Australia records 12 month rise in international visitor numbers and spending

Tourism Research Australia’s latest International Visitor Survey shows that visitor numbers and spending have risen strongly in the year ending September 2014, with growth from virtually all Australia’s top international source markets and leisure travellers the driving force.

The latest Survey shows that international arrivals rose 8% for the year to September, with double digit growth from nine of Australia’s top 20 markets, including China (10%), US (11%), Singapore (14%) and Malaysia (23%). Expenditure for the year was up 9%, with spending by Chinese visitors up 16% to more than $5.4 billion.

Welcoming the findings, Tourism & Transport Forum (TTF) Chief Executive officer Margy Osmond said the figures showed Australia’s broad appeal.

Osmond explains “it’s great to see visitor numbers rising across the board, because that means we are not putting all our eggs in one basket.

“We are seeing growth from countries around the world, including Asia, Europe and North America, with leisure visitors coming for holidays or to visit friends and family up more than 11%.

“Leisure visitors account for almost three quarters of international visitors to Australia, so these are critical market segments for Australian tourism businesses and the 543,000 people they employ.

“The importance of leisure travel also shows the value of tourism marketing investment, as Australia is competing with destinations around the world for this travel spending. “While our national and state marketing agencies are doing a great job, more funding for marketing and reforms in key areas would see international tourism grow even faster.

“TTF strongly believes that more can be done to reform our visa processing system and reduce the cost of visas to make it easier for visitors from growth markets in Asia to come here.

“We also believe there’s a strong case for reducing passenger movement charge, especially for price-sensitive leisure visitors from our near neighbours in New Zealand and South East Asia.

“Such reforms are vital to improve Australia’s competitiveness at a time when other countries are recognising the opportunity and making changes to their regulations to lower the barriers to entry.

“These reforms and additional investment in tourism marketing are urgently needed to give Australia any chance of reaching the Tourism 2020 goal of doubling overnight visitor expenditure to $140 billion.”

Osmond said the Survey includes a valubale state-by-state breakdown of visitation and expenditure.

Commenting on this, she added “visitor numbers to all states and territories are up, with Victoria leading the way with 10% growth, ahead of the Northern Territory and Tasmania with 8%, then NSW, WA and SA with 7%.

“Queensland has fared the worst of the major states, with visitor arrival growth of just 4%, even though it is the only state with more than one international airport.

“The industry has shown its willingness to enter into cooperative marketing partnerships with Tourism Australia and state tourism organisations, with Etihad recently doubling its marketing spend with Tourism Australia to $12 million,” Osmond said.

“Tasmania is reaping the benefits of additional government investment in marketing, with international visitor numbers up 8% and spending up 13%.

“Additional investment by the Northern Territory government has also had a positive impact, with international visitor numbers and expenditure up 8%.

“Western Australia also increased its tourism funding in the budget this year and has seen 7% growth in international visitor numbers and 6% expenditure growth, while New South Wales and South Australia are investing heavily in new visitor infrastructure, including for business events.

“This results in private sector investment in accommodation and other amenities that drive further growth in the visitor economy.

“Governments across the country are recognising the benefits of increasing their investment in tourism marketing, with studies showing it delivers a return of AUD 16 for every dollar.

“This attracts visitors who spend money around the country, supporting jobs and providing business opportunities nationwide.”

In conclusion, Osmond highlighted that Queensland had fared poorly on international visitor nights, with no growth, and on expenditure, which rose just 3% to return the lowest growth of any state or territory.

Click here to view International Visitors in Australia: September 2014 quarterly results of the International Visitor Survey on the TRA website.

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