRA) International Visitor Survey (IVS) YE December 2015
A key focus of the strategy is on Queensland building and Queensland’s target markets in Asia are segmented into nine
maintaining a balanced and diverse portfolio of mature and Asian countries/regions, their major cities and then life stage
emerging Asian source markets. The strategy identifies the groups. The nine countries/regions are prioritised based on
markets offering the best growth potential and the Queensland volume, maturity, and scope to maximise economic and social
experiences that align and appeal to those target markets and benefits for the state’s tourism and events industry. China, Japan
deliver the essence of Queensland’s core promise Queensland, and South Korea are identified as offering the greatest potential
Where Australia Feels Most Alive. for Queensland. Millennials and Free Independent Travellers (FIT)
are the priority demographics across the majority of markets,
Seven strategic directions and a series of targeted actions will
followed by 35-49 year olds and those aged 50+. Education
be required to achieve the vision, goal and objectives. These
visitors from China, India, South Korea, Taiwan and Japan are
strategic directions are comprehensive in scope. They include:
an important segment. Women have been identified as a target
1. Deliver targeted consumer marketing into key Asian markets for marketing initiatives as they are highly influential in travel
decision making.
2. Enrich trade engagement to increase consumer awareness
and encourage conversion Our success will depend upon the coordinated efforts of industry
and government as the touch points for implementation are
3. Strengthen aviation access and strategic partnerships wide-ranging.
4. Prioritise infrastructure and investment to meet demand
Queensland hosted over one million Asian travellers in the year While the significant contribution of China to the growing Asian
to March 2016.3 These travellers accounted for nearly half (45%) outbound travel market is well acknowledged, there are a number
of international visitor nights in Queensland (increasing 91% of other contributors, as reflected in Figure 1. For the same
since 2007) and are surpassing traditional markets such as New period, Queensland enjoyed strong growth in visitors from Japan
Zealand, the United Kingdom and the United States in expenditure. (up 15.1%), South Korea (up 17.4%), India (up 19.1%) and Hong Kong
China is now Queensland’s largest source market in terms of SAR China (up 13.4%), and growth in expenditure in Queensland
visitor expenditure and visitor numbers. Visitation from China to from markets such as Japan $334.7m (up 9.4%) and South Korea
Queensland increased 28.9% to 443,000, while expenditure by $200.5m (up 39.4 %).
Chinese visitors grew 34.1% to $1 billion (YE March 2016).
Source: Tourism Research Australia (TRA) (2016), International Visitor Survey (IVS), year end Mar 2007 – 2016
Queensland’s unrivalled natural assets, such as the Great Barrier Reef, beaches and rainforests, coupled with its clean, safe urban
offerings in the Gold Coast, Cairns and Brisbane are popular drawcards for Asian visitors.
3
Source: TRA, IVS YE March 2016
7
2.1 Strategic links to Government priorities
The Queensland Asia Tourism Strategy 2016-2025 is a core component of Advancing Tourism 2016-20 which outlines the Queensland’s
Government’s priorities for the tourism and events industry. The strategy will be instrumental in delivering the Advance Queensland:
Connecting with Asia Strategy 2016-20; a Queensland Government funding commitment of $33.5 million over four years to grow tourism
and make Queensland the holiday state in Australia for millions of Asian visitors.
TEQ’s Strategic Plan 2016-2020 identifies the Asian markets as one of five strategic priority areas presenting significant opportunities
to grow overnight visitor expenditure for Queensland. Queensland’s Asia Tourism Strategy 2016-2025 is the key deliverable to enable
success in this area.
The strategy is aligned with and builds on a number of sector specific strategies that are currently driving the tourism industry, including:
Due to the breadth of touch points in growing Queensland’s competitive position in Asian markets, implementation will require action
by a range of stakeholders. Those critical to the success of the strategy include but are not limited to
•• Attracting Aviation Investment Fund •• Queensland’s international airports •• The Department of Natural Resources
Committee and Mines (DNRM)
•• Queensland’s Regional Tourism
•• Australian Tourism Export Council Organisations •• The Department of Science,
(ATEC) Information Technology and
•• Queensland’s tourism and events
Innovation (DSITI)
•• Business Events Australia industry
•• The Department of State
•• Cruise industry partners •• Queensland Tourism Industry Council
Development (DSD)
(QTIC)
•• Education institutions (Universities,
•• The Department of Tourism, Major
ELICOS, VET and schools) •• Queensland Treasury
Events, Small Business and the
•• Great Barrier Reef Marine Park •• Strategic Partners including: Qantas, Commonwealth Games (DTESB)
Authority (GBRMPA) Flight Centre, Singapore Airlines,
•• Trade and Investment Queensland
China Eastern Airlines, China
•• Inbound Tourism Operators (ITO) (TIQ)
Southern Airlines, Mafengwo etc.
•• Investment partners •• Tourism Australia (TA)
•• The Department of Aboriginal and
•• Media partners Torres Strait Islander Partnerships •• Tourism Research Australia (TRA)
(DATSIP)
•• Queensland Convention Bureau •• Travel trade partners
•• The Department of Infrastructure, Local
•• Queensland industry partners •• Tourism Transport Forum (TTF)
Government and Planning (DILGP)
•• Queensland Parks and Wildlife •• Tourism Visa Advisory Group (TVAG)
•• The Department of National Parks,
Service (QPWS) Sports and Racing (NPSR)
9
Confidential
Our vision is: Inspiring Asia to experience the best address on earth
through brand, integrated
Inspiring connecting in a way that resonates with the modern Asian traveller.
marketing and events
10
Market prioritisation will be evaluated and reassessed annually
11
Refer to Section 7.0 Queensland’s Target Market for definitions of accelerate, grow and win share.
Queensland seeks to increase overnight visitor expenditure from Asian markets to $6.86712 billion by
2025, contributing to the state’s visitor economy and supporting up to 30,000 additional jobs.13
This target was developed based on Tourism Forecasts 2016 published by Tourism Research Australia (TRA) Note: TRA reviews and revises the Forecasts on an
12
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.
13
Based on achieving the expenditure goal of $6.867 billion and the job creation equivalent of one additional job for every $100,000 of additional international
OVE (State TSA 2014-15 base year) Note: jobs attributable to Asian OVE cannot be measured independently.
11
Confidential
In the past decade, the importance of Asian travellers to Queensland and Australia has grown significantly and is projected to continue.
It is critical to understand the key drivers of outbound travel from Asia and the characteristics of the new Asian traveller.
Three megatrends underpin the increase in outbound travel from Asia: population growth,
urbanisation and the growth of the Asian economy.
While the megatrends can be identified in the majority of Asian nations/regions, it is important to note that the rate of change will differ,
and hence the implications for this strategy may diverge.
•• More people live in Asia than •• Urbanisation is occurring globally, but particularly in •• The Asian economy has grown
anywhere else in the world, Asia: the WTO projects that 64% of Asia’s population twice as fast as the rest of the
with the region accounting will live in urban areas by 2050. world’s economy since 1970;
for 60% of total global doubling in size every 16 years.
•• A greater share of the population residing in densely
population in 2015 – some
populated urban areas will mean that more people will •• This surge in economic wealth,
4.3 billion people.
reside near an airport and hence have an improved over the long-term, has
•• Asia’s population has rapidly level of air connectivity compared to a population that underpinned a sharp increase
grown in size, tripling since is dispersed throughout more rural areas. in household incomes.
1950.
•• This improved air connectivity lowers the cost and •• The growth in average incomes
•• The United Nation’s World hence increases the propensity of outbound travel. at a national level generally
Tourism Organisation (WTO) leads to disproportionate
•• Densely populated cities challenged with air pollution
projects the population in growth in the number of
and crime is driving a desire to escape to clean, green
the region will increase to 4.9 households who can afford
and safe destinations such as Queensland.
billion by 2030. long-haul travel with a higher
disposable income.
Alongside these megatrends, aviation connectivity has increased in tandem. Over the four years to 2014, Asia was responsible almost
two-thirds of global growth in aviation volumes
> 10,000
Figure 2: Dailyairports
Mega hub long-haulinpassengers
Asia Pacific
By 2034, it 2014
is forecast
that Asia will
have 23 of Beijing, China Seoul, South Korea
the world’s
Tokyo, Japan
Osaka, Japan
New Delhi, India
mega-hub
Shanghai, China
airports; up
from 12 Hong Kong SAR
SIA WILL in
HAVE2014.
14
Mumbai, India
UP FROM 12 TODAY
MEGA-HUB AIRPORTS IN ASIA-PACIFIC
Source: Airbus Global Market Forecast Kuala Lumpur, Malaysia
Singapore
> 50,000 Daily long-haul passengers
2014
2034
Beijing, China Seoul, South Korea
Tokyo, Japan
Mumbai, India
Bangkok, Thailand
Singapore
Jakarta, Indonesia
2034
Denpasar, Indonesia
14
Source: Airbus (2014) Global Market Report.
13
4.2 The new Asian traveller
While Asian tourists have their budgets toward activities and dining, and are seeking
visited Queensland for more unique and exotic destinations compared to typical tours
decades, as they have and well-worn global tourist hubs. Experiences are judged on
grown wealthier and perceived quality and authenticity of interactions.
increasingly turned to the
west for cues on travel, These FIT are:
their tastes have changed.
•• Pursuing unique and exotic destinations
Previous generations
•• Experienced travellers not tourists
of Asian tourists relied
•• Spending more on activities and dining
primarily on group travel,
•• Seeking high quality experiences and cultural immersion
with itineraries organised
•• Highly connected and engaged in social and digital media
by wholesale travel agents, with a minimal level of customisation.
While group travel is still used by a significant proportion (30%) of
The other distinguishing trait of the new Asian traveller is their
Asian visitors to Queensland, the new Asian traveller increasingly
connectedness and proclivity to engage in social and digital
wants to find their own way, opting to book and arrange their
media. Smartphone penetration for the region is currently
own travel, accommodation and experiences. This segment is
estimated at 41% and is projected to increase to over 50% by
commonly known as ‘Free Independant Travellers’ (FIT).
the end of the decade. This growth in smartphone usage has
Asian FIT arrivals to Australia grew from 1.63 million in 2005 to dramatically increased access to the internet, and has changed
2.6 million in 2015. Group travel grew from 377,000 to 515,000 the consumption habits of Asian consumers, increasing their
over the same time. This increasing number of Asian FIT visitors propensity to purchase items digitally via mobile. Similarly, it has
are placing greater importance on experiences and cultural also increased their access and use of social media. For example,
immersion, preferring to be regarded as travellers, rather than over 90% of Japan’s population has a presence on some form of
tourists. These new travellers are allocating a larger share of social media.
The new Asian traveller is distinct from previous generations: they are highly affluent,
educated, urbanised and connected. They prefer autonomy when travelling, rather than a
structured group tour. They are also not a homogenous group – today’s Asian travellers differ
from country to country, city to city, and generation to generation.
15
Data for Year ending March 2016, IVS
The Queensland Asia Tourism Strategy 2016-2025 is an unprecedented opportunity for the Queensland tourism and events industry to
accelerate beyond business as usual and effectively capitalise on the strong growth in outbound Asian visitors. The strategy’s goal and
objectives provide a framework for the action required.
Aspirational By 2025 Queensland will be recognised as the leading Australian destination for
Goals market share, reputation and experience delivery by Asian travellers
15
5.1 Objective 1: Increasing OVE from Asian target markets
To propel Queensland beyond business as usual, the priority objective is to increase overnight visitor expenditure (OVE) and visitation
from target Asian markets, supporting Queensland jobs. In 2014, there were 38 million trips taken by Asian travellers beyond Asia.
Queensland welcomed just 2.2%, of these trips. If trips beyond Asia grow in line with the Tourism Forecasting Committee (TFC) forecast
of inbound Australian travel, the total number of outbound trips will increase to 62 million trips by 2024.16
In the year ending March 2016, the total OVE from Asian visitors to Queensland was $2,441.1 million. This represents 16.9% of the
national total of OVE from Asian visitors and 48% of Queensland’s total international OVE. To increase OVE, Queensland needs to
identify the target markets that present the best opportunity for the state. Integral is understanding what experiences high yielding
visitors from Asia are looking for in their holidays. Investment may be required in infrastructure, experience development and delivery
to secure and retain these travellers.
Source: UN World Tourism Organisation (WTO) and TFC (2016). Note: 2024 shares were derived by applying TFC cumulative growth rate forecasts to
2014 UNWTO figures.
16
Data beyond this date is not available until August 2016.
“The philosophy has to be around people, product and place. When I walk around trade shows such as ITB and see
images from our competitors like the Maldives, Indonesia and Malaysia they could be anywhere. Today’s new
travellers are all about experiences. They want to live like a local and brag about that when they get home.
The defining heart of any country is its people and to be successful into the future we must tell that story.”
17
TRA (2016) IVS
17
Confidential
In identifying and prioritising the Asian markets for Queensland, three dimensions were examined: countries, cities and age cohort.
Overlaying this assessment are criteria defined by Deloitte Access Economics for targeting markets. They include the following:
•• segments that are easily reachable and will be our next ambassadors in local markets; and
•• are measureable.
Based on the population size and long-haul travel propensity forecast out
to 2025, China, Japan and South Korea offer the greatest potential.
Shenyang
SOUTH KOREA P3
Beijing
Tianjin Population: 50M
Dalian Seoul
Daegu Outbound Trips: 5.5M
Xi’an Qingdao Busan Tokyo
Zhengzhou
Australia Share: 3.7%
Nagoya Queensland Share: 0.9%
Amritsar Nanjing Fukouka Osaka Forecast Growth: 3.6% p.a.
Chengdu Shanghai
Chandigarh Chongqing Expenditure: $200.5M
Wuhan Ningbo
Hangzhou
INDIA P4 New Delhi Changsha
Jaipur Fuzhou
CHINA P1
Population: 1,300M Kunming Guangzhou
Foshan
Taipei Population: 1,400M
Outbound Trips: 3.4M Xiamen
Ahmedabad Kolkata Shenzhen Dongguan Outbound Trips: 12.4M
Australia Share: 5.8%
HK SAR Australia Share: 6.7%
Queensland Share: 1.3%
Queensland Share: 2.8%
Forecast Growth: 6.3% p.a. Mumbai Pune
Forecast Growth: 7.7% p.a.
Expenditure: $112.2M
Expenditure: $1,029.1M
Hyderabad
19
*assuming same growth profile as comparators modelled by TFC.
While India and China have similar population sizes, China’s rate of outbound travel beyond Asia is around five times greater than for
India as illustrated in Figure 4.
Queensland is currently capturing a relatively minor share of long-haul trips beyond Asia, highlighting the strength of other
destinations for Indian, South Korean and Japanese travellers. Figure 4 below showcases the opportunity in aligning Queensland’s
product offerings to the tastes and preferences of South Korea and Japan markets to capture a larger share of their outbound trips.
Singapore and Hong Kong SAR China have the highest concentration of trips to Queensland, despite the choice of many other
destinations.
Figure 4: Asian travel beyond Asia – population, travel propensity, Queensland market share
and Queensland’s potential
Qld market share and potential: % of trips per outbound longhaul trip
Source: UNWTO and Deloitte Access Economics (2016) Note: these are estimates of countries visited collected by destination statistical agencies and
compiled by UNWTO. Population statistics are taken from UNESCAP.
As a higher spending cohort, Asian Millennials present a significant opportunity for Queensland.
Figure 6: Rates of repeat visitation by Asian visitors, by age (excluding education purpose of travel)
Source: Deloitte Access Economics (2016) Tourism Research Australia, International Visitor Survey, 2015
21
22
Figure 5: Major city market snapshot: population, average income and aviation activity
Fun loving Young, independent, more sophisticated, and craving fun. “Millennials are aspirational, leading to structural upside in
fun related experience based spending.”
Source: Goldman Sachs Chinese Tourist Boom Report Nov 2015
Global International travel has become a regular part of life and brings “bragging rights”.
“Over the next decade, 74 million Millennials at Chinese universities are set to graduate; we think they will look to travel overseas
in large numbers as they are well informed.”
Currently only 4% of Chinese have a passport, this will quadruple in the coming decade.
Source: Goldman Sachs Chinese Tourist Boom Report Nov 2015
Experiential Actively seek out unique, exciting and original experiences and destinations – Desire to live like the locals against
the ultimate selfie backdrop. “For the Chinese, travel has become…a powerful lifestyle statement”
Source: COTRI Market Report Spring 2016
Digital natives Incredibly engaged with the internet and social media and will gather and share travel info online. 61% of younger
Millennials used their mobiles to plan and book trips in 2015 vs 17% in 2014
Source: Hotels.com
Wealthier university educated and with strong earning potential, Millennials are high spending travellers. Between 2010 and 2014,
55% of all Chinese visitor expenditure in Australia was spent by 15-29 year olds, although they only made up 28% of arrivals.
Source: TRA IVS
Connected Popular social networks (wechat and sinaweibo) are extensively used to share travel pictures, stories &
recommendations. “More than 90% of Chinese internet users have a social media account. Microblogging platform Weibo has
50 million daily active users”.
Source: COTRI Market Report Spring 2016
18
Source: Asia Travel Leaders Summit (2013) Capturing the Asian Millennial Traveller.
23
Visitor lifetime value
Linked with identifying potential segments is leveraging their If Asian travellers visit and engage with Queensland at a
lifetime value. Chinese visitors to Australia, for example, contribute younger age, this will increase their likelihood of involvement
economically beyond their initial tourism visit. Respondents to in these activities. By attracting young Asian visitors to study in
a recent survey commissioned by the Australia-China Business Queensland, for example, there is potential to encourage repeat
Council said they have pursued, or are likely to pursue the visitation and create loyalty for Queensland, not only among the
following: students but friends and families. Being more socially and digitally
connected, these younger travellers can also have a greater word-
•• repeat visitation – 73%;
of-mouth and ‘word-of-mouse’ impact in promoting a destination.
•• tertiary education – 74%;
TripAdvisor surveyed female travellers from Asia and found that half of those surveyed made all of the decisions and bookings
for family trips. The survey also found that short-haul travel was preferred by women and that safety was a top priority in
decision-making.
According to qunar.com, the world’s largest Chinese-language online travel search engine, Chinese Millennial women now
have more time and money for travelling and have strong purchasing power. The amount spent on travel by ‘well educated
and well-paid’ single Chinese women has risen 20% year-on-year, eclipsing the 9% rise in the same figure for men. Women are
significantly more vocal regarding their holiday experiences; being responsible for 70% of comments on hotels left of the qunar.
com website.
The influence of Asian women on travel decisions highlights the importance of ensuring Queensland’s
experiences and marketing communications resonate with this audience.
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
25
Confidential
Strategy Country Geography Age Group Travel Group Travel Purpose Timeframe
Millennials*
35-49 years
50 years and over
Families
Honeymooners
Friends
FIT*
Couples
Group
Education
VFR
MICE
Leisure
Short Term (2016-2019)
Medium Term (2019-2022)
Long Term (2022 - 2025)
Key Notes
*Millennials and FIT are key focus segments and FIT groups identified by DAE in the 2016 Asia Strategy Research Segments,
Millennials People born between 1981 and 1995 i.e. in 2016: 21yrs - 35yrs
*Millennials and FIT Travel group, Travel Purpose and Timeframe overlayed into this target market table have been identified by TEQ head office
and in-market intel as of 2016
P1 Asia Market Priority 1
Women have also been identified by DAE as highly influencial, both with regard to decision making and in terms of traveller
Women numbers, especially in China. Women as a target audience is a gender, rather than a travel group and has therefore been omitted
P2 Asia Market Priority 2
from this table. It must be noted that Women are an important area of focus and has been reflected in the broader strategy
27
7.2 Target market strategies
Based on volume, maturity, air access, and scope to increase Queensland’s market share, the nine nations/regions are prioritised
according to three strategies as follows:
Grow
India & Indonesia
Investment will build Accelerate
Win share
foundations for the mid-
long term growth with
China, Japan &
Singapore, modest growth in the South Korea
With increased
Hong Kong SAR, short term
investment these
Taiwan & Malaysia markets have
Investment will the potential to grow
seek to win market at a much faster rate
share from these
mature markets where
Queensland has a stong
presence
TEQ’s current budget allocation largely aligns with these priorities, requiring only a slight shift of investment.
The mix of mature and emerging markets and targeted strategies will position Queensland
to grow Asian visitor arrivals to 1.62 million overall by 2025 and reach the target of
$6.867 billion OVE.
TEQ’s target markets in China comprise established (Tier 1) cities Figure 9: Global outbound international expenditure,
and developing (Tier 2) cities. 1995-201520
Established: The Tier 1 cities are Shanghai, Beijing, Guangzhou
and Shenzhen. They continue to be a key part of TEQ’s marketing
efforts in China as they have large populations, the highest GDP
in China and the most direct flights to Australia. Travellers from
Tier 1 cities are well-educated, open minded, sophisticated and
are generally repeat visitors to Australia. FIT will be the main
focus for these regions, with groups a secondary focus.
19
OVE specific figures were not available
20
Data for Japan was not available
29
Introducing the new growth opportunities – the early adopters
•• Tianjin – the capital city of Tianjin province has high regional wealth, a considerable population of 11 million people and
aviation connectivity. The largest coastal city in northern China, it has a similar climate to Queensland.
•• Hangzhou – the capital city of Zhejiang province has a population of 6.2 million people, considerable regional wealth, and
with an international airport, aviation connectivity. It is close to Shanghai and is a hub for development of green technology.
•• Chengdu – the capital city of Sichuan province has a population of 7.4 million people, considerable regional wealth and
is a key inland aviation hub and region of economic growth for China. The number of airline services with linkages into
Queensland is increasing. The Chengdu Tianfu International Airport, a USD $12 billion investment, is due to open in 2020. It
will be the second largest airport after the new Beijing airport. This development will be transformative for the international
connectivity of the region.
•• Nanjing – the capital city of Jiangsu province has a population base of 7.1 million people, is close to Shanghai and has
international airport and aviation connectivity (China Eastern has a direct service from Nanjing to Sydney) with great potential
for further development.
•• Xiamen – the gateway city of Fuzhou province has a population of 3.5 million people, aviation connectivity and China’s
headquarters for SilkAir. Xiamen Airline provides a direct service from Xiamen to both Sydney and Melbourne. Direct services
to Australia continue to grow, with most of the group tour itineraries including Queensland experiences. Xiamen also has
direct services to Europe.
•• Wuhan – the capital city Hubei province has a population of 9.8 million people and is centrally located in China with good
connectivity to surrounding provinces, including: Jiangxi, Anhui, Hunan, Henan, Guizhou. Currently Jetstar Gold Coast
operates from Wuhan. Based on Gross Domestic Product, the city is ranked as one of China’s top ten cities for the first
quarter of 2016.
Indonesia: Jakarta
Low High
CURRENT MAGNITUDE:
Figure 11: Japanese travel trends, 2005-2015, and Queensland market share
(LHS)
Source: UNWTO, TRA IVS and Deloitte Access Economics (2016) Note: the percentages represent Queensland’s market share of total trips beyond Asia in
2005 and 2014
Alongside Millennials, another important target segment is Japanese retirees. They are online, travelling, and growing in number. In
2012, the first baby boomer Japanese generation reached 65 years old. Since then the number of retirees has continued to grow. This
has led to an increase in overseas travel by seniors. Currently, 63% of Japanese aged 65 plus use the internet regularly, up from 37% in
2008. They still rely on word of mouth, printed media and travel agents for information and final guidance on booking decisions.
21
OVE specific figures were not available
31
visitor arrivals, as highlighted by Figure 12.
South Korea Market
As an ‘accelerate’ market the intention is
to leverage the South Korean market’s air Accelerate: Established (Tier 1) cities
– Seoul
access, spending capacity and propensity
to travel to increase Queensland’s market Age: 35-49 years and Millennials
share and in turn grow OVE. Travel Group: FIT, Group, Families,
Friends and Couples
Similar to Japan, South Korea is
a relatively high yielding market with Travel Purpose: Leisure, VFR,
Education and MICE
South Koreans averaging $6,000 per
South Korea trip.22 Currently, South Korea represents Grow: Developing (Tier 2) cities –
Together with Japan, these visitors account Busan and Daegu
5.7% of Queensland’s Asian visitor market.
for 44% of all outbound travel beyond Asia.
Age: 35-49 years and Millennials
The number of South Korean visitors to Target segments of South Korean
Queensland has plateaued over the past visitors include 35-49 year olds, Travel Group: FIT, Friends, Families
decade, while other destinations beyond Millennials, friends and FIT travelling for and Group
Asia have steadily grown South Korea leisure and education. Travel Purpose: VFR and Leisure
Figure 12: South Korean travel trends, 2005-2015, and Queensland market share
Source: UNWTO, TRA IVS and Deloitte Access Economics (2016) Note: the percentages represent Queensland’s market share of total trips beyond Asia in
2005 and 2014
22
OVE specific figures were not available
33
7.2.3 Win share
Singapore, Hong Kong SAR China, Taiwan and Malaysia are mature markets where Queensland has strong appeal and has the
potential to grow OVE by increasing market share from other Australian destinations.
Figure 13 below illustrates the indicative growth potential of key market segments for Queensland. Some are unpacked further to
understand the potential they present for Queensland. The established Group Tours and Visiting Friends and Relatives (VFR) segments
continue to remain important for Queensland.
VFR
Group
Tours
Millennials
Business
Events
Free
Independent High
Education Traveller (FIT) Net
Worth
Women
7.3.1 Millennials
The millennial visitor is a young, sophisticated, independent traveller seeking unique, exciting and original experiences and
destinations that have brag-ability. Their main reasons for travelling are leisure (91%), business (43%), with almost one in five visiting
friends or relatives. As noted in section 6.3, Asia is an important source of these visitors for Queensland. Millennials may have already
travelled to Australia as international students. Already comfortable with the country, these travellers have the potential to be drawn
back to explore and engage on a deeper level. The Millennial travellers with their desire to fully immerse themselves into new cultures
and feast on local cuisine are a significant opportunity for Queensland.
7.3.2 FIT
Asian FITs present significant opportunity for the state. These are high yielding visitors with a propensity to travel beyond the gateway
cities into the regions to discover quality, uniquely Queensland experiences in their own way and pace. Queensland’s natural icons,
outdoor lifestyle and the ability to explore them within a safe environment are key attractions.
As with all Asian travel markets, the FITs have diverse needs and travel preferences. Tailoring products and experiences will be
essential in Queensland’s regions growing this market. Millennials and women are significant subsets of the Asian FIT market.
35
7.3.3 Women
From a marketing perspective, Asian women are an important target group for Queensland as they have been identified by Deloitte
Access Economics as highly influential in travel decision making, particularly in China. Women are earning more, spending more and
exerting greater influence on all levels of the travel industry. They also are increasingly travelling solo. In targeting women, the industry
will need to ensure marketing messages and the experiences offered resonate with women and meet their needs and preferences
distinct from a male audience. Currently Australia is attracting a higher proportion of women than men for short term stays.
7.3.4 Education
Figure 14: Top 10 Queensland International Education and
The education visitor market presents strong Training Source Markets
growth prospects for Queensland. In 2015,
there were 103,251 international student TOP 10 QUEENSLAND SOURCE MARKETS 2015 Student Visa
Enrolments
enrolments in Queensland, representing
16% of the Australian total. The economic CHINA
growth of the Asian region is expected to 1 19,250
have a major influence on the international
student markets. The top 10 source markets INDIA
for Queensland are illustrated in Figure 14.
By 2026, six of the eight top source markets
2 12,711
for international education are expected BRAZIL
to be from Asia: China, India, South Korea,
Nepal, Vietnam and Japan. These markets
3 7,102
are forecast to make up 56% of the total SOUTH KOREA
enrolments in Queensland.23
4 6,607
International students are sourced from
Higher Education, Vocational Education TAIWAN
and Training (VET), the English Language
Intensive Course for Overseas Students
5 4,356
(ELICOS) sectors and in private and state JAPAN
primary and high schools. Queensland is also
popular with students not on student visas,
6 4,124
particularly those in ELICOS courses and COLOMBIA
study tours.
7 3,949
In attracting Asian students to Queensland
the historical connection to Australia’s early HK SAR
settlement can be drawn on, particularly
for Chinese students. Australia is not an
8 3,066
unknown destination for Chinese students USA
and their parents. Choosing to study and
travel in the state provides the opportunity
9 3,057
to follow in the footsteps of their ancestors MALAYSIA
and explore and learn about Chinese migrant
settlement in colonial Australia. 10 2,924
In reaching and engaging international The other 38% of the international student visa enrolments are from over
150 other countries around the world
students, online and social media are critical.
These digital natives are increasingly drawing Source: The
Source: Theopportunity and
opportunity imperative
and imperativefor for
Queensland’s international
Queensland’s education
international and training
education sector,
and training
on digital content in their travel planning. In Deloitte Access Economics, May 2016
sector, Deloitte Access Economics, May 2016
the destination they are taking advantage of
online services such as Uber. Currently 25%
of Chinese students in Australia use Uber.
23
Source: Queensland Government (2016) Draft International Education and Training Strategy to Advance Queensland 2016-2026.
India has another increasing pool of middle class consumers, although much smaller at around 50 million people, or 5% of the
population. India’s middle class is expected to grow steadily over the next decade, reaching 200 million by 2020.27
Queensland is well positioned to capitalise on the desire of affluent Asian citizens to travel. Outbound growth from Asia also includes
increasing numbers of low value, high volume groups. In targeting market segments, Queensland must strike the right balance
between low value high volume groups and higher yielding markets to ensure the sustainability of the tourism and events industry.
In the 2011 Census, there were 5.3 million migrants in Australia, which means one in every four (26%) Australian residents were born
overseas. After the United Kingdom and New Zealand, the largest migrant populations were China (319,000 people), India (295,000),
Italy (185,000) and Vietnam (185,000).28
Beyond Australia’s early settlement period, contemporary migrants born in China and India are relatively new arrivals to the country,
with migration only growing in significance in recent decades. Both migrant groups live predominantly in Sydney and Melbourne.
24
Source: Australian Bureau of Statistics (2014) Australian Social Trends.
25
Source: Tourism Australia (2013) Tourism 2020 Potential Business Events.
26
Source: Goldman Sachs (2013) Global Investment Research.
Source: Hurun Travel Research (2015) The Chinese Luxury Traveller.
27
28
Source: Ernst and Young, 2013, Hitting the sweet spot - The growth of the middle class in emerging markets
37
Confidential
Experienced travellers from Asia are choosing to explore more exotic destinations that are authentic and unique. The most important
factors for Asian consumers in selecting a holiday destination, ranked in order of importance are:
3. Attractions
The following is a summary of the priority factors for Asian source markets and the Australian features that have the greatest appeal
for these visitors (Figure 15).
29
Based on Deloitte Access Economics’s desktop research and consultation and Tourism Australia’s international consumer research study: The Consumer
Demand Project, 2016.
ACCELERATE
Beauty and Local cuisine Local cuisine Interesting Beauty and Interesting
natural environments and product and product attractions natural environments attractions
Safety and security Safety and security Safety and security Value for money
USA France Italy Germany Australia USA France Italy Germany Spain USA Spain Turkey Italy Croatia
17.6% 11.6% 10.2% 8.1% 6.7% 42% 9% 7.5% 5.8% 5.3% 26.7% 8% 6.6% 5.5% 4.8%
GROW
INDIA INDONESIA
Aspirations Aspirations
Travel essentials
Family friendly Beaches and
marine life
Safety and security Value for money
Travel essentials
What are their current top markets What are their current top markets
to travel to? to travel to?
30
Research did not extend to Hong Kong SAR China and Taiwan
39
THE EXPERIENCE ASPIRATIONS PER MARKET Source: Deloitte Access Economics, 2016
WIN SHARE
SINGAPORE MALAYSIA
Aspirations Aspirations
Travel essentials
Beauty and
natural environments
Safety and security Value for money
Travel essentials
What are their current top markets What are their current top markets
to travel to? to travel to?
Source: Based on Deloitte Access Economics’sdesktop research and consultation and Tourism Australia’s international consumer research study The
Consumer Demand Project, 2015
Warm, friendly, welcoming, outgoing, positive, carefree, outgoing, positive, carefree, cheeky,
Brand Personality
accepting, non-judgemental, unpretentious, down-to-earth
Feel connected with loved ones, friends, locals, the place, even with a deeper part of
Customer Benefits themselves. Relaxed. Happy. Energised. Rejuvenated. A Queensland holiday lets you be
“the person I want to be” even if it’s only for the duration of the holiday.
There is a huge variety and different attributes will feature depending on the communication,
Attributes but some of the key ones are – beach, natural attractions, tropical islands, Great Barrier
Reef, rainforest, theme parks, wildlife, events, dining and shopping.
Beauty is a great place to start, of course. But looks will only get you so far. Modern travellers
want something more – they don’t just want to see, they want to feel. They don’t
just want to tick things off a list, they want life-affirming experiences they’ll never forget.
We’re here to show the world that Queensland isn’t just a collection of stunning locations,
natural wonders and picture opportunities (although we’ve got more than our fair
share of those too). You can’t get a read on us by simply flicking through a travel brochure
or your friend’s holiday snaps. You have to live it. And do we know how to live.
Imagine a place humming with energy and vitality. A place that gets under your skin,
that makes you feel something. A land with soul. It’s everywhere: from our sunburnt
outback plains to our thriving urban laneways, our ancient rainforests to our pristine
beaches and awe-inspiring Great Barrier Reef. It’s present in moments of solitude and in
moments shared, an empty stretch of beach or a cheering, crowd-filled stadium.
Ours is a land with heart: where the locals are as warm as the year-round weather. Where
there’s always something happening somewhere (and someone who’s happy to give you the
guided tour.) Where the characters and wildlife you encounter are as much a part of the story
as the land they live on.
Queensland’s not just a place to visit. It’s a place to discover. It’s not a place to sight-see.
It’s a place to feel and reconnect – with yourself, with nature, with everyone around you.
We’re not the place you used to know or think we might be.
We’re alive with possibility and promise. We’re not afraid to make bold statements
because we know we’ve got the goods to back them up.
Five experience pillars capture Queensland’s competitive advantages and unique style as the best address on earth. The pillars
group experiences into consumer orientated categories identified in consumer research to leverage relevant destinations to the
target markets. Within each pillar unique ‘hero’ experiences have been identified that deliver Queensland’s brand promise. These
hero experiences offer ‘wow’, stand out moments such as sitting on the beach and looking west towards the mainland watching a
breathtaking sunset over the water.
•• Reef, Islands and Beaches: Great Barrier Reef, Islands, Beaches, Diving and snorkelling and Sailing
•• Natural Encounters: Wildlife Experiences, Marine life experiences and Natural landscapes
•• Adventure and Discovery: Theme parks, Adventure experiences, Dinosaurs and fossicking, Journey’s, Indigenous culture
•• Events: State of endurance, Culinary, Home of country music, Music city, Cultural precinct, Blockbuster sporting events
•• Queensland Lifestyle: Food and drink, City experiences, Local characters, Outback and country life
41
8.3 Aligning the offering
Queensland destinations, in particular Gold Coast and TNQ are well positioned in satisfying the key factors Asian visitors are seeking
in a holiday destination. Across all of the key Asian source markets, Queensland’s hero experiences, particularly with respect to Reef,
Islands and Beaches and Natural Encounters, strongly align and have great appeal. Figure 16 summarises the key experiences that
have greatest association to Australia and appeal to Chinese visitors by way of example.
Queensland’s renowned warm, sunny climate, conservation Friendly and open citizens, local hospitality: Australia (and
areas and nature competitively positions the state against Queensland by default) has a reputation for its friendliness and
Australia’s eastern states on several counts. Queensland has laid-back approach.
the greatest area of rainforest and protected natural areas and
Good food, wine, local cuisine and produce: Globally, culinary
the most ecotourism businesses. Wildlife encounters also are an
tourism is an integral part of the travel experience. It is a factor
important advantage as Queensland hosts the highest levels of
in holiday decision making and, can help to tell the story of a
biodiversity in Australia, with 85% of the nation’s native mammals
destination’s heritage, its people and landscape. It is also an
and 72% of its native birds.31
important way that visitors create memories and a connection
The state is well regarded for its beaches and coastline, boasting with their experience, and with their travel party, the locals and
the most beaches and longest coastline of the eastern states. the place.
Queensland’s beaches – such as Whitehaven and Surfer’s
Queensland’s strength is in its fresh seasonal produce, seafood
Paradise – are internationally recognised.
and tropical fruits which are renowned throughout Australia and
Score card on other travel aspirations/factors showcased on the menus of many of Australia’s top restaurants.
While Queensland destinations’ hero experiences are major As a state of food contrasts, Queensland provides a diverse offer
draws for Asian travellers, delivering on other travel factors and one that changes with the landscapes that visitors travel to
important to these consumers is also vital. Building on the state’s – from 5-star dining experiences, to farmers markets, food trails,
capabilities across the following factors will ensure Queensland’s indigenous experiences and local food events.
products and experiences continue to resonate strongly with the
What is common to all Queenslanders is a commitment to fresh
modern Asian traveller.
produce, a love of the outdoors and the breathtaking natural
Safety and security: Coupled with well-developed infrastructure, backdrops against which food experiences are shared. Combined
Australia on the whole is generally considered a safe destination, these elements provide the “Queensland lifestyle” a lifestyle that
with little distinction made between particular states or enriches the Queensland holiday experience.
destinations, unless a particular event has occurred.
For Asian travellers, Queensland’s significant restaurant, cafe
Family friendly destination: Queensland’s large concentration of culture and Asian food options underpinned by fresh seasonal
theme parks is a drawcard for visitors. Ease of access and safety produce and seafood, cater for those Asian visitors seeking to
contributes to the perception of Queensland and Australia as a enjoy a blend of their home cuisine and local food on holiday.
family friendly destination. Food events, such as the Royal Queensland Food and Wine
31
Source: Queensland Department of Environment and Heritage Protection (2012)
32
Source: CNN (2015) Meet China’s Dinosaur King.
43
8.4.1 Gold Coast
Gold Coast is Queensland’s most popular region for Asian visitors, •• Cuddling a koala, feeding Rainbow Lorikeets or patting a
attracting 514,000 visitors, 49.1% of Asian visitors to the state.. The kangaroo at a nature park
majority of these visitors are from China, Japan, Singapore and •• Enjoying 360 degree views from the top of one of the world’s
Taiwan. The Gold Coast currently captures 19% of visitor nights. tallest residential buildings
Gold Coast is Australia’s playground, with its 57 kilometres of •• Discovering the hinterland’s World Heritage listed rainforests,
golden sandy beaches, World Heritage-listed rainforest, award- home to 2000 year old Antarctic Beech trees, spectacular
winning restaurants, an immense variety of things to do and a waterfalls and is one of Australia’s premier birding areas
spectacular line-up of iconic events. Gold Coast experiences that •• Savouring fresh seafood, local produce and Australian wines
have strong appeal to the priority Asian markets include: and home-grown brews at stylish restaurants and cafés and
surf lifesaving clubs or having fun catching or foraging
•• Learning to surf on one of the many pristine beaches or world
famous point breaks •• Teeing off on one of the many championship golf courses
•• Living like a local and taking an energising morning stroll along •• Participating in the annual Gold Coast Airport Marathon or
the beautiful beach joining the spectators to cheer the runners home
•• Breathing the pure Gold Coast air and experiencing the active •• Experiencing the whales in Australia’s longest whale watching
and healthy lifestyle enjoyed by locals season late May to early November.
•• Shopping for local treasures or world famous brands in this The Gold Coast is working steadily with key partners to increase
cosmopolitan city by the sea aviation capacity into Queensland. Currently Gold Coast receives
964 flights per annum serviced by five airlines from five Asian
•• Enjoying the thrills at one of the Gold Coast’s world-famous
cities. The Gold Coast is also serviced by Brisbane international
theme parks
Airport (see below in 8.4.2).
8.4.2 Brisbane
Brisbane attracts 469,000 Asian visitors, representing 44.8% of Park – sanctuary for large population of dugong (Manatee),
all Asian visitors to Queensland. The majority of Brisbane’s Asian six different species of sea turtle, dolphin and thousands of
visitors are from China, Taiwan, Japan and Hong Kong SAR China. migratory sea birds
Brisbane captures the greatest share, 57%, of Asian visitor nights in •• Interact with wild dolphin at Tangalooma Island Resort on
Queensland. This is due to the large number of Asian students in the Moreton Island
city. Brisbane receives 74% of visitor nights spent by Asian students in
•• Cuddling a koala and hand feeding a kangaroo or wild dolphin
Queensland compared with 40% of holiday visitor nights from Asia.
at a nature park
Brisbane is a fun, youthful and savvy new world city with a myriad •• Experiencing the excitement of a live show at the Queensland
of cosmopolitan dining, shopping, nightlife, recreation and cultural Performing Arts Centre or sporting events at Suncorp Stadium
attractions within easy reach. Brisbane experiences that have •• Shopping for international and boutique designer brands
strong appeal to the priority Asian markets include: in the Queen Street Mall, Queensland’s premier shopping
•• Exploring one of Brisbane’s urban villages, areas rich with destination.
food and wine and hinterland retreats •• Explore Queensland’s largest collection of indigenous art
•• Climbing the city’s iconic Story Bridge, one of the only three within the impressive Gallery of Modern Art
bridge climbs in the world •• Discover street art, hidden treasures and mix with the locals
•• Enjoying a swim at South Bank, Australia’s only inner-city beach on a Brisbane Greeters tour
•• Discovering two of the world’s largest sand islands – Moreton Brisbane is working steadily with key partners to increase aviation
and North Stradbroke capacity into Queensland. Brisbane currently receives 4911 flights
•• Diving, kayaking or sailing Brisbane’s Moreton Bay Marine per annum, serviced by 13 airlines, from 10 Asian airports.
In TNQ, the colourful and vibrant city of Cairns is where the two World Heritage icons of the Great Barrier Reef and the ancient Wet Tropics
rainforest meet. The destination boasts a year-round outdoor lifestyle, world-class sporting events and festivals and opportunities to
explore the outback, experience Indigenous culture and see native wildlife. TNQ experiences that appeal to priority Asian target markets
include:
•• Visiting the Great Barrier Reef with day trips and extended journeys from Cairns and Port Douglas or staying in one of the region’s
spectacular tropical island resorts
•• Hiking through the world’s oldest surviving tropical rainforest in the Daintree
•• Journeying by historic scenic railway to the rainforest village of Kuranda and returning through the tree tops on the award-winning
Skyrail Rainforest Cableway Experience
•• Have a unique experience quintessentially Australian experience feeding a Kangaroo or cuddling a Koala
•• Experiencing Australian Aboriginal and Torres Strait Islander culture by tours or a cultural festival
•• Exploring the destination on self-drive touring routes featuring a range of unique coastal and outback trails, farmgate markets and
tea and coffee plantations.
Similarly to Gold Coast and Brisbane, a partnership approach in increasing aviation capacity into the state through AAIF is a major focus.
Currently Cairns receives 1225 flights per annum serviced by five airlines from seven Asian airports. Additionally 129 Jetstar Airways/Alba
Star.es flights arrive into Townsville from Denpasar-Bali, Indonesia.
45
Case Study – Tangalooma Island Resort
Background
Tangalooma Island Resort is a popular family holiday destination on Moreton
Island, just 75-minutes off the coast of Brisbane. The resort offers a myriad of
unique adventure, educational and nature based experiences. A highlight for
guests is the opportunity to hand feed wild bottlenose dolphins.
Tangalooma’s product offering is vast and varied, with particular experiences resonating more with certain markets. The most
popular products in each market are as follows:
South East Asia Quad bikes, Desert Safari tour and sand tobogganing
Taiwan Desert Safari tour and Sand Tobogganing, parasailing tour, snorkelling tour
China Whale Watching, parasailing, helicopter tour, sightseeing tours to the shipwrecks
Japan Desert Safari tour and sand tobogganing, quad bike tour
South Korea Desert Safari tour and sand tobogganing, quad bike tour
India Quad bikes, Helicopter flights
Indonesia Quad Bikes, Helicopter flights
Thailand Quad Bikes, Desert Safari tour and sand tobogganing
To ensure Queensland capitalises on the growth in Asia’s outbound 4. Prioritise infrastructure and investment to meet demand
travel over the next decade, TEQ in partnership with DTESB has 5. Foster the development of high quality Queensland
identified seven strategic directions fundamental to success: experiences
1. Deliver targeted consumer marketing into key Asian markets 6. Attract Asian visitors to experience the best events in
2. Enrich trade engagement to increase consumer awareness Australia
and encourage conversion 7. Leverage the tourism potential of the international education
3. Strengthen aviation access and strategic partnerships network
9.1 Strategic Direction 1: Deliver targeted consumer marketing into key Asian markets
Global competition for tourism expenditure is strengthening as Queensland through experiences is vital.
destinations vie for their share of the growing Asian outbound travel
Content must focus on the quality, uniqueness and emotional
market. Leveraging the Australia brand and marketing campaigns
uplift of Queensland’s experiences, not just the static beauty of
through TEQ’s partnerships with Tourism Australia, airlines,
the physical setting, such as iconic world heritage rainforests, the
wholesalers and trade will be increasingly important in promoting
Great Barrier Reef and the plethora of stunning beaches. There is an
Queensland.
opportunity to leverage the strong association of brands such as the
This strategic direction will ensure Queensland resonates with the Gold Coast and Great Barrier Reef to attract Asian travellers. These
modern Asian traveller by building our understanding of key target brands resonate with many Asian markets and create immediate
markets, increasing consumer understanding of the Queensland association with the Australian experience.
product offering and engaging with consumers at every stage of the
Asian consumers are digitally savvy and rely heavily on online
‘customer purchase cycle’ (see also the role of trade engagement in
sources and personal recommendations when planning holidays.
Strategic Direction 2).
Asia’s rapidly changing digital landscape is complex and
Queensland boasts a range of natural assets that favourably position challenging, however digital channels offer tremendous potential for
the state as a destination of choice for Asian travellers. Agility is Queensland to increase share from important Asian markets. There
essential though to evolve with consumer expectations. The brand and are opportunities through partnerships with relevant digital platforms
product offering must strongly appeal to target audiences and hold and working with trusted celebrities and digital influencers to build
true to the Queensland identity by reflecting its unique characteristics. awareness and deliver hyper targeted marketing that engages
Given the importance to Asian travellers of authentic, local cultural this massive consumer market and ultimately inspires Asia to
experiences, the ability to discover and connect with the essence of experience the best address on earth.
2 Increase brand awareness of Queensland and its experiences across target markets in Asia.
3 Develop a range of marketing initiatives within the creative platform that bring the experiences to life and drive conversion.
4 Harness word of mouth marketing by using relevant social media channels, celebrity endorsements and digital influencers.
47
9.2 Strategic Direction 2: Enrich trade engagement to increase awareness and encourage conversion
In an increasingly cluttered tourism market, Queensland’s currently still quite structured, the Asian distribution system is seeing
ability to grow market share and OVE is dependent upon quality a growing trend of consumers engaging with travel distributors via
engagement with consumers during the travel planning process. online platforms. While group bookings and package tours are still
An efficient and accessible distribution system that inspires, prevelant, FIT is growing and is only expected to accelerate. With a
informs and empowers the consumer is critical. A new level of greater depth and reliability of information available to consumers
trade engagement will be required that focuses on understanding
online, the desire and confidence to customise and control more
and respecting the different market nuances. It will demand
aspects of travel planning has increased.
innovation, building solid trade partnerships, ensuring there is
compelling Queensland content and delivering trade marketing To reach the modern Asian traveller, the five stages of the
programs that speak to the target audience. customer purchase cycle are key touch points. Queensland’s
The traditional tourism distribution model of the Asian consumer trade partners have a significant role influencing the dream, plan
purchasing tourism product through travel agents, other travel and booking phases; providing quality content that inspires and
intermediaries or third party channels is changing. Although converts consideration into conviction and travel bookings.
Grow the awareness of Queensland in Asian markets during the consumers’ dreaming and planning phases, and grow the expertise within the
2
tourism industry to ensure the booking phase is seamless and results in a strong return on their investment.
Identify Online Travel Agents (OTAs) and Travel Aggregators who are trusted leaders in Asian source markets and enable Queensland to have a
3
strong presence within these powerful booking sites.
Centre effort on Inbound Tour Operators (ITOs) and Domestic Travel Agents based in Australia that have an Asian focus to ensure the distribution
4
system has access to Queensland’s best experiences and products for FIT, groups tours and VFR segments.
1 Continue to secure international routes through the Attracting Aviation Investment Fund with a particular focus on long-term volume and yield.
Through the Advance Queensland: Connecting with Asia Strategy 2016-20, build capacity and support industry partnerships and collaborations
2
for new tourism opportunities in key Asian markets.
Support the federal government’s efforts to facilitate bi-lateral agreements and improve access to visas from Asian source markets particularly
3
those with a strong outlook for growth in visitation.
4 Enhance existing strategic partnerships, relationships and alliances and build on existing activity.
Develop new strategic partnerships including but not limited to airlines, trade, travel and events industry, non-travel industry and leading
5
organisations in the digital and social arena.
49
9.4 Strategic Direction 4: Prioritise infrastructure and investment to meet demand
To increase Queensland’s share of the Asian market’s visitor new tourism infrastructure across the state. The development
nights, the experiences offered must align with the preferences of long-term sustainable relationships will also be vital with
of the target markets. This strategic direction is focused on leading investors from Asia who will support investment in
fostering investment in tourism infrastructure throughout Queensland tourism by bolstering demand through their
Queensland and ensuring that a strong and active pipeline of extensive in-market networks.
new infrastructure is realised.
As part of the investment attraction framework, the Queensland
As demand from Asia grows, Queensland must also anticipate Government recognises the importance of maintaining a strong
supply side implications and accommodate accordingly. With tourism infrastructure development pipeline to ensure the
the predicted future growth from Asia, the tourism industry will state fully realises its growth potential. Priority areas include
require the expansion of basic infrastructure, such as airports, ecotourism and Great Barrier Reef islands, accommodation,
transport routes and hotels, as well as a larger industry labour attractions and access infrastructure. Queensland’s clean and
force. It is also vital for Queensland to offer innovative tourism safe environment and world-renowned natural attractions
products and attractions with distinct appeal to the priority Asian position the destination well.
markets. This is a fundamental strategy to support sustainable In Queensland there is a strong pipeline of projects either under
growth in the sector and generate jobs. construction or with investment commitment to progress.
Queensland’s tourism and events industry is a major player This includes integrated resorts, access infrastructure and
in the development and delivery of tourism infrastructure and attractions, with many of the new investments from Asia and
attractions. The industry’s continued investment in infrastructure being developed to meet the demand and preferences of the
and product development will be critical to achieve the strategy’s Asian market. Ensuring that projects mooted for development
vision and targets to 2025. The industry’s role in building a are realised as new tourism assets for Queensland, requires
premier tourism destination with high quality products and commitment to both build demand from Asia and prioritise
experiences is also important in positioning Queensland as an support for investors and developers. TEQ through the Australian
Standing Committee on Tourism (ASCOT) partners with Tourism
attractive tourism proposition to new investors.
Australia and Austrade in removing any barriers to investors
A key priority is strengthening relationships with industry and and providing information and insight on Australian tourism
government in revitalising existing tourism assets and creating opportunities.
1 Build relationships with leading Asian tourism industry investors to attract investment into tourism infrastructure.
Foster catalyst tourism infrastructure projects, facilitating an investment pipeline of new hotels, attractions and access infrastructure to meet and
2
grow demand from Asia.
Stimulate investment in new and refurbished ecotourism opportunities that support the creation of uniquely Queensland visitor experiences that
3
will be treasured, and inspire learning and conservation of our natural environment amongst Queensland’s visitors.
Foster a holistic approach to the transport opportunities in Queensland and highlight the overarching vision of providing an exceptional journey
4
for every visitor from start to finish.
Through the Advance Queensland: Connecting with Asia Strategy 2016-20 invest in and partner with consortia to drive growth from Asia and
5
grow jobs for Queensland.
Provide the Queensland tourism and events industry with guidance on what Asian consumers want through provision of refreshed market-by-
2
market research on consumer behaviour and travel preferences.
Encourage Queensland’s tourism and events industry to adopt ‘Asia Ready’ practices throughout their business and ensure a market-by-market
3
focus is applied to Experience Development activity.
Support the digital capability of Queensland tourism businesses to deliver high quality digital experiences in a way that resonates with Asian
4
consumers.
33
Source: COTRI (2015) China Outbound Market Report
51
9.6 Attract Asian visitors to experience the best events in Australia
Events play a vital role in motivating visitors to travel to In order to leverage these opportunities, TEQ will curate an
Queensland or extend their stay in the state, to attend or events calendar with distinct appeal to the target Asian markets.
participate. These events grow the visitor economy by generating The calendar curation will involve the acquisition, development
expenditure directly attributable to the Asian visitor’s stay in the and promotion of events that has the ability to motivate travel
destination. For example, the Gold Coast Airport Marathon is specifically to Queensland to experience the event. Existing
attracting a growing number of runners from Asia each year. In events will be leveraged to encourage Asian visitors to include
2016 over 2,500 runners travelled from Asia to participate, which these experiences as part of their travel in Queensland.
was a 20% increase from 2015.
TEQ will support a concerted and coordinated effort by the
Leisure events also play an important role in enhancing the industry to target business events from Asia to Queensland’s
experience of visitors who were either already in Queensland, or key business events destinations. Business events, or MICE
had decided to come to Australia and were planning their (Meetings, Incentives, Conferences and Exhibitions) events as
When included in a visitor’s travel itinerary, events can add more depth
to the destination experience and increase connections with friends, family and locals.
itinerary. Over 6,200 visitors from Asia attended the 8th Asia they are known in Asia, present the greatest opportunity to grow
Pacific Triennial of Contemporary Art in Brisbane as part of their event travel for the Asian market to Queensland. Meetings and
stay in Brisbane. conferences attract delegates that are typically bigger spenders
than the visitor average, and often on corporate or professional
TEQ produces and manages a year-round events calendar that
expense allowances. This means they stay, on average, in more
is a sustainable, high-value asset for Queensland. It is estimated
expensive accommodation and are able to indulge in more costly
that Queensland’s 2016 events calendar will generate over $360
restaurants and transportation options.
million in spend in Queensland directly attributable to event
visitors. The calendar showcases a diversity of events across the Incentive travel events can bring large groups of visitors from
various genres and destinations. Marketed using the It’s Live! in Asia and generate significant tourism benefits to the state.
Queensland platform, Queensland’s events calendar embraces art, Additionally, these events are primarily built around showcasing
culture and music; food and wine; festivals; and sport and lifestyle. Queensland’s leisure experiences. The POLA Incentive Group,
The diversity of these events and the unique destinations in which for example, brought 1,800 qualifiers to the Gold Coast, which
they are held provides a competitive advantage in attracting visitors generated an estimated economic impact in visitor and corporate
to Queensland to experience the best events in Australia. spend of over $3.3 million.
2 Support the industry in bidding for incentive travel out of Asia to Queensland’s destinations.
3 Develop event calendars for target markets that can be used to build visitor demand.
4 Work with events in Queensland to enhance the experience for Asian vistors.
Uniquely Queensland Edu-tourism experiences that encourage international students to discover Queensland’s world-class
experiences will be an essential focus. Currently, international students spend on average, $1,000 per trip when they take time out
from studying for sightseeing, shopping and experiencing Queensland’s natural attractions. International students also generate a
large visiting friends and relatives market, which in turn creates opportunities for the industry. Deloitte Access Economics estimate
that the value added to the 2015 Queensland economy from Queensland international student friends and relative visits alone was
$11million, supporting 120 jobs.
There is potential to further extend the distribution of benefits from both students themselves and their visiting friends and family well
beyond Brisbane. In 2015, the regional economic contribution of student related export revenue (outside Brisbane) was $937 million.35
Queensland already performs relatively well in dispersing international visitors around the regions. Around 34% of all international
students in Queensland were living outside Brisbane, compared to 12% of similar students in New South Wales studying outside
Sydney, and 4% in Victoria studying outside Melbourne.
The international alumni from Queensland’s education and training providers are a valuable resource of potential ambassadors for the
state’s high quality education and training and tourism experiences. Research shows that 64% of Chinese alumni made a return visit to
Australia and a further 93% intended to visit Australia in the next five years.36
This strategic vision aligns with the Queensland Government’s vision for the growth of international education and training, articulated
in the Draft International Education and Training Strategy to Advance Queensland 2016-2026.
1 Engage the expansive student network to create lifelong advocates for travel in Queensland.
2 Elevate the awareness of Queensland’s destinations through increased engagement with Asia specific domestic trade and media partners.
3 Leverage ‘graduation tourism’ to it’s full potential by engaging with students and their visiting friends and relatives.
Elevate Queensland’s presence as a world class ‘study tour’ destination through identification and promotion of uniquely Queensland
4
Edu-tourism experiences.
5 Establish strong partnerships with the education and training sectors such as university, ELICOS, VET, and school networks in Australia.
6 Encourage repeat visitation to Queensland by promoting the destination experiences to the Queensland alumni network across Asia.
34
Source: Queensland Government (2016) Draft International Education and Training Strategy to Advance Queensland 2016-2026
35
Source: Queensland Government (2016) Draft International Education and Training Strategy to Advance Queensland 2016-2026
36
Source: Pyke et al, 2013
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10.0 DELIVERING THE VISION
The Queensland Government has committed to a four year forward funding schedule to support TEQ in delivering on the Queensland
Asia Tourism Strategy 2016-2025. In addition, $33.5 million has been committed to the Connecting with Asia Strategy 2016-20 to grow
tourism and unlock Queensland‘s potential as the holiday state in Australia for Asian visitors.
TEQ is a statutory body of the Queensland Government and its lead marketing, destination and experience development and major
events agency. In partnership with government, regional tourism organisations, industry and commercial stakeholders, TEQ’s aim is to
grow Queensland’s tourism and events industry to foster innovation, drive industry growth and boost OVE.
The strategy’s seven strategic directions and their suite of actions will be delivered and monitored through annual action plans with
associated KPIs. These plans will be developed and implemented in consultation with partner agencies. The target markets will be
reviewed annually.
With the path clearly outlined and resources committed, TEQ and the Queensland Government are well placed to achieve the goal of
increasing OVE in Queensland from key Asian target markets to $6.867 billion and delivering jobs to regional Queensland by 2025.
r 16. Have you sought advice from your local and regional tourism
offices, TEQ, Tourism Australia and ATEC?
TOTAL __/17
How did you score? The following resources will help equip you with
the knowledge to make your business ‘Asia Ready’:
Useful Links
Tourism Export and Market Profiles:
tourism.australia.com
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“The Asia market provides wonderful opportunities for tourism “The growing FIT market out of Asia is diverse and rapidly
operators. Building trusted relationships across all markets must changing. We need to understand their preferences and develop
be viewed as a long term strategy – consistency is key. A balanced differentiated offerings that resonate. Done well, we will inspire
portfolio of markets is critical to a successful Asia strategy.” these travellers to visit the best address on earth.”
– David James, Director, Tangalooma Resort – Michael Healy, Group Director, Sales and Marketing, Quicksilver
“The rise in use of mobile phones and the internet is changing the “Increasing direct air access from Asia will be vital
way Asian consumers plan their travel. User generated content on over the next decade. The Attracting Aviation
social travel platforms such as China’s Mafengwo is playing a critical Investment Fund is a welcome initiative to support
role, inspiring and influencing travellers.” route development and heralds an extraordinary time
– Gang Lv, Chief Operating Officer, Mafengwo of growth in aviation services to Queensland.”
吕刚,首席运行官, 蚂蜂窝 – Michael Burke, Vice President, Hong Kong Airlines
“Coming of age during a time “The international education sector brings enormous value
of technological and economic change, Millennials have to the state economically, socially and culturally. International
a different set of expectations and behaviours students’ footprint can extend well beyond tuition fees and
from their parents. Reaching this ‘we, now and more’ accommodation as lifelong advocates for Queensland, sharing
generation and earning their loyalty is critical their experiences and encouraging others to follow.”
to Queensland’s tourism growth.”
– Alex Blauensteiner, General Manager for Business
– Eva Ng, Vice President, Nielsen Innovation, Skills and Trade, Brisbane Marketing
teq.queensland.com/asiastrategy
Published by Tourism and Events Queensland August 2016