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Queensland Asia Tourism Strategy

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 Queensland Asia Tourism Strategy 2016-2025


Contents
EXECUTIVE SUMMARY.............................................................................. 4 7.1 Defining our targets.........................................................................26

1.0 OUR CURRENT POSITION............................................................6 7.2 Target market strategies...............................................................28

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

4.0 THE RISE OF ASIAN TRAVEL.....................................................12 8.3 Aligning the offering....................................................................... 42

4.1 Drivers of outbound travel.............................................................12 8.4 Destination experience delivery............................................... 43

4.2 The new Asian traveller...................................................................14 9.0 STRATEGIC DIRECTIONS TO MAXIMISE


THE POTENTIAL.................................................................................47
4.3 The sharing economy.......................................................................14
9.1 Strategic Direction 1: Deliver targeted consumer
5.0 QUEENSLAND’S OPPORTUNITY FOR marketing into key Asian markets..........................................47
SUCCESS IN ASIA..............................................................................15
9.2 Strategic Direction 2: Enrich trade engagement
5.1 Objective 1: Increasing OVE from target to increase awareness and encourage conversion...... 48
Asian markets...................................................................................... 16
9.3 Strategic Direction 3: Strengthen aviation
5.2 Supporting objectives......................................................................17 access and partnerships............................................................... 49

5.3 Dispersing the benefits...................................................................17 9.4 Strategic Direction 4: Prioritise infrastructure


and investment to meet demand............................................50
6.0 ASIAN MARKETS AND THEIR POTENTIAL..................... 18
9.5 Strategic Direction 5: Foster the development
6.1 The countries........................................................................................ 18 of high quality Queensland experiences..............................51

6.2 The cities...................................................................................................21 9.6 Strategic Direction 6: Attract Asian visitors


to experience the best events in Australia........................ 52
6.3 The age groups.....................................................................................21
9.7 Strategic Direction 7: Leverage the tourism
6.4 The competition................................................................................. 25 potential of the international education network.......... 53

7.0 QUEENSLAND’S TARGET MARKETS.................................26 10.0 DELIVERING THE VISION........................................................... 54

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. Increase overnight 2. Win market 3. Attract and 4. Increase 5. Increase the


visitor expenditure share by support average proportion of Asian
(OVE) and visitation accelerating increased spend visitors travelling
Objectives from Asian target efforts to target aviation per Asian beyond QLD’s
markets, supporting priority Asian access from visitor to three international
QLD jobs markets Asia QLD gateways

1
Source: MasterCard Intelligence Report (2015)
2
Source: Tourism Research Australia (TRA) International Visitor Survey (IVS) YE December 2015

4 Queensland Asia Tourism Strategy 2016-2025


Image courtesy of Melbourne Chinese Post

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

5. Foster the development of high quality Queensland


experiences

6. Attract Asian visitors to experience the best events in


Australia

7. Leverage the tourism potential of the international education


network

Queensland Asia Tourism Strategy 2016-2025 5


1.0 OUR CURRENT POSITION

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).

Figure 1: Total Asian Visitors to Queensland 2007-2016 and Expenditure 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

6 Queensland Asia Tourism Strategy 2016-2025


Confidential

2.0 THE NEED FOR ACTION

Globally, the tourism sector has witnessed phenomenal growth


in Asian travel. According to a MasterCard Intelligence Report,
outbound Asian travel will increase from 181 million trips in 2014 to
286 million trips in 2020—an annual rate of growth of 7.9%. Key Facts
Although Queensland has begun to reap the benefits of increased •• In less than two decades, two-thirds of the world’s
visitor arrivals from Asia, innovative, highly valued and high middle class will reside in Asia.6
quality experiences will be necessary to increase the value for •• 66% of Chinese outbound travellers are Millennials.7
the state’s tourism and events industry from the Asian outbound
travel anticipated in coming years. Competition from domestic •• By 2034, Asia will have 23 of the world’s mega hub
and international destinations for Asian travellers will intensify. airports; up from 13 in 2014.8
Currently, 24% of Australia’s visitor nights from Western markets
•• Over the four years to 2014, Asia was responsible for
are spent in Queensland, compared to only 18% of Australia’s
two-thirds of the global growth in aviation volumes.9
Asian visitor nights. While 39% of all Asian visitors include Victoria
in their itinerary and 50% New South Wales, only 32% include
Queensland.

Tourism and Events Queensland (TEQ) together with the


Queensland Government has prepared the Queensland
The strategy presents seven strategic directions and priority
Asia Tourism Strategy 2016-2025 (this strategy) to maximise
actions for industry and government to secure strong and
Queensland’s competitive position with Asian travellers.
sustained growth from key Asian source markets. These
markets include a diverse portfolio of both mature and
Queensland seeks to increase overnight visitor emerging markets across Asia. At the same time, TEQ will

expenditure from Asian markets


continue to focus effort on increasing the contribution of the
Western markets to Queensland’s economy. A balance of
to $6.8674 billion by 2025, contributing to the Asian and Western markets presents the greatest potential

state’s visitor economy and supporting


to drive growth in Queensland’s tourism and events industry,
build resilience to market fluctuations and generate jobs
up to 30,000 additional jobs.5 in regional Queensland. Success will depend upon the
coordinated efforts of industry and government.
4
This target was developed based on Tourism Forecasts 2016 published by 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.
5
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 Tourism Satellite Account 2014-15 base year) Note: jobs attributable to Asian OVE cannot be measured independently.
6
Source: Deloitte Access Economics (2014) Building the Lucky Country #3, positioning for prosperity.
7
Source: Goldman Sachs (2015) Chinese Tourist Boom Report.
8
Source: Airbus (2014) Global Market Forecast.
9
Source: Airbus (2014) Global Market Forecast.

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:

•• Governing for Growth: Economic Strategy and Action Plan

•• Destination Success: 20 Year Plan for Queensland Tourism

•• Queensland Ecotourism Plan 2015-2020

•• 2020 Strategic Marketing Plan – Tourism and Events in Queensland

•• Tourism and Events Queensland Strategic Plan 2016-2020

•• Tourism and Events Queensland Events Strategy 2016-2020

•• Queensland Tourism Aviation Blueprint to 2016

8 Queensland Asia Tourism Strategy 2016-2025


2.2 Consultation and partnerships
The strategy is based on a body of work by Deloitte Access Economics that involved extensive desktop research and consultations with
over 50 industry stakeholders in Australia and overseas in the following sectors:

•• Government •• Convention Bureau •• Events

•• Regional Tourism Organisations •• Attractions •• Cruise shipping

•• Airlines •• Investors •• Trade partners

•• Airports •• Education providers

•• Accommodation •• Innovation/Technology companies

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

3.0 OUR VISION

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

accelerating11 : China, Japan and South Korea;


in priority Eastern international
10
growing: India and Indonesia; and
Asia
source markets winning share: in Singapore, Hong Kong SAR China, Taiwan and
Malaysia

through cultural immersion in the Queensland lifestyle;


Queensland’s signature
to experience authentic and friendly Queensland experiences; and
experiences and events
world-class nature including Great Barrier Reef.

by championing ‘best of’ tourism products;


building the digital capability of tourism businesses;
through quality and innovation,
the best encouraging the tourism industry to adopt ‘Asia Ready’ practices;
enhance destination offerings
and providing innovative, quality products, experiences and
infrastructure.

across our five experience pillars:


•• Reef, Islands and Beaches
showcasing the best of •• Natural Encounters
address on earth
Queensland •• Discovery and Adventure
•• Events
•• Queensland Lifestyle

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.

10 Queensland Asia Tourism Strategy 2016-2025


3.1 Goal, objectives, measures and 2025 targets
In pursuit of the vision, TEQ’s goal is that by 2025 Queensland will be recognised as the leading Australian destination for market share,
reputation and experience delivery by Asian travellers. A series of objectives and strategic directions will propel the industry beyond
‘business as usual’ to deliver this goal by 2025. While the Queensland tourism sector is naturally outward looking, the underpinning
motivation for the strategy is to deliver jobs for Queenslanders and build a diverse, vibrant economy.

Inspiring Asia to experience the best address on earth

Aspirational Measures and Strategic


Objectives
Goals 2025 Targets Directions
OVE from Asian markets: 1. T
 argeted
1. Increase overnight $6.867 billion12 (supporting consumer
visitor expenditure up to 30,000 additional jobs)13 marketing
(OVE) and visitation
from Asian target
markets, supporting Visitors from Asian markets
Queensland jobs 1,626,000
2. T
 rade
engagement
2. Win market share by Queensland’s share of
By 2025
accelerating efforts Asian visitor OVE in
Queensland
to target priority Australia:
will be
Asian markets 17.1% – 23.0% 3. Aviation access
recognised
& strategic
as the leading
partnerships
Australian Total direct inbound seats
destination for from Asia to Queensland:
market share, 3,000,000 seats
3 A
 ttract and support
reputation and
increased aviation 4. I nfrastructure &
experience
access from Asia Queensland’s share of investment
delivery
inbound seats from Asia to
by Asian
Australia:
travellers
16.0% – 22.0%
5. E
 xperience
development
4 Increase average Average spend per Asian
spend per Asian visitor:
visitor to QLD $3,000 – $3,857
6. Events
5. Increase the Percentage of total Asian optimisation
proportion of trips to regions outside
Asian visitors Queensland’s major
travelling beyond international gateways
Queensland’s (Brisbane, Gold Coast, TNQ): 7. I nternational
three international 9.0% – 15.0% education
gateways.

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

4.0 THE RISE OF ASIAN TRAVEL

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.

4.1 Drivers of outbound travel

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.

Population Growth of the


Urbanisation
growth Asian economy

•• 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

12 Queensland Asia Tourism Strategy 2016-2025


> 50,000 Daily long-haul passengers

> 20,000 Daily long-haul passengers

> 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

23 OF THE WORLD’S MEGA-HUB AIRPORTS, Bangkok, Thailand


Manila, Philippines

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

> 20,000 Daily long-haul passengers

> 10,000 Daily long-haul passengers

2014
2034
Beijing, China Seoul, South Korea

Tokyo, Japan

Osaka, Japan Seoul, South Korea


Beijing, China
hi, India Shanghai, China
Tokyo, Japan

New Delhi, India Shanghai, China Osaka, Japan

Hong Kong SAR

ndia Dhaka, Bangladesh Taipei, Taiwan


Guangzhou, China
Manila, Philippines
Bangkok, Thailand Hong Kong SAR

Mumbai, India
Bangkok, Thailand

Kuala Lumpur, Malaysia Manila, Philippines

Bengalore, India Chennai, India


Ho Chi Minh City,
Vietnam
Phuket, Thailand
Singapore Colombo, Sri Lanka
Maldives Kuala Lumpur, Malaysia

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.

4.3 The sharing economy


Travellers are increasingly enjoying the benefits of the sharing Two popular services for visitors include Uber and
economy during their trips to Australia. The sharing economy, accommodation sites such as Airbnb and Stayz. Currently,
also known as the peer economy or collaborative consumption 11% of all international visitors to Australia use Uber, with
refers to peer-to-peer based sharing where people can choose visitors from the USA (19%) and UK (16%) the greatest
and pay for accommodation, cars, bicycles, household goods and consumers of this service. Around 8% of Chinese visitors
services online that private individuals provide for a fee. Online use Uber. It is proving popular among students, with a quarter
companies typically administer these services and offer a rating of Chinese students in Australia making use of the service.
or review system so people on both sides of the transaction can Of holiday visitors to Australia, 5% booked accommodation
trust the other. on a sharing economy site. Airbnb was used by 4% of
The sharing economy is growing exponentially as digital international visitors to Australia which equals approximately
technology reduces transaction costs and makes it easy for 279,000 visitors in the year ended March 2016. Of the
visitors and residents alike to access shared assets and services. accommodation booked this way by visitors, 20% was in
For visitors, this shared economy also provides the opportunity to Queensland compared with 43% in New South Wales and 33%
engage with locals and live like a local. in Victoria.15

15
Data for Year ending March 2016, IVS

14 Queensland Asia Tourism Strategy 2016-2025


5.0 QUEENSLAND’S OPPORTUNITY FOR SUCCESS IN ASIA

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

1. Increase overnight 2. Win market 3. Attract and 4. Increase 5. Increase the


visitor expenditure share by support average proportion of
(OVE) and visitation accelerating increased spend Asian visitors
Objectives from Asian target efforts to target aviation per Asian travelling
markets supporting priority Asian access visitor to beyond
Queensland jobs markets from Asia QLD Queensland’s
three
international
gateways

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.

Figure 3: Asian outbound trips beyond Asia, by source country

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.

16 Queensland Asia Tourism Strategy 2016-2025


5.2 Supporting objectives
To increase OVE, winning market share, increasing aviation 1. the market segments targeted – selected with a clear focus on
access and growing average spend will be fundamental as yield as well as volume;
they act in tandem. A growth in market share must include an
increasing share of arrivals and overnight expenditure as inbound 2. the quality of experiences offered – research and case
growth alone is not enough if competitors are growing at double studies consistently show there is a strong willingness-to-pay
the rate. Continued efforts in improving air accessibility through for the highest quality experiences;
direct flights and new route development will be critical to cater 3. the distinctiveness of experiences offered – if an experience
to the growing demand of Asian markets for leisure travel to is not unique or distinctive, soon enough it will be under threat
Queensland. Spend per visitor in Queensland has typically been from a newer, cheaper, easier one somewhere else; and
lower than in other Australian states, partly because the number
of nights spent is less, and also due to the lower average spend 4. a strong Queensland brand that is relevant to an Asian
per night. Chinese spending per trip is around 60% lower in consumer – a coveted brand, which involves some degree of
Queensland than the national average. A boost in yield can be exclusivity and is supported by campaigns and partnerships,
achieved by focusing on the following key factors: will provide a dividend for the state in the form of higher yield.

“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.”

John O’Sullivan, Managing Director - Tourism Australia May 2016

5.3 Dispersing the benefits


To generate jobs in regional Queensland and build a diverse, last ten years and 7.5% of Asian holiday visitors. While the rate
vibrant economy, the strategy must facilitate visitor dispersal of change in dispersal has remained steady for Queensland,
beyond the international gateways of Brisbane, Gold Coast Victoria in comparison has increased regional dispersal by more
and Tropical North Queensland (TNQ) to other regions. Broader than one third in the last three years and now has a dispersal rate
regional dispersal will also enable Queensland to capitalise on of 11.7% for all Asian visitors and 15.5% of Asian holiday visitors.
the growing Asian FIT market and extend its experiential appeal.
Queensland has considerable scope to increase regional
Already on the rise is the number of Asian visitors choosing self-
dispersal of Asian visitors as proven by the 35% of western
guided ‘touring of Queensland by private vehicle, up 10.7% from
markets who travel beyond the gateway cities. With the total
2014 to 2016 to 48,000.17
Asian overnight expenditure in Queensland more than three
Currently, Queensland’s three international gateways receive times the total international OVE for the non-gateway regions,
96.5% of all Asian visitors. The regions beyond these gateways the impact of increased dispersal on the regions would be
have averaged 9% of all Asian visitors to Queensland for the significant.

Image courtesy of Skyrail Rainforest Cableway

17
TRA (2016) IVS

17
Confidential

6.0 ASIAN MARKETS AND THEIR POTENTIAL

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:

•• projected to be the largest yielding markets in the next 5-10 years;

•• represent a diverse portfolio of outlooks;

•• preferences which best align with what Queensland has to offer;

•• segments that are easily reachable and will be our next ambassadors in local markets; and

•• are measureable.

6.1 The countries


Nine nations or regions have been identified as sources of visitors with growth potential for Queensland. The following map (p18)
illustrates their geographic catchment in Asia.

Based on the population size and long-haul travel propensity forecast out
to 2025, China, Japan and South Korea offer the greatest potential.

18 Queensland Asia Tourism Strategy 2016-2025


QUEENSLAND’S ASIAN TOURISM TARGET MARKETS
JAPAN P2
a n t)
pe n d
a rk e t de
on ly – m ) Population: 128M
tive ndant
dica depe
l (in – market Outbound Trips: 11.3M
Hau nly
g ve o Australia Share: 2.9%
Lon icati
au l (ind Queensland Share: 1.4%
rt H
Sho Forecast Growth: 1.7% p.a.
Expenditure: $334.7M

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

MALAYSIA P9 Bangalore Chennai CHINA (HK SAR) P7


Population: 30M Kochi Population: 7.3M
Outbound Trips: 826,000 Outbound Trips: 830,000
Australia Share: 39.3% Australia Share: 24.5%
Queensland Share: 5.8% Queensland Share: 6.1%
Forecast Growth: 4.8% p.a. Kuala Lumpur
SINGAPORE P6 Singapore Forecast Growth: 3.5% p.a.
Expenditure: $94.9M Expenditure: $140.1M
Population: 5.5M
INDONESIA P5 Outbound Trips: 985,000 TAIWAN P8
Australia Share: 37.8%
Population: 254.4M Queensland Share: 6.1% Jakarta Population: 23.4M
Outbound Trips: 552,000 Forecast Growth: 4.2% p.a. Outbound Trips: 749,000
Australia Share: 27.2% Surabaya Australia Share: 11.4%
Expenditure: 154.5M
Queensland Share: 3.1% Queensland Share: 6.7%
Forecast Growth: 5.2% p.a. Forecast Growth: 3.5% p.a.*
Expenditure: $35.0M Expenditure: $197.1M
t)
dep endan
ly – market
cative on LEGEND
Sh ort Haul (indi dant)
arket depen Established (Tier 1) cities Developing (Tier 2) early adopter cities Developing (Tier 2) late adopter cities
icative only – m
Long Haul (ind ACCELERATE – China, Japan & South Korea
with increased investment these markets have the potential to grow at a much faster rate
Population: Demographic Yearbook, United Nations Statistics Division (2016)
GROW – India & Indonesia
Outbound Trips: From Asian source markets to a destination that is outside of Asia. Tourism Statistics Database, YE June 2015, UNWTO (2016). investment will build foundations for mid-long term growth with modest growth in the short term
Australia Share of outbound trips beyond Asia: Australian inbound visitation figures. IVS YE December 2015, TRA (2016).
Queensland Share of outbound trips beyond Asia: Queensland inbound visitation figures. IVS YE December 2015, TRA (2016). WIN SHARE – Singapore, Hong Kong, Taiwan & Malaysia
Forecast Growth: Australian inbound visitation figures, p.a. growth 2014-2024. Tourism Forecasts 2015, TRA (2015) investment will seek to win market share from these mature markets where Queensland has a strong presence
Expenditure: Overnight Visitor Expenditure to Queensland, IVS, TRA (2016) P Priority. The target market prioritisation will be reviewed annually

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

Travel propensity: Longhaul trips per 1000 population

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.

20 Queensland Asia Tourism Strategy 2016-2025


6.2 The cities
Given the socio-economic diversity within Asian countries, a city- The cities are not clustered in country groups, as illustrated in
focus has been adopted in identifying the potential of the target Figure 5. For example, there is a significant gap in aviation levels
market. Key dimensions in determining the size of a city market between China’s tier 1 coastal cities and the major inland cities. It
include: also reveals the comparability of city markets across countries:
for instance, Delhi has a metropolitan population of around 23
•• the population of the broader metropolitan region – a basic
million, GSP of $2,100 USD per capita, and aviation traffic of 34
measure of market size;
million passengers per year. This is broadly comparable with
•• the Gross State Product (GSP) of the local province or region – Chengdu, which has a metropolitan population of around 18
a proxy for average income levels in the city; and million, GSP of $6,500 USD per capita, and aviation traffic of 37
million passengers per year.
•• the passenger volume of nearby airports – a measure of
the volume of people that can travel as a result of aviation Tokyo and Seoul are prominent as major centres of population,
capacity. economic wealth, and aviation activity. In comparison India’s
most populous cities are generally still lacking economic wealth
and aviation capacity to represent the same tourism opportunity
as China’s second tier cities.

6.3 The age groups


Travel decisions and the experiences sought by travellers vary An element common across all markets is that 20-34 year
across age groups. Whether a visitor is likely to return is also olds have higher yields than their country average, although
impacted by age. The rate of repeat visitation from Asia increases it ranges from a 4% premium for Singaporeans, to 104% for
with age as illustrated in Figure 6. If the average frequency of Indians. This age group falls into the Millennial cohort. These
repeat visitation is 2-3 years, then many repeat visitors would are most commonly defined as people born between 1981 and
have made their first trip aged 20-34. 1995, i.e. in 2016 are 21-35 years. The world’s Millennials share
The patterns of visitation vary across countries in Asia. Young a desire to travel each year to spend time with family, explore
adults (aged 15-34) represent 53% of non-education trips new cultures and take a break. They prefer small travel groups
to Australia from Taiwan, compared to 25% for China and and independent travel arrangements. Milliennials are not a
30% for India. Mid-working age (aged 35-49) cohorts are the homogenous group however, with differences in behaviour
most common aged group for Indonesian visitors (36%), and between countries. Currently, approximately 60% of the world’s
Singaporeans (39%). Older travellers (50+) comprise about 50% Millennials reside in Asia and their spend per trip has grown 6.1%
of visitors from India. Older travellers include those still working, p.a. over the past 10 years; significantly faster than the 3.7% p.a.
semi or fully retired. average for Asian visitors of all ages.

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

Queensland Asia Tourism Strategy 2016-2025


6.3.1 Asian Millennials
Currently there are 1 billion Asian Millennials, of which the majority they want, when they want it. They prefer FIT, with strong
reside in China and India. This group are expected to drive the aversion to highly regimented, ‘military style’ schedules that
next wave of tourism growth. Before entering their prime income cram as many attractions as possible into a single day.
generating years, Asian Millennials account for almost 35% of the
$600 billion that Asians spend on international travel. Their travel •• They gather as much information as possible from a
spend is expected to increase to $340 billion by 2020.18 range of sources in their travel planning. They draw
on recommendations by family members, magazines,
Travel spend varies across the Asian markets, reflecting different newspapers, travel agents, online travel reviews and social
travel preferences and behaviour. The Chinese are the largest networking sites.
spenders and prefer ‘big name’ destinations. Indian travellers
are second to Chinese in their spend per trip. They tend to stay in •• Although highly brand conscious they have limited brand
cheaper accommodation and spend more on flights and food. In loyalty. User reviews rather than brands are considered to
comparison the Indonesians and Singaporeans are deal seekers. offer greater familiarity and reliability in their travel decisions.
Indonesian travellers in particular opt for budget airlines and
•• They enjoy sharing their experiences in real time with social
accommodation. There are a number of characteristics common
media and having others comment. Travel to Asian Millennials
to Asian Millennials.
signals social status so posting pictures allows them to brag
•• These travellers have a desire to have greater control and and increase their standing. Travel blogs are an increasingly
autonomy over their travel experience: to be able to do what popular channel for planning and sharing their travels.

Spotlight on the Chinese millennial


Independent Free and independent travellers that are no longer representative of the traditional Chinese organised tour
groups. “Our marketing, distribution and partnership strategies are now all geared towards targeting this new breed of young,
independent travellers with the desire and financial means to explore our country.”
Source: John O’Sullivan Tourism Australia MD, News.com Travel Updates Jan 2016

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%;

•• real-estate investment – 48%;

•• business investment – 41%; and

•• purchasing Australian goods and services in China – 24%

Women as decision-makers for travel


Women in the Asian household tend to be the primary decision-maker with regard to holiday planning and travel. Analysis from
Mintel suggests that more women, on average, influence family financial decisions compared to men. In addition, surveys and
analysis conducted for Expedia, Contiki and Trafalgar Tours have shown that women are more interested in travel and actively
save more of their resources for travel.

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.

24 Queensland Asia Tourism Strategy 2016-2025 24


6.4 The competition
Within Australia, competition for Asian visitors is focussed visitor arrivals and expenditure. Hawaii, Fiji and the Maldives
around the capital city experiences in Melbourne and Sydney with their similar climate and natural environments are direct
and the nature based experiences aligned to those destinations competitors for Queensland. Compared to the less developed
such as the Great Ocean Road, Philip Island, Sydney Harbour, the tropical destinations, Queensland (and Australia more generally)
Blue Mountains and the Hunter Valley. Beyond the cities, Uluru is favoured for its good safety record and well developed
in central Australia entices Asian visitors to explore Australia’s infrastructure without overcrowding and pollution. Western
ancient landscape. countries including USA, New Zealand, France, Italy, Germany
and Switzerland are also highly sought after destinations for
Globally, competition for the Asian outbound market is Asian consumers. Currently USA and Europe outrank Australia in
strong, with many other countries vying for their share of attracting Asian outbound visitors, as illustrated in Figure 7.

Figure 7: Top 5 destinations for outbound travel beyond Asia

China 6.7% 17.6% 11.6% 10.2% 8.1%

Japan 32.0% 9.0% 7.5% 5.8% 5.3%

South 26.7% 5.5% 8.0% 6.6% 4.8%


Korea

India 5.8% 28.2% 11.4% 7.0% 6.4%

Singapore 37.8% 15.4% 18.3% 8.0% 4.8%

HK SAR 24.3% 14.7% 19.2% 8.1% 16.9%

Malaysia 39.3% 9.9% 19.2% 4.6% 8.2%

Taiwan 11.4% 56.8% 5.2% 5.9% 9.4%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

Australia USA UK France Italy Germany


Spain Switzerland Turkey Croatia Canada New Zealand

Source: UNWTO (2016) Tourism Statistics Database

25
Confidential

7.0 QUEENSLAND’S TARGET MARKETS

7.1 Defining our targets


Based on Deloitte Access Economics’ 2016 Asia Strategy •• Japan and South Korea should be more dependable sources
Research and TEQ market intelligence, Queensland’s target of visitation – Counting for 44% of all outbound travel beyond
markets in Asia have been identified and segmented into nine Asia, they have been looking elsewhere in recent years. The
nations/regions, their major cities and life stage groups. These task is to reconnect them with Queensland.
have been selected on their ability to move Queensland beyond
•• India and Indonesia are the longer-term opportunities – They
business as usual and grow OVE. The key markets and segments
are less urgent, but will be important to the long-term prosperity
are summarised as follows:
of the state’s visitor economy. Efforts in these markets can
•• Millennials (people born from 1981 to 1995) are the primary build over coming years, starting with new air routes.
demographic – They are travelling outbound in large numbers,
•• Singapore, Malaysia, Taiwan and Hong Kong SAR China –
spend more and explore more, bring friends and will stay
Mid-sized, but notable success stories for Queensland, the
engaged with Queensland long after their first visit.
state has a commanding position in these medium to long-
•• Mid-working (aged 35-49) and older travellers (50+) – These haul travel markets.
are important segments for Queensland to capture the full
The target markets will be reviewed annually to ensure efforts are
potential of Asian long-haul outbound travel.
focused on those markets that maximise Queensland’s return on
•• FIT – These are a growing segment out of Asia. With their investment.
propensity to travel beyond the gateway cities, FITs will be
The rationale or criteria for targeting certain segments is based
important for increasing regional dispersal.
on the following:
•• Women – have been identified as a target for marketing
•• projected to be the largest yielding markets in the next 5-10 years;
initiatives as they are highly influential in travel decision
making. •• represent a diverse portfolio of outlooks;
•• China is the cornerstone source market in Asia – China •• preferences which best align with what Queensland has to offer;
comprises a third of the Asian long-haul outbound market in
2014, and is expected to increase to nearly half by 2024. The •• segments that are easily reachable and will be our next
scale and immediacy of this market is a significant growth ambassadors in local markets; and
opportunity for Queensland, requiring focussed effort to ensure •• are measureable.
its potential is met. Millennials and 35-49 year olds are the
priority segments within key established (Tier 1) and developing Figure 8 provides an overview of the target markets, their
(Tier 2) cities identified as offering the potential to generate the travel group and purpose, time frame for action and the market
greatest return on investment for Queensland. strategy.

26 Queensland Asia Tourism Strategy 2016-2025


QUEENSLAND'S ASIAN TARGET MARKETS 2016-2025 Figure 8: Queensland’s Asian Target Markets 2016-2025

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)

Developing (Tier 2) early adopters cities: Hangzhou,


Accelerate China P2 P1 P2 P1 ü P1 S M
Nanjing, Chengdu, Tianjin, Xiamen, Wuhan
Developing (Tier 2) late adopter cities: Shenyang,
Qingdao, Ningbo, Chongqing, Fuzhou, Foshan,
Accelerate China P2 P1 P2 P1 ü P1 S M
Dongguan, Dalian, Xi'an, Changsha, Zhengzhou,
Kunming
Established (Tier 1) cities: Shanghai, Beijing,
Accelerate China P1 P2 P1 P2 P2 ü ü P1 S M
Guangzhou, Shenzhen
Accelerate Japan Established (Tier 1) cities: Tokyo, Osaka P1 P2 P2 P1 ü ü P2 ü P1 S
Grow Japan Developing (Tier 2) cities: Nagoya, Fukouka P1 P2 P2 P1 ü P2 P1 M
South
Accelerate Established (Tier 1) cities: Seoul P2 P1 ü ü P1 ü P2 ü P2 ü P1 S
Korea
South
Grow Developing (Tier 2) cities: Busan, Daegu P2 P1 P2 P1 P1 P2 P2 P1 M
Korea
Established (Tier 1) cities: Delhi, Mumbai, Bangalore,
Grow India P2 P1 P1 P2 ü ü ü P2 P1 S M
Chennai
Developing (Tier 2) cities: Hyderabad, Kolkata,
Grow India Ahmedabad, Pune, Kochi, Chandigarh, Amritsar, P2 P1 P1 P2 ü ü ü P2 P1 M L L
Jaipur
Grow Indonesia Established (Tier 1) cities: Jakarta, Surabaya P2 P1 P1 P2 ü P2 P1 S
Win Share Singapore Established (Tier 1) city: Singapore P1 P2 P2 ü P1 ü P2 P1 S
Hong Kong
Win Share Established (Tier 1) region: Hong Kong SAR P1 P2 P1 P2 P1 S
SAR
Win Share Taiwan Established (Tier 1) city: Taipei P1 P2 P1 P2 P2 P1 S
Win Share Malaysia Established (Tier 1) city: Kuala Lumpur P1 P2 P2 P1 ü ü P2 P1 S
This matrix will be reviewed annually

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.

28 Queensland Asia Tourism Strategy 2016-2025


7.2.1 Accelerate
The intent of the Accelerate strategy is to boost the increase in Queensland’s share of long haul visitors from three key markets:
China, Japan and South Korea faster than would have otherwise been realised under business as usual activity.

visitors represent 42.3% of


Queensland’s Asian visitors.
China Market
Accelerate: Early adopter developing (Tier 2) cities –
China is also the highest Hangzhou, Nanjing, Chengdu, Tianjin, Xiamen and Wuhan
yielding source market;
Accelerate: Late adopter developing (Tier 2) cities – Shenyang,
with visitors to Australia
Qingdao, Ningbo, Chongqing, Fuzhou, Foshan, Dongguan,
averaging $6,372 spend
Dalian, Xi’an, Changsha, Zhengzhou and Kunming
per trip, 40% more than the
China Asia-wide average.19 Chinese Age group: 35-49 years and Millennials
The cornerstone source outbound tourism spending Travel group: Group and FIT
market in Asia, China growth has been staggering
represented around a third – 45% p.a. over the past five Travel purpose: Leisure and Education
of all outbound trips years, equating to 530% Accelerate: Established (Tier 1) cities – Shanghai, Beijing,
beyond Asia in 2014, cumulative growth, as Guangzhou and Shenzhen
and is expected to grow illustrated in Figure 9). These Age group: Millennials and 35-49 years
to around 43-45% of figures exceed even bullish
long-haul outbound by projections of outbound Travel Group: Couples, Fit
2024. Currently, Chinese visitation a few years ago. Travel purpose: Leisure, Education, VFR and MICE

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.

Developing (early adopters): Six of China’s Tier 2 cities are


identified as early adopters. These are cities presenting a
significant opportunity for Queensland to increase OVE,
particularly from Millennials and 35-49 year olds, travelling
primarily as FITs. The cities are Hangzhou, Nanjing, Chengdu,
Tianjin, Xiamen and Wuhan.

Developing (late adopters): 12 cities are identified as late adopters


as they are currently strong, growing group travel markets.
The opportunity for Queensland is to create a shift towards FIT
over time. These cities include: Shenyang, Qingdao, Ningbo,
Chongqing, Fuzhou, Foshan, Dongguan, Dalian, Xi’an Changsha,
Zhengzhou and Kunming.

Source: Deloitte Access Economics (2016) UNWTO’s tourism barometer chart13

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.

Figure 10: Segmentation of opportunity: value vs growth

China: Tianjin, Huanzhou, Chengdu,


high-income Tier 2 cities China: Guangzhou, Shanghai, Beijing
High India: Delhi, Mumbai, Bangalore Education travel
PROSPECTUS:

Vietnam: Hanoi, Ho Chi Minh Millennial leisure travel


GROWTH

Indonesia: Jakarta

Japan: Tokyo, Osaka, Yokohama


Malaysia: Kuala Lumpur Korea: Seoul, Busan
Low Thailand: Bangkok, Chon Buri Taiwan
Philippines: Manilla Hong Kong
Singapore

Low High

CURRENT MAGNITUDE:

30 Queensland Asia Tourism Strategy 2016-2025


While Japanese travel beyond Asia
has declined 10% since 2005, travel to
Japan Market
Queensland has fallen 65% as many Accelerate: Established (Tier 1) cities -
of these visitors have chosen other Tokyo and Osaka
destinations, as illustrated in Figure 11.
Despite the long term downward trend Age group: Millennial and 50+
in Japanese visitation to Queensland,
Travel group: Couples, FIT and Group
there has been an encouraging increase
in Japanese visitor arrivals in the year to Travel Purpose: Leisure, VFR,
March 2016. This has been supported by
Japan the introduction of a daily Tokyo-Narita to
Education and MICE
While China will dominate the outbound Brisbane service in August 2015. Currently, Accelerate: Established (Tier 2 ) cities -
travel growth and expenditure over the Japanese visitors represent 16.9% of
Nagoya and Fukouka
next 10 years, a diversified portfolio Queensland’s Asian visitors. Japan is a
of target segments is essential as the reasonably high-yielding market, with Age group: Millennial and 50+
China market matures. Japan and South visitors spending an average of $4,500
Korea offer the potential of large, stable per trip.21 Travel group: Couples and FIT
volume visitor growth if these markets
reconnect with Queensland and are Travel Purpose: Leisure, VFR,
inspired to return. Education

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

32 Queensland Asia Tourism Strategy 2016-2025


7.2.2 Grow
India and Indonesia are growing visitor markets that as they mature will offer Queensland new opportunities to increase OVE.

As part of the grow strategy the focus will be


on improving aviation access. This market
India Market
Grow:
is expected to move to ‘accelerate’ over the
Established (Tier 1) cities –
medium term.
Delhi, Mumbai, Bangalore and
Target market segments offering the greatest Chennai
potential out of India include 35-49 year
Developing (Tier 2) cities
olds, Millennials, families, honeymooners,
– Hyderabad, Kolkata,
travelling for leisure, incentives and education.
Ahemdabad, Pune, Kochi,
Indians travel to Australia as FIT, group, VFR, Chandigarh, Amritsar and Jaipur
India incentive visitors and international students.
Based on current trends and the limited air There is potential for steady growth in the Age group: 35-49 years and
access, India is expected to be a medium target market segments outlined in this Millennials
term opportunity with slow, steady growth strategy. By increasing the Indian market to Travel group: Families,
prospects. Despite its large population, India Queensland, the industry has the opportunity Honeymooners, FIT and Group
is still an immature market for travel beyond to reduce seasonality. Indians traditionally
Asia. Currently, India represents 5.6% of travel during Queensland’s low season (April - Travel purpose: Leisure, MICE
Queensland’s Asian visitor market. June) and December. and Education

proximity and swelling ranks of relatively


high-income households. 35-49 year olds
Indonesia Market
and Millennials are the key target segments. Grow:
Currently, Indonesia represents 1.6% of Established (Tier 1) cities –
Queensland’s Asian visitor market. Jakarta, Surabaya
Although Indonesia is a relatively immature
Age group: Millennials and
market, Tourism Australia has tipped
Indonesia for strong growth in FIT and 35-49 years
Incentives travel. Similar to the Indian
Indonesia market, Indonesian visitors will be important
Travel group: FIT, Families,
Like India, Indonesia is still considered an in reducing seasonality. They tend to travel Friends, Couples
immature market presenting a medium- during the festival of Lebaran at the end
long term opportunity. Queensland is well of June, the low season for Queensland Travel purpose: Leisure
positioned to capitalise on its geographic destinations and in December. and MICE

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.

Singapore, Hong Kong SAR China, Taiwan and Malaysia


Combined, they represent 22.5% of inbound Asian visitors. Relatively stable economically, with established aviation links into
Queensland, they represent sound growth potential for Queensland. The focus will be on consolidating Queensland’s position in these
markets to increase share and OVE.

Singapore Market Hong Kong SAR Taiwan Market Malaysia Market


Win Share: Established China Market Win Share: Established Win Share: Established
(Tier 1) cities – Singapore (Tier 1) cities – Kuala
Win Share: Established (Tier 1) cities – Taiwan
Lumpur
(Tier 1) cities – Hong Kong
Age group: 35-49 years
Age group: Millennials Age group: Millennials
and Millennials Age group: Millennials
and 35-49years and 35-49years
and 35-49years
Travel group: FIT, Families,
Travel group: FIT, Families
Friends, Couples Travel group: FIT
Travel group: FIT and Group
Travel purpose: Leisure Travel purpose: Leisure Travel purpose: Leisure, Travel purpose: Leisure,
and MICE and Education MICE and Education MICE and Education

34 Queensland Asia Tourism Strategy 2016-2025


7.3 The potential of the target segments
Across the target countries, the priority segment is Millennials as they are travelling outbound in large numbers, spend and explore
more and predominantly travel as FITs. Consumers aged 35-49 years and 50+ are the next major targets. Women are a significant
target segment from a marketing perspective.

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.

Figure 13: Asian Market Segments

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.

36 Queensland Asia Tourism Strategy 2016-2025


7.3.5 Business events
Business events is one of the highest yielding sectors in Australia’s visitor economy and has the potential to contribute $16 billion
annually by 202024. As trade and investment links between Asia and Queensland continue to grow, the business travel market will
become increasingly important in driving yield and volume to Queensland. Business events, or the MICE (Meetings, Incentives,
Conferences and Exhibitions) industry as they are known in Asia, can be a key driver of economic growth, regional cooperation and
intellectual development. Growing the MICE segment to Queensland will bring benefits beyond profits and short term jobs—adding
competitive advantage to Queensland’s destinations, diversifying source markets and engaging both hosts and delegates in global,
regional and local issues.

7.3.6 High net worth individuals


Across Asia, rising incomes are creating an increasing number of middle class consumers with wealth to spend. Much of the growth
is coming from China. Currently, China has a middle class of 146 million people and an additional 1.4 million in the upper middle class
—China’s wealthiest citizens25. Chinese High Net Worth Individuals (HNWIs) are those with wealth equivalent to $1.6million and who
spent $30,000USD or more on travel in the past 12 months. These individuals are around 40 years old, married, with a 13 year-old
child. For these ‘super travellers’ Australia is a favourite destination for leisure. They tend to spend $10,300 USD per person/trip. The
majority stay nine days, with 48% staying 9-15 days.26

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.

7.3.7 Asian multicultural communities in Australia


Alongside the other target segments, an additional market is the migrant Asian communities living in Australia. These communities
are both domestic consumers and significant influencers of the travel decisions of friends and relatives in their birthplace. With strong
links back to Asia, these communities can build Queensland brand awareness, improve the reach of domestic marketing activity, and
encourage increased VFR travel.

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

8.0 QUEENSLAND EXPERIENCES AND THE ASIAN MARKET

8.1 The experience aspirations of the modern Asian traveller


Today’s consumers live in a global market with a myriad of tourism destinations to choose from, where time is in short supply, where
the joy of travel is frequently supplanted by the purchase of a new electronic gadget, and where there are lots of opportunities for
interaction, but few for meaningful connections. Discerning travellers are looking to get beyond superficial activities in search of more
meaningful and enriching experiences they’ll never forget. As increasingly independent travellers, they are seeking to enjoy these
experiences with locals and travellers from other countries rather than only with their Asian peers.

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:

1. Safety and security

2. Proximity – international and regional

3. Attractions

4. Good food, wine, local cuisine and produce

5. World class beauty and natural environments

6. Price of destination/value for money

7. World class coastlines, beaches and marine life

8. Rich history and heritage

9. Family friendly destination

10. Friendly and open citizens, local hospitality29

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.

38 Queensland Asia Tourism Strategy 2016-2025


THE EXPERIENCE ASPIRATIONS PER MARKET Figure 15: The Experience Aspirations per market 30
Source: Deloitte Access Economics, 2016

ACCELERATE

CHINA JAPAN SOUTH KOREA


Aspirations Aspirations Aspirations

Beauty and Local cuisine Local cuisine Interesting Beauty and Interesting
natural environments and product and product attractions natural environments attractions

Interesting Beaches and Rich history Beauty and Local cuisine


attractions marine life and heritage natural environments and product

Travel essentials Travel essentials Travel essentials

Safety and security Safety and security Safety and security Value for money

Greatest appeal Greatest appeal Greatest appeal


1. Coastline 1. Great Barrier Reef 1. Natural beauty
2. Great Barrier Reef 2. Wildlife 2. Wildlife
3. Wildlife 3. Beaches 3. Food & wine
4. Food & wine 4. Food & wine 4. Unspoilt wilderness
5. Natural beauty 5. Beaches
What are their current top markets What are their current top markets What are their current top markets
to travel to? to travel to? to travel to?

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

Beauty and Interesting Beauty and


natural environments attractions natural environments

Travel essentials
Family friendly Beaches and
marine life
Safety and security Value for money
Travel essentials

Friendliness and openness


Safety and security
Greatest appeal
Greatest appeal 1. Beaches
2. Visiting different destinations
1. Coastline 3. Wildlife
2. Wildlife 4. Cities
3. Great Barrier Reef 5. Island experiences
4. Island experiences 6. Great Barrier Reef

What are their current top markets What are their current top markets
to travel to? to travel to?

USA UK Italy Switzerland Australia Australia USA Turkey Netherland Switzerland


28.2% 11.4% 7% 6.4% 5.8% 27.2% 17.4% 9.5% 7.4% 6.9%

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

Local cuisine Interesting Interesting Family friendly


and product attractions attractions

Travel essentials
Beauty and
natural environments
Safety and security Value for money
Travel essentials

Friendliness and openness


Safety and security Value for money
Greatest appeal Greatest appeal
1. Great Barrier Reef
2. Food & wine 1. Beaches
3. Natural wilderness 2. Wildlife
4. Wildlife 3. Island experiences
4. Visiting different destinations

What are their current top markets What are their current top markets
to travel to? to travel to?

Australia UK USA Switzerland New Zealand Australia UK USA Turkey Switzerland


37.8% 18.3% 15.4% 8% 4.8% 39.3% 19.1% 9.9% 8.2% 4.8%

Source: Based on Deloitte Access Economics’sdesktop research and consultation and Tourism Australia’s international consumer research study The
Consumer Demand Project, 2015

8.2 Queensland brand and experiences


Queensland has a unique and captivating story to tell. The following table unpacks the elements that make up Brand Queensland.

Core Promise Where Australia Feels Most Alive

Warm, friendly, welcoming, outgoing, positive, carefree, outgoing, positive, carefree, cheeky,
Brand Personality
accepting, non-judgemental, unpretentious, down-to-earth

Pride in Queensland, hospitality, authenticity, creating holiday experiences that delight


Brand Values
visitors – the holiday state

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.

40 Queensland Asia Tourism Strategy 2016-2025


Queensland’s Brand Story encapsulates the essence of what visitors can expect from their Queensland experience.

The Queensland Brand Story


Queensland is everything we love most about Australia. Warm and welcoming.
Unpretentious and real. And heart-stoppingly, take-your-breath-away beautiful.

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.

That’s why we call Queensland the best address on earth.


We’re here to inspire you – and the world – to experience it for yourselves.

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.

The experience pillars and their hero experiences are:

•• 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.

Figure 16: Australian Opportunity Matrix – China Market

Source: Tourism Australia (2016) Understanding the China Market

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)

42 Queensland Asia Tourism Strategy 2016-2025


Show (Ekka), Taste Port Douglas and Noosa Food and Wine Opportunities remain for the industry to focus on niche
Festival can also add value to the Asian travellers experience interest segments that can drive substantive business.
whilst they are here. For example, Chinese palaeontology’s standing in world
science is at an all-time high following its many recent
Proximity: Queensland’s geographic proximity and a time dinosaur discoveries32. Connecting this niche industry
zone similar to the key Asian source markets position the segment to the outback dinosaur experience can deliver
state favourably. The availability of non-stop flights is not an a new market of scale to the outback – a non-traditional
important factor for Asian visitors, although the length of travel Chinese market destination.
time required and limited annual leave were can be a barrier to
planning a holiday to Australia. The Chinese connection to Australian history is another
drawcard that can be leveraged and enhanced through
Value: With a high standard of living Australia is considered to be investment. Opportunities to understand and engage in
a relatively high cost travel destination. This potential obstacle to Australia and China’s cultural history provide a reason to
travel highlights the importance of the Queensland offering and travel and explore Queensland regions.
delivering value for money visitor experiences.

Key components of Queensland’s value proposition are


the state’s natural wonders and associated nature-based
accommodation, attractions and attractions, tours and
Indigenous tourism experiences. Coupled with Queensland’s
Aboriginal and Torres Strait Islander culture is the wonder of the
ancient dinosaur discoveries and the drama and romance of
the Queensland outback pioneering story. These Indigenous,
dinosaur and heritage experiences, while currently not major
influences for Asian markets, represent valuable growth
opportunities for Queensland in adding depth and value to
Queensland’s established nature-based experiences.

8.4 Destination experience delivery


Queensland’s regions are a fundamental element in delivering As the Asian markets grow and mature, regional dispersal across
high quality experiences to Asian visitors. The strategy’s the state is expected to increase. To maximise regional benefits,
attention is primarily on the Gold Coast, Cairns/TNQ and implementation of this strategy will include a focus on increasing
Brisbane as Queensland’s direct air access points with Asia. the proportion of Asian visitors travelling beyond Queensland’s
Gold Coast and TNQ with the Great Barrier Reef are particular three international gateways.
strengths for Queensland as they have strong awareness and
Through the Attracting Aviation Investment Fund (AAIF),
offer desirable products and experiences for Asian travellers.
TEQ in partnership with DTESB is working with Queensland’s
All three destinations enable Asian visitors to enjoy another
airports to increase aviation capacity into the state from
Queensland selling point, consistently good weather.
identified priority markets. Each of the AAIF projects delivers
The Whitsundays, with its luxury island resorts and sailing, is a series of marketing campaigns in partnership with airline
a popular honeymoon destination for some Asian markets. and trade partners focussed on the target audience
Destinations providing access to the Great Barrier Reef are and growing visitation. To date, new and additional flights
also attractive. from China and Hong Kong SAR China have been secured
into the Gold Coast, Brisbane and Cairns.

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).

Gold Coast International Airport


2016 ASIA MARKET SNAPSHOT
Flights: 964 flights per annum
Airlines: AirAsia X, Hong Kong Airlines, Jetstar Airways/ Alba Star.es,
Qantas Airways and Scoot.
Airports: Hong Kong SAR, Kuala Lumpur, Malaysia, Singapore, Tokyo-
Narita, Japan, and Wuhan, China.

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.

44 Queensland Asia Tourism Strategy 2016-2025 44


Brisbane International Airport
2016 ASIA MARKET SNAPSHOT
Flights: 4911 flights per annum
Airlines: Cathay Pacific Airways, China Airlines, China Eastern Airlines,
China Southern Airlines, Emirates, EVA Air, Jetstar Airways/ Alba Star.es,
Korean Air Lines, Malaysia Airlines, Qantas Airways, Singapore Airlines,
Thai Airways and Virgin Australia..
Airports: Hong Kong SAR, Kuala Lumpur, Malaysia, Singapore, Tokyo-
Narita, Japan, Shanghai, China, Seoul, South Korea, Bangkok, Thailand,
Denpasar-Bali, Indonesia, Guangzhou, China, and Taipei, Taiwan.

8.4.3 Cairns and the Great Barrier Reef/Tropical North Queensland


TNQ is a popular region for Asian visitors, attracting 382,000 visitors, representing 36.5% of all Asian visitors to Queensland in the year
ending March 2016. These are predominately from China, Japan, India and Hong Kong SAR China. Currently TNQ captures 9% of Asian visitor
nights in Queensland.

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

•• Enjoying abundant fresh seafood and tropical fruits

•• 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.

Cairns International Airport


2016 ASIA MARKET SNAPSHOT
Flights: 1225 flights per annum
Airlines: Cathay Pacific Airways, China Eastern Airlines, Jetstar Airways/ Alba
Star.es, Philippine Airlines and Silkair.
Airports: Hong Kong SAR, Manila, Philippines, Singapore, Tokyo-Narita, Japan,
Shanghai, China, Denpasar-Bali, Indonesia, and Osaka-Kansai, Japan.

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 Asia journey


Tangalooma has spent 20 of its 50 plus years in operation establishing and
growing its reputation in Asia. From the resort’s beginnings with South East
Asia and Taiwan markets — early champions for Tangalooma— the resort now
attracts visitors from across Asia, including China, Japan, South Korea, India,
Indonesia and Thailand.

Tailoring the experience to Asian travellers


Tangalooma’s vision from the outset has been to deliver an exceptional experience for all visitors. Dedicated staff tailor product
and experiences to the tastes and preferences of travellers. Since the 1990s Tangalooma has employed multilingual guest
service staff who are able to minimise communication problems and ensure the experience is delivered to customers in a way
that resonates with that market. Multilingual mobile phone service is available to Chinese, South Korean and Japanese guests
to ensure guests feel connected and safe, day and night. Menus are tailored to suit different markets. For the India market,
vegetarian meals are prepared by Indian chefs to provide customers with the choice of meal options that suit their cultural
background.

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

A balanced portfolio of markets


An important goal of Tangalooma’s business strategy is to ensure a balanced portfolio of visitor markets. Currently the source
markets comprise Domestic 60%, Asian 35% and Western 5%. Within these source markets, Tangalooma targets specific market
segments including families, leisure groups, business, students and FIT.

Challenges and opportunities


In pursuing growth out of the Asian markets, Tangalooma faces a number of challenges that are common across all markets.
As Asian travellers have a relatively short length of stay, gaining inclusion in their travel itinerary is a challenge for businesses,
particularly in a competitive market. Perceptions of price and value for money relative to competitor destinations and a lack of
room stock in peak seasons are other challenges that the Tangalooma team work hard to address. Tangalooma have found that
the number one way to overcome these challenges is by establishing and maintaining strong relationships with trade in market.

Growing Asia market share


Tangalooma continues to grow the business and capture market share in all major Asian source markets through dynamic,
forward thinking and a preparedness to adapt to changes in market conditions and visitor expectations. A number of business
practices fundamental to Tangalooma’s success and that set the resort apart as a market leader, include:

•• dedicated sales managers for each market


•• strong relationships established with travel trade in key Asia source markets
•• consistency of approach in working with trade
•• following up with key partners to ensure product is delivering on the marketing promise for the consumer
•• strategic approach to in market visits (i.e when visiting Singapore, also visit Malaysia and Jakarta to achieve cost efficiencies)
•• selective approach to target market – (i.e less shopping groups, more high value or FIT)
•• selective approach to working with agents – (i.e work actively with 6-7 agents in each market)

46 Queensland Asia Tourism Strategy 2016-2025


Confidential

9.0 STRATEGIC DIRECTIONS TO MAXIMISE THE POTENTIAL

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.

What success will look like:


Asian travellers are inspired to holiday in Queensland
1 Grow Queensland’s understanding of target markets to gain further insights into the opportunities and nuances of individual consumer segments.

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.

Figure 17: Five Stages of the Customer Purchase Cycle

What success will look like:


Increased conversion from Asian consumers through trade and direct bookings
Focus trade activity on the priority regions and cities, working with agents active in these cities to establish, develop and grow partnerships and
1
maximise results.

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.

48 Queensland Asia Tourism Strategy 2016-2025


9.3 Strategic Direction 3: Strengthen aviation access and partnerships
A key strategy to maximise Queensland’s share of the Asia overnight visitor expenditure from target Asian markets by $651M
visitor market towards 2025 is to strengthen aviation access by 2020 and generate 6,500 jobs over four years. An outcome of
and strategic partnerships. The focus will be on attracting new the Advance Queensland: Connecting with Asia Strategy 2016-20,
airline services from key and emerging international markets, the fund will drive tourism growth from Asia through:
developing direct services and partnering with airlines in
cooperative marketing to ensure new and existing services are •• securing more direct international aviation access
commercially sustainable. •• creating innovative “best of” tourism products
This strategic direction is aligned with the broader Advance •• building relationships with targeted Asian countries
Queensland agenda, in particular, Advancing Tourism 2016-20
that seeks to facilitate government and industry partnerships to •• improving digital connection
secure growth from domestic and international markets. One
•• increasing awareness of Queensland experiences, and
of the key outcomes is a $33.5 million Advance Queensland:
Connecting with Asia Strategy 2016-20 to support an expanded •• regional dispersal
focus on increasing Queensland’s share of the Asian tourism
market and driving tourism growth in regional Queensland. This The Advance Queensland: Connecting with Asia Strategy
entails two programs that will connect Queensland destinations 2016-2020 is in addition to the AAIF, which was developed
with priority Asian markets including: to assist in increasing aviation capacity and new routes into
Queensland from identified priority markets. Delivering this
•• the $30 million Advance Queensland: Connecting with Asia strategic direction will build on the success to date in securing
Fund to support industry partnerships and collaborations for
new and additional flights from China and Hong Kong SAR China
new tourism opportunities in key Asian markets; and
into the Gold Coast, Cairns and Brisbane.
•• the $3.5 million Asia Boost to be used to support and assess
In addition to aviation partnerships, the Queensland Government
consortia proposals and identify new opportunities for
through TEQ will continue to identify and increase partnerships
industry partners to invest in key emerging Asian markets.
with trade, government and other stakeholders to leverage
The fund, which is a matched funding arrangement with industry resources and strengthen Queensland’s ‘share of voice’ and
partners in regions and source markets, aims to increase marketing weight in the competitive global tourism environment.

What success will look like:


Increased direct air access to Queensland from priority Asian markets with dispersal across the state and increased
engagement with partners that provide opportunities for the Queensland tourism industry

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.

What success will look like:


Sustainable investment in tourism infrastructure and uniquely
Queensland visitor experiences for Asian target markets

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.

50 Queensland Asia Tourism Strategy 2016-2025


9.5 Strategic Direction 5: Foster the development of high quality Queensland experiences
A destination’s tourism experiences form some of the most
memorable and distinctive components of a traveller’s visit.
Queensland offers a diverse variety of authentic and aspirational
tourism experiences that position it well as an international
“Experienced travellers from China rather choose
tourism destination for Asian travellers. World Heritage listed to explore more exotic destinations, or the same
natural environments like the Great Barrier Reef, thousands destination but in more depth and seeking more
of kilometres of unspoilt coastlines, beaches and marine life,
along with friendly laid back ‘Queenslanders’, are just some of
adventurous, authentic and unique experiences.
the alluring features of Queensland’s unique experiences. In Furthermore, they are more open to interact with
ensuring Queensland’s experiences align with the preferences the local people, culture, language and cuisine and
of Asian target markets, the focus will be on capitalising on and
growing highly valued and quality visitor experiences. more likely to book niche travel tours.33”
To the majority of Asian long haul tourists, whether group or
FIT, and particularly Chinese millennial travellers, the desire
to experience authentically different cultures to their own –
cultural immersion – is a crucial motivation behind their choice Asian travellers are looking for quality products and experiences
of an international tourism destination. That immersion means that offer value for money. As Queensland is considered an
stepping outside of their Asian peer group to enjoy experiences
expensive destination there is an opportunity to build a reputation
with the locals; to ‘live like the locals’. There is an opportunity to
for high quality with ‘world-class’ products and experiences. With
build on the warm Queensland welcome and offer a genuine,
Asian consumers’ preference for coastal attractions, Queensland
quality experience that respects Asian culture while representing
is well placed to capitalise on its natural assets and promote and
not only the Australian way of life but an accurate reflection of
how ‘Queenslanders’ live. This requires leveraging Queensland’s develop coastal experiences. The opportunity for Queensland is
unique outdoor lifestyle and providing opportunities to bond with to profile and build on the nature-based Indigenous experiences
‘the locals’ such as a barbeque with fresh Queensland seafood; and World Heritage areas, including the Great Barrier Reef, the
experiencing Indigenous culture; catching a fish and learning how Wet Tropics, Fraser Island, and Gondwana rainforests; and bring
to cook it; or learning to surf. the Queensland outback story to life.

What success will look like:


Highly valued, uniquely Queensland visitor experiences that resonate with consumers in priority Asia markets
Harness Queensland’s competitive advantage in nature-based experiences and align the offering to match the tastes and preferences of
1
travellers across Asia.

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.

What success will look like:


Queensland events are celebrated for increasing visitor demand and enhancing the experience for Asian visitors

1 Explore event opportunities to attract Asian visitors to Queensland.

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.

52 Queensland Asia Tourism Strategy 2016-2025


9.7 Leverage the tourism potential of the international education network
International student enrolments contributed $2.9 billion in export revenue and generated 19,470 jobs for Queensland in 2015,
representing one of the state’s most valuable industries.34 With growing global demand for education and training services, there is
a tremendous opportunity to partner with the international education and training industry to maximise the benefits for Queensland
tourism.

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.

What success will look like:


International students are ambassadors for tourism in Queensland

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

53
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.

54 Queensland Asia Tourism Strategy 2016-2025


HOW DO I GET INVOLVED?
The rise of outbound travel presents exciting opportunities for
Queensland tourism operators. In order to stand out in the highly
competitive global environment it is essential that the Queensland
tourism industry is equipped and ready to welcome increased visitor
numbers. It is important that businesses perform ‘health checks’ and
continue to learn more about the ever-evolving Asia travel market.

ASIA READY HEALTH CHECK


– IS MY TOURISM PRODUCT ASIA READY?

r 1. Do you know your organisation’s unique value proposition and


which Asian markets your product appeals to?

r 2. Do you operate seven days a week, year round?

r 3. Do you offer international standard policies such as cancellation,


payment and rooming policies?

r 4. Have you secured a strong foothold with the domestic tourism


market?

r 5. Do you understand the travel distribution system and have


relevant rate structures in place?

r 6. Have you conducted a careful assessment of your competition


both locally and nationally?

r 7. Have you reviewed Tourism Australia’s Consumer Demand


Project to understand the cultural nuances, aspirations and
drivers of consumers across Asian markets?

r 8. Are you aware of Queensland’s Hero Experiences and have you


identified how your business delivers on this marketing promise?

r 9. Do you have tailored marketing and social media plans specific


for relevant markets?

r 10. Do you understand where consumers can source information


about your product and invest appropriately in digital marketing?

r 11. Have you developed a range of promotional collateral with


targeted and culturally sensitive messages for both consumers
and the travel trade?

r 12. Do you have booking systems in place to accept international


bookings both direct, and via the travel distribution network (on
and offline)?

r 13. Are you working with complementary product in your region to


jointly package and promote to target Asian markets?

r 14. Do you provide clear location information or transport connectivity


to ensure your business is easily accessible to Asian travellers?

r 15. Do you invest in relationship building with your distribution


partners whether that be through trade shows, sales missions,
sales calls, familiarisations or networking events?

r 16. Have you sought advice from your local and regional tourism
offices, TEQ, Tourism Australia and ATEC?

r 17. Do you encourage social sharing while consumers are at your


product?

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

Australian Tourism Export Council:


atec.net.au

55
“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

56 Queensland Asia Tourism Strategy 2016-2025

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