Virgin Australia steps in to work with Tourism Australia

Virgin Australia has made good its commitment to back Tourism Australia in the aftermath of Qantas having withdrawn its funds for the Australian inbound tourism marketing agency.

In doing so, Virgin Australia has made good its pledge to help fill the gap in marketing funds left by the withdrawal of Qantas.

Tourism Australia and Virgin Australia are to double the value of their current marketing partnership in a bid to further support the growth of Australia's inbound tourism market.

Under the new arrangement, the two parties will increase their current joint commitments from $6 million to $12 million over the next three financial years, on a range of joint marketing activities.

Earlier this month Qantas ended its 40-year marketing partnership with Tourism Australia as a result of Tourism Australia Chairman Geoff Dixon, the former Qantas chief executive, backing a consortium that seeks to replace current Qantas management.

In the following weeks, Tourism Australia has stood by Dixon while Virgin Australia has now entered into global partnership with Tourism Australia that will focus on key inbound visitor markets to Australia the United States, New Zealand, the United Kingdom, continental Europe and Asia.

Explaining the deal, Tourism Australia Managing Director Andrew McEvoy stated "the extension of our current deal with Virgin Australia is great news for Australian tourism and the extra funds will immediately go to good use in some of our most important inbound tourism markets.

"Virgin Australia has an international footprint which spans a number of Tourism Australia's key markets, including New Zealand, the United States, Europe and the Middle East. When you add to this the airline's extensive domestic network, the benefits of strengthening our partnership are both logical and compelling."

McEvoy added that the recent bounce back in US arrivals, up 4% so far this year, was a significant opportunity and would also be a key focus of the additional marketing funds.

Virgin Australia Chief Executive John Borghetti added "both Virgin Australia and Tourism Australia recognise the importance of tourism to Australia's economy and are committed to promoting Australia as a world class destination.

"Thanks to our growing international operations and our recently formed alliances with four of the world's leading airlines Air New Zealand, Delta Air Lines, Etihad Airways and Singapore Airlines, we now have the ability to access international visitors from over 400 cities around the world.

"(This) announcement will see Virgin Australia and Tourism Australia double our combined efforts to increase visitation from these markets. We will also work closely with Tourism Australia on new opportunities around major sporting, business and cultural events in Australia."

The expanded arrangement will feature marketing on traditional and digital media platforms as well as event and sponsorship activities.

Tourism Australia and Virgin Australia will each contribute $2 million annually, for the next three financial years 2012/2013, 2013/2014 and 2014/2015, equating to $12 million in this three year period, doubling the value of the Memorandum of Understanding.

This continues Tourism Australia's growing 'partnership marketing approach', working with more than 200 industry partners including airlines, distributors and Australian industry in its key tourism markets.

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