20   Tourism Tasmania

Agency Outline

Tourism Tasmania is a State Authority under the State Service Act 2000. The Tourism Tasmania Act 1996 outlines the objective and functions of the Authority, which is to market Tasmania as a holiday destination and maximise tourism's contribution to the economy.

Tasmania's tourism industry is made up of over 2 000 separate businesses. Based on information from the Tourism Satellite Accounts 2013‑14 (Tourism Research Australia, May 2015, Appendix, Tables 14 and 15), Tasmania’s tourism industry directly and indirectly supports around 37 000 jobs in Tasmania (16.2 per cent of total Tasmanian employment) and contributes about $2.3 billion to the economy (9.1 per cent of the gross state product).

Through its destination marketing programs, the Authority will play a key role in achieving the Government and tourism industry's goal of attracting 1.5 million visitors per annum to Tasmania by 2020. The goal forms part of the joint industry and government tourism blueprint, Tourism 21 (T21). T21 brings the public and private sectors of tourism together under a common shared vision for the growth of the State's 'visitor economy', and the Authority collaborates with the industry and other government agencies to review and deliver the agreed T21 strategies. The Authority contributes to the T21 goal by creating demand for holiday travel to Tasmania through market and visitor research, brand development, domestic marketing, international marketing, access development and partnerships with the State's four Regional Tourism Organisations.

The Authority's research programs provide insights into Tasmania's markets and visitors; what makes Tasmania good but different as a destination; the strength of the experiences it offers; and the Tasmanian tourism brand.

These insights inform the Authority's marketing programs and campaigns which aim to emphasise the State's tourism brand, enhance Tasmania's holiday appeal and consideration, and convert this to attract more visitors to the State.

To support its own marketing programs, the Authority also works closely with domestic and international tourism and commercial travel partners, to facilitate the sharing and promotion of Tasmanian tourism experiences, and stimulate increased holiday travel bookings and sales.

The Authority supports the Minister for Tourism, Hospitality and Events, Hon Will Hodgman MP.

This chapter details the Authority's financial information for 2015‑16 and over the Forward Estimates period (2016‑17 to 2018‑19).

Further information on the Authority is provided at www.tourismtasmania.com.au.

 

 

Key Deliverables

Table 20.1 provides a summary of the Budget and Forward Estimate allocations for key deliverables within the Authority.

Table 20.1:        Key Deliverables Statement

 

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

Tourism Marketing ‑ Additional Funding

5 000)

5 000)

5 000)

4 000 )

 

 

 

 

 

Tourism Marketing ‑ Additional Funding

As part of the 2015‑16 Budget, the Government will invest an additional $3 million into tourism marketing ($1 million per annum for three years), building on the existing $4 million per annum election commitment provided in the 2014‑15 Budget.

Access

Aviation and Access Development is a whole‑of‑government function supported by the Authority. From a tourism perspective, the aim is to ensure there are sufficient domestic and international air and sea services to support the demand for travel to and from Tasmania.

A long‑term Access 2020 plan has been developed which is aligned with the Government's visitor growth target. The delivery of the Plan, which includes immediate and longer term requirements to achieve the Government target, has commenced.

The Plan focuses on increasing domestic air capacity, providing direct and improved international air access, developing effective air freight solutions and supporting the ongoing development of Tasmania's sea capacity. Collaboration with investment and trade opportunities will also occur to deliver further access opportunities and increased, viable air and sea services to Tasmania. 

Brand

All of the Authority's marketing programs and campaigns are guided by a strong and distinctive Tasmanian tourism brand. Tasmania's tourism brand focuses on key aspects of the State that are both good and different to differentiate Tasmania from other holiday destinations and encourage a clear, consistent and compelling marketing message.

The Authority is responsible for developing and managing the State's tourism brand. This includes monitoring its relevance and application in marketing campaigns and programs; overseeing the evolution of the tourism brand to maintain its relevance; and ensuring Tasmania continues to stand out from competing destinations.

The Authority also continues to broaden the Industry's understanding of Tasmania's tourism brand through the education of key stakeholders including government, industry, regional tourism bodies, commercial travel partners and internally amongst its staff.

Domestic marketing

The Authority conducts a range of marketing activities and campaigns in Australia that aim to build brand awareness for Tasmania and facilitate the conversion of this awareness into travel sales.

The Authority's domestic marketing is mainly focussed on Victoria, New South Wales and South East Queensland. The Authority's marketing reach includes existing target audiences and potential new market segments within Australia which are being regularly monitored and refined to ensure the best possible match to the State's tourism brand and holiday experiences.

Marketing campaigns use a range of advertising and digital assets to raise awareness of Tasmania and are supported by cooperative marketing with aviation, access and retail travel partners, Regional Tourism Organisations, Tasmanian travel wholesalers and individual tourism businesses.

This marketing activity is supplemented through working with special interest experiences, their partners and with peak industry bodies to reach target niche audiences.

The Authority also leverages major events that are brand aligned and have the capacity to attract significant visitor numbers.

International marketing

The Authority operates in a number of targeted international markets to promote travel to Tasmania, with a special focus on the Pan Asia region and the strong tourism growth from mainland China.

The Authority's marketing programs include cooperative campaigns and promotions with international partners such as wholesalers, retail travel networks, carriers and inbound tour operators, and participation in international sales‑oriented programs including the Australian Tourism Exchange and overseas sales and marketing missions.

The Authority also works closely with Tourism Australia to support its international campaigns and programs, including ongoing partnerships aligned to Tourism Australia's There's Nothing Like Australia campaigns which include Restaurant Australia's Best of Australia programs, its in‑market travel trade and consumer promotions, and its International Media Hosting Program.

Marketing initiatives also aim to increase international visitors to Tasmania by engaging with domestically‑based inbound tour operators, as well as international backpackers and students while they are in Australia.

Both domestic and international marketing is also supported by social media and public relations activities, like the visiting influencer program, which broadens the reach of marketing campaigns and Tourism Tasmania's brand message.


 

Regional Tourism

As part of its industry and travel trade marketing partnerships, the Authority works closely with Tasmania's Regional Tourism Organisations to ensure the Tasmanian tourism brand is appropriately represented throughout all regions of the State, and to support the promotion of Tasmania's regional tourism experiences through the Authority's marketing programs.

Research

The Authority's marketing is underpinned by extensive visitor and consumer research which is undertaken, commissioned or sourced by the Authority. The Authority also undertakes research to evaluate the outcomes of its domestic marketing campaigns and to assist Tasmania's Regional Tourism Organisations in their planning and marketing activities.

Output Information

Tourism Tasmania has a single output: Output Group 1 ‑ Tourism.

Table 20.2 provides an Output Group Expense Summary for the Authority.

Table 20.2:        Output Group Expense Summary

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Minister for Tourism, Hospitality and Events

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 ‑ Tourism

 

 

 

 

 

1.1 Tourism1

 25 325)

 26 690)

 26 985)

 27 486)

 26 905)

 

 25 325)

 26 690)

 26 985)

 27 486)

 26 905)

 

 

 

 

 

 

TOTAL

 25 325)

 26 690)

 26 985)

 27 486)

 26 905)

 

 

 

 

 

 

Note:

1.   The increase in expenses in 2015‑16 reflects additional funding of $1 million per annum over three years for tourism marketing.

Output Group 1:   Tourism

1.1 Tourism

Tourism Tasmania is a marketing‑led organisation with a specific focus on research‑driven marketing and distribution programs. Its role is to connect people to Tasmania through domestic and international marketing programs that build awareness, aspiration and intention to visit Tasmania, and convert this into more visitors coming to the State.

This Output will primarily undertake marketing activities that focus on building a strong distinctive tourism brand, delivering targeted marketing campaigns, and facilitating public relations and social media activities to create destination exposure in key markets.

This Output also includes commercial marketing partnerships with carriers, retail travel networks, online travel retailers and other distributors of Tasmanian tourism products, to stimulate holiday sales and bookings to Tasmania.

In addition, this Output is responsible for:

·       the provision of useful and highly relevant research to Tourism Tasmania, local tourism operators and other relevant businesses, so they can successfully plan and implement their business and marketing strategies;

·       ensuring that the future development and growth of Tasmania's economy is matched with access capability; and

·       supporting the development and growth of a strong regional tourism platform.

Table 20.3:        Performance Information

Performance Measure

Unit of Measure

2012‑13 Actual

2013‑14 Actual

2014‑15 Target

2015‑16 Target

 

 

 

 

 

 

Visitors to Tasmania1

'000

962

1 058

1 100

1 155

Interstate visitation to Tasmania1

'000

839

910

957

974

International visitation to Tasmania2

'000

156

163

172

181

Total holiday visitation1

'000

384

478

473

520

Intrastate visitation3

'000

1 185

1 225

1 152

1 249

Equivalent advertising value of publicity generated4

 

 

 

 

 

International

$ million

16.8

na

na

na

Domestic

$ million

14.0

na

na

na

Local tourism strategies with Regional Tourism Organisations (RTOs)

Number

4

4

4

4

 

 

 

 

 

 

Notes:

1.   Visitors to Tasmania travelling on scheduled air and sea services.

2.   Data for this performance measure is now sourced from the International Visitors Survey.

3.   Data for this performance measure is now sourced from the National Visitor Survey.

4.   Equivalent Advertising Value (EAV) is no longer measured as a KPI of the Visiting Journalist Program (VJP). The change in KPIs reflects the VJP's greater focus on online, influencer and social media activity. Results in online and social media are not able to be measured by EAV as this measurement reflected the equivalent cost of advertising in traditional print and broadcast media outlets. The VJP and social media programs will shift to metrics based on the reach, percentage of engagement, positivity/negativity of sentiment and the number of shares that the content receives. Measurements for the VJP and social media programs are currently under review as there is currently no industry standard.


 

Detailed Budget Statements

Table 20.4:        Statement of Comprehensive Income

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue ‑ recurrent1

 24 563)

 25 890)

 26 175)

 26 676)

26 159)

Sales of goods and services

 600)

 610)

 620)

 620)

 620)

Total revenue and other income from transactions

 25 163)

 26 500)

 26 795)

 27 296)

 26 779)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

 5 981)

 6 174)

 6 115)

 6 264)

 6 387)

Depreciation and amortisation

 162)

 190)

 190)

 190)

 126)

Supplies and consumables1

 17 414)

 18 561)

 18 915)

 19 267)

18 627)

Grants and subsidies

 1 678)

 1 677)

 1 677)

 1 677)

 1 677)

Other expenses

 90)

 88)

 88)

 88)

 88)

Total expenses from transactions

 25 325)

 26 690)

 26 985)

 27 486)

 26 905)

 

 

 

 

 

 

Net result from transactions (net operating balance)

(162)

(190)

(190)

(190)

(126)

 

 

 

 

 

 

Net result

(162)

(190)

(190)

(190)

(126)

 

 

 

 

 

 

Other economic flows - other changes in equity

 

 

 

 

 

Other movements taken directly to equity2

(63)

....)

....)

....)

....)

Total other economic flows - other changes in equity

(63)

....)

....)

....)

....)

 

 

 

 

 

 

Comprehensive result

(225)

(190)

(190)

(190)

(126)

 

 

 

 

 

 

Notes:

1.   The increase in Appropriation revenue ‑ recurrent and Supplies and consumables in 2015‑16 reflects additional funding of $1 million per annum over three years for tourism marketing.

2.   The Other movements taken directly to equity in 2014‑15 represent once‑off movements resulting from the creation of the Department of State Growth.


 

Table 20.5:        Revenue from Appropriation by Output

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate1)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Minister for Tourism, Hospitality and Events

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 ‑ Tourism

 

 

 

 

 

1.1 Tourism1

 24 563)

 25 890)

 26 175)

 26 676)

 26 159)

 

 24 563)

 25 890)

 26 175)

 26 676)

 26 159)

 

 

 

 

 

 

Recurrent Services

 24 563)

 25 890)

 26 175)

 26 676)

26 159)

 

 24 563)

 25 890)

 26 175)

 26 676)

 26 159)

 

 

 

 

 

 

Tourism Tasmania

 

 

 

 

 

Total Recurrent Services

 24 563)

 25 890)

 26 175)

 26 676)

 26 159)

 

 24 563)

 25 890)

 26 175)

 26 676)

 26 159)

 

 

 

 

 

 

Total Revenue from Appropriation

 24 563)

 25 890)

 26 175)

 26 676)

 26 159)

 

 

 

 

 

 

Controlled Revenue from Appropriation

 24 563)

 25 890)

 26 175)

 26 676)

 26 159)

 

 24 563)

 25 890)

 26 175)

 26 676)

 26 159)

 

 

 

 

 

 

Note:

1.   The increase in Revenue from Appropriation in 2015‑16 reflects additional funding of $1 million per annum over three years for tourism marketing.

 


 

Table 20.6:        Statement of Financial Position as at 30 June

 

2015)

 

Budget)

2016)

 

Budget)

2017)

Forward)

Estimate)

2018)

Forward)

Estimate)

2019)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

 1)

 16)

 16)

 16)

 16)

Receivables1

 8)

 108)

 108)

 108)

 108)

 

 9)

 124)

 124)

 124)

 124)

Non-financial assets

 

 

 

 

 

Property, plant and equipment

 194)

 164)

 129)

 94)

 59)

Intangibles2

....)

 401)

 246)

 91)

....)

Other assets3

 1 156)

 541)

 541)

 541)

 541)

 

 1 350)

 1 106)

 916)

 726)

 600)

 

 

 

 

 

 

Total assets

 1 359)

 1 230)

 1 040)

 850)

 724)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

 77)

 60)

 60)

 60)

 60)

Provisions

 347)

 340)

 340)

 340)

 340)

Employee benefits

 1 156)

 1 165)

 1 165)

 1 165)

 1 165)

Other liabilities

 4)

 5)

 5)

 5)

 5)

Total liabilities

 1 584)

 1 570)

 1 570)

 1 570)

 1 570)

 

 

 

 

 

 

Net assets (liabilities)

(225)

(340)

(530)

(720)

(846)

 

 

 

 

 

 

Equity

 

 

 

 

 

Contributed capital

(63)

....)

....)

....)

....)

Accumulated funds

(162)

(340)

(530)

(720)

(846)

Total equity

(225)

(340)

(530)

(720)

(846)

 

 

 

 

 

 

Notes:

1.   The increase in Receivables in 2016 reflects revised estimates based on 30 June 2014 actuals.

2.   The increase in Intangibles in 2016 reflects the capitalisation of specific intangible assets including the Discover Tasmania website.

3.   The decrease in Other assets in 2016 reflects revised estimates based on 30 June 2014 actuals.


 

Table 20.7:        Statement of Cash Flows

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts ‑ recurrent1

 24 563)

 25 890)

 26 175)

 26 676)

26 159)

Sales of goods and services

 600)

 610)

 620)

 620)

 620)

 Total cash inflows

 25 163)

 26 500)

 26 795)

 27 296)

 26 779)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(5 272)

(5 439)

(5 389)

(5 520)

(5 628)

Superannuation

(709)

(735)

(726)

(744)

(759)

Grants and subsidies

(1 678)

(1 677)

(1 677)

(1 677)

(1 677)

Supplies and consumables1

(17 414)

(18 561)

(18 915)

(19 267)

(18 627)

Other cash payments

(90)

(88)

(88)

(88)

(88)

Total cash outflows

(25 163)

(26 500)

(26 795)

(27 296)

(26 779)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Equity injections and cashflows from restructuring

 1)

....)

....)

....)

....)

Net cash from (used by) investing activities

 1)

....)

....)

....)

....)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

 1)

....)

....)

....)

....)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

....)

 16)

 16)

 16)

 16)

Cash and deposits at the end of the reporting period

 1)

 16)

 16)

 16)

 16)

 

 

 

 

 

 

Note:

1.   The increase in Appropriation receipts ‑ recurrent and Supplies and consumables in 2015‑16 reflects additional funding of $1 million per annum over three years for tourism marketing.