Agency Outline

Tasmania's tourism industry is made up of around 2 000 separate businesses. Tasmania's tourism industry directly and indirectly supports around 36 700 jobs in Tasmania (15.3 per cent of total Tasmanian employment) and contributes about $2.6 billion to the economy (9.9 per cent of the gross state product).

In the year to December 2016, we welcome a record-breaking 1.24 million visitors, seven per cent more than the previous year. At the same time, visitor expenditure increased 10 per cent to $2.14 billion. This strong growth highlights our continuing appeal and puts us well on track to meeting our goal of 1.5 million visitors a year by 2020.

Our challenge now is to generate more demand for travel to Tasmania by growing our appeal, giving people more reasons to visit and making it easier for them to get here.

Through its destination marketing programs, Tourism Tasmania plays an important role in achieving the Government and tourism industry's goals of attracting 1.5 million visitors a year to Tasmania by 2020, generating $2.5 billion of visitor spending, maintaining regional dispersal, increasing visitor satisfaction and creating 44 500 direct and indirect tourism jobs.

The 2017-18 Budget and Forward Estimates include an additional $11 million for tourism marketing across the Forward Estimates. The additional funding will be directly invested in domestic and international marketing programs to stimulate demand for leisure travel in Tasmania.

The tourism goals are part of the industry and Government's tourism blueprint, Tourism 21 (T21) ‑ The Tasmanian Visitor Economy Strategy 2015‑2020, which was released in November 2015.

Through T21, the Government and industry are collectively focused on achieving these goals 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 the T21 goals is achieved by stimulating more demand for leisure travel to Tasmania and attracting more leisure visitors through the use of brand‑aligned content, advocacy, partnerships and improved access.

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.

As part of this collaboration, the Authority provides the Secretariat for the Premier's Visitor Economy Advisory Committee, the T21 Steering Committee and the Access Working Group. 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.

 

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 attracting domestic and international leisure visitors to the State. Tourism Tasmania aims to connect people culturally and emotionally to Tasmania through its domestic and international marketing programs.

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

This chapter details the Authority's financial information for 2017-18 and over the Forward Estimates period (2018‑19 to 2020‑21).

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

	2017‑18   Budget	2018‑19 Forward Estimate	2019‑20 Forward Estimate	2020‑21 Forward Estimate
	$'000	$'000	$'000	$'000
Tourism Marketing ‑ Additional Funding	2 000	3 000	3 000	3 000

Tourism Marketing - Additional Funding

The 2017‑18 Budget and Forward Estimates include an additional $11 million for tourism marketing across the Forward Estimates. The additional funding will be directly invested in domestic and international marketing programs to stimulate demand for leisure travel to Tasmania.

Access

In line with the goals and priorities of Access 2020 and T21 ‑ The Tasmanian Visitor Economy Strategy 2015‑20, Tourism Tasmania engages with domestic air and sea carriers and international aviation carriers, to build market demand for visitors through commercial partnerships and cooperative marketing programs.

This includes the strengthening of business case demand modelling to support potential limited direct flights from key international markets, following the completion of the Hobart Airport Runway Extension project in early 2018.

Tourism Tasmania continues to engage with international carriers and develop 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.

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.

As part of its marketing repertoire, Tourism Tasmania engages 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 these stories and add depth to the Tasmanian visitor experience. The Authority shares this brand-aligned 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 channels.

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

Brand

All of Tourism Tasmania's marketing activity is 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 the State from other travel destinations and encourage a clear, consistent and compelling marketing message.

The Authority is responsible for developing and managing Tasmania's tourism brand, which includes ensuring it aligns with the overall Tasmania brand, monitoring its relevance and application in marketing campaigns and programs, and overseeing the evolution of the tourism brand 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's tourism brand and creates more demand for leisure travel to the State.

Outstanding content conveying the rich and deep stories of Tasmania is used to effectively and efficiently differentiate Tasmania in a competitive and crowded global 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.

The Authority creates and curates brand‑aligned content about Tasmania from a variety of sources including the Tasmanian community, regional tourism organisations, visitors, tourism operators and professional content generators. It also shares content with its partners for their marketing and uses it across a range of its own marketing channels, including websites, social media platforms, direct marketing programs and mainstream media. Tourism Tasmania also ensures appropriate systems and processes are in place to streamline the sharing of brand‑aligned content internally and externally between domestic and international marketing partners, tourism industry partners, tourism businesses and other stakeholders.

Partnerships

Tourism Tasmania invests in partnerships that deliver high-value visitors to Tasmania. These partnerships include cooperative marketing campaigns and promotions with a range of international and domestic partners to stimulate destination awareness as well as 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', Restaurant Australia, Aquatic and Coastal and its global Signature Experiences campaigns and programs.

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.

 

Output Information

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

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

Table 20.2:     Output Group Expense Summary

	2016-17)   Budget)	2017-18)   Budget)	2018-19) Forward) Estimate)	2019-20) Forward) Estimate)	2020-21) Forward) Estimate)
	$'000)	$'000)	$'000)	$'000)	$'000)
Minister for Tourism, Hospitality and Events
Output Group 1 - Tourism
1.1  Tourism1	27 377)	29 877)	29 673)	30 019)	30 520)
	27 377)	29 877)	29 673)	30 019)	30 520)
TOTAL	27 377)	29 877)	29 673)	30 019)	30 520)

Note:

1.   The increase in 2017-18 reflects additional funding for Tourism Marketing of $2.0 million in 2017‑18 and $3.0 million in 2018-19, 2019-20 and 2020-21.

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 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	2014‑15 Actual	2015‑16 Actual		2016‑17 Target	2017-18 Target
Visitors to Tasmania1	'000	1 147	1 168	1 288		1 359
Interstate leisure visitation to Tasmania1,2	'000	na	na	782		815
International leisure visitation to Tasmania2,3	'000	na	na	185		201
Interstate visitation to Tasmania1,4	'000	988	998	na		na
International visitation to Tasmania2,4	'000	198	224	na		na
Total holiday visitation1,5	'000	542	554	na		na
Intrastate visitation6	'000	1 271	1 252	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.   Includes holiday and VFR (visiting friends and relatives) only. It does not include visitors to Tasmania for business, education or other purposes.

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

4.   This data is no longer measured as a KPI for Tourism Tasmania. The change reflects a focus on leisure visitation as a subset of total visitors

5.   This data is a no longer measured as a KPI for Tourism Tasmania. The change reflects a focus on total leisure.

6.   This data is a no longer measured as a KPI for Tourism Tasmania. The change reflects a focus on total leisure interstate and international leisure visitors only.

 Detailed Budget Statements

Table 20.4:     Statement of Comprehensive Income

	2016‑17)   Budget)	2017‑18)   Budget)	2018‑19) Forward) Estimate)	2019‑20) Forward) Estimate)	2020‑21) Forward) Estimate)
	$'000)	$'000)	$'000)	$'000)	$'000)
Revenue and other income from transactions
Appropriation revenue ‑ recurrent1	26 800)	29 301)	29 160)	29 597)	30 098)
Other revenue	400)	400)	400)	400)	400)
Total revenue and other income from transactions	27 200)	29 701)	29 560)	29 997)	30 498)
Expenses from transactions
Employee benefits	5 855)	5 972)	6 091)	6 201)	6 329)
Depreciation and amortisation	177)	176)	113)	22)	22)
Supplies and consumables1	19 761)	22 114)	21 822)	22 117)	22 470)
Grants and subsidies	1 517)	1 547)	1 578)	1 609)	1 628)
Other expenses	67)	68)	69)	70)	71)
Total expenses from transactions	27 377)	29 877)	29 673)	30 019)	30 520)
Net result from transactions (net operating balance)	(177)	(176)	(113)	(22)	(22)
Net result	(177)	(176)	(113)	(22)	(22)
Comprehensive result	(177)	(176)	(113)	(22)	(22)

Note:

1.   The increases in Appropriation revenue ‑ recurrent and Supplies and consumables reflect additional funding received for Tourism Marketing of $2.0 million in 2017‑18 and $3.0 million in 2018‑19, 2019‑20 and 2020‑21.

 

Table 20.5:     Revenue from Appropriation by Output

	2016‑17)   Budget)	2017‑18)   Budget)	2018‑19) Forward) Estimate)	2019‑20) Forward) Estimate)	2020‑21) Forward) Estimate)
	$'000)	$'000)	$'000)	$'000)	$'000)
Minister for Tourism, Hospitality and Events
Output Group 1 ‑ Tourism
1.1  Tourism1	26 800)	29 301)	29 160)	29 597)	30 098)
	26 800)	29 301)	29 160)	29 597)	30 098)
Tourism Tasmania
Total Recurrent Services	26 800)	29 301)	29 160)	29 597)	30 098)
	26 800)	29 301)	29 160)	29 597)	30 098)
Total Revenue from Appropriation	26 800)	29 301)	29 160)	29 597)	30 098)
Controlled Revenue from Appropriation	26 800)	29 301)	29 160)	29 597)	30 098)
	26 800)	29 301)	29 160)	29 597)	30 098)

Note:

1.   The increase in appropriation reflects the additional funding received for Tourism Marketing of $2.0 million in 2017‑18 and $3.0 million in 2018‑19, 2019‑20 and 2020‑21.

 

Table 20.6:     Statement of Financial Position as at 30 June

	2017)   Budget)	2018)   Budget)	2019) Forward) Estimate)	2020) Forward) Estimate)	2021) Forward) Estimate)
	$'000)	$'000)	$'000)	$'000)	$'000)
Assets
Financial assets
Cash and deposits1	1)	74)	74)	74)	74)
Receivables1	99)	219)	219)	219)	219)
	100)	293)	293)	293)	293)
Non‑financial assets
Property, plant and equipment1	202)	305)	283)	261)	239)
Intangibles	246)	91)	....)	....)	....)
Other assets1	450)	505)	505)	505)	505)
	898)	901)	788)	766)	744)
Total assets	998)	1 194)	1 081)	1 059)	1 037)
Liabilities
Payables1	75)	49)	49)	49)	49)
Provisions1	96)	....)	....)	....)	....)
Employee benefits	1 277)	1 303)	1 303)	1 303)	1 303)
Other liabilities1	6)	54)	54)	54)	54)
Total liabilities	1 454)	1 406)	1 406)	1 406)	1 406)
Net assets (liabilities)	(456)	(212)	(325)	(347)	(369)
Equity
Accumulated funds	(456)	(212)	(325)	(347)	(369)
Total equity	(456)	(212)	(325)	(347)	(369)

Note:

1.   The variations in Cash and deposits, Receivables, Property, plant and equipment, Other assets, Payables, Provisions and Other liabilities reflect revised estimates based on 30 June 2016 actuals.

 

 

Table 20.7:     Statement of Cash Flows

	2016‑17)   Budget)	2017‑18)   Budget)	2018‑19) Forward) Estimate)	2019‑20) Forward) Estimate)	2020‑21) Forward) Estimate)
	$'000)	$'000)	$'000)	$'000)	$'000)
Cash flows from operating activities
Cash inflows
Appropriation receipts ‑ recurrent1	26 800)	29 301)	29 160)	29 597)	30 098)
Other cash receipts	400)	400)	400)	400)	400)
Total cash inflows	27 200)	29 701)	29 560)	29 997)	30 498)
Cash outflows
Employee benefits	(5 287)	(5 393)	(5 501)	(5 601)	(5 715)
Superannuation	(568)	(579)	(590)	(600)	(614)
Grants and subsidies	(1 517)	(1 547)	(1 578)	(1 609)	(1 628)
Supplies and consumables1	(19 761)	(22 114)	(21 822)	(22 117)	(22 470)
Other cash payments	(67)	(68)	(69)	(70)	(71)
Total cash outflows	(27 200)	(29 701)	(29 560)	(29 997)	(30 498)
Net increase (decrease) in cash and cash equivalents held	....)	....)	....)	....)	....)
Cash and deposits at the beginning of the reporting period	1)	74)	74)	74)	74)
Cash and deposits at the end of the reporting period	1)	74)	74)	74)	74)

Note:

1.   The increases in Appropriation receipts ‑ recurrent and Supplies and consumables reflect the additional funding received for Tourism Marketing of $2.0 million in 2017‑18 and $3.0 million in 2018‑19, 2019‑20 and 2020‑21.