20   Tourism Tasmania

Agency Outline

Tourism Tasmania is a State Authority operating under the Tourism Tasmania Act 1996. Tourism Tasmania's role is to grow economic and social value by creating domestic and international leisure travel to the State. Tourism Tasmania's domestic and international marketing programs connect people culturally and emotionally to Tasmania.

Tasmania's tourism industry is made up of around 2 000 separate businesses. According to the estimates in 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, Tourism Tasmania plays an important role in achieving the Government and tourism industry's goal of attracting 1.5 million visitors a year to Tasmania by 2020.

This goal is part of the renewed industry and Government tourism blueprint, Tourism 21 (T21) ‑ The Tasmanian Visitor Economy Strategy 2015‑2020, which was released in November 2015.

Through T21, the Government and industry is collectively focused on achieving its goal by growing demand for travel to Tasmania; expanding air and sea access; investing in quality tourism infrastructure; and building capability, capacity and community.

Under this joint approach, Tourism Tasmania's main contribution to reaching T21's 1.5 million visitor goal is stimulating more demand for leisure travel to Tasmania, with a particular focus on brand marketing, content, brand advocacy, strategic partnerships for conversion and stakeholder engagement to inspire customer action.

Tourism Tasmania also collaborates with other government agencies and organisations involved with the visitor economy to ensure the growth in visitor numbers is matched with the supply of adequate air and sea access, new tourism experiences, accommodation, visitor services, infrastructure and a suitably skilled workforce.

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

This chapter details the Agency's financial information for 2016‑17 and over the Forward Estimates period (2017‑18 to 2019‑20).

Further information on Tourism Tasmania 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

 

2016-17

 

Budget

2017‑18

Forward

Estimate

2018‑19

Forward

Estimate

2019‑20

Forward

Estimate

 

$'000

$'000

$'000

$'000

 

 

 

 

 

Budget support for Aviation Market Development Fund

625

625

….)

….)

Tourism Marketing - Additional Funding

5 000

5 000

4 000

4 000

 

 

 

 

 

Budget support for Aviation Market Development Fund

In line with the goals and priorities of Access 2020 and T21 ‑ The Tasmanian Visitor Economy Strategy 2015‑20, Tourism Tasmania has been in a range of discussions with international aviation carriers to build market demand for visitors through commercial aviation partnerships and cooperative marketing programs.

Further market development is required to strengthen business case demand modelling to support limited direct flights from key international markets, following the completion of the Hobart Airport Runway Extension project in early 2018.

The Aviation Market Development Fund is for dedicated cooperative international airline marketing partnerships through the establishment of specific airline codeshare arrangements and cooperative marketing agreements to accelerate growth of Tasmanian visitors on their networks. This will establish demand through domestic partner airlines and longer term marketing for direct aviation access services. It will also assist market take up of increased domestic seat capacity into Tasmania, supporting domestic aviation partner activity.

Brand advocacy

Research shows that in today's travel marketplace, word of mouth and third party referrals play a crucial role in people's holiday decision making. Analysis of social media also reveals that Tasmanians are very involved in providing helpful and unbiased personal insights and travel ideas for visitors and people who are planning, or considering, a Tasmanian holiday.

As part of its marketing repertoire, Tourism Tasmania engages and enlists its stakeholders and customers to support the destination brand, facilitating the sharing of Tasmania's rich stories and harnessing the power and passion of Tasmanians to tell our story and add depth to the Tasmanian visitor experience. The Authority then shares this relevant brand content and stories with followers, its target audience and other strategic marketing partners in Australia and overseas through the use of its social, digital and other marketing platforms.

Global brand advocacy is also supported by social media and public relations activities through Tourism Australia's International Media Hosting Program and the Authority's own Visiting Influencer Program to broaden the reach of Tourism Tasmania's brand marketing campaigns and brand message.

Brand marketing

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 travel destinations and encourage a clear, consistent and compelling marketing message.

The Authority is responsible for developing and managing the State's tourism brand, which includes monitoring its relevance and application in marketing campaigns and programs, and overseeing the evolution of the tourism brand to maintain its relevance to ensure 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, commercial travel partners, regional tourism bodies, and internally amongst its staff.

Content

To support its domestic and international marketing activities, Tourism Tasmania places great importance on creating, curating, publishing and sharing content about Tasmania that best conveys the destination brand and creates demand for travel to the State.

Outstanding content is used to effectively and efficiently differentiate Tasmania in a competitive and crowded travel marketplace. Content plays a vital role in a consumer's decision making process by building brand awareness, creating consumer engagement with the destination, increasing sales leads and travel bookings, and building consumer advocacy and loyalty.

Content encompasses images, videos, footage, articles, blogs, stories and other assets that appeal to Tourism Tasmania's target markets in Australia and overseas, and presents Tasmania's tourism experience in the best possible light.

The Authority creates, publishes and shares brand‑aligned content about Tasmania across its websites, social media platforms, newsletters, direct marketing programs and mainstream media channels. It also ensures appropriate systems and processes are in place to streamline the sharing and distribution of brand‑aligned content internally and externally with regional tourism organisations, partners and stakeholders.

Stakeholder engagement

While Tourism Tasmania's main role is to market Tasmania interstate and internationally as a leisure travel destination, the Agency also engages and collaborates with other government agencies and organisations involved with the visitor economy to ensure the growth in visitor numbers is matched with the supply of adequate air and sea access, new tourism experiences, accommodation, visitor services, infrastructure and a suitably skilled workforce.

As part of this collaboration, the Authority provides the Secretariat for the Premier's Visitor Economy Advisory Committee and the T21 Steering Committee. It also supports and works closely with a number of important industry stakeholders including the Tourism Industry Council Tasmania, the Tasmanian Visitor Information Network and, in particular, the State's four regional tourism organisations.

 

Strategic partnerships for conversion

Tourism Tasmania invests in partnerships that deliver high value visitors for Tasmania. These partnerships include cooperative marketing campaigns and promotions with a range of international and domestic partners to stimulate travel, sales and holiday bookings for Tasmania. The Authority's partners include but are not limited to sector and special interest groups, event organisers, wholesalers, retail travel networks, carriers and inbound tour operators.

The Authority also works in partnership with Tourism Australia to promote the State through global campaigns and programs, including Tourism Australia's 'There's Nothing Like Australia' campaigns, Restaurant Australia and the new global Aquatic and Coastal campaign.

Strategic partnerships with Tourism Australia also encompass travel trade and consumer promotions in selected international markets, and marketing partnerships with domestically based inbound tour operators and youth travel chains.

Tourism Marketing - Additional Funding

The 2016‑17 Budget contains the additional $5 million for tourism marketing activity provided in the previous two budgets, consisting of $4 million per annum over the Forward Estimates and an additional $3 million provided in 2015‑16 Budget over three years. This additional funding has been directly invested in domestic and international marketing programs to stimulate demand for leisure travel to Tasmania.

Output Information

Tourism Tasmania has an individual output: Output Group 1 ‑ Tourism.

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

Table 20.2:        Output Group Expense Summary

 

2015‑16)

 

Budget)

2016‑17)

 

Budget)

2017‑18)

Forward)

Estimate)

2018‑19)

Forward)

Estimate)

2019‑20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Output Group 1 ‑ Tourism

 

 

 

 

 

1.1  Tourism1

 26 690)

 27 377)

 27 878)

 26 673)

 27 019)

 

 26 690)

 27 377)

 27 878)

 26 673)

 27 019)

 

 

 

 

 

 

TOTAL

 26 690)

 27 377)

 27 878)

 26 673)

 27 019)

 

 

 

 

 

 

Note:

1.   The decrease in 2018‑19 reflects the cessation of additional initiative funding for tourism marketing (an additional $1 million was provided in the 2015‑16 Budget for 2015‑16, 2016‑17 and 2017‑18, on top of an ongoing $4 million per annum increase in tourism marketing funding provided in the 2014‑15 Budget) and Budget support for Aviation Market Development Fund.

Output Group 1:   Tourism

1.1 Tourism

Tourism Tasmania's role is to create demand for travel to the State by connecting people culturally and emotionally to Tasmania through domestic and international marketing programs that lead and activate the Tasmanian brand, and grow economic and social value.

This Output primarily undertakes 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 Australian and international markets.

The Output 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.

This Output also supports the development and the growth of a strong regional tourism platform, and is also responsible for ensuring that the future development and growth of Tasmania's economy is matched with access capability.

Table 20.3:        Performance Information

Performance Measure

Unit of Measure

2013‑14 Actual

2014‑15 Actual

2015‑16 Target

2016‑17 Target

 

 

 

 

 

 

Visitors to Tasmania1

'000

1 058

1 147

1 155

1 288

Interstate leisure visitation to Tasmania1,2

'000

na

na

na

782

International leisure visitation to Tasmania2,3

'000

na

na

na

185

Interstate visitation to Tasmania1,4

'000

910

988

974

na

International visitation to Tasmania3,4

'000

163

198

181

na

Total holiday visitation1,5

'000

478

542

520

na

Intrastate visitation6,7

'000

1 225

1 271

1 249

na

Local tourism strategies with Regional Tourism Organisations

Number

4

4

4

 

4

 

 

 

 

 

 

Notes:

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

2.   Includes holiday and VFR (visiting friends and relatives) visitors only. It does not include visitors to Tasmania for business, education or other purposes.

3.   Data for International leisure visitation to Tasmania is sourced from the International Visitors Survey.

4.   From 2016‑17, Interstate visitation to Tasmania and International visitation to Tasmania have been replaced by Interstate leisure visitation to Tasmania and International leisure visitation to Tasmania, respectively, as performance measures for Tourism Tasmania. The change reflects a focus on leisure visitation as a subset of total visitors.

5.   From 2016‑17, Total holiday visitation is no longer a performance measure for Tourism Tasmania. The change reflects a focus on total leisure travel.

6.   From 2016‑17, Intrastate visitation has been replaced by Interstate leisure visitation and International leisure visitation as performance measures for Tourism Tasmania.

7.   Intrastate visitation data is sourced from the National Visitor Survey.


 

Detailed Budget Statements

Table 20.4:        Statement of Comprehensive Income

 

2015‑16)

 

Budget)

2016‑17)

 

Budget)

2017‑18)

Forward)

Estimate)

2018‑19)

Forward)

Estimate)

2019‑20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue ‑ recurrent1

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

Sales of goods and services2,3

  610)

....)

....)

....)

....)

Other revenue2,3

....)

  400)

  400)

  400)

  400)

Total revenue and other income from transactions

 26 500)

 27 200)

 27 701)

 26 560)

 26 997)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits3

 6 174)

 5 855)

 5 972)

 6 091)

 6 201)

Depreciation and amortisation

  190)

  177)

  177)

  113)

  22)

Supplies and consumables1,3

 18 561)

 19 761)

 20 114)

 18 822)

 19 117)

Grants and subsidies3

 1 677)

 1 517)

 1 547)

 1 578)

 1 609)

Other expenses3

  88)

  67)

  68)

  69)

  70)

Total expenses from transactions

 26 690)

 27 377)

 27 878)

 26 673)

 27 019)

 

 

 

 

 

 

Net result from transactions (net operating balance)

(190)

(177)

(177)

(113)

(22)

 

 

 

 

 

 

Net result

(190)

(177)

(177)

(113)

(22)

 

 

 

 

 

 

Comprehensive result

(190)

(177)

(177)

(113)

(22)

 

 

 

 

 

 

Notes:

1.   The decreases in Appropriation revenue ‑ recurrent and Supplies and consumables in 2018‑19 reflect the cessation of additional initiative funding for tourism marketing (an additional $1 million was provided in the 2015‑16 Budget for 2015‑16, 2016‑17 and 2017‑18, on top of an ongoing $4 million per annum increase in tourism marketing funding provided in the 2014‑15 Budget) and Budget support for Aviation Market Development Fund.

2.   The variations in Sales of goods and services and Other revenue in 2016‑17 reflect a reclassification based on 30 June 2015 actuals.

3.   The variations in Sales of goods and services, Other revenue, Employee benefits, Supplies and consumables, Grants and subsidies and Other expenses in 2016‑17 reflect revised estimates based on 30 June 2015 actuals.


 

Table 20.5:        Revenue from Appropriation by Output

 

2015‑16)

 

Budget)

2016‑17)

 

Budget)

2017‑18)

Forward)

Estimate)

2018‑19)

Forward)

Estimate)

2019‑20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Minister for Tourism, Hospitality and Events

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 ‑ Tourism

 

 

 

 

 

1.1  Tourism1

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

 

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

 

 

 

 

 

 

Tourism Tasmania

 

 

 

 

 

Total Recurrent Services

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

 

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

 

 

 

 

 

 

Total Revenue from Appropriation

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

 

 

 

 

 

 

Controlled Revenue from Appropriation

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

 

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

 

 

 

 

 

 

Note:

1.   The decrease in 2018‑19 reflects the cessation of additional initiative funding for tourism marketing (an additional $1 million was provided in the 2015‑16 Budget for 2015‑16, 2016‑17 and 2017‑18, on top of an ongoing $4 million per annum increase in tourism marketing funding provided in the 2014‑15 Budget) and Budget support for Aviation Market Development Fund.


 

Table 20.6:        Statement of Financial Position as at 30 June

 

2016)

 

Budget)

2017)

 

Budget)

2018)

Forward)

Estimate)

2019)

Forward)

Estimate)

2020)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

  16)

  1)

  1)

  1)

  1)

Receivables

  108)

  99)

  99)

  99)

  99)

 

  124)

  100)

  100)

  100)

  100)

Non‑financial assets

 

 

 

 

 

Property, plant and equipment1

  164)

  202)

  180)

  158)

  136)

Intangibles

  401)

  246)

  91)

....)

....)

Other assets1

  541)

  450)

  450)

  450)

  450)

 

 1 106)

  898)

  721)

  608)

  586)

 

 

 

 

 

 

Total assets

 1 230)

  998)

  821)

  708)

  686)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables1

  60)

  75)

  75)

  75)

  75)

Provisions1

  340)

  96)

  96)

  96)

  96)

Employee benefits

 1 165)

 1 277)

 1 277)

 1 277)

 1 277)

Other liabilities

  5)

  6)

  6)

  6)

  6)

Total liabilities

 1 570)

 1 454)

 1 454)

 1 454)

 1 454)

 

 

 

 

 

 

Net assets (liabilities)

(340)

(456)

(633)

(746)

(768)

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

(340)

(456)

(633)

(746)

(768)

Total equity

(340)

(456)

(633)

(746)

(768)

 

 

 

 

 

 

Note:

1.   The variations in Property, plant and equipment, Other assets, Payables and Provisions in 2016‑17 reflect revised estimates based on 30 June 2015 actuals.

 


1.    

Table 20.7:        Statement of Cash Flows

 

2015‑16)

 

Budget)

2016‑17)

 

Budget)

2017‑18)

Forward)

Estimate)

2018‑19)

Forward)

Estimate)

2019‑20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts ‑ recurrent1

 25 890)

 26 800)

 27 301)

 26 160)

 26 597)

Sales of goods and services2,3

  610)

....)

....)

....)

....)

Other cash receipts2,3

....)

  400)

  400)

  400)

  400)

 Total cash inflows

 26 500)

 27 200)

 27 701)

 26 560)

 26 997)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits3

(5 439)

(5 287)

(5 393)

(5 501)

(5 601)

Superannuation3

(735)

(568)

(579)

(590)

(600)

Grants and subsidies3

(1 677)

(1 517)

(1 547)

(1 578)

(1 609)

Supplies and consumables1,3

(18 561)

(19 761)

(20 114)

(18 822)

(19 117)

Other cash payments

(88)

(67)

(68)

(69)

(70)

Total cash outflows

(26 500)

(27 200)

(27 701)

(26 560)

(26 997)

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

....)

....)

....)

....)

....)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

  16)

  1)

  1)

  1)

  1)

Cash and deposits at the end of the reporting period

  16)

  1)

  1)

  1)

  1)

 

 

 

 

 

 

Notes:

1.   The decreases in Appropriation receipts ‑ recurrent and Supplies and consumables in 2018‑19 reflect the cessation of additional initiative funding for tourism marketing (an additional $1 million was provided in the 2015‑16 Budget for 2015‑16, 2016‑17 and 2017‑18, on top of an ongoing $4 million per annum increase in tourism marketing funding provided in the 2014‑15 Budget) and Budget support for Aviation Market Development Fund.

2.   The variations in Sales of goods and services and Other cash receipts in 2016‑17 reflect a reclassification based on 30 June 2015 actuals.

3.   The variations in Sales of goods and services, Other cash receipts, Employee benefits, Superannuation, Grants and subsidies and Supplies and consumables in 2016‑17 reflect revised estimates based on 30 June 2015 actuals.