Tourism Tasmania’s purpose is to connect travellers culturally and emotionally with the State to deliver social and economic benefits to be shared with all Tasmanians. A successful and sustainable tourism industry has benefits that are wide reaching, especially for Tasmania’s regional communities.
The Agency contributes to the success of the visitor economy by leading Tasmania’s tourism brand and generating demand for visitation to the State. It also has a role in leading and influencing the development of policy, and planning for a future visitor economy through the successful and enduring T21 partnership between government and industry.
Its marketing programs celebrate Tasmania’s uniqueness which entices customers who are aligned to our brand to travel to Tasmania. The Agency works closely with air and sea access partners to ensure adequate air and sea capacity is secured that supports visitation, and enables the Tasmanian community to access affordable options for travel in and out of the State.
Tourism Tasmania will continue to work in partnership with the many stakeholders involved in the visitor economy and lead the implementation of the T21 - Visitor Economy Action Plan 2020-22, on behalf of the Government to rebuild the tourism and hospitality industry to again contribute strongly to Tasmania’s economy, growing jobs for Tasmanians and increasing benefits for regional communities.
Tourism Tasmania is a State Authority operating under the Tourism Tasmania Act 1996. It supports the Minister for Tourism, Hon Peter Gutwein MP.
This chapter details Tourism Tasmania’s financial information for 2020-21 and over the Forward Estimates (2021-22 to 2023-24). Further information on Tourism Tasmania is provided at www.tourismtasmania.com.au.
Table 22.1 provides a summary of the Budget and Forward Estimates allocations for key deliverables being undertaken by Tourism Tasmania.
In addition to the important key deliverables identified in the below table, the agency is also taking action to support the implementation of the important recommendations included in the Premier’s Economic and Social Recovery Advisory Council’s Interim Report which have been endorsed by the Government. Where specific additional funding is not required, recommendations are being implemented within existing agency resources.
|
2020-21
Budget |
2021-22 Forward Estimate |
2022-23 Forward Estimate |
2023-24 Forward Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
COVID-19 Response and Recovery Measures |
|
|
|
|
Holiday Local Campaign |
900 |
.... |
.... |
.... |
|
|
|
|
|
Other Key Deliverables |
|
|
|
|
Tourism Marketing - Additional Funding1 |
3 000 |
3 000 |
.... |
.... |
Tourism Tasmania - Tasmanian Journeys2 |
200 |
.... |
.... |
.... |
|
|
|
|
|
Notes:
1. The Tasmanian Government announced $3 million each year in additional funding over four years for Tourism Tasmania in the 2018-19 Budget.
2. The Tasmanian Government provided $600 000 over three years for Tourism Tasmania in the 2018-19 Budget to develop an integrated marketing program and self-drive touring strategy and to support the development of a suite of five drive journeys.
The COVID-19 pandemic has had a significant impact on the Tasmanian tourism and hospitality industry, with border restrictions limiting travel and business operations impacted by the health and safety measures put in place to protect the community.
The State’s tourism and hospitality businesses will be an important contributor to rebuilding the economy and supporting jobs and regional areas. Tourism Tasmania’s role in the visitor economy has never been more important as the industry rebuilds from the impact of COVID-19.
In response to COVID-19, Tourism Tasmania has evolved its marketing program to respond to changing market conditions and enable flexibility in implementation in response to ongoing monitoring of market conditions.
The ‘Make Yourself at Home’ campaign, launched in June 2020, is an intrastate marketing campaign to encourage Tasmanians to holiday at home while interstate and international markets are not available to support the industry. Tourism Tasmania’s investment in a separate ‘Welcome Back’ campaign, to support Tasmania’s hospitality businesses, will encourage Tasmanians to visit their local businesses to reconnect with friends and families. These two programs are funded in part by the rollover of Social and Economic Support funding originally allocated in 2019-20.
Rebuilding demand for visitation to the State from local, national and available international markets will be critical to supporting the industry and State’s recovery.
Tourism Tasmania’s new tourism brand platform, Come Down for Air was launched in October 2019. The Agency’s work to evolve the tourism brand and its representation in destination marketing is designed to set the State apart in a competitive domestic destination market, and communicate to consumers in an ‘anti‑ordinary’ way.
The Agency’s marketing program holds the brand central to all of its activities and is an effective tool to communicate the destination to customers and potential customers.
The marketing strategy targets well defined segments of the travelling public in key domestic markets that are more likely to travel further, stay longer and spend more in local communities.
The work Tourism Tasmania undertakes in partnership with the Tasmanian tourism industry, air and sea access, travel trade, media and brand and events is shaped by a number of considerations, including government and industry goals, clearly defined customer segments, an understanding of the domestic and international travel market, and in-depth understanding of the Tasmanian tourism experiences.
It is delivered strategically to reach consumers through a number of mechanisms including major brand and marketing campaigns, conversion focused activity, social media, public relations, earned media, event and brand partnerships and travel trade engagement.
Tourism Tasmania is targeting visitors who travel to pursue their passions through the ‘Unordinary Adventures’ program. This initiative showcases Tasmania’s strengths and world-class experiences in the special interest areas of mountain biking, golf, fly fishing, and walking. The program provides greater depth to the marketing program and encourages regional dispersal of visitors across the State, increasing the contribution they make to local communities.
In addition to the interstate campaigns targeted at the domestic Australian market, Tourism Tasmania will develop a market strategy and campaign for delivery in New Zealand. The campaign will position Tasmania as a distinct Australian destination and build aspiration to travel to the State when international border restrictions ease. The campaign will also support demand, if direct international flights from New Zealand to Tasmania are secured.
Restoring aviation access to Tasmania will be the highest priority for the recovery of the visitor economy. Tourism Tasmania will work closely with airlines and the TT-Line to re-establish the State’s network of core routes with Adelaide, South East Queensland, Melbourne, and Sydney. The Agency will also ensure access to the State is optimised and aligned to the Tasmanian Government’s phased recovery pathway.
This will be supported through Tourism Tasmania’s demand generation marketing program, and through coordinated, cooperative marketing activity with access partners to promote conversion and drive visitation.
It will also include marketing support for a trial of direct flights from Hobart to the Bass Strait Islands of King and Flinders to support intrastate leisure visitation. This aims to improve the social, economic and cultural connectivity for islanders, with potential to transition to an ongoing schedule subject to demand.
A direct trans-Tasman flight from New Zealand to Tasmania will be a priority focus. The Agency will work in collaboration with airlines, Hobart Airport and both the Tasmanian and Australian Governments to facilitate international border processing.
This program will work hand in glove with recovery planning for the industry through the T21 - Visitor Economy Action Plan 2020-22, which charts an action plan for government and industry over the next two years. In addition to focusing on rebuilding visitation and restoring access, through the implementation of its T21 Action plan and associated six month action plans, Tourism Tasmania will provide certainty to the industry in its response to the rapidly developing environment.
The 2018-19 Budget provided $600 000 over three years to Tourism Tasmania to develop an integrated marketing program, self-drive touring strategy, and to support the development of a suite of five drive journeys. Tourism Tasmania is working with the Department of State Growth and the four regional tourism organisations to develop the drive journeys and self-drive touring holiday marketing program, supporting the industry across the State and encouraging visitors to travel further and spend more.
Tasmania has always been one of the great drive holiday destinations and, in the current environment, Tourism Tasmania knows that Australian travellers are going to be even more likely to travel by car.
The five drive journeys, Northern Forage, Great Eastern Drive, Southern Edge, Western Wilds, and Heartlands, are designed to be a tool for self-guided exploration and a way to find hidden treasures and unexpected detours through the State.
The Outputs of Tourism Tasmania are provided under:
· Output Group 1 - Tourism; and
· Output Group 90 - COVID-19 Response and Recovery.
Table 22.2 provides an Output Group Expense Summary for Tourism Tasmania.
To enable the presentation of this important information, a new Output Group has been established. Output Group 90 - COVID-19 Response and Recovery reflects expenditure allocated to specific Government COVID-19 response initiatives. Further information in relation to these outputs is provided in the Key Deliverables section of this chapter.
|
2019-20 |
2020-21 |
2021-22 |
2022-23 |
2023-24 |
|
|
|
Forward |
Forward |
Forward |
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
Minister for Tourism |
|
|
|
|
|
|
|
|
|
|
|
Output Group 1 - Tourism |
|
|
|
|
|
1.1 Tourism1 |
34 565 |
39 741 |
34 676 |
28 542 |
28 994 |
|
34 565 |
39 741 |
34 676 |
28 542 |
28 994 |
Output Group 90 - COVID-19 Response and Recovery |
|
|
|
|
|
90.1 Holiday Local Campaign2 |
.... |
400 |
.... |
.... |
.... |
|
.... |
400 |
.... |
.... |
.... |
|
|
|
|
|
|
TOTAL |
34 565 |
40 141 |
34 676 |
28 542 |
28 994 |
|
|
|
|
|
|
Notes:
1. The increase in expenditure in 2020-21 relates to funding for the Aviation Market Development Fund, Australian Tourism Exchange, and Tourism Marketing initiatives that was unable to be spent in 2019-20 due to the impacts of COVID-19. The decrease in expenditure in 2022-23 reflects the completion of fixed-term funding for tourism marketing.
2. Funding of $900 000 is available in 2020-21 for the Holiday Local Campaign, with $400 000 allocated to Output 90.1 and $500 000 allocated to Output 1.1.
3.
Tourism Tasmania’s purpose is to connect travellers culturally and emotionally with the State, delivering social and economic benefits shared with all Tasmanians.
This Output primarily undertakes marketing activities that focus on building a strong distinctive tourism brand and delivering marketing campaigns to appeal to target segments. This is achieved through facilitating positive editorial coverage with a program of social media activities to broaden Tourism Tasmania’s marketing messages 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 network and ensures that the future development and growth of Tasmania’s economy is matched with access capability.
Performance Measure |
Unit of Measure |
2017-18 Actual |
2018-19 Actual |
2019-20 Actual3 |
2020-21 Target4 |
|
|
|
|
|
|
Visitors to Tasmania1 |
'000 |
1 300 |
1 316 |
na |
TBA |
Interstate leisure visitation to Tasmania2 |
'000 |
782 |
795 |
na |
TBA |
International leisure visitation to Tasmania |
'000 |
279 |
219 |
na |
TBA |
Local tourism strategies with Regional Tourism Organisations |
Number |
4 |
4 |
4 |
4 |
|
|
|
|
|
|
Source: Tourism Research Australia for International Visitor Survey and Tourism Tasmania for Tasmanian Visitor Survey.
Notes:
1. Visitors to Tasmania travelling on scheduled air and sea services sourced from TVS.
2. Includes holiday and VFR (visiting friends and relatives) only, sourced from TVS. It does not include visitors to Tasmania for business, education or other purposes.
3. Capture of IVS and TVS data ceased in late March 2020 due to COVID-19, therefore actual visitor data for 2019-20 is not reportable.
4. Future targets are being determined through the T21 ‑ Visitor Economy partnership between industry and government.
|
2019-20 |
2020-21 |
2021-22 |
2022-23 |
2023-24 |
|
|
|
Forward |
Forward |
Forward |
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
Revenue and other income |
|
|
|
|
|
Appropriation revenue - operating1 |
33 624 |
38 523 |
33 952 |
27 812 |
28 257 |
Other revenue from government |
.... |
900 |
.... |
.... |
.... |
Other revenue |
750 |
696 |
702 |
708 |
715 |
Total revenue |
34 374 |
40 119 |
34 654 |
28 520 |
28 972 |
Total income |
34 374 |
40 119 |
34 654 |
28 520 |
28 972 |
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Employee benefits |
7 181 |
8 118 |
8 177 |
8 352 |
8 534 |
Depreciation and amortisation2 |
411 |
22 |
22 |
22 |
22 |
Supplies and consumables1,2 |
25 230 |
30 102 |
24 574 |
18 259 |
18 524 |
Grants and subsidies |
1 550 |
1 829 |
1 833 |
1 838 |
1 843 |
Borrowing costs |
123 |
.... |
.... |
.... |
.... |
Other expenses |
70 |
70 |
70 |
71 |
71 |
Total expenses |
34 565 |
40 141 |
34 676 |
28 542 |
28 994 |
|
|
|
|
|
|
Net result |
(191) |
(22) |
(22) |
(22) |
(22) |
|
|
|
|
|
|
Comprehensive result |
(191) |
(22) |
(22) |
(22) |
(22) |
|
|
|
|
|
|
Notes:
1. The increase in Appropriation revenue - operating in 2020-21 relates to funding for the Aviation Market Development Fund, Australian Tourism Exchange, and Tourism Marketing initiatives that was unable to be spent in 2019-20 due to the impacts of COVID-19. The decrease in 2022-23 reflects the completion of fixed-term funding for tourism marketing. The funding changes for these programs also impacts the expenditure profile of Supplies and consumables.
2. The decrease in Depreciation and amortisation, and the increase in Supplies and consumables in 2020-21, includes the impact of a change in the accounting treatment for the recognition of leases. Further information on this change is provided in chapter 1 of this Budget Paper.
|
2019-20 |
2020-21 |
2021-22 |
2022-23 |
2023-24 |
|
|
|
Forward |
Forward |
Forward |
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
Minister for Tourism |
|
|
|
|
|
|
|
|
|
|
|
Output Group 1 - Tourism |
|
|
|
|
|
1.1 Tourism1 |
33 624 |
38 523 |
33 952 |
27 812 |
28 257 |
|
33 624 |
38 523 |
33 952 |
27 812 |
28 257 |
|
|
|
|
|
|
Tourism Tasmania |
|
|
|
|
|
Total Operating Services Expenditure |
33 624 |
38 523 |
33 952 |
27 812 |
28 257 |
|
33 624 |
38 523 |
33 952 |
27 812 |
28 257 |
|
|
|
|
|
|
Appropriation Rollover |
.... |
900 |
.... |
.... |
.... |
|
|
|
|
|
|
Total Revenue from Appropriation |
33 624 |
39 423 |
33 952 |
27 812 |
28 257 |
|
|
|
|
|
|
Controlled Revenue from Appropriation |
33 624 |
39 423 |
33 952 |
27 812 |
28 257 |
|
33 624 |
39 423 |
33 952 |
27 812 |
28 257 |
|
|
|
|
|
|
Note:
1. The increase in expenditure in 2020-21 relates to funding for the Aviation Market Development Fund, Australian Tourism Exchange, and Tourism Marketing initiatives that was unable to be spent in 2019-20 due to the impacts of COVID-19. The decrease in expenditure in 2022-23 reflects the completion of fixed-term funding for tourism marketing.
|
2020 |
2021 |
2022 |
2023 |
2024 |
|
|
|
Forward |
Forward |
Forward |
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Financial assets |
|
|
|
|
|
Cash and deposits |
1 |
1 |
1 |
1 |
1 |
|
1 |
1 |
1 |
1 |
1 |
|
|
|
|
|
|
Non-financial assets |
|
|
|
|
|
Property, plant and equipment |
367 |
358 |
336 |
314 |
292 |
Other assets1 |
3 062 |
702 |
702 |
702 |
702 |
|
3 429 |
1 060 |
1 038 |
1 016 |
994 |
|
|
|
|
|
|
Total assets |
3 430 |
1 061 |
1 039 |
1 017 |
995 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Payables |
40 |
85 |
85 |
85 |
85 |
Interest bearing liabilities1 |
2 403 |
.... |
.... |
.... |
.... |
Employee benefits |
1 495 |
1 667 |
1 667 |
1 667 |
1 667 |
Other liabilities |
71 |
11 |
11 |
11 |
11 |
Total liabilities |
4 009 |
1 763 |
1 763 |
1 763 |
1 763 |
|
|
|
|
|
|
Net assets (liabilities) |
(579) |
(702) |
(724) |
(746) |
(768) |
|
|
|
|
|
|
Equity |
|
|
|
|
|
Accumulated funds |
(579) |
(702) |
(724) |
(746) |
(768) |
Total equity |
(579) |
(702) |
(724) |
(746) |
(768) |
|
|
|
|
|
|
Note:
1. The variation in Other assets and Interest bearing liabilities primarily reflects the change in the accounting treatment for the recognition of leases. Further information on this change is provided in chapter 1 of this Budget Paper.
|
2019-20 |
2020-21 |
2021-22 |
2022-23 |
2023-24 |
|
|
|
Forward |
Forward |
Forward |
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Cash inflows |
|
|
|
|
|
Appropriation receipts - operating1 |
33 624 |
38 523 |
33 952 |
27 812 |
28 257 |
Appropriation receipts - other |
.... |
900 |
.... |
.... |
.... |
Other cash receipts |
750 |
696 |
702 |
708 |
715 |
Total cash inflows |
34 374 |
40 119 |
34 654 |
28 520 |
28 972 |
|
|
|
|
|
|
Cash outflows |
|
|
|
|
|
Employee benefits |
(6 457) |
(7 186) |
(7 233) |
(7 389) |
(7 548) |
Superannuation |
(724) |
(932) |
(944) |
(963) |
(986) |
Grants and subsidies |
(1 550) |
(1 829) |
(1 833) |
(1 838) |
(1 843) |
Supplies and consumables1 |
(25 147) |
(30 102) |
(24 574) |
(18 259) |
(18 524) |
Other cash payments |
(70) |
(70) |
(70) |
(71) |
(71) |
Total cash outflows |
(33 948) |
(40 119) |
(34 654) |
(28 520) |
(28 972) |
|
|
|
|
|
|
Net cash from (used by) operating activities |
426 |
.... |
.... |
.... |
.... |
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents held |
426 |
.... |
.... |
.... |
.... |
|
|
|
|
|
|
Cash and deposits at the beginning of the reporting period |
(425) |
1 |
1 |
1 |
1 |
Cash and deposits at the end of the reporting period |
1 |
1 |
1 |
1 |
1 |
|
|
|
|
|
|
Note:
1. The increase in Appropriation receipts - operating in 2020-21 relates to funding for the Aviation Market Development Fund, Australian Tourism Exchange, and Tourism Marketing initiatives that was unable to be spent in 2019-20 due to the impacts of COVID-19. The decrease in 2022-23 reflects the completion of fixed-term funding for tourism marketing. The funding changes for these programs also impacts the expenditure profile of Supplies and consumables.