TOURISM VICTORIA ANNUAL REPORT

chief executive’s report
gregory hywood
The Victorian tourism industry’s
strong performance is the result of a
sophisticated approach that has turned
our unique tourism experiences into our
competitive strengths. Tourism Victoria
supports the industry through our
proven marketing strategies, maintaining
our enviable year-long events calendar,
increasing the number of direct flights to
Melbourne and regional centres, creating
a larger and more highly trained tourism
workforce, building new facilities and
attracting investment.
Victoria has built on its strong position
in attracting domestic and international
visitors – and higher visitor expenditure.
Results indicate that Melbourne has
overtaken Sydney as the most lucrative
market for domestic tourists. Domestic
overnight visitors spent $135 million
more in Melbourne than in Sydney.
We continue to promote Victoria in
key international markets, including
traditional source markets such
as Europe and the United States.
Capitalising on new emerging markets
such as China, Malaysia and India and
their potential for growth over the
next ten years is one of our biggest
challenges. With 70 per cent of
Victoria’s tourism growth over the
next decade forecast to come from
international markets, increasing the
number of direct international flights
to Melbourne is crucial. We need to
be aggressive in order to maintain and
grow air access.
The year was marked by several
aviation wins that will deliver significant
seat capacity and passenger growth
for Victoria. Korean Air and Qantas
commenced new direct services;
Cathay Pacific, Thai Airways and
Philippine Airlines increased their
services and Air China delinked services
from Sydney. In the domestic market
Tiger Airways launched services in
November 2007 and Qantas, Jetstar
and Virgin Blue also all contributed to
domestic aviation growth.
With the support of a committed State
Government, growth is forecast to see
the industry grow to an $18 billion
industry employing 225,000 Victorians
by 2016. This ambitious vision, set
in the 10 Year Tourism and Events
Industry Strategy, is our strategic focus.
The Tourism Victoria Business Plan
2008–2011 was developed to identify
how we implement the directions of
the Strategy. The business plan delivers
a comprehensive set of priorities and
actions for the organisation over the
next three years. For Victoria to perform,
a focused effort is essential to accelerate
the drivers of tourism growth.
One key element of the Strategy is to
market programs, provide funding and
attract visitors to our regions. The draft
Regional Tourism Action Plan 2008–2011
was developed to address various
challenges impacting regional Victoria.
The plan identifies four key statewide
initiatives – industry structures,
investment attraction, destination
marketing and skills and service
standards. It also highlights key priorities
for Victoria’s ten tourism regions.
Following a period of strong growth,
Victoria’s tourism and events industry
is facing new challenges. These include
the stagnant domestic tourism sector,
growth in low cost carriers, an increase
in outbound travel, issues involving
attracting new tourism investment to
the State, as well as skills shortages in
the industry. By working in partnership,
the Government and the tourism and
events industry can be better prepared
to meet these challenges.
In the 2008–09 State Budget
the State Government allocated
$35.1 million to boost Victoria’s profile
in interstate and international markets,
$13.8 million of which will help build
the lucrative business events industry.
Melbourne currently maintains a strong
position as a desirable destination for
business events, with factors such as
the development of a new Melbourne
Convention and Exhibition Centre,
helping secure major international
business events.
With our strategy and business plan
providing a framework for the tourism
industry into the future and support
from the State Government, I believe
we are well placed to maintain our
position in this highly competitive
marketplace.
Finally, I would like to thank the
Chairman Janine Kirk, members of
Tourism Victoria’s Board, former
Chairman John Morse and the Minister
for Tourism and Major Events Tim
Holding for his ongoing support.
I would like to acknowledge Secretary
Howard Ronaldson, former Secretary
Warren Hodgson and the staff of
Tourism Victoria for their commitment
and continued pursuit of excellence.
Gregory Hywood
Chief Executive
Tourism Victoria
16 PROFILE