21    Tourism Tasmania

Agency Outline

Tasmania’s tourism industry directly and indirectly supports around 38 000 jobs in Tasmania (15.8 per cent of total Tasmanian employment). In 2016-17, the industry contributed about $3.03 billion to the economy, an increase of $493 million on the previous financial year (10.3 per cent of the gross state product).

In the year to December 2017, Tasmania welcomed a record-breaking 1.27 million visitors, 10 per cent more than two years ago, with all regions of the State experiencing growth. Visitor expenditure has also increased by 8 per cent in the past 12 months to $2.33 billion. This strong growth highlights Tasmania’s continuing appeal to both domestic and international travellers and ensures we are on track to meet the goals set by the Government’s partnership with industry ‑ the Tourism 21 - The Tasmanian Visitor Economy Strategy 2015 ‑ 2020.

Tourism Tasmania is now firmly focused on ensuring its work contributes to the social and economic benefits of the visitor economy being more evenly shared across the State. This means encouraging travellers to travel further, stay longer and spend more.

The 2018-19 Budget and Forward Estimates include an additional $12.6 million for tourism marketing across the State to ensure Tasmania achieves targeted and sustainable growth in tourism. This growth must strike the right balance and ensure what is special about Tasmania is protected.

The additional funding will enable Tourism Tasmania to target new and existing travellers that love our place and who seek what Tasmania has to offer. It will also allow Tourism Tasmania to celebrate the State’s strengths and unique experiences and secure more flights and improved access for both visitors and Tasmanians alike.

Tourism Tasmania is a demand generator and brand leader. Its marketing program celebrates the identifiable character and spirit that makes Tasmania a special place, creating cultural and emotional connections with the State. It strives to deepen audiences’ connection with Tasmania, so they fall in love with Tasmania and visit time and time again.

Tourism Tasmania is also a leader and influencer through its knowledge base and contribution of ideas, collaborating with other government agencies and organisations involved with the visitor economy to ensure our customers are provided with a world leading visitor experience. This includes ensuring 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.

Tourism Tasmania is committed to growing its connections with industry and government through its leadership role chairing the T21 Steering Committee, leading the development of a Yield and Dispersal Action Plan  and supporting the Premiers Visitor Economy Advisory Committee and the Access Working Group; and its support for and work with a number of important industry stakeholders including the Tourism Industry Council Tasmania, the Tasmanian Visitor Information Network and, in particular, the States four regional tourism organisations.

Tourism Tasmania is a State Authority operating under the Tourism Tasmania Act 1996. Its vision is to connect travellers culturally and emotionally with our island, delivering social and economic benefits shared with all Tasmanians.

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

This chapter details Tourism Tasmania’s financial information for 2018-19 and over the Forward Estimates period (2019-20 to 2021-22).

Further information on Tourism Tasmania is provided at www.tourismtasmania.com.au.

Key Deliverables

Table 21.1 provides a summary of the Budget and Forward Estimate allocations for key deliverables within Tourism Tasmania.

Table 21.1:       Key Deliverables Statement

 

2018‑19

 

Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

$'000

$'000

$'000

$'000

 

 

 

 

 

Tourism Marketing ‑ Additional Funding

3 000

3 000

3 000

3 000

Tourism Tasmania - Tasmanian Journeys

200

200

200

….

 

 

 

 

 

Tourism Marketing - Additional Funding

The 2018‑19 Budget and Forward Estimates include an additional $12.6 million for tourism marketing. The additional funding will enable Tourism Tasmania to target new traveller markets, promote select unique Tasmanian experiences, and secure more new flights to and from Tasmania.

Unique experiences

Tasmania has a wide range of unique and niche experiences that appeal to specific interest groups. Tourism Tasmania knows that people travel the globe to pursue their passions which match closely with our product strengths. Promoting these experiences, which can be enjoyed across the entire State, will further drive visitor dispersal, contribute to increased visitor yield and more investment in regional communities.

The additional funding will enable Tourism Tasmania to develop specific programs to promote the State’s product strengths, speak to new audiences and position Tasmania as a must-visit destination across key sectors. These include cycling and mountain biking, fishing, walking, history and world heritage experiences, golf and touring/drive tourism.


 

Domestic aviation marketing support

Airline access is critical to Tasmania’s appeal as a destination. Ease of access through direct flights as well as flight frequency and connections is critical to the ongoing growth and appeal of Tasmania. Additional funding for destination and airline partnership marketing support will allow Tasmania to develop deeper, longer‑term partnerships with airlines and reach their customer base to generate travel sales and attract more visitors to Tasmania. This will assist the State to achieve the growth of an additional 420 000 air seats to/from Tasmania, required to meet its Access 2020 and T21 targets.

Funding for aviation marketing support will support an enhanced program designed to raise demand with domestic airlines for further new routes and extra capacity on existing routes (into Hobart, Launceston and Devonport) and enhance international connectivity for Tasmania via key domestic international airport hubs. 

Targeting high value travellers

Tasmania’s unique value proposition and reputation as an emerging premium experience is becoming more sought after by visitors. These travellers shape and influence future destination appeal, significantly raise brand awareness and put Tasmania on the world map as a premium, global travel destination. Tasmania has experienced increased interest from high end travellers and there is an opportunity to specifically target these individuals to visit the State.

Funding for the high end visitor segment will target a specific audience that requires a bespoke marketing approach. This approach is different, but complimentary, to Tourism Tasmania’s current brand and unique experiences marketing approach.

Tourism Tasmania - Tasmanian Journeys

The 2018-19 Budget and Forward Estimates include specific funding of $600 000 over three years to develop an integrated marketing program for the existing Great Eastern Drive and Western Wilds drive journeys with three proposed new journeys: The Northern Journey (greater Launceston), Southern Journey (greater Hobart) and North-West Journey (building on the Cradle to Coast Tasting Trail).

This integrated marketing program will ensure the drive journey experiences highlight regional differences while at the same time showcase the Tasmanian brand as a whole. This will be achieved through the creation of content to address the needs of the touring sector and by engaging consumers and leveraging opportunities provided by other partners including the Regional Tourism Organisations. This program will, in turn, encourage visitors to Tasmania to travel to the State’s regional areas and invest in local products and the wider region.

This funding is complimented by $800 000 funding allocated to the Department of State Growth to deliver the Tasmanian Journeys policy.

Lead and activate Tasmania’s tourism brand

All of Tourism Tasmania’s marketing activity is guided by a strong and distinctive Tasmanian tourism brand. This brand focuses on key aspects of the State that are both attractive and different to ensure the State stands out from other travel destinations and has a clear, consistent and compelling marketing message.

Tourism Tasmania is evolving the tourism brand to capture the changing nature of Tasmania to ensure it appeals to new and existing audiences. This work focuses on all stages of the consumer journey through branding, content generation, brand advocacy and partnering for conversion.

Tourism Tasmania also partners with industry to showcase Tasmania’s world class experiences and with Tourism Australia to promote these globally. A key priority for Tourism Tasmania, in 2018‑19, will be improving its digital marketing capability to better engage with potential visitors to Tasmania.

The brand evolution and supporting creative direction and marketing program will contribute to T21 goals of ensuring visitors stay longer, spend more and travel further.

Accessing Tasmania

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.

Tourism Tasmania works with its partners to influence travel options to the State in order to meet the demands of all consumers including travellers to Tasmania and those who live here. Tourism Tasmania will continue its work developing business cases for capacity development on key domestic routes and to secure at least one international direct flight to Tasmania, aligned with the State’s high value international tourism markets.

Tourism Tasmania’s focus on sea access will see it work with the TT-Line and industry to plan for the growing number of passengers to be delivered by the new Spirits of Tasmania, ensuring they are supported through products and experiences.

Tourism Tasmania’s work also continues with its trade and conversion partners to create immediacy of demand for travel to Tasmania and with international carriers and domestic code-share partners to enhance international connectivity to Tasmania.

Connecting with industry and government

In addition to Tourism Tasmania’s primary role in demand generation and brand activation, it connects with industry and government to inform policy on a tourism industry for the future.

In 2018-19, Tourism Tasmania will place an even greater emphasis on ensuring its work is connected with customers’ experiences on-the-ground. It will share its research and insights more widely to inform decision making and ensure the sector continues to operate with strong community support.

Tourism Tasmania continues to lead policy development through its leadership role on the T21 Steering Committee and its support of the Premier’s Visitor Economy Advisory Council. It has been charged with bringing together key stakeholders across both industry and government to develop a Yield and Dispersal Action Plan, under the broader guidance of the T21 process, to ensure the benefits of the visitor economy are shared with regional communities across Tasmania.

Targeting new and existing audiences

Tourism Tasmania targets new and existing audiences who seek enrichment through their travel experiences, love what the State has to offer and its communities. Tourism Tasmania is evolving its domestic customer segmentation to identify those who present the greatest value to Tasmania, their behaviors and attributes. This work informs Tourism Tasmania’s domestic and international marketing programs. Tourism Tasmania will continue to invest in a number of key markets both domestically and internationally to ensure it develops a balanced visitor portfolio.

In 2018-19, Tourism Tasmania will tap into ‘communities of interest’ keen to connect with the State through unique experiences. High Value Travellers will also be a focus area in partnership with Tourism Australia, as they present significant opportunities for contributing to the State’s yield and dispersal strategy.

Output Information

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

Table 21.2 provides an Output Group Expense Summary for Tourism Tasmania.

Table 21.2:       Output Group Expense Summary1

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Minister for Tourism, Hospitality and Events

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Tourism

 

 

 

 

 

1.1 Tourism2

29 877 

33 742 

33 465 

33 987 

34 350 

 

29 877 

33 742 

33 465 

33 987 

34 350 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

29 877 

33 742 

33 465 

33 987 

34 350 

 

 

 

 

 

 

Notes:

1.   Agency estimates do not include the indexation impact of any variations to agency expenditure that have been made since the finalisation of the Revised Estimates Report 2017-18 (including December Quarterly Report). For further information see chapter 1 of this Budget Paper.

2.   The increase in 2018-19 reflects additional funding for the Tourism Marketing - Additional Funding and Tourism Tasmania - Tasmanian Journeys.

Output Group 1:   Tourism

1.1 Tourism

Tourism Tasmanias purpose is to create demand for travel to the State by connecting people culturally and emotionally with our island, delivering social and economic benefits shared with all Tasmanians.

This Output primarily undertakes marketing activities that focus on building a strong distinctive tourism brand, delivering targeted marketing campaigns, and facilitating media coverage 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 growth of a strong regional tourism platform and is also responsible for ensuring that the future development and growth of Tasmanias economy is matched with access capability.

Table 21.3:       Performance Information

Performance Measure

Unit of Measure

2015-16 Actual

2016‑17 Actual

2017‑18 Target

2018-19 Target

 

 

 

 

 

 

Visitors to Tasmania1

'000

1 168

1 269

1 359

1 446

Interstate leisure visitation to Tasmania1,2

'000

na

782

815

849

International leisure visitation to Tasmania2,3

'000

na

253

201

219

Interstate visitation to Tasmania1,4

'000

998

na

na

na

International visitation to Tasmania2,4

'000

224

na

na

na

Total holiday visitation1,5

'000

554

na

na

na

Intrastate visitation6

'000

1 252

na

na

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) 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 no longer measured as a KPI for Tourism Tasmania. The change reflects a focus on total leisure.

6.   This data is 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 21.4:       Statement of Comprehensive Income

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue - recurrent1

29 301 

33 004 

32 833 

33 355 

33 718 

Other revenue

400 

610 

610 

610 

610 

Total revenue and other income from transactions

29 701 

33 614 

33 443 

33 965 

34 328 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

5 972 

6 312 

6 424 

6 557 

6 705 

Depreciation and amortisation

176 

128 

22 

22 

22 

Supplies and consumables1

22 114 

25 553 

25 269 

25 657 

26 073 

Grants and subsidies

1 547 

1 680 

1 680 

1 680 

1 480 

Other expenses

68 

69 

70 

71 

70 

Total expenses from transactions

29 877 

33 742 

33 465 

33 987 

34 350 

 

 

 

 

 

 

Net result from transactions (net operating balance)

(176)

(128)

(22)

(22)

(22)

 

 

 

 

 

 

Net result

(176)

(128)

(22)

(22)

(22)

 

 

 

 

 

 

Comprehensive result

(176)

(128)

(22)

(22)

(22)

 

 

 

 

 

 

Note:

1.   The increases in Appropriation revenue ‑ recurrent and Supplies and consumables reflect additional funding for Tourism Marketing - Additional Funding and Tourism Tasmania - Tasmanian Journeys.


 

Table 21.5:       Revenue from Appropriation by Output

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Minister for Tourism, Hospitality and Events

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Tourism

 

 

 

 

 

1.1 Tourism1

29 301 

33 004 

32 833 

33 355 

33 718 

 

29 301 

33 004 

32 833 

33 355 

33 718 

 

 

 

 

 

 

Recurrent Services

29 301 

33 004 

32 833 

33 355 

33 718 

 

29 301 

33 004 

32 833 

33 355 

33 718 

 

 

 

 

 

 

Total Revenue from Appropriation

29 301 

33 004 

32 833 

33 355 

33 718 

 

 

 

 

 

 

Controlled Revenue from Appropriation

29 301 

33 004 

32 833 

33 355 

33 718 

 

29 301 

33 004 

32 833 

33 355 

33 718 

 

 

 

 

 

 

Note:

1.   The increase in appropriation reflects additional funding for Tourism Marketing - Additional Funding and Tourism Tasmania - Tasmanian Journeys.


 

Table 21.6:       Statement of Financial Position as at 30 June

 

2018 

2019 

2020 

2021 

2022 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits1

74 

Receivables1

219 

261 

261 

261 

261 

 

293 

262 

262 

262 

262 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

Property, plant and equipment1

305 

401 

379 

357 

335 

Intangibles1,2

91 

.... 

.... 

.... 

.... 

Other assets1

505 

673 

673 

673 

673 

 

901 

1 074 

1 052 

1 030 

1 008 

 

 

 

 

 

 

Total assets

1 194 

1 336 

1 314 

1 292 

1 270 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

49 

36 

36 

36 

36 

Employee benefits

1 303 

1 312 

1 312 

1 312 

1 312 

Other liabilities

54 

57 

57 

57 

57 

Total liabilities

1 406 

1 405 

1 405 

1 405 

1 405 

 

 

 

 

 

 

Net assets (liabilities)

(212)

(69)

(91)

(113)

(135)

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

(212)

(69)

(91)

(113)

(135)

Total equity

(212)

(69)

(91)

(113)

(135)

 

 

 

 

 

 

Notes:

1.   The variations in this line item reflect revised estimates based on 30 June 2017 actuals.

2.   The decrease in Intangibles in 2018‑19 reflects the final year of amortisation for a capitalised Tourism Tasmania website.

 


 

Table 21.7:       Statement of Cash Flows

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - recurrent

29 301 

33 004 

32 833 

33 355 

33 718 

Other cash receipts

400 

610 

610 

610 

610 

Total cash inflows

29 701 

33 614 

33 443 

33 965 

34 328 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(5 393)

(5 696)

(5 798)

(5 916)

(6 047)

Superannuation

(579)

(616)

(626)

(641)

(658)

Grants and subsidies

(1 547)

(1 680)

(1 680)

(1 680)

(1 480)

Supplies and consumables

(22 114)

(25 553)

(25 269)

(25 657)

(26 073)

Other cash payments

(68)

(69)

(70)

(71)

(70)

Total cash outflows

(29 701)

(33 614)

(33 443)

(33 965)

(34 328)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

held

.... 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting

period

74 

Cash and deposits at the end of the reporting period

74