Oceania: A Tourism Handbook (Aspects of Tourism)

Oceania ASPECTS OF TOURISM Series Editors: Professor Chris Cooper, University of Queensland, Australia Dr C. Michael H...

Author: Chris Cooper | C. Michael Hall

45 downloads 3326 Views 2MB Size Report

This content was uploaded by our users and we assume good faith they have the permission to share this book. If you own the copyright to this book and it is wrongfully on our website, we offer a simple DMCA procedure to remove your content from our site. Start by pressing the button below!
Report copyright / DMCA form

DOWNLOAD PDF

Oceania

ASPECTS OF TOURISM Series Editors: Professor Chris Cooper, University of Queensland, Australia Dr C. Michael Hall, University of Otago, Dunedin, New Zealand Dr Dallen Timothy, Arizona State University, Tempe, USA Aspects of Tourism is an innovative, multifaceted series which will comprise authoritative reference handbooks on global tourism regions, research volumes, texts and monographs. It is designed to provide readers with the latest thinking on tourism world-wide and in so doing will push back the frontiers of tourism knowledge. The series will also introduce a new generation of international tourism authors, writing on leading edge topics. The volumes will be readable and user- friendly, providing accessible sources for further research. The list will be underpinned by an annual authoritative tourism research volume. Books in the series will be commissioned that probe the relationship between tourism and cognate subject areas such as strategy, development, retailing, sport and environmental studies. The publisher and series editors welcome proposals from writers with projects on these topics. Other Books in the Series Managing Educational Tourism Brent W. Ritchie Recreational Tourism: Demand and Impacts Chris Ryan Coastal Mass Tourism: Diversification and Sustainable Development in Southern Europe Bill Bramwell (ed.) Sport Tourism Development Thomas Hinch and James Higham Sport Tourism: Interrelationships, Impact and Issues Brent Ritchie and Daryl Adair (eds) Tourism, Mobility and Second Homes C. Michael Hall and Dieter Müller Strategic Management for Tourism Communities: Bridging the Gaps Peter E. Murphy and Ann E. Murphy Tourism Marketing: A Collaborative Approach Alan Fyall and Brian Garrod Music and Tourism: On the Road Again Chris Gibson and John Connell Tourism Development: Issues for a Vulnerable Industry Julio Aramberri and Richard Butler (eds) Nature-Based Tourism in Peripheral Areas: Development or Disaster? C. Michael Hall and Stephen Boyd (eds) Tourism, Recreation and Climate Change C. Michael Hall and James Higham (eds) Shopping Tourism, Retailing and Leisure Dallen J. Timothy Wildlife Tourism David Newsome, Ross Dowling and Susan Moore

For more details of these or any other of our publications, please contact: Channel View Publications, Frankfurt Lodge, Clevedon Hall, Victoria Road, Clevedon, BS21 7HH, England http://www.channelviewpublications.com

ASPECTS OF TOURISM 17 Series Editors: Chris Cooper (University of Queensland, Australia), C. Michael Hall (University of Otago, New Zealand) and Dallen Timothy (Arizona State University, USA)

Oceania A Tourism Handbook Edited by

Chris Cooper and C.Michael Hall

CHANNEL VIEW PUBLICATIONS Clevedon • Buffalo • Toronto

Library of Congress Cataloging in Publication Data Oceania: A Tourism Handbook/Edited by Chris Cooper and C. Michael Hall. Aspects of Tourism: 17 1. Tourism–Oceania–Handbooks, manuals, etc. I. Cooper, Chris. II. Hall, Colin Michael. III. Series. G155.O25O25 2004 338.4'79195--dc22 2004017706 British Library Cataloguing in Publication Data A catalogue entry for this book is available from the British Library. ISBN 1-873150-87-3 (hbk) Channel View Publications An imprint of Multilingual Matters Ltd UK: Frankfurt Lodge, Clevedon Hall, Victoria Road, Clevedon BS21 7HH. USA: 2250 Military Road, Tonawanda, NY 14150, USA. Canada: 5201 Dufferin Street, North York, Ontario, Canada M3H 5T8. Copyright © 2005 Chris Cooper, C. Michael Hall and the authors of individual chapters. All rights reserved. No part of this work may be reproduced in any form or by any means without permission in writing from the publisher. Typeset by Archetype-IT Ltd (http://www.archetype-it.com). Printed and bound in Great Britain by the Cromwell Press.

Color profile: Disabled Composite Default screen

Contents Contributors 1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Introduction Chris Cooper and C. Michael Hall . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Part I Australia 2 Introduction to Australia Lisa Ruhanen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3 Demand for Tourism in Australia Chris Cooper and Lisa Ruhanen . . . . . . . . . . . . . . . . . . . . . . . . . . 17 4 The Organisation of Tourism in Australia Chris Cooper and Lisa Ruhanen . . . . . . . . . . . . . . . . . . . . . . . . . . 35 5 The Australian Tourism Industry Chris Cooper and Lisa Ruhanen . . . . . . . . . . . . . . . . . . . . . . . . . . 57 6 Sources of Australian Tourism Statistics Lisa Ruhanen and Chris Cooper . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Part II New Zealand 7 Introduction to New Zealand Peter Treloar and C. Michael Hall . . . . . . . . . . . . . . . . . . . . . . . . . 89 8 Demand for Tourism in New Zealand Peter Treloar and C. Michael Hall . . . . . . . . . . . . . . . . . . . . . . . . . 99 9 The Organisation of Tourism in New Zealand Peter Treloar and C. Michael Hall . . . . . . . . . . . . . . . . . . . . . . . . 116 10 The New Zealand Tourism Industry Peter Treloar and C. Michael Hall . . . . . . . . . . . . . . . . . . . . . . . . 133 11 Sources of New Zealand Tourism Statistics Peter Treloar and C. Michael Hall . . . . . . . . . . . . . . . . . . . . . . . . 153 Part III Pacific Islands 12 Introduction to the Pacific Islands Peter Treloar and C. Michael Hall . . . . . . . . . . . . . . . . . . . . . . . . 165 v

C:\edrive\Oceania\oceania.vp Friday, January 07, 2005 11:02:50

Oceania Contents


Oceania

vi

13

Tourism in the Pacific Islands Peter Treloar and C. Michael Hall . . . . American Samoa . . . . . . . . . . . Cook Islands. . . . . . . . . . . . . . The Federated States of Micronesia . Republic of Fiji Islands . . . . . . . . French Polynesia . . . . . . . . . . . Guam . . . . . . . . . . . . . . . . . . Hawaii . . . . . . . . . . . . . . . . . Kiribati . . . . . . . . . . . . . . . . . Marshall Islands. . . . . . . . . . . . Nauru . . . . . . . . . . . . . . . . . New Caledonia . . . . . . . . . . . . Niue . . . . . . . . . . . . . . . . . . Northern Mariana Islands . . . . . . Palau . . . . . . . . . . . . . . . . . . Papua New Guinea . . . . . . . . . . Independent State of Samoa . . . . . Solomon Islands. . . . . . . . . . . . Tokelau. . . . . . . . . . . . . . . . . Tonga. . . . . . . . . . . . . . . . . . Tuvalu . . . . . . . . . . . . . . . . . Vanuatu . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

Part IV Contemporary Themes 14 Tourism Investment in the South Pacific Larry Dwyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Customary Practices and Tourism Development in the French Pacific Anne-Marie d’Hauteserre . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Tourism and Air Transport in Oceania David Timothy Duval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Destination Risk Management in Oceania Jeff Wilks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Global Warming and Tourism in Oceania Stephen J. Craig-Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Tourism Education in Oceania Stephen J. Craig-Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 A Compendium of Tourism Sources for Oceania Chris Cooper, C. Michael Hall, Lisa Ruhanen and Peter Treloar. . . . . . .


. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

173 173 178 184 191 197 201 206 213 217 222 225 229 234 239 243 247 252 256 258 262 266

. . 297 . . 308 . . 321 . . 335 . . 353 . . 362 . . 380


Contributors Chris Cooper is foundation professor of tourism management and head of the School of Tourism and Leisure Management at The University of Queensland. His research interests range across tourism resort development, tourism education and training and knowledge management applied to tourism. Chris Cooper School of Tourism and Leisure Management The University of Queensland 11 Salisbury Road Ipswich Queensland Australia 4305 [email protected] Stephen J. Craig-Smith is associate professor of tourism in the School of Tourism and Leisure Management at The University of Queensland. His research interests are in tourism planning, urban tourism and tourism education. Stephen J. Craig Smith School of Tourism and Leisure Management The University of Queensland 11 Salisbury Road Ipswich Queensland Australia 4305 [email protected] Dr David Timothy Duval is a lecturer in the Department of Tourism at the University of Otago. His research interests are in the fields of migration, transnationalism, mobilities, and tourism, tourism in island environments, and transport management and planning networks.

vii



Oceania

viii

David Timothy Duval Department of Tourism University of Otago PO Box 56 Dunedin New Zealand [email protected] Professor Dwyer is Qantas Professor of Travel and Tourism Economics at the University of New South Wales. He publishes widely in the areas of tourism economics and tourism management. Larry Dwyer Qantas Professor of Travel and Tourism Economics Centre for Tourism Policy Studies School of Economics University of New South Wales Sydney New South Wales Australia 2052 [email protected] Dr Anne-Marie d’Hauteserre is tourism programme coordinator in the department of geography at the University of Waikato. Her research interests are in applying geographic concepts and critical social science theories to tourism destinations and their changing relations with surrounding communities. Anne-Marie d’Hauteserre Department of Geography University of Waikato Private Bag 3105 Hamilton New Zealand [email protected] C. Michael Hall is professor and head of the Department of Tourism, University of Otago, Dunedin, New Zealand. He is honorary professor in the department of Marketing, University of Stirling, Scotland and co-editor of Current Issues in Tourism. Michael Hall Department of Tourism University of Otago PO Box 55



Contents

ix

Dunedin New Zealand [email protected] Peter Treloar is a teaching assistant at the University of Otago. He has particular research interests in wine tourism destination marketing and event and conference management. Peter Treloar Teaching Assistant Department of Tourism University of Otago PO Box 55 Dunedin New Zealand [email protected] Lisa Ruhanen is a research assistant in the School of Tourism and Leisure Management at The University of Queensland. Her research interests are in strategic tourism planning and destination visioning. Lisa Ruhanen School of Tourism and Leisure Management The University of Queensland 11 Salisbury Road Ipswich QLD 4305 Australia [email protected] Professor Wilks is the Director of the Centre for Tourism and Risk Management at The University of Queensland, Australia. His research interests are in the health and safety of tourists. Jeff Wilks Centre for Tourism and Risk Management School of Tourism and Leisure Management The University of Queensland 11 Salisbury Road Ipswich QLD 4305 Australia [email protected]





Chapter 1

Introduction

Oceania is defined as Australia, New Zealand and the islands of the Pacific east of Indonesia and the Philippines. As such it is part of the most buoyant tourism region in the world – East Asia and the Pacific – a region that is forecast to receive a quarter of the world’s international tourists by 2020 (WTO, 1998). However, as a tourism destination, Oceania’s tourism volumes will remain modest as they are constrained by the huge distances involved in travelling in the region, indeed distance pervades any discussion of tourism in Oceania – the Pacific Ocean covers almost one-third of the earth’s surface, yet contains a fraction of the earth’s population (Harrison, 2003) (Figure 1.1). This is not only in terms of intra-regional travel across the Pacific, and indeed travel within the region’s largest landmass – Australia, but also the ‘tyranny of distance’ to the world’s tourism markets. Effectively this means that Oceania will never rival the tourism volumes of, say, Europe or the Caribbean – despite the proximity of the generating markets of Asia. Nonetheless, governments across the region have recognised the economic importance of tourism for income, jobs, investment and regional development. They have realised that, increasingly, tourism is becoming more important than the primary industries that were once allimportant in the majority of region’s countries. This is clearly demonstrated by the World Travel and Tourism Council’s statistics for the economic significance of tourism in Oceania shown in Table 1.11; indeed tourism is often the only real development option for many of the Pacific islands. The very nature of Oceania as a tourism destination means that large volumes of tourism are inappropriate. Effective management of tourism is needed to conserve and protect the region’s rich natural and cultural resources – Australia, for example, has a total of 14 World Heritage sites, both Australia and New Zealand have native flora and fauna, whilst the Pacific and its islands have fragile reefs, eco-systems and indigenous cultures. Of course, the stereotyped image of much of the region is of crystal clear waters and swaying palm trees and, whilst this may be true for the Pacific islands and tropical Australia, the region also has many other types of tourism. Both Australia and New Zealand have significant business and conference tourism in the major urban centres, host world-class events such as the Olympic 1


Oceania Introduction


Figure 1.1 Oceania


2

Oceania


Introduction

3

Games, the America’s Cup and Formula One Grand Prix, and act as settings for films such as the Lord of the Rings trilogy. It is difficult to draw generalisations across the tourism destinations of Oceania. Aside from the tourism products themselves, there is also great variation in tourism supply across Oceania. Accommodation, for example, ranges from the ‘profitless-volume’ high-rise units of the Gold Coast in Australia and parts of Hawaii, through the local home stays in the Pacific islands to 5 star lodges in New Zealand. Transportation too across the region is changing as both new budget airlines and also Asian carriers challenge the dominance of the national carriers such as Qantas and Air New Zealand. The organisation of tourism in the region showcases some of the best practice available worldwide. Both Australia and New Zealand have excellent national tourism administrations and policies, whilst the newly formed South Pacific Tourism Organisation is one of the few truly international tourism agencies in the world. Demand for tourism in Oceania has suffered at the hands of the Asian currency crisis in the late 1990s and more recently due to world events, which have not only reduced overall demand for travel but have also acted to cut airline capacity in the region. With the great distances involved, this is a severe constraint on tourism development in Oceania. Inbound volumes of tourism to Oceania are concentrated in Australia, New Zealand and Hawaii, but in both New Zealand and Australia it is the domestic market that has remained strong in the early years of the 21st century. The domestic market has delivered much-needed bed nights to support the tourism sector when the international market has declined. These paragraphs are a generalisation from a region that is rich in tourism products and examples. This volume draws together a wide range of sources to provide a comprehensive handbook of tourism in Oceania. As tourism grows in importance and significance in the countries of Oceania it is helpful to have a single source of information and reference for tourism. At the same time, this handbook attempts to provide a disciplined analysis of tourism by standardising terminologies and delivering a consistency of approach for all the countries in the region. The handbook is organised into four parts. The first three parts provide an anatomy of tourism in the region by taking a detailed look at each of the three key constituents of Oceania – Australia, New Zealand and the Pacific islands. For each of these regions we have analysed tourism demand, supply and organisation. In addition, for both Australia and New Zealand, we have devoted a chapter for each country to guide the reader through the sources of tourism statistics available. The final part of the handbook takes a thematic approach with invited chapters examining key issues of tourism in the region. Here we identified investment, air transport, risk management, land ownership, climate change and tourism education as critical to the future of the region’s tourism development.



Oceania

4

This has not been an easy volume to assemble. Partly this is due to the plethora of material on Australia and New Zealand, compared to the much more sparse sources for many of the Pacific islands. However, the handbook has also demonstrated the lack of consistency of tourism sources, statistics and terminology. This is nothing new to tourism researchers, of course, but is a cause for concern as tourism claims its place as one of the leading economic sectors not just in this region, but also worldwide. Stalwarts of putting this handbook together have been Lisa Ruhanen and Peter Treloar, as well as the authors of the themed chapters – Steve Craig-Smith, Anne-Marie d’Hauteserre, David Duval, Larry Dwyer and Jeff Wilks. As ever, Mike Grover and his team at Channel View have been at once patient, encouraging and supportive. Chris Cooper, Brisbane, Australia C. Michael Hall, Dunedin, New Zealand September 2003 Note 1. Throughout this volume, Tables have generally been presented at the end of the relevant chapter or section.

Table 1.1 The economic significance of tourism in Oceania Direct impact

Direct impact % of the economy

Direct and indirect impact

Direct and indirect impact % of the economy

Forecast growth to 2013 % annualised real growth

739,990

6.0

1,750,930

14.2

2.4

66.0

12.9

5.0

Exports

21.6

16.6

7.3

Capital investment

17.2

15.3

3.9

3.8

4.2

2.7

Jobs

US$ billions Gross domestic product

Government expenditure Source: WTTC (2003)


27.9

US$ billions 5.5


Part I

Australia


Part I: Australia Introduction to Australia




Chapter 2

Introduction to Australia LISA RUHANEN Australia is a unique and diverse country with great variations in its geography, society and culture. Popular icons have served to encapsulate Australia’s way of life such as food (Vegemite, lamingtons and Anzac biscuits); people (bushrangers and the early settlers); and legends such as the Anzacs and Ned Kelly that symbolise the Australian spirit (Womersley & Richmond, 2001). With a coastal-based population, the popularity of the beach has an important place in the national psyche, but the over-riding Australian image is of the ‘bush’, conjuring up images of the hardships of the first settlers, and unique and ancient landscapes (Womersley & Richmond, 2001). However, although these may be the traditional icons of Australian life, immigration, urbanisation and economic diversification have seen the country grow into a contemporary and sophisticated society with large, modern cities comparable to other western nations around the world. Australia’s tourism product reflects these changes as it develops and moves beyond the stereotypical images of the beach and the bush. As a consequence, Australia is attracting increasing numbers of visitors who are seeking to experience the cultural, heritage and food and wine products which are becoming important components of the tourism industry.

Geography The Commonwealth of Australia comprises six States, two mainland Territories and a number of external Territories, including a number of islands; Norfolk, Heard, the McDonald’s, Jervis, Cocos (Keeling), Christmas, Ashmore, Cartier and the Coral Sea Islands as well as the Australian Antarctic Territory (Encarta Encyclopedia, 2001) (Figure 2.1). Located in the southern hemisphere, Australia is the largest island nation in the world at 7,682,300 square kilometres and is approximately the same size as the United States (excluding Alaska). The country extends for approximately 4000 kilometres from east to west and 3700 kilometres from north to south, with a coastline of 25,760 kilometres. The country is bounded by the Arufa Sea to the north, the Pacific Ocean to the east, the Southern Ocean to the south and the Indian Ocean to the west (Australian Bureau of Statistics, 2002). Table 2.1 7



8

Figure 2.1 Australia


Part I: Australia


Introduction to Australia

9

outlines selected information on the States and Territories of the Commonwealth of Australia. Australia’s diverse and unique geographical and natural features form the basis of the country’s tourist appeal and attractions. Australia is one of the lowest, flattest and driest continents on earth, with three main geographical regions; the Eastern Highlands, the Central Lowlands and the Western Plateau (Darlington, 2001). • The Eastern Highlands extend across the continent from Cape York Peninsula in the north to the southernmost point of Tasmania. The coastal plains of the Eastern Highlands are separated from the interior of the country by the Great Dividing Range, a mountainous region averaging approximately 1200 metres in height, incorporating the Blue Mountains near Sydney, the Australian Alps in Victoria and the highest peak in Australia – the 2228 metre Mount Kosciusko in New South Wales (Encarta Encyclopedia, 2001). The majority of Australia’s cities and tourist facilities are located along the eastern coastal fringe and this is the most densely populated area of the country, housing more than three-quarters of the country’s population. The eastern coastline of Australia is popular for its beaches, bays and capes, with a number of natural harbours in Hobart, Port Lincoln and Albany and the well-known Sydney Harbour. Also located along the eastern coastline is one of Australia’s best-known natural assets and most popular tourist destinations, the Great Barrier Reef. The Reef is the largest known coral formation in the world, extending approximately 2010 kilometres along the northeastern coast of Queensland and is reputed to be between 2 million and 18 million years old. • The Central Lowlands are a series of vast rolling plains that extend from the Great Dividing Range to the Western Plateau and are characterised by a series of salt lakes, vast plains and low plateaus. Although mostly uninhabited the area is popular with both domestic and international visitors who are seeking an ‘outback’ experience and who desire to witness the great diversity of the Australian continent. • The Western Plateau, which is mostly desert, extends from central Australia to the Western Australia coastline and covers over two-thirds of the continent (Darlington, 2001). The fact that much of the centre of Australia is flat enhances the significance of one of its greatest natural icons, Uluru (Ayers Rock). A significant tourism attraction, Uluru is believed to be the largest monolith in the world, at 348 metres high and 9 kilometres around its base (Encarta Encyclopedia, 2001). A continent the size of Australia results in a range of vastly different climatic zones with extreme temperature fluctuations common. Approximately half of the country lies above the Tropic of Capricorn and therefore is within the tropical zone, with the remainder in the temperate (or subtropical zone). In the northern tropical



10

Part I: Australia

areas of Australia, the summer months, between October and March are known as the wet season, when the area experiences high temperatures and humidity, heavy rainfall, storms and cyclonic conditions. During this time much of northern Australia becomes inaccessible and it is generally not desirable for tourists to visit during this season. During the remainder of the year the region is generally hot but does not experience the high rainfall and cyclonic extremes of the wet season. Through the populated coastal areas of Australia, from Southern Queensland to the southeast of the continent the climate is generally more temperate, although summer and winter temperature extremes are possible. In some parts of inland New South Wales, Victoria and Tasmania large areas can be covered in snow and Australia’s ski resorts are located here. Throughout the interior of the continent there are very high temperatures in summer during the day, and lower temperatures at night, typical of a desert climate. In winter the days are still warm but at night the temperatures can be below freezing (Womersley & Richmond, 2001). Australia is also susceptible to extreme weather phenomenon, including cyclones, droughts, floods and bushfires. One of Australia’s biggest tourism drawcards is its natural environment, and numerous conservation mechanisms have been implemented to protect it for future generations. Australia has 14 World Heritage sites including the Wet Tropics and Fraser Island in Queensland, the virgin rainforest areas of Tasmania and the Blue Mountains in New South Wales. Since the first national park was declared in 1879 the area of national parks in Australia has expanded considerably to over 30 million hectares or 3.9% of the country.

Society Aboriginal Australia The first inhabitants, the Aborigines, migrated to Australia about 40,000 years ago, most likely from Southeast Asia during a period when low sea levels permitted simple forms of land and water travel. The Aborigines, although nomadic had a strong sense of place and intimate knowledge of their home landscapes (Encarta Encyclopedia, 2001). At the time of European settlement in 1788, there was an estimated Aborigine population of 300,000, with tribes in all parts of the country, but during the first century of white settlement, the Aboriginal population declined substantially due to the introduction of diseases from which they were not immune, social and cultural disruptions and mistreatment. By the 1920s the population had been reduced to only 60,000. More than 70% of Aborigines now live in urban areas, with traditional life maintained in small enclaves in the more remote locations of the north and centre of the continent (Encarta Encyclopedia, 2001). Collectively, Aborigines generally have lower social and economic opportunities than other Australians. However, Aboriginal communities all over Australia have begun to embrace the opportunities offered by tourism, which allows them to maintain and




11

celebrate a more traditional way of life. International visitors are increasingly seeking authentic Aboriginal tourism experiences, where they can learn about customs, dances, folklore and rock art. Aboriginal tourism is becoming an important component of Australia’s cultural tourism market. European Australia From the early 1400s Europeans began exploring many parts of the southern hemisphere and mapped the continent’s coastline. In 1770 the ‘Great Southern Land’ was finally claimed for England and the continent was named New South Wales. In 1786 the British government decided to establish a penal colony at New South Wales to alleviate the severe overcrowding of Britain’s gaols and Sydney still features some of the settlement’s original buildings. During the early years of the settlement there were a number of difficulties to be faced in the harsh, strange climate, including famine and drought and ongoing struggles with the Aborigines. However, despite this the settlement continued to grow and expand. Explorers began mapping the interior of the country; new penal settlements were opened in Victoria, Tasmania and Norfolk Island to support the continued deportation of convicts, and free settlers also began to migrate to Australia to establish farms to support the growing colony. By 1840 most of the southeastern parts of the continent had been occupied by Europeans, along with parts of Western Australia, South Australia and Queensland, all of which became self-governing colonies (Barwick & Barwick, 2000). In 1840 the British government ended transportation to New South Wales, although it continued in Tasmania until 1853, Norfolk Island until 1856 and in Western Australia until 1868, by which time more than 160,000 men, women and children had been sent to Australia as convicts (Darlington, 2001; Womersley & Richmond, 2001). Travel has been commonplace for Australians since the first settlement. The need to open new lands and establish industries and towns caused the constant dispersal of people across Australia, which created an early habit of mobility and enterprise (Piesse, 2002). Initially tourism developed in the resorts surrounding the main population centres, such as the Blue Mountains near Sydney and the hill and coastal resorts close to Melbourne and other major cities, facilitated by horse-drawn and later motor coach transport and rail. As transportation advanced travel increased steadily, particularly by rail and sea, with passenger ships providing links between ports across the country. In the years following World War II, the advent of new and improved methods of transportation, coupled with rises in the standard of living and the marketing of foreign destinations, saw international travel increasing considerably (Piesse, 2002), particularly with the establishment and growth of air services. Australia’s British heritage saw the population’s way of life initially reflecting that of the early settlers, but customs were modified as the settlers adapted to the



Part I: Australia

12

new country and the extremities of its climate. A culture evolved that, although based on British traditions, was unique to Australia. This culture has become increasingly sophisticated and has been promoted by government subsidies for the arts and the provision of improved facilities. Many cities and towns have built or expanded art galleries and performing arts centres with the Sydney Opera House being one of Australia’s premier icons. Australian society in the 21st century In 2001, Australia’s population was 18,972,350, which represents an increase of 6% since the 1996 census (Australian Bureau of Statistics, 2002d). Table 2.2 presents selected demographic data for the Australian State capitals. Other key characteristics of the Australian population from the 2001 Australian Bureau of Statistics census include: • The median age of the population was 35 years, with an increase in the proportion of people aged 65 years and over (12.6% of the population), with 20.7% of people aged between 0–14 years. The Australian population is continuing to age as a result of low fertility and increased life expectancy. • The proportion of females (50.7%) is slightly higher than males (49.3%). • The majority of the Australian population were Australian born (71.8%) and English was the only language spoken at home by 79.1% of the population. • Over 410,000 Australian’s identify as being of Indigenous origins which represents 2.2% of the total (Australian Bureau of Statistics, 2002d). As is the case with much of the western world, Australia’s demographic and socio-cultural circumstances are changing. Greater affluence, increased leisure time, a high percentage of women participating in the workforce, greater life expectancy and changes in family structures, have seen Australians increasingly engaging in travel both internationally and domestically (Hall, 1998). Other factors such as a high rate of car ownership amongst the population have seen the Australian domestic market expand considerably. Domestic travel is a major component of the Australian tourism industry and has led to investment in the development of new and improved facilities, especially accommodation, at dispersed points around Australia, and to modifications in the organisation and methods of tourist administration, development and promotion (Piesse, 2002).

Political Structure The nation of Australia officially began in 1901 when the six colonies of New South Wales, Victoria, Queensland, Tasmania, South Australia and Western Australia became States under the central authority of the Commonwealth of Australia. Later two Territories were added to the Commonwealth, the Australian Capital Territory and the Northern Territory (Darlington, 2001). The Australian




13

parliamentary system is based upon British and American government models, with two parliamentary houses, the Senate and the House of Representatives. Australia is managed by a federal system of administration – the official title of the federal government is the Commonwealth Government of Australia. The Commonwealth Government is formed from the party that has the most members in the House of Representatives and the leader of the party is the country’s prime minister. At the federal level, the Commonwealth Government has authority over matters affecting the entire nation such as the national economy, the welfare system, national defence and immigration. While not having explicit control over tourism it does have a facilitation and coordination role and establishes the general framework within which tourism operates, and also has a legal responsibility for areas that impinge on tourism such as quarantine, customs and excise, corporations and international trade (Hall, 1998). The Commonwealth Government does fund a ministerial department, a tourism marketing commission, and a national tourism research body. The State and Territory governments are responsible for health, education, transportation and other matters that fall within their borders and have a far more substantial role in tourism than the Commonwealth Government. The States and Territories are primarily responsible for infrastructure, facility development, planning and the regulation of tourism located within their jurisdiction (Hall, 1998). Each of the States and Territories has a tourism agency responsible for, among other things, the planning and marketing of tourism. Hall (1998) finds that there is often little difference between the tourism objectives of the States and the Commonwealth resulting in an overlap of responsibilities. Australia’s political structure also includes a local government system that has authority over local issues such as parks, housing and roads and derives its powers from the respective State or Territory government. Local government plays an important and often entrepreneurial role in tourism development and spatial planning (Hall, 1998). Further involvement in tourism usually relates to the provision of public services and facilities that are used by both residents and visitors alike and local tourism marketing through the provision of visitor information centres and promotional literature.

Economy Traditionally Australia has been a large producer of primary products. Economic sectors such as the pastoral industry have been one of the country’s economic mainstays since the early days of settlement and have played a significant role in Australia’s economic and historical development. The growth in the wool industry resulted in considerable advances in the Australian economy, and local manufacturing industries were established in response to these new market opportunities.



14

Part I: Australia

Gold surpassed wool as Australia’s major export earner throughout the 1850s and 1860s, resulting in a rapid expansion of banking and commerce (Australian Bureau of Statistics, 2002). In the 21st century, service industries such as tourism have played a much greater role in the economy as the contributions from goods-producing industries have declined. This can be seen in Table 1.3. Tourism has become a significant economic sector for Australia. For the period 2000/2001, tourism’s contribution to Gross Domestic Product exceeded that of government administration and defence, agriculture, forestry and fishing, communication services, electricity, gas and water supply, accommodation, cafes and restaurants, personal and other services, and cultural and recreational services (Australian Bureau of Statistics, 2002l). In 2000/2001 the tourism sector accounted for AU$31.8 billion of total Gross Domestic Product, making it one of the economy’s most lucrative sectors. Tourism also makes a significant contribution to employment and Australia’s exports. Contribution to total employment in 2000/2001 was 6% and the industry contributed 11.2% of Australia’s total exports of goods and services (Australian Bureau of Statistics, 2002l).

Conclusion Optimistic tourism leaders predict that by the year 2020 Australia will be receiving approximately 20 million visitors annually. Whether this forecast is realistic or not, Australia’s international and domestic visitor numbers are set to continually increase, and this will impact upon the country’s natural, social and cultural resources. The challenge is for government authorities, management agencies and the tourism industry to ensure a balance between growth and sustainability objectives so that Australia’s tourism assets can be enjoyed by future generations of residents and visitors.




15

Table 2.1 States and Territories of the Commonwealth of Australia State/Territory

Area (km2)

New South Wales

800,640

10.4

2,140

6,532

Sydney

Victoria

227,420

3.0

2,510

4,829

Melbourne

1,730,650

22.5

13,550

3,628

Brisbane

983,480

12.8

5,070

1,502

Adelaide

2,529,880

32.9

20,780

1,910

Perth

68,400

0.9

4,880

470

Northern Territory

1,349,130

17.54

10,950

198

Darwin

Australian Capital Territory

2,360

0.03

–

314

Canberra

59,740

19,387

Queensland South Australia Western Australia Tasmania

Total

7,691,960

Percentage Length of Population Capital city of country coastline (km) (’000) 2002

100

Hobart

Source: Australian Bureau of Statistics (2002)

Table 2.2 Demographic data by Australian State capital, 2001 Persons (’000)

Sydney – NSW Melbourne - VIC Brisbane - QLD

Adelaide - SA

Persons (’000)

3,997.3

3 366.5

1,627.5

1,072.6

Males (’000)

1,967.7

1,647.9

794.5

522.0

Females (’000)

2,029.6

1,718.7

730.3

507.9

Median age

34

34

33

37

Persons born in Australia (%)

62.2

65.7

74.6

72.2

Persons (’000) Persons 2001 (’000)

Perth - WA

Hobart - TAS

Darwin - NT

Canberra - ACT

1,340.0

191.2

109.4

311.5

Males (’000)

656.8

92.6

57.1

153.2

Females (’000)

609.6

92.4

51.7

158.4

Median age

34

36

32

32

Persons born in Australia (%)

63.6

83.6

72.7

73.8

Source: Australian Bureau of Statistics (2002d) Note: NSW = New South Wales; VIC =Victoria; QLD = Queensland; SA = South Australia; WA = Western Australia; TAS = Tasmania; NT = Northern Territory; ACT = Australian Capital Territory



Part I: Australia

16

Table 2.3 Industry contributions to the Australian Economy, 1999/2000 Industry

Contribution to Gross Domestic Product

Contribution to total employment

AU$m

%

%

Agriculture, forestry, fishing

18,717

3.0

4.9

Mining

27,559

4.4

0.8

Manufacturing

76,698

12.1

13.0

Electricity, gas, water supply

12,049

1.9

0.7

Construction

37,106

5.9

7.8

Wholesale trade

32,863

5.2

4.9

Retail trade

32,736

5.2

14.6

Accommodation, cafes, restaurants

12,983

2.1

5.0

Transport and storage

35,267

5.6

4.6

Communication services

18,812

3.0

2.0

Finance and insurance

41,615

6.6

3.7

Property and business services

74,192

11.7

11.3

Government administration and defence

23,289

3.7

3.8

Education

28,011

4.4

6.8

Health and community services

34,482

5.5

9.5

Cultural and recreational services

10,573

1.7

2.4

Personal and other services

15,020

2.4

3.9




Chapter 3

Demand for Tourism in Australia CHRIS COOPER AND LISA RUHANEN

Introduction Demand for tourism in Australia has been influenced by two key factors (Hall, 1998): • the distance of Australia from major generating markets; and • the large size distances between major urban centres in Australia. This means that significant inbound tourism volumes remain out of reach for Australia, leaving domestic tourism as the mainstay of Australian tourism, representing around 75% of activity. Capital cities form relatively self-contained domestic tourism markets whilst Australia’s ageing population means that both outbound and domestic travel products have to adapt to the changing circumstances of the market. Australia’s inbound markets are also ageing, with the consequent need to change products and promotional messages.

Economic Significance of Tourism Demand The contribution of tourism to Australia’s economy can be measured from the Australian tourism satellite accounts. Here, visitor consumption includes all expenditure on goods and services in Australia by visitors. For Australia, tourism impacts upon the economic sectors of accommodation, food and beverage, transport and retail, whilst the indirect impact of tourism is felt across a broader range of economic sectors. Tourism is also a significant economic factor in both the income and spending of government in Australia. It is estimated that tourism demand directly contributed 4.3% to Gross Domestic Product in 2000/2001. The majority of this was contributed by domestic demand (76%), followed by international visitors (24%). For domestic demand, overnight visits account for 77% of consumption and daytrips 23%. In 1999/2000 by industry sector, transportation accounted for 18% of consumption; retailing (16%); food and 17


Part I: Australia Demand for Tourism in Australia


Part I: Australia

18

beverage (15%); and accommodation (9%). The regions of Australia benefit significantly from the economic effects of tourism. Tourism employed 551,000 persons in 2000/2001 representing 6% of Australia’s total workforce (rising to 10% if indirect employment is taken into account). The retail sector employed 27% and the accommodation sector 18% of this total. Over one-third of employees work part-time. The majority of tourism businesses (80–90%) are small and employ fewer than 20 people, making up about one-half of the tourism workforce. By 2010 it is estimated that tourism will directly generate a further 200,000 new jobs.

Demand for Inbound Tourism to Australia The ‘tyranny of distance’ has held back the growth of inbound tourism to Australia, with the majority of visitors either coming to settle in Australia, or to do business there. Until the 1980s, Australia was not important as a holiday destination, the great majority of visitors being for business or visiting friends and relatives (VFR) purposes. In the last 20 years of the 20th century visitation increased significantly, particularly from Asia, as Asian markets developed and transport links were enhanced. In the 1980s and 1990s growth rates for inbound tourism accelerated, and by the end of the 1990s Australia was receiving arrivals of almost 4.5 million, a 9% increase in arrivals from approximately 2 million in 1990 (Table 3.1). In 2002 inbound arrivals had risen to 4.8 million, which is effectively a doubling of inbound volume on 1990. In part, this has been due to the promotional efforts of both the Australian Tourist Commission (ATC) and the Australian State governments. In turn these arrivals are delivering considerable export earnings to the Australian economy (11.2% of total exports), and record spending per visitor. In the early years of the 21st century international tourism has continued to grow significantly, boosted by the 2000 Sydney Olympic Games, and the depreciation of the Australian dollar against other currencies. There were fears that international arrivals would fall following the Olympics and promotional campaigns and a post-Olympics strategy were put in place to minimise the ‘post Olympics’ effect. Specifically, the impact of the 2000 Olympics on tourism demand were: • 110,000 international visitors; • AU$6.1 billion economic benefit; and • 150 new jobs. In 2001, there were a total of 4.8 million visitors to Australia, a fall of 2.6% on the year 2000, partly due to world events (see case study). By 2002 the decline had levelled off with virtually no change in the volume of inbound tourists. In terms of purpose of visit, business and professional reasons have increased substantially since the 1990s, representing 10% of all visits (Table 3.2). However,



Demand for Tourism in Australia

19

well over half of all international visitors arrive on holiday trips. Visiting friends and relatives (VFR) tourism is decreasing in importance (especially from Britain and Ireland) as holiday tourism becomes more important; nonetheless it represents almost 20% of all visits. Length of stay tends to be long given the distances travelled to reach Australia – in 1999/2000 21% of visitors stayed for at least a month (Table 3.3). The longest lengths of stay are by visitors from Europe (38 days), Asia (30 days) and North America (27 days). As Asian markets have developed and transport links enhanced, the traditional markets of Europe, New Zealand and the USA are becoming relatively less important (Table 3.4). Increased transport links with South Africa since the dismantling of apartheid have also boosted arrivals from South Africa. The main inbound markets for Australia are: • New Zealand is Australia’s number one market. This is despite the failure of Ansett, and the consequent changes to trans-Tasman routes. Other airlines have entered the route and New Zealand travellers have chosen Australia in preference to alternative long-haul destinations – perceived as unsafe – in the post-September 11th environment. • North America, though as a market it was strongly affected by the September 11th attacks, and developments in the air transport market. These included: – the failure of Ansett (as no Star Alliance partner served Australian domestic routes); – changing structures in the Canadian airline sector; and – the fact that Qantas reduced capacity on North American routes. • the UK/Ireland, both important generating markets for Australia, displaying considerable resilience. • Asia, where Japan remains important, despite being a market that was markedly affected by September 11th and the Ansett collapse. A growing number of tourists come from Singapore, Hong Kong, and other Asian countries, and many of these are in the student category. China has the potential to become a major generating market for Australia, particularly in the group travel segment and with younger and family groups. New South Wales is the most popular State for international visitors with almost 40% of all nights, followed by Queensland with over a fifth of nights (Tables 3.5 and 3.6). The International Visitor Survey (IVS) shows that the great majority of foreign visitors to Australia arrive in Sydney or Melbourne and few travel beyond New South Wales, Victoria or Queensland to take advantage of lower fares offered by the major domestic airlines. This is despite attempts to spread arrivals to other gateways (such as Perth) and the fact that the impact of deregulation of the domestic airlines in 1991 reduced prices and increased choice. As would be expected, the ma-



20

Part I: Australia

jority of tourists travel to Australia by air and the percentage of tourists arriving in Australia by sea is slowly decreasing. The distribution of tourists by age group is shown in Table 3.7. The Tourism Forecasting Council predict international arrivals to increase by less than 5% per annum in the period 2001–2012 to reach 7.6 million visitors by 2012. Particularly strong markets for the first decade of the 21st century are Asia (especially China and Korea), the UK and the USA. Arrivals have been boosted by mega-events in the period, including the Rugby World Cup in 2003, and no doubt will be further boosted by the Commonwealth Games in 2006. However, the impact of international tension, acts of terrorism and heightened security alerts, allied to weak global economic growth, have reduced the optimism of inbound forecasts.

Australian Domestic Tourism Demand Domestic tourism is the ‘lifeblood’ of the Australian tourist industry, accounting for well over two-thirds of total visitation. Domestic tourism is particularly important to the economies of rural Australia, although it is the metropolitan areas that have shown growth. The early settlers in Australia were the first domestic tourists, often farmers travelling from the rural areas to the towns. The large size of Australia, coupled with the large distances between major urban centres, means that domestic tourism is mainly restricted to near city, often coastal destinations (Hall, 1998). Domestic travel by Australians, both for overnight and day trips has been depressed in the later years of the 1990s and the early years of the 21st century – estimates suggest that in any one year 30% of working Australians do not take a holiday. At best, demand for overnight trips is flat and day trips have registered a decline, despite population increases and a strong economy. There are concerns that in the economy as a whole, domestic tourism is losing its share of spending to other consumer purchases, whilst the drought of 2002/2003 has affected regional economies and changed tourists’ purchasing patterns. In response, the Australian Tourist Commission instigated the ‘See Australia’ campaign, which encourages Australians to take the time to have an Australian holiday. Overnight trips Each year Australians over the age of 15 take, on average, at least five trips involving a stay away from home, and travel has become an important element of discretionary spending, increasing travel propensities. In 2001 the domestic market was worth almost 290 million nights, with an average stay of four nights (Table 3.8). This represents a flattening of demand, as visitors take more, but shorter trips, consequently reducing the total number of nights. However, in 2002 and 2003, international events keeping Australians at home, boosted the domestic market. As would be expected, the volume of domestic tourism is closely related to the popula-




21

tion size of each State, with Queensland, New South Wales and Victoria clearly dominating. The key features of domestic tourism are as follows: • New South Wales is the most popular destination (around one-third of visitor nights), followed by Queensland (around one-quarter of visitor nights), and Victoria (18% of visitor nights). However, Victoria is increasing its relative share of the market (Table 3.9). • Intrastate trips dominate, being more than twice the volume of interstate trips. • Almost half of all trips are taken for pleasure purposes, followed by VFR (29%) and business (15%) (Table 3.10). • As would be expected, air travel dominates for interstate trips, whilst private vehicles are the dominant transport mode for intrastate trips (Table 3.11). • It is a seasonal market, peaking in the summer months and school holiday periods. • The most commonly used accommodation is staying with friends and relatives (40% of visitor nights). This reflects a trend away from the traditional caravan parks to hotel/motel accommodation, and staying with friends and relatives. • Table 3.12 shows the demographic profile of domestic tourists. Overall forecasts for domestic tourism reflect the very flat growth experienced since the late 1990s. The Tourism Forecasting Council predict an average annual growth rate of 0.5% to 2012 giving a total of 314.0 million visitor nights by 2012. Business tourism is forecast to grow at a slightly greater rate. Day trips Day trips are defined by the Australian Bureau of Statistics as a round trip of 50 kilometres or more with no overnight stay. The day trip market in Australia has been in steady decline, with 146 million trips taken by Australians in 2001 (Table 3.13). Of these trips, leisure dominates (52%) followed by VFR (30%) and business (9%). Spending on day trips is pre-dominantly on retailing, fuel and food and beverage and represents around one-quarter of the spend of overnight visitors. Most trips are taken within States except for the small Australia Capital Territory where 95% of trips are taken out of the State. As would be expected, Australians tend to use private motor vehicles for day trips (91% of all trips) (Table 3.14).

Demand for Outbound Tourism from Australia Australia is the largest generator of international tourism in the Southern Hemisphere, with over 3.4 million trips taken in 2001/2002 and spending of over 4500 Australian dollars (per trip). The number of Australian residents travelling abroad



Part I: Australia

22

has been increasing over the last decade due to greater economic prosperity, the desire to maintain cultural and personal links with other countries and the reducing cost of international travel as a result of competition and technology. In the 1999/2000 period the growth in inbound visitors was almost double that of outbound visitors (9% and 5% respectively) resulting in a positive balance on Australia’s travel account (Table 3.15). The following are key features of Australians’ outbound tourism: • The majority of Australian tourists who travel abroad are residents of the two most prosperous States – New South Wales and Victoria. • Europe is the most visited destination. Other popular destinations include the USA, New Zealand, the Pacific Islands (such as Fiji, Vanuatu and New Caledonia) and Asia (Thailand and Bali). The relative decline of the Australian dollar has impacted upon destination choice, although its recovery in 2003/2004 has stimulated demand for outbound travel (Table 3.16). • Purpose of visit is dominated by leisure (45%); followed by VFR (25%) and business (17%). Both business and VFR travel are increasing as the purpose of visit (Table 3.17). • The long-haul nature of Australians’ travel, allied to the high percentage of VFR traffic, means that lengths of stay are long – almost one third of travellers stay overseas for a month or longer, particular those travelling to Europe (Table 3.18). • Travel overseas by Australians does not demonstrate a strong seasonal trend. Short-term forecasts predict a continual rise in numbers of Australians travelling overseas, particularly as the Australian dollar makes foreign destinations competitive with domestic distinations. Also, some of the factors that kept Australians at home in previous years – the Sydney Olympics and the outbreak of foot and mouth disease in the UK – are less relevant. In the longer term, the Tourism Forecasting Council predict an annual growth rate of 2.9% for outbound travel between 2001 and 2012 giving a total of 4.6 million trips in 2012. Case study The impact of September 11th 2001 terrorist attacks, the Ansett collapse and the 2002 Bali bombings on Australia’s tourism demand September 11th and the collapse of Ansett There is no doubt that the twin events of the September 11th terrorist attacks and the collapse of Australia’s second airline, Ansett, also in September 2001, were




23

two significant and related shocks to the tourism sector in Australia, with a consequent impact upon the demand for tourism in Australia. This is because the September 11th attacks severely impacted upon international demand, whilst the collapse ofAnsett had major repercussions for domestic demand. In response, the Prime Minister of Australia established a ‘Tourism Industry Working Group’ (TIWG) to assess the impacts of September 11th and the Ansett collapse and to make recommendations for recovery strategies. The impact International arrivals were affected immediately following September 11th with a decline of 12% of international arrivals in September 2001 compared to 2000. 2001 September October

November December

Monthly % change (international arrivals) –3.6 –10.8 –3.6 +13.4

2002 January

–1.6

February

+2.1

March

+5.1

Taking a longer-term comparison, it appears that October and November 2001 were the months most affected. Clearly, these dramatic falls in international arrivals had severe economic effects. Overall, the TIWG estimated that Australia’s GDP declined by 0.6% in the final quarter of 2001, a loss of AU$1 billion to the economy. In addition, the December quarter for 2001 demonstrated a 15% decline in exports and 0.3% decline in employment (including Ansett employees). Whilst the greatest impact was felt in that quarter, it is estimated that the effects will be felt for up to two years after the events. Most tourism indicators declined in the final quarter of 2001, but recovered in the first half of 2002. Although it is possible to discern clearly the impact of these events on tourism in Australia, it must be remembered that immediate comparisons to tourism in September 2000 are problematic as this was an atypical year due to the Sydney Olympics and introduction of the Goods and Services Tax. In terms of the accommodation sector, occupancy rates fell slightly in September 2001, but by less than 5% and the decline continued throughout the quarter. Effectively, the higher the star rating of the establishment, the greater was the impact of September 11th and the collapse of Ansett – serviced apartments and



Part I: Australia

24

motels were less affected. Similarly takings were also down in the final quarter of 2001, by an average of around 4%. The collapse of Ansett saw the rise of domestic airfares across Australia – averaging 4% – as well as the imposition of levies on airfares to assist Ansett employees and to cover extra insurance charges following September 11th. In addition, Ansett’s demise left bad debts across the industry. On the international scene, Qantas began reducing services on some routes. For the sector as a whole, the following parts of the tourism industry bore the greatest impact of the two events: • businesses based in metropolitan areas; • larger businesses; • the transport, intermediaries and accommodation/food and beverage sectors; • businesses in the leisure sector; and • casual staff. The response In response to these events, the TIWG recommended that: • Australia seize the opportunity to promote itself as a safe haven; • Government support be provided to encourage visitation to regional Australia; and • a range of incentives and packages for tourism businesses and the aviation sector should be initiated. Responding to these recommendations, the Australian Tourist Commission began aggressive promotional campaigns. The markets most affected initially were the USA and New Zealand, whilst some markets actually grew – the UK, Japan, Singapore and China. The impact of the Bali bombings The Bali bombings of October 2002 severely impacted on Australians travelling to Indonesia, with cancellations occurring immediately. The Commonwealth Department of Tourism states that the impacts include: • travel agents with high exposure to Bali outbound have been most affected; • Qantas redirected Bali aircraft to domestic tropical/beach destinations and the South Pacific; and • some reorientation of cruise liners away from South East Asian ports to Australia.




25

Australians who, prior to the October bombings, were intending to travel to Indonesia changed their destination but not their intention to travel. In other words, they substituted other destinations for Bali, including: • • • •

Queensland resorts in Australia; other destinations in Australia and New Zealand; the Indian Ocean islands; and the Pacific Island resorts of Fiji, Vanuatu, Cook Islands, Hawaii and French Polynesia.

Australian Tourist Commission market intelligence is suggesting that while there have been few cancellations for travel to Australia in markets such as China, Korea and Taiwan, some markets are more wary of Australia’s close proximity to Bali and the potential for terrorist attacks in Australia. Both Germany and Japan, for example, issued travel warnings to their nationals in relation to Australia as a result of the Bali bombings.

Table 3.1 Inbound visitors to Australia, 1991–2002 Year

Number of visitors

Change (%)

4,768,294

2.5

2000–01

n.y.a.

n.y.a.

1999–00

4,651,785

8.5

1998–99

4,288,027

1.6

1997–98

4,220,005

–0.8

1996–97

4,252,654

7.2

1995–96

3,966,161

12.2

1994–95

3,535,265

11.6

1993–94

3,168,961

13.8

1992–93

2,785,597

10.6

1991–92

2,519,712

13.1

2001–02

Source: Australian Bureau of Statistics (2003) Note: n.y.a = data not yet available due to delays in processing passenger card data by the Department of Immigration and Multicultural and Indigenous Affairs following a change in the method of data collection



Part I: Australia

26

Table 3.2 Inbound visitors to Australia by purpose of visit, 2001–2 Purpose of visit

Number of visitors (’000)

% of visitors

Business

563.8

11.8

Holiday

3151.2

66.1

79.3

1.8

Employment Education

211.6

4.4

Other

762.4

15.9

Total

4768.3

100%


Table 3.3 Inbound visitors to Australia by average length of stay and nights in Australia, 1999 Country of origin New Zealand

Average length of stay

Total nights in Australia

Total visitors (’000)

% of visitors

15

9,652

660.8

15.95

Japan

14

8,961

662.5

15.99

Hong Kong

25

3,232

127.9

3.09

Singapore

21

4,836

234.1

5.65

Malaysia

30

3,794

126.5

3.05

Indonesia

39

3,208

82.4

1.99

Taiwan

25

3,391

133.6

3.22

Thailand

36

2,030

55.7

1.34

Korea

32

3,195

100.1

2.42

China

53

4,596

87.5

2.11

Other Asia

47

4,747

101.8

2.46

United States

22

8,606

392.5

9.47

Canada

40

3,037

75.2

1.82

United Kingdom

36

18,109

508.9

12.28

Germany

31

4,373

140.0

3.38

Other Europe

41

15,892

388.5

9.38

Other countries Total

24 31 nights

Source: Bureau of Tourism Research (2000)


6,454

265.1

108,113

4143.1

6.40 100



27

Table 3.4 International visitors to Australia by country of residence, 2001–2 Country of residence


% of visitors

New Zealand

787.7

16.5

Other Oceania

119.8

2.5

Germany

136.8

2.9

United Kingdom

627.1

13.2

Other Europe

408.4

8.6

Indonesia

94.7

2.0

Malaysia

154.3

3.2

Singapore

295.8

6.2

Hong Kong

148.6

3.1

Japan

659.2

13.8

Korea

181.1

3.8

Taiwan

99.1

2.1

Other Asia

373.7

7.8

United States of America

424.4

8.9

Other America

126.7

2.7

Middle East and North Africa

56.3

1.2

Other Africa

72.7

1.5

Not stated Total

2.0

*

4768.3

100%


Table 3.5 Inbound visitors to Australian States/Territories, 1999 State/Territory

Total visits (’000)

% of visits

New South Wales

2616.2

36.1

Victoria

1113.4

15.3

Queensland

1984.0

27.3

South Australia

319.1

4.4

Western Australia

543.9

7.5

98.1

1.4

Northern Territory

367.7

5.1


210.5

2.9

7252.9

100%

Tasmania

Total visits to States/Territories Source: Bureau of Tourism Research (2000)



Part I: Australia

28

Table 3.6 Inbound visitors to Australia, Top 20 tourism regions visited, 1999 Region visited 1. Sydney, NSW


% of visitors

2275.6

55.5

2. Melbourne, VIC

997.7

24.4

3. Gold Coast, QLD

875.8

21.4

4. Tropical North QLD

755.8

18.4

5. Brisbane, QLD

704.4

17.2

6. Perth, WA

519.2

12.7

7. Adelaide, SA

296.8

7.2

8. Petermann, NT

254.8

6.2

9. Alice Springs, NT

211.1

5.2

10. Sunshine Coast, QLD

199.6

4.9

11. Whitsunday Islands, QLD

197.7

4.8

12. Northern Rivers, NSW

182.6

4.5

13. Canberra, ACT

180.7

4.4

14. Darwin, NT

179.2

4.4

15. Hervey Bay, QLD

177.9

4.3

16. Northern, QLD

146.3

3.6

17. Fitzroy, QLD

121.2

3.0

18. Western, VIC

107.7

2.6

19. Kakadu, NT

98.9

2.4

20. Hunter, NSW

88.4

2.2

4096.7

100%

Total

Source: Bureau of Tourism Research (2000) Note: NSW = New South Wales; VIC = Victoria; QLD = Queensland; SA = South Australia; WA = Western Australia; NT = Northern Territory; ACT = Australian Capital Territory.




29

Table 3.7 Inbound visitors to Australia by demographic characteristics, 1999 Age (years)

% of visitors

< 15

7

15–19

5

20–24

9

25–29

13

30–34

11

35–39

9

40–44

9

45–49

8

50–54

8

55–59

7

60–64

5

65+

8

Total

100%


Table 3.8 Australian domestic visitors and visitor nights, 2001 Destination

Visitors

Visitor nights

(’000)

%

(’000)

%

New South Wales

26,543

36

89,447

31

Victoria

18,142

24

55,747

19

Queensland

16,275

22

75,002

26

South Australia

5,529

7

19,508

7

Western Australia

6,698

9

28,068

10

Tasmania

1,852

2

7,970

3

Northern Territory

1,063

1

7,174

2

Australian Capital Territory Total*

2,107 74,585

3 100%

5,749 289,644

2 100%

Source: Bureau of Tourism Research (2002) Note: * = Components may not add to total as overnight visitors may visit more than one State/Territory on trip



Part I: Australia

30

Table 3.9 Australian domestic overnight visitors, Top 20 regions visited, 2001 Region visited

Number of visitors

% of visitors

1.

Sydney, NSW

8,355

11

2.

Melbourne, VIC

6,419

9

3.

Brisbane, QLD

4,514

6

4.

Gold Coast, QLD

3,542

5

5.

Hunter, NSW

2,835

4

6.

South Coast, NSW

2,657

4

7.

Perth, WA

2,503

3

8.

North Coast, NSW

2,494

3

9.

Adelaide, SA

2,286

3

10.

Sunshine Coast, QLD

2,242

3

11.

Canberra, ACT

2,107

3

12.

Explorer Country, NSW

1,919

3

13.

Northern Rivers, NSW

1,843

2

14.

Western, VIC

1,694

2

15.

Big Sky Country, NSW

1,565

2

16.

South West, WA

1,457

2

17.

Central Coast, NSW

1,395

2

18.

Peninsula, VIC

1,347

2

19.

Tropical North, QLD

1,325

2

20.

Darling Downs, QLD

1,221

2

74,585

100%

Total

Source: Bureau of Tourism Research (2002) Note: NSW = New South Wales; VIC = Victoria; QLD = Queensland; SA = South Australia; WA = Western Australia; NT = Northern Territory; ACT = Australian Capital Territory.

Table 3.10 Australian domestic tourism interstate and intrastate by purpose of visit, 2001 Purpose of visit

Interstate trips (’000)

Intrastate trips Total trips (’000) (’000)

%

Holiday

9,326

24,766

32,490

43.56

Visiting friends and relatives

6,848

18,200

24,474

32.81

Business

7,233

8,263

15,014

20.13

Other

1,142

3,179

4,133

5.54

Total

22,358

52,047

74,585



100



31

Table 3.11 Australian domestic tourism transport, 2001 Tourism transport

Interstate (’000)

%

Air

11,654

46.6

Private vehicle

11,153

44.6

Other transport Total

2,205 22,538

Intrastate (’000)

%

Total (’000)

%

1,967

3.7

13,007

17.43

47,669

88.1

56,669

75.97

8.8

4,460

100

52,047

8.2

6,428

100

74,585

8.61 100

Source: Bureau of Tourism Research (2002) Note: Components may not add total as visitors may have used more than one form of transport on their trip

Table 3.12 Australian domestic tourism demographics, 2001 Age (years)

Number of visitors (‘000)

% of visitors

15–24

13,786

18.2

25–44

30,050

40.0

45–64

23,286

30.9

7,462

9.9

74,585

100%

65+ Total Source: Bureau of Tourism Research (2002)

Table 3.13 Day visitors by Australian State/Territory visited by main purpose of visit, 2001 Day visitors

Leisure (% of trips)

VFR (% of trips)

Business Other (% of (% of trips) trips)

Total visitors (’000)

%

New South Wales

34

37

35

35

50,676

34.71

Victoria

25

28

31

26

38,582

26.42

Queensland

20

15

14

19

25,735

17.63

South Australia

8

7

7

7

11,177

7.66

Western Australia

8

9

7

8

12,288

8.42

Tasmania

3

3

4

3

4,863

3.33

Northern Territory

1

*

1

*

768

0.54


1

1

2

1

1,920

1.31

Total Total visitors

100%

100%

100%

100%

–

76,511

42,360

13,444

13,693

146,008

Source: Bureau of Tourism Research (2002) Note: * = less than 1%


– 100


Part I: Australia

32

Table 3.14 Day visitors by Australian State/Territory visited by main transport used, 2001 Day visitors (’000)

Air transport No.

Private vehicle

Other transport

Total

%

No.

%

No.

%

No.

%

New South Wales

379

31

44,589

34

5,708

49

50,676

35

Victoria

245

20

35,578

27

2,758

24

38,582

26

Queensland

205

17

23,746

18

1,783

15

2 5,735

18

South Australia

139

11

10,644

8

394

3

11,177

8

Western Australia

79

6

11,486

9

723

6

12,288

8

Tasmania

47

4

4,647

3

169

1

4,863

3

Northern Territory

28

2

720

1

19

*

768

1

94

8

1,682

1

144

1

1,920

1

Australian Capital Territory Total

1,217

133,091

11,700

146,008

Source: Bureau of Tourism Research (2002) Note: * = less than 1%

Table 3.15 Australians travelling abroad, 1991–2002 Year

Number of visitors

Change (%)

2001–2

3,367,870

1.1

2000–1

n.y.a.

n.y.a.

1999–0

3,332,258

4.5

1998–9

3,188,692

5.2

1997–8

3,031,897

6.9

1996–7

2,837,207

8.1

1995–6

2,624,359

8.4

1994–5

2,421,983

5.1

1993–4

2,303,964

0.2

1992–3

2,299,504

5.8

1991–2

2,173,453

2.7

Source: Australian Bureau of Statistics (2003) Note: n.y.a = data not yet available due to delays in processing passenger card data by the Department of Immigration and Multicultural and Indigenous Affairs following a change in the method of data collection.




33

Table 3.16 Australian outbound tourism by main destination, 2001–2 Destination


% of visitors

Fiji

113.3

3.4

New Zealand

592.2

17.5

Other Oceania

138.2

4.1

Italy

70.8

2.1

United Kingdom

308.0

9.1

Other Europe

305.9

9.1

Indonesia

270.9

8.0

Malaysia

109.5

3.3

Philippines

58.3

1.8

Singapore

163.2

4.9

Thailand

163.4

4.8

China

121.3

3.6

Hong Kong

142.0

4.2

Other Asia

303.7

9.1

United States of America

276.0

8.2

Other America

94.8

2.8

Middle East and North Africa

77.0

2.3

Other Africa

56.8

1.7

2.5

*

Not stated Total

3,367.9

100%

Source: Australian Bureau of Statistics (2003) Note: * = less than 1%

Table 3.17 Australian outbound visitors by purpose of visit, 2001–2 Purpose of visit


% of visitors

Business

674.2

20.0

Holiday

2,294.4

68.1

Employment

98.2

2.9

Education

46.6

1.4

Other

254.4

7.6

Total

3,367.9

100%




Part I: Australia

34

Table 3.18 Australian outbound tourism by average nights and expenditure, 2001 Main destination

Visitors (%)

Average nights per trip

Average expenditure per trip (AU$)

United Kingdom & Ireland

10

43

7836

Other Europe

10

40

7125

New Zealand

16

12

2138

USA & Canada

13

27

7573

Hong Kong

5

14

3103

Singapore

5

11

3349

Malaysia

4

17

3129

Indonesia

8

14

2967

5

18

3992

Other Asia

Thailand

11

23

4080

Other countries

13

19

3795




Chapter 4

The Organisation of Tourism in Australia CHRIS COOPER AND LISA RUHANEN

Introduction The complex nature of tourism has led to a myriad of organisations and structures involved in Australian tourism, sprawling across government, industry and non-profit making sectors. This chapter classifies the organisation of tourism in Australia into: • • • • •

the public sector; joint public andprivate sector bodies; industry bodies; professional associations; and trade unions.

The Public Sector The Commonwealth Government It was not until the late 1920s that the Commonwealth Government first began attracting international travellers to Australia. The promotion of Australia was seen as a means of stimulating development, migration and increasing export earnings (Piesse, 2002). This partly explains the conundrum that on the one hand under the Constitution of the Commonwealth the government has no direct powers to regulate travel and tourism, whilst on the other hand; it does have powers in respect of: • matters related to freedom of trade and intercourse between States and Territories; • publicising Australia abroad and the promotion of visitor traffic as an external trade activity; and • the administration, development and promotion of travel and tourism to and within the States and Territories of Australia. 35


Part I: Australia The Organisation of Tourism in Australia


Part I: Australia

36

In other words, the prime roles of the Commonwealth Government are overseas promotion and the facilitation and coordination of tourism in Australia. Nonetheless, with the above exceptions, tourism is not specifically mentioned in the Australian Constitution. This means that tourism policy and actions are undertaken in allied areas such as immigration or customs (Hall, 1998). It also means that there is scope for duplication of activity particularly as State and Territory governments, local governments and the private sector also have considerable responsibility and influence in tourism matters. Nonetheless, the tourism sector is seen as having the potential to provide a solid base for employment and wealth creation especially in regional Australia and it is increasingly viewed as a priority area for government.

Tourism policy The 1990s saw a number of federal tourism strategy initiatives and the appointment of a tourism minister to the cabinet. The situation in 2003 is that the Department of Industry, Tourism and Resources (DITR) houses the Tourism Division, which coordinates policy and action plans whilst the Australian Tourist Commission (ATC) is responsible for tourism marketing, funded by the Commonwealth Government with contributions from the tourism industry. In an attempt to reduce the confusion of government responsibilities alluded to above, the division of responsibilities between the Commonwealth and State governments was set up under the ‘Statement of Government Objectives and Responsibilities in Tourism’ in the Tourist Minister’s Council Agreement of 1976. Under this agreement the Commonwealth has the responsibility for international tourism and the formulation and implementation of policies, which apply, at the national level. Table 4.1 summarises tourism policy initiatives. Tourism policy in the 1990s was shaped by the 1992 document ‘Tourism – Australia’s Passport to Growth’. It had three clear aims: (1) To provide a clear statement of the Commonwealth Government’s objectives for the future development of the tourism industry. (2) To provide a sound basis for the formulation of government tourism policy and industry planning during the 1990s. (3) To enhance community awareness of the economic, environmental and cultural significance of the tourism industry. Since 2000, the two important tourism policy initiatives are: (1) The 10-year Plan for Tourism. In 2002, the DITR issued a ‘10- year plan for tourism’ discussion paper seeking a broad range of views on the future development of tourism in Australia. The plan aimed to address the issues surrounding growth forecasts for tourism in Australia, and address options of achieving sustainable growth in the industry and regions. The paper sought responses



The Organisation of Tourism in Australia

37

to issues identified by the Department. Responses were received from a very broad range of stakeholders and collated into a Green Paper released in 2003. The key areas of concern identified by the stakeholders included: (a) tourism information and research; (b) sustainability of tourism destinations and companies; and (c) marketing. Key areas of policy initiatives in the Green Paper include: • • • •

forecasting and market targeting; tourism research; the aviation industry; and tourism education and training.

(2) The Regional Tourism Programme. This is a major policy initiative to support the development of tourism in the Australian regions through the funding of regional tourism projects. The policy environment for tourism has changed post-September 11th 2001. The DITR has focused activity on the recovery of the sector and re-establishing Australia’s inbound markets. Important initiatives here include implementing the recommendations of the Tourism Industry Working Group, which was set up with the specific objective of putting a recovery plan together: • an AU$20 million short-term structural adjustment package for the tourism sector, including an AU$150 holiday rebate to the public and assistance to small businesses impacted by the collapse of Ansett; • AU$5 million funding for the travel compensation fund (matched by States and Territories); • AU$24 million extra marketing funding for the Australian Tourist Commission for international marketing; and • AU$8 million for the domestic ‘See Australia’ marketing campaign to encourage domestic tourism.

Tourism agencies and committees Australian Standing Committee on Tourism (ASCOT) (http://www.industry.gov.au) ASCOT is the forum for senior tourism officials to discuss issues at an operational level. Decisions taken by ASCOT are then passed to the Tourism Ministers Council for consideration. ASCOT comprises representatives of the relevant Ministers´ departments, the Australian Tourist Commission and the Bureau of Tourism Research. ASCOT’s main objective is to improve cooperation and coordination of government policies and activities as they affect tourism.



Part I: Australia

38

Australian Tourist Commission (ATC) (http://www.atc.net.au) The ATC is a statutory authority established in 1967 to promote Australia overseas and to encourage domestic tourism. The ATC is governed by a Board that reports to the Minister for Small Business and Tourism. In 1987, under the Australian Tourist Commission Act, the ATC’s role was widened to include ensuring that Australian residents benefited from international visitation and that Australia was protected from the adverse environmental and social impacts of international tourism. In other words, the ATC looks beyond tourist volume to also ensure that Australia attracts high yield visitors and takes into account the wider agenda of sustainable tourism development. This has led to the formulation of the mission of the ATC: ‘to market Australia internationally to create a sustainable advantage for our tourism industry – for the benefit of all Australians’. The ATC’s principle objectives under the Australian Tourist Commission Act 1987 are to: • increase the number of visitors to Australia from overseas; • maximise the benefits to Australia from overseas visitors; and • in meeting these objectives, work with other relevant agencies to promote the principles of ecologically sustainable development and raise awareness of the social and cultural impacts of international tourism in Australia. The ATC is jointly funded by the Australian government and the tourism industry. The ATC works in partnership with other stakeholders – the private sector and State and Territory tourism authorities. The ATC has five corporate objectives: (1) Marketing. To position Australia as the chosen destination in all major markets by creating awareness and desire to travel to Australia. (2) Product Development and Distribution. To seek to influence all elements of the marketing variables that are involved in converting desire to travel into positive action. (3) Strategic Marketing Research. To use market research to develop competitive and professional marketing programmes, provide visitor arrival targets and to evaluate programmes to ensure their effectiveness. (4) Environmental and Social. To promote and encourage ecologically sustainable tourism development, increase the awareness and respect of international tourists and tour operators for Australia’s natural, cultural and social environment and to assess the impact of major changes in inbound tourism. (5) Corporate Direction and Support. To maximise the ATC’s achievements through effective corporate management and support and by ensuring that policymakers and the wider community appreciate the benefits to Australia of inbound tourism.




39

Bureau of Tourism Research (BTR) (http://www.btr.gov.au) The BTR was established in 1987. It is a joint State and Commonwealth Government non-statutory agency which collects, analyses and disseminates information about the Australian tourism industry to the general public, government and industry. The BTR is jointly funded by Commonwealth, State and Territory Governments and by the sale of research services, statistical data and publications. It reports directly to the Minister for Small Business and Tourism. The BTR conducts a variety of research activities including: • the design, administration, management and analysis of ongoing surveys of international and domestic tourists; • the design, administration, management and analysis of one-off surveys; • the publication and marketing of results of research on current and emerging issues in tourism; and • the publication and marketing of survey data and other tourism related information. In 2002, the government reviewed the BTR and it was decided that it should continue as a centralised research agency. It was recommended that a management committee be formed to oversee the activities of the BTR. In 2003 it was under further review under the Commonwealth Government’s Tourism Green Paper discussions (Table 4.1). Department of Industry, Tourism and Resources (DITR) (http://www.industry. gov.au) The Commonwealth Government discharges its tourism responsibilities through the DITR, and specifically through the Tourism Division and the Commonwealth Minister responsible for tourism – the Minister for Small Business and Tourism. The Tourism Division is responsible for developing, implementing and administering Commonwealth Government policy and programmes relating to the tourism sector. The division contributes to the development of a sustainable, internationally competitive and innovative Australian tourism sector, and is structured into teams, which deliver the required policy outcomes, outputs and activities. Indigenous Tourism Leadership Group (ITLG) (http://www.industry.gov.au) The group was established in 2000, to leverage and deliver a range of outcomes to help realise the potential of indigenous tourism in Australia. It is a whole of government initiative supported by DITR. The group has established a national Aboriginal tourism accreditation scheme – ‘Respecting Our Culture’. Tourism Training Australia (TTA) (http://www.tourismtraining.com.au) TTA was established in 1982 to develop a flexible and effective training system for the tourism and hospitality industry. The organisation brings together a large



Part I: Australia

40

number of training partners, including industry, government, unions, private and public training providers, industry associations, universities and students/trainees. It is supported by a network of State tourism training organisations. The main activities of Tourism Training Australia are: • managing the development and implementation of national training system initiatives such as National Training Packages and New Apprenticeships; • ensuring industry quality standards are met by promoting the Australian Hospitality Review Panel and Australian Tourism Training Review Panel industry recognition systems; • providing recognition of prior learning and current competence; • organising conferences, seminars and awards to exchange ideas for increasing training and service excellence; • liaising with training providers to improve training strategies and industry access to training; • developing training products and resources to assist in the delivery of quality training; • initiating and undertaking national projects which improve employment and training opportunities; • supporting a national training network that provides assistance and advice in each State and Territory; • assessing current and future workforce needs; • advising government and other organisations on industry training needs, strategies and plans; and • promoting the benefits of training to industry and key stakeholders. Tourist Ministers Council (TMC) (http://www.industry.gov.au) The TMC is a consultative forum comprising Australian tourism ministers (Commonwealth, State and Territory) and New Zealand ministers of tourism. It meets annually. Ministers responsible for tourism attend TMC meetings. The council involves Portfolio Ministers from the Commonwealth, each State and Territory and New Zealand. Representatives from Norfolk Island and Papua New Guinea hold observer status. The TMC operates in conjunction with the Australian Standing Committee on Tourism (ASCOT).

Other related public sector agencies: Environment Department of the Environment and Heritage (Environment Australia) (http://www. ea.gov.au) Environment Australia advises the Commonwealth Government on policies and programmes for the protection and conservation of the environment, including both the natural and cultural heritage. Through its portfolio of activities it aims to




41

achieve a number of outcomes, including: matters of national environmental significance are protected and conserved; ensuring that Australia benefits from meteorological and related sciences and services; and Australia’s interests in Antarctica are advanced. Relevant to the tourism sector, the Environment and Heritage portfolio includes: • The Australian Heritage Commission (AHC) (http://www.ahc.gov.au) The AHC was established in 1975 to protect Australia’s national estate. The responsibilities of the commission are to advise government, prepare and maintain a register of national estate places; and develop programmes of research and education. The national estate represents places with aesthetic, history, and scientific or social significance. • Parks Australia (http://www.ea.gov.au/pa) Parks Australia is located within Environment Australia. As an agency it assists the director of national parks in the implementation of the Environment and Protection Act 1999, particularly through the management of seven land-based Commonwealth national parks, reserves and conservation zones, including Kakadu National Park and Ulurhu Kata Tjuta National Park. • The Bureau of Meterology (BOM) (http://www.bom.gov.au) The BOM commenced operations as a federal agency in 1908. The Bureau provides overall national strategic planning, management and coordination of the weather, climate and hydrological monitoring services in each of the state and territory capitals, and the regional forecasting and flood warning centres. • The Great Barrier Reef Marine Park Authority (GBRMPA) (http://www. gbrmpa.gov.au) The GBRMPA is the lead agency for the management and development of the Great Barrier Reef World Heritage Area. The authority is charged with balancing conservation principles and reasonable human use to ensure the survival of the reef for future generations. • The Sydney Harbour Federation Trust (http://www.harbourtrust.gov.au) The Sydney Harbour Trust was established by the Commonwealth Government to plan for the future use of unique land in Sydney Harbour. The aim of the trust is to conserve the cultural heritage and protect the environment while providing public access. Environment Protection and Heritage Council (EPHC) (http://www.ephc.gov.au) The EPHC was formed following changes to natural resource and environment related Ministerial Councils agreed by the Council of Australian Governments (COAG) in 2001. EPHC was created by amalgamating the National Environment Protection Council (NEPC), the environment protection components of the Austra-



42

Part I: Australia

lian and New Zealand Environment and Conservation Council (ANZECC), and Heritage Ministers’ Meetings. The EPHC’s responsibilities include environmental protection and heritage (natural, historic and indigenous heritage). Amongst its environmental protection responsibilities are the protection of air, water and soil quality; improving the environmental performance of Australian industry, and international aspects of environment protection. Under its heritage responsibilities the EPHC monitors world and national heritage listings and management; the national heritage policy and the legislative framework for heritage protection.

Other related public sector agencies: Sport and Recreation Australian Sports Commission (ASC) (http://www.ausport.gov.au) The ASC is responsible for implementing the Commonwealth Government’s sport policy. It liaises with State and Territory governments and national sporting bodies. Department of Communication, Information Technology and the Arts (DCITA) (http:// www.dcita.gov.au) DCITA is responsible for developing and implementing policy in a number of areas including the arts, culture and sport. Sport and Recreation Training Australia (SRT) (http://www.srtaustralia.org.au) SRT Australia is a national industry training advisory board for the sport and recreation industries. It has regional counterparts and acts to advise government on training issues and develop training packages. Sport and Recreation Ministers’ Council (SRMC) (http://www.dcita.gov.au) The Council is a consultative forum for sport and recreation matters between the Commonwealth, State and Territory governments.

Other related public sector agencies: Transport Airservices Australia (http://www.airserves.gov.au) Airservices Australia was formed in 1995. It is a government-owned commercial authority responsible for the management of air traffic control over Australian airspace. Association of Australian and New Zealand Road Transport and Traffic Authorities (AUSTROADS) (http://www.austroads.com.au) AUSTROADS is the national association of road transport and traffic authorities. It provides strategic direction for the development, management and use of Australia’s road system through consultation and discussion with peak industry bodies.




43

Australian Bicycle Council (ABC) (http://www.dotrs.gov.au/abc/) The ABC is the national body that manages and coordinates the national Australian cycling strategy, 1999–2004. Australian Maritime Safety Authority (AMSA) (http://www.amsa.gov.au) AMSA is a largely self-funded government agency charged with adopting world best practice in the provision of maritime safety, aviation, marine search and rescue and marine environment protection. Australian Transport Council (ATC) (http://www.dotars.gov.au/atc) The ATC was established in 1993. It comprises Commonwealth, State, Territory and New Zealand Transport Ministers. The Council’s primary role is to review and coordinate various aspects of transport policy, development and administration. Australian Transport Safety Board (ATSB) (http://www.atsb.gov.au) The ATSB was created in 1999 and operates within the Department of Transport and Regional Services. It is operationally independent and undertakes best practice transport safety investigations. Transport safety is the responsibility of the States and Territories and the Commonwealth Government. For aviation, the Commonwealth has a primary constitutional role, whilst for road and rail this is shared with the States and Territories. Civil Aviation Safety Authority (CASA) (http://www.casa.gov.au) CASA was established in 1995. Its primary focus is delivering aviation safety to the Australian public. Commonwealth Department of Transport and Regional Services (DOTARS) (http:// www.dotars.gov.au) DOTARS develops and implements transport and infrastructure policy. The Department’s role is to encourage economic, social and regional development by developing Australia’s infrastructure, particularly through the integration of transport and regional development. International Air Services Commission (IASC) (http://dotars.gov.au/iasc The IASC was formed in 1992. It is an independent statutory authority responsible for the allocation of capacity and route entitlements negotiated under air services arrangements to existing and prospective Australian international carriers. National Maritime Safety Committee (NMSC) (http://www.nmsc.gov.au) The NMSC was established in 1997 as an intergovernmental committee to harmonise maritime safety legislation and practice across Australia. It has developed a national maritime safety strategy and works closely with the private sector.



44

Part I: Australia

National Road Transport Commission (NRTC) (http://www.nrtc.gov.au) The NRTC was established in 1991 to harmonise road transport legislation across the States and Territories of Australia and to reduce the environmental impact of road transport. It works closely with the private sector, police and motoring organisations. National Transport Secretariat (NTS) (http://www.nts.gov.au) The NTS was established in 2000 to assist State, Territory and Commonwealth governments on strategic transport issues of national significance cutting across transport modes and government jurisdictions.

State and Territory public sector tourism agencies At a regional level, tourism within Australia falls under the powers of the State and Territory governments. State and Territory support for, and participation in, the development of tourism grew rapidly in the mid to late 1950s in Victoria and Queensland, followed by Western Australia and the Northern Territory in the early 1960s. Subsequently all States and Territories have exercised their rights in respect of domestic tourism, and some have extended their activities to promotion abroad. Each State and Territory has a tourism-marketing agency and many States also have a government tourism department. Not surprisingly, in a country with a strongly federal system of government, the States and Territories have enjoyed much freedom to manage their own tourism affairs. The eight States and Territories have considerable powers in tourism, particularly domestic tourism, infrastructure and facilities and regulation and planning. The Statement of Government Objectives and Responsibilities in Tourism in the Tourist Minister’s Council Agreement of 1976 says that the States have prime responsibility for promotion and marketing of their attractions and the development of tourist facilities. Despite this, the responsibilities of the Commonwealth Government mirror many of the responsibilities of the States and Territories and there is considerable scope for duplication. Coordination of activity across the States and Territories is therefore almost impossible. Since the 1990s, the trend towards corporisation in the public sector organisation of tourism in the States and Territories has been ongoing. Each of the State/ Territory tourism agencies sees itself as a commercial organisation and in a facilitation role for the tourism sector. Some of the agencies have developed into sophisticated marketing organisations with powerful research, positioning and promotional tools that are focused on ‘brand creation’ (e.g. Tourism Queensland). The challenge for the future for these organisations will be to ensure that tourism is developed within a sustainable framework. Not only do the States and Territories have considerable tourism powers, but they also play a major role in related areas such as transport, sport and recreation




45

and the environment. For example, the majority of protected areas in Australia are those designated and managed by the States and Territories. Australian Capital Territory (ACT) (http://www.canberratourism.com.au) The ACT Government places substantial importance on tourism and has over the years put into place various marketing and development strategies to encourage tourism. Tourism is the responsibility of the Canberra Tourism and Events Corporation. Recent strategic initiatives include: • developing the destination by providing a number of strategies directed towards developing and promoting the ACT tourism experience; • developing the various components of the ACT tourism industry and looking at strategies for boosting their individual and collective appeal; • addressing issues of service in the tourism industry; and • developing regional tourism and using the State’s proximity to other major centres as a tool to promote the ACT as a broader region with wider appeal. New South Wales (NSW) (http://www.tourism.nsw.gov.au) Tourism is a substantial element of the NSW economy. Tourism NSW has a number of development planning and master planning initiatives. The most recent initiatives are: • ensuring NSW tourism destinations are managed sustainably, both in developed areas and in newly developing areas; • promoting a positive climate for tourism investment and enterprise in the tourism industry to physically improve the tourism product such as accommodation, attractions and tours; and • utilising the State’s natural resources and cultural heritage to increase the movement of visitors through and into regional and rural areas. Northern Territory (NT) (http://www.nttc.com.au) Tourism is significant economic sector in the NT, and is the responsibility of the NT Tourism Commission, which was established in 1979. The Commission has developed a corporate plan and recent activities include: • implementing a destination approach to tourism development as an alternative to the regional approach where destinations will be developed in line with consumer demand; • improving access to the Territory with strategies to further enhance air, cruise and drive transport; • focusing future tourism development priorities on nature-based and cultural tourism as identified through market research and industry consultation; and



Part I: Australia

46

• raising the standard and quality of tourism infrastructure particularly in the identified priority destinations. Queensland (QLD) (http://www.tq.com.au) Tourism is QLD’s most important economic sector. The sector is the responsibility of Tourism QLD, created from the former Queensland Tourist and Travel Corporation. Tourism QLD has both marketing and development powers and recent initiatives include: • facilitating regional (destination) development tourism priorities and initiatives; • encouraging increased private investment in tourism infrastructure and services; • developing plans, policies and practices for the sustainable growth of the nature based sector such as ecotourism, culture, native title and coastal management; • identifying, developing and promoting a diverse range of special interest and niche markets such as seniors and cultural heritage for State-wide marketing approaches; and • developing and marketing QLD in partnership with industry. South Australia (SA) (http://www.tourism.sa.gov.au) Tourism is the responsibility of Tourism SA, with very distinct marketing and development areas. Recent initiatives include: • enhancing and growing the State’s authentic experiences such as food and wine and the Murray River; • productive marketing of the State by targeting high yield tourists, developing the State as a backpacker destination and applying collaborative approaches to marketing; • achieving strategic policy, investment and development in infrastructure, accessibility and destination management; and • developing a strong professional and profitable industry through the use of research, technology, education and accreditation programmes. Tasmania (TAS) (http://www.tourismtasmania.com.au) Tourism, particularly domestic tourism, is vital to TAS’s economy. In 1997, Tourism TAS was given responsibility for the sector. Recent initiatives include: • a focus on matching TAS’s competitive strengths with the needs and desires of potential customers by building destination branding, researching markets and developing distribution networks;




47

• developing quality, export ready experiences, products and services for customers through best practice, industry training and education, investment and building community support for tourism; and • developing an integrated industry structure which clarifies roles and responsibilities of key stakeholders and the partnerships needed. Victoria (VIC) (http://www.tourismvictoria.com.au) Tourism organisation in VIC has undergone considerable change in the last 25 years. Tourism VIC is the managing agency. Recent initiatives include: • raising community awareness and support for the significance of tourism to the Victorian community; • accelerating the development of regional tourism through the continuation of successful marketing campaigns and encouraging greater dispersal of visitors throughout the regions; • developing demand-driven product development and attract investment; and • implementing an events strategy which will deliver increasing high yield tourism. Western Australia (WA) (http://www.tourism.wa.gov.au) Tourism is the largest earner of foreign exchange earnings in WA and the WA Tourism Commission was established to further develop and market tourism in the State. Recent initiatives include: • further emphasis placed on marketing to travellers with an environmental/ nature-based orientation; • utilising partnerships with industry and the Australian Tourist Commission to promote WA as a desirable holiday destination in the identified core and future international markets; • developing, attracting, supporting and managing events that are capable of generating substantial visitor expenditure and can cost-effectively market WA nationally and internationally; and • promoting, fostering and facilitating investment in and the development of new tourist infrastructure and products, and improving existing tourist facilities and services. Local government Despite a very well organised tourism sector at both federal and regional level, with a few exceptions, the organisation of tourism is weak at the local level. Nonetheless, local governments have considerable powers available for tourism, although these powers vary from State to State. The major destinations in Austra-



Part I: Australia

48

lia – Sydney, Melbourne, Brisbane and the Gold Coast have large marketing and development organisations, which again challenge the abilities to coordinate tourism throughout government in Australia. For example: • For Sydney, the tourism organisation is the Sydney Convention and Visitor Bureau (http://www.scvb.com.au). The aim of the Bureau is to ensure that Sydney’s market position as Australia’s premier tourism destination is maintained by capitalising on the exposure from the 2000 Sydney Olympics and developing the experiences offered by the city’s key precincts. • Melbourne’s tourism agency is VisitMelbourne (http://www. visitmelbourne. com). The agency aims to consolidate Melbourne’s tourism gateway status as Australia’s southern tourism hub. • For Brisbane the tourism agency is Brisbane Marketing (http://www. brisbanemarketing.com.au). They are seeking to increase the importance of the arts, leisure and culture through festivals and events to improve the economic and social wellbeing of the city. Other initiatives include enhancing visitor precincts through cooperative marketing and product development. • The Gold Coast is one of Australia’s largest tourism destinations with approximately 10 million visitors each year. Recent tourism initiatives include: – implementing a programme that encourages the development of a fresh, innovative tourism product and infrastructure that will reflect the desires of visitors to the city; – develop a world-class harbour that reflects economic, social and environmental best practice; and – implement an ongoing programme of tourism research (http://www. goldcoasttourism.com.au).

Public and Private Sector Bodies Cooperative Research Centre for Sustainable Tourism (CRC ST) (http://www. crctourism.com.au) The CRC ST was established as a tourism research company in 1997 under the Australian Government’s Cooperative Research Centres Programme to underpin the development of a dynamic, internationally competitive, and sustainable tourism industry. The objective of the programme is to deliver innovation, strategic knowledge and products to business, communities and government to enhance the environmental, social and economic sustainability of tourism. The CRC ST was refunded in 2002 with a new seven-year research programme that began in January 2004. It is also establishing research links with the APEC countries internationally.




49

Tourism Forecasting Council (TFC) (http://www.industry.gov.au) The TFC was established in 1993 to underpin decisions on policy, investment and planning. It comprises members of the tourist industry, construction and finance and government representatives. The TFC’s prime aim is to develop consensus forecasts of tourism. The forecasts include all tourism activity across all tourism sectors including domestic, international and outbound tourism.

Industry Bodies Many of the sectoral trade associations representing the tourism sector in Australia have a peak national body and a regional structure of organisations in each of the States and Territories. For example, the Australian Hotels Association has a national body based in Canberra, supported by strong regional associations. Until the demise of the national industry body – Tourism Council Australia, in late 2000, Australia was one of the few countries in the world that had an organisation that truly represented the total tourism sector. Since this organisation was disbanded, Australia’s remaining tourism industry bodies are fragmented and sector specific, reducing the effectiveness of the industry’s lobbying in government and media circles. However, each State and Territory now has its equivalent of Tourism Council Australia and in 2001 there was an initiative to form the ‘National Tourism Alliance’. Aboriginal Tourism Australia (ATA) (http://www.ataust.org.au) ATA is the peak body representing Aboriginal tour operators in Australia. ATA provides professional industry-focused indigenous representation to government and industry. A key function is the provision of a support network to indigenous operators within the industry. ATA provides policy advice and an indigenous perspective on tourism industry issues. Association of Australian Convention Bureau (AACB) (http://www.aacb.org.au) The AACB acts as a representative body for the convention bureaus of Australia and in conjunction with the Australian Tourist Commission promotes Australia’s convention facilities and services. Australasian Business Travel Association (ABTA) (http://www.abta.com.au) ABTA was established in 1995 to represent Australian and New Zealand private and public sector organisations in the pursuit of best practice business travel management. Australasian Incentive Association (AIA) (http://www.incentivemarketingassociation. org) The AIA was formed as a trade association in 1986 to enhance the effectiveness and quality of the incentive travel sector.



50

Part I: Australia

Australasian Railway Association (ARA) (http://www.ara.net.au) The ARA was founded in 1994 and is the peak industry body. The ARA represents the interests of both the private and public rail sectors and promotes a competitive rail industry. Australian Amusement Leisure and Recreation Association (AALARA) (http://www. aalra.com.au) AALRA is the peak national body representing the amusement, leisure and recreation sector. AALRA has particular responsibilities in the areas of safety, operations and management within these industries. Australian Bed and Breakfast Council (ABBC) (http://www. australianbedand breakfast.com.au) The ABBC provides national representation for the Australian Bed and Breakfast industry and has responsibility for over 1000 establishments. Australian Council of National Trusts (ACNT) (http://www.nationaltrust.org.au) Formed in 1965, the Council is the federal coordinating body of the Australian national trust movement. The movement began in New South Wales in 1945 and has a national Trust in every State and Territory. The Trusts’ main aim is to acquire, conserve and present for the public benefit lands and buildings of aesthetic, historic, scientific, social or other special values. Australian Entertainment Industry Association (AEIA) (http://www.aeia.org.au) The AEIA is the peak body for the arts and entertainment industry in Australia. The AEIA represents employers in commercial and subsidised organisations and covers all aspects of the industry including opera, ballet, sporting venues, casinos, comedy, events and promotion. Australian Farm and Country Tourism (AFACT) (http://www.farmwide.com.au) AFACT was established in 1987 as the national industry association to represent farm and country tourism in Australia. The primary role is to ensure farm and country tourism continues to achieve strong growth in the tourism marketplace. Australian Federation of Travel Agents Ltd (AFTA) (http://www.afta.com.au) AFTA is the representative body for Australia’s travel agents and represents the majority of travel agents in Australia. Founded in 1957, AFTA’s aim has been to stimulate, encourage and promote travel, and to uphold the interests of travel agents. AFTA provides financial, legal and marketing benefits, education and training, and develops policies and strategies critical to the retail travel sector. AFTA’s role as an industry watchdog ensures that the viewpoint of the travel agent is transmitted through media outlets and through lobbying activities.




51

Australian Hotels Association (AHA) (http://www.aha.org.au) The AHA was first established in 1839 to protect and develop the interests of Australia’s hotel industry. It is the means by which the hotel sector can be represented on a national basis in such matters as taxation, excise duty, industrial relations and tourism. The AHA is the national office, supported by branches in each State and Territory. Australian Tourism Export Council (ATEC) (http://www.atec.net.au) ATEC is the peak industry body for the Australian tourism export industry. It began as the Australian Incoming Tourism Operators Association in 1972, assuming its current title in 2000. Its primary aim is to optimise the success of its members to maximise the economic and social benefit of tourism exports for Australia. Business Events Council of Australia (BECA) (http://www.businesseventsaustralia. com) BECA is the peak industry body for the meetings, incentives and exhibitions industry in Australia. Ecotourism Association of Australia (EAA) (http://www.ecotourism.org.au) The Association was created in 1991 as the peak industry body for the Australian ecotourism industry. It has developed the nature and ecotourism accreditation programme (NEAP) and an EcoGuide programme. The association provides professional support for its members and acts as a lobby group. Exhibition and Event Association of Australia (EEAA) (http://www.eeaa.com.au) The EEAA represents all aspects of the exhibition and event industry and aims to promote professionalism and high standards in the industry. Festivals and Events Association (FEA) (http://www.fea.org.au) FEA is a professional industry body for event organisers which aims to promote the value of events to the broader community and provide a forum for sharing knowledge and expertise in the sector. Hotel, Motel and Accommodation Association (HMAA) (http://www.hmaa.com.au) HMAA is the major industry body representing the Australian accommodation sector, with over 2000 establishments from 5 Star Hotels and motels to Bed & Breakfast establishments in metropolitan and regional Australia. HMAA offers a range of services and opportunities which assist accommodation properties and corporate businesses in their day-to-day activities. HMAA supports its constituents through a network of key political and industry contacts and industrial relations advice. Inbound Tourism Organisation of Australia (ITOA) (http://www.itoa.org.au) The ITOA was established as the peak representative body of inbound tour operators in Australia.



52

Part I: Australia

International Cruise Council Australasia (ICCA) (http://www.cruising.org.au) The ICCA is an association of leading cruise lines dedicated to the expansion of awareness of cruising worldwide. Meetings Industry Association of Australia (MIAA) (http://www.miaanet.com.au) The MIAA is the trade association for the Australian meetings industry. It aims to foster professionalism and excellence in all aspects of meetings management and acts as an industry lobby group. Museums Australia (MA) (http://www.museumsaustralia.org.au) MA was established in 1993. It is the peak industry body for museums and galleries. The organisations acts as lobbyist for the sector and provides a range of professional services. National Tourism Alliance (NTA) (http://www.tourismalliance.org) The NTA was officially launched in October 2001. NTA’s role is to coordinate policy and representation on behalf of the Australian tourism industry. NTA’s priority is to maintain the visibility of the tourism industry to the Commonwealth Government and to coordinate the development of a National Tourism Policy. NTA members represent over 90% of tourism industry operators covering accommodation, airlines, car touring, inbound tourism, retail travel agencies, business tourism, meetings industry, farm and country tourism, youth hostels, retail, adventure operators and the caravan and camping industry. Natural Heritage Trust (NHT) (http://www.nht.gov.au) Established in 1997 the Trust assists community groups to restore and conserve Australia’s natural environment. The trust provides funding for environmental activities at the community, regional, state and national levels. Property Council of Australia (PCA) (http://www.propertyoz.com.au) The PCA provides leadership and advocates reform in the property investment sector through market information and the setting of standards. Restaurant and Catering Australia (R&CA) (http://www.restaurantcater.asn.au) The R&CA was incorporated in 1995 as the association representing and leading the national interests of restaurants and caterers. Sport Industry Australia (SIA) (http://www.sportforall.com.au) SIA is the industry association and national peak body for the sport and recreation industry in Australia. It was established in 1976 and acts as a lobby group for the industry and to contribute to the development of a society which recognises the benefits of sport participation.




53

Tourism Task Force (TTF) (http://www.ttf.org.au) The TTF was established in 1989 by a group of investors and financiers. It is a non-partisan organisation and its primary objectives are to: • protect and promote members’ interests to politicians and government officials; • deliver tools for well-informed investment decisions by the membership; • provide a forum for industry leaders to do business; • create a rational and sustainable business environment for members; • improve the investment environment for the tourism and transport industries; and • raise tourism’s profile through the media to extend the industry’s influence. Venue Management Association (VMA) (http://www.vma.org.au) The VMA was incorporated in 1992 to provide management practitioners of public assembly facilities with an organisation committed to the growth and success of the venue management industry.

Professional Associations Australian Licensed Aircraft Engineers Association (ALAEA) (http://www. alaea.asn. ac) The ALAEA represents the industrial, technical and professional interests of licensed aircraft maintenance engineers (LAMEs). The organisation includes in excess of 3000 LAMEs employed in regular public transport and regional airlines, and includes technical staff and other engineering support staff. Civil Air Operations Officers Association of Australia/The Australian Air Traffic Control Association (Civil Air) (http://www.civilair.asn.au) Civil Air aims to further the advancement of aviation within Australia and its Territories and protect the rights of its members. Club Managers Association Australia (CMAA) (http://www.cmaa.asn.au) The CMAA is registered as an industrial organisation of employees and represents 2500 professional managers of clubs. The Council for Australian Universities in Tourism and Hospitality Education (CAUTHE) (http://www.cauthe.com.au) CAUTHE was formed in the late 1980s and consists of 31 universities in Australia which teach and research in tourism and hospitality. The principal aim of the council is to promote the development of tourism and hospitality education and research in Australia.



54

Part I: Australia

Trade Unions As in many countries, there is no trade union that specifically aims to represent the Australian tourism sector. Rather, the appropriate unions represent individual sectors of tourism – transport, hospitality, the public sector, etc. This has led to fragmentation of representation in the tourism sector, a sector where workers’ rights are traditionally a low priority in most parts of the world. Australian Council of Trade Unions (ACTU) (http://www.actu.asn.au) The ACTU is the peak organisation representing the Australian workforce. The ACTU is made up of 46 affiliated unions and represents approximately 1.8 million workers. It includes trades, sales, clerical, technical and professional workers amongst its affiliated union membership. Australian Maritime Officers Union (AMOU) (http://www.amou.com.au) The AMOU was officially formed through the amalgamation of the Merchant Service Guild and the Australian Stevedoring Supervisors Association. The AMOU represents mariners as well as professional, administrative, supervisory and technical employees in the maritime industry and dependent services. Australian Services Union (ASU) (http://www.asu.asn.au) The ASU began operations following the amalgamation of the Federated Clerks’ Union (FCU), the Federated Municipal and Shire Council Employees Union (MEU), and the Australian Municipal, Transport, Energy, Water, Ports, Community & Information Services Union (ASU). The ASU is one of the largest unions in Australia with an estimated membership of 140,000. Amongst others it represents the interests of its members who work in local government, public transport, rail, airlines, shipping, travel and ports. Community and Public Sector Union (CPSU) (http://www.cpsu.org/index.html) The CPSU aims to defend workers in the public sector and the essential services provided to the community. The union represents 250,000 workers in telecommunications, broadcasting and public sector workers in Australia. Flight Attendants Association of Australia – Domestic/Regional Division and International Division (FAAA) (http://www.faaadomestic.org.au) The FAAA goal is to maintain and develop the working conditions as well as offering service and support to members. Liquor, Hospitality and Miscellaneous Workers Union (LHMU) (http://www. lhmu.org.au) The LHMU represents more than 150,000 workers. Hospitality and leisure workers are represented within the organisation, for those working in hotels, motels, restaurants, pubs, clubs, casinos, cafes, catering, tourism, leisure and theme parks.




55

Media, Entertainment and Arts Alliance (MEAA) (http://www.alliance.org.au) The alliance is a professional organisation for those working in the media, communications, entertainment, arts and sport industries of Australia. Rail, Tram and Bus Union (RTBU) (http://www.rtbu-nat.asn.au) The RTBU has 35,000 members in the rail, tram and government bus sectors across Australia. Shop Distributive and Allied Employees Association (SDA) (http://www/sda.org.au) The SDA is Australia’s largest trade union and represents more than 230,000 members. Some of the main areas of work covered by the SDA in the tourism sector are retail shop assistants, clerical employees, bakers and pastry cooks and fast-food workers. Transport Workers Union (TWU) (http://www.twu.com.au) The TWU has been in existence as a trade union for over 100 years, with membership of approximately 82,000, throughout Australia in the transport industry. From the tourism sector, the union represents workers in the aviation, road transport and passenger vehicles.



Part I: Australia

56

Table 4.1 Key tourism policy initiatives, Australia, 1975–2003 Year

Key policy document

1975

Australian Council Act Australian Heritage Commission Act Great Barrier Reef Marine Park Authority Act Tourism Policy

1982

Australia: Tourism in the 1980s

1983

Tourism Gets Australia Going

1987

Report of the Australian Government Inquiry into Tourism

1988

Directions for Tourism: Discussion paper Frontiers in Australian tourism: Tourism Policy (Liberal and National Party)

1989

IAC Report

1990

Arts, Environment, Tourism and Territories Legislation Amendment Act

1991

Cultural Tourism: Making it work

1992

Tourism – Australia’s Passport to Growth

1994

Creative Nation: Commonwealth Cultural Policy National Ecotourism Strategy National Rural Tourism Strategy

1995

Commonwealth Coastal Policy

1998

Tourism – A Ticket to the 21st Century

2000

National Online Tourism Strategy National Sports Tourism Strategy

2001

Regional Tourism Programme

2002

The 10-Year Plan for Tourism Discussion Paper

2003

10-Year Plan for Tourism Green paper

Source: Adapted from Whitford et al. (2001)



Chapter 5

The Australian Tourism Industry CHRIS COOPER AND LISA RUHANEN

Introduction The Australian tourism industry is complex, comprising many economic sectors and with a diverse range of enterprises (Table 5.1). Bonlin and Greenwood (2003) illustrate the scale of the industry, with tourism related businesses representing one-third of all businesses in Australia. However, whilst the strong involvement of the private sector is clear, only 11% of public sector entities are involved with tourism. In addition, the received wisdom that tourism is a sector of small businesses is confirmed with 91% of all businesses employing fewer than 19 people, and 62% employing fewer than five people. As would be expected, the tourism industry is focused upon the State and Territory capitals and the dominant tourism regions such as the Gold Coast. Australia’s natural features, landscapes and flora and fauna provide huge potential for the development of tourism and tourism products. The wealth of the natural resources of the continent is evidenced in the designation of National Parks and World Heritage areas. The opportunities for tourism in Australia are largely, but not entirely based on natural features; Australia also has capital cities, world class icons such as the Sydney Opera House, and an expanding array of cultural and heritage attractions. The strength of Australia lies in the management of its tourism resources with care taken to develop products such as ecotourism and adventure and strong government and industry based certification and legislation to minimise the impact of tourism on the environment.

Natural Attractions National parks and other protected areas In Australia, Commonwealth or State and Territory governments designate and manage national parks and other protected areas. Australia’s responsibilities can be summarised as ensuring the ‘effective’ conservation of biological diversity by adopting the World Conservation Union’s (IUCN) six level system of protected 57


Part I: Australia The Australian Tourism Industry


Part I: Australia

58

areas. The most commonly designated protected area is national park or nature reserve, representing over 500,000 square kilometres of Australia’s land. At the top tier of protection, 14 Australian sites have gained World Heritage listing under the 1975 World Heritage Convention (Table 5.2). Australia also has 13 biosphere reserves, designated as of international significance under UNESCO’s Man and the Biosphere initiative in 1971. Australia had 462 national parks in 1996/97 as well as 52,164 recreational parks and gardens, 270 wildlife sanctuaries, 42 tourist caves; and 24 marine parks. In total these parks employed 16,646 full-time equivalent positions in 1996/97 and received 3.3 million visitors. Marine protected areas For the marine environment Australia has developed an ‘Ocean’s Policy’ which also includes the management of marine protected areas. Martine protected areas can be designated at Commonwealth, State or Territory level – or as a cooperative arrangement as with the Ningaloo Marine Park with joint designation by the Commonwealth and Western Australian governments. In total 3.5% of Australia’s coastline is listed as protected. The Great Barrier Reef Marine Park is of international significance and a World Heritage Site. It is managed by the Great Barrier Reef Marine Park Authority (GBRMPA) to a 25-year strategic plan. Indigenous protected areas As part of the six level system of designation, the Indigenous Protected Areas Programme supports indigenous Australians to meet their cultural responsibility and to care for their lands and to pass on knowledge to future generations. The Uluru-Kata Tjuta National Park is an example here, managed through a Board of Management by indigenous peoples and Parks Australia.

Manmade and Heritage Attractions The Australian Heritage Commission and the various State and Territory National Trusts conserve and present Australia’s heritage attractions. Such attractions include buildings, townships, sites of historic events, wildlife habitats, ecosystems, landscapes and aboriginal places such as rock art sites, dreaming tracks, and ceremonial sites. The State and Territory National Trusts own around 300 properties and the Australian Heritage Commission lists almost 13,000 places, whilst the national trusts lists 20,474 sites of significance (Table 5.3). Significant heritage attractions include: • • • •

The Sydney Harbour Bridge; The Sydney Opera House; The Australian War Memorial; Richmond;



The Australian Tourism Industry

59

• Fremantle; • Adelaide Cathedral; and • Old Parliament House. Museums and art galleries In Australia, significant museum collections were developed in the States and Territories in the 19th century before many of the national institutions were established, hence there are a number of nationally significant museums in the regions. In total, Australia had over 2000 museums and galleries in 1999/2000: Museums

1389

Art galleries/museums

249

Historic properties

411

Total

2049

The significant national collections are: • • • • • •

The National Museum of Australia; The National Gallery of Australia; The Australian National Maritime Museum; The Australian War Memorial; The National Science and Technology Centre; and The National Portrait Gallery.

Museums and galleries attracted 27.5 million visitors in 1999. For the larger venues, approximately one-quarter of all visitors were international. The museums attracting the most visitors are the larger institutions, located in New South Wales and Victoria. As Canberra has a number of national institutions, its share of visits is higher than would be expected. The majority of organisations that manage museums and galleries are operated on a volunteer basis. Nonetheless the sector employed almost 7500 persons in 1999/2000. Botanic gardens, zoos and aquaria Australia had around 30 botanic gardens and 20 arboreta in 2001, with botanic gardens found in each capital city. They employ 1250 persons and are estimated to attract 11.8 million visits annually, with the six major gardens accounting for almost two-thirds of all visits. In Canberra the Australian National Botanic Garden received 330,000 visits annually. Of these visitors 25% are international. The first zoo in Australia was founded in 1857 in Melbourne. In 2001, Australia had 53 zoos and 12 aquaria, employing almost 2000 persons. They are located



Part I: Australia

60

throughout Australian capital cities and resorts and attracted over 5 million visits in 1999, of which just over 25% were international. Significant attractions are:

Botanic gardens • • • •

Australian National Botanic Gardens (Australian Capital Territory) Royal Botanic Gardens (New South Wales) Royal Melbourne Botanic Gardens (Victoria) Mt Coot-tha Botanic Gardens (Queensland)

Zoos • • • • • • • • •

Currumbin Wildlife Sanctuary (Queensland) Australia Zoo (Queensland) Lone Pine Koala Sanctuary (Queensland) Healesville Sanctuary (Victoria) Western Plains Zoo (New South Wales) Taronga Zoo (New South Wales) Victoria Open Range Zoo (Victoria) The Territory Wildlife park (Northern Territory) Monarto Zoological park (South Australia)

Aquaria • • • • •

Melbourne Aquarium (Victoria) Sydney Aquarium (New South Wales) Sea World (Queensland) Underwater World (Queensland) Reef HQ (Queensland)

Amusement and theme parks Major amusement and theme parks are defined as parks: • • • •

operated on a commercial basis; permanently based at a fixed site; multiple rides and attractions; and over 50, 000 attendees for the year.

In 2001 there were 30 large amusement/theme parks in Australia (excluding water parks) (Table 5.4). They employed 4150 persons (over half are casual employees) and attracted visitation of 8.9 million. The six largest parks accounted for 60% of




61

visits. Visitation is highly seasonal with 29% of all visits in the two summer months of December and January. The majority of income came from the sale of admission and ride tickets (56%), with other sources of income including merchandise, and food and beverage. The major expenditure by the parks is on labour costs (38%). The parks had an overall financial loss in 2001, a loss that was particularly pronounced for the larger parks. Four of the largest parks are located in Queensland and this State represents a high proportion of employment and income in the sector: • • • •

Dreamworld Seaworld Movieworld Wet and Wild Waterworld

Transport Australia’s geographical scale demands a major investment in transport infrastructure not only to support the tourism industry but also to ensure regional development and a competitive economy. Transport is an important element of the Australian economy and faces a number of challenges in the future including congestion, environmental impacts, safety, competition policy and energy depletion. The Australian government has embarked upon a major initiative to ensure that the land transport system faces these challenges successfully to the year 2020. This is known as the AusLink initiative and aims to sustain economic growth, development and transport connectivity at the regional and national scale. Air transport

Airports In 2001 there were 281 licensed airports in Australia and its external Territories (Table 5.5). The majority of licensed airports are owned and operated by local councils, State government departments and private companies. The remaining airports are owned and operated by the Department of Defence or leased by the Commonwealth to private sector companies or government corporations. Ten of Australia’s airports operate scheduled international flights. Australia’s main international airport gateways are: Sydney; Melbourne; Brisbane; Adelaide; Perth; Darwin; Cairns; Coolangatta; and Norfolk Island. In 2002, the Department of Industry, Tourism and Resources assembled a comprehensive security response following terrorism threats to Australia and the 2002 Bali bombing. In particular, from 2004 baggage screening for both domestic and international flights is being increased.



62

Part I: Australia

Airlines International carriers

As at 30 June 2001, Australia had air services agreements of full treaty status with 40 countries. Renegotiation of capacity and route rights has occurred under most of these to accommodate traffic growth on international routes to and from Australia. These agreements and arrangements enable airlines of Australia and its bilateral partners to operate a network of international air services to and from Australia. In 2000, 43 international airlines flew into Australia on scheduled routes (Table 5.6). In total overseas carriers represent two-thirds of international air traffic to and from Australia. In 2000, international air traffic into and out of Australia increased by 10.4% over 1999 – in part due to an increase in overseas carriers’ activities. However, following September 11th and subsequent world events, airline capacity to Australia fell significantly. This caused severe pressure on inbound capacity for some of Australia’s key markets – China, the USA, New Zealand and some European markets. In 2002, Qantas launched a new low cost airline ‘Australian Airlines’, to serve leisure traffic from Asia, based in Cairns, with routes to major Asian leisure destinations. Domestic carriers

In terms of the domestic market, the Australian air system was deregulated in 1990, with the result that budget carriers have been allowed to enter the market, though with mixed success – a number have entered the market but not succeeded. A notable exception here is Virgin Blue. In September 2001, Australia’s second domestic carrier, Ansett Australia, went out of business, leaving only Virgin Blue and Qantas to service the large domestic market. Ansett was a significant loss as not only had it been operating since 1936 in the domestic market and since 1993 internationally, but also it was Australia’s only airline in the STAR alliance. Aside from Qantas and Virgin Blue, which accounted for over 80% of passengers in 2000, a further 29 operators service about 200 airports in the domestic market. In 2000, domestic air movements increased by around 4%. As would be expected, the Sydney Olympics boosted arrivals to Sydney airport, whilst the adoption of Brisbane as the base for Virgin Blue also has boosted traffic at Brisbane airport. Virgin Blue utilise a fleet of Boeing 737s and has continued to expand its routes, particularly on the regional routes servicing secondary airports.

Surface Transport Sea As an island continent Australia has a number of seaports of varying sizes in each of the States and Territories (Table 5.7). The largest of these ports are in the capital cities and are capable of receiving large ships and cruise liners. Australia has never




63

had a large international cruise market by world standards primarily due to its location away from the major generating markets. However, Australian outbound cruising is popular with several vessels marketed almost exclusively to the Australian domestic market, generally conducting South Pacific cruises to destinations such as Fiji and Vanuatu. Australia does have a larger coastal cruising industry particularly on the Great Barrier Reef and on some of the larger river systems such as the Murray River in Southern Australia. The majority of Australia’s capital cities have a ferry transportation system due to their location on harbours and river systems. Sydney has one of the most extensive ferry networks in Australia which is utilised heavily by commuters and visitors alike. There are also a large number of ferry companies operating between the mainland and Australia’s islands, as well as on the trans-Tasman route. Road In 2001, Australia had 329,045 kilometres of concrete or bitumen roads and a further 479,249 kilometres of unsealed roads (Table 5.8). In 1999 there were almost 10 million private vehicles registered to Australians, 273,000 caravans and almost 66,000 buses and coaches (Table 5.9). In 2000, motor vehicles travelled a total distance of 180,782 million kilometres – an average of 15,400 kilometres per vehicle. Only 5.4% of the use of vehicles is interstate, with over 50% being represented by use in the capital cities of Australia. Surface transport is the dominant mode for domestic tourism and long-haul coach and bus services have grown significantly over the years since their deregulation. Rail Australia does not have a well-developed rail network and has the added complication of different track gauges for historical reasons. In comparison with over 800,000 kilometres of road in Australia, the rail network only totals 39,844 kilometres of track, carrying 629,000 passengers in 2000/2001, although passengers have been increasing each year over the last decade (Tables 6.10 and 5.11). The railways in Australia have encouraged entry by private companies and competition has increased as a result. From a tourism point of view, train transport in Australia has developed a number of themed train routes.

Hospitality Industries The Australian accommodation and food and beverage sector accounts for 4.5% of all Australian businesses. Cafes and restaurants The café and restaurant sector is an important contributor to the Australian economy. The most recent industry-wide survey was conducted by the Australian



Part I: Australia

64

Bureau of Statistics in 1999, at which time there were 12,845 employing businesses in the café and restaurant industry, with over one million seats available. This sector generated AU$7,174 million in income for this period and employed 152,107 persons, more than half of which were casual workers. Accommodation At the end of 2000, Australia’s accommodation stock comprised: • • • •

almost 200,000 rooms in establishments of more than 15 rooms or units; almost 30,000 holiday flats, units and houses with over 15 rooms; 466 visitor hostels; and 244,905 caravans, cabins or flats available in caravan sites.

The accommodation stock is varied, ranging from 5 Star hotels to ecolodges, small bed and breakfast establishments and caravan/camping parks. There is evidence of an increase in quality of accommodation with a reduction of bedspace in the lower categories, and serviced apartments are increasing in numbers. Geographically, the distribution of accommodation is concentrated at the Gold Coast and in the capital cities, with 78% of businesses in New South Wales, Victoria and Queensland. Accommodation stock has increased substantially since 1990 with major growth in Cairns, the Gold Coast and the Whitsunday’s, as well as in the Northern Territory and Western Australia.

Accommodation demand Demand for accommodation in Australia has been positively affected by major events such as the Sydney 2000 Olympics and the Goodwill Games in Brisbane in 2001. However, the Asian Currency Crisis and the terrorist attacks of September 11th have adversely affected international demand, but demand following both the September 11th attacks and the Sydney Olympics has been strong due to domestic demand, although room rates have fallen. Occupancy levels in 2000, for example, were: • 64% for hotels; • 53% for motels; and • 59% for serviced apartments.

Accommodation income and expenditure The majority of income for the accommodation sector comes from the provision of accommodation (60%), followed by 24% for the sale of food and beverage. As a general rule, the larger establishments have relatively more income from food and beverage sales and less from accommodation provision. The income for accommodation rose substantially in 2000, partly due to the introduction of 10% goods and




65

services tax (GST) and the Sydney Olympic Games. In terms of expenditure, labour costs represent over one-third, with other expenditure being on rent, interest, depreciation, and trade commissions. Overall the accommodation sector’s operating profit was 8.1%. This figure increases for the smaller establishments, mainly because family labour is often not costed into the business expenses.

Accommodation employment The accommodation sector employed 106,051 persons in June 2001, representing an average of 18 persons per establishment. Of this total 54% were permanent employees, 43% casual and 2% working proprietors. The relatively low labour costs in the sector are partly due to the high level of casual employment. The sector employs 58% females and 42% males. In total, 85% of accommodation businesses employ fewer than 20 persons, slightly less than the figure for 1998, suggesting some concentration in the sector. Large businesses of more than 100 employees account for 3% of the sector’s businesses yet make a substantial contribution to employment and the economic benefit of the sector. This sector is unusual in the Australian economy, as it recorded a fall in employment in 2000. Accommodation development and investment In 2000, new developments in the accommodation sector reached their highest level since 1989, mainly in anticipation of the Sydney Olympic Games. The new developments were driven by New South Wales and were mainly in the serviced accommodation sector, and in the 4 and 5 Star ratings. The high activity before the Sydney Olympics resulted in a significant slow down of new developments in 2001. Caravan parks Caravans have a long history in Australian domestic tourism and in 2001 accounted for 10% of all domestic visitor nights. International visitors also use this type of accommodation, with campervans a popular form of travel (particularly by Europeans). In 2001 there were 1222 businesses operating 1417 caravan parks. In addition, local governments also operate parks. A total of 8176 persons work in the sector. The majority of income is gained from accommodation takings, with additional income from the sale of food and beverage. The majority of expenses are on labour. Almost 10% of caravan parks are located in capital cities, with a concentration in Brisbane. In regional Australia, New South Wales has the largest number of caravan parks. The key trend in this sector is the growth in capacity of cabins and flats at the parks. Clubs and casinos Clubs are an important supplier of entertainment, gambling and food and bever-



66

Part I: Australia

age in Australia, particularly for the domestic market: in 2002 there were 2911 organisations running 3121 clubs employing almost 65,000 persons. Over one third of clubs were located in capital cities and suburbs. In 2002 Australia had 13 casinos employing almost 20,000 staff and representing a significant contribution to Australia’s accommodation stock with over 3000 rooms. Business event venues The ABS defines the business events venue industry comprising those businesses providing space to stage business events for 500 or more delegates. This effectively excludes the small and medium sized hotels that also stage business events. In 2000/2001 there were 13 organisations staging conventions and exhibitions, representing the major conference and exhibition centres in the capital cities and resorts around Australia. In addition there were a further 108 organisations staging business events. In terms of employment, the sector employs 10,347 persons, with the major 13 convention/exhibition centres accounting for almost one-third of this employment and over a quarter of the total income for the sector. Accommodation classification Until the early 1990s ratings of accommodation properties in Australia were done by several groups. The motoring organisations in each of the States provided star ratings of accommodation and accommodation chains tended to provide their own rating systems to their properties which led to inconsistencies in standards between chains, properties and States. In 1999 the various motoring organisations merged into one association, the Australian Registry of Tourism and Accommodation, which is responsible for the ratings system. There are three accommodation categories: hotels and motels; holiday units, apartments, cottages; and bed and breakfasts, guest house and private hotels, each of which is assessed under criteria for the respective category. However, the rating system is not mandatory and therefore does not cover all establishments. Intermediaries In the late 1990s, there were 3266 intermediaries in Australia, the majority being retailers of leisure travel products (Table 5.12). The majority of intermediaries are small – 97% employ fewer than 20 persons. In contrast, for the larger companies, 19 employed more than 100 persons. It is the larger companies that contribute substantially to both turnover and employment in the sector. The bulk of earnings in the sector originate from commission on ticket sales (around two-thirds). Other sources of income include commission on insurance and travellers cheque sales. The split of international to domestic product sales is around two-thirds to one-third. The major source of expenditure was labour costs (33%). Other costs include rent and leasing, telecommunications, advertising and




67

depreciation. Operating profits in the sector are variable: although the average is 2%, for retail travel agents it is 8.1%; for inbound tour operators 6.5%, and for wholesalers negative –16.8%. In terms of employment, the sector employs 24,451 persons of whom 73% were female, 80% were full-time and 7% were owner/proprietors. The intermediaries sector is concentrated in the Eastern States with 78% of businesses located in New South Wales, Queensland and Victoria.

Investment in Australian Tourism Despite significant data problems, it is possible to paint a broad-brush picture of investment in tourism in Australia. The Department of Industry, Tourism and Resources (DITR) states that direct investment in Australian tourism comprises ‘ownership of physical property’, whilst indirect investment occurs through ‘investment in listed or unlisted tourism vehicles or property trusts with tourism assets in their portfolios’. The most common domestic sources of investment are life insurance companies and superannuation funds. Only 1% of these funds are invested in tourism, however, due to the tourism sector’s perception as being high risk, the difficulty of classifying tourism investments, the paucity of data and the lack of awareness of opportunities in the sector. The sector is also both capital and labour intensive and tends to deliver low profitability. Foreign investment increased in the first half of the 1990s, but fell in the second half, probably due to the Asian financial crisis and the declining economic situation in Japan. Taking these factors together, investment rates in tourism tend to be lower than those in the economy as a whole. The DITR defines investment rates as ‘capital expenditure as a percentage of industry value added’. For tourism in 1999/2000 investment rates are highest in the accommodation, cafes and restaurants sector; transport and storage; cultural and recreation services; and retail trade. For these sectors, investment rates increased in 1999/2000 as a result of preparations for the Sydney Olympics. Investment following the Olympics was expected to level-off or even decline. Note: Throughout this section, ABS data on attendance do not include visits by those aged under 15 years



68

Part I: Australia

Table 5.1 Number of businesses by industry classification in Australia, 1998 Australia/New Zealand standard industrial classification industry

Total businesses

%

Tourism characteristic industries Travel agency and tour operator

5,346

8.9

Taxi transport

2,472

4.1

Air and water transport

2,168

3.6

990

1.6

Motor vehicle hiring Accommodation

9,158

15.2

Cafes and restaurants

21,493

35.8

Takeaway food retailers

18,247

30.3

Total tourism characteristic industries

60,054

100.0

Clubs, pubs, taverns and bars

10,018

3.4

Other road transport

27,883

9.5

1,806

*

Tourism connected industries

Rail transport Food and beverage manufacturing Transport equipment and other manufacturing Automotive fuel retailing Other retail trade

5,061

1.7

58,312

19.9

8,010

2.7

132,156

45.0

Casinos and other gambling services

2,709

*

Libraries, museums and arts

5,715

1.9

Other entertainment services

15,474

5.3

Education

22,410

7.6

Ownership of dwellings

3,865

1.3

Total tourism connected industries

293,419

100.0

Total

353,473

Source: Bolin and Greenwood (2003) Note: * = less than 1% Tourism characteristic industries are defined as ‘those industries that would either cease to exist in their present from or would be significantly affected if tourism were to cease. Tourism connected industries are defined as those industries, other than those defined as tourism characteristic, for which a tourism product is directly identifiable, and where products are consumed by visitors in volumes that are significant for the visitor and/or producer.




69

Table 5.2 Australian World Heritage Sites, 2000 Place

Type

State/Territory

Kakadu National Park

Natural/cultural Northern Territory

Great Barrier Reef

Natural

Willandra Lakes Region

Natural/cultural New South Wales

Tasmanian Wilderness

Natural/cultural Tasmania

Lord Howe Island Group

Natural

Queensland

External Territory

Central Eastern Australia Rainforest Natural Reserves

Queensland & New South Wales

Uluru-Kata Tjuta National Park

Natural/cultural Northern Territory

Wet Tropics

Natural

Queensland

Shark Bay

Natural

Western Australia

Fraser Island

Natural

Queensland

Fossil Mammal Sites (Riversleigh and Naracoorte)

Natural

Queensland & South Australia

Heard and McDonald Islands

Natural

External Territory

Macquarie Island

Natural

External Territory

Blue Mountains

Natural

New South Wales

Source: Australian Bureau of Statistics (2002h)

Table 5.3 Australian Heritage Commission listings, 2001/2002 Indigenous places

%

Historic places

%

Natural places

%

Total places

New South Wales

221

24.3

3,084

31.0

478

23.2

3,783

Victoria

111

12.2

2,412

24.2

247

12.0

2,770

Queensland

155

17.1

737

7.4

320

15.5

1,212

74

8.1

964

9.7

265

12.8

1,303

150

16.4

1,204

12.1

389

18.8

1,743

65

7.2

1,201

12.0

253

12.3

1,519

Northern Territory

105

11.6

144

1.4

62

3.0

311


28

3.1

183

1.8

30

1.5

241

External Territories

–

–

39

0.4

20

0.9

59

909

100%

9,968

100%

2064

100%

12,941

Western Australia South Australia Tasmania

Total places




Part I: Australia

70

Table 5.4 Amusement and theme parks, Australia, 2000/2001 State/Territory

Amusement and theme parks

New South Wales

12

Victoria

4

Queensland

7

Other States and Territories

7

Total

30

Source: Australian Bureau of Statistics (2002k)

Table 5.5 International and domestic passenger movements through Australian airports, 2001 Airport

International passenger movements

%

Domestic passenger movements

%

Sydney

8,224,000

49.0

16,565,000

29.0

Melbourne

3,312,000

19.8

13,308,000

23.3

Brisbane

2,540,000

15.1

9,951,000

17.4

Adelaide

242,000

1.4

4,212,000

7.4

Perth

1,587,000

9.4

3,342,000

5.8

Darwin

152,000

1.0

848,000

1.5

Cairns

665,000

4.0

2,025,000

3.5

Coolangatta

42,000

*

1,795,000

3.1

Norfolk Island

16,000

*

Not available

–

2,000

*

Not available

–

*

Not available

Broome Newcastle

1,000

Townsville

Not applicable (domestic)

–

Launceston


Canberra


Hobart


Total

16,783,000

Source: Australian Bureau of Statistics (2003) Note: * = less than 1%


–

955,000

1.7

–

916,000

1.6

–

1,970,000

3.4

– 100%

1,326,000

2.3

57,213,000

100%



71

Table 5.6 International airline traffic to and from Australia, 2001 Type of traffic

2001

%

Traffic to Australia (passengers) Qantas Airways Ansett Australia Other airlines All airlines

2,910,000 202,000* 5,330,000 8,442,000

34.5 2.4 63.1 100%

Traffic from Australia (passengers) Qantas Airways Ansett Australia Other airlines All airlines

2,908,000 195,000* 5,238,000 8,341,000

34.9 2.3 62.8 100%

Source: Australian Bureau of Statistics (2003) Note: *Ansett Australia ceased operations in September 2001

Table 5.7 Australian seaports of entry New South Wales Sydney Coffs Harbour Eden Gosford Lord Howe Island Newcastle Port Kembla Yamba Clarence River Port Botany and Kurnell Victoria Melbourne Geelong Portland Westernport South Australia Port Adelaide Kingscote Port Pirie Wallaroo Tasmania Hobart Burnie Devonport Launceston Port Latta


Cape Thevenard Port Lincoln Robe Whyalla

Queensland Brisbane Bundaberg Gladstone Hay Point Lucinda Manly Mourilyan HarbourPort Alma Thursday Island Townsville

Abbot Point Cairns Gold Coast Dalrymple Bay Mackay Mooloolaba Rockhampton Scarborough Tin Can Bay Weipa

Northern Territory Darwin Gove Groote Eylandt Milner Western Australia Perth Broome Carnarvon Derby Exmouth Geraldton Port Walcott

Albany Bunbury Dampier Esperance Fremantle Port Headland


Part I: Australia

72

Table 5.8 Length of roads, Australia, 2002 State/Territory

Kilometres

%

New South Wales

182,003

22.47

Victoria

156,500

19.32

Queensland

178,317

22.01

South Australia

96,892

11.96

Western Australia

147,855

18.25

Tasmania

24,130

2.98

Northern Territory

21,652

2.67


2,670

Total length of roads (kilometres)

0.33

810,019

100

Source: Australian Bureau of Statistics (2003) Note: Includes roads that are: bitumen or concrete; gravel, crushed stone or other improved surface; formed only; cleared only.

Table 5.9 Passenger vehicles and buses, Australia, 2001 State/Territory

Passenger vehicles (’000)

%

Buses (’000)

%

Total-all vehicle types (’000)

%

New South Wales

3,014

30.5

17

25.0

3,655

30.1

Victoria

2,690

27.3

16

23.5

3,223

26.6

Queensland

1,773

18.0

15

22.0

2,280

18.9

South Australia Western Australia Tasmania Northern Territory Australian Capital Territory Total

857

8.7

4

5.9

1,023

8.4

1,045

10.6

10

14.7

1,327

10.9

246

2.5

2

2.9

323

2.7

68

0.6

3

4.4

99

0.8

176

1.8

1

1.6

197

1.6

9,870

100%

68

100%

12,126

100%





73

Table 5.10 Rail passenger operations, Australia, 1995–2001 Year

Urban passengers (million persons)

Non- urban passengers (million persons)

Total passengers (million persons)

1995–96

556

9

566

1997–98

578

10

588

1999–00

619

11

629

2000–01

634

12

646


Table 5.11 Themed rail routes, Australia Operator

Trains

Route

Great Southern Railway

Indian Pacific

Sydney–Adelaide–Perth

The Ghan

Sydney/Melbourne–Adelaide–Alice Springs

The Overland

Melbourne–Adelaide

Queensland Rail

Sunlander

Brisbane–Cairns

Tilt Train

Brisbane–Cairns

Spirit of the Outback

Brisbane–Rockhampton–Longreach

Westlander

Brisbane–Charleville

Inlander

Townsville–Mount Isa

Spirit of the Tropics

Brisbane–Townsville

Savannahlander

Cairns–Forsayth

Queenslander

Brisbane–Cairns

Kuranda Scenic Railway Kuranda CountryLink


Gulflander

Normanton–Croydon

CountryLink XPT

Sydney–Brisbane, Melbourne, Dubbo, Grafton, Murwillumbah

CountryLink XPLORER

Sydney–Tamworth–Armidale–Moree– Broken Hill–Canberra


Part I: Australia

74

Table 5.12 Number of intermediary businesses, Australia, 1998 Type of business Retailers - corporate Retailers - conference Retailers - leisure General sales agents Total Wholesalers Ticket consolidators Inbound tour operators Tourist bureaux Total other intermediary businesses Total Source: Australian Bureau of Statistics (1998)


Number

%

325

11.4

50

1.8

2393

.2

74

2.6

2842

100%

158

37.3

16

3.8

170

40.1

80

18.8

424

100%

3266

100%


Chapter 6

Sources of Australian Tourism Statistics LISA RUHANEN AND CHRIS COOPER

Introduction The collection of tourism statistics in Australia is done within an overall framework for the collection and publication of tourism statistics developed by the Australian Bureau of Statistics. This framework deals with both demand and supply-side statistics and takes into account decisions by the United Nations Statistical Commission and also the Bureau of Tourism Research (BTR) review of tourism statistics in 1996/97. The aim of the framework is to benefit both the users and collectors of tourism statistics by providing: ‘guidelines which will encourage consistency and compatibility in the collection and publication of tourism statistics in Australia’ (Australian Bureau of Statistics, 1997: I). Figure 6.1 provides an outline of the framework for the collection and publication of tourism statistics. There are two main agencies that compile statistics for tourism in Australia. These are the Australian Bureau of Statistics (ABS) who provide mainly supply-side statistics; and the Bureau of Tourism Research (BTR), who provide mainly demand-side statistics. We are grateful to both organisations for granting permission to use their copyright material in this publication. These statistics are published on both a regular and an ad hoc basis. In addition to these two sources of statistics other suppliers of data include: • The Cooperative Research Center for Sustainable Tourism (CRC ST) which provides a range of research reports to the tourist industry, government and researchers. • The Australian Tourist Commission (ATC) which has its own research agenda focusing on the marketing of Australian tourism, source markets, etc. These data are available in a series of research reports. • The Tourism Forecasting Council (TFC) produces a range of tourism forecasts available in report form. Other key sources of statistics are other federal government agencies, the State and Territory Governments, consultants, and academic institutions. International 75


Part I: Australia Sources of Australian Tourism Statistics


Part I: Australia

76

Organisations also include Australia in their reports and data series. The most significant of these are: (1) The Pacific Asia Travel Association (PATA); (2) The World Tourism Organisation (WTO); and (3) The World Travel and Tourism Council (WTTC). The following tables (6.1 to 6.3) summarise and comment upon sources of Australian tourism statistics. Figure 6.1 Outline tourism statistics framework model Framework Elements Consumer 1.

2.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Product

Supplier

International visitor 1.1 Overnight visitor 1.2 Same day visitor Domestic visitor 2.1 Overnight visitor 2.2 Same day

1. 2. 3. 4. 5. 6. 7.

Package travel Accommodation Food and drink Transport Recreation, culture Shopping Other

1. 2.

Non-commercial Commercial

Number Purpose of visit Date of arrival Duration of stay or trip Place of residence Nationality Destination Sex Age Marital status Level of education Economic activity status Occupation Income level No. of persons in party

1.

Product specific data Expenditure

1.

Number of establishments/ enterprises Value of sales Number of persons employed Type of persons employed Location Various economic/ accounting indicators

2.

2. 3. 4. 5. 6.

Typical Measures


This report provides statistical data on visitor arrivals in Asian and Pacific destinations.

Pacific Asia Travel Association (PATA) Statistical Report


Compiled from Australian World Tourism government data supplied to the Organization WTO.

World Tourism Organization (WTO) Yearbook of Tourism Statistics

1947–current

From 1986 annually

From 1975 biennially

Annual

Pacific Asia Travel Association

Compiled from Australian World Tourism government data supplied to the Organization WTO.

Data range/ availability

Source

World Tourism Organization (WTO) Compendium of Tourism Statistics

Data is submitted by individual countries on a standard questionnaire. The primary source for visitor arrival data is the embarkation/disembarkation cards.

Description

Title

Table 6.1 International sources for Australian tourism statistics


Same as for the Compendium of Tourism Statistics

Domestic tourism Overnight stays Outbound tourism Departures Expenditure Tourism activities Hotels and similar establishments Economic aggregates (GNP, exports, imports)

Inbound Tourism Arrivals (by region, mode of transport, purpose of visit) Overnight stays and length of stay Tourism expenditure

Outbound travel data Hotel room occupancy Visitor expenditures Length of stay Origin of visitor arrivals by residence/nationality to Asia Pacific countries Visitor expenditure Average hotel occupancy rate Total number of hotel rooms National tourist organisation Promotion budgets

Data included

Sources of Australian Tourism Statistics 77

The WTTC Satellite Accounts addresses economic activity within the industry by examining travel and tourism consumption and demand.

World Travel and Tourism Council (WTTC) Satellite Accounts


Description

Title World Travel and Tourism Council

Source 2002


Table 6.1 (cont.) International sources for Australian tourism statistics


Travel and tourism demand Government expenditures by agencies and departments on promotion, etc. Capital investment by the private and public sector in providing services to visitors Exports of non-visitor of consumer and capital goods

Travel and tourism consumption Personal expenditure Business travel by government and industry Government expenditures by agencies and departments which provide visitor services Visitor exports

Data included

78

Part I: Australia

Description


Caveats Care is needed in interpreting the data for 2000/2001 due to the introduction of a 10% goods and services tax.

Tourism is defined as visitors whose primary purpose is private or government business as well as leisure purposes.

Australian Tourism Internationally recognised Satellite Account as the best method for estimating tourism consumption and the size of the industry.

International visitors

Title

Funded by the Department of Industry, Tourism and Resources

Australian Bureau of Statistics

Source

1998–99 1999–00 2000–01 (all published 2002)

1997–98 (published 2000)


Table 6.2 Australian sources for Australian tourism statistics


Tourism contribution to gross value added and GDP Tourism GDP by type of visitor Tourism gross value added by industry Gross value added (tourism and non-tourism) by industry division Tourism consumption by type of visitor Domestic visitor consumption Average consumption by type of visitor Consumption by Australians travelling overseas and inbound visitors to Australia Employed persons in tourism by age, sex and full-time/part-time basis Number of overseas arrivals and departures Visitors are split by national and international visitors. Domestic visitors are also split by visitor type (households/business and government) and length of trip (same day and overnight visitors)

Data included



Overseas Arrivals and Departures

Caveats From July 2001, new passenger card processing has resulted in data quality issues and also significant delays in the release of international passenger data.

Compiled from the Department of Immigration and Multicultural and Indigenous Affairs incoming and outgoing passenger cards.

Data collected from 20,000 departing international visitors by computer assisted personal interviews at airports. Additional questions can be added to the basic survey. Australian Bureau of Statistics

Prime mechanism for the Bureau of Tourism collection of inbound Research travel for nature of trip and nature of tourist for market analysis purposes.

International Visitor Survey

Source

Description

Title

Annual 1965–current

Annual 1998–current Pre-1998 data available from (1) The International Visitor Survey conducted by the Australian Tourist Commission (1983–1997); and (2) The Survey of International Visitors conducted by the Australian Tourist Commission (1979/80–1981)


Table 6.2 (cont.) Australian sources for Australian tourism statistics


Port of clearance Category of movement Country of residence/main destination Country of birth Country of citizenship (nationality) Country of embarkation/disembarkation State of clearance/major port of clearance State of residence/stay Purpose of journey Duration of stay Sex/ age

Demographics (age, sex, occupation) and all reasons for visit Travel arrangements (inclusive or group tour) Size and composition of group and reasons for visit Type of fare and pre-paid arrangements Type of information sources Time away from home and stop-overs City of arrival and departure Duration of stay and region of stay Type of accommodation and activities undertaken Places of interest visited Expenditure and income

Data included

80

Part I: Australia


(Travel by Australians)

Bureau of The NVS uses Tourism computer-assisted telephone interviewing of Research 80,000 households. Additional questions can be added to the basic survey. The previous survey (Domestic Tourism Monitor) used a household survey approach. The NVS survey has been designed to include niche markets and a stronger regional sampling frame for greater reliability. The data have been designed to support the regions, and marketing and planning for tourism.

National Visitor Survey (NVS)

Bureau of Tourism Research

Source

A household survey designed to deliver data for policy, strategic planning and marketing by state and federal tourism bodies.

Description

Domestic Tourism Monitor

Domestic visitors

Title

Caveat The NVS data and previous surveys are not directly comparable.

Pre-1998 data available from the Domestic Tourism Monitor (1984–1998) and some State Tourism Surveys.

1998–current

Quarterly 1984–1998 Replaced by the National Visitor Survey in 1998




Outbound (international) visitors Outbound visitor nights Age and sex Country of birth and years in Australia Employment status Annual household income Place of residence Travel behaviour for outbound visitors Destination countries visited Main reason for trip Total trip expenditure

Domestic visitors Expenditure Destinations visited (region and state level) Accommodation used Transport used to arrive at destinations Activities undertaken at destinations

Data are collected on the following topics, which are cross-classified by trips, visits, visitor nights, main destination and origin: Main purpose of trip Type of transport used Type of accommodation used Length of trip Seasonality of trip Age and sex of travellers Day trips by type of trip

Data included



Presents size, structure and operating characteristics for key service industries.

Service Industry Statistics



Presents estimates of indicators for a variety of tourism related tourism industries.

Industry Wide Statistics

Source

Forecasts are produced on Tourism an annual cycle. Forecasts Forecasting are for a 10-year period Council and cover all Australian States and Territories. The forecasts contain data from the Survey of Tourist Accommodation (STA) and Overseas Arrivals and Departures (OAD) collections. From the STA collection seasonal trend data and takings data at constant prices as well as operating ratios are presented. From the OAD collection, market-segmentation data is included.

Description

Forecasts of Domestic Tourism, Outbound Travel and International Visitors

Other statistics

Title

Irregular

Irregular

Annual




Data includes number and characteristic of establishments

Industries covered are: accommodation, cafes and restaurants, commercial art galleries, museums, retail, and amusement/leisure industry

Data includes number and characteristic of establishments

Industries covered are: retail, accommodation, cafes and restaurants, transport and cultural/recreation services

International Visitors Visitor nights Visitor numbers Visitor expenditure Country of origin Duration of stay Nights in hotels and motels

Outbound Travel Resident departures Purpose of trip

Domestic Tourism Trips Visitor nights Visitor expenditure Purpose of trip State of main destination Nights in hotels and motels

Data included

82

Part I: Australia


The STA uses a mail-out Australian survey. Bureau of From 1998 the scope of Statistics the survey was changed to include only significant accommodation establishments (15 or more rooms or units). Every third year the survey expands to cover holiday flats, caravan parks and hostels.

Quarterly 1975–current


Survey of Tourist Accommodation (STA)

Source 1992–93 1994–95 1995–96

Description

Survey of Inbound The survey covers Australian Tour Operators inbound tour operators Bureau of retailing or wholesaling Statistics package tours to overseas visitors. The collection obtains details in relation to the Australian content of such tours. The survey is conducted by mail-out questionnaire to about 250 tourism operators.

Title



Data are available by establishment type, star grading and geographic area. From July 2000, the item ‘gross takings from accommodation’ includes the Goods and Services Tax (GST)

Seasonally adjusted and trend estimates for room nights and takings, hotels and motels/guest houses; and takings at constant prices for hotels, motels/guest houses

Number of establishments/letting entities Capacity (rooms/units/sites, bed spaces) Occupancy (room/unit/site nights, guest nights, guest arrivals) occupancy rates (room/unit/site, bed spaces) Average length of stay (days) Takings from accommodation Employment (persons).

Number of passengers by country of origin Gross amount of invoices paid by those passengers for the ground content (e.g. coach transfers, accommodation, meals, cruises, etc.) of tours in Australia Full and part-time employment in Australia and full-time employment overseas Number and language skills of tour guides and tour coordinators employed by the respondents business

Data included


Description


Survey of Tourist Accommodation

Quarterly 1993–current


Quarterly


Source

Presents estimates of Australian activity in the Bureau of accommodation sector for Statistics each State and Territory.

Tourism Indicators Presents a selection of statistics from other ABS publications including: Survey of Tourist Accommodation Overseas arrivals and departures Tourism satellite account Building activity Building approvals Bureau of Tourism Research Visitor Surveys

Title



Data include: Number of establishments, occupancy, capacity and employment, and takings

Every third year beginning 2000, data are provided for holiday flats, units, caravan parks and visitor hostels

Data available for hotels, motels, guest houses and serviced apartments

Key tourism indicators Feature article Tourist accommodation International tourism

Data included

84

Part I: Australia

Fact sheets Tourism Index Tasmania Visitor Survey (1978–current) Tourism Operators Survey (1993/96/98) Intrastate Travel Report (1990–current) Victoria Tourism Highlights Research brief on tourism

South Australia

Tasmania

Victoria

Western Australia

Source

http://www.tourism.wa.gov.au/industry/research

http://www.tourism.vic.gov.au

http://www.tourismtasmania.com.au

http://www.tourism.sa.gov.au

http://www.tq.com.au

http://www.nttc.com.au

http://www.tourism.nsw.gov.au

http://www.canberratourism.com.au


Note: The majority of statistics provided by State and Territory Tourism Agencies are sourced from national surveys. However, there are a small number of State/Territory level surveys delivering original data. These are identified in italics.

Northern Territory Travel Monitor Tourism facts and figures Regional tourism activity monitor Contribution of tourism to the economy Regional and international fact sheets International research summaries

Fact Sheets Time series data (1989–1999) NSW tourism business forecasts Regional research reviews Regional tourism profiles

New South Wales

Northern Territory

Fact sheets


Queensland

Data

State

Table 6.3 Sources of Australian State and Territory tourism statistics






Part II

New Zealand

C:\edrive\Oceania\oceania2.vp Friday, January 28, 2005 10:56:30

Part II: New Zealand Introduction to New Zealand




Chapter 7

Introduction to New Zealand PETER TRELOAR AND C. MICHAEL HALL The islands of New Zealand (Aotearoa), while young in geological terms (only around 450 million years old) comprise a nation rich in history, flora and fauna and European and traditional Maori culture. According to Maori tradition, Aotearoa was created when Maui went fishing in his canoe and reeled in the North Island from the depths of the ocean. It is claimed that this fish was turned to land by angry gods who punished Maui and his crew for not making an offering to the gods for their catch. Legend has it that the South Island was formed from Maui’s waka (canoe) and Stewart Island at the far south is his punga (anchor) (Figure 7.1). In recent years, New Zealand has been thrust into the world’s tourism spotlight through the successful staging of two America’s Cup regattas in Auckland and the popularity of the Lord of the Rings trilogy which was filmed in New Zealand. These events, coupled with the stability of this independent nation in times of relative political instability, have created a safe and welcoming destination rich in natural wonders and ready to share them with ever increasing international tourism numbers.

Physical Geography New Zealand is situated in the South Pacific Ocean, between latitude 34’S and 47’S. New Zealand is made up of two main islands, the North Island (113,729 square kilometres) and the South Island (150,437 square kilometres), and is surrounded by a number of smaller islands, the largest being Stewart Island (1,680 square kilometres) at the southern end of the South Island. The geological make-up of New Zealand offers tourists a diverse range of natural sights and formations. The North Island was formed by the sliding of the Pacific tectonic plate under the continental Indo-Australian Plate, leading to significant volcanic activity throughout the island. Thermal activity, active volcanoes and hot-spots are spread throughout the island, from White Island in the Bay of Plenty, Tongariro National Park in the centre of the North Island and Mount Taranaki (Egmont) in the south-west of the North Island near New Plymouth. Although not 89



90

Part II: New Zealand

Figure 7.1 New Zealand fully realised by many visitors, Auckland, the largest city in the country, is located on an active volcanic plane. The most active areas are around Rotorua and Lake Taupo, which is New Zealand’s largest inland lake and was caused by a massive volcanic eruption in AD 186. Rotorua and Taupo offer tourists fascinating sights in geo-thermal activity and the aftermath of violent volcanic eruptions through such features as boiling mud, thermal springs and creeping lava. The North Island countryside is also dotted with dormant and inactive volcanic peaks which create a spectacular landscape. The South Island has only limited volcanic activity in comparison to the North, as it was created by the Pacific and Indo-Australian tectonic plates colliding into each other, leading to the development of ‘creeping’ rock formations upwards. However, remnant calderas provide the basis for the spectacular landscapes of Dunedin Harbour and Peninsula, and Banks Peninsula which includes Lyttleton and Akaroa Harbours. Hanmer Springs in north Canterbury remains the most well recognised geo-thermal attraction for visitors in the South Island. Arguably the most spectacular mountain landscapes of the South Island are the Southern Alps,



Introduction to New Zealand

91

which thanks to the collision of the tectonic plates are still growing at approximately 10 mm per year. In addition to its landscape features an important part of New Zealand’s natural attractions are its plant and animal life. New Zealand separated from the continent of Gondwana (comprising South America, Africa, India, Australia and New Zealand) around 100 million years ago, allowing many ancient plants and animals to survive and evolve in isolation. Apart from some species of bats, all mammals in New Zealand were introduced through either Maori or European colonisation. Although many indigenous species, such as the New Zealand eagle and the Moa, have become extinct, a number of native bird species have been conserved in either native forest or on off-shore islands, some of which have been cleared of predators such as rats, stoats and cats in order to ensure their survival. A number of off-shore and mainland sanctuaries are accessible by tourists including most notably the national wildlife sanctuary at Mount Bruce in the North Island. In addition to its birdlife, New Zealand also has significant areas of native forest, particularly the temperate beech rainforests in the South Island. One interesting conservation dilemma facing New Zealand is that a number of imported deer and wallaby species which are threatened in their native habitat are thriving in New Zealand leading to significant questions as to whether or not they should be culled particularly when there is a significant domestic and international market for sustainable hunting. These issues are creating significant policy problems for the national government and its agencies, particularly given the recreational and tourist interest in hunting and fishing. About 80% of all flora is endemic to New Zealand. Some examples are the tall kauri and kohekohe forests, rainforests dominated by rimu, beech, tawa, matai and rata; ferns and flax; dunelands with their spiniflex and pingao; alpine and subalpine herb fields; and scrub and tussock. The kauri and beech trees are highly significant flora because closely related species exist in Australia and South America providing biogeographical evidence for continental drift and the existence of the former super-continent of Gondwana. The introduction of foreign animal species (including humans) has led to the loss of around 10% of the nation’s native flora and fauna. Around 30% of New Zealand’s land area is protected conservation land, and about 25% of the country is covered in forest, much protected in national parks and World Heritage areas. The climate in New Zealand varies greatly throughout the country. Most of the North Island is generally sub-tropical, while the South Island is temperate. The average temperatures for the North Island range between 20°C and 25°C in summer (December–February), and 12°C and 16°C in winter, with the northern parts receiving the warmer weather (Table 7.1). Average temperatures for the South Island range from around 22°C in summer to around 10–12°C in winter. The geological make-up of the two islands has led to differences in rainfall patterns, with the



92


Southern Alps in the South Island leading to a concentration of rainfall in the west and a generally dry climate in the east. The North Island, with its relatively flat topography, has a more even distribution of rainfall. Overall, the climate in New Zealand is maritime, rather than continental, and therefore typical island weather patterns, including rapid changes in the weather, are common.

Society The indigenous Maori population is believed to have settled in New Zealand from about AD 800 although there is some evidence of earlier human habitation or visitation. Maori tradition has it that the explorer Kupe’s wife named it Aotearoa (The Land of the Long White Cloud). The first known European to visit New Zealand was Abel Tasman who sailed up the West Coast in 1642. Captain James Cook visited New Zealand in 1769, circumnavigating it aboard the Endeavour, before moving on to claim Australia. Many of the place names given by Cook exist to the present day. As with Tasman, Cook’s first contact with the Maori proved to be a violent affair; however, this did not halt British plans for colonisation and attempts to exclude rival colonial powers from the lands of the southern oceans in the late 17th century. Although for the first half of the 18th century New Zealand was under the jurisdiction of the colony of New South Wales (Australia), New Zealand began to assert its own political and economic identity from the mid-18th century on. However, despite the signing of the Treaty of Waitangi in 1840 conflict over land ownership and access occurred between Maori and Pakeha (Europeans) for much of the remainder of the century leading to often bloody wars not only between Maori and settlers but also between Maori tribes. The discovery of large amounts of gold in Central Otago in the South Island in 1861 led to a gold rush which dramatically increased the country’s population and economic fortunes. Between July and December 1861 Otago’s population rose from under 13,000 to over 30,000, with over half of these arrivals coming from Australia. Gold discoveries which continued throughout the remainder of the century provided opportunities for foreign investment while the increase in population base also provided market opportunities for new businesses. Arguably as important as the discovery of gold was the development of refrigeration technology which allowed for the first shipment of frozen meat from New Zealand in 1882 as well as the export of butter and cheese. Indeed, these products, along with wool and fruits production provided the basis for much of New Zealand’s economic well-being until the 1970s and, arguably, to the present day. Nevertheless, since the oil price increases of the early 1970s, greater free trade and the loss of preferential trade agreements with the United Kingdom in the 1970s as Britain joined the Common Market, the New Zealand agricultural sector has been marked by increased diversification into deer farming, wine-growing, horticulture and bulb production as well




93

as developing more value-added products from the existing primary production base. Although the export of agricultural products, as well as its tourism advertising which emphasises natural and rural scenes reinforce more romantic rural images of New Zealand, the reality is that it is a highly urbanised country (Table 7.2). The largest city is Auckland which has a population of over one million people and because of the extent of Maori and Pacific Islander population is regarded as the largest Polynesian city in the world. The population of New Zealand is about 4 million, of which 14% are Maori. The two official languages of New Zealand are English and Maori, with English being the most widely spoken. However, the Maori population is increasing faster than the Pakeha, and a resurgence of Maoritanga (Maori culture) has led to the Maori dimensions of New Zealand culture having an increased presence within the national identity. Nevertheless, reconciliation is still a major issue in today’s society.

Political Structure New Zealand was given dominion status within the British Empire in 1907, and autonomy in 1937. Independence was announced formally in 1947. Unlike Australia, New Zealand does not have a written constitution. However, it does have a number of constitutional documents such as the Treaty of Waitangi and the Bill of Rights which state a number of the rights of citizens, coupled with the power of Common Law. Indeed, the Australian Constitution, which is an act of the British Parliament from 1900, still provides for New Zealand entry into the Australian Commonwealth. New Zealand is a constitutional monarchy with the reigning British monarch as head of state. The Crown is represented in New Zealand by the Governor General, whose position is largely symbolic and ceremonial, although, as in Australia, he does have wide-ranging powers over the government but these are not usually enacted. The Governor General is appointed on the advice of the government of the day. The New Zealand government has three branches: the Legislature, the Executive (Cabinet) and the Judiciary. New Zealand is a unitary state with provincial governments having been abolished in the 1870s. The unicameral parliament is based in the city of Wellington at the lower end of the North Island. Government is elected using a Mixed Member Proportional (MMP) Representational system which was introduced in 1996 after many years of dissatisfaction with the representative distortions of a first-past-the-post electoral system. The term of government is three years. The first three terms of government following the introduction of MMP were characterised by coalition governments. The highest court in the nation is the British Privy Council, based in London, although appeals to this court are limited. In 2003 New Zealand was debating the introduction of a new high court based in New Zealand.



94


The Treaty of Waitangi The Treaty of Waitangi is considered by many New Zealanders as the country’s founding document. However, it also remains a continuing source of debate and controversy. The Treaty was drawn up by representatives of the British Crown in order to limit the conflict between settlers and Maori and provide for an orderly legal structure for the ownership of lands and other natural resources and the imposition of British law. The Treaty was signed by 43 Northland Chiefs on 6 February 1840, and, after being taken around the country for eight months, was signed by over 500 other Maori chiefs. Although several significant chiefs and tribes did not sign the Treaty. The Treaty remains a centre-piece of New Zealand politics and society given the rights it is seen as giving to Maori and the influence that it has on governance. The Treaty is also important as a reference point for the settlement by the Crown of grievances with various Maori iwi (tribes) over the unjust loss of land or access to natural resources. Nevertheless, the Treaty remains highly controversial given the fact that it was written in Maori and English, and the translation of the document between the two different languages leaves a number of areas open to differences in interpretation.

Economy The first significant commercial operations in New Zealand were whaling and sealing which operated in New Zealand waters from the 1770s, with many of the early whaling sites providing the basis for the development of permanent settlements. In the 1870s gold was discovered leading to substantial growth in investment and population. Since the gold-rush days, the New Zealand economy has primarily been based on agriculture and manufacturing, although coal and gold mining remain significant regional industries. The entry of Britain into the European Common Market in 1973 and reduction of tariff protection since the mid-1980s has meant the gradual decline in many manufacturing industries and substantial reorientation in the country’s export markets. GDP in 2002 was NZ$120,022 billion, 2001 was NZ$112,121 billion and 2000 was NZ$105,930 billion (Table 7.3). This makes the economy about one-seventh the size of Australia’s and about one-twentieth the size of the US economy. The currency is the New Zealand dollar. This currency is also used in a number of Pacific Island nations (e.g. the Cook Islands). The exchange rate for the NZ$ is usually comparable to the Australian dollar, although slightly weaker (i.e. NZ$1 ± AU$0.90). New Zealand is considered a relatively stable economy. The economic performance of New Zealand is highly dependent on the competitiveness of its export industries which, because of the significance of primary production and tourism, means that exchange rates are a major determinant on New Zealand business success. The rate of growth in early 2000 was above the OECD average (Table 7.4). The unemployment rate in the June quarter, 2002 was 5.1% (4.9% males and 5.4%




95

females); down from 5.3% and 6.1% for the same period in 2001 and 2000 respectively. Average weekly income in June quarter 2002 was NZ$518.00 ($639 for males and NZ$403 for females). Up from NZ$474 and NZ$447 for the same periods in 2001 and 2000 respectively (Table 7.5). Tourism is not identified as a separate industry for purposes of national accounts or employment statistics. Nevertheless, tourism is emerging as a major growth industry in New Zealand. According to the Tourism Research Council, tourism directly and indirectly contributes almost 10% of New Zealand’s GDP and is estimated to support nearly one job in ten in New Zealand, with an estimated 90,000 full-time equivalent jobs provided directly and 60,000 indirectly. As with a number of other countries New Zealand has developed a set of tourism satellite accounts since the late 1990s which seeks to measure the impact of both international and domestic tourism. The provisional Tourism Satellite Account (TSA) for the year ended March 2002 suggested that tourism contributed NZ$14.6 billion to the New Zealand economy and NZ$6.2 billion or 14.3% of New Zealand’s total export earnings, representing 9% of GDP. The TSA also states that tourism directly and indirectly supported an estimated 150,000 full-time equivalent jobs (9.2% of the total workforce) (Tourism Research Council New Zealand, 2003b). Table 7.1 New Zealand regional temperatures Spring

Summer

Autumn

Winter

Bay of Islands Temp (C) Rain days

19/9 11

25/14 7

21/11 11

16/7 16

Auckland Temp (C) Rain days

18/11 12

24/12 8

20/13 11

15/9 15

Rotorua Temp (C) Rain days

17/7 11

24/12 9

18/9 9

13/4 13

Wellington Temp (C) Rain days

15/9 1

20/13 7

17/11 10

12/6 13

Christchurch Temp (C) Rain days

17/7 7

22/13 7

18/8 7

12/3 7

Queenstown Temp (C) Rain days

16/5 9

22/10 8

16/6 8

10/1 7

Source: Tourism New Zealand, 2003




96

Table 7.2 Population statistics by major regions of New Zealand, 2002 Region

Population+

%

North Island Northland

145,400

4.86

Auckland

1,251,500

41.83

Waikato

373,300

12.48

Bay of Plenty

250,100

8.36

Gisborne

45,200

1.51

Hawke’s Bay

148,000

4.95

Taranaki

105,500

3.53

Manawatu–Wanganui

227,100

7.59

Wellington Total North Island

445,500

14.89

2,991,600

100

South Island Tasman

43,500

4.59

Nelson

43,500

4.59

Marlborough

41,100

4.34

West Coast

30,800

3.25

Canterbury

503,800

53.17

Otago

190,700

20.12

93,400

9.86

Southland Total South Island Total New Zealand

947,600

100

3,939,100

–

Source: Statistics New Zealand, 2003

Table 7.3 New Zealand industry contribution to GDP, 1999 Industry Manufacturing

Contribution (%) 1999 17.4

Finance, insurance, business services and real estate

14.6

Transport and communications

11.9

General government services

10.7

Owner occupied dwellings

7.8

Wholesale

7.4

Community, social and personal services

6.1

Agriculture and hunting

5.8




97

Table 7.3 (cont.) New Zealand industry contribution to GDP, 1999 Industry

Contribution (%) 1999

Retail

5.4

Construction

3.3

Unallocated

2.7

Forestry, fishing and mining

2.5

Electricity, gas and water

2.5

Restaurants and hotels Total

1.9 100

Summary Service industries

47.3

Goods producing industries

23.2

Primary industry Total business activity

8.3 78.8

Source: New Zealand Treasury Department, 2003

Table 7.4 Features of New Zealand exports and imports • The three main export markets for the 2001–2002 financial year were Australia (NZ$5.528 billion), United States of America (NZ$3.733 billion) and Japan (NZ$3.82 billion) • The three main sources of imports for the 2001–2002 financial year were Australia (NZ$6.843 billion), US (NZ$5.127 billion) and Japan (NZ$3.474 billion). • Total exports were NZ$26.11 billion; imports were NZ$29.19 billion. Total deficit of NZ$2.082 billion • Major exports – Milk powder, butter and cheese (NZ$3.895 billion); Meat and edible offal (NZ$3.379 billion); logs, wood and wood articles (NZ$2.024 billion); and fish, crustaceans and molluscs (NZ$ 1.230 billion) • Major imports – Mechanical machinery and equipment (NZ$3.807 billion); vehicles, parts and accessories (NZ$3.594 billion); petroleum and products (NZ$2.296 billion) and; electrical machinery and equipment (NZ$2.938 billion) Source: Statistics New Zealand, 2003




98

Table 7.5 New Zealand industry by number of enterprises, total income and full-time equivalent (FTE) positions, 1999, 2000 Industry

Number of enterprises (2000)

%

11,258

3.95

4,130

1.63

34,140

2.33

372

0.13

1,894

0.75

3,300

0.22

21,076

7.39

50,379

19.83

246,690

16.81

149

0.05

8,234

3.24

5,770

0.39

Construction

36,869

12.92

13,970

5.50

111,370

7.59

Wholesale trade

16,839

5.90

54,239

21.35

97,660

6.65

Retail trade

Agriculture, forestry and fishing Mining Manufacturing Utilities

Total income 1999 ($ million)

%

FTE persons

%

35,057

12.29

33,451

13.17

Accommodation, cafes and restaurants

9,749

3.42

4,808

1.89

183,750 12.52 69,200

4.71

Transport and storage

10,895

3.82

16,512

6.50

67,870

4.62

Communication services

3,441

1.21

5,719

2.25

28,730

1.96

Finance and insurance

9,754

3.42

32,805

12.91

44,620

3.04

Property and business services

89,402

31.34

20,848

8.21

204

0.07

23,571

9.28

62,610

4.27

6,024

2.11

6,049

2.38

101,270

6.90

12,591

4.41

6,341

2.49

130,590

8.90

9,771

3.42

4,425

1.74

35,580

2.42

11,851

4.15

2,143

0.84

51,580

3.51

Government administration and defence Education Health and community services Cultural and recreational services Personal and other services Total

285,302

Source: Statistics New Zealand, 2001


100

254,064

100

193,190 13.16

1,467,910 100


Chapter 8

Demand for Tourism in New Zealand PETER TRELOAR AND C. MICHAEL HALL

Introduction The demand for tourism to and within New Zealand has been increasing steadily in recent years, aided by the promotion that New Zealand has received within international markets by events such as the Lord of the Rings film trilogy and the successful hosting of the America’s Cup. Further, New Zealand was voted as 2003’s ‘Top Hot Spot’ by staff at the respected Lonely Planet tourism organisation (Bray, 2003). Tourism arrivals to New Zealand now total well above 2 million visitors annually. This is a significant arrivals figure considering New Zealand’s population of less than 4 million, although considerably short of the New Zealand Tourism Board’s target of the early 1990s of 3 million international visitors per annum by the year 2000. Developments in the structure and quality of the tourism industry, coupled with aggressive marketing campaigns to major international tourism generating areas have seen New Zealand well positioned as a destination in the international marketplace. New Zealand is now considered to be in an excellent position for further development and growth well into the 21st century.

The Economic Significance of Tourism Demand The structure and diversity of the tourism industry in New Zealand impacts greatly on the measure of benefits which are received. The tourism industry is made up of a number of sectors, who directly supply visitors, and secondary supplier industries who support tourism in association with a number of other activities. The economic impact of tourism in New Zealand is measured by the Tourism Satellite Account (TSA) which reports on tourist spending in various areas of the tourism industry and in sub-sectors. Figures for the 2002 travel year found that total spending by international tourists amounted to NZ$6.141 billion. Spending by domestic tourists in 2001 reached NZ$6.9 billion, which is an increase of 9.6% on the previous year. The holiday market for international tourists contributed the most significant amount to the economy, with 2002 figures showing an average trip spend of 99


Part II: New Zealand Demand for Tourism in New Zealand


100


NZ$3514 and total earnings for this market at NZ$3.55 billion. The Tourism Research Council (2002a) has released forecast figures for New Zealand up to 2008 and estimates that international tourism will contribute NZ$9.68 billion to the economy and that domestic tourism will grow at 2.3% annually. However, given the volatility of the international economy and tourism marketplace these growth figures are regarded by some commentators as optimistic. With the creation and development of improved transport systems and travel routes, successful marketing campaigns to appropriate international markets, and internal product development, tourism in New Zealand is becoming an increasingly significant industry sector. Further, forecasts predict that the growth that the tourism industry has experienced over the last decade or two will continue well into the future, firmly establishing the role of tourism within the New Zealand economy and the appeal of New Zealand as a worthwhile tourism destination for international markets.

Demand for Inbound Tourism to New Zealand International tourists to New Zealand reached a record number of 2.045 million in 2002, a massive increase of 93.7% in just 10 years (Table 8.1). On average, the growth rate for international tourism has been around 6–8% annually, although 1997 and 1998 did see slight decreases in tourism numbers (–2.0 and –0.8% respectively) as a result of the Asian financial crisis, and 1994 did see an unusually large increase in overall figures (+14.3%). The world economic and political climate, coupled with the decrease in the relative value of the New Zealand dollar compared to other international currencies since 1997, has placed New Zealand in an excellent position to improve on its share of the international tourism market. In addition, New Zealand has capitalised on the growth in tourism in Australia, as many international tourists visit both countries when visiting the region. The Trans-Tasman air route between Australia and New Zealand is by far the busiest international air route coming to New Zealand (Statistics New Zealand, 2000), due to the large number of both inbound and outbound travellers between the two nations. Australia is the most significant international market for New Zealand, accounting for 30.9% of total visitors in 2002 (Tables 8.2 and 8.3). In the six years leading up to 2002, demand from Australia increased by almost 200,000 visitors, or 46%, indicating that the Australian market still has potential for further growth into the future. Other major markets to New Zealand (in order of significance) include the United Kingdom (11.6%), the United States of America (10%), Japan (8.5%), South Korea (5.4%) and China (3.7%). China has shown significant growth in terms of percentage since 1996, with visitation figures increasing by 336% (from 17,551 to 76,534 in 2002), with the Tourism Research Council (2001) forecasting that Asian countries



Demand for Tourism in New Zealand

101

(excluding Japan) will be the major inbound growth markets for New Zealand by 2008. Over 50% of visitors in 2002 travelled to New Zealand for holiday or vacation purposes, a slightly higher percentage than 2001 (Tables 8.4 and 8.5). Visiting friends and relatives (VFR) accounted for 25.5% of visitors, and travel for business purposes accounted for 12.3%. Tourists who were visiting friends or relatives tended to stay longer than the other two markets, with an average length of stay of 25 days. ‘Holiday’ visitors stayed for an average of 18 days and business travellers stayed for an average of 14 days. The ‘other’ purpose of visit category did show the highest average length of stay (41 days) although this is most likely due to the inclusion of ‘employment’ as an option within that category (Table 8.6). The overall average length of stay for 2002 was 21.9 days. New Zealand in 2002 also hosted slightly more male tourists than female tourists (51.7% compared to 48.3%) and the largest age group market was those aged between 30 and 39 (19.3%), although the spread for age groups over 20 years of age is relatively constant (Tables 8.6 and 8.7). The most popular destination within New Zealand for international tourists was the Auckland region, which received over 20% of visitors (Table 8.8). This was followed by Canterbury (13.4%), Otago (11.2%) and the Bay of Plenty region (10.9%). Whilst travelling throughout New Zealand, similar numbers of international tourists use domestic air services as they do private cars, rental cars and coach bus services, although domestic air services are the most used transport medium (Tables 8.9 and 8.10). In 2002, 48.3% of travellers were classified as Fully Independent Travel (FIT) travellers, while 21% were semi-independent, 12.1% travelled on a package tour and 6.4% travelled within a tour group. Forecasts for international tourism to New Zealand estimate that visitor days will increase by average of 6.6% per annum up until 2008. This will see visitor days increase from 44.2 million in 2002 to 63.7 million in 2008. Total arrivals are estimated to increase by 6.0% per annum (or from 2 million to 2.86 million) until 2008, while the average length of stay is estimated to increase by around one day per stay. These results will lead to an increase in revenue from international tourists of around NZ$4 billion within five years. However, these forecasts are estimated based on current and predicted economic and political climates throughout the world, especially in stated possible growth markets like Asia, Australia, the United Kingdom and the Pacific Islands. The growth which has been forecast will also be reliant on the continued success of Tourism New Zealand’s international marketing campaign which has attributed to the growth of vital markets, especially Australia and the United Kingdom.

New Zealand Domestic Tourism Demand Domestic tourism is a significant force within New Zealand’s tourism industry. Earnings from domestic travel have been steadily growing, and contribute more to



102


the economy than international tourism. Both day trips and overnight trips increased in 2001 from the previous year, although the extent of domestic tourism and length of stays is slightly down when compared to figures from the 1980s. Decreases in overnight domestic tourism can most likely be attributed to a number of factors in the local, regional and international environment. Most importantly, the deregulation of air services into and within New Zealand has led to a dramatic improvement in competitive pricing and accessibility, allowing New Zealand residents greater ease in travelling internationally. This is highlighted through outbound tourism figures which show steady increases over the last five or six years, with almost 2% more of the entire population taking overseas trips than in previous years. Australia still continues to be the dominant destination for New Zealand citizens, and international travel across the Tasman has continued to flourish, even after the demise of Ansett Airlines. In addition, even though the New Zealand dollar has lost value in relation to currencies such as the UK pound and the American dollar it remains strong in relation to some Asian currencies (such as the Thai baht and the Indonesian rupiah). Overnight trips In 2001, New Zealanders made an estimated 1.6 million domestic overnight trips and spent around 50.3 million nights away from home (Table 8.11). The average stay for 2001 was 3.0 nights, which is a significant decrease from 3.2 nights away in 2000. Combined, these figures led to a decrease of 3% in total trips from 2000 and a significant decrease of 6% for total nights spent away from home. However, regardless of the decrease in total travel time, New Zealanders still increased their total spending on domestic tourism, which has recently been seen to grow at around 6–7% annually. In 2001, total spending is estimated to have increased to NZ$4.3 billion, which is 6% greater than in 2000. Primarily, this total spend can be attributed to increases in nightly spend, which were just NZ$70 per night in 1999 and have increased to NZ$86 per night for 2001 (Table 8.12). The majority of domestic travellers were travelling for holiday purposes (41.5%), while business (16%) and visiting friends and relatives (34.9%) were also significant travel motivators (Table 8.13). Business travel was the only market sector which increased in volume in 2001. Holiday travellers also accounted for a similar percentage of the total spend on domestic tourism (at 44.2%), as did business and the VFR market (23.7% and 25.3% respectively). For overnight travellers, transport accounted for 26.8% of their spending, food accounted for 24.9% and accommodation accounted for 18.2%. Private vehicles were the most popular method of transport for overnight travellers, accounting for over 82% of the total means of travel. This was followed by just 10.6% for air travel. Buses, trains and other forms of transport appear to be on the decline for overnight tourists. The most popular destination for domestic overnight tourists is the Waikato




103

region, which received 2.86 million overnight visitors in 2001. This was followed by Auckland, then the Bay of Plenty, Canterbury and Wellington. Over two-thirds of domestic tourists stayed in non-commercial or private accommodation. The total nights stayed in commercial properties has remained fairly constant, with the decreases in domestic travel usually being taken from the private accommodation segment. Forecasts by the Tourism Research Council (2002) estimate that overnight visitor figures should increase to 20.9 million trips by 2008, representing an average increase of 3.4% per annum. These forecasts will equate to a total of 58.9 million visitor nights. Day trips The day trip market within New Zealand has been increasing steadily in recent years. An estimated 38.9 million day trips were made in 2001, an increase of 5.2% since 2000. The most popular day trip destination was Auckland, receiving 7.65 million visitors, followed by Waikato, Canterbury and then Wellington. The top four destinations for day-trips account for over 61.4% of total day trips within New Zealand (Table 8.11). Day trip spending generated $2.57 billion in 2001, almost 16% greater than spending for the previous year, although spending in 2000 had fallen by 10.9% from 1999 figures. 34.7% of this spending was on transport, followed by around 24% for both food and shopping. Holiday or recreation was the most recorded reason for day trips (43.1%), followed by VFR (22.7%) and business travel (16.8%). The only purpose for travel that decreased in volume was the VFR market, which fell by 2.2%. As would be expected, the most common transport method for the day trip market was private car (91.0%).

Demand for Outbound from New Zealand Demand for outbound tourism by New Zealand citizens has been growing rapidly over the last decade or so (Table 8.14). Massive increases in outbound figures were recorded in the mid-1990s (with a peak of 18.8% growth from 1995 to 1996), although in 2001 and 2002 growth figures were at or below 0.5%, possibly due to the uncertainty about international travel generated by the September 11 2001 terrorist attacks and the Bali Bombings in 2002. In 2002 1.29 million New Zealand citizens departed on short-term overseas travel. This is a total increase of 80.4% from 1990 figures, and just below one-third of the total population for New Zealand. Despite the slow-down in growth in recent years, forecasts estimate that outbound tourism will increase to 1.7 million by 2008, representing an average increase of 4% per annum. The following are the key features for New Zealand’s outbound travel market:



104


• The most popular destination for outbound travel is Australia, which hosted over 50.3% of New Zealand travellers in 2002. The other major destinations were USA (5%), Fiji (5%) and UK (5%) (Table 8.15). • The seasonality pattern for outbound tourism closely follows public holidays and school holiday programmes, with peaks recorded in December, March/April, June and September. • Over 40% of outbound tourism is attributed to the holiday market in 2002, with 29% travelling to visit friends and relatives, possibly immigrants returning to their birth country for special occasions. Business travel accounted for 16.5% of outbound travel, although this figure is most likely underestimated as New Zealand departure cards were altered to include a conference/convention section and this is recorded under ‘other’ in purpose for travel summaries. (Note: ‘Other’ recorded 11.9% in 2002, and increased by around 5500 responses in 2000 when the cards were changed) (Table 8.16). • Over 50% of outbound tourists were male, and over half of all travellers were between 30 and 55 years of age. • The length of stay for long-haul destinations such as the USA and UK is far greater than short-haul destinations like Australia (31.75 days and 48.33 days respectively compared to 13.17 days) (Table 8.17).

Case study The impact of the America’s Cup on tourism in New Zealand After a successful America’s Cup campaign in 1995 with the yacht Black Magic, New Zealand was presented with the charge of hosting the America’s Cup for the 1999/2000 regatta. This event, and the subsequent success of Team New Zealand, presented the opportunity to host the regatta again in 2002, and offered many significant benefits to the New Zealand economy, in particular the New Zealand tourism industry. The hosting of the regatta involved considerable development of the Viaduct area in Auckland, which was largely supported by government and private investment. Economic benefits from tourism spending were augmented by the presence of syndicate teams operating for many months in the Auckland area, all of whom provided income to the travel, accommodation and food and beverage industries. It is estimated that total direct and indirect expenditure came to $165 million due to the hosting of the America’s Cup. Whilst the majority of this spending benefited the Auckland area specifically, on-spend throughout the country was, although not officially quantified, estimated to be considerable. That is, tourists who visited the Auckland region specifically for the Regatta were also likely to




105

visit other regions of New Zealand while in the country. Further to the injections of foreign exchange as a result of the hosting of the America’s Cup, 1470 full-time equivalent employment positions were created. Other benefits to the New Zealand tourism industry as a result of the hosting of two America’s Cup regatta’s included: • Just in the year leading up to the 2002 America’s Cup defence, the accommodation and hospitality sectors earned over $24 million. • The multi-million dollar investment into Auckland’s viaduct and the creation of accommodation, food and beverage and other tourism infrastructure remains a legacy for the Auckland community to capitalise on in order to continue to grow its tourism industry. • Media exposure of the America’s Cup was significant and the ‘free’ promotion of New Zealand to international markets is estimated to have created a significant pull-factor for the New Zealand tourism industry.

Table 8.1 Inbound visitors to New Zealand, 1992–2002 Year

Number of visitors

Change (%)

2008*

2,860,000*

+ 18.67

2005*

2,410,000*

+ 17.85

2002

2,045,064

+ 7.11

2001

1,909,381

+ 6.86

2000

1,786,765

+ 11.17

1999

1,607,241

+ 8.27

1998

1,484,512

– 0.85

1997

1,497,183

– 2.06

1996

1,528,720

+ 8.51

1995

1,408,795

+ 6.52

1994

1,322,565

+ 14.31

1993

1,156,978

+ 9.60

1992

1,055,681

+ 9.57

1991

963,470

Source: Tourism Research Council New Zealand (2003b) Note: * = forecast figures


–



106

Table 8.2 Inbound visitors to New Zealand by country of origin, 1997–2002 Country of origin Argentina Australia Austria

1997

1998

1999

2000

2001

2002

3,565

4,209

5,001

5,271

4,680

2,603

433,010

501,892

523,428

273,862

630,549

632,470

4,459

4,313

4,234

5,001

4,804

4,824

Bahrain

290

227

292

306

326

291

Belgium

2,179

2,744

2,912

3,688

3,623

3,962

Brazil Canada Chile

3,910

3,478

3,484

4,632

5,664

5,735

29,682

31,016

33,296

32,971

36,694

39,669

881

963

1,016

1,078

1,123

1,438

17,551

16,410

23,241

33,502

53,174

76,534

Denmark

7,223

7,237

7,265

7,371

7,426

8,001

Finland

1,458

1,925

2,008

1,940

2,062

2,091

China

France

6,543

7,404

9,300

10,716

10,934

13,239

Germany

46,698

46,481

46,243

51,451

52,482

48,951

Hong Kong

30,392

28,913

29,694

29,942

30,439

28,873

190

84

136

174

77

138

India

4,764

5,315

6,602

8,327

12,665

17,270

Ireland

4,515

5,655

7,011

9,559

11,252

13,489

Israel

3,601

3,984

4,125

5,430

7,149

7,481

Italy

5,315

5,850

7,173

7,885

6,632

8,379

161,046

152,977

147,345

151,373

149,085

173,567

181

227

294

304

237

181

Iceland

Japan Kuwait Luxembourg Malaysia Mexico

299

249

240

295

360

324

18,139

14,008

17,174

20,531

21,074

22,195

1,193

1,274

1,810

2,066

2,020

3,035

16,226

17,374

19,553

23,873

25,164

26,037

Norway

2,467

2,792

3,293

3,863

4,033

4,086

Saudi Arabia

1,016

1,096

1,180

1,171

1,289

1,503

Singapore

27,527

26,743

33,903

35,725

32,808

34,019

South Africa

13,705

15,264

14,896

16,200

17,229

15,790

South Korea

108,266

17,686

43,234

66,581

87,167

109,936

2,398

3,082

3,834

4,157

4,200

5,030

Netherlands

Spain Sweden Switzerland


7,969

9,101

9,615

11,287

10,575

12,309

12,239

12,251

12,093

13,441

14,155

15,233



107

Table 8.2 (cont.) Inbound visitors to New Zealand by country of origin, 1997–2002 Country of origin

1997

1998

1999

2000

2001

2002

Taiwan

45,857

40,375

40,228

40,848

36,188

38,358

Thailand

22,035

14,341

23,246

26,693

20,814

24,832

1,248

1,278

1,622

1,814

2,184

2,574

UK

148,182

155,290

168,271

200,250

211,646

236,986

USA

143,574

162,343

180,881

195,781

187,381

205,289

51,486

5,701

56,811

47,989

59,044

58,913

United Arab Emirates

Not specified Other countries Total

105,904

101,650

111,257

129,417

140,973

139,429

1,497,183

1,484,512

1,607,241

1,786,765

1,909,381

2,045,064

–

– 0.84

+ 8.27

+ 11.36

+ 6.86

% Change

+ 7.11

Source: Tourism Research Council New Zealand (2003b)

Table 8.3 New Zealand’s Top 10 major international markets by country of residence, 2002 Country of residence

Number of visitors

% of visitors

1 Australia

632,470

30.93

854,800

29.89

2 United Kingdom

236,986

11.59

373,500

13.06

3 United States of America

205,289

10.04

244,700

8.56

4 Japan

173,567

8.49

212,700

7.44

5 South Korea

109,936

5.38

201,600

7.05

6 China

76,534

3.74

159,600

5.58

7 Germany

48,951

2.39

56,300

1.97

8 Canada

39,669

1.94

46,500

1.63

9 Taiwan

38,358

1.88

45,200

1.58

10 Singapore

Number of % of visitors visitors – 2008 – 2008 forecast forecast

34,019

1.66

41,400

1.45

Total for 10 top markets

1,595,779

78.03

2,236,300

78.19

Total visitors (all markets)

2,045,064

100.00

2,860,000

100.00

Source: Tourism Research Council New Zealand (2003b)




108

Table 8.4 New Zealand inbound visitors by purpose of visit, 2001 and 2002 Purpose of visit

Business Holiday/vacation VFR

Number of % of Number of % of % Change Number of visitors – visitors – visitors – visitors – – 2001 to visitors – 2002 2002 2001 2001 2002 2008* 251,686

12.31

247,448

12.96

1.71

286,900

1,073,908

52.51

989,426

51.82

8.54

1,490,000

522,448

25.55

499,730

26.17

4.55

771,000

9.05

14.03

312,100

7.11

2,860,000

Other

197,022

Total

2,045,064

9.63 100

172,777 1,909,381

100

Source: Tourism Research Council New Zealand (2003b) Note: * = forecast figures

Table 8.5 New Zealand International visitor expenditure by purpose of visit, 1998–2002 1998

1999

2000

2001

2002

%2002

Holiday People Total spend ($NZ million) Average spend

728,122 20,292.5 2,787

819,583 2470.9 3015

907,505 2998.2 3304

946,896 1,011,143 3159.4 3553.0 3337 3514

56.32 57.86 –

VFR People Total spend ($NZ million) Average spend

271,643 393.8 1,450

284,830 504.5 1771

262,717 537.0 2044

299,095 671.0 2243

315,551 703.9 2231

17.57 11.46 –

Business People Total spend ($NZ million) Average spend

244,742 468.2 1,913

227,974 540.4 2370

272,182 546.4 2007

284,795 647.1 2272

290,018 703.7 2426

16.15 11.46 –

Other People Total spend ($NZ million) Average spend

99,381 323.9 3,259

107,486 381.5 3549

143,396 685.6 4781

164,597 758.0 4605

178,755 118.0 6602

9.96 1.9 –

Total 1,343,888 1,439,873 1,585,800 1,695,383 1,795,467 People 3,215.2 3897.3 4767.2 5235.5 6140.7 Total spend 2393 2707 3006 3088 3420 ($NZ million) Average spend Source: Tourism Research Council New Zealand (2003c) Note: Figures calculated at end of December and may differ from other total arrival figures


100 100 –



109

Table 8.6 New Zealand international visitors by gender and length of stay, 1998–2002 1998 Number Male Female Total

1999 %

784,529

52.8

699,983

47.2

1,484,512 100

2000

Number

%

846,228

52.6

761,013

47.4

1,607,241 100

Number

2001 %

Number

932,359

52.1

854,406

47.9

1,786,765 100

2002 %

Number

%

991,578

51.9

1,059,504

51.7

917,803

48.1

985,560

48.3

1,909,381 100

2,045,064 100

Total visitors by length of stay (days)

Oceania: A Tourism Handbook (Aspects of Tourism)

Tourism Ethics (Aspects of Tourism)

Wildlife Tourism (Aspects of Tourism)

North America: A Tourism Handbook (Aspects of Tourism)

Progressing Tourism Research (Aspects of Tourism, 9)

Philosophical Issues in Tourism (Aspects of Tourism)

Progressing Tourism Research (Aspects of Tourism, 9)

Polar Tourism: An Environmental Perspective (Aspects of Tourism)

Classic Reviews in Tourism (Aspects of Tourism, 8)

Tourism Employment: Analysis and Planning (Aspects of Tourism, 6)

Zoos and Tourism: Conservation, Education, Entertainment? (Aspects of Tourism)

Shopping Tourism, Retailing, and Leisure (Aspects of Tourism)

Tourism, Recreation, and Climate Change (Aspects of Tourism)

Sport Tourism: Interrelationships, Impacts and Issues (Aspects of Tourism, 14)

Music and Tourism: On the Road Again (Aspects of Tourism)

Recreational Tourism: Demands and Impacts (Aspects of Tourism , 11)

Nordic Tourism: Issues and Cases (Aspects of Tourism)

Mallorca and Tourism: History, Economy and Environment (Aspects of Tourism)

Tourism and Tourism Spaces

Lake Tourism: An Integrated Approach to Lacustrine Tourism Systems (Aspects of Tourism)

An International Handbook of Tourism Education (Advances in Tourism Research)

A companion to tourism

Battlefield Tourism (Advances in Tourism Research)

Adventure Tourism

Olympic Tourism

Sustainable Tourism

River Tourism

Global Tourism

Giants of Tourism

Oceania: A Tourism Handbook (Aspects of Tourism)

Tourism Ethics (Aspects of Tourism)

Wildlife Tourism (Aspects of Tourism)

North America: A Tourism Handbook (Aspects of Tourism)

Progressing Tourism Research (Aspects of Tourism, 9)

Philosophical Issues in Tourism (Aspects of Tourism)

Progressing Tourism Research (Aspects of Tourism, 9)

Polar Tourism: An Environmental Perspective (Aspects of Tourism)

Classic Reviews in Tourism (Aspects of Tourism, 8)

Tourism Employment: Analysis and Planning (Aspects of Tourism, 6)

Zoos and Tourism: Conservation, Education, Entertainment? (Aspects of Tourism)

Shopping Tourism, Retailing, and Leisure (Aspects of Tourism)

Tourism, Recreation, and Climate Change (Aspects of Tourism)

Sport Tourism: Interrelationships, Impacts and Issues (Aspects of Tourism, 14)

Music and Tourism: On the Road Again (Aspects of Tourism)

Recreational Tourism: Demands and Impacts (Aspects of Tourism , 11)

Nordic Tourism: Issues and Cases (Aspects of Tourism)

Mallorca and Tourism: History, Economy and Environment (Aspects of Tourism)

Tourism and Tourism Spaces

Lake Tourism: An Integrated Approach to Lacustrine Tourism Systems (Aspects of Tourism)

An International Handbook of Tourism Education (Advances in Tourism Research)

A companion to tourism

Battlefield Tourism (Advances in Tourism Research)

Adventure Tourism

Olympic Tourism

Sustainable Tourism

River Tourism

Global Tourism

Giants of Tourism

Recommend Documents