Annual Report 2001-2002 - Tourism Western Australia - The ...
Annual Report 2001-2002 - Tourism Western Australia - The ...
Annual Report 2001-2002 - Tourism Western Australia - The ...
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GOVERNMENT OF<br />
WESTERN AUSTRALIA<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
Wester <strong>Western</strong> n <strong>Australia</strong>n <strong>Australia</strong>n <strong>Tourism</strong> <strong>Tourism</strong> Commission Commission<br />
ANNUAL<br />
REPORT<br />
2 0 0 1 - 2 0 0 2
<strong>Tourism</strong>:<br />
A<br />
Natural<br />
Part<br />
of<br />
our<br />
Future<br />
ANNUAL<br />
REPORT<br />
2 0 0 1 - 2 0 0 2<br />
Message To <strong>The</strong> Minister<br />
Contents<br />
Page<br />
To the Honorable Clive Brown MLA<br />
Minister for <strong>Tourism</strong><br />
It is my pleasure that, in accordance with the<br />
requirements of section 62 of the Financial<br />
Administration Audit Act 1985, I hereby submit for<br />
your information and presentation to Parliament,<br />
the <strong>Annual</strong> <strong>Report</strong> of the <strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission for the year ended 30 June<br />
<strong>2002</strong>.<br />
<strong>The</strong> <strong>Annual</strong> <strong>Report</strong> has been prepared in<br />
accordance with the provisions of the Financial<br />
Administration and Audit Act 1985.<br />
Alan Mulgrew<br />
CHAIRMAN<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission Board<br />
30 August <strong>2002</strong><br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
i. Vision, Mission and Commitment 3<br />
- Vision, Mission and Values<br />
- Chairman’s Year in Review<br />
- Chief Executive’s <strong>Report</strong><br />
ii. <strong>Report</strong> on Operations 9<br />
- <strong>2001</strong>-<strong>2002</strong> Operating Environment<br />
- Outcome 1.0 - Promotion of <strong>Western</strong><br />
<strong>Australia</strong> as a Tourist Destination<br />
1.1 Destination Marketing<br />
1.2 Event <strong>Tourism</strong><br />
1.3 Convention and Incentive Travel<br />
- Outcome 2.0 - An Enhanced <strong>Tourism</strong> Industry,<br />
Infrastructure and Product Base<br />
2.1 Industry Development<br />
2.2 Visitor Servicing<br />
- Output and Outcomes<br />
- Output Performance<br />
iii. Corporate Support, Structure<br />
and Governance 33<br />
- Clear Planning and Direction<br />
- WATC Board of Commissioners<br />
- WATC Advisory Councils and Committees<br />
to Commissioners<br />
- Appropriate and Timely Information<br />
- Sound Resource Management<br />
- Adequate Controls<br />
- Compliance Statement<br />
- Appendices<br />
iv. Key Performance Indicators<br />
and Financial Statements 47<br />
Wester <strong>Western</strong> n <strong>Australia</strong>n <strong>Australia</strong>n <strong>Tourism</strong> <strong>Tourism</strong> Commission Commission <strong>Annual</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02
V i s i o n ,<br />
M i s s i o n<br />
a n d<br />
C o m m i t m e n t<br />
Contents<br />
Page<br />
Swan Bells, Barrack Square, Perth<br />
i. Vision, Mission and Commitment<br />
- Vision, Mission and Values 4<br />
- Chairman’s Year in Review 5<br />
- Chief Executive’s <strong>Report</strong> 6<br />
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<strong>Tourism</strong> Commission<br />
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3
Vision, Mission and Values<br />
Values<br />
<strong>The</strong> Commission is committed to performance<br />
excellence, in partnership with the industry. Our core<br />
values underlying this commitment are:<br />
Trust<br />
> We communicate freely, honestly and fairly.<br />
Vision<br />
Perth Skyline and Swan River from Kings Park<br />
Effectiveness and Openness<br />
> We provide an open and positive working environment in which everyone can<br />
perform his or her tasks effectively.<br />
To create an effective partnership between the private<br />
sector and government to make tourism a premier<br />
industry for <strong>Western</strong> <strong>Australia</strong>.<br />
Cooperativeness<br />
> We achieve results through hard work at all levels.<br />
Innovation<br />
> We initiate changes and innovation in order to enhance our performance.<br />
Mission<br />
To accelerate the sustainable growth of the tourism<br />
industry for the long-term social and economic benefit<br />
of the State.<br />
Motivation<br />
> We encourage, deliver and acknowledge excellence in all aspects of our<br />
operation.<br />
Customer Focus<br />
> We are committed to service excellence exceeding expectations.<br />
Respect<br />
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> We are accountable for the funding and resources invested in us.
Chairman’s Year in Review<br />
W A<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission achieved<br />
significant results during a year in which the tourism<br />
industry faced extraordinary and unprecedented<br />
challenges.<br />
<strong>The</strong> September 11 attacks in New York followed by the Ansett collapse, just<br />
three days later, presented the industry with a catastrophic and potentially<br />
crippling blow. <strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n Government, <strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission (WATC) and <strong>Tourism</strong> Council <strong>Western</strong> <strong>Australia</strong> (TCWA)<br />
responded quickly. Intrastate, interstate and international tourism offices<br />
developed strategic marketing strategies to accelerate a recovery.<br />
While some areas of tourism are still experiencing difficulties, the industry can<br />
look forward to strong opportunities for growth over the medium to longer term,<br />
stimulating new investments and creating new job opportunities, especially in<br />
regional <strong>Western</strong> <strong>Australia</strong>. In environmentally sensitive areas, tourism can<br />
also help neutralise land and resource use conflict by offering sustainable<br />
alternatives.<br />
<strong>The</strong> <strong>Tourism</strong> Forecasting Council expects about 10.4 million people a year to<br />
visit <strong>Australia</strong> by 2012, double the current number of visitors. It is important<br />
that strategies are implemented to ensure WA has the infrastructure necessary<br />
to meet this demand. Areas that need to be addressed are accommodation,<br />
transport, roads and energy and resource consumption. To achieve this goal, it<br />
will be necessary to cement relationships between the WATC and tourism industry<br />
partners as well as the broader business community.<br />
In line with State Government policy and industry directions, the WATC is<br />
developing product that meets future tourism needs. <strong>The</strong> increased interest<br />
in nature-based attractions is important and it is <strong>Western</strong> <strong>Australia</strong>’s rich biodiversity<br />
and pristine eco-systems that set it apart and provide the scope for<br />
product differentiation. <strong>The</strong> State is now well positioned to establish itself as a<br />
world-premiere nature-based holiday destination with a diversity of product and<br />
attractions.<br />
Air access continues to be a high priority for tourism in <strong>Western</strong> <strong>Australia</strong>,<br />
particularly following the collapse of Ansett and the impact of September 11.<br />
<strong>The</strong> State Government, WATC and the tourism industry have worked with Qantas<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
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to retain direct non-stop services from Japan and introduce direct services from<br />
Paris and Rome to Perth. <strong>The</strong> WATC played a major role in securing Emirates<br />
by actively encouraging the airline to introduce a new four day a week non-stop<br />
service from Dubai to Perth.<br />
Domestic air capacity has been gradually increased with Qantas adding many<br />
new services to both interstate and regional networks. WATC has worked closely<br />
with Virgin Blue to encourage its entry into the State with services from Adelaide,<br />
Melbourne and, more recently, Sydney. QantasLink and Skywest have now added<br />
new intrastate services on routes previously operated by Ansett.<br />
Notwithstanding these increases, it is imperative for the ongoing viability and<br />
growth of tourism in <strong>Western</strong> <strong>Australia</strong> that every effort is made to increase<br />
international and domestic seat capacity.<br />
<strong>2001</strong>-<strong>2002</strong> was the second year of the Partnership 21 five-year strategic plan.<br />
A review of the strategy is underway to ensure the Commission’s plan for the<br />
growth of tourism meets the demands of Government, industry and the <strong>Western</strong><br />
<strong>Australia</strong>n community.<br />
This review is particularly important as it will provide a knowledge platform<br />
from which the Commission can develop, implement and measure initiatives<br />
and resource usage. <strong>The</strong> review outcomes will encompass the full spectrum<br />
of Commission responsibilities. This involves closer working partnerships with<br />
regions, government agencies, major events and the convention industry.<br />
I would like to express my sincere appreciation of the contribution made by the<br />
Board and Advisory Council members during <strong>2001</strong>-<strong>2002</strong>.<br />
On behalf of the Board, I would like to thank the management team, staff and<br />
contractors of the Commission. <strong>The</strong> WATC’s ability to achieve significant results<br />
in such a difficult environment is directly due to the professionalism, dedication<br />
and commitment demonstrated by the Commission team during the past year.<br />
Alan Mulgrew<br />
CHAIRMAN<br />
30 August <strong>2002</strong>
Chief Executive’s <strong>Report</strong><br />
Unfortunately, the State is still suffering the effects of the downturn in international<br />
tourism as a result of September 11, <strong>2001</strong>. <strong>The</strong> International Visitor Survey statistics<br />
produced by the Bureau of <strong>Tourism</strong> Research for the period September <strong>2001</strong> to<br />
March <strong>2002</strong> indicate that <strong>Western</strong> <strong>Australia</strong> is not recovering as quickly as most other<br />
<strong>Australia</strong>n States/Territories. However in contrast to the International Visitor Survey,<br />
the number of international visitor arrivals (non-<strong>Australia</strong>n passports) reported through<br />
Perth International Airport since February <strong>2002</strong>, is returning to the same levels as in<br />
the previous 12 months.<br />
Overall, <strong>Western</strong> <strong>Australia</strong> appears to be back on track to meet forecast increases in<br />
tourism of around seven per cent a year over the next 10 years.<br />
Ocean Park near Denham, Shark Bay<br />
This year’s <strong>Annual</strong> <strong>Report</strong> reveals that <strong>2001</strong>-<strong>2002</strong> was a<br />
year of achievement and change.<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n tourism industry and the WA <strong>Tourism</strong> Commission have<br />
emerged from a tumultuous year in which we have all battled extraordinary odds<br />
and prevailed.<br />
<strong>The</strong> impact of the September 11, <strong>2001</strong> attacks and the Ansett collapse struck at the<br />
heart of our tourism industry but the most recent figures show that we are fighting back<br />
successfully by doing what we know best - promoting <strong>Western</strong> <strong>Australia</strong> and all that it<br />
has to offer to tourists worldwide.<br />
While the impact of the crisis is continuing to be felt by many operators, the outlook<br />
is positive.<br />
Preliminary figures for the six months to March <strong>2002</strong> indicate that domestic tourism<br />
generated an additional $161 million for <strong>Western</strong> <strong>Australia</strong> and the tourism industry<br />
over the previous year. This is a result of increased domestic visitor numbers of 19<br />
per cent in the six months to March <strong>2002</strong>. Importantly the number of nights visitors<br />
stayed in <strong>Western</strong> <strong>Australia</strong> also increased significantly in this period; 10 per cent on<br />
the same time for the previous year.<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission responded positively to the crisis while still<br />
implementing fundamental changes in its operations. Staff jobs, functions and activities<br />
were all re-evaluated through an internally managed structural review.<br />
<strong>The</strong> new structure places more emphasis on the development of closer working<br />
relationships with key industry partners, improving communication, achieving greater<br />
cooperation with the tourism industry, keeping abreast of market and product trends,<br />
advances in the use of technology, and providing the framework for <strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission staff to be more proactive rather than reactive.<br />
<strong>Western</strong> <strong>Australia</strong>’s markets have become more diverse and complex and the need to<br />
develop innovative, holistic marketing strategies is critical as more and more destinations<br />
join the chase of the tourist dollar.<br />
Developing tourism by exploiting its potential in sectors not traditionally seen as part<br />
of the tourism industry is one of the most significant changes.<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission will develop closer working relationships<br />
with other government agencies, State, Federal and local government and with a<br />
diversity of business and community organisations, to build better tourism product in<br />
WA.<br />
<strong>The</strong> year has also seen an almost total change in the WATC’s Board with seven of the<br />
eight members of the Board newly appointed this year. On behalf of the WATC, I would<br />
like to thank the outgoing board members for their support, guidance and contribution.<br />
I also welcome to the organization the new board who bring an eclectic mix of high<br />
level skills, knowledge and experience.<br />
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<strong>Western</strong> <strong>Australia</strong>n<br />
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Chief Executive’s <strong>Report</strong><br />
Just as the tourism industry is now well placed to counteract the impacts of the events<br />
of the past 12 months, so the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission is now ready to<br />
meet the demands of an evolving tourism industry.<br />
I applaud the extraordinary effort put in by all staff at the WATC over the past 12 months<br />
to assist the <strong>Western</strong> <strong>Australia</strong>n tourism industry in rising to and meeting the unique<br />
and multiple challenges that they have had to face.<br />
Richard Muirhead<br />
CHIEF EXECUTIVE OFFICER<br />
30 August <strong>2002</strong><br />
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<strong>Report</strong><br />
on<br />
Operations<br />
Contents<br />
Page<br />
Crossing Pool, Millstream-Chitchester National Park,<br />
Pilbara<br />
ii. <strong>Report</strong> on Operations<br />
- <strong>2001</strong>-<strong>2002</strong> Operating Environment 10<br />
- Outcome 1.0 - Promotion of <strong>Western</strong><br />
<strong>Australia</strong> as a Tourist Destination 12<br />
1.1 Destination Marketing 12<br />
International Marketing 12<br />
National Marketing 14<br />
General Marketing 14<br />
Research and Analysis 16<br />
1.2 Event <strong>Tourism</strong> 18<br />
1.3 Convention and Incentive<br />
Travel 21<br />
- Outcome 2.0 - An Enhanced <strong>Tourism</strong><br />
Industry, Infrastructure and<br />
Product Base 22<br />
2.1 Industry Development 22<br />
2.2 Visitor Servicing 24<br />
- Output and Outcomes 26<br />
- Output Performance 27<br />
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9
<strong>Report</strong> on Operations<br />
<strong>2001</strong>-<strong>2002</strong> Operating Environment<br />
Initially, campaigns focused on the critical intrastate market, which represents about 70<br />
per cent of business for most WA operators. Opportunities have also been developed<br />
interstate and internationally. Both these market segments remain volatile.<br />
Airline access and airfares continue to be a major issue. Through the efforts of the<br />
State Government, the WATC and industry, we were able to convince Qantas to retain<br />
its non-stop Tokyo/Perth route. Emirates introduced four direct non-stop services<br />
per week from Dubai to Perth. <strong>The</strong> WATC is part of the State Government Strategic<br />
Aviation Committee reviewing <strong>Western</strong> <strong>Australia</strong>’s air transport issues and policies.<br />
This committee worked with Qantas to secure new direct 747 services from Rome<br />
and Paris to Perth.<br />
Sandboarding near Lancelin<br />
<strong>The</strong>re were several major issues that had a significant<br />
impact on the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Commission’s (WATC) operating environment during<br />
<strong>2001</strong>-<strong>2002</strong>.<br />
<strong>The</strong> terrorist attacks on the World Trade Centre on September 11 affected tourism<br />
worldwide. Three days later, Ansett and its regional subsidiary Skywest were<br />
grounded. Capacity into <strong>Western</strong> <strong>Australia</strong> from the major east west trunk routes<br />
more than halved and air access to the State’s regional centres virtually ceased.<br />
<strong>The</strong> State Government and WATC acted swiftly. <strong>The</strong> Government allocated $5 million in<br />
crisis funding for new promotional and marketing activities that would assist the tourism<br />
industry through the crisis. Remarkably, signs of recovery are beginning to show in the<br />
domestic market. Whilst intrastate tourism increased by an unprecedented 14 per cent<br />
in the 12 months to March <strong>2002</strong>, there was a decline in interstate tourists of 7.9 per cent,<br />
or 77,000 visitors in the 12 months to March <strong>2002</strong>. Internationally, <strong>Western</strong> <strong>Australia</strong><br />
is yet to return to the numbers of international visitors it enjoyed prior to September 11<br />
and the collapse of Ansett.<br />
<strong>The</strong> majority of the crisis funding has been allocated with a number of initiatives still<br />
to run in <strong>2002</strong>-2003.<br />
Domestically air capacity has gradually increased with Qantas adding many new<br />
services from Brisbane, Sydney and Melbourne to Perth, as well as two permanent<br />
737 aircraft operating services to Broome, Karratha, Kalgoorlie and Darwin. Skywest<br />
recommenced regional air services one week after the original grounding of Ansett<br />
in September. Both QantasLink and Skywest covered routes previously serviced by<br />
Ansett. <strong>The</strong> WATC also worked closely with Virgin Blue to encourage their entry to the<br />
Perth market from Adelaide, Sydney and Melbourne. Work is continuing with Skywest,<br />
Qantas and QantasLink to increase services for remote regional areas, particularly the<br />
North West of the State.<br />
<strong>The</strong> loss of Ansett services to and within <strong>Western</strong> <strong>Australia</strong> has had a significant impact<br />
on tourism to the State. While Qantas has worked hard to restore seat capacity to<br />
levels experienced prior to September 14, the State has lost the benefit of competitively<br />
priced seats available on a regular basis that resulted from carriers competing for<br />
market share.<br />
Work will continue with domestic and international airlines, Westralia Airports<br />
Corporation and the Department of Planning and Infrastructure to develop additional<br />
direct international air services from high priority regions including Japan, Malaysia,<br />
Taiwan, Peoples Republic of China and the Middle East.<br />
Global tourism uncertainty continues to present some issues for the local industry. <strong>The</strong><br />
WATC has broadened its marketing scope to encompass changes in travel patterns<br />
and develop new opportunities in future and emerging markets.<br />
Nature based/Eco tourism has an exciting future. <strong>The</strong> World <strong>Tourism</strong> Organisation has<br />
predicted that over the next 10 years demand will increase substantially for destinations<br />
that offer a unique and interactive nature-based tourism experience. <strong>Western</strong> <strong>Australia</strong><br />
is promoted in all markets as a premier nature-based tourism destination offering a<br />
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<strong>Report</strong> on Operations<br />
<strong>2001</strong>-<strong>2002</strong> Operating Environment continued<br />
safe, friendly holiday environment. This orientation is being pursued in harmony with<br />
the State’s traditional tourism attractions, including heritage and industrial tourism.<br />
A number of product niches are being developed under the umbrella of sustainable<br />
tourism including culture, indigenous tourism, education, health, sport, wine and food,<br />
navy/cruising, forestry, backpackers, dive and drive.<br />
Competition for event-based tourism intensified in <strong>2001</strong>-<strong>2002</strong> with many countries and<br />
cities devoting increased resources to attracting events. This continues to be a major<br />
focus for <strong>Western</strong> <strong>Australia</strong> with sporting events that showcase the State and enhance<br />
its image in our core markets. <strong>The</strong> WATC actively pursues major events to attract<br />
additional visitors and provide economic benefit to the State.<br />
<strong>Western</strong> <strong>Australia</strong> is also expected to attract an increasing share of the conference<br />
market and, in particular, the incentive market as family friendly destinations take<br />
precedence over exotic adventure destinations, particularly post September 11.<br />
Opportunities have expanded in the Meetings, Incentive Conventions and Exhibitions<br />
(MICE) sector with the commencement of the construction of the new Perth Convention<br />
and Exhibition Centre and increased capacity at the Burswood International<br />
Resort Casino, allowing <strong>Western</strong> <strong>Australia</strong> to bid for larger scale conferences and<br />
exhibitions.<br />
> Land Tax: <strong>The</strong>re have been big increases in the valuation on unimproved land at<br />
caravan parks and resorts in some shires impacting on both the price to the end<br />
users and in some cases, the viability of operators.<br />
> <strong>Tourism</strong> and Pastoral Leases: Access by tourist operators across pastoral leases<br />
can impact on the lessee’s right to quiet enjoyment of their property and restricts<br />
the use of some sections of the lease. <strong>The</strong> terms of tenure for use of the land<br />
under pastoral leases needs to be assessed under criteria that considers favourable<br />
economic use and future public interest.<br />
> Airline Seats: With the demise of Ansett, <strong>Western</strong> <strong>Australia</strong> lost some of the<br />
benefits of competition through competitively priced seats. Whilst seat capacity<br />
has increased, tourism depends on freely available competitive priced seats which<br />
are still short of levels provided 12 months ago.<br />
> Regional Aviation: Access to adequately priced Regular Passenger Transport<br />
services for remote and regional tourism destinations continues to be a huge issue<br />
for tourism in terms of both developing new product and the viability of existing<br />
product.<br />
W A<br />
All WATC campaigns will be jointly promoted through the WATC’s website<br />
(www.westernaustralia.net) and, where appropriate, the Virtual Call Centre to capitalise<br />
on the growing use of the internet as a marketing tool. <strong>The</strong> website will continue to be<br />
developed as an integral marketing and promotional medium for the State.<br />
<strong>Western</strong> <strong>Australia</strong>n tourism product will also gain greater on-line exposure at both a<br />
national and international level through the introduction of the <strong>Australia</strong>n <strong>Tourism</strong> Data<br />
Warehouse and its links with the WA <strong>Tourism</strong> Network.<br />
Other issues include:<br />
> Public Liability Insurance: Big increases in public liability insurance premiums<br />
are affecting the commercial viability of many tourism businesses.<br />
> GST on strata title accommodation developments: GST on these developments<br />
is levied twice, once on the sale of the strata unit and again on the daily tariff charged<br />
for short term occupancy. This is a dis-incentive to investors and has resulted in a<br />
reduction of strata title accommodation developments in <strong>Western</strong> <strong>Australia</strong>.<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
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Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination<br />
Key Output Area 1.1<br />
Destination Marketing<br />
Objective<br />
<strong>The</strong> WATC promotes <strong>Western</strong> <strong>Australia</strong> as a desirable holiday destination in the core<br />
and emerging markets domestically and internationally.<br />
Key Output Description<br />
<strong>The</strong> WATC works with industry to devise and implement campaigns to increase<br />
consumer and trade awareness of WA as a desirable destination.<br />
Objective<br />
Ancient Empire Walk, Walpole-Nornalup National Park<br />
Strong alliances have been formed with transport providers, Regional <strong>Tourism</strong><br />
Associations and other relevant organisations.<br />
W A<br />
To promote <strong>Western</strong> <strong>Australia</strong> as an attractive tourist, event, and convention and<br />
incentive travel destination within <strong>Australia</strong> and overseas.<br />
Outcome<br />
> promotion of <strong>Western</strong> <strong>Australia</strong>, the destination, tourist facilities and services, in<br />
conjunction with the tourism industry, and the provision of a public information and<br />
booking service;<br />
> identification, securing and management of special event opportunities and<br />
promotion of <strong>Western</strong> <strong>Australia</strong> as a venue for national and international events;<br />
> identification and securing of convention and incentive opportunities and the<br />
marketing of <strong>Western</strong> <strong>Australia</strong> as a destination for conventions and incentive<br />
travel programs.<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
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Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong><br />
Major Achievements In <strong>2001</strong>-<strong>2002</strong><br />
At the request of the WATC and <strong>Tourism</strong> Council <strong>Western</strong> <strong>Australia</strong>, the State Government<br />
made available $5million in crisis funding to counter the effects of Ansett’s collapse and<br />
the September 11 attacks on <strong>Western</strong> <strong>Australia</strong>n tourism.<br />
International<br />
> Evolution of the Brand WA campaign based on extensive field research resulted in<br />
new creative featuring the positioning line ‘<strong>Western</strong> <strong>Australia</strong>. Be touched by nature’.<br />
<strong>The</strong> new creative was rolled out in three major campaigns in the core markets of<br />
the United Kingdom, Singapore and Malaysia in the second half of <strong>2002</strong>.<br />
> <strong>The</strong> WATC re-entered the New Zealand market with a major brand campaign<br />
supported by the ATC, Air New Zealand and two principal wholesalers. <strong>The</strong><br />
campaign was based on the outcomes of ATC research which identified opportunities<br />
for WA in this significant outbound market.<br />
> <strong>The</strong> WATC launched its Brand WA campaign in Malaysia in March <strong>2002</strong>. <strong>The</strong><br />
campaign adopted a press led strategy and for the first time included bold electronic<br />
billboard advertising in high traffic Kuala Lumpur locations. <strong>The</strong> campaign also ran<br />
in Johor Bahru and Penang.
<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
W A<br />
> <strong>The</strong> WATC participated for the first time in the ATC Arab Travel Mart and the Emirates<br />
Holiday Brochure Launch in Dubai. <strong>The</strong>se events were part of the build up to the<br />
inaugural flights from Dubai to Perth with Emirates. <strong>The</strong> WATC also participated in<br />
an industry Roadshow throughout the Gulf Region aimed at building trade awareness<br />
of the State’s tourism product.<br />
> In Singapore, the Brand WA campaign which launched in February <strong>2002</strong> took an<br />
innovative approach using the Mass Rapid Transit (MRT) rail system as a promotional<br />
vehicle. Other components included press (newspaper) and a 52 page magazine<br />
supplement.<br />
> <strong>The</strong> WATC participated in a AUD$1.56M cooperative advertising campaign in Japan<br />
in partnership with the ATC, Qantas and key Japanese wholesalers. <strong>The</strong> aim was<br />
to stimulate traffic to Perth during the trough period of April, May & June. WATC<br />
Japan also partnered Singapore Airlines and wholesalers in <strong>Western</strong> Japan. Some<br />
50 newspaper advertisements were placed over the life of the campaign promoting<br />
tour departures from February to September.<br />
> A seven week WATC sub-brand campaign was undertaken in Hong Kong with the<br />
ATC. <strong>The</strong> campaign involved 12 full-page colour advertorial style ads and Brand<br />
WA MRT posters at selected subway stations.<br />
> <strong>The</strong> WATC launched the Japanese language website www.westernaustralia.or.jp.<br />
> Participated in major consumer fairs including: NATAS (National Association of<br />
Travel Agents) and MATTA (Malaysia Association of Tour & Travel Agents) Fairs,<br />
Boot (Duesseldorf Dive Show).<br />
> Participation in the Japan <strong>Australia</strong> Mission (JAM) with a record number of WA<br />
suppliers and the <strong>Australia</strong>n <strong>Tourism</strong> Exchange (ATE) where 48 individual tourism<br />
operators participated.<br />
> Implementation of international crisis marketing activities in core and emerging<br />
markets has to date generated in excess of 10,000 passengers contributing over<br />
A$8.6 million in incremental business for the State.<br />
> In July <strong>2001</strong>, the WATC played a significant role in convincing Qantas Airways to<br />
maintain its 3 x weekly direct non-stop air services between Tokyo and Perth. WATC<br />
Japan developed and undertook a range of marketing activities aimed at further<br />
stimulating traffic on this route. An additional $170K of WATC funds was allocated<br />
towards this activity. New initiatives included the launch of a Japanese language<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
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trade newsletter and inaugural East Coast Sales Mission in <strong>2001</strong> targetting major<br />
inbound operators.<br />
> Launch of the concept “<strong>Australia</strong>’s Dolphin Coast” in the Japanese marketplace.<br />
> In conjunction with CALM the development and introduction of a nature based CD-<br />
ROM featuring State and Regional attractions and seasonal activities.<br />
> Development of a CDROM showcasing <strong>Western</strong> <strong>Australia</strong> as a viable Cruise<br />
destination. <strong>The</strong> CD-ROM was distributed at Seatrade Miami February <strong>2002</strong> and<br />
well received by the major international Cruise Ship companies.<br />
> Production and distribution of a five-minute video presentation promoting Perth/<br />
Fremantle as a prime Liberty Port for visiting US Navy ships.<br />
> <strong>The</strong> WATC appointed PR Agencies in London and Munich to capitalize on the<br />
growing media interest in nature based tourism, to strengthen WATC media relations<br />
and to develop cost effective opportunities to position WA as <strong>Australia</strong>’s premier<br />
nature-based tourism destination.<br />
> <strong>The</strong> WATC hosted 148 international and domestic media visits to the State in<br />
<strong>2001</strong>-<strong>2002</strong> involving over 436 participants. Increased demand from the media for<br />
WA itineraries, a strengthening of the relationship with the ATC Visiting Journalist<br />
Program and the appointment of PR agencies in market reinforces the media<br />
familiarisation program as an integral component of the Commission’s marketing<br />
communication activities. High profile media included Guangzhou TV with Chinese<br />
diving Gold medalist Ms Fu Ming Xia, City Network TV (Singapore) and Channel<br />
12-TV Tokyo.<br />
> Trade Awareness - <strong>The</strong> WATC hosted 44 key trade visits to the State in <strong>2001</strong>-<strong>2002</strong><br />
involving some 350 participants. <strong>The</strong> WATC also hosted more than 80 influential<br />
inbound tour operators to its annual Inbound Tour Operators’ Workshop (ITOW) in<br />
August.<br />
> Supported by a record number of <strong>Western</strong> <strong>Australia</strong>n sellers, the <strong>2001</strong> ITOW was<br />
rated the best ever by the industry and one of the best trade shows in <strong>Australia</strong>.<br />
<strong>The</strong> ITOW (a WATC initiative) has evolved to be one of the principal trade activities<br />
for industry on the annual inbound tour calendar.<br />
> WA was appointed as the host State for the 2003 ATEC Symposium and Workshop.<br />
This followed the submission of a high quality bid from the WA tourism industry,<br />
coordinated and funded by the WATC to host this major travel trade event.
<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
> Extensive consumer and trade research on the outbound tourism potential of<br />
the United Arab Emirates and South Africa markets was presented to industry in<br />
February <strong>2002</strong> highlighting both markets as potentially lucrative markets for WA.<br />
National<br />
> As part of the State’s Crisis Marketing initiatives the WATC launched the $100<br />
Million Holiday Sale campaign. <strong>The</strong> focus of the campaign was the production and<br />
distribution of a 72-page statewide catalogue promoting WA holiday getaways for<br />
West <strong>Australia</strong>ns. <strong>The</strong> catalogue launch was supported by an integrated advertising<br />
campaign in the intrastate market comprising press, radio, television and billboard<br />
advertising.<br />
> A cooperative advertising campaign involving print and television advertising was<br />
launched in Sydney, Melbourne and Adelaide mid-November promoting value priced<br />
consumer packages.<br />
> A series of five television commercials specifically targeting the intrastate market<br />
were developed in consultation with the Regional <strong>Tourism</strong> Associations and launched<br />
in January <strong>2002</strong> as part of the State’s new Brand WA marketing creative. <strong>The</strong> suite<br />
of five commercials has been the cornerstone of all Intrastate campaigns.<br />
> Three television commercials were also produced for use in the interstate market<br />
featuring unique WA nature based holiday experiences. <strong>The</strong>se commercials were<br />
aired in a two-week campaign in April-May <strong>2002</strong> in Brisbane, Sydney, Melbourne<br />
and Adelaide. Both the interstate and intrastate commercials adopted the positioning<br />
line ‘Be touched by nature’.<br />
> From the Government’s $5 million Crisis Funding allocation, a pool of $500,000 was<br />
made available for new marketing and promotional activities through the State’s 10<br />
Regional <strong>Tourism</strong> Associations. Another $50,000 was allocated for similar initiatives<br />
in the metropolitan area. <strong>The</strong> Kimberley region, hardest hit as a result of lost air<br />
access, received an additional $250,000 for marketing and promotion.<br />
> Qantas provided significant support to <strong>Western</strong> <strong>Australia</strong> after the collapse of<br />
Ansett, by increasing air capacity on interstate and regional routes. Virgin Blue<br />
began flying to Perth in December <strong>2001</strong> with daily services from Melbourne and<br />
Adelaide. Sydney-Perth daily services commenced on 18 June <strong>2002</strong>. <strong>The</strong> arrival<br />
of Virgin Blue marked two years of strategic negotiation by the WATC.<br />
> <strong>The</strong> State Government’s new WA Regional and Rural Marketing Assistance Scheme<br />
(WARRMAS), which makes available $2 million over four years to regional <strong>Western</strong><br />
<strong>Australia</strong> for marketing initiatives in accordance with established guidelines, was<br />
managed by the WATC. A total of $386,500 was allocated in <strong>2001</strong>-<strong>2002</strong>.<br />
> A total of 28 travel agents in Queensland, NSW, Victoria, ACT, and South <strong>Australia</strong><br />
– all specialising in <strong>Western</strong> <strong>Australia</strong> - have been appointed as Booking Centres in<br />
the WA <strong>Tourism</strong> Network. Consumer inquiries received through the WATC’s Virtual<br />
Call Centre will be redirected to these agents. Trade familiarisation, educational<br />
seminars and special promotions will be arranged to develop their product<br />
knowledge.<br />
> <strong>The</strong> WATC secured a deal with Channel 9’s award winning lifestyle program,<br />
“Postcards WA”, to produce a series of ‘nature’ based stories for inclusion in the<br />
show over 12 months. <strong>The</strong> stories feature nature-based packages developed by the<br />
WATC, nature-based destinations and nature tourism product provided by operators.<br />
Under the terms of the arrangement, Postcards WA is also aired weekly on WIN<br />
TV, and Channel 9.<br />
General Marketing<br />
> Online Marketing: An innovative web-based competition, VideoclipsWA.com,<br />
was launched in May <strong>2002</strong> encouraging internet users and tourists to create a 30-<br />
second video clip of their WA holiday. <strong>The</strong> best monthly entry wins a digital video<br />
camera and the grand prize for the best overall entry will receive state-of-the-art<br />
video equipment and a travel prize.<br />
> Value of <strong>Tourism</strong> Campaign: An 11-month campaign to educate <strong>Western</strong><br />
<strong>Australia</strong>ns on the value of tourism was launched by <strong>Tourism</strong> Minister Clive Brown<br />
at Lockridge Senior High School in May <strong>2002</strong>. <strong>The</strong> campaign targets schools and<br />
the general public on the role of the tourism industry as a major economic driver<br />
for the WA economy.<br />
> Corporate Website: <strong>The</strong> corporate website www.tourism.wa.gov.au was launched<br />
in August <strong>2001</strong> as a resource for consumers, media, government and the tourism<br />
industry on the role, functions and activities of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Commission.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
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<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
Plans For <strong>The</strong> Future<br />
Partnership 21<br />
<strong>The</strong> newly appointed Board of the WATC initiated a major review of Partnership 21. It<br />
is likely that Partnership 21 will continue to be the vehicle to drive change and improve<br />
effectiveness of strategies for the WA <strong>Tourism</strong> Industry. <strong>The</strong> 5 year plan, once reviewed,<br />
will provide the industry with a clear direction and sound platform from which to go<br />
forward. It is proposed that the revised plan will have greater relevancy for industry<br />
operators, sectors and tourism related stakeholders.<br />
<strong>Western</strong> Hemisphere<br />
> <strong>The</strong> WATC will continue to develop marketing strategies aimed at broadening<br />
consumer and trade awareness of <strong>Western</strong> <strong>Australia</strong> in the State’s core markets of<br />
the United Kingdom and Germany. <strong>The</strong> WATC is reviewing consumer strategies for<br />
Brand campaigns in the United Kingdom with the aim of leveraging major partner<br />
activity including the <strong>Australia</strong>n Tourist Commission’s Brand <strong>Australia</strong> campaign.<br />
<strong>The</strong> UK Brand campaign remains the WATC’s major advertising activity in-market<br />
for <strong>2002</strong>-2003.<br />
> Adopt an aggressive PR strategy to underpin cooperative marketing activities with<br />
strategic partners in the new and emerging markets of Italy, the Netherlands, Ireland,<br />
Switzerland, Scandinavia and France.<br />
> Market development strategies focusing on the trade will continue in the emerging<br />
markets of South Africa, the Arab Gulf and New Zealand.<br />
> <strong>The</strong> WATC will continue to develop on-line marketing opportunities where possible<br />
to facilitate cost effective marketing campaigns for the Commission and industry.<br />
> <strong>The</strong> <strong>Western</strong> Hemisphere marketing team will work to strengthen relationships<br />
with strategic partners such as the ATC, Qantas, Singapore Airlines, Emirates and<br />
influential wholesalers to develop opportunities for joint marketing campaigns.<br />
> Identify and develop cross promotional opportunities with other government<br />
agencies and no-traditional marketing partners in areas such as education and<br />
cultural tourism.<br />
Eastern Hemisphere<br />
> Brand WA will remain the cornerstone of campaigns in the core markets in Singapore,<br />
Malaysia and Japan and the emerging Hong Kong and Chinese markets.<br />
> An important ingredient in all campaigns will be to reinforce <strong>Western</strong> <strong>Australia</strong>’s<br />
positioning as a leading nature-based tourism destination.<br />
> Strong relationships will continue to be developed and redefined with key regional<br />
airlines including Qantas, Singapore Airlines, Malaysia Airlines and Cathay<br />
Pacific.<br />
> Marketing campaigns have been well supported with funding contributions from<br />
industry partners in <strong>2001</strong>-<strong>2002</strong>. <strong>The</strong> WATC will aim to deliver a sustainable level of<br />
growth in this area in <strong>2002</strong>-2003.<br />
> Increased promotion of <strong>Western</strong> <strong>Australia</strong> using the websites,<br />
www.westernaustralia.net and www.westernaustralia.or.jp (the WATC’s Japanese<br />
language site).<br />
> Increase media exposure for the State by hosting influential journalists and securing<br />
the talents of celebrities as hosts or storytellers.<br />
> Introduce more efficient and effective methods to increase the amount of Chinese<br />
language material available for distribution in North Asia.<br />
> Ensure a strong WA tourism industry presence at the Japan <strong>Australia</strong> Mission<br />
2003.<br />
> Work in collaboration with the ATC to research and identify niche markets and core<br />
target segments to assist with planning cooperative brand and tactical marketing<br />
campaigns.<br />
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Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
Cross Hemisphere Marketing<br />
> Rising media costs and volatile foreign exchange rates mean the WATC must<br />
continue its aggressive and targeted media campaigns in <strong>2002</strong>-2003 to ensure<br />
brand awareness remains high.<br />
> <strong>The</strong> WATC will maintain its high profile at international consumer and trade shows<br />
and continue to work with industry to ensure appropriate <strong>Western</strong> <strong>Australia</strong>n product<br />
is represented under the Brand WA banner.<br />
> <strong>The</strong> WATC will review the Market Performance Assessment Formula during <strong>2002</strong>-<br />
2003 to ensure the most up-to-date and effective marketing model and forecasting<br />
methodology is used.<br />
> Increased emphasis will be given to developing a sophisticated and informative<br />
consumer website.<br />
> <strong>The</strong> WATC will actively pursue negotiations with international airlines to ensure that<br />
adequate air capacity levels are prioritised and where possible, increased.<br />
<strong>Australia</strong><br />
Key activities to be undertaken by <strong>Australia</strong> Marketing include:<br />
> Continuing negotiations with domestic airlines to ensure that adequate air capacity<br />
levels are maintained and, where possible, increased. <strong>Australia</strong> Marketing will<br />
also present joint marketing initiatives to domestic airlines to consolidate our<br />
relationship.<br />
> In <strong>2002</strong>-2003 <strong>Australia</strong> Marketing will formalise partnerships with strategic industry<br />
partners and wholesalers. It is envisaged that these new alliances will generate<br />
increased incremental business for the State through targeted co-operative tactical<br />
advertising.<br />
> <strong>Australia</strong> Marketing, in conjunction with the Regional <strong>Tourism</strong> Associations, will drive<br />
Brand WA campaigns delivering and consolidating the “holiday at home” message<br />
in the intrastate market.<br />
> <strong>The</strong> <strong>2002</strong>-2003 Winter Breaks campaign will be rejuvenated with a new focus on<br />
experiences. <strong>The</strong> Southern Forests will be featured heavily in this campaign.<br />
> Trade advertising, trade and media familiarisation opportunities will continue to be<br />
sourced and developed to ensure travel agents and media are aware of WA as a<br />
premier holiday destination. <strong>The</strong> media exposure will be enhanced by a substantial<br />
upgrade in the quality and selection of photographic, digital and video material<br />
available through the image library.<br />
> Support for the WA <strong>Tourism</strong> Network, country Visitor Centres and a continued<br />
emphasis on developing new marketing initiatives for regional <strong>Western</strong> <strong>Australia</strong><br />
through funding programs such as WA Rural and Regional Marketing Assistance<br />
Scheme will be a priority for <strong>Australia</strong> Marketing.<br />
> In <strong>2002</strong>-2003 niche product development and distribution, in particular, wine and<br />
food tourism, caravanning and camping sector, self drive market and cultural tourism<br />
will emerge as key drivers of business into <strong>Western</strong> <strong>Australia</strong>.<br />
Research and Analysis<br />
Major Achievements In <strong>2001</strong>-<strong>2002</strong><br />
Customised Enquiry Service - Research data, analysis, library resources and market<br />
research services were provided on a consultancy basis for clients, including existing<br />
operators, consultants, tourism researchers and people considering entry into the<br />
tourism industry.<br />
Online distribution of research - <strong>The</strong> Research Brief on <strong>Tourism</strong> publication was made<br />
available to industry on the WATC corporate website. An interactive database-driven<br />
application (<strong>Tourism</strong> Research DataCase) was also launched to provide an alternative<br />
means of obtaining research at a State and regional level.<br />
Publications - 28 research publications were maintained throughout the year,<br />
providing industry with access to a broad range of valuable destination and tourism<br />
market information. Current publications include the Research Brief on <strong>Tourism</strong>,<br />
Local Government Area Reviews, Regional <strong>Tourism</strong> Research Reviews and Touristics<br />
magazine.<br />
National Visitor Survey (NVS) and International Visitor Survey (IVS) - <strong>The</strong> Bureau<br />
of <strong>Tourism</strong> Research (BTR) conducts visitor surveys and publishes national and state<br />
results. <strong>The</strong> WATC developed and published a State Review and Regional Research<br />
Reviews that detail BTR domestic tourism information.<br />
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Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
In-house Research Projects<br />
<strong>The</strong> WATC conducted several in-house research projects on public liability, product and<br />
infrastructure and the impact of land tax valuation.<br />
> Public Liability Insurance: 116 adventure tourism operators took part in a survey<br />
to determine the impact on increasing premiums on their business. Information was<br />
collected on previous and existing insurance policies and their response to the<br />
increasing costs. <strong>The</strong> final report was widely distributed.<br />
> Product and Infrastructure Gap Review: Qualitative research was conducted with<br />
25 key operators to understand product or infrastructure gaps. <strong>The</strong> results enabled<br />
the WATC to further develop its strategic and regional plans.<br />
> Land Tax Valuation Research: Operators in Busselton were canvassed to<br />
determine the effect and impact of significant increases in land tax on caravan<br />
park and resort operators within the Shire of Busselton.<br />
Commissioned Research Projects<br />
<strong>The</strong> WATC commissioned several research projects, including:<br />
> <strong>Tourism</strong> Activity Barometer. This was established to deliver an instant outlook<br />
of the State’s tourism industry trends and future patterns.<br />
> Brand WA Campaign Evaluations (UK, Singapore, Malaysia). Commissioned<br />
research to monitor the effectiveness of the Brand WA campaigns in selected key<br />
markets.<br />
> WATC also contributed funding to several ATC commissioned research projects,<br />
including New Zealand Product Experience, UK Barriers and Japan Product<br />
Experience research.<br />
Cooperative Research - <strong>The</strong> WATC contributed $100,000 towards the Cooperative<br />
Research Centre (CRC) for Sustainable <strong>Tourism</strong> for WATC priority projects to be<br />
conducted and completed by participating universities by 2003. <strong>The</strong> WATC also<br />
cooperated with Edith Cowan University on a visitor satisfaction study. Cooperative<br />
efforts ensure that a greater amount and variety of tourism information is available.<br />
<strong>The</strong> WATC, with the help of CALM and WA universities, began compiling a database<br />
of all tourism related projects in WA. <strong>The</strong> database should increase communication<br />
and cooperation, improve knowledge and dissemination of <strong>Western</strong> <strong>Australia</strong>n tourism<br />
information, better identify tourism experts in specific areas and avoid duplication of<br />
research.<br />
Economic evaluation of events - Working with economists, market research<br />
agencies, Department of Treasury and Finance and <strong>Australia</strong>n academics to implement<br />
a methodology to calculate the economic impact of events. This will ensure wider<br />
acceptance of the results and greater comparability between events within <strong>Western</strong><br />
<strong>Australia</strong>.<br />
<strong>Tourism</strong> industry education of market intelligence - A third module for the program of<br />
industry education seminars (known as <strong>Tourism</strong> Advantage) was developed – “Research<br />
Made Simple, the next step”. This module was developed as an application of regional<br />
research information and focused on applying information to business decision<br />
making.<br />
Market Performance Assessment Formula (MPAF). - Ranked the top 21 international<br />
markets for WA and commenced a review to improve the current forecasting model.<br />
This has involved building relationships and working with various stakeholders, including<br />
<strong>Australia</strong>n <strong>Tourism</strong> Commission (ATC), BTR, University of <strong>Western</strong> <strong>Australia</strong>, <strong>Tourism</strong><br />
Queensland and the Canadian <strong>Tourism</strong> Commission.<br />
Monitoring of Aviation News - A daily monitoring system was established that provides<br />
daily news on global and local aviation issues.<br />
Plans For <strong>The</strong> Future<br />
Review of Winter Breaks - <strong>The</strong> Winter Breaks campaign has been running for 12 years<br />
with no major review. <strong>The</strong> WATC has started qualitative research among advertisers to<br />
determine the need for change. Consumer research is also being considered.<br />
Geographic Information System (GIS) - Reviewing potential uses of GIS within<br />
WATC.<br />
Niche markets - <strong>The</strong> backpacker market is the first niche market to be analysed to<br />
determine if travellers’ needs are being met. Other markets to be assessed include<br />
wine tourism, seniors, dive, arts/culture, caravanning.<br />
<strong>Tourism</strong> Health Index - To review all major existing data sources and determine if a<br />
<strong>Tourism</strong> Health Index can be developed to provide a fast and accessible summary.<br />
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<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
Key Output Area 1.2<br />
Event <strong>Tourism</strong><br />
Objective<br />
<strong>The</strong> Commission develops, attracts, supports and where appropriate manages events<br />
that are capable of generating substantial economic benefit, visitor expenditure and<br />
can cost-effectively market <strong>Western</strong> <strong>Australia</strong> nationally and internationally.<br />
<strong>The</strong> main functions of EventsCorp, the event tourism division of the <strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission, include:<br />
> Identifying, targeting and attracting suitable events of international significance that<br />
can be hosted in WA and then bidding for these events;<br />
> Developing contracts with event proponents to secure events for the State;<br />
> Establishing a calendar of regular events intended to boost the State’s image as a<br />
vibrant tourist destination and generate significant economic impact;<br />
> Ensuring that secured events are conducted according to contract or directly<br />
managed;<br />
> Working to gain maximum media exposure to promote WA via events; and<br />
> Working with tour wholesalers and specialist travel operators to generate tour<br />
packages and add value to events by generating incremental tourism business.<br />
Major Achievements In <strong>2001</strong>-<strong>2002</strong><br />
EventsCorp supported events generated nearly $47million in economic impact in<br />
<strong>2001</strong>-<strong>2002</strong> and also achieved the following:<br />
> A second Johnnie Walker Classic to be staged in February 2003 was secured. This<br />
is part of its five-year contract with IMG to deliver an international golf event. <strong>The</strong><br />
Johnnie Walker Classic has never been held in the same location for two consecutive<br />
years before and is expected to generate $9 million for the State as well as extensive<br />
international and national television in WA’s target tourism markets.<br />
> A significant group in the Rugby World Cup for 2003 was also secured and includes<br />
five matches in eight days. <strong>The</strong> group features South Africa and England (both target<br />
tourism markets for WA) who will play in a blockbuster match on 18 October 2003.<br />
Details of the group were announced by the Premier in May <strong>2002</strong>. <strong>The</strong> event is<br />
expected to generate $14.1 million for <strong>Western</strong> <strong>Australia</strong>.<br />
> Week 46 on the PGA Tour golf calendar was secured by EventsCorp under contract<br />
with PGA Tour Pty Ltd which means that the State owns this important week on<br />
the golfing calendar. This has been deferred to November 2003 when the Perth<br />
International will be played.<br />
> EventsCorp supported six regional events in <strong>2001</strong>-<strong>2002</strong> that generated significant<br />
visitor expenditure and profile for the regions.<br />
> EventsCorp signed contracts to support several other events including the Lacrosse<br />
World Championships in July <strong>2002</strong> and the Women’s Hockey World Cup in December<br />
<strong>2002</strong>.<br />
> Rally <strong>Australia</strong> secured Telstra as naming rights sponsor for a further three years.<br />
> EventsCorp secured the Hyundai Hopman Cup for 2003 and 2004 with new event<br />
owners, the International Tennis Federation.<br />
In August <strong>2001</strong>, the Rugby Union test match between South Africa and <strong>Australia</strong> was<br />
very successful because of the tourism product unit’s activities. Direct flights from South<br />
Africa were filled and the event generated 47 per cent more in visitor expenditure than<br />
the previous test match between the two countries.<br />
<strong>The</strong> WATC welcomed the City of Subiaco’s decision to approve the use of Subiaco<br />
Oval for the rugby test matches at the oval until 2005. An estimated $25 million will be<br />
generated for the WA economy by the five tests between <strong>2001</strong> and 2005.<br />
<strong>The</strong> Event <strong>Tourism</strong> Product Development output is aimed at adding value to events<br />
hosted in <strong>Western</strong> <strong>Australia</strong> by effectively developing their tourism potential.<br />
Note: One event was terminated in the <strong>2001</strong>-<strong>2002</strong> financial year – the Champions Cup,<br />
a cricket event owned and managed by the <strong>Western</strong> <strong>Australia</strong>n Cricket Association.<br />
<strong>The</strong> <strong>Australia</strong>n Cricket Board could not guarantee the continued sanctioning required<br />
by the WATC under its contract with the WACA and both parties decided the event was<br />
not able to deliver its required performance indicators.<br />
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<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
Event<br />
New Events<br />
Est. Economic<br />
Impact<br />
International<br />
Television<br />
ARU Five-test programme $25.35 million Yes<br />
Hyundai Hopman Cup<br />
(2003 – 2004)<br />
$11.3 million Yes<br />
Red Bull Dirt Pipe $0.75 million Yes<br />
FIH Women’s World Cup Hockey $7.0 million Yes<br />
TOTAL<br />
$43.4 million<br />
Regional Events<br />
Event Location Region<br />
Avon Descent Avon Valley Heartlands<br />
Margaret River Wine Festival Margaret River region South West<br />
Mandurah Crab Fest Mandurah Peel<br />
Respect Yourself Forest Rally Busselton region South West<br />
Salomon Masters Margaret River South West<br />
*Steve Fossett Balloon Northam Heartlands<br />
* Note: Funding provided from Crisis funding but contract managed through Regional Event Scheme and EventsCorp.<br />
Event<br />
Telstra Rally <strong>Australia</strong> (international<br />
television contract extended to 2010)<br />
Perth International (contract managed as<br />
Johnnie Walker Classic)<br />
Rugby Union test match (contract secured<br />
and two matches in the one financial year<br />
managed)<br />
Salomon Margaret River Masters (funded<br />
through both Regional Events Scheme and<br />
EventsCorp)<br />
Regular Events<br />
Economic Impact<br />
$19.9 million<br />
per year<br />
International<br />
Television<br />
Yes<br />
$5.87 million Yes<br />
$9.57 million Yes<br />
$0.75 million Yes<br />
Event<br />
Rugby Union Test Match <strong>Australia</strong> versus<br />
South Africa (August <strong>2001</strong>)<br />
Events Hosted in <strong>2001</strong>-<strong>2002</strong><br />
Economic Impact<br />
Media Impact<br />
(international<br />
and national<br />
media)<br />
$9.57 million High<br />
Telstra Rally <strong>Australia</strong> $19.9 million High<br />
Goju Kai Karate Championships<br />
$1.0 million<br />
(est)<br />
Hyundai Hopman Cup (January <strong>2002</strong>) $5.67 million High<br />
Johnnie Walker Classic (January <strong>2002</strong>) $5.87 million Very high<br />
Nil<br />
Champions Cup (contract terminated<br />
due to lack of <strong>Australia</strong>n Cricket Board<br />
sanctioning)<br />
TOTAL $36.09 million<br />
- -<br />
Salomon Margaret River Masters (April<br />
<strong>2002</strong>)<br />
Rugby Union match <strong>Australia</strong> versus NZ<br />
Maori<br />
$0.75 million<br />
(est)<br />
No analysis done<br />
Low<br />
Medium<br />
TOTAL $42.76 million<br />
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<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
Plans For <strong>The</strong> Future<br />
EventsCorp will seek ways of leveraging events to maximise their economic impact<br />
and potential to cluster visitor numbers in association with other tourism activities by<br />
working cooperatively with all sectors of the tourism industry. <strong>The</strong> economic impact<br />
for <strong>2002</strong>-2003 is forecast to reach $51.67 million.<br />
2003 will be a big year for the ‘Best on Earth in Perth’ event calendar with the Rugby<br />
World Cup, the UCI World BMX Championships and the second Johnnie Walker Classic.<br />
<strong>The</strong> latter part of 2003 will feature Telstra Rally <strong>Australia</strong> and the Perth International<br />
golf event in November.<br />
<strong>The</strong> World Lacrosse Championships and the FIA Women’s Hockey World Cup, both in<br />
the latter half of <strong>2002</strong> will generate a combined $16.5 million in economic impact, while<br />
the Hockey event will generate significant international television.<br />
EventsCorp will continue to leverage television exposure of events to create awareness<br />
of <strong>Western</strong> <strong>Australia</strong> as a tourism destination.<br />
EventsCorp will continue its significant leap forward as demonstrated with the Rugby<br />
Union test match in <strong>2001</strong> in the development of tourism product around events by<br />
further developing relationships with the specialist sports travel operators, particularly<br />
with the opportunity offered by the 2003 Rugby World Cup.<br />
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<strong>Report</strong> on Operations<br />
Outcome 1.0 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
Key Output Area 1.3<br />
Convention and Incentive Travel<br />
Objective<br />
<strong>The</strong> Commission has contracted the Perth Convention Bureau (PCB) to identify, develop<br />
and secure new national and international meetings.<br />
Major Achievements In <strong>2001</strong>-<strong>2002</strong><br />
<strong>The</strong> first regional Meetings Incentive Conventions and Exhibitions (MICE) unit was<br />
established in the south west and MICE marketing programs were developed in the<br />
great southern and goldfields regions.<br />
Construction of the Perth Convention and Exhibition Centre is a major milestone for<br />
the <strong>Western</strong> <strong>Australia</strong>n MICE industry. Tentative bookings for the convention centre are<br />
estimated to be worth $44 million to the WA economy. Business under development is<br />
estimated to be worth another $144 million. <strong>The</strong> Convention Centre opens up a new<br />
market previously unavailable to <strong>Western</strong> <strong>Australia</strong> by providing a venue with facilities<br />
for larger convention groups.<br />
<strong>The</strong> Perth Convention Bureau received international recognition for its awards and<br />
scholarship program and won international congress and convention association “best<br />
marketing award” for <strong>2001</strong>.<br />
Following the events of September 11 and the collapse of Ansett, the bureau developed<br />
an emergency action plan to:<br />
collated and forwarded to Qantas to assist in securing priority delegate travel as new<br />
capacity was added to the system.<br />
<strong>The</strong> State’s tourism industry recovery from the events of September 11 and the Ansett<br />
Collapse can be attributed in part to the Perth Convention Bureau’s response strategies<br />
in conjunction with industry. Crisis funding was used to extend meeting business into<br />
regional <strong>Western</strong> <strong>Australia</strong> through a national direct mail campaign. Regional incentive<br />
itineraries were promoted through a promotional brochure to buyers in the UK, Europe<br />
and South Africa.<br />
<strong>The</strong> Bureau’s <strong>2001</strong> scholarship attracted 18 submissions. Since its launch three years<br />
ago, the program has secured 11 conferences for WA representing an estimated 7,570<br />
delegates and nearly $20 million in direct delegate expenditure. This year’s winner was<br />
Sharon Grassick of the Senses Foundation who works with deaf blind people in <strong>Western</strong><br />
<strong>Australia</strong>. Sharon will use the $10,000 scholarship to travel overseas and bid for Perth<br />
to host the 14 th Deafblind International World Conference in 2007.<br />
Plans For <strong>The</strong> Future<br />
Priorities for the next 12 months will be to drive a major government and industry cooperative<br />
destination marketing campaign targeting incremental business and to further<br />
develop the successful convention ambassador program.<br />
A program is underway to increase yield from the Asian incentive sector through cooperative<br />
program development and education and will be continued in <strong>2002</strong>-2003.<br />
PCB will also conduct a government agency education program to stimulate more<br />
government hosted conferences.<br />
a) minimise the immediate impact on the MICE industry in <strong>Western</strong> <strong>Australia</strong>;<br />
b) maintain confidence in <strong>Western</strong> <strong>Australia</strong> as a convention destination; and<br />
c) review and revise where necessary all Bureau marketing activities.<br />
Within 24 hours of the grounding of Ansett, the bureau had made contact with the<br />
organisers of the 68 conferences scheduled to take place in the three months to the<br />
end of December to assess the current status of the event and to offer assistance and<br />
advice to avoid cancellation. In addition over 600 individual delegate travel plans were<br />
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<strong>Report</strong> on Operations<br />
Key Output Area 2.0 - An Enhanced Tourist Industry, Infrastructure and Product Base<br />
Key Output Area 2.1<br />
Industry Development<br />
Major Achievements In <strong>2001</strong>-<strong>2002</strong><br />
Industry Development<br />
Objective<br />
Investment is promoted, fostered and facilitated in the development of new tourist<br />
infrastructure and products, and existing tourist facilities and services in <strong>Western</strong><br />
<strong>Australia</strong> are improved.<br />
<strong>The</strong> WATC:<br />
> Provides strategic market intelligence to the tourism industry;<br />
> Identifies new infrastructure requirements for the tourism industry and ensures their<br />
development;<br />
> Works with other public sector authorities and agencies to accelerate major<br />
tourism developments, ensures that public infrastructure, facilities and services<br />
are developed and Crown land is released for tourism purposes;<br />
> Assists the private sector to increase the number and quality of tourist facilities,<br />
services and products;<br />
> Develops new products to suit tourism needs; and<br />
Aboriginal artist at work in Cossack, Pilbara<br />
> Fosters industry professionalism, education and quality control.<br />
Industry Development is an area that remains a high priority for the WATC to ensure<br />
supply meets demand generated through marketing. <strong>The</strong> Commission’s role is to ensure<br />
appropriate infrastructure and tourism product are development to meet a wide range of<br />
visitor needs and price expectations. It has been a year of considerable achievement<br />
however the WATC needs to continue to work on prioritising and resource allocation.<br />
<strong>The</strong> Statewide <strong>Tourism</strong> Development Plan <strong>2002</strong>-2006 was completed, highlighting the<br />
infrastructure and product development essential for the accelerated development of<br />
<strong>Western</strong> <strong>Australia</strong>’s tourism industry.<br />
<strong>The</strong> WATC provided specialist advice on 1,500 product/infrastructure projects in the<br />
11 tourism regions of <strong>Western</strong> <strong>Australia</strong>.<br />
<strong>The</strong> National <strong>Tourism</strong> Accreditation Program (NTAP) conducted in association with<br />
<strong>Tourism</strong> Council <strong>Western</strong> <strong>Australia</strong> (TCWA) accredited 500 businesses for the first<br />
time.<br />
<strong>The</strong> WATC also endorses and continues to support the WA <strong>Tourism</strong> Awards as a<br />
valuable avenue of recognising excellence within the industry and promoting industry<br />
standards and accreditation.<br />
Sustainable Product Development<br />
Five new environmental tourism packages were developed and launched by the newly<br />
created Sustainable Product Development unit.<br />
<strong>The</strong> Unit, in conjunction with the <strong>Western</strong> <strong>Australia</strong>n Indigenous <strong>Tourism</strong> Operators<br />
Committee (WAITOC) and the Department of Industry and Technology, produced<br />
a CD featuring Indigenous <strong>Tourism</strong> in <strong>Western</strong> <strong>Australia</strong>. <strong>The</strong> CD was distributed<br />
to international travel trade representatives attending the <strong>2002</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Exchange in Brisbane.<br />
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<strong>Report</strong> on Operations<br />
Key Output Area 2.0 - An Enhanced Tourist Industry, Infrastructure and Product Base continued<br />
<strong>The</strong> 7th annual Forum Advocating Cultural and Eco <strong>Tourism</strong> (FACET) Conference was<br />
held in Albany in July <strong>2001</strong>. <strong>The</strong> conference focused on the potential of rural tourism<br />
within WA and was sponsored by the WATC.<br />
In May <strong>2002</strong>, the FACET Conference, WA <strong>Tourism</strong>: In Touch with Sustainable Future<br />
<strong>2002</strong> Conference and Trade Expo <strong>2002</strong>, was held at the Aquarium of <strong>Western</strong> <strong>Australia</strong><br />
(AQWA) in Hillarys. <strong>The</strong> conference, sponsored by the WATC, was an officially<br />
recognized event for the International Year of Ecotourism <strong>2002</strong>, and attracted more<br />
than 150 delegates.<br />
Plans For <strong>The</strong> Future<br />
Sustainable Product Development<br />
Priority projects for this unit over the next financial year will include the further development<br />
of Wine and Food <strong>Tourism</strong> product, the continued planning for new Indigenous tourism<br />
products and the creation of an Attraction-Based <strong>Tourism</strong> Development Strategy Model<br />
in Purnululu National Park.<br />
<strong>The</strong> Unit is also developing a Green Module ‘addition’ to the National <strong>Tourism</strong><br />
Accreditation Program operated by <strong>Tourism</strong> Council WA.<br />
Additional Environmental <strong>Tourism</strong> Packages will be developed and launched throughout<br />
<strong>Western</strong> <strong>Australia</strong>.<br />
Industry Development<br />
<strong>The</strong> Industry Development area provides specialist services to ensure all stakeholders<br />
are working towards a sustainable future for the State’s tourism industry. <strong>The</strong> WATC<br />
will focus on providing leadership to increase environmental awareness, identify the<br />
potential impacts from tourism and designing environmentally sustainable practices<br />
that are adopted in day to day tourism operations. <strong>The</strong> WATC will assist communities<br />
to identify, package and promote their own unique tourism products and experiences<br />
so that communities are able to optimise the opportunities available from domestic and<br />
international tourism.<br />
<strong>The</strong> WATC will work with local operators to develop and implement a <strong>Tourism</strong> Precinct<br />
Strategy for Fremantle and Northbridge, enhance the National <strong>Tourism</strong> Accreditation<br />
Program to include customer service standards and processes and improve risk<br />
management components.<br />
Several issues remain outstanding and will need to be tackled using the full resources<br />
of State and Federal governments and industry representatives. <strong>The</strong>se issues include<br />
finding a solution to rising public liability insurance cost and determining and resolving<br />
access problems on pastoral leases. <strong>The</strong> provision of a wide range of product to<br />
accommodate the full spectrum of accommodation options according to price demands<br />
will also be pursued.<br />
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<strong>Report</strong> on Operations<br />
Key Output Area 2.0 - An Enhanced Tourist Industry, Infrastructure and Product Base continued<br />
Key Output Area 2.2<br />
Visitor Servicing<br />
Objective<br />
This output group ensures the provision of destination and product information and<br />
booking facilities throughout <strong>Western</strong> <strong>Australia</strong> to increase the likelihood of visitors<br />
travelling in the State and to encourage them to increase the length of their stay.<br />
<strong>The</strong> WATC coordinates a State-wide visitor servicing network and operates a central<br />
“call centre” and retail information outlet in Perth.<br />
This output group is made up of two key areas:<br />
> WA <strong>Tourism</strong> Network; and<br />
> WA Visitor Centre.<br />
WA <strong>Tourism</strong> Network<br />
Objective<br />
<strong>The</strong> WA <strong>Tourism</strong> Network has two major objectives:<br />
1. Provide a structural framework for visitor servicing to operate efficiently and<br />
effectively throughout <strong>Western</strong> <strong>Australia</strong><br />
2. Provide a framework for information and bookings to be made using modern<br />
technology through the telecommunications system and the Internet.<br />
<strong>The</strong> WA <strong>Tourism</strong> Network encourages visitors to extend their stay in <strong>Western</strong> <strong>Australia</strong><br />
by ensuring booking facilities and destination and product information is easily available<br />
and accessible.<br />
This involves the coordination of a Statewide visitor servicing network and the operation<br />
of a 'Virtual Call Centre'. <strong>The</strong> Virtual Call Centre diverts incoming phone inquiries to the<br />
relevant Network Visitor Centre allowing customers to be serviced by local experts.<br />
Major Achievements In <strong>2001</strong>-<strong>2002</strong><br />
<strong>The</strong> Virtual Call Centre received and distributed more than 100,000 calls with recognition<br />
accuracy in excess of 94 per cent.<br />
<strong>The</strong> WA <strong>Tourism</strong> Network incorporates 32 Visitor Centres in <strong>Western</strong> <strong>Australia</strong>, with<br />
at least one in each tourism region, and another 26 booking centres (travel agents) in<br />
the other <strong>Australia</strong>n States.<br />
Funding totalling $285,000 was allocated to 24 projects through the Country Visitor<br />
Centre Sustainability Enhancement Scheme (CVCSES).<br />
<strong>The</strong> WA <strong>Tourism</strong> Network successfully exceeded requirements for product upload to<br />
the <strong>Australia</strong>n <strong>Tourism</strong> Data Warehouse (ATDW) which supplies product information<br />
for the <strong>Australia</strong>n <strong>Tourism</strong> Commission Web Site www.australia.com.<br />
Officers from the WATC provided WA <strong>Tourism</strong> Network training to Visitor Centres to<br />
maximise new sales and booking opportunities.<br />
<strong>The</strong> WATC’s Virtual Call Centre won a prestigious <strong>Australia</strong>n Information Industry<br />
Association award in the category of “Implementation Telecommunications and<br />
Telecommunications Networking”. <strong>The</strong> Award was presented for the WATC’s application<br />
of voice recognition technology.<br />
Plans For <strong>The</strong> Future<br />
<strong>The</strong> WA <strong>Tourism</strong> Network will continue to work to strengthen the quantity and quality<br />
of Visitor Centres in the WA <strong>Tourism</strong> Network.<br />
It will also continue its focus on strengthening industry participation in Local Visitor<br />
Centres, Regional <strong>Tourism</strong> Associations and the WA <strong>Tourism</strong> Network as part of the<br />
sustainable Visitor Servicing framework.<br />
Other priorities include enhanced product and destination information distribution and<br />
data exchange through partnerships with the <strong>Australia</strong>n Tourist Commission, <strong>Australia</strong>n<br />
<strong>Tourism</strong> Data Warehouse, Regional <strong>Tourism</strong> Associations and Visitor Centres.<br />
Enhance Visitor Centre Viability in WA through the second year of funding for the<br />
CVCSES program and revenue raised from WA <strong>Tourism</strong> Network membership.<br />
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Key Output Area 2.0 - An Enhanced Tourist Industry, Infrastructure and Product Base continued<br />
<strong>Western</strong> <strong>Australia</strong>n Visitor Centre<br />
Objective<br />
This output group ensures the provision of destination and product information and<br />
booking facilities throughout <strong>Western</strong> <strong>Australia</strong> to increase the likelihood of visitors<br />
travelling in the State and to encourage them to increase the length of their stay.<br />
Major Achievements In <strong>2001</strong>-<strong>2002</strong><br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n Visitor Centre successfully handled 418,303 customer contacts<br />
in the year <strong>2001</strong>-<strong>2002</strong>. Of these 292,653 were walk-in visitors, an increase of four per<br />
cent on the previous year<br />
<strong>The</strong> centre responded to 7088 e-mail inquiries and, on average, 2000 postage brochure<br />
requests each month.<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n Call Centre serviced 118,562 national telephone inquiries.<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n Visitor Centre attracted 120 new members between the launch<br />
in January <strong>2002</strong> and June <strong>2002</strong>.<br />
Plans For <strong>The</strong> Future<br />
A priority for <strong>2002</strong>-2003 will be improve sales and services through the Centre by the<br />
further alignment of front and back office systems with Reservation Systems and the<br />
product database to improve client service efficiency and increase sales.<br />
<strong>The</strong> introduction of Ticketmaster7 and the Art Gallery of <strong>Western</strong> <strong>Australia</strong> ticketing<br />
will increase the profile of the Centre with Perth residents and encourage a broader<br />
customer base.<br />
<strong>The</strong> Centre will also aim to further develop partnerships with educational facilities to<br />
increase the tourism potential of the overseas student market and increase its sales<br />
targets for industry partners, particularly WA <strong>Tourism</strong> Network members.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
25<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Output and Outcomes<br />
Chinderwarriner Pool, Millstream-Chitchester National Park, Pilbara<br />
Performance Review<br />
Gross<br />
Operating<br />
Cost ($’000)<br />
Revenue<br />
($’000)<br />
Net<br />
Operating<br />
Cost ($’000)<br />
FTE's<br />
00-01 01-02 00-01 01-02 00-01 01-02 00-01 01-02<br />
National Marketing 6,097 8,721 616 1,236 5,481 7,485 18.9 24.2<br />
International Marketing 10,379 12,220 2,917 2,464 7,462 9,756 32.4 36.1<br />
Event <strong>Tourism</strong> 11,710 14,947 4,492 4,825 7,218 10,122 13.5 18.1<br />
Convention and Incentive<br />
Travel<br />
Strategic Marketing<br />
Intelligence<br />
<strong>Tourism</strong> Planning and<br />
Infrastructure<br />
Product and Industry<br />
Development<br />
Information Distribution and<br />
Retail Booking Service<br />
1,080 1,064 49 6 1,031 1,058 0.7 0.8<br />
745 1,032 38 18 707 1,014 5.4 6<br />
2,265 861 55 35 2,210 926 5.4 6<br />
3,627 2,388 156 162 3,471 2,226 18.9 21.1<br />
3,893 5,056 1,012 908 2,881 4,148 37.3 41.6<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
26<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Output Performance<br />
National Marketing<br />
Quantity Quality Timeliness Cost<br />
Strategies aimed at raising consumer awareness of WA as a desirable tourist<br />
destination<br />
Number of<br />
interstate<br />
consumer<br />
awareness<br />
strategies<br />
Interstate consumer awareness<br />
i) Perceived knowledge : percentage of people<br />
aware of WA as a holiday destination for “a lot”<br />
category<br />
ii) Propensity to consider: percentage of people<br />
with a preference to travel to WA for 3 nights or<br />
more<br />
iii) Level of advertising awareness of WA as a<br />
holiday destination<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost per<br />
interstate<br />
consumer<br />
awareness<br />
strategies<br />
Actual 1 i) 4.8% ii) 15.8% iii) 9.4% 100% $5,196,430<br />
Target 1 i) 6.0% ii) 16% iii) 10% 100% $2,748,138<br />
Number of<br />
intrastate<br />
consumer<br />
awareness<br />
strategies<br />
Intrastate consumer awareness<br />
i) Level of advertising awareness of WA as a<br />
holiday destination<br />
ii) % of <strong>Western</strong> <strong>Australia</strong>ns preferring to travel<br />
within WA for 3 nights or more<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost of<br />
intrastate<br />
consumer<br />
awareness<br />
strategies<br />
Actual 1 i) 31.23% ii) 47.03% 100% $1,299,108<br />
Target 1 i) 35% ii) 36% 100% $687,034<br />
Number of<br />
Regional<br />
<strong>Tourism</strong><br />
Authority<br />
contracts<br />
managed<br />
Proportion of regional tourism authority contract<br />
conditions met<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost per<br />
Regional<br />
<strong>Tourism</strong><br />
Association<br />
contract<br />
managed<br />
Actual 10 100% 100% $52,153<br />
Target 10 100% 100% $63,323<br />
Strategies aimed at raising trade awareness of WA as a desirable tourist<br />
destination<br />
Number<br />
of trade<br />
awareness<br />
strategies<br />
Trade awareness<br />
i) Knowledge levels of WA product<br />
ii) WATC’s contribution to current knowledge levels<br />
(rated significant or above)<br />
iii) Likelihood of recommending WA as a holiday<br />
destination compared to previous 12 months<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost of trade<br />
awareness<br />
strategies<br />
Actual 1 i) 48% ii) 71% iii) 54% 100% $831,581<br />
Target 1 i) 60% ii) 80% iii) 70% 100% $751,335<br />
Quantity Quality Timeliness Cost<br />
Strategies aimed at incremental business in cooperation with industry<br />
Number of<br />
incremental<br />
business<br />
strategies<br />
Visitor expenditure generated by tactical campaigns<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost of<br />
incremental<br />
business<br />
strategies<br />
Actual 1 $5,467,544 100% $627,441<br />
Target 1 $4,886,000 100% $622,994<br />
Strategies aimed at increasing tourism product and destination information<br />
distribution<br />
Number of<br />
information<br />
enquiries<br />
serviced<br />
Overall level of customer satisfaction with information<br />
accessed<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost per<br />
enquiry<br />
serviced<br />
Actual 45,000 90% 100% $4.76<br />
Target 45,000 80% 100% $4.68<br />
Strategies aimed at increasing airline access to WA<br />
Number of<br />
increased air<br />
transport seats<br />
into WA<br />
Proportion of targeted air transport seats into WA<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Total cost of<br />
activity<br />
Actual (394,086) Reduction due to demise of Ansett 100% $18,718<br />
Target 3,000 100% 100%<br />
Policy advice to Government<br />
Number<br />
of advices<br />
provided to<br />
Government<br />
Proportion of first drafts accepted<br />
Proportion<br />
of advices<br />
provided<br />
within agreed<br />
timeframes<br />
$9.87(Cost<br />
per seat<br />
targeted)<br />
Cost per policy<br />
advice<br />
Actual 316 96% 94% $38<br />
Target 100 90% 95% $96<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
27<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Output Performance continued<br />
International Marketing<br />
Quantity Quality Timeliness Cost<br />
Strategies aimed at raising consumer awareness of WA as a desirable tourist<br />
destination<br />
Number of<br />
consumer<br />
awareness<br />
strategies<br />
Actual 1<br />
Target 1<br />
i) Perceived knowledge : percentage of people<br />
aware of WA as a holiday destination (for<br />
category “a lot”)<br />
ii) Propensity to consider: Percentage of people<br />
who will consider a trip to WA (for category<br />
“definitely consider”)<br />
i) S’pore 4%, UK 6%, Japan n/a*, Malaysia 7%<br />
ii) S’pore 15%, UK 27%, Japan n/a*, Malaysia 16%<br />
i) S’pore 8%, UK 5%, Japan 3%, Malaysia 3%<br />
ii) S’pore 15%, UK 34%, Japan2%, Malaysia 10%<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost of<br />
consumer<br />
awareness<br />
strategies<br />
100% $6,544,608<br />
100% $4,160,136<br />
Strategies aimed at raising trade awareness of WA as a desirable tourist<br />
destination<br />
Number<br />
of trade<br />
awareness<br />
strategies<br />
i) Knowledge levels of WA product (using rating of<br />
8/10 and above)<br />
ii) WATC’s contribution to current knowledge levels<br />
(rated significant and very significant)<br />
iii) Likelihood of recommending WA as a holiday<br />
destination (using rating more likely now)<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost of trade<br />
awareness<br />
strategies<br />
Actual 1 i) 72% ii) 94% iii) 55% 100% $3,090,768<br />
Target 1 i) 65% ii) 65% iii) 50% 100% $2,354,223<br />
Strategies aimed at incremental business in cooperation with industry<br />
Number of<br />
incremental<br />
business<br />
strategies<br />
<strong>The</strong> extent to which visitor expenditure is generated by<br />
incremental tourism activities<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost of<br />
incremental<br />
business<br />
strategies<br />
Actual 1 $6.161 million ** 100% $1,444,645<br />
Target 1 $13.6 million 100% $1,829,840<br />
Strategies aimed at increasing tourism product and destination information<br />
distribution<br />
Number of<br />
information<br />
enquiries<br />
serviced<br />
Overall level of industry satisfaction with tourism<br />
product and destination information distribution<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost per<br />
enquiry<br />
serviced<br />
Actual 20,597 91% 100% $50.48<br />
Target 21,600 80% 100% $39.92<br />
Quantity Quality Timeliness Cost<br />
Strategies aimed at increasing international airline access to WA<br />
Number of<br />
increased air<br />
transport seats<br />
into WA<br />
Actual (90,870)<br />
Proportion of targeted air transport seats into <strong>Western</strong><br />
<strong>Australia</strong> obtained<br />
Reduction due to global downturn in air travel following<br />
September 11.<br />
Meetings<br />
held as per<br />
Operational<br />
Plan<br />
timeframes<br />
More meetings<br />
than targeted<br />
were held<br />
following Sept<br />
11<br />
Target 5,000 100% 100%<br />
Local industry education of international markets<br />
Number<br />
of markets<br />
reviewed<br />
against criteria<br />
Accuracy of reviews<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Total Cost of<br />
activity<br />
$12,502<br />
$2.25 (Cost<br />
per seat<br />
targeted)<br />
Cost per<br />
market review<br />
Actual 21 100% 100% $900<br />
Target 22 100% 100% $813<br />
Number of<br />
educational<br />
seminars<br />
conducted<br />
Participant satisfaction with educational seminars<br />
conducted<br />
Delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost pr<br />
educational<br />
seminar<br />
conducted<br />
Actual 3 Not measured 100% $18,899<br />
Target 3 80% 100% $17,883<br />
Policy advice to Government<br />
Number<br />
of advices<br />
provided to<br />
Government<br />
Proportion of first drafts accepted<br />
Proportion<br />
of advices<br />
provided<br />
within agreed<br />
timeframes<br />
Cost per policy<br />
advice<br />
Actual 100 96% 94% $119<br />
Target 30 90% 95% $375<br />
Notes:<br />
* Due to the high cost of advertising in Japan, the WATC chose to participate in cooperative tactical advertising with the<br />
ATC. <strong>The</strong> ATC did not measure the percentage of people in Japan who are of WA as holiday destination north their<br />
propensity to consider a trip to WA.<br />
** Please note that the instability of the tourism industry during the year has impacted on the availability of reliable visitor<br />
expenditure figures at the time of publishing this report. <strong>The</strong> figure provided is incomplete.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
28<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Output Performance continued<br />
W A<br />
Event <strong>Tourism</strong><br />
Quantity Quality Timeliness Cost<br />
Strategies aimed at attracting events to <strong>Western</strong> <strong>Australia</strong><br />
Number of<br />
bids submitted<br />
for events<br />
Estimated economic impact of successful bids for<br />
events<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
Bids made<br />
for events<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
29<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong><br />
Cost per bid<br />
submitted<br />
Actual 4 $44.4 million 100% $194,408<br />
Target 4 $30 million 100% $108,984<br />
Strategies aimed at raising consumer awareness of WA as a desirable tourist<br />
destination<br />
Number of<br />
consumer<br />
awareness<br />
strategies<br />
(equates to<br />
the number of<br />
events hosted)<br />
Value ($) of television media coverage in selected<br />
tourism markets for events hosted<br />
Proportion<br />
of consumer<br />
awareness<br />
strategies<br />
implemented<br />
in conjunction<br />
with events<br />
hosted<br />
Cost per<br />
consumer<br />
awareness<br />
strategy for<br />
events hosted<br />
Actual 4 $7.128 million 100% $50,002<br />
Target 5 $6 million 100% $119,037<br />
Strategies aimed at generating incremental business<br />
Number of<br />
strategies for<br />
incremental<br />
business<br />
through hosted<br />
events<br />
<strong>The</strong> value of economic impact generated by<br />
incremental tourism activity ie events hosted<br />
<strong>The</strong> proportion<br />
of events held<br />
on time<br />
Cost per<br />
incremental<br />
business<br />
strategy<br />
Actual 6 $42.03 million 100% $2,306,690<br />
Target 6 $30.0 million 100% $2,087,889<br />
Strategies aimed at event tourism product development<br />
Number of<br />
event products<br />
developed<br />
Value of visitor expenditure generated by event<br />
products<br />
Proportion<br />
of event<br />
productions<br />
developed on<br />
time<br />
Cost per<br />
event product<br />
developed<br />
Actual 35 $1,500,000 100% $3,113<br />
Target 42 $1,700,000 100% $5,290<br />
Policy advice to Government<br />
Number<br />
of advices<br />
provided to<br />
Government<br />
Proportion of first drafts accepted<br />
Proportion<br />
of advices<br />
provided<br />
within agreed<br />
timeframes<br />
Cost per<br />
advice<br />
provided<br />
Actual 207 98% 95% $97<br />
Target 100 90% 95% $197<br />
Convention and Incentive Travel<br />
Quantity Quality Timeliness Cost<br />
Strategies aimed at attracting meeting, incentive travel, conventions and<br />
exhibitions to WA<br />
Number<br />
of bids for<br />
conventions<br />
Projected visitor expenditure from successful bids for<br />
conventions<br />
Bids for<br />
conventions<br />
made<br />
according to<br />
Operational<br />
Plan timeframe<br />
Cost per<br />
convention bid<br />
Actual 213 $66.5 million 100% $4,497<br />
Target 110 $80.98 million 100% $9,361<br />
Strategies aimed at incremental business in cooperation with industry<br />
Number of<br />
incremental<br />
tourism events<br />
hosted ie<br />
conventions<br />
hosted<br />
Actual visitor expenditure from incremental tourism<br />
activities ie conventions hosted<br />
Proportion of<br />
conventions<br />
held as<br />
planned<br />
Cost per<br />
incremental<br />
tourism activity<br />
Actual 198 $42.28 million 100% $537<br />
Target 124 $47.89 million 100% $685<br />
Policy advice to Government<br />
Number<br />
of advices<br />
provided to<br />
Government<br />
Proportion of first drafts accepted<br />
Proportion<br />
of advices<br />
provided<br />
within agreed<br />
timeframes<br />
Cost per policy<br />
advice<br />
Actual 0 n/a n/a n/a<br />
Target 15 90% 95% $339
<strong>Report</strong> on Operations<br />
Output Performance continued<br />
Strategic Market Intelligence<br />
Quantity Quality Timeliness Cost<br />
Provision of strategic market intelligence to the tourism industry<br />
Number of<br />
data tables<br />
available to<br />
industry and<br />
updated twice<br />
yearly<br />
Proportion of industry (registered) having access to<br />
common good research<br />
Updated tables<br />
available on<br />
time<br />
Cost per data<br />
table<br />
Actual 100 100% 100% $4,045<br />
Target 180 70% 100% $1,932<br />
Number of<br />
common good<br />
consultancies<br />
Overall level of industry satisfaction with information<br />
provided<br />
Satisfaction<br />
with timeliness<br />
of consultancy<br />
service<br />
provided<br />
Cost per<br />
consultancy<br />
Actual 863 75% 100% $733<br />
Target 1200 85% 85% $4,443<br />
<strong>Tourism</strong> industry education of market intelligence<br />
Number<br />
of industry<br />
education<br />
seminars<br />
delivered<br />
Level of customer satisfaction with industry education<br />
service provided<br />
Services<br />
delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost per<br />
industry<br />
education<br />
seminar<br />
Actual 2 100% 100% $4,814<br />
Target 6 80% 85% $2,122<br />
Number of<br />
publications<br />
maintained<br />
Level of customer satisfaction with publications<br />
provided<br />
Satisfaction<br />
with timeliness<br />
of consultancy<br />
service<br />
provided<br />
Cost per<br />
publication<br />
Actual 28 100% 100% $222<br />
Target 26 85% 85% $317<br />
Number of<br />
consultancy<br />
requests<br />
serviced<br />
Level of customer satisfaction with consultancy<br />
request service provided<br />
Satisfaction<br />
with timeliness<br />
of consultancy<br />
service<br />
provided<br />
Cost per<br />
consultancy<br />
requested<br />
Actual 30 91% 100% $415<br />
Target 50 85% 85% $329<br />
<strong>Tourism</strong> Planning and Infrastructure<br />
Quantity Quality Timeliness Cost<br />
Strategies and planning advice on identified tourism issues<br />
<strong>Annual</strong><br />
stakeholders<br />
infrastructure<br />
plan reviewed<br />
Produced annually<br />
Provided<br />
within agreed<br />
timeframe<br />
Cost per plan<br />
Actual 1 100% 100% $36,515<br />
Target 1 80% 100% $27,905<br />
<strong>Tourism</strong><br />
investment and<br />
jobs register<br />
<strong>Tourism</strong> investment and jobs registers produced<br />
In accordance<br />
with<br />
Operational<br />
Plan timeframe<br />
Cost per<br />
register<br />
Actual 2 100% 100% $42,601<br />
Target 2 100% 100% $32,556<br />
Identification of new infrastructure requirements for the tourism industry<br />
Number of<br />
infrastructure<br />
projects<br />
worked on<br />
Value of infrastructure sites worked on and progressed<br />
to the agreed stage<br />
Proportion of<br />
infrastructure<br />
sites<br />
implemented<br />
or produced<br />
within agreed<br />
timeframe<br />
Cost per<br />
infrastructure<br />
site<br />
developed to<br />
implementation<br />
or approval<br />
stage<br />
Actual 2 > $7.5 million 100% $225,722<br />
Target 2 > $150 million 100% $262,031<br />
Policy advice to Government<br />
Number<br />
of advices<br />
provided to<br />
Government<br />
Proportion of first drafts accepted<br />
Proportion of<br />
policy advices<br />
provided on<br />
time<br />
Cost per policy<br />
advice<br />
Actual 50 95% 98% $56<br />
Target 50 90% 95% $35<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
30<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
<strong>Report</strong> on Operations<br />
Output Performance continued<br />
<strong>Tourism</strong> Product and Industry Development<br />
Quantity Quality Timeliness Cost<br />
Provision of product development advice to operators and development of<br />
new products to suit tourism market needs<br />
Number of<br />
Regional Plans<br />
updated<br />
Level of customer satisfaction with information<br />
provided.<br />
Services<br />
delivered<br />
according to<br />
Operational<br />
Plan<br />
timeframes<br />
Cost per<br />
tourism<br />
product and<br />
project funded<br />
Actual 11 84% 100% $17,396<br />
Target 10 80% 100% $18,866<br />
Number of<br />
agreed stages<br />
for minor<br />
infrastructure<br />
projects<br />
and tourism<br />
development<br />
products<br />
developed<br />
Customer satisfaction with tourism products<br />
developed.<br />
Services<br />
delivered<br />
according to<br />
Operational<br />
Plan timeframe<br />
Cost per<br />
infrastructure,<br />
tourism<br />
product and<br />
project worked<br />
on.<br />
Actual 66 88% 100% $21,745<br />
Target 59 80% 100% $23,982<br />
Number of<br />
common good<br />
information<br />
requests<br />
processed<br />
Level of customer satisfaction with information<br />
provided.<br />
Services<br />
delivered<br />
according to<br />
Operational<br />
Plan timeframe<br />
Cost per<br />
information<br />
request<br />
Actual 1,576 95% 100% $182<br />
Target 500 80% 100% $566<br />
Implementation of tourism industry professionalism and quality assurance<br />
mechanisms<br />
Number of<br />
additional<br />
operators<br />
registered for<br />
the National<br />
<strong>Tourism</strong><br />
Industry<br />
Accreditation<br />
Scheme<br />
Operators passing verification audit under the National<br />
<strong>Tourism</strong> Industry Accreditation Scheme<br />
Delivered in<br />
accordance<br />
with<br />
operational<br />
plan<br />
timeframes<br />
Cost per<br />
accredited<br />
operator<br />
Actual 42 100% 100% $11,763<br />
Target 50 75% 100% $9,123<br />
Policy advice to Government<br />
Number<br />
of advices<br />
provided to<br />
Government<br />
Proportion of first drafts accepted<br />
Proportion of<br />
policy advices<br />
provided on<br />
time<br />
Cost per policy<br />
advice<br />
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Actual 2,226 95% 98% $108<br />
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Tourist Information Distribution and Retail Booking Service<br />
Quantity Quality Timeliness Cost<br />
Strategies aimed at tourism product and destination information distribution<br />
Number of<br />
inquiries<br />
serviced by<br />
Perth Visitor<br />
Centre<br />
Overall level of customer satisfaction with level of<br />
service with Perth Visitor Centre<br />
Customer<br />
Satisfaction<br />
with timeliness<br />
by WA Visitor<br />
Centre<br />
Cost per<br />
inquiry by the<br />
WA Visitor<br />
Centre<br />
Actual 418,803 93% 100% $5.72<br />
Target 540,000 80% 80% $5.14<br />
Number of<br />
inquiries<br />
serviced by<br />
other Visitor<br />
Centres<br />
(virtual calls<br />
diverted)<br />
Overall level of customer satisfaction with level of<br />
service by other Network Visitor Centres<br />
Customer<br />
Satisfaction<br />
with timeliness<br />
by other<br />
Network Visitor<br />
Centres<br />
Cost per<br />
inquiry by<br />
other Network<br />
Visitor Centres<br />
Actual 37,436 82% 85% $7.11<br />
Target 80,000 80% 80% $3.05<br />
Strategies aimed incremental tourism business in cooperation with industry<br />
Number of<br />
passengers<br />
booked<br />
Visitor expenditure generated<br />
Customer<br />
satisfaction<br />
with timeliness<br />
Cost per<br />
inquiry<br />
serviced<br />
Actual 21,425 $18.03 million 85% $111.81<br />
Target 16,800 $23.35 million 80% $93.10
<strong>Report</strong> on Operations<br />
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Corporate<br />
Support,<br />
Structure<br />
and<br />
Governance<br />
Contents<br />
Page<br />
Paradise Beach, Ningaloo Marine Park, Coral Bay<br />
iii. Corporate Support, Structure and<br />
Governance<br />
- Clear Planning and Direction 34<br />
- WATC Board of Commissioners 35<br />
- WATC Advisory Councils and<br />
Committees to Commissioners 36<br />
- Appropriate and Timely Information 37<br />
- Sound Resource Management 40<br />
- Adequate Controls 42<br />
- Compliance Statement 43<br />
- Appendices 44<br />
Publications 44<br />
Research and Development<br />
Summary 45<br />
Advertising and Sponsorship 45<br />
How to Contact the Commission 46<br />
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Corporate Support, Structure and Governance<br />
Clear Planning and Direction<br />
Functions of the Board<br />
<strong>The</strong> Board of Commissioners is the governing body for the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Commission. It is responsible for performing the functions set out in the Act.<br />
<strong>The</strong> strategic roles of the Board include:<br />
> setting the overall strategic direction for the WATC;<br />
> determining standards of operation; and<br />
> coordinating industry focused planning, policies and decision-making processes.<br />
<strong>The</strong> operational roles of the Board include:<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission has embraced the principles of corporate<br />
government in alignment with the ‘Corporate Guidelines for <strong>Western</strong> <strong>Australia</strong>n Public<br />
Sector Chief Executive Officers’ to achieve the following outcomes:<br />
> Effective resource management;<br />
Little Wharton Beach, Cape Le Grand National Park, Esperance<br />
> setting strategies for the achievement of outcomes;<br />
> development of cooperative strategies to integrate industry-wide initiatives;<br />
> striving for best practice and compliance with minimum standards; and<br />
> delegating operational decision-making to officers within the WATC.<br />
> Effective delivery of public services;<br />
> Compliance with the varied requirements of a statutory authority; and<br />
> Providing the Minister for <strong>Tourism</strong> with the required level of information.<br />
Clear Planning and Direction<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission was established in January 1984<br />
under the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission Act 1983. In December 1994, the<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission Amendment Act was proclaimed and came<br />
into operation on 31 December 1994.<br />
<strong>The</strong> Amendment Act separated the role of the Chairman and Chief Executive Officer<br />
and expanded the Board of Commissioners to a maximum of eight members, one of<br />
whom is appointed Chairperson. <strong>The</strong> Governor also appointed the Chief Executive<br />
Officer as an additional member to the Board bringing the total to nine.<br />
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Corporate Support, Structure and Governance<br />
Clear Planning and Direction continued<br />
WATC Board of Commissioners<br />
Commissioners<br />
<strong>The</strong> Board of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission consists of a Chairman and<br />
seven members. Responsible to the Minister for <strong>Tourism</strong>, the Honorable Clive Brown<br />
MLA, the Board sets policy and administers the Act.<br />
Alan Mulgrew (Chairman)<br />
Alan Mulgrew (Principal) established Airstrat Partnership Pty Ltd in 1997 as a corporate<br />
advisory company specializing in strategic management advice in areas of corporate<br />
re-engineering, infrastructure planning/implementation and commercial development.<br />
Mr Mulgrew has a strong aviation background and has worked extensively overseas at a<br />
senior management level. Mr Mulgrew was the former Chief Executive Officer of Sydney<br />
Airport and prior to that appointment he was General Manager of Perth Airport.<br />
Laurie O’Meara (Deputy Chairman)<br />
Laurie O’Meara is the past-president of the newly established <strong>Tourism</strong> Council <strong>Western</strong><br />
<strong>Australia</strong> and a champion of the <strong>Tourism</strong> Accreditation program. Mr O’Meara is a driving<br />
force behind the tourism industry in <strong>Western</strong> <strong>Australia</strong> and is the current President of<br />
the <strong>Australia</strong>n <strong>Tourism</strong> Accreditation Association and the deputy chair of the Rottnest<br />
Island Authority Board. His extensive experience includes ownership and operation of<br />
the Best <strong>Western</strong> Hotel chain license in <strong>Western</strong> <strong>Australia</strong>, the Emerald Hotel in Perth<br />
and the Emerald Colonial Lodge in Margaret River.<br />
Janet Holmes à Court<br />
Janet Holmes à Court is Chairman of Heytesbury Pty Ltd, a family owned company<br />
with extensive business interests in <strong>Australia</strong>. Mrs Holmes à Court is the Chairman<br />
of the John Holland Group, now part of the Leighton Group; the <strong>Australia</strong>n Children’s<br />
Television Foundation; the Black Swan <strong>The</strong>atre Company and the West <strong>Australia</strong>n<br />
Symphony Orchestra, and is also on the Board of Goodman Fielder Limited. Mrs Holmes<br />
à Court has been widely recognized nationally and internationally for her contribution<br />
to education and her services to business, arts and community.<br />
Helen Creed<br />
Helen Creed is a Vice-President of the ACTU, Chair of the ACTU’s women’s committee<br />
and a Director of the TLC Building Society Group. As the former State Secretary and<br />
current National President of the <strong>Australia</strong>n Liquor, Hospitality and Miscellaneous<br />
Workers Union she is ideally placed to voice both the concerns and aspirations of the<br />
workers within the tourism industry. Ms Creed is a published author, writing particularly<br />
in the areas of industrial relations and social welfare and has served on the WATC Board<br />
previously from June 1992 to January 1994. Ms Creed brings a wealth of experience<br />
to the current Board.<br />
Ross Hughes<br />
Mr Hughes has been a member of the LandCorp Board since 1997 and Chairman since<br />
1998. He was Chairman of the Rottnest Island Authority for over seven years until <strong>2001</strong><br />
and was a Senator of Murdoch University for nine years. Mr Hughes is an Associate<br />
of the <strong>Australia</strong>n Property Institute, a licensed valuer and property consultant with in<br />
excess of thirty years experience in the <strong>Western</strong> <strong>Australia</strong>n property industry.<br />
Ian Mitchell<br />
Mr Mitchell is the Group General Manager <strong>Australia</strong> Sales for Qantas Airways. He is<br />
responsible for the sales, marketing and distribution strategies for Qantas in <strong>Australia</strong><br />
and Papua New Guinea. Mr Mitchell was previously the Managing Director of the<br />
Northern Territory <strong>Tourism</strong> Commission<br />
Sonja Mitchell<br />
Ms Mitchell is the Chief Executive Officer and partner in the Kununurra based aviation<br />
company – Slingair. Ms Mitchell began her association with Slingair 10 years ago<br />
and has held a variety of roles as pilot, Operations Manager, Product Development<br />
Manager and Marketing Manager. Ms Mitchell is a current member of the marketing<br />
sub-committee of the Kimberley <strong>Tourism</strong> Association (KTA) and is Vice President of<br />
the executive committee of KTA.<br />
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Corporate Support, Structure and Governance<br />
Clear Planning and Direction continued<br />
Michael Monaghan<br />
Michael Monaghan is a third generation hotelier with over 35 years experience in the<br />
hospitality industry. He was the National President of the <strong>Australia</strong> Hotels Association<br />
from 1996 to 1998 and was awarded national life membership in 2000 for services<br />
to the hospitality industry. He has been the State President of the WA Branch of the<br />
<strong>Australia</strong>n Hotels Association since 1992 and was awarded life membership in 1997.<br />
As the licensee of the Subiaco Hotel, Mr Monahan employs over 100 people and has<br />
extensive understanding of the needs of the tourism and hospitality industries.<br />
WATC Board Meetings and Attendance<br />
Eligible<br />
to Attend<br />
Attended<br />
Alan Mulgrew 5 4<br />
Laurie O’Meara 5 5<br />
Helen Creed 5 4<br />
Janet Holmes à Court 5 4<br />
Ross Hughes 11 8<br />
Ian Mitchell 11 7<br />
Sonja Mitchell 2 2<br />
Michael Monaghan 2 2<br />
Outgoing Board Members<br />
Kevin Carton 2 1<br />
Annette Knight 6 5<br />
Ron Buckey 9 9<br />
Ruth Harrison 6 6<br />
Joanne Tait 6 5<br />
Rod Warren 9 9<br />
In <strong>2001</strong>-<strong>2002</strong> there were 13 meetings held, comprising 11 regular and two special<br />
meetings. <strong>The</strong> Board does not meet in January.<br />
Declaration of Interests<br />
No declarations of interests were made in relation to senior officers.<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
Advisory Councils and Committees to Commissioners<br />
FINANCE<br />
COMMITTEE<br />
AUDIT AND RISK<br />
MANAGEMENT<br />
COMMITTEE<br />
TOURISM<br />
INDUSTRY<br />
DEVELOPMENT<br />
ADVISORY COUNCIL<br />
NATURE BASED<br />
TOURISM<br />
ADVISORY COUNCIL<br />
Committee Structure<br />
A number of committees that address specific aspects of the WATC’s activities and<br />
operations support the Board of WATC in its deliberative and decision-making role.<br />
Executive Management Team<br />
BOARD OF<br />
COMMISSIONERS<br />
RALLY AUSTRALIA<br />
BOARD<br />
EVENTSCORP<br />
ADVISORY COUNCIL<br />
METROPOLITAN<br />
MARKETING<br />
ADVISORY COUNCIL<br />
REGIONAL<br />
MARKETING<br />
ADVISORY COUNCIL<br />
MARKETING<br />
ADVISORY<br />
COUNCIL<br />
<strong>The</strong> Chief Executive Officer and four Executive Directors are responsible for the dayto-day<br />
operations of the WATC, and form the Executive Management Team (EMT).<br />
<strong>The</strong> EMT met fortnightly to address strategic and operational matters and to approve<br />
the administrative policies of the WATC. A number of sub-committees report to the EMT<br />
on specific aspects of operations and projects directed by it.<br />
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Corporate Support, Structure and Governance<br />
Appropriate and Timely Information<br />
Product and Service Development<br />
<strong>The</strong> WATC continued research to identify trends to assist in the development of products<br />
and services to meet the needs of emerging markets.<br />
Customer Satisfaction Survey<br />
<strong>The</strong> WA <strong>Tourism</strong> Commission undertakes an annual survey of customers to measure<br />
the perception of how the Commission has performed in meeting their needs.<br />
Corporate Communications<br />
Appropriate and Timely Information<br />
Ministerial <strong>Report</strong>ing<br />
<strong>The</strong> Commission conformed to the reporting requirements of statutory authorities stated<br />
in the Financial Administrative and Audit Act 1985 and in Treasurer’s Instructions. <strong>Annual</strong><br />
<strong>Report</strong>s were provided to the Minister and the Office of the Auditor General for audit<br />
within the required timeframe. <strong>The</strong> Commission responded promptly to 777 Ministerial<br />
Requests and 43 Parliamentary Questions, and provided 625 Briefing Notes, Speeches<br />
and Draft Media Releases relevant to operational objectives, investment or financing<br />
activities in <strong>2001</strong>-<strong>2002</strong>.<br />
Client Interaction – Customer Focus<br />
Hamersley Range, Karijini National Park, Pilbara<br />
Clients and stakeholders are identified in all planning activities undertaken by the WATC<br />
and communication channels are continually reviewed and improved. <strong>The</strong> WATC actively<br />
sought beneficial partnerships and alliances and consulted with industry to determine<br />
customer needs and to provide appropriate direction and support.<br />
<strong>The</strong> Commission strove to maintain high standards of promotion, information and<br />
support so that the customer encountered a positive and consistent experience. <strong>The</strong><br />
WATC’s Code of Conduct highlights our commitment to accelerating the development<br />
of WA’s tourism industry.<br />
<strong>The</strong> WATC has commenced the development of a Corporate Communications Strategy.<br />
Its aims include:<br />
> investigation of improved mechanisms for communicating WATC’s role and<br />
achievements;<br />
> creating alliances with key stakeholders and partnering arrangements;<br />
> effective corporate management of communication;<br />
> building public awareness of the value of tourism; and<br />
> ensuring the tourism industry and the wider community are aware of the key<br />
directions and activities of the Commission.<br />
Waste Paper Recycling<br />
<strong>The</strong> WATC has a paper recycling program in place.<br />
On-line Services<br />
<strong>The</strong> WATC’s consumer website, www.westernaustralia.net, is linked to the OnlineWA<br />
website. During the course of <strong>2001</strong>-<strong>2002</strong>, the website gained an ‘e-booking’ facility<br />
and a Personalised Information Register facility. <strong>The</strong>se features facilitate the gathering<br />
of customer information that is vital to the WATC’s entry into customised relationship<br />
marketing in the future.<br />
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Corporate Support, Structure and Governance<br />
Appropriate and Timely Information continued<br />
WATC will continue to maintain and develop partnering arrangements with other key<br />
stakeholders, including Government Departments, Local Government and private<br />
industry to ensure cost-effective development of on-line tourist services for <strong>Western</strong><br />
<strong>Australia</strong>.<br />
Evaluation of Programs<br />
Under the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission Act 1983, the WA <strong>Tourism</strong><br />
Commission has:<br />
> Managed its resources in accordance with the Resource Agreement entered into<br />
with the Minister for <strong>Tourism</strong>;<br />
> Prepared a <strong>2001</strong>-<strong>2002</strong> Budget for the approval of the Minister and Cabinet;<br />
> Conducted customer satisfaction surveys to ensure the quality of our programs<br />
meets stakeholder needs; and<br />
> Conducted review of organisational structure to ensure deliver of quality services<br />
to our customers, industry and government.<br />
Outcomes of the WATC Disability Services Plan<br />
Outcome 1: Existing services are adapted to ensure they meet the<br />
needs of people with disabilities<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission undertakes disability service planning<br />
as part of the Commission’s responsibilities under the <strong>Western</strong> <strong>Australia</strong>n Disability<br />
Services Act 1993. <strong>The</strong> objective of this planning process is to ensure that people with<br />
disabilities, their families and carers can, wherever possible, access services provided<br />
and/or promoted by the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission.<br />
As part of the WA Visitor Centre refurbishment in <strong>2001</strong>-<strong>2002</strong>, the WATC commissioned a<br />
Disabled Access Audit by the Independent Living Centre of WA (Inc.) and implemented<br />
a number of the resulting recommendations during the course of the year.<br />
Outcome 2: Access to buildings and facilities is improved<br />
Although the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission does not have any statutory<br />
control over private sector tourism operators, regular and ongoing discussions with the<br />
operators and the Disability Services Commission have ensured the needs of tourists<br />
with disabilities are continually assessed and responded to wherever possible.<br />
Advice is given to developers to ensure construction and fittings of facilities are to<br />
ACROD and building code standards.<br />
Outcome 3: Information about services is provided in formats which<br />
meet the communication requirements of people with disabilities<br />
A disability access survey of tourism operators is used to improve the information<br />
available to people with a disability and their families whenever planning holidays<br />
and/or travel.<br />
Outcome 4: Advice and services are delivered by staff who are<br />
aware of and understand the needs of people with disabilities<br />
<strong>The</strong> WA Visitor Centre provides advice and assistance on a wide range of tourist<br />
attractions and accommodation to assist those people with disabilities.<br />
A WA initiative to provide extensive information highlighting facilities for disabled<br />
tourists/visitors is available on the WA holiday destination website. This initiative has<br />
now been replicated by three other states.<br />
Outcome 5: Opportunities are provided for people with disabilities<br />
to participate in public consultations, grievance mechanisms and<br />
decision-making processes<br />
<strong>The</strong> WATC is committed to working in consultation with industry and the community in<br />
order to actively engage customers in decision-making processes where possible. In<br />
<strong>2002</strong>-2003 the Commission will develop its own Disability Services Plan with specific<br />
strategies that focus on providing opportunities for those people with disabilities to<br />
participate in various consultative mechanisms.<br />
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Corporate Support, Structure and Governance<br />
Appropriate and Timely Information continued<br />
Freedom of Information (FOI)<br />
<strong>The</strong> WA <strong>Tourism</strong> Commission complies with the Freedom of Information Act 1992<br />
requirements.<br />
<strong>The</strong> Commission’s Information Statement details the Commission’s functions, categories<br />
of documents held by the Commission and arrangements for public access to these<br />
documents including any associated fees. An FOI application may be made to obtain<br />
records about the WA <strong>Tourism</strong> Commission’s business. <strong>The</strong> Commission has a<br />
nominated FOI Coordinator in the Records Management Branch to assist in lodging<br />
applications.<br />
Cultural Diversity and Language Services Outcomes<br />
<strong>The</strong> WA <strong>Tourism</strong> Commission has a high proportion of customers who are from<br />
overseas or who have English as a second language. We encourage and benefit also<br />
from the multicultural mix of our staff, many of whom have a non-English speaking<br />
background.<br />
Nil Freedom of Information requests were received and processed in <strong>2001</strong>-<strong>2002</strong>.<br />
General customer enquiries were received via letter, email or telephone and were<br />
responded to according to the Commission’s Code of Conduct.<br />
<strong>The</strong> following information relates to Freedom of Information Applications received during<br />
the year ended 30 June <strong>2001</strong>.<br />
Number<br />
New Valid Applications Received 1<br />
Non Personal Information 1<br />
Personal Information 0<br />
Outcome – Access in Full 1<br />
Outcome – Edited Access 0<br />
Applications on hand at 30/6/01 and yet to be finalised 0<br />
Applications withdrawn by Applicant 1<br />
Number of Applications 0<br />
Internal Review 0<br />
External Review (by FOI Commissioner) 0<br />
Fees and Charges Received: $30<br />
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Corporate Support, Structure and Governance<br />
Sound Resource Management<br />
field trips, attended seminars and undertaken industry visits that have exposed them<br />
to the very latest practices in a range of areas that will make a positive contribution to<br />
the operations of the WATC.<br />
One particular outcome from the review of the WATC’s functions and activities during<br />
the year has been the creation of a part-time training officer role within the WATC to<br />
support employee learning and development programs in areas such as regulatory<br />
requirements, current job skill/knowledge requirements, career development and also<br />
to assist with broader organisation change initiatives.<br />
Work experience opportunities and structured graduate/undergraduate student<br />
placements are also part of the WATC’s development program and are designed for<br />
individuals considering a career in the broader tourism industry. During the year the<br />
WATC implemented an on-line advertising approach to these placement opportunities<br />
in preparation for the <strong>2002</strong> Christmas vacation and the 2003 calendar year.<br />
W A<br />
Sound Resource Management<br />
Assets and Liabilities<br />
<strong>The</strong> Commission is committed to effective and efficient management and custodianship<br />
of government assets and desirable items/equipment in accordance with endorsed<br />
management policies. This includes management of asset registration, disposal/transfer<br />
and stocktakes.<br />
Human Resouces<br />
We recognise the value, strength and potential of our staff. Human Resources aimed to<br />
maintain best practice in the recruitment, management and development of our staff.<br />
Employee Learning and Development<br />
In addition to formalised ‘off-the-job’ training, a number of ‘on-the-job’ development<br />
opportunities were provided to employees through the common practice of internally<br />
advertising positions that are temporarily vacant and available for acting/relieving. <strong>The</strong><br />
duration of these opportunities may vary from a few weeks up to 6 months.<br />
Chairman’s scholarships totalling $20,000, were awarded to fourteen employees to<br />
assist individuals with a recognised course of study at University or TAFE. Studies<br />
undertaken have included, e-marketing, commerce and ecotourism.<br />
Each year scholarships are offered to current employees to ensure the <strong>Western</strong><br />
<strong>Australia</strong>n <strong>Tourism</strong> Commission provides employees with the skills and expertise<br />
needed to drive our industry into the future. Past recipients have undertaken courses,<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
Roebuck Bay, Broome<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
40<br />
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Industrial Framework<br />
<strong>The</strong> WATC’s Enterprise Bargaining Agreement of 1999 was replaced by the Government<br />
Officers Salaries, Allowances and Conditions General Agreement of <strong>2002</strong>. This<br />
agreement restores parity of pay and conditions between employees in the WATC and<br />
like employees within the broader public sector.<br />
Employee Profile<br />
Employee profile indicators for <strong>2001</strong>-<strong>2002</strong> are as follows:<br />
Classification<br />
Level<br />
FullTime<br />
Equivalents<br />
Number of<br />
Employees<br />
Male<br />
(%)<br />
Female<br />
(%)<br />
Class 1 & above 2 2 50 50<br />
Level 9 2 2 100 0<br />
Level 8 3 3 67 33<br />
Level 7 8 8 75 25<br />
Level 6 17.8 18 72 28<br />
Level 5 22 22 36 64<br />
Level 4 21.4 22 18 82<br />
Level 3 13 13 23 77<br />
Level 2/4 0.5 1 0 100<br />
Level 2 36.1 38 11 89<br />
Level 1 9.3 11 18 82<br />
Overseas 12 12 17 83<br />
TOTAL 147.1 152<br />
Notes:<br />
Does not include casual employees.<br />
Employees as at 30 June <strong>2002</strong>
Corporate Support, Structure and Governance<br />
Sound Resource Management continued<br />
W A<br />
Equal Opportunity and Valuing Diversity<br />
As part of ongoing promotion and improvement of equal employment opportunity (EEO),<br />
the WATC conducts regular equal opportunity awareness training of management and<br />
employees. This focus of this training varies between issues such as workplace<br />
behaviours, employment practices and services delivery practices. During the year<br />
second and third tier management were provided with training in relation to workplace<br />
behaviours and the regulatory framework that deals with the management of work<br />
environments.<br />
Safe working environment<br />
<strong>The</strong> WATC continued to promote a safety and health work environment with such<br />
activities as an internal audit of the WATC’s occupational safety processes and structures<br />
and also the provision of free flu immunisation. Of particular significance during the<br />
year was the upgrading of security at the WATC’s head office location (which is shared<br />
with the local US Consulate) in response to the events of September 11, <strong>2001</strong>.<br />
Occupational safety and health<br />
indicators for <strong>2001</strong>-<strong>2002</strong><br />
Number of lost time injuries/<br />
diseases<br />
Duration rate (days) 0<br />
Number of workers’<br />
compensation claims<br />
Leave liability<br />
Leave liability<br />
indicators for <strong>2001</strong>-<strong>2002</strong><br />
Average annual leave weeks<br />
per FTE<br />
Average long service leave<br />
weeks per FTE<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
3.7<br />
2.1<br />
Note:<br />
Leave liability is the amount of annual or long service leave<br />
owing to an employee if that employee were to resign.<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
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0<br />
1<br />
Public Sector Standards<br />
In accordance with section 31(1) of the Public Sector Management Act 1994, the WATC<br />
is required to comment on the extent to which public sector standards, codes of ethics<br />
and any relevant code of conduct have been complied with.<br />
<strong>The</strong> WATC has continued to refine its human resource policies and practices to ensure<br />
ongoing compliance with the Public Sector Standards. <strong>The</strong>se policies are accessible<br />
to employees through the WATC’s intranet.<br />
<strong>The</strong> WATC Code of Conduct was adopted in 1998 to compliment the Public Sector Code<br />
of Ethics. <strong>The</strong> Code of Conduct is distributed to all employees and is also incorporated<br />
as part of the WATC’s policy framework.<br />
<strong>The</strong> number of applications<br />
for breach of standard and<br />
corresponding outcomes for<br />
2000-<strong>2001</strong><br />
Number lodged 0<br />
Number of material breaches<br />
found<br />
0<br />
Alan Mulgrew<br />
Richard Muirhead<br />
CHAIRMAN<br />
CHIEF EXECUTIVE OFFICER<br />
30 August <strong>2002</strong> 30 August <strong>2002</strong><br />
Finance<br />
Accrual accounting practices ensure that administration occurs in a timely and accurate<br />
manner. <strong>The</strong> WA <strong>Tourism</strong> Commission complies with the Financial Administration and<br />
Audit Act 1985 in managing its financial transactions. Purchasing instruments such<br />
as credit cards and purchase orders are monitored and controlled through an internal<br />
cost centre and delegation/authority structure.<br />
Ministerial Directives<br />
<strong>The</strong>re were no ministerial directives during <strong>2001</strong>-<strong>2002</strong>.
Corporate Support, Structure and Governance<br />
Adequate Controls<br />
Adequate Controls<br />
Nelson's Hotel, Bridgetown<br />
Risk Management<br />
WATC’s strategic approach to risk management has been designed to ensure full<br />
compliance with the Treasurer’s Instruction 109 and has been deployed through decisionmaking<br />
at all levels. <strong>The</strong> agreed policy and protocols have been reviewed and updated<br />
to reflect changes in WATC’s operating environment.<br />
Corporate Governance is supported through a formal internal process that provides:<br />
> independent assurance of WATC’s risk management control;<br />
> an independent annual assessment of risk as a basis for developing and<br />
implementing the internal audit plan; and<br />
> reporting to the Board, Chief Executive Officer and Audit and Risk Management<br />
Committee on internal audit process and outcomes.<br />
Subsequent Events<br />
No significant events had occurred after 30 June <strong>2002</strong> to the date of signing this report<br />
to adversely affect the operations of the WATC.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
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Compliance Statement<br />
<strong>The</strong> Honorable Clive Brown MLA<br />
Minister for <strong>Tourism</strong><br />
Dear Minister,<br />
In accordance with Section 66 of the Financial Administration and Audit Act 1985,<br />
we hereby submit for your information and presentation to Parliament, the <strong>Annual</strong><br />
<strong>Report</strong> for the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission for the year ended 30 June<br />
<strong>2002</strong>. <strong>The</strong> report has been prepared in accordance with the provisions of the Financial<br />
Administration and Audit Act 1985.<br />
Legislation and Administration<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission Act 1983 and the <strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission Amendment Act 1994 govern the administration of the <strong>Western</strong><br />
<strong>Australia</strong>n <strong>Tourism</strong> Commission.<br />
<strong>The</strong> <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission administers the <strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission Act 1983 and the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
Amendment Act 1994.<br />
Legislation impacting on WATC Activities<br />
In the performance of its functions, the WATC complies with the following relevant<br />
written laws:<br />
• Anti Corruption Act 1988<br />
• Anti Discrimination Act 1938<br />
• Archives Act 1983, Commonwealth<br />
• Censorship Act 1996<br />
• Commercial Tenancy (Retail Shops) 1989<br />
• Copyright Act 1993<br />
• Electoral Act 1907<br />
• Equal Opportunity Act 1984<br />
• Fair Trading Act 1987<br />
• Financial Administration and Audit Act 1985<br />
• Freedom of Information Act 1992<br />
• Government Employees Superannuation Act 1987<br />
• Income Tax Assessment Act 1936<br />
• Industrial Relations Act 1979<br />
• Industrial Relations Act 1990, Commonwealth<br />
• Library Board of <strong>Western</strong> <strong>Australia</strong> Act 1951-1983<br />
• Minimum Conditions of Employment Act 1993<br />
• Occupational Health, Safety and Welfare Act 1984 Public Sector Management Act<br />
1994<br />
• Official Corruption Commission Act 1988<br />
• Public Sector Management Act 1994<br />
• Salaries and Allowances Act 1975<br />
• State Supply Commission Act 1991<br />
• Treasury Regulations and Treasurer’s Instructions<br />
• <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission Act 1983<br />
• <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission Amendment Act 1994<br />
• Workers Compensation and Rehabilitations Act 1981<br />
• Workplace Agreements Act 1993<br />
In the financial administration of the WATC, we have complied with the requirements of<br />
the Financial Administration and Audit Act 1985 and every other relevant written law.<br />
We have exercised controls that provide reasonable assurance that the receipt and<br />
expenditure of moneys and the acquisition and disposal of public property, and incurring<br />
of liabilities, have been in accordance with legislative provisions.<br />
Procedures designed to ensure compliance and appropriate internal assessments have<br />
been put in place to satisfy us that this statement is correct.<br />
Alan Mulgrew<br />
Richard Muirhead<br />
CHAIRMAN<br />
CHIEF EXECUTIVE OFFICER<br />
30 August <strong>2002</strong> 30 August <strong>2002</strong><br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
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43<br />
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Appendices<br />
Publications<br />
Publications<br />
<strong>The</strong> WA <strong>Tourism</strong> Commission produced a range of publications to promote <strong>Western</strong><br />
<strong>Australia</strong> as a premier nature-based tourism destination and to satisfy compliance,<br />
stakeholder and potential customer requirements. Copies of publications are available<br />
by contacting the WA <strong>Tourism</strong> Commission or by visiting www.tourism.wa.gov.au<br />
Publication<br />
<strong>Annual</strong> <strong>Report</strong> 1999-2000<br />
Price<br />
Free<br />
Publication<br />
Winter Breaks<br />
Research Brief on <strong>Tourism</strong> (2 issues per year)<br />
<strong>Tourism</strong> Research Review WA State (Domestic: visitor numbers,<br />
expenditure, travel characteristics)<br />
<strong>Tourism</strong> Research Review – WA State (international, visitor numbers,<br />
expenditure, travel characteristics of 8 key international markets)<br />
Price<br />
Free<br />
Free<br />
$22.00<br />
$22.00<br />
Cooperative Marketing Guide 2000-<strong>2001</strong><br />
Free<br />
Touristics (annual subscription – 2 issues per year) $22.00<br />
Corporate Calendar 2000-<strong>2001</strong><br />
Draft Corporate Plan 2000-<strong>2001</strong><br />
Partnership 21 2000-2005<br />
Free<br />
Free<br />
Free<br />
<strong>Tourism</strong> Research Reviews – WA regions (11 regions) (visitor numbers,<br />
expenditure, travel characteristics)<br />
<strong>Tourism</strong> Research Reviews – Towns/Shires (14 localities) (commercial<br />
Accommodation statistics, transport statistics, et al)<br />
$11.00 each<br />
$11.00 each<br />
Press Kit<br />
Brand WA Guidelines<br />
<strong>Tourism</strong> Association Marketing Guide<br />
<strong>Tourism</strong> Operator Marketing Guide<br />
In Touch Newsletter<br />
Free<br />
Free<br />
Free<br />
Free<br />
Free<br />
Guidelines for <strong>Tourism</strong> Signs — a set of guidelines for sign-posting<br />
tourist attractions and visitor-service facilities<br />
Free<br />
Designing <strong>Tourism</strong> Naturally $35.00<br />
<strong>Tourism</strong> Development Register $55.00<br />
<strong>Tourism</strong> Infrastructure and Product Development Plans <strong>2001</strong>-2005 – for<br />
each of the 10 tourism regions of WA.<br />
Free<br />
Best on Earth in Perth <strong>2001</strong> Calendar<br />
Events Update (Aug 2000, Nov 2000, March <strong>2001</strong>, June <strong>2001</strong>)<br />
EventsCorp Corporate Brochure<br />
Film Permit Contacts<br />
Free<br />
Free<br />
Free<br />
Free<br />
<strong>Tourism</strong> Advantage: Education Resource Kit<br />
Workshop Manual (workshop separate)<br />
Free information on tourism services and attractions can be seen<br />
at the <strong>Western</strong> <strong>Australia</strong> web site www.westernaustralia.net; at<br />
www.tourism.wa.gov.au or through its links.<br />
$30.00 $42.90<br />
Free<br />
Perth and Fremantle Guide<br />
Free<br />
Wildflower Holiday Guide<br />
Free<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
44<br />
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Appendices<br />
Research and Development Summary<br />
Advertising and Sponsorship<br />
Research and Development Summary<br />
Research and Development Activity<br />
Knowledge Sharing Strategy<br />
Partnership 21 Industry Plan<br />
ATDW (<strong>Australia</strong>n <strong>Tourism</strong> Data Warehouse)<br />
Regional On-line Services Strategy<br />
PowerTour E-Booking Enhancement<br />
Personalised Information Service<br />
International Contact Management System<br />
See <strong>Australia</strong> Limited – Cooperative National Marketing Campaign<br />
National Sales Network<br />
National Trade Strategy<br />
Virtual Call Centre<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Network<br />
Network WA<br />
International Market Development Strategy<br />
Interactive Television Development Strategy<br />
<strong>Tourism</strong> Research Briefs<br />
<strong>Tourism</strong> Satellite Account<br />
<strong>Tourism</strong> Development Register<br />
Food and Wine <strong>Tourism</strong> Strategy<br />
Nature Based <strong>Tourism</strong> Strategy<br />
Touch Product Development<br />
Status<br />
Ongoing<br />
Completed<br />
Ongoing<br />
Ongoing<br />
Completed<br />
Completed<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Completed<br />
Completed<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Ongoing<br />
Advertising And Sponsorship<br />
As required by Section 175ZE of the Electoral Act 1907, the WATC reports that it has<br />
incurred expenditure during the financial year ended 30 June <strong>2002</strong> on the following:<br />
$<br />
Advertising Agencies 1,921,002<br />
Market Research<br />
Organisations<br />
426,637<br />
Polling Organisations 0<br />
Direct Mail Organisations 2,694<br />
Media Advertising<br />
Organisations<br />
3,535,073<br />
Total 5,885,406<br />
Advertising Agencies $<br />
303 Advertising 1,538,560<br />
Jaz Design & Multimedia 121,093<br />
Compac Marketing 106,007<br />
JMG Marketing 67,236<br />
Marketforce Productions 45,470<br />
BAC Productions 18,152<br />
<strong>The</strong> Image Fitz 18,070<br />
PR Agencies<br />
6,414<br />
Total 1,921,002<br />
Market Research<br />
Organisations<br />
Bureau Of <strong>Tourism</strong><br />
Research<br />
$<br />
238,098<br />
Donovan Research 95,520<br />
Patterson Market Research 50,941<br />
Market Equity P/L 42,078<br />
Total 426,637<br />
Polling Organisations $<br />
- 0<br />
Total 0<br />
Direct Mail<br />
$<br />
Organisations<br />
Brochure Direct Ltd 2,633<br />
Impact Publications 61<br />
Total 2,694<br />
Media Advertising<br />
Organisations<br />
$<br />
Media Decisions 2,852,705<br />
<strong>The</strong> Ten Group Limited 564,000<br />
MPH Magazines (S) P/L 76,634<br />
Countrywide Publications 18,388<br />
BNC Television Service P/L 11,770<br />
Marketforce P/L 6,706<br />
Advance Press P/L 2,310<br />
Business News 831<br />
Rural Press Regional<br />
Media (WA)<br />
710<br />
Richmond News 459<br />
Eaton-Australind<br />
Newspaper<br />
261<br />
BRW Media 160<br />
Niche Media P/L 139<br />
Total 3,535,073<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
45<br />
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Appendices<br />
How to Contact the Commission<br />
W A<br />
Perth<br />
HEAD OFFICE<br />
16 St Georges Terrace<br />
PERTH, <strong>Western</strong> <strong>Australia</strong> 6000<br />
GPO Box X2261<br />
PERTH, <strong>Western</strong> <strong>Australia</strong> 6847<br />
Tel: 08 9220 1700<br />
Fax: 08 9220 1702<br />
Web site: www.westernaustralia.net<br />
Email: welcome@tourism.wa.gov.au<br />
WESTERN AUSTRALIAN VISITOR<br />
CENTRE<br />
(Formerly known as PERTH VISITOR<br />
CENTRE)<br />
Forrest Place<br />
Ground Floor<br />
Albert Facey House<br />
Cnr Wellington Street<br />
PERTH, <strong>Western</strong> <strong>Australia</strong>, 6000<br />
Tel: 1300 361 351<br />
Fax: 08 9481 0190<br />
Email: travel@tourism.wa.gov.au<br />
Regional<br />
KIMBERLEY<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
Suite 1, Cnr Dampier Street and Napier Terrace,<br />
BROOME 6725<br />
Tel: 08 9193 6122, Fax: 08 9193 6142<br />
Email: kimberley@tourism.wa.gov.au<br />
PILBARA<br />
State Government Office Building<br />
Cnr Searipple and Welcome Roads<br />
PO Box 294<br />
KARRATHA WA 6714<br />
Tel: 08 9185 0188, Fax: 08 9185 0189<br />
Email: pilbara@tourism.wa.gov.au<br />
GASCOYNE<br />
15 Stuart Street<br />
CARNARVON 6701<br />
Tel: 08 9941 2406, Fax: 08 9941 4713<br />
Email: gascoyne@tourism.wa.gov.au<br />
MID WEST<br />
SGIO Building<br />
Cnr Chapman Road and Cathedral Avenue<br />
GERALDTON 6530<br />
Tel: 08 9921 0716, Fax: 08 9964 5244<br />
Email: midwest@tourism.wa.gov.au<br />
GOLDFIELDS/ESPERANCE<br />
377 Hannan Street<br />
KALGOORLIE 6430<br />
Tel: 08 9021 0821, Fax: 08 9091 7340<br />
Email: goldfields@tourism.wa.gov.au<br />
HEARTLANDS<br />
PO Box 331<br />
NORTHAM 6401<br />
Tel: 08 9622 5627, Fax: 08 9622 7098<br />
Email: heartlands@tourism.wa.gov.au<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
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PEEL<br />
Unit 11, 55 Mandurah Terrace<br />
MANDURAH 6210<br />
Tel: 08 9535 6167, Fax: 08 9535 4678<br />
Email: peel@tourism.wa.gov.au<br />
SOUTH WEST<br />
10th Floor, Bunbury Tower, 61 Victoria Street<br />
BUNBURY 6230<br />
Tel: 08 9791 9000, Fax: 08 9791 7077<br />
Email: southwest@tourism.wa.gov.au<br />
GREAT SOUTHERN<br />
Pyrmont House, 110 Serpentine Road<br />
ALBANY 6330<br />
Tel: 08 9841 8599, Fax: 08 9841 3319<br />
Email: southern@tourism.wa.gov.au<br />
Interstate<br />
VICTORIA<br />
Level 11, 50 Franklin Street<br />
MELBOURNE Victoria 3000<br />
Tel: 03 9663 2766, Fax: 03 9663 2120<br />
Email: lkeam@tourism.wa.gov.au<br />
NEW SOUTH WALES<br />
116 Cathedral Street<br />
WOOLLOOMOOLOO NSW 2011<br />
Tel: 02 9358 2499, Fax: 02 9358 5633<br />
Email: watcnsw@tourism.wa.gov.au<br />
QUEENSLAND<br />
6th Floor, 87 Wickham Terrace<br />
BRISBANE QLD 4000<br />
Tel: 07 3832 8849, Fax: 07 3832 8223<br />
Email: fborserini@tourism.wa.gov.au<br />
International<br />
JAPAN<br />
<strong>Australia</strong>n Business Centre<br />
New Otani Garden Court Building, Level 28F,<br />
4-1 Kioi-cho, Chiyoda-ku TOKYO 102-0094<br />
Tel: 0011 81 3 5214 0797<br />
Fax: 0015 81 3 5214 0799<br />
Email: watcjapan@mte.biglobe.ne.jp<br />
SINGAPORE<br />
05-13 <strong>The</strong> Adelphi, 1 Coleman Street,<br />
SINGAPORE 179803<br />
Tel: 0011 65 6338 7772<br />
Fax: 0015 65 6339 7108<br />
Email: watcsin@pacific.net.sg<br />
MALAYSIA<br />
4th Floor, UBN Tower, Letterbox 51, 10 Jalan P<br />
Ramlee,<br />
50250 KUALA LUMPUR<br />
Tel: 0011 60 3 2072 5996<br />
Fax: 0015 60 3 2078 0380<br />
Email: watckul@attglobal.net<br />
UK/EUROPE<br />
5 th Floor, <strong>Australia</strong> Centre, Strand,<br />
LONDON WC2B 4LG<br />
Tel: 0011 44 20 7395 0580<br />
Fax: 0015 44 20 7379 9826<br />
Email: westozuk@tourism.wa.gov.au<br />
GERMANY<br />
Frankiskanerstrasse 15, (2nd Floor)<br />
81669 Muenchen<br />
GERMANY<br />
Tel: 0011 49 89 4411 9581<br />
Fax: 0015 49 89 4411 9582<br />
Email: di@tourism.wa.gov.au
Key<br />
Performance<br />
Indicators<br />
and<br />
Financial<br />
Statements<br />
Contents<br />
Page<br />
100 Year Forest, Pemberton<br />
iv. Key Performance Indicators and<br />
Financial Statements<br />
- Certification of Key Performance<br />
Indicators and Audit Opinion 48<br />
- Key Performance Indicators at<br />
Outcome Level 49<br />
- Outcome 1 - Promotion of <strong>Western</strong><br />
<strong>Australia</strong> as a Tourist Destination 50<br />
Effectiveness Indicators 50<br />
Efficiency Indicators 59<br />
- Outcome 2 - An Enhanced <strong>Tourism</strong><br />
Industry, Infrastructure and<br />
Product Base 64<br />
Effectiveness Indicators 64<br />
Efficiency Indicators 67<br />
- Statement of Financial Performance 68<br />
- Statement of Financial Position 69<br />
- Statement of Cash Flows 70<br />
- Notes to and Forming Part of the<br />
Accounts 71<br />
- Audit Opinion 87<br />
- Certification of Financial Statements 88<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
Wester <strong>Western</strong> n <strong>Australia</strong>n <strong>Australia</strong>n <strong>Tourism</strong> <strong>Tourism</strong> Commission Commission <strong>Annual</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
47
Certification of Key Performance Indicators and Audit Opinion<br />
AUDITOR GENERAL<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
Financial statements for the year ended June 30, <strong>2002</strong><br />
To the Parliament of <strong>Western</strong> <strong>Australia</strong><br />
WESTERN AUSTRALIAN TOURISM COMMISSION<br />
FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, <strong>2002</strong><br />
Matters Relating to the Electronic Presentation of the Audited Financial Statements<br />
This audit opinion relates to the financial statements of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Commission for the year ended June 30, <strong>2002</strong> included on the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Commissions web site. <strong>The</strong> Commission is responsible for the integrity of the <strong>Western</strong><br />
<strong>Australia</strong>n <strong>Tourism</strong> Commissions web site. I have not been engaged to report on the<br />
integrity of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commissions web site. <strong>The</strong> audit opinion<br />
refers only to the statements named below. It does not provide an opinion on any other<br />
information which may have been hyperlinked to or from these statements. If users of this<br />
opinion are concerned with the inherent risks arising from electronic data communications,<br />
they are advised to refer to the hard copy of the audited financial statements to confirm the<br />
information included in the audited financial statements presented on this web site.<br />
Scope<br />
I have audited the accounts and financial statements of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Commission for the year ended June 30, <strong>2002</strong> under the provisions of the Financial<br />
Administration and Audit Act 1985.<br />
<strong>The</strong> Commission is responsible for keeping proper accounts and maintaining adequate<br />
systems of internal control, preparing and presenting the financial statements, and<br />
complying with the Act and other relevant written law. <strong>The</strong> primary responsibility for the<br />
detection, investigation and prevention of irregularities rests with the Commission.<br />
My audit was performed in accordance with section 79 of the Act to form an opinion based<br />
on a reasonable level of assurance. <strong>The</strong> audit procedures included examining, on a test<br />
basis, the controls exercised by the Commission to ensure financial regularity in accordance<br />
with legislative provisions, evidence to provide reasonable assurance that the amounts and<br />
other disclosures in the financial statements are free of material misstatement and the<br />
evaluation of accounting policies and significant accounting estimates. <strong>The</strong>se procedures<br />
have been undertaken to form an opinion as to whether, in all material respects, the<br />
financial statements are presented fairly in accordance with Accounting Standards and other<br />
mandatory professional reporting requirements in <strong>Australia</strong> and the Treasurers Instructions<br />
so as to present a view which is consistent with my understanding of the Commissions<br />
financial position, its financial performance and its cash flows.<br />
<strong>The</strong> audit opinion expressed below has been formed on the above basis.<br />
4 th Floor Dumas House 2 Havelock Street West Perth 6005 <strong>Western</strong> <strong>Australia</strong> Tel: 08 9222 7500 Fax: 08 9322 5664<br />
Audit Opinion<br />
In my opinion,<br />
(i) the controls exercised by the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission provide<br />
reasonable assurance that the receipt, expenditure and investment of moneys and<br />
the acquisition and disposal of property and the incurring of liabilities have been<br />
in accordance with legislative provisions; and<br />
(ii) the Statement of Financial Performance, Statement of Financial Position and<br />
Statement of Cash Flows and the Notes to and forming part of the financial<br />
statements are based on proper accounts and present fairly in accordance with<br />
applicable Accounting Standards and other mandatory professional reporting<br />
requirements in <strong>Australia</strong> and the Treasurers Instructions, the financial position<br />
of the Commission at June 30, <strong>2002</strong> and its financial performance and its cash<br />
flows for the year then ended.<br />
D D R PEARSON<br />
AUDITOR GENERAL<br />
October 4, <strong>2002</strong><br />
We hereby certify that the performance indicators:<br />
1) are based on proper records; and<br />
2) fairly represent the performance of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission for<br />
the year ended 30 June <strong>2002</strong>.<br />
A Mulgrew<br />
L O'Meara<br />
CHAIRMAN<br />
DEPUTY CHAIRMAN<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
30 August <strong>2002</strong> 30 August <strong>2002</strong><br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
48<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong><br />
4 th Floor Dumas House 2 Havelock Street West Perth 6005 <strong>Western</strong> <strong>Australia</strong> Tel: 08 9222 7500 Fax: 08 9322 5664
Key Performance Indicators<br />
Key Performance Indicators at Outcome Level<br />
Introduction<br />
Mindarie Keys Resort, Perth<br />
<strong>The</strong>se indicators provide a comprehensive overview of the degree to which the two<br />
outcomes for WATC have been achieved. <strong>The</strong>se are:<br />
(a) promotion of <strong>Western</strong> <strong>Australia</strong> as an attractive tourist destination; and<br />
(b) an enhanced tourist industry, infrastructure and product base.<br />
<strong>The</strong> WATC also seeks to enhance the image of <strong>Western</strong> <strong>Australia</strong>, nationally and<br />
internationally and increase overall industry performance as an important contribution<br />
to the State’s economy and development.<br />
<strong>The</strong> WATC does not control the very highest level results, such as level of visitation, visitor<br />
expenditure and investment as these are dependent on a range of factors and influences,<br />
many outside the Commission’s direct control or influence. However, the WATC plays an<br />
important role in contributing to the overall success of the industry, through its outputs<br />
and their relationship to higher-level government desired outcomes.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
49<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as an Attractive Tourist Destination<br />
Effectiveness Indicators<br />
(1) <strong>The</strong> extent to which campaigns and promotional activities<br />
improved the level of ‘consumer awareness’ of <strong>Western</strong><br />
<strong>Australia</strong> as an attractive tourist destination.<br />
Consumer awareness of <strong>Western</strong> <strong>Australia</strong> as a tourist destination provides a measure<br />
of the extent to which the State tourism potential is recognised by consumers.<br />
National Market<br />
Source<br />
1998, 1999, 2000 and <strong>2001</strong> Roy Morgan Research Holiday Tracking Survey (HTS). <strong>The</strong><br />
HTS survey was conducted as part of a national omnibus survey on a weekly basis.<br />
Definition<br />
<strong>The</strong> survey focuses on measuring advertising awareness of holiday destinations in<br />
<strong>Australia</strong>; where people would prefer to go for short and long trips; and intention of<br />
taking such trips. Initial subscription by WATC was to the advertising awareness and<br />
the preference components of the HTS.<br />
Due to a change in methodology direct comparisons can only be made for the years<br />
2000-<strong>2001</strong> and <strong>2001</strong>-<strong>2002</strong>. In January 2000 Roy Morgan Research changed the HTS<br />
methodology to increase the sample size by 10,000 respondents and increased the<br />
frequency of surveys from monthly to continuous weekly interviewing and introduced<br />
a self-completion diary. More importantly, an 'overseas' response option was added to<br />
the Long Trip Preference questions, which had a detrimental effect on the preferences<br />
of eastern states consumers to holiday in WA, compared with overseas destinations.<br />
a) Perceived knowledge of <strong>Western</strong> <strong>Australia</strong> as a holiday<br />
destination.<br />
Perceived knowledge of <strong>Western</strong> <strong>Australia</strong> as a holiday destination<br />
by people in other states (interstate)<br />
01-02 00-01 99-00 98-99<br />
Category<br />
(%) (%) (%) (%)<br />
A lot 4.8 4.8 4.6 4.2<br />
Quite a bit 11.6 10.7 8.5 10.4<br />
Some 22.0 23.0 20.9 25.1<br />
A little 41.5 39.0 38.5 50.1<br />
None 19.3 20.2 24.5 8.8<br />
Can’t Say 0.9 2.3 3.1 1.4<br />
Note:<br />
I. Derivation: Population size of 14.18 million; number of respondents is 1,014; estimated error rate +/- 1.4% at 95%<br />
confidence level.<br />
Comment<br />
In comparing the results in <strong>2001</strong>-<strong>2002</strong> with the previous year the number of interstate<br />
consumers with no knowledge about <strong>Western</strong> <strong>Australia</strong> as a holiday destination<br />
decreased by 0.9%. <strong>The</strong>re has also been an increase of 0.9% of consumers who<br />
perceived they had 'quite a bit' of knowledge.<br />
This element is only measured for the interstate market as previous research has<br />
demonstrated that almost all residents of <strong>Western</strong> <strong>Australia</strong> know what their own State<br />
offers as a holiday destination.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
50<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
b) Long Trip Preference (Propensity to consider)<br />
<strong>The</strong> following table represents propensity by people in the interstate and intrastate<br />
markets to consider a holiday in <strong>Western</strong> <strong>Australia</strong> in the next two years, for three<br />
nights or more.<br />
Propensity to consider a holiday destination in <strong>Western</strong> <strong>Australia</strong><br />
by market type<br />
01-02 00-01 99-00 98-99 97–98<br />
Market<br />
(%) (%) (%) (%) (%)<br />
Interstate 15.8 16.5 28.4 23.9 21.8<br />
Intrastate 31.2 26.0 40.8 38.1 35.1<br />
Notes:<br />
I. Definition: <strong>The</strong> above table represents propensity by people in both the interstate and intrastate markets to consider a<br />
holiday in any <strong>Australia</strong>n State in the next two years, for three nights or more.<br />
II.<br />
Derivation: Interstate - Population size of 14.17 million; sample size of 50,518; number of respondents is 23,449 giving a<br />
response rate of 46%; estimated error rate +/- 0.3% at 95% confidence level.<br />
Intrastate - Population size of 1.55 million; sample size of 5,520; number of respondents is 2,230 giving a response rate of<br />
40%; estimated error rate +/- 0.9% at 95% confidence level.<br />
Comment<br />
In the national market, the indicator measures the destination where people would<br />
prefer to go to on holidays in <strong>Australia</strong>. For the purposes of this report, it is equivalent<br />
to the ‘Propensity to Consider’ measure reported for the international markets, but as<br />
it is based on a different research methodology, the measures cannot be compared.<br />
<strong>The</strong> result for 1997-1998 represents the last quarter of that year because the WATC<br />
only commenced subscription to the results in that quarter. Results from other States<br />
demonstrate little variation between quarters.<br />
Propensity to consider a holiday destination in <strong>Australia</strong> by State<br />
(National Market)<br />
01-02 00-01 99-00 98-99 97-98<br />
State<br />
(%) (%) (%) (%) (%)<br />
WA 17.3 17.2 29.5 28.2 26.3<br />
Qld 39.6 36.9 55.0 57.6 57.8<br />
NSW 27.3 25.7 26.0 26.4 25.6<br />
Vic 23.1 21.5 22.9 23.3 25.1<br />
NT 14.0 14.0 25.1 25.9 24.8<br />
Tas 14.4 13.3 23.2 23.1 21.1<br />
SA 12.2 11.3 16.5 16.3 17.0<br />
ACT 2.9 2.4 3.3 3.2 3.0<br />
Overseas 38.9 41.7 - - -<br />
Note:<br />
i. Derivation: Population size of 15.72 million; sample size of 56,038; number of respondents is 25,679 giving a response<br />
rate of 45.8%; estimated error rate +/- 0.3% at 95% confidence level.<br />
Comment<br />
<strong>The</strong> introduction of an 'overseas' response option to surveys conducted by Roy Morgan<br />
Research since January <strong>2001</strong> have produced lower 'Preference' figures for many States<br />
and Territories. <strong>The</strong>se results are not directly comparable with those from previous years<br />
as the methodology has changed. A positive outcome is that the change in methodology<br />
provides a more accurate picture of consumer holiday preferences in terms of domestic<br />
and international destinations. WA remains the fourth most popular <strong>Australia</strong>n destination<br />
for stays of three nights or more.<br />
A decrease of 0.7% in the propensity of people interstate who consider <strong>Western</strong> <strong>Australia</strong><br />
as a long trip preference with an increase in intrastate consumers considering <strong>Western</strong><br />
<strong>Australia</strong> as a holiday destination reflect the effects of the demise of Ansett and a<br />
decrease in airline capacity during the year. <strong>The</strong> effects of Ansett and the September<br />
11, <strong>2001</strong> terrorist attacks and campaigns such as the $100 million Holiday Catalogue<br />
stimulated intrastate consumers to consider <strong>Western</strong> <strong>Australia</strong> as a holiday destination<br />
resulting in an increase of 5.2%.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
51<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
c) Level of unprompted advertising awareness of <strong>Western</strong><br />
<strong>Australia</strong> as a holiday destination<br />
Level of unprompted advertising awareness of <strong>Western</strong> <strong>Australia</strong><br />
as a holiday destination - interstate<br />
01-02 00-01 99-00 98-99 97-98<br />
All Other States<br />
(%) (%) (%) (%) (%)<br />
Average 9.4 9.6 8.7 7.0 7.1<br />
Peak 16.8 12.0 12.4 12.6 11.7<br />
Note:<br />
i. Derivation: Population size of 14.19 million; number of respondents is 12,270; estimated error rate +/- 0.4% at 95%<br />
confidence level.<br />
Comment<br />
Although the measure of advertising awareness is taken weekly via the Roy Morgan<br />
Research Holiday Tracking Survey, the most suitable measures of performance are:<br />
> the average level of awareness for the whole year; and<br />
> the highest or peak level of awareness for any month.<br />
<strong>The</strong>re was little variation to the average level of advertising awareness for <strong>Western</strong><br />
<strong>Australia</strong> as a holiday destination from the prior year and it is difficult to compare with<br />
results prior to 2000-<strong>2001</strong> given the change in HTS methodology. However significant<br />
increases in peak advertising awareness can be directly attributed to the increased<br />
level of activity in Brand WA campaigns and the $100 Million Holiday Sale campaign<br />
conducted post September 11, <strong>2001</strong>.<br />
Level of unprompted advertising awareness of <strong>Western</strong> <strong>Australia</strong><br />
as a holiday destination - Intrastate<br />
01-02<br />
(%)<br />
00-01<br />
(%)<br />
99-00<br />
(%)<br />
98-99<br />
(%)<br />
97-98<br />
(%)<br />
Average 47.0 37.3 40.4 33.1 26.1<br />
Peak 69.8 50.6 50.4 59.5 37.6<br />
Note:<br />
i. Derivation: Population size of 1.54 million; number of respondents is 1,333; estimated error rate +/- 1.2% at 95%<br />
confidence level.<br />
Comment<br />
<strong>The</strong> WATC conducted a number of television and print campaigns during <strong>2001</strong>-<strong>2002</strong><br />
which resulted in more advertising activity to consumers than in previous years.<br />
Awareness levels peaked at 69.8% in March <strong>2002</strong> following a Brand WA campaign.<br />
Another significant peak during the year of 64.2% occurred during December <strong>2001</strong><br />
following the $100 Million Campaign.<br />
Given people may not be able to recall awareness driven specifically by generic<br />
destination advertising alone, fluctuations throughout the year could also reflect other<br />
awareness-building activities, including advertising undertaken by other operators, such<br />
as coach companies and airlines.<br />
Fluctuations in advertising awareness throughout the year also reflect other awareness<br />
building activities including advertising undertaken by tourism operators, such as coach<br />
companies and airlines. <strong>The</strong> WATC provided financial support for cooperative tactical<br />
advertising to ensure the destination received appropriate exposure in the operators’<br />
product advertisements.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
52<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
International Market<br />
Source<br />
NFO Donovan Research Survey for core international markets of Singapore, the United<br />
Kingdom and Malaysia.<br />
Definition<br />
<strong>The</strong> survey methodology focuses on measuring the consumers level of knowledge of<br />
WA as a holiday destination and propensity to consider WA as a holiday destination in<br />
a target market population that is defined by age and socio-economic status.<br />
a) Perceived knowledge of <strong>Western</strong> <strong>Australia</strong> as a holiday<br />
destination<br />
Singapore<br />
Perceived knowledge of <strong>Western</strong> <strong>Australia</strong> as a holiday<br />
destination - Singapore<br />
01-02 00-01 99-00 98-99 97-98<br />
Rating<br />
(%) (%) (%) (%) (%)<br />
A lot 4 4 8 3 11<br />
Quite a bit 31 20 23 15 38<br />
Something 38 33 27 35 32<br />
Very little 25 41 40 42 19<br />
Nothing 2 1 2 5 1<br />
Note:<br />
i. Derivation: Population size of 4 million; sample size of 400, 95% confidence level, +/-5% estimated error rate.<br />
Comment<br />
<strong>The</strong> lack of a positive or negative shift in the measurement for the knowledge category<br />
'a lot' for Singapore appears on face value to be disappointing however a significant<br />
jump has been achieved in the category 'Quite a Bit' providing an overall positive shift<br />
in awareness in Singapore from 24% in <strong>2001</strong> to 35% in <strong>2002</strong>. Supporting this is the<br />
drop in consumers claiming to know 'very little' which has fallen from 41% in <strong>2001</strong> to<br />
25% in <strong>2002</strong>.<br />
United Kingdom<br />
Perceived knowledge of <strong>Western</strong> <strong>Australia</strong> as a holiday destination<br />
- United Kingdom<br />
01-02 00-01 99-00 98-99 97-98<br />
Rating<br />
(%) (%) (%) (%) (%)<br />
A lot 6 5 5 3 3<br />
Quite a bit 9 15 11 11 7<br />
Something 31 37 20 23 24<br />
Very little 33 17 41 37 40<br />
Nothing 22 26 22 26 26<br />
Note:<br />
i. Derivation: Population size of 15 million in greater London region; sample size of 401, 95% Confidence level, +/- 5%<br />
estimated error rate.<br />
Comment<br />
Despite the highly competitive marketing environment in the UK consumer awareness<br />
of WA for the top measure 'A Lot' increased from 5% to 6%. Compounding this is the<br />
combined measure for the categories 'A Lot' and 'Quite a Bit' which shows an overall fall<br />
in awareness from 20% to 15%. This can be attributed to a number of factors including<br />
a highly competitive marketing environment (GBP5million campaign by South Africa)<br />
and a loss in consumer interest and desire to travel long haul following September 11,<br />
<strong>2001</strong>.<br />
Malaysia<br />
Perceived knowledge of<br />
<strong>Western</strong> <strong>Australia</strong> as a holiday<br />
destination – Malaysia<br />
01-02 00-01<br />
Rating<br />
(%) (%)<br />
A lot 7 5<br />
Quite a bit 18 20<br />
Something 42 33<br />
Very little 30 33<br />
Nothing 3 9<br />
Note:<br />
i. Derivation: Population size of 24 million; sample size<br />
of 392, 95% confidence level, +/- 5% estimated error<br />
rate. Due to rounding, total percentages may not equal<br />
100% for the above tables.<br />
Comment<br />
<strong>The</strong>re has been a positive shift in<br />
awareness from the category 'Quite a<br />
Bit' to 'A Lot' suggesting the Brand WA<br />
campaign initiatives have been successful<br />
in positioning the State as a desirable<br />
holiday destination.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
53<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
United Kingdom<br />
Propensity to consider <strong>Western</strong> <strong>Australia</strong> as a holiday destination<br />
- United Kingdom<br />
01-02 00-01 99-00 98-99 97-98<br />
Rating<br />
(%) (%) (%) (%) (%)<br />
Definitely consider 27 34 34 28 27<br />
Might consider 39 38 34 39 39<br />
Not consider 24 22 27 19 19<br />
Don’t know 10 6 4 15 15<br />
Note:<br />
i. Derivation: Population size of 15million in greater London region; sample size of 401, 95% Confidence level, +/- 5%<br />
estimated error rate.<br />
b) Propensity to consider <strong>Western</strong> <strong>Australia</strong> as a holiday<br />
destination<br />
Singapore<br />
Propensity to consider <strong>Western</strong> <strong>Australia</strong> as a holiday destination<br />
- Singapore<br />
01-02 00-01 99-00 98-99 97-98<br />
Rating<br />
(%) (%) (%) (%) (%)<br />
Definitely consider 15 13 10 15 25<br />
Might consider 51 35 52 47 46<br />
Not consider 33 44 36 38 21<br />
Don’t know 1 8 2 1 9<br />
Note:<br />
Sunset over Chinaman's Beach, Kalbarri<br />
i. Derivation: Population size of 4 million; sample size of 400, 95% confidence level, +/- 5% estimated error rate.<br />
Malaysia<br />
Propensity to consider <strong>Western</strong><br />
<strong>Australia</strong> as a holiday destination<br />
- Malaysia<br />
Rating<br />
Definitely<br />
consider<br />
01-02<br />
(%)<br />
00-01<br />
(%)<br />
16 12<br />
Might consider 48 35<br />
Not consider 32 41<br />
Don’t Know 5 13<br />
Comment<br />
Note:<br />
i. Derivation: Population size of 24 million; sample size<br />
of 392. 95% confidence level, +/- 5% estimated error<br />
rate.<br />
Due to rounding, total percentages may not equal<br />
100% for the above tables.<br />
Survey data was collected in Malaysia in 2000-<strong>2001</strong> for<br />
the first time.<br />
Converting awareness to desire is a critical component of the WATC’s marketing efforts.<br />
<strong>The</strong>re was a positive shift in consideration for the top measure 'Definitely Consider'<br />
in the Singapore and Malaysia markets following the Brand Campaigns. In the UK<br />
our marketing efforts were seriously affected due to the high volume of competitive<br />
marketing following the September 11, <strong>2001</strong> crisis and an overall drop in consumer<br />
confidence in long-haul holiday travel. As a result the WATC’s Brand WA campaign has<br />
been impacted and a downturn in consideration for the top level ‘definitely consider'<br />
reported for the market.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
54<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
W A<br />
(2) <strong>The</strong> extent to which activities of the <strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission improved the level of ‘trade<br />
awareness’ of <strong>Western</strong> <strong>Australia</strong> as an attractive tourist<br />
destination.<br />
As tourist destination choices and purchases can be influenced by travel agents,<br />
the WATC actively promotes <strong>Western</strong> <strong>Australia</strong> to these industry or trade operators.<br />
<strong>The</strong>refore, trade awareness of <strong>Western</strong> <strong>Australia</strong> as a tourist destination and the<br />
propensity to recommend <strong>Western</strong> <strong>Australia</strong> as a destination to the customers also<br />
indicates the extent to which the State is being successfully promoted.<br />
Source<br />
<strong>Annual</strong> Survey conducted by Patterson Market Research to measure the level of<br />
influence the WATC has on the trade regarding its awareness of <strong>Western</strong> <strong>Australia</strong>’s<br />
tourism products and its propensity to recommend WA’s tourism products to its<br />
customers. <strong>The</strong> trade refers to retail and wholesale travel agents.<br />
Definition<br />
<strong>The</strong> national market includes only interstate trade who are serviced by the WATC’s<br />
interstate sales team. Only agents who were targeted during the year are included in<br />
the survey population.<br />
a) Knowledge levels of WA product<br />
National Market<br />
Knowledge levels of WA product amongst retail travel agents for the<br />
national market<br />
01-02 00-01 99-00 98-99 97-98 96-97<br />
Rating<br />
(%) (%) (%) (%) (%) (%)<br />
Note:<br />
10 2 4 1 1 3 3<br />
9 8 16 16 16 12 10<br />
8 38 33 37 43 40 38<br />
7 28 20 26 22 26 16<br />
6 14 17 13 8 8 10<br />
1-5 10 9 6 10 12 23<br />
i. Derivation: Sample size 100; 53% response rate; 95% confidence level, +/- 7.0% estimated error rate. Rating out of 10<br />
(10 denotes “excellent awareness of WA”; 1-5 denotes “very poor knowledge of WA”). Due to rounding, total percentages<br />
may not equal 100%.<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
55<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong><br />
Comment<br />
<strong>The</strong>re was a significant increase in the number of travel agents who indicated that they<br />
now had good knowledge of WA product as a result of training provided by interstate<br />
marketing staff and familiarisation programs.<br />
International Market<br />
Knowledge levels of WA product amongst retail and wholesale travel<br />
agents for the international core markets<br />
01-02 00-01 99-00 98-99 97-98 96-97<br />
Rating<br />
(%) (%) %) (%) (%) (%)<br />
10 20 30 27 29 20 19<br />
Note:<br />
9 27 23 17 32 19 25<br />
8 25 26 34 25 31 21<br />
7 20 12 14 8 14 12<br />
6 5 2 8 3 9 14<br />
1-5 3 7 0 3 7 9<br />
i. Derivation: Sample size 44; 69% response rate; 95% confidence level; +/- 8% estimated error rate.<br />
Rating out of 10 (10 denotes “Excellent awareness of WA”; 1-5 denotes “very poor knowledge of WA”). Due to rounding<br />
total percentages may not equal 100%.<br />
Comment<br />
<strong>The</strong>re was a decline in ‘excellent awareness of WA’ in international trade knowledge of<br />
<strong>Western</strong> <strong>Australia</strong> over the past 12 months. <strong>The</strong> research findings to date only provide<br />
actual numbers without any anecdotal evidence which may identify reasons for this<br />
decline. Further qualitative research may be required to determine the cause of this<br />
decline although it is clearly evident international tourism marketing has been adversely<br />
affected by the events of September 11, <strong>2001</strong> causing many international operators to<br />
focus on regional or cross border travel as opposed to long haul travel.
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
b) WATC contribution to the current knowledge levels<br />
National Market<br />
WATC contribution to current knowledge levels amongst retail travel<br />
agents about WA product<br />
01-02 00-01 99-00 98-99 97-98 96-97<br />
Rating<br />
(%) (%) (%) (%) (%) (%)<br />
Very significant 31 31 31 31 31 20<br />
Significant 40 47 56 45 55 54<br />
Insignificant 15 6 8 6 9 13<br />
Not at all 12 9 2 7 5 11<br />
Don’t know 2 8 2 11 NA NA<br />
Note:<br />
i. Derivation: Sample size 100; 53% response rate; 95% confidence level, +/- 7% estimated error rate. Due to rounding,<br />
total percentages may not equal 100% for the above table.<br />
Comment<br />
Seventy one percent of travel agents surveyed reported that WATC interstate staff<br />
had at least a 'significant' impact on their knowledge about WA product compared to<br />
78% in the previous year. An increase in responses for the 'Not at all' and 'insignificant'<br />
categories highlights the need to place more emphasis on providing effective training<br />
to travel agents.<br />
International Market<br />
WATC contribution to current knowledge levels amongst retail and<br />
wholesale travel agents about WA product<br />
01-02 00-01 99-00 98-99 97-98 96-97<br />
Rating<br />
(%) (%) (%) (%) (%) (%)<br />
Very significant 30 30 29 38 32 13<br />
Significant 64 61 56 46 51 68<br />
Insignificant 7 5 14 14 12 14<br />
Not at all 0 4 2 2 3 4<br />
Note:<br />
i. Derivation: Sample size 44; 69% response rate; 95% confidence level, +/- 8% estimated error rate. Due to rounding<br />
total percentages may not equal 100%.<br />
Comment<br />
Overall, 94% of respondents indicated that the WATC had a 'significant' or 'very<br />
significant' contribution to their current level of awareness of WA tourism products, a<br />
3% increase on the result last year. Just 7% of the respondents indicated that WATC had<br />
an 'insignificant' or 'not at all' significant effect on their current level of awareness.<br />
c) Likelihood of recommending <strong>Western</strong> <strong>Australia</strong> for a holiday<br />
to customers now as compared to 12 months ago<br />
National Market<br />
Likelihood of recommending WA for a holiday to customers now as<br />
compared to 12 months ago<br />
01-02 00-01 99-00 98-99 97-98 96-97<br />
Rating<br />
(%) (%) (%) (%) (%) (%)<br />
More likely<br />
54 61 76 56 75 49<br />
now<br />
About the<br />
same<br />
44 38 22 44 25 49<br />
Less likely now 2 2 2 0 0 0<br />
Don’t know 0 0 0 0 0 2<br />
Note:<br />
i. Derivation: Sample size 100; 53% response rate; 95% confidence level, +/- 7% estimated error rate. Due to rounding,<br />
total percentages may not equal 100% for the above table.<br />
Comment<br />
Interstate training strategies continue to show positive results with 98% of travel agents<br />
surveyed responding that they were either the same or more likely to recommend WA<br />
for a holiday to their customers. Major reasons for this strong result included; they now<br />
had a greater knowledge of WA products (67%); have always promoted WA/people go<br />
there anyway (41%); now had increased confidence in selling the destination (37%);<br />
have visited and can now recommend/organised tours helpful (28%).<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
56<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
International Market<br />
Likelihood of recommending WA for a holiday to customers now as<br />
compared to 12 months ago<br />
01-02 00-01 99-00 98-99 97-98 96-97<br />
Rating<br />
(%) (%) (%) (%) (%) (%)<br />
More likely<br />
55 60 78 62 62 63<br />
now<br />
About the<br />
same<br />
39 38 22 37 31 35<br />
Less likely now 7 0 0 0 7 1<br />
Don’t know 0 2 0 3 0 0<br />
Note:<br />
i. Derivation: Sample size 44; 69% response rate; 95% confidence level, +/- 8% estimated error rate. Due to rounding,<br />
total percentages may not equal 100%.<br />
Comment<br />
94% of respondents were either 'More likely now' to recommend WA as a holiday<br />
destination or remained ‘About the same' level of intention. <strong>2001</strong>-<strong>2002</strong> results reflect<br />
the highly volatile nature of international destination marketing over the past year.<br />
(3) <strong>The</strong> extent to which visitor expenditure is generated from<br />
incremental tourism initiatives, i.e. <strong>Western</strong> <strong>Australia</strong><br />
convention and incentive travel, Tourist Centre, events and<br />
tactical campaigns.<br />
A number of WATC initiatives are specifically directed at generating additional tourism<br />
activity and visitor expenditure, facilitating social and economic benefit for <strong>Western</strong><br />
<strong>Australia</strong>. This is known in the industry as 'incremental tourism activity' because the<br />
additional expenditure in the State by tourists would not have occurred if these extra<br />
initiatives had not been implemented.<br />
Visitor expenditure generated from incremental tourism ($ million)<br />
WA Visitor<br />
Centre<br />
Hosted Events<br />
Tactical<br />
Campaigns<br />
Conventions<br />
& Incentives<br />
Hosted<br />
Total Year<br />
<strong>2001</strong>-<strong>2002</strong> 23.7 42.0 11.6 44.8 122.1<br />
2000-<strong>2001</strong> 24.1 33.1 13.6 44.9 115.7<br />
1999-2000 29.3 65.7 15.9 - 110.9<br />
1998-1999 22.8 43.3 11.3 - 77.4<br />
1997-1998 19.9 60.6 6.0 - 86.5<br />
1996-1997 16.2 20.3 1.0 - 37.5<br />
Total 136.0 265.0 59.4 89.7 550.4<br />
Note:<br />
i. Definition: <strong>The</strong> results for the WA Visitor Centre have been calculated using the most recent visitor expenditure rates<br />
available (at time of publishing) from the Domestic <strong>Tourism</strong> Expenditure Research Program.<br />
Comment<br />
<strong>The</strong> significant reduction in visitor expenditure generated by the WA Visitor Centre reflects<br />
the impact of the WA <strong>Tourism</strong> Network on its business and a general downturn in tourism<br />
as a result of reduced airline capacity into the State following the collapse of Ansett.<br />
A successful year of events, including the Johnnie Walker Classic which was held in<br />
WA for the first time, helped contribute to a substantial increase in visitor expenditure.<br />
While many Tactical Campaigns were undertaken to assist industry through the crisis<br />
of September 11 and 14, the time lag between the completion of campaigns and the<br />
receipt of results from partner operators has meant that not all visitor expenditure can<br />
be included in the above table. Conventions and Incentives pro-active response to the<br />
loss of business as a result of the events previously mentioned saw improved visitor<br />
expenditure figures for <strong>2001</strong>-<strong>2002</strong>.<br />
<strong>The</strong>refore, the level of incremental tourism activity, as measured by visitor expenditure,<br />
provides another indicator of the success in promoting <strong>Western</strong> <strong>Australia</strong> as a tourist<br />
destination.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
57<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
(4) <strong>The</strong> extent to which bids were successful for meetings,<br />
incentive travel, conventions and events<br />
Estimated economic impact of successful bids ($ million)<br />
Events<br />
Conventions<br />
(International)<br />
Conventions<br />
(National)<br />
Meetings and<br />
Incentives<br />
<strong>2001</strong>-<strong>2002</strong> 44.4 46.8 46.1 51.4<br />
2000-<strong>2001</strong> 31.9 53.2 62.1 46.5<br />
1999-2000 23.0 42.3 54.2 63.0<br />
1998-1999 55.7 49.5 34.1 47.3<br />
1997-1998 47.1 41.0 37.1 64.0<br />
1996-1997 16.9 51.2 38.4 89.6<br />
Notes:<br />
i. Definition: <strong>The</strong> following table provides details of WATC effectiveness in winning bids during the year in terms of their<br />
expected economic impact for the State.<br />
ii.<br />
Derivation: To more accurately reflect economic impact rather than direct visitor expenditure, a multiplier of 2.17 has<br />
been applied to Conventions, Meetings and Incentives. Although the bid was successful during the year, the actual event,<br />
convention or incentive travel may be held in the same or subsequent years.<br />
Comment<br />
As there is often a delay between bidding for events, conventions and incentive travel,<br />
and the staging of the activity (up to five years), it is important that success is measured<br />
annually to ensure activities are planned for the future.<br />
<strong>The</strong> function of bidding for conventions, meetings and incentive travel groups is contract<br />
managed by WATC under a performance management system with the supplier, Perth<br />
Convention Bureau.<br />
It is noted that the estimated Economic impact of successful event bids is brought to<br />
account in the year when the contract is signed. It should be noted that the WATC also<br />
bids for events that do not generate significant economic benefit to the State, but which<br />
generate significant national and international media coverage.<br />
<strong>The</strong> high number of bids won for events reflects the focus in the past year by EventsCorp<br />
on its core business of attracting events to <strong>Western</strong> <strong>Australia</strong>. Many of these events<br />
had been under development for one to two years and were secured in the <strong>2001</strong>-<strong>2002</strong><br />
financial year.<br />
of global events on the convention market. However future bookings indicate that the<br />
increased infrastructure in the Perth market and the expansion by Perth Convention<br />
Bureau (PCB) into facilitating regional centres to successfully bid for conventions and<br />
strong destination marketing campaigns by PCB and industry partners are proving to<br />
be successful strategies.<br />
(5) Level of industry support and revenue generated<br />
Market<br />
Revenue generated through industry support<br />
01-02<br />
Support<br />
$<br />
00-01<br />
Support<br />
$<br />
99-00<br />
Support<br />
$<br />
98-99<br />
Support<br />
$<br />
97-98<br />
Support<br />
$<br />
96-97<br />
Support<br />
$<br />
National 1,169,426 508,669 727,017 766,927 532,899 181,983<br />
WA Visitor<br />
Centre<br />
777,277 800,157 886,345 789,876 778,245 860,966<br />
International 2,349,905 2,732,246 1,775,406 1,577,762 1,158,019 1,118,011<br />
Events 4,777,738 4,415,178 6,404,055 4,061,956 5,280,382 3,521,826<br />
Conventions &<br />
Incentive Travel<br />
792,586 550,030 520,969 426,802 418,705 199,467<br />
Total 9,866,932 9,006,280 10,313,792 7,623,323 8,168,250 5,882,253<br />
Note:<br />
i. Definition: <strong>The</strong> above table provides details of WATC’s effectiveness in terms of increasing the level of industry support<br />
for promotion of WA as a tourism destination and the dollar contribution provided by industry.<br />
Comment<br />
<strong>The</strong> amount of financial support provided by industry continues to be significant with<br />
just under $10 million contributed to WATC activities in <strong>2001</strong>-<strong>2002</strong> or $0.34 for every<br />
dollar invested by Government.<br />
<strong>The</strong> shift in revenue generated in the National and International markets is a direct<br />
reflection of the increased activity and resources directed towards intra and interstate<br />
marketing as a result of global events.<br />
<strong>The</strong> result is satisfactory given the financial climate that prevailed during the year.<br />
W A<br />
<strong>The</strong> <strong>2001</strong>-<strong>2002</strong> results for both international and national conventions shows a decrease<br />
in successful bids from the previous year. <strong>The</strong>se results were expected due to the impact<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
58<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
National Market<br />
<strong>The</strong> ratio provides a comparison between resources expended (as measured in hundreds<br />
of thousands of dollars) in the respective interstate and intrastate markets to the level<br />
of awareness achieved as measured by a consumer awareness index. <strong>The</strong> index uses<br />
the levels of consumer awareness measures as reported for the national markets at<br />
Effectiveness Indicator 1. <strong>The</strong> index is calculated differently for each market using the<br />
following formulae:<br />
Interstate: <strong>The</strong> sum of the percentages for Perceived Knowledge for 'some' and above,<br />
the annual average of Propensity to Consider (preference) and the annual average of<br />
Level of Advertising Awareness, divided by three.<br />
W A<br />
Efficiency Indicators<br />
(1) Ratio – Total cost of campaigns and activities relative to the<br />
level of ‘consumer awareness’ of <strong>Western</strong> <strong>Australia</strong> as an<br />
attractive tourist destination<br />
This efficiency indicator is a ratio comparing the level of resources expended (as<br />
measured in hundreds of thousands of dollars) in various markets to the level of<br />
awareness achieved as measured by a 'consumer awareness index'. <strong>The</strong> ratio is<br />
valuable as it allows comparison regarding the efficiency of marketing activities in<br />
selected markets to be reviewed longitudinally. Comparisons may also be made to<br />
other similar agencies using the same indicator for the same selected markets, should<br />
such data become available in the future.<br />
Although results for this indicator have been reported since 1995-1996 when the initial<br />
benchmark studies were conducted, some changes in either survey methodology or<br />
selected markets mean that comparisons over time have not always been able to be<br />
maintained.<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>The</strong> Gap, near Torndirrup National Park, Albany<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
59<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong><br />
Intrastate: <strong>The</strong> sum of the percentages for annual average Propensity to Consider<br />
(preference) and the annual average of Level of Advertising Awareness, divided by<br />
two.<br />
Ratio – Total cost of campaigns and activities relative to the level of<br />
national consumer awareness of <strong>Western</strong> <strong>Australia</strong> as an attractive<br />
tourist destination.<br />
Cost of Resources<br />
Consumer Index<br />
Ratio<br />
($100,000s)<br />
Year<br />
Interstate<br />
Market<br />
Intrastate<br />
Market<br />
Interstate<br />
Market<br />
Intrastate<br />
Market<br />
Interstate<br />
Market<br />
Intrastate<br />
Market<br />
<strong>2001</strong>-<strong>2002</strong> 55.37 14.67 21.2 39.1 1:0.38 1:2.66<br />
2000-<strong>2001</strong> 30.5 9.38 21.5 31.7 1:0.70 1:3.37<br />
1999-2000 26.16 8.91 23.7 40.6 1:0.91 1:4.56<br />
1998-1999 27.94 8.66 24.0 36.0 1:0.86 1:4.16<br />
Note:<br />
i. <strong>The</strong> Interstate Cost of Resources for the first time in 1999-2000 included a proportion of the expenditure for regional<br />
cooperative marketing initiatives that is provided to Regional <strong>Tourism</strong> Associations (RTA’s).<br />
Comment<br />
Additional campaigns were conducted in <strong>2001</strong>-<strong>2002</strong> in response to the Ansett and<br />
September 11 crises. <strong>The</strong>se additional campaigns had a significant positive effect<br />
in the intrastate market where the consumer index increased from 31.7 to 39.1 and<br />
consequently the ratio decreased due to increased levels of expenditure and activity.<br />
In the interstate market all states increased their marketing efforts in response to the<br />
crises once the propensity for travel domestically was identified. In this environment,<br />
<strong>Western</strong> <strong>Australia</strong> performed well to maintain its consumer index level at 21 considering<br />
the lack of availability of incentive fares in the market place.
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
International Market<br />
<strong>The</strong> efficiency ratio for the international markets is similar to that of the national, but<br />
as they utilise different survey methodologies the results are not directly comparable.<br />
However, as the survey methodology for the international markets has not changed<br />
from that used in the last four years, comparisons for these years are reported.<br />
<strong>The</strong> ratio provides a comparison between the resources expended (as measured in<br />
hundreds of thousands) on international marketing activities to the level of awareness<br />
achieved, as measured by a consumer index and reported by the core international<br />
markets targeted during the year. <strong>The</strong> level of awareness measures utilised are those<br />
reported for three international markets reported at Effectiveness Indicator 1. <strong>The</strong><br />
Consumer Index is calculated as follows using the individual market survey results:<br />
Consumer Index: <strong>The</strong> sum of the percentages for Perceived knowledge for 'something'<br />
and above, and Propensity to Consider the categories of 'might consider' and above,<br />
divided by two.<br />
As part of the Brand WA marketing strategy major campaigns were undertaken in the<br />
United Kingdom, Singapore and Malaysia. Due to the high cost of advertising in Japan<br />
the WATC did not run a dedicated Brand WA campaign in <strong>2001</strong>-<strong>2002</strong>. Instead WA<br />
participated in a cooperative tactical advertising campaign with the ATC and Qantas<br />
in Eastern Japan and Singapore Airlines in <strong>Western</strong> Japan which was not measured<br />
by the ATC.<br />
Ratio – Total cost of campaigns and activities relative to the level<br />
of international consumer awareness of <strong>Western</strong> <strong>Australia</strong> as an<br />
attractive tourist destination<br />
Singapore Market<br />
Cost of<br />
Year<br />
Resources Consumer Index Ratio<br />
($100,000s)<br />
<strong>2001</strong>-<strong>2002</strong> 18.73 69.5 1:3.71<br />
2000-<strong>2001</strong> 13.76 52.5 1:3.82<br />
1999-2000 8.94 60.0 1:6.71<br />
1998-1999 6.94 57.5 1:8.29<br />
1997-1998 9.05 76.0 1:8.40<br />
United Kingdom Market<br />
Cost of<br />
Year<br />
Resources<br />
($100,000s)<br />
Consumer Index<br />
Ratio<br />
<strong>2001</strong>-<strong>2002</strong> 25.31 56.0 1:2.21<br />
2000-<strong>2001</strong> 29.18 64.5 1:2.19<br />
1999-2000 23.23 52.5 1:2.26<br />
1998-1999 24.61 52.0 1:2.11<br />
1997-1998 24.88 50.0 1:2.01<br />
Malaysian Market<br />
Year<br />
Cost of<br />
Resources Consumer Index Ratio<br />
($100,000s)<br />
<strong>2001</strong>-<strong>2002</strong> 6.05 65.5 1:10.82<br />
2000-<strong>2001</strong> 2.6 52.5 1:20.22<br />
Comment<br />
<strong>The</strong> UK results for <strong>2001</strong>-<strong>2002</strong> indicate a reasonable outcome given the highly volatile<br />
nature of the tourism marketing climate in the United Kingdom since 11 September<br />
<strong>2001</strong>. While the awareness measurement for the category 'A Lot' remained strong,<br />
lower measurement levels have dragged the consumer index down. <strong>The</strong> WATC brand<br />
campaign was also adversely affected by strong competitor spend. South Africa, for<br />
example, spent GBP5 million over the past eight months to capture market share.<br />
<strong>The</strong> result for Singapore reflects a concerted effort to use partner funds to leverage<br />
media exposure for the WA brand campaign. <strong>The</strong> higher spend has achieved a higher<br />
than expected consumer index figure for <strong>2001</strong>-<strong>2002</strong>. <strong>The</strong> Malaysia result is an excellent<br />
outcome and builds on the benchmark figures established in 2000-<strong>2001</strong> for the level of<br />
efficiency of Malaysia brand campaigns.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
60<br />
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Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
W A<br />
(2) Ratio – Total cost of campaigns and activities relative to the<br />
level of ‘trade awareness’ of <strong>Western</strong> <strong>Australia</strong> as an attractive<br />
tourist destination<br />
This efficiency indicator is a ratio that compares the level of resources expended (as<br />
measured in hundreds of thousands) in various markets to the level of trade awareness<br />
achieved as measured by a 'Trade Awareness Index'.<br />
<strong>The</strong> value of the ratio is that it allows a comparison over time regarding the efficiency of<br />
marketing to trade operators, such as retail and wholesale travel agents, in the national<br />
and international markets respectively.<br />
Comparisons may also be made to other similar agencies using the same indicator for<br />
the same markets, should such data become available in the future.<br />
National Market<br />
<strong>The</strong> ratio provides a comparison between the resources expended (as measured in<br />
hundreds of thousands) in the national market (interstate), to the level of awareness<br />
achieved as measured by a consumer trade index. <strong>The</strong> index uses the levels of trade<br />
awareness measures as reported for the national markets at Effectiveness Indicator 2.<br />
<strong>The</strong> index is calculated using the following formula:<br />
Trade Awareness Index: <strong>The</strong> sum of the percentages for "Knowledge levels of WA<br />
product using the rating of ‘8’ and above", “WATC contribution to knowledge levels for<br />
‘significant’ and above” and “Likelihood of recommending WA for a holiday”, divided<br />
by three.<br />
National Trade Awareness Index<br />
Year<br />
Cost of<br />
Trade Awareness<br />
Resources<br />
Index<br />
($100,000s)<br />
Ratio<br />
<strong>2001</strong>-<strong>2002</strong> 8.06 57.67 1:7.16<br />
2000-<strong>2001</strong> 12.17 64.00 1:5.26<br />
1999-2000 11.68 72.33 1:6.19<br />
1998-1999 8.56 64.00 1:7.48<br />
1997-1998 11.36 72.00 1:6.34<br />
1996-1997 10.89 58.00 1:5.33<br />
Note:<br />
i. <strong>The</strong> Interstate Cost of Resources for the first time in 1999-2000 included a proportion of the expenditure for regional<br />
cooperative marketing initiatives that is provided to Regional <strong>Tourism</strong> Associations (RTAs).<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
61<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong><br />
Comment<br />
<strong>The</strong> Trade Awareness Index has decreased in <strong>2001</strong>-<strong>2002</strong> as a consequence of a<br />
reduction in resources allocated to this area. Resources were reallocated to focus on<br />
Brand awareness and partnering tactical campaigns.<br />
International Market<br />
<strong>The</strong> ratio provides a comparison between the resources expended (as measured in<br />
hundreds of thousands) in the respective international markets, to the level of awareness<br />
achieved, as measured by a consumer trade index. <strong>The</strong> index uses the levels of trade<br />
awareness measures as reported for the international markets at Effectiveness Indicator<br />
2. <strong>The</strong> index is calculated using the following formula:<br />
Trade Awareness Index: <strong>The</strong> sum of the percentages for “Knowledge levels of WA<br />
product using the rating of ‘8’ and above”, “WATC contribution to knowledge levels” for<br />
‘significant’ and above” and “Likelihood of recommending WA for a holiday”, divided<br />
by three.<br />
International Trade Awareness Index<br />
Year<br />
Cost of<br />
Trade Awareness<br />
Resources<br />
Index<br />
($100,000s)<br />
Ratio<br />
<strong>2001</strong>-<strong>2002</strong> 31.92 73.67 1:2.31<br />
2000-<strong>2001</strong> 27.91 76.67 1:2.75<br />
1999-2000 33.08 80.33 1:2.43<br />
1998-1999 21.67 71.00 1:3.28<br />
1997-1998 21.69 72.00 1:3.32<br />
1996-1997 19.99 70.00 1:3.50<br />
Note:<br />
i. <strong>The</strong> Interstate Cost of Resources for the first time in 1999-2000 included a proportion of the expenditure for regional<br />
cooperative marketing initiatives that is provided to Regional <strong>Tourism</strong> Associations (RTA’s).<br />
Comment<br />
<strong>The</strong> WATC has continued to focus trade marketing efforts on raising trade awareness<br />
of the State and its tourism product. <strong>The</strong> <strong>2001</strong>-<strong>2002</strong> outcome is slightly disappointing<br />
but not unexpected in light of the volatility of the global marketing environment since<br />
September 11, <strong>2001</strong> and the trade focus on short haul or regional travel rather than long<br />
haul. <strong>The</strong> Trade Awareness Index of 73.64 is considered to be comparatively strong for<br />
international trade marketing activity over the last 12 months.
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
(3) Ratio of cost of incremental tourism activities to visitor<br />
expenditure generated<br />
This indicator provides a ratio indicating the rate of return for each $1 of gross<br />
operating cost expended for the selected incremental business activities, as reported<br />
in Effectiveness Indicator 3.<br />
Ratio of $1 of WATC gross operating cost of incremental tourism<br />
activity to visitor expenditure generated<br />
Activity 01-02 00-01 99-00 98-99 97-98 96-97<br />
WA Visitor Centre 1:4.69 1:4.98 1:8.70 1:8.89 1:6.62 1:5.57<br />
Events hosted 1:3.83 1:4.49 1:5.15 1:4.27 - -<br />
Tactical campaigns 1:3.77 1:4.60 1:4.50 1:3.02 1:2.30 1:0.47<br />
Notes:<br />
i. <strong>The</strong> results for the WA Visitor Centre have been calculated using the most recent visitor expenditure rates available from<br />
the Domestic <strong>Tourism</strong> Expenditure Research Program.<br />
ii.<br />
iii.<br />
For events hosted, the measure is the ratio of the total economic impact on the State by hosting events divided by<br />
gross cost, spread over a period of three years. <strong>The</strong> three-year period has been adopted as it is considered that it takes<br />
approximately that time from securing an event to actually hosting it.<br />
Tactical campaigns comprise those implemented in national and international markets.<br />
Comment<br />
<strong>The</strong> events of September 11 (terrorist attack on the USA) and 14 (Ansett collapse) had<br />
a profound affect on visitor numbers to the State as consumer confidence in air travel<br />
nose-dived and airline seat capacity into and around WA effectively halved. Against this<br />
backdrop the Government provided an additional $5m for marketing activity to assist<br />
the industry to offset the severe downturn in business.<br />
(4) Ratio of WATC cost to value of successful bids<br />
This indicator is used to monitor the efficiency of activities relating to the research,<br />
preparation and submission of bids for events, conventions and incentive travel. <strong>The</strong><br />
indicator provides a ratio comparing $1 of WATC gross cost to the level of estimated<br />
economic impact from the events, and direct delegate expenditure for conventions and<br />
incentive travel to be hosted in the State.<br />
Ratio of $1 of WATC gross operating cost of bidding activities to<br />
the estimated economic impact from successful bids from events<br />
and the direct delegate expenditure from conventions and incentive<br />
travel groups<br />
Activity 01-02 00-01 99-00 98-99 97-98 96-97<br />
Events 1:40.55 1:42.46 1:21.00 1:58.22 1:60.66 1:30.68<br />
Conventions (National<br />
and International)<br />
Corporate Meetings<br />
and Incentive Travel<br />
Groups<br />
Note:<br />
1:53.64 1:65.56 1:53.04 1:44.85 1:36.51 1:48.28<br />
1:89.04 1:79.34 1:103.80 1:72.68 1:77.12 1:87.04<br />
i. In 1998-1999 financial year, the value of economic impact from corporate meetings was included for the first time with<br />
incentive travel instead of conventions. Corporate meetings have historically comprised a minor portion of the economic<br />
impact from conventions.<br />
Comment<br />
<strong>The</strong> events bid ratio has declined slightly and is indicative of a trend towards increased<br />
bidding costs as a result of increased national and international competition for events.<br />
<strong>The</strong> collapse of Ansett had a market affect on the number of National Conventions held<br />
in Perth during <strong>2001</strong>-<strong>2002</strong> and the resultant reduction in capacity and increased cost of<br />
air travel to the State continues to impact on WA’s ability to attract national conventions.<br />
<strong>The</strong> attack on the World Trade Centre in September also affected international convention<br />
business. By contrast, Corporate Meetings and Incentive Group Travel business wasn’t<br />
affected so dramatically. <strong>The</strong>re was also an increase in the number of corporate meetings<br />
held and more efficient programs were implemented that reduced the cost of procuring<br />
meetings and incentive travel groups.<br />
It should be noted that the ratio indicator for tactical campaigns is based on results<br />
provided by partners at the time this <strong>Annual</strong> <strong>Report</strong> was prepared and additional results<br />
are expected from campaigns just completed or that are still in progress. <strong>The</strong> events<br />
hosted ratio reflects the increasing cost of running existing events and of attracting new<br />
events, such as the Johnnie Walker Classic. Ongoing implementation of the WA <strong>Tourism</strong><br />
Network has reduced the number of bookings made by the <strong>Western</strong> <strong>Australia</strong>n Visitor<br />
Centre, and as a consequence, the amount of revenue raised.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
62<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 1 - Promotion of <strong>Western</strong> <strong>Australia</strong> as a Tourist Destination continued<br />
(5) Ratio of WATC cost to industry support and revenue<br />
generated<br />
In line with WATC partnership objectives for many of its activities, cooperative funding<br />
from non-State Government tourism industry participants is sought for a range of<br />
marketing and other relevant initiatives. Additionally, revenue is generated from some<br />
limited commercial and retail operations. By obtaining this type of funding, the WATC<br />
is able to supplement funding from the State Government to engage in additional<br />
promotional and marketing activities for the benefit of the State.<br />
<strong>The</strong> decrease reported in the international marketing segment reflects the downturn<br />
experienced as a result of global events. <strong>The</strong> subsequent increase in ratio in the<br />
national marketing segment reflects the shift in emphasis and increase in activity after<br />
September 11, <strong>2001</strong>.<br />
<strong>The</strong> indicator provides a ratio which compares the level of State Government funding<br />
resources ($1 of WATC net cost) to the level of cooperative funding attracted from non-<br />
State Government sources through various initiatives.<br />
Ratio of $1 of WATC net cost to industry support and revenue<br />
generated<br />
Activity 01-02 00-01 99-00 98-99 97-98 96-97<br />
National Marketing 1:0.16 1:0.09 1:0.20 1:0.11 1:0.09 1:0.03<br />
WA Visitor Centre 1:0.19 1:0.28 1:0.39 1:0.35 1:0.36 1:0.44<br />
International<br />
Marketing<br />
1:0.24 1:0.37 1:0.23 1:0.25 1:0.18 1:0.17<br />
Events 1:0.47 1:0.61 1:0.90 1:0.74 1:0.74 1:0.63<br />
Conventions,<br />
Meetings & Incentive<br />
Travel<br />
1:0.75 1:0.53 1:0.50 1:0.40 1:0.33 1:0.18<br />
Total 1:0.30 1:0.37 1:0.47 1:0.34 1:0.36 1:0.27<br />
Note:<br />
i. <strong>The</strong> results for both National and International Marketing are understated each year because a significant amount of<br />
industry support is obtained from joint marketing activities undertaken at the national and international level with the<br />
<strong>Australia</strong>n <strong>Tourism</strong> Commission and at the regional level through local Government investment. <strong>The</strong>se amounts cannot be<br />
included in the financial accounts.<br />
Comment<br />
While events still generated the greatest amount of private sector revenue, the event<br />
ratio fell from 1:0.61 in 2000-<strong>2001</strong> to 1:0.47 in <strong>2001</strong>-<strong>2002</strong> due to the funding the Johnnie<br />
Walker Classic golf event for the first time. <strong>The</strong> event does not generate direct revenue<br />
for the WATC.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
63<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 2 - An Enhanced <strong>Tourism</strong> Industry, Infrastructure and Product Base<br />
No of Project Sites<br />
Progressed to Agreed Stage<br />
Year<br />
Actual<br />
<strong>2001</strong>-<strong>2002</strong> 2<br />
2000-<strong>2001</strong> 6<br />
1999-2000 7<br />
1998-1999 6<br />
1997-1998 3<br />
Definitions:<br />
i. Infrastructure site – Refers to a physical location or construction of a tourism-related piece of infrastructure.<br />
ii.<br />
Agreed stage – Some projects are worked on over a number of years. <strong>The</strong>se projects are divided into stages that<br />
represent significant milestones in the project’s evolution from conception to completion. “Agreed Stage” is one that has<br />
been endorsed by the WA <strong>Tourism</strong> Commission Board as part of the annual Operational Plan process.<br />
Effectiveness Indicators<br />
Chapman Valley Wines, Chapman Valley, Mid West<br />
(1) Number of infrastructure project sites worked on and<br />
progressed to agreed stage<br />
<strong>The</strong> development of tourism-related infrastructure sites provides valuable assets for the<br />
tourism industry and the State in general. <strong>The</strong>refore, the more infrastructure assets, the<br />
greater the benefit. For this reason, the number of sites progressed is included as an<br />
indicator of effectiveness for the outcome of tourism development.<br />
It should be noted that while the WATC has significant influence over the progress<br />
of identified infrastructure projects, external events outside its control may impact on<br />
progress.<br />
Using the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Development Strategy as a basis, the WATC<br />
identified a number of priority project sites and worked with State and local government<br />
agencies to progress planning and approval processes to allow development to<br />
proceed.<br />
<strong>The</strong> specific infrastructure projects sites progressed during the year were:<br />
Infrastructure Project<br />
Karijini National Park, safari style<br />
accommodation<br />
Kununurra - Accommodation<br />
Agreed Stage of Progression<br />
Gumala contracting has been awarded<br />
preferred tenderer status and have<br />
commenced construction of stage one<br />
being powered sites within the Savannah<br />
Camping Area. Expected completion date<br />
for this stage is Mid 2003.<br />
Land for the Lake Argyle Tourist Village<br />
is vested in the WA <strong>Tourism</strong> Commission<br />
with the power to lease. In late <strong>2002</strong> a<br />
'request for proposal' process will be<br />
undertaken to enable an organisation or<br />
individual to lease this from the WATC<br />
with a view to enhancing the current<br />
accommodation facilities available at this<br />
site.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
64<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 2 - An Enhanced <strong>Tourism</strong> Industry, Infrastructure and Product Base continued<br />
(2) Number of tourism products and projects developed<br />
<strong>The</strong> development of tourism-related products and projects provide tangible and intangible<br />
assets for the tourism industry. As with infrastructure assets, the greater the number,<br />
the greater the benefit to the industry. For this reason, the number of tourism-related<br />
products and projects developed is provided as an indicator of the effectiveness for the<br />
outcome of tourism development. <strong>The</strong> involvement of WATC is to identify, facilitate and<br />
ensure the development of these products and projects, either acting as lead agency<br />
or participating in a development team led by another Government agency.<br />
This performance indicator relates to the achievement of pre-identified stages within a<br />
range of key projects that WATC staff are involved in throughout the state.<br />
It should be noted that while the WATC has significant influence over the development<br />
of tourism products and projects, external events outside its control may affect their<br />
progress.<br />
No. of <strong>Tourism</strong> Products and<br />
Projects Developed<br />
Year<br />
Actual<br />
<strong>2001</strong>-<strong>2002</strong> 66<br />
2000-<strong>2001</strong> 24<br />
1999-2000 29<br />
1998-1999 21<br />
1997-1998 9<br />
Definitions:<br />
i. Product means non-infrastructure but physical tourism-related product that can be purchased or used by a consumer or<br />
visitor to an area once completed. Examples include a holiday chalet complex, transport tour or interpretive centre.<br />
ii.<br />
iii.<br />
Project means a significant activity such as a strategy document progressed to completion, or, an element of a significant<br />
tourism-related development project, which is not being coordinated by the WATC.<br />
Developed is the term used in relation to products being completed and ready for use by the relevant customers or<br />
stakeholders and in the case of projects, where the extent of the services requested from the WATC have been met.<br />
Comment<br />
In line with the WATC strategic focus of increasing the amount of tourism product in<br />
<strong>Western</strong> <strong>Australia</strong>, this has been a satisfactory result. For the complete listing of products<br />
and projects see the <strong>Report</strong> on Operations section in the <strong>Annual</strong> <strong>Report</strong> for Outcome<br />
2, An Enhanced <strong>Tourism</strong> Industry, Infrastructure and Product Base.<br />
(3) Level of customer satisfaction with tourism industry<br />
development services provided<br />
WATC provides advice, consultant and advocacy services in relation to research,<br />
product development and enterprise professionalism to current and potential industry<br />
participants. <strong>The</strong>se processes help to develop the tourism industry by facilitating higher<br />
quality tourism attractions, facilities and services and increasing their quantity. <strong>The</strong> level of<br />
satisfaction with this assistance was evaluated by a survey conducted by an independent<br />
market research company. <strong>The</strong> results of the survey are shown in summary below.<br />
<strong>The</strong> survey is conducted each year during June. A random sample of customers<br />
who received a significant level of service during the financial year were contacted by<br />
telephone and asked to rate their level of satisfaction with the service provided to them.<br />
Respondents were asked to rate various elements of their service using a five-point<br />
scale ranging from (5) very satisfied to (1) very dissatisfied or (5) very helpful to (1) very<br />
unhelpful. <strong>The</strong> percentage of respondents who rated the selected elements (4) satisfied<br />
or (5) very satisfied are reported. Two of the key elements are shown below.<br />
Satisfaction With <strong>The</strong> Services Provided By <strong>The</strong> <strong>Tourism</strong> Industry<br />
Development Division<br />
Exceeded or Met<br />
Usefulness of<br />
Year<br />
Clients’ Expectations Information Provided<br />
<strong>2001</strong>-<strong>2002</strong> 91 91<br />
2000-<strong>2001</strong> 89 90<br />
1999-2000 96 97<br />
1998-1999 96 96<br />
1997-1998 90 89<br />
1996-1997 92 96<br />
Note:<br />
i. Sample size 230; response rate 53%, +/- 4% estimated error rate at 95% confidence level.<br />
Comment<br />
<strong>The</strong>se extremely high results reflect the ongoing commitment to high quality customer<br />
service demonstrated by the staff involved in providing the relevant services.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
65<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 2 - An Enhanced <strong>Tourism</strong> Industry, Infrastructure and Product Base continued<br />
(4) Number of <strong>Western</strong> <strong>Australia</strong>n tourism operators registered<br />
and accredited to the national tourism accreditation program<br />
A quality assurance program is being implemented by the WATC in partnership with<br />
the <strong>Tourism</strong> Council of <strong>Western</strong> <strong>Australia</strong> (TCWA). <strong>The</strong> aim of the program is to foster<br />
and improve the level of professionalism and standards of service for existing tourism<br />
industry operators.<br />
quality accreditation strategies. <strong>The</strong> enhancement of the program with the inclusion<br />
of a dedicated risk management section in light of Public Liability Insurance problems<br />
currently being experienced in the tourism industry is expected to generate significantly<br />
enhanced conversion of registered operators to Accredited operators in <strong>2002</strong>-2003.<br />
Registration indicates that operators have commenced implementing the required<br />
procedures and facilities to meet the requirements of the relevant standards.<br />
Accreditation means the operator has met the full requirement of the relevant standards<br />
as verified by independent audit.<br />
<strong>The</strong> number of registered and accredited operators provides an indication of the tourism<br />
industry’s level of commitment to professionalism and service. A target level of 850<br />
accredited businesses is to be achieved by 20 June 2003.<br />
Number of registered and accredited tourism operators as at<br />
30 June <strong>2002</strong><br />
Year<br />
Accredited <strong>Tourism</strong><br />
Industry Operators<br />
Actual Numbers<br />
Registered <strong>Tourism</strong><br />
Industry Operators<br />
Actual Numbers<br />
<strong>2001</strong>-<strong>2002</strong> 503 1,169<br />
2000-<strong>2001</strong> 461 966<br />
1999-2000 376 839<br />
1998-1999 250 653<br />
1997-1998 145 459<br />
1996-1997 17 320<br />
Note:<br />
i. <strong>The</strong> cumulative number of registered operators also includes those accredited as all accredited operators are registered.<br />
Comment<br />
<strong>The</strong> number of accredited operators increased by 42, equivalent to a growth of nine<br />
per cent over the number recorded last year. In comparison, registrations increased<br />
by 203, rising by 21 per cent. This strong rate of growth bodes well for achieving the<br />
industry’s objective of enhancing the level of professionalism within the industry through<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
66<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Key Performance Indicators<br />
Outcome 2 - An Enhanced <strong>Tourism</strong> Industry, Infrastructure and Product Base continued<br />
Efficiency Indicators<br />
Parker Point, Rottnest Island<br />
<strong>The</strong> efficiency KPIs for An Enhanced <strong>Tourism</strong> Industry, Infrastructure and Product<br />
Base outcome comprise mostly cost per output measures. Some of these are<br />
consistent with those reported in previous years, an internal review of activities within<br />
Outcome 2 resulted in two outputs, Cost per report and submission and the Value of<br />
<strong>Tourism</strong> Presentations being deleted as discrete outputs and were not measured and<br />
reported.<br />
As with Outcome 1, the use of indexes comparing resources utilised to effectiveness<br />
measures would be the ideal approach. However, the methodologies required to<br />
measure these outcomes are not yet available. <strong>The</strong>refore, the following indicators are<br />
provided on the basis that although somewhat crude, when assessed as a whole, they<br />
do provide some indication of overall efficiency.<br />
Efficiency cost measures for various tourism industry development<br />
outputs<br />
Indicator Title 01-02 00-01 99-00 98-99 97-98<br />
Cost per infrastructure<br />
project site developed to<br />
agreed stage<br />
Cost per tourism product or<br />
project developed<br />
Cost per research<br />
consultancy<br />
Cost per product<br />
development consultancy<br />
Cost per operator accredited<br />
to the National <strong>Tourism</strong><br />
Accreditation Program<br />
Cost per data table<br />
(research data table<br />
available to industry)<br />
Notes:<br />
$211,615 $265,197 $364,568 $64,119 $36,217<br />
$10,852 $29,504 $25,478 $25,519 $60,984<br />
$161.62 $80.80 $38.70 $55.10 $46.80<br />
$456.84 $335.53 $34.01 $33.60 $71.62<br />
$28,643 $15,640 $7,546 $8,927 $2,852<br />
$9,261 $6,741 $3,560 $3,239 -<br />
i. Results for this years cost per stage development reflect the enhanced volume of outputs produced by the Industry<br />
Development Team in this year with reduced staffing costs as a result of a number of positions being vacant for an<br />
extended period.<br />
ii.<br />
iii.<br />
iv.<br />
Results for this years cost per tourism product or project developed reflect the enhanced volume of outputs produced by<br />
the Industry Development Team in this year with reduced staffing costs as a result of a number of positions being vacant<br />
for an extended period.<br />
<strong>The</strong> cost per research consultancy increased due to a change of methodology. In earlier years, both external and internal<br />
(ie other WATC divisions) consultancies were recorded. From 1 October 2000, only external consultancies were recorded.<br />
<strong>The</strong> cost per successful accreditation increased significantly as the number of additional operators accredited in this<br />
financial year decreased from 85 last year to 42 with similar resources being devoted to this output. Measures highlighted<br />
above have been commenced to redress this in the coming year.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
67<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Financial Statements for the year ended 30 June <strong>2002</strong><br />
Statement of Financial Performance for the year ended 30 June <strong>2002</strong><br />
Expenses from Ordinary Activities<br />
Cost of Services<br />
Note<br />
<strong>2002</strong><br />
$’000<br />
<strong>2001</strong><br />
$’000<br />
Administration Expenses 3 3,732 4,217<br />
Advertising and Promotions 3 13,607 8,980<br />
Bad Debts Written Off 23 1 5<br />
Capital User Charge 4 426 -<br />
Commissioners’ Fees and Expenses 202 274<br />
Communication Expenses 740 630<br />
Computer Expenses 683 581<br />
Contract for Service – Perth Convention Bureau 1,010 1,015<br />
Depreciation 5 416 419<br />
Doubtful Debts Expense 35 59<br />
Event Operations 6 12,591 9,481<br />
Grants for Tourist Facilities and Organisations 2,752 2,494<br />
Borrowing Costs Expense 3 4<br />
Office Accommodation and Equipment Rentals 1,656 1,675<br />
Perth Convention and Exhibition Centre 7 - 1,582<br />
Salaries and Wages 3 7,952 7,686<br />
Superannuation 3 483 697<br />
Total Cost of Services 46,289 39,799<br />
Revenues from Government<br />
<strong>2002</strong> <strong>2001</strong><br />
Note<br />
$’000 $’000<br />
Recurrent Appropriation 2 32,011 31,469<br />
Capital Appropriation 2 1,004 4,500<br />
Grants Received 3 3,000 -<br />
Transfers to Other Agencies (2,956) -<br />
Resources Received Free-of-Charge 2, 8 52 32<br />
Transfer to Rottnest Island Authority 2 (1,015) (2,075)<br />
Total Revenues from Government 2 32,096 33,926<br />
Change in Net Assets (4,538) 3,482<br />
Net increase (decrease) in Asset Revaluation<br />
Reserve<br />
Total changes in equity other than those<br />
resulting from transactions with WA State<br />
Government as owners<br />
10 (110)<br />
(4,428) 3,372<br />
<strong>The</strong> Statement of Financial Performance should be read in conjunction with the<br />
accompanying notes.<br />
W A<br />
Revenues from Ordinary Activities<br />
Revenue from Operating Activities<br />
Hopman Cup Venture 9 80 7<br />
Event Operations 6 4,678 4,388<br />
Industry Contribution 3 3,496 3,052<br />
Net Profit on Disposal of Non-Current Assets 19 7 7<br />
Travel Agents’ Commission 529 681<br />
Revenue from Non-operating Activities<br />
Interest Revenue 3 322 609<br />
Other Revenue from Ordinary Activities 543 611<br />
Total Revenues from Ordinary Activities 9,655 9,355<br />
Net Cost of Services 36,634 30,444<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
68<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Financial Statements for the year ended 30 June <strong>2002</strong><br />
Statement of Financial Position at 30 June <strong>2002</strong><br />
Note<br />
<strong>2002</strong><br />
$’000<br />
<strong>2001</strong><br />
$’000<br />
Current Assets<br />
Cash Assets 18 3,519 11,237<br />
Restricted Cash Assets 18 152 851<br />
Receivables 9 4,683 1,067<br />
Amounts Receivable for Outputs 10 424<br />
Other Assets 11 1,965 845<br />
Total Current Assets 10,743 14,000<br />
Non-current Assets<br />
Land 12 2,640 2,630<br />
Leasehold Improvements 12 152 212<br />
Furniture, Fittings and Equipment 12 310 364<br />
Computer Equipment 12 458 444<br />
Total Non-Current Assets 3,560 3,650<br />
Note<br />
<strong>2002</strong><br />
$’000<br />
<strong>2001</strong><br />
$’000<br />
Equity<br />
Reserves 17 2,640 2,630<br />
Accumulated Surplus 17 2,855 7,391<br />
Contributed Equity 17 482 -<br />
Total Equity 17 5,977 10,021<br />
<strong>The</strong> Statement of Financial Position should be read in conjunction with the<br />
accompanying notes.<br />
Total Assets 14,303 17,650<br />
Current Liabilities<br />
Payables 13 234 348<br />
Other Liabilities 14 4,433 3,545<br />
Interest Bearing Liabilities 15 27 33<br />
Provisions 16 1,139 1,034<br />
Total Current Liabilities 5,833 4,960<br />
Non-current Liabilities<br />
Interest Bearing Liabilities 15 - 27<br />
Provisions 16 2,493 2,642<br />
Total Non-Current Liabilities 2,493 2,669<br />
Total Liabilities 8,326 7,629<br />
Net Assets 5,977 10,021<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
69<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Financial Statements for the year ended 30 June <strong>2002</strong><br />
Statement of Cash Flows for the year ended 30 June <strong>2002</strong><br />
Note<br />
<strong>2002</strong><br />
Inflows<br />
(Outflows)<br />
$’000<br />
<strong>2001</strong><br />
Inflows<br />
(Outflows)<br />
$’000<br />
Cash Flows From Government<br />
Recurrent Appropriation 31,587 31,469<br />
Capital Appropriation 1,486 4,500<br />
Transfers to Other Agencies (2,944) -<br />
Transfer to Rottnest Island Authority (1,015) (2,075)<br />
Net Cash Provided by Government 29,114 33,894<br />
Cash Flows From Operating Activities<br />
Payments<br />
Borrowing Costs (3) (5)<br />
Event Operations (12,125) (8,254)<br />
Grants and Subsidies (2,852) (2,147)<br />
Contract for Service – Perth Convention Bureau (1,010) (1,015)<br />
Administration and Employment Expenses (13,869) (13,609)<br />
Capital User Charge (426) -<br />
Office Accommodation and Equipment Rentals (1,660) (1,741)<br />
Perth Convention and Exhibition Centre - (1,701)<br />
Marketing Expenses (11,120) (7,744)<br />
Payments to Travel Operators (4,822) (6,096)<br />
GST Payments on Purchases (2,700) (1,360)<br />
GST Payments to Taxation Authority (715) (597)<br />
Receipts<br />
Event Operations 2,880 2,863<br />
Industry Contributions 1,631 1,924<br />
Interest Received 335 623<br />
Other Receipts 534 560<br />
Travel Centre Revenue 5,384 6,793<br />
GST Receipts on Sales 552 327<br />
GST Receipts from Taxation Authority 2,798 1,053<br />
Net Cash Used in Operating Activities 18 (c) (37,188) (30,079)<br />
Note<br />
<strong>2002</strong><br />
Inflows<br />
(Outflows)<br />
$’000<br />
<strong>2001</strong><br />
Inflows<br />
(Outflows)<br />
$’000<br />
Cash Flows From Investing Activities<br />
Purchase of Furniture, Fittings and Equipment (329) (657)<br />
Proceeds from Sale of Furniture, Fittings and<br />
Equipment<br />
Payment of Loans – Hotham Valley Tourist Railway<br />
19<br />
7 8<br />
Proceeds from Loans – Hotham Valley Tourist<br />
Railway 12 35<br />
Net Cash provided by (used in) Investing<br />
Activities<br />
(310) (649)<br />
Cash Flows From Financing Activities<br />
Repayment of Borrowings (33) (31)<br />
Net Cash used in Financing Activities (33) (31)<br />
Net Increase/(Decrease) in Cash Held (8,417) 3,135<br />
Cash assets at the beginning of the financial year 18(a) 12,088 8,953<br />
Cash Assets at the end of the financial year 18 (a) 3,671 12,088<br />
<strong>The</strong> Statement of Cash Flows should be read in conjunction with the<br />
accompanying notes.<br />
-<br />
(35)<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
70<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
Notes to and Forming Part of the Financial Statements<br />
1. STATEMENT OF ACCOUNTING POLICIES<br />
Significant Accounting Policies<br />
<strong>The</strong> following accounting policies have been adopted in the preparation of the<br />
financial statements. Unless otherwise stated, these policies are consistent with<br />
those adopted in the previous year.<br />
General Statement<br />
<strong>The</strong> financial statements constitute a general purpose financial report which has<br />
been prepared in accordance with <strong>Australia</strong>n Accounting Standards, Statements<br />
of Accounting Concepts and other authoritative pronouncements of the <strong>Australia</strong>n<br />
Accounting Standards Board and Urgent Issues Group (UIG) Consensus Views<br />
as applied by the Treasurer’s Instructions. Several of these are modified by the<br />
Treasurer’s Instructions to vary application, disclosure, format and wording. <strong>The</strong><br />
Financial Administration and Audit Act and the Treasurer’s Instructions are legislative<br />
provisions governing the preparation of financial statements and take precedence<br />
over <strong>Australia</strong>n Accounting Standards, Statements of Accounting Concepts and other<br />
authoritative pronouncements of the <strong>Australia</strong>n Accounting Standards Board, and<br />
UIG Consensus Views. <strong>The</strong> modifications are intended to fulfil the requirements of<br />
general application to the public sector together with the need for greater disclosure<br />
and also to satisfy accountability requirements.<br />
If any such modification has a material or significant financial effect upon the reported<br />
results, details of that modification and where practicable, the resulting financial<br />
effect, are disclosed in individual notes to these financial statements.<br />
<strong>The</strong> statements have been prepared on the accrual basis of accounting using the<br />
historical cost convention, except for certain assets and liabilities which, as noted,<br />
are measured at valuation.<br />
a) Output Appropriations<br />
Output Appropriations are recognised as revenues in the period in which the WATC<br />
gains control of the appropriated funds. <strong>The</strong> WATC gains control of appropriated<br />
funds at the time those funds are deposited into the WATC’s bank account or credited<br />
to the holding account held at the Department of Treasury and Finance.<br />
b) Contributed Equity<br />
Under UIG 38 “Contributions by Owners Made to Wholly-Owned Public Sector<br />
Entities” transfers in the nature of equity contributions must be designated by<br />
the Government (owners) as contributions by owners (at the time of, or prior to<br />
transfer) before such transfers can be recognised as equity contributions in the<br />
financial statements. Capital contributions (appropriations) have been designated<br />
as contributions by owners and have been credited directly to Contributed Equity<br />
in the Statement of Financial Position. All other transfers have been recognised<br />
in the Statement of Financial Performance. Prior to the current reporting period,<br />
capital appropriations were recognised as revenue in the Statement of Financial<br />
Performance. Capital appropriations which are repayable to the Treasurer are<br />
recognised as liabilities.<br />
c) Grants and Other Contributions Revenue<br />
Grants, donations, gifts and other non-reciprocal contributions are recognised as<br />
revenue when the WATC obtains control over the assets comprising the contributions.<br />
Control is normally obtained upon their receipt.<br />
Contributions are recognised at their fair value. Contributions of services are only<br />
recognised when a fair value can be reliably determined and the services would<br />
be purchased if not donated.<br />
d) Revenue Recognition<br />
Revenue from the sale of goods and disposal of other assets and the rendering of<br />
services, is recognised when the WATC has passed control of the goods or other<br />
assets, or delivery of the service to the customer.<br />
<strong>The</strong> receipt of goods and services provided in lieu of cash for the management<br />
and sponsorship of events and the WATC’s media and journalists’ familiarisation<br />
programs are recognised in the accounts.<br />
<strong>The</strong>se non-cash (contra) amounts are incorporated in the relevant expenditure and<br />
revenue items. <strong>The</strong> valuation of contra items are generally specified in the individual<br />
contracts with suppliers, but where the contract does not specify the value of the<br />
contra items representing the goods or services, the valuation is determined by the<br />
normal retail price of the goods or services received.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
71<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
e) Acquisition of assets<br />
<strong>The</strong> cost method of accounting is used for all acquisitions of assets. Cost is<br />
measured as the fair value of the assets given up or liabilities undertaken<br />
at the date of acquisition plus incidental costs directly attributable to the<br />
acquisition.<br />
Assets acquired at no cost or for nominal consideration, are initially<br />
recognised at their fair value at the date of acquisition.<br />
f) Depreciation of Non-current Assets<br />
All non-current assets costing in excess of $1,000 and having a limited useful life<br />
are systematically depreciated over their useful lives in a manner which reflects the<br />
consumption of their future economic benefits.<br />
Depreciation is calculated on the straight-line basis, using rates which are reviewed<br />
annually. Useful lives for each class of depreciable asset are:<br />
Furniture, Fittings and Equipment<br />
Computer Equipment<br />
Leasehold Improvements<br />
g) Revaluation of Land<br />
5-10 years<br />
3-5 years<br />
Term of Lease<br />
<strong>The</strong> WATC has a policy valuing land at fair value. <strong>The</strong> annual revaluations of the<br />
WATC’s land is undertaken by the Valuer General’s Office for the Government<br />
Property Register and are recorded in the financial statements.<br />
h) Leases<br />
<strong>The</strong> WATC has entered into a number of operating lease arrangements for motor<br />
vehicles, buildings and office equipment where the lessors effectively retain all of<br />
the risks and benefits incident to ownership of the items held under the operating<br />
leases. Equal instalments of the lease payments are charged to the Statement of<br />
Financial Performance over the lease term, as this is representative of the pattern<br />
of benefits to be derived from the leased property.<br />
<strong>The</strong> WATC has not entered into any finance leases.<br />
i) Cash<br />
For the purpose of the Statement of Cash Flows, cash includes cash assets and<br />
restricted cash assets. <strong>The</strong>se include short-term deposits that are readily convertible<br />
to cash on hand and are subject to insignificant risk of changes in value.<br />
j) Receivables<br />
Receivables are recognised as the amounts receivable as they are due for settlement<br />
no more than 30 days from the date of recognition.<br />
Collectability of receivables is reviewed on an ongoing basis. Debts which<br />
are known to be uncollectable are written off. A provision for doubtful debts<br />
is raised where some doubts as to collection exists and in any event when<br />
the debt is more than 90 days overdue.<br />
k) Payables<br />
Payables, including accruals not yet billed, are recognised when the WATC becomes<br />
obliged to make future payments as a result of a purchase of assets or services.<br />
Payables are generally settled within 30 days.<br />
l) Interest-bearing Liabilities<br />
Bank loans and other loans are recorded at an amount equal to the net proceeds<br />
received. Borrowing costs expense is recognised on an accrual basis.<br />
m) Employee Entitlements<br />
i) <strong>Annual</strong> leave<br />
This entitlement is recognised at current remuneration rates and is measured as<br />
the amount unpaid at the reporting date in respect to employees’ services up to<br />
that date.<br />
ii) Long service leave<br />
Leave entitlements are calculated at current remuneration rates. A liability<br />
for long service leave is recognised after an employee has completed three<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
72<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
years of service. An actuarial assessment of long service leave undertaken by<br />
PriceWaterhouseCoopers Actuaries in 2000 determined that the liability measured<br />
using the short hand method was not materially different from the liability measured<br />
using the present value of expected future payments.<br />
This method of measurement of the liability is consistent with the requirements of<br />
<strong>Australia</strong>n Accounting Standard AAS 30 “Accounting for Employee Entitlements”.<br />
iii) Superannuation<br />
On formation of the WATC, senior staff were able to contribute to a private<br />
superannuation scheme operated by FAI Life Insurance Society Limited, a defined<br />
benefit and lump sum scheme now closed to new members. Staff contributed to<br />
the Gold State Superannuation Scheme, a defined benefit and lump sum scheme<br />
now also closed to new members. All staff who do not contribute to either of these<br />
schemes become non-contributory members of the West State Superannuation<br />
Scheme, an accumulation fund complying with the Commonwealth Government’s<br />
Superannuation Guarantee (Administration) Act 1992.<br />
Both the Gold State and West State Superannuation Schemes are administered by<br />
the Government Employees Superannuation Board (GESB).<br />
<strong>The</strong> liability for the pre-transfer service liability for employees who transferred to the<br />
Gold State Superannuation Scheme is unfunded and the liability for future payments<br />
is provided for at reporting date.<br />
<strong>The</strong> liabilities for superannuation charges under the Gold State Superannuation<br />
Scheme and West State Superannuation Scheme are extinguished by fortnightly<br />
payment of employer contributions to the Government Employees Superannuation<br />
Board (GESB).<br />
Liabilities for superannuation charges to the FAI Life Insurance Society Limited<br />
scheme are extinguished by fortnightly payments to FAI Life Insurance Society<br />
Limited.<br />
Prior to the formation of the WATC in 1984, the Government retained liability for<br />
funding members’ superannuation benefits for staff employed by the <strong>Western</strong><br />
<strong>Australia</strong>n Department of <strong>Tourism</strong>. This situation continued from 1984 until the<br />
implementation of the new Government Employees Gold State Superannuation<br />
Scheme in July 1987. Following a review by the Treasury Department and the GESB,<br />
the WATC is now required to meet the past service liabilities for those members of the<br />
Gold State Superannuation Scheme who cease employment after 1 July 1992.<br />
A provision for the pre-1992 service liability has been determined by the WATC<br />
based on information supplied by the GESB.<br />
<strong>The</strong> note disclosure required by paragraph 51(e) of AAS 30 (being the employer’s<br />
share of the difference between employees’ accrued superannuation benefits and the<br />
attributable net market value of plan assets) has not been provided. State scheme<br />
deficiencies are recognised by the State in its whole of government reporting.<br />
<strong>The</strong> Government Employees Superannuation Board’s records are not structured<br />
to provide the information for the WATC. Accordingly, deriving the information for<br />
the WATC is impractical under current arrangements, and thus any benefits thereof<br />
would be exceeded by the cost of obtaining the information.<br />
n) Accrued Salaries<br />
Accrued salaries represent the amount due to staff but unpaid at the end<br />
of the financial year, as the end of the last pay period for that financial year<br />
does not coincide with the end of the financial year. <strong>The</strong> WATC considers<br />
the carrying amount approximates net fair value.<br />
o) Resources Received Free-of-Charge or For Nominal Value<br />
Resources received free-of-charge or for nominal value which can be reliably<br />
measured are recognised as revenues and as assets or expenses as appropriate<br />
at fair value.<br />
p) Foreign Currency Translation and Hedges<br />
<strong>The</strong> Commission has offices in Japan, Singapore, Malaysia, UK and Germany.<br />
<strong>The</strong>se offices maintain local bank accounts the balances of which are included in<br />
the balance of cash on hand and permanent advances.<br />
Transactions denominated in a foreign currency are translated at the rates in<br />
existence at the dates of the transactions. Foreign currency receivables and<br />
payables at reporting date are translated at exchange rates current at reporting<br />
date. Exchange gains and losses are brought to account in determining the result<br />
for the year.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
73<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
Forward foreign exchange contracts are entered into as hedges to avoid or minimise<br />
possible adverse financial effects of movements in exchange rates. Exchange gains<br />
and losses and costs arising from these contracts are deferred and included in the<br />
determination of the amounts when the transactions are brought to account.<br />
q) Comparative Figures<br />
Comparative figures are, where appropriate, reclassified so as to be comparable<br />
with the figures presented in the current financial year.<br />
r) Rounding<br />
Amounts in the financial statements have been rounded to the nearest thousand<br />
dollars.<br />
2. REVENUES (TO) / FROM GOVERNMENT<br />
01-02<br />
$’000<br />
00-01<br />
$’000<br />
Appropriation revenue received during the year:<br />
- Output Appropriation (i) 32,000 31,394<br />
- Capital Appropriation (ii) - 2,500<br />
- Rottnest Island Authority – Output Appropriation 11 75<br />
- Rottnest Island Authority – Capital Appropriation 1,004 2,000<br />
Total Appropriation 33,015 35,969<br />
<strong>The</strong> following assets have been transferred to other government<br />
agencies during the financial year: (iii)<br />
- Cash (2,944) -<br />
- Fixed assets (12) -<br />
- Rottnest Island Authority (1,015) (2,075)<br />
Total Assets transferred (3,971) (2,075)<br />
Resources Received Free-of-Charge (iv)<br />
Determined on the basis of the following estimates provided by<br />
agencies:<br />
- Office of the Auditor General 52 32<br />
Total Resources Received Free-of-Charge 52 32<br />
Total Revenues from Government 29,096 33,926<br />
Notes:<br />
i. Output appropriations are accrual amounts as from 1 July <strong>2001</strong>, reflecting the full price paid for outputs purchased<br />
by the Government. <strong>The</strong> appropriation revenue comprises a cash component and a receivable (asset). <strong>The</strong><br />
receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave<br />
liability during the year.<br />
II.<br />
III.<br />
IV.<br />
Capital appropriations were revenue in 2000 (year ended 30 June <strong>2001</strong>). From 1 July <strong>2001</strong>, capital appropriations,<br />
termed Capital Contributions, have been designated as contributions by owners and are credited straight to equity in<br />
the Statement of Financial Position.<br />
Where a liability has been assumed by the Treasurer or other entity, the WATC recognises revenues equivalent to the<br />
amount of the liability assumed and an expense relating to the nature of the event or events that initially gave rise to<br />
the liability. Non-reciprocal transfers of assets or liabilities cannot be treated as contributions by owners (equity) as<br />
no formal designation has been made and the other requirements specified in UIG 38(7) have not been met.<br />
Where assets or services have been received free of charge or for nominal consideration, the WATC recognises<br />
revenues equivalent to the fair value of the assets and/or the fair value of those services that can be reliably<br />
determined and which would have been purchased if not donated, and those fair values shall be recognised as<br />
assets or expenses, as applicable.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
74<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
3. EXPLANATORY STATEMENT<br />
i) Significant variations between actual revenues and expenditures for the financial<br />
year and revenues and expenditures for the immediately preceding financial<br />
year.<br />
<strong>The</strong> WATC’s policy requires explanations of significant variations between the actual<br />
results of the current year compared to the actual results of the previous year if the<br />
results are not reported in a separate note. Significant variations are considered<br />
to be variations that are either greater than $200,000, or 10% of the amounts for<br />
the previous year.<br />
Class<br />
Actual<br />
01-02<br />
$’000<br />
Actual<br />
00-01<br />
$’000<br />
Variance<br />
$’000<br />
Expenditure<br />
Administration Expenses 3,730 4,217 (487)<br />
Advertising and Promotions 13,607 8,980 4,627<br />
Grants for <strong>Tourism</strong> Facilities and<br />
Organisations<br />
2,752 2,494 258<br />
Salaries and Wages 7,952 7,686<br />
Superannuation 483 697 (214)<br />
Revenue<br />
Industry Contribution 3,496 3,052 444<br />
Grants Received 3,000 - 3,000<br />
Interest Revenue 322 609 (287)<br />
Administration Expenses - Decreases in Consultants Fees, Credit Card fees,<br />
parts and repairs and Casual Wages.<br />
Advertising and Promotions - Increase advertising activities funded from special<br />
allocation provided to assist the tourism industry recovery following the September<br />
11 terrorist attack in America and the demise of Ansett Airlines.<br />
Grants <strong>Tourism</strong> Facilities and Organisations - Special grant paid to the Travel<br />
Compensation Fund.<br />
Salaries - Increase in staff employed as a result staff following an internal<br />
restructure<br />
266<br />
Superannuation - Adjustment of provision for past service liability, previous years<br />
provision overstated.<br />
Industry Contributions - Increased contributions from the private sector in WATC<br />
advertising and promotional campaigns.<br />
Grants Received - Grant received from the Department of Local Government<br />
and Regional Development to fund activities associated with the tourism industry<br />
recovery from the effects of the terrorist attack in America and the demise of<br />
Ansett Airlines.<br />
Interest Revenue - Revenue decreased as a result of a decrease in funds<br />
invested.<br />
ii) Significant variations between estimates and actual results for the financial<br />
year.<br />
Details and reasons for significant variations between estimates and actual results<br />
are detailed below. Significant variations are considered to be variations that are<br />
either greater than $200,000, or 10% of budget.<br />
Class<br />
Estimates<br />
01-02<br />
$’000<br />
Actual<br />
01-02<br />
$’000<br />
Variance<br />
$’000<br />
Expenditure<br />
Event Operations 13,321 12,591 730<br />
Grants <strong>Tourism</strong> Facilities and<br />
Organisations<br />
2,966 2,752 214<br />
Superannuation 736 483 253<br />
Revenue<br />
Event <strong>Tourism</strong> 5,076 4,678 (398)<br />
Industry Contributions 2,514 3,496 982<br />
Event Operations Expenditure - Decrease of expenditure relates to deferral of<br />
future event funding to <strong>2002</strong>-2003.<br />
Grants <strong>Tourism</strong> Facilities and Organisations - <strong>The</strong> expenditure incurred<br />
includes an unbudgeted grant made to the Travel Compensation Fund, less<br />
unexpended balances to be carried forward to <strong>2002</strong>-2003 for the Country Visitor<br />
Centre Sustainability Enhancement and the WA Regional and Rural Marketing<br />
Assistance schemes<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
75<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
Superannuation - Reduction in expenditure relates to the adjustment of liability<br />
for the pre-transfer service liability for employees who transferred to the Gold State<br />
Superannuation Scheme.<br />
Event <strong>Tourism</strong> Revenue - Rally <strong>Australia</strong> <strong>2001</strong> was conducted post the terrorist<br />
attack in America and the demise of Ansett Airlines and failed to achieve the<br />
budgeted revenue.<br />
Industry Contributions - Increased contributions from the private sector in WATC<br />
advertising, promotional activities and campaigns.<br />
4. CAPITAL USER CHARGE<br />
01-02 00-01<br />
$’000 $’000<br />
Capital User Charge 426 -<br />
A capital user charge rate of 8% has been set by the Government for <strong>2001</strong>-02 and<br />
represents the opportunity cost of capital invested in the net assets of the WATC used<br />
in the provision of outputs. <strong>The</strong> charge is calculated on the net assets adjusted to<br />
take account of exempt assets. Payments are made to the Department of Treasury<br />
and Finance on a quarterly basis. <strong>The</strong> Capital user charge that would have applied<br />
to 2000-<strong>2001</strong> is estimated to be $801,680.<br />
5. DEPRECIATION<br />
01-02 00-01<br />
$’000 $’000<br />
Furniture, Fittings and Equipment 80 114<br />
Computer Equipment 276 250<br />
Leasehold Improvements 60 55<br />
6. EVENT OPERATIONS<br />
416 419<br />
i) <strong>The</strong> expenditure and revenue totals for <strong>2001</strong>-<strong>2002</strong> increased from the previous<br />
year, resulting from an increase in the number of events managed and funded<br />
during the year.<br />
01-02 00-01<br />
$’000 $’000<br />
Event Expenditure 12,591 9,481<br />
Event Revenue (4,678) (4,388)<br />
7,913 5,093<br />
ii) Event revenue is comprised of cash, as well as the value of goods and<br />
services received for management and sponsorship of events conducted by<br />
EventsCorp, a division of the WATC. <strong>The</strong> following is an analysis of the contragoods<br />
and services received in lieu of cash sponsorship. <strong>The</strong> amounts have<br />
been incorporated in the relevant expenditure and revenue items.<br />
01-02<br />
$’000<br />
00-01<br />
$’000<br />
Classification of Contra-Goods and Services<br />
Event – Services 62 98<br />
- Operational 639 505<br />
- Promotional 130 601<br />
- Marketing 599 204<br />
- Administration 56 64<br />
1,486 1,472<br />
iii) Event expenditure reflects the use of event revenue, funding sponsorships<br />
and funds from the Consolidated Fund to meet costs such as administration,<br />
operational and service costs, advertising and promotions, communications and<br />
prize money. It also includes expenditure incurred in bidding for events and the<br />
allocation of funding to private organisations involved in managing events.<br />
7. PERTH CONVENTION AND EXHIBITION CENTRE<br />
From 1 July <strong>2001</strong>, responsibility, staff resources and funding for the development<br />
of the Perth Convention and exhibition Centre were transferred to the Department<br />
of Housing and Works.<br />
Unexpended balances of $2.956 million, comprised of cash $2.944 million and other<br />
assets, $12 thousand were transferred during <strong>2001</strong>-<strong>2002</strong><br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
76<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
8. RESOURCES RECEIVED FREE-OF-CHARGE<br />
Resources received free-of-charge have been determined on the basis of the<br />
following estimates provided by agencies:<br />
01-02<br />
$’000<br />
00-01<br />
$’000<br />
Office of the Auditor General – Audit Fees 52 32<br />
9. RECEIVABLES<br />
Receivables<br />
30/06/02<br />
$’000<br />
30/06/01<br />
$’000<br />
Current<br />
Trade Debtors 4,740 942<br />
Provision for Doubtful Debts (35) (54)<br />
Hotham Valley Tourist Railway (HVTR) - 49<br />
Provision for Doubtful Debts (HVTR) - (49)<br />
GST Receivable (22) 179<br />
Non-Current<br />
4,683 1,067<br />
Hotham Valley Tourist Railway (HVTR) 2,168 2,130<br />
Provision for Doubtful Debts (HVTR) (2,168) (2,130)<br />
i) Significant Terms and Conditions<br />
General Accounts Receivable are required to be settled within 30 days.<br />
Loan Receivable from Hotham Valley Tourist Railway (HVTR) – $11,500 was<br />
recovered in accordance with arrangements entered into pursuant to Clause 12 of<br />
the Guarantee provided by HVTR to the WATC.<br />
ii) Hopman Cup Venture<br />
Distribution due at start of period<br />
- Adjustment 1999 event<br />
01-02<br />
$’000<br />
32<br />
-<br />
00-01<br />
$’000<br />
81<br />
(25)<br />
Plus Share of Profits for the <strong>2001</strong> event 80 32<br />
112 88<br />
Less Distribution Received - (56)<br />
Balance due at end of period 112 32<br />
iii) Credit Risk<br />
In 1997-1998, the WATC engaged a consultant to provide a report into the finances<br />
of HVTR.<br />
<strong>The</strong> report detailed that “Hotham Valley Tourist Railway has liabilities far in excess of<br />
the recorded book value of the association’s assets. <strong>The</strong> majority of these liabilities<br />
are owed to the WATC and it is improbable that a substantial portion of this debt<br />
will ever be repaid.” Based on this advice, a provision to cover the receivable is<br />
included in the financial statements.<br />
10. AMOUNTS RECIEVABLE FOR OUTPUTS<br />
01-02 00-01<br />
$’000 $’000<br />
Current 424 -<br />
Non-current - -<br />
424 -<br />
This asset represents the non-cash component of output appropriations. It is<br />
restricted in that it can only be used for asset replacement or payment of leave<br />
liability.<br />
W A<br />
Under the Hopman Cup Venture agreement, the WATC is entitled to 25% of the<br />
profits of the venture.<br />
<strong>The</strong> venture has changed its accounting year end to 30 June of each financial<br />
year. Provisional profit has been recognised based on draft statements as at<br />
30 March <strong>2002</strong>.<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
77<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
11. OTHER ASSETS<br />
Accrued income relates to Travel Agents’ commissions due on tickets sold but<br />
not deducted from payments to travel operators and interest earned but not<br />
credited. Prepayments relate to an overseas office lease, a computer software<br />
maintenance contract, deposits for future activities, rent in advance and payment<br />
for the International TV Rights for Rally <strong>Australia</strong>.<br />
30/06/<strong>2002</strong> 30/06/<strong>2001</strong><br />
$’000 $’000<br />
Accrued Income 7 28<br />
Prepayments 1,958 817<br />
12. NON-CURRENT ASSETS<br />
1,965 845<br />
30/06/<strong>2002</strong> 30/06/<strong>2001</strong><br />
$’000 $’000<br />
Land – At Valuation 2,640 2,630<br />
Leasehold Improvements – At Cost 617 617<br />
Less Accumulated Depreciation (465) (405)<br />
152 212<br />
As detailed in Note 1 (g), the WATC values its vested Crown land in accordance<br />
with the valuation recorded in the Government Property Register (GPR).<br />
Reconciliations<br />
Reconciliation of the carrying amounts of Property, Furniture, Fittings, Equipment<br />
and Computer Equipment at the beginning and end of the current year and the<br />
previous financial year are set out below.<br />
Land<br />
Leasehold<br />
Improvements<br />
Furniture,<br />
Fittings and<br />
Equipment<br />
Computer<br />
Equipment<br />
Total<br />
<strong>2001</strong>-<strong>2002</strong> $’000 $’000 $’000 $’000 $’000<br />
Carrying amount<br />
at start of year<br />
2,630 212 364 444 3,650<br />
Additions - - 34 300 334<br />
Disposals - - (23) (177) (200)<br />
Depreciation - (60) (65) (109) (234)<br />
Furniture, Fittings and Equipment – At Cost 951 940<br />
Less Accumulated Depreciation (641) (576)<br />
310 364<br />
Revaluation<br />
Increments<br />
Carrying amount<br />
at end of year<br />
10 - - - 10<br />
2,640 152 310 458 3,560<br />
Computer Equipment – At Cost 1,471 1,348<br />
Less Accumulated Depreciation (1,013) (904)<br />
458 444<br />
3,560 3,650<br />
Crown Land properties situated at Lake Argyle and Donnelly River have been vested<br />
in the WATC with the power to lease for the purpose of tourism and recreation. <strong>The</strong><br />
land was valued at $2,640,000 by the Valuer General on 30 June <strong>2002</strong> using the<br />
‘Highest and Best’ method and is the value recorded in the Government Property<br />
Register.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
78<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
12. NON-CURRENT ASSETS (Continued)<br />
Leasehold<br />
Improvements<br />
Furniture,<br />
Fittings and<br />
Equipment<br />
Computer<br />
Equipment<br />
Land<br />
Total<br />
<strong>2001</strong>-<strong>2002</strong> $’000 $’000 $’000 $’000 $’000<br />
Carrying amount<br />
at start of year<br />
2,740 163 252 367 3,522<br />
Additions - 104 226 327 657<br />
Disposals - - - - -<br />
Depreciation - (55) (114) (250) (419)<br />
Revaluation<br />
Increments<br />
Carrying amount<br />
at end of year<br />
13. PAYABLES<br />
(110) - - - (110)<br />
2,630 212 364 444 3,650<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
Trade Payables 234 1,609<br />
14. OTHER LIABILITIES<br />
234 1,609<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
Accrued Salaries 173 200<br />
Accrued Expenses 1,762 1,071<br />
Income in Advance 441 195<br />
Deferred grants 2,057 2,079<br />
4,443 3,545<br />
15. INTEREST BEARING LIABILITIES<br />
Borrowings from WA Treasury Corporation<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
- Current 27 33<br />
- Non-current - 27<br />
16. PROVISIONS<br />
27 60<br />
<strong>The</strong> aggregate employee entitlement liability recognised and included in the financial<br />
statements is as follows:<br />
Provision for employee entitlements<br />
Current Liabilities:<br />
30/06/<strong>2001</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
Liability for <strong>Annual</strong> Leave 716 610<br />
Liability for Long Service Leave 423 336<br />
Liability for Redundancies - 88<br />
Non-Current Liabilities:<br />
1,139 1,034<br />
Liability for Long Service Leave 763 671<br />
Liability for Superannuation 1,347 1,604<br />
Liability for Retirement, Termination , Redundancy<br />
Payments<br />
383 367<br />
2,493 2,642<br />
3,632 3,676<br />
<strong>The</strong> Long Service Leave liability was adjusted based on an approved short-hand<br />
calculation method provided by PriceWaterhouseCoopers in July 2000.<br />
<strong>The</strong> superannuation liability has been established from data supplied by the<br />
Government Employees Superannuation Board.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
79<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
Some overseas officers have an employment condition that requires the payment<br />
of up to 1.25 months salary for each completed year of service on retirement or<br />
termination. This condition is consistent with the employment conditions for the<br />
country in which the officers work. Based on this, a provision to cover the amount<br />
that has accrued to 30 June <strong>2002</strong> has been made in the financial statements for<br />
<strong>2001</strong>-<strong>2002</strong>.<br />
<strong>The</strong> WATC considers the carrying amount of employee entitlements approximates<br />
its net fair value.<br />
17. EQUITY<br />
Contributed Equity<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
Opening Balance - -<br />
Capital Contributions (i) 482 -<br />
Closing Balance 482 -<br />
(I) From 1 July <strong>2001</strong>, capital appropriations, termed Capital Contributions, have<br />
been designated as contributions by owners and are credited straight to equity<br />
in the Statement of Financial Position.<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
Asset Revaluation Reserve<br />
Opening Balance 2,630 2,740<br />
Net Revaluation Increments (i) 10 (110)<br />
Closing Balance 2,640 2,630<br />
Revaluations recognised during the year were in respect<br />
of:<br />
Crown Land Reserves situated at Lake Argyle 10 -<br />
Crown Land Reserves situated at Donnelly River - (110)<br />
10 (110)<br />
(I) <strong>The</strong> asset revaluation reserve is used to record increments and decrements on<br />
the revaluation of non-current assets, as described in accounting policy note<br />
1(g).<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
Accumulated Surplus<br />
Opening Balance 7,391 3,909<br />
Change in Net Assets (4,536) 3,482<br />
Closing Balance 2,855 7,391<br />
18. NOTES TO THE STATEMENT OF CASH FLOWS<br />
(a) Reconciliation of cash<br />
Cash at the end of the financial year as shown in the Statement of Cash Flows is<br />
reconciled to the related items in the Statement of Financial Position as follows:<br />
Cash Assets<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
- Cash at Bank General Account (115) 1,406<br />
- Cash on Hand and Permanent Advances 120 214<br />
- Temporary Advances 4 7<br />
- Term Deposits 3,500 9,500<br />
- Cash Management General Account 10 110<br />
Restricted Cash Assets<br />
3,519 11,237<br />
- Cash at Bank Trust Account 152 846<br />
- Cash Management Trust Account - 5<br />
152 851<br />
3,671 12,088<br />
<strong>The</strong> Restricted Cash Assets relate to the Perth Tourist Centre operations and<br />
comprise deposits held on behalf of clients and amounts due to creditors.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
80<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
(b) Non-cash financing and investing activities<br />
During the year, the following assets were transferred to other agencies and are<br />
not reflected in the Statement of Cashflows:<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
Transfers to Other Agencies<br />
Computer Equipment 7 -<br />
Furniture 5 -<br />
12 -<br />
(c) Reconciliation of net cost of services to net cash flows provided by/(used in)<br />
operating activities (Continued)<br />
01-02<br />
$’000<br />
00-01<br />
$’000<br />
Net cost of services (36,634) (30,444)<br />
Non-cash items:<br />
Depreciation expense 416 419<br />
Doubtful debt expense 35 54<br />
Resources received free of charge 52 32<br />
(Profit)/loss on sale of property, plant and equipment (7) (7)<br />
(Increase)/decrease in assets:<br />
Current receivables (III) (797) (15)<br />
Other current assets (1,120) (589)<br />
Increase/(decrease) in liabilities:<br />
Current payables (III) (114) (2,888)<br />
Current provisions 105 98<br />
Other current liabilities 888 3,359<br />
Non-current provisions (149) 128<br />
Other non-current liabilities<br />
Net GST receipts/(payments) (I) (64) (388)<br />
Change in GST in receivables/payables(II) 201 162<br />
Net cash provided by/(used in) operating<br />
activities<br />
i) This is the net GST paid/received, ie. Cash transactions<br />
ii) This reverses out the GST in accounts receivable and payable.<br />
(37,188) (30,079)<br />
iii) Note that ATO receivable/payable in respect of GST and receivable/payable in<br />
respect of the sale/purchase of non-current assets are not included in these<br />
items as they are not reconciling items.<br />
(d) At the reporting date WATC had fully drawn on all financing facilities, details of<br />
which are disclosed in the financial statements.<br />
19. NET PROFIT/(LOSS) ON DISPOSAL OF NON-CURRENT<br />
ASSETS<br />
01-02<br />
$<br />
00-01<br />
$<br />
Profit on sale of non-current assets<br />
Computer Equipment 7,031 3,392<br />
Furniture, Fittings and Equipment 70 4,093<br />
7,101 7,485<br />
Gross proceeds on disposal of assets<br />
Computer Equipment 7,106 3,645<br />
Furniture, Fittings and Equipment 70 4,093<br />
7,176 7,738<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
81<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
20. OPERATING LEASE COMMITMENTS<br />
<strong>The</strong> WATC leases its motor vehicle fleet from Matrix Finance Group Limited and<br />
rents property under lease to the Honourable Minister for Works. Total commitments<br />
for future vehicle leases and rentals at 30 June <strong>2002</strong> which have not been provided<br />
for in the accounts are as follows:<br />
30/06/<strong>2002</strong> 30/06/<strong>2001</strong><br />
$’000 $’000<br />
Due within one year 1,417 1,458<br />
Due later than one year and not later than two years 963 1,231<br />
Due later than two years and not later than five years 402 1,072<br />
Due later than five years 263 203<br />
21. COMMITMENTS – EXPENDITURE<br />
3,045 3,964<br />
As at 30 June <strong>2002</strong>, commitments which have not been provided for in the <strong>2001</strong>-<br />
<strong>2002</strong> accounts are as follows:<br />
<strong>The</strong>re are no significant capital commitments.<br />
30/06/<strong>2002</strong><br />
$’000<br />
30/06/<strong>2001</strong><br />
$’000<br />
Due within one year 5,253 5,165<br />
Due later than one year and not later than two years 3,300 352<br />
Due later than two years 2,800 322<br />
22. CONTINGENT LIABILITIES<br />
<strong>The</strong> WATC has a contingent liability under an agreement with Paul McNamee<br />
Enterprises Pty Ltd and Paul Francis McNamee in respect to the Hopman Cup, an<br />
annual international mixed teams tennis event. Under the agreement, the WATC is<br />
required to meet the first $2,000,000 of any loss or deficit.<br />
23. SUPPLEMENTARY FINANCIAL INFORMATION<br />
Write-offs<br />
Revenue and public and other property written off during<br />
the financial year.<br />
Losses<br />
Losses of public monies and other monies, and public and<br />
other property through theft, default or otherwise, written<br />
off.<br />
01-02<br />
$<br />
00-01<br />
$<br />
35,388 6,232<br />
- -<br />
Gifts<br />
Gifts of Public Property - -<br />
Debtors invoices totalling $34,295 raised prior to 30 June <strong>2002</strong>, were written off<br />
during the year against the Provision for Doubtful Debts.<br />
From time to time, the Commission enters into forward contracts for transactions<br />
in foreign currency. At June 30, <strong>2002</strong>, contracts totalling $526,000 for the payment<br />
of international office accommodation in Japan and for advertising campaigns in<br />
Singapore and Malaysia were awaiting settlement.<br />
30/06/<strong>2002</strong> 30/06/<strong>2001</strong><br />
$’000 $’000<br />
Forward Purchase Contracts 526 692<br />
Forward Selling Contracts - (239)<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
82<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
24. SEGMENT REPORTING ($’000)<br />
Operating Expenses<br />
National Marketing<br />
<strong>Tourism</strong> Information<br />
Distribution and Retail<br />
Booking Service<br />
International Marketing<br />
Event <strong>Tourism</strong><br />
Convention and<br />
Incentive Travel<br />
01-02 00-01 01-02 00-01 01-02 00-01 01-02 00-01 01-02 00-01<br />
Administration Expenses 486 467 776 1,001 1,230 1,240 254 317 1 -<br />
Advertising and Promotions 5,420 2,384 337 107 7,377 5,946 - - 3 -<br />
Contract for Service - - - - - - - - 1,010 1,015<br />
Event Operations - - - - - - 12,591 9,481 - -<br />
Grants, Tourist Facilities and<br />
Organisations<br />
601 - 1,665 - - - - - - -<br />
Office Accommodation 225 219 243 229 484 458 207 204 7 42<br />
Salaries, Wages and Superannuation 679 695 1,436 1,323 1,605 1,443 1,247 1,263 17 -<br />
Total Operating Expenses 7,411 3,765 4,457 2,660 10,696 9,087 14,299 11,265 1,038 1,057<br />
Revenues from Services<br />
Event Operations - - - - - - 4,758 4,414 - -<br />
Industry Contributions 1024 508 24 16 2,405 2,487 - - - -<br />
Other Revenue 36 1 753 784 55 265 19 1 4 45<br />
Total Revenues from Services 1,060 509 777 800 2,460 2,752 4,777 4,415 - 45<br />
Net Cost of Services 6,351 3,256 3,680 1,860 8,236 6,375 9,522 6,850 1,034 1,012<br />
Revenues from Government<br />
Appropriation 4,046 3,928 3,059 1,913 6,661 6,842 9,752 7,072 1,042 1,046<br />
Grants Received 2,000 - - - 1,000 - - - - -<br />
Resources Received Free-of-Charge<br />
Total Revenues from Government 6,046 3,928 3,059 1,913 7,661 6,842 9,752 7,072 1,042 1,046<br />
Change in net assets resulting from<br />
Operations<br />
(305) 672 (621) 53 (575) 467 230 222 8 34<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
83<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
24. SEGMENT REPORTING ($’000) (continued)<br />
This table follows on from the table<br />
on the previous page.<br />
Operating Expenses<br />
Strategic Market<br />
Intelligence<br />
<strong>Tourism</strong> Planning and<br />
Infrastructure<br />
<strong>Tourism</strong> Product and<br />
Industry Development<br />
Corporate and<br />
Operational Support<br />
Total<br />
01-02 00-01 01-02 00-01 01-02 00-01 01-02 00-01 01-02 00-01<br />
Administration Expenses 433 304 51 150 541 616 2,466 2,094 6,238 6,189<br />
Advertising and Promotions 7 3 (2) 10 175 149 290 381 13,607 8,980<br />
Contract for Service - - - 1,561 - 21 - - 1,010 2,597<br />
Event Operations - - - - - - - - 12,591 9,481<br />
Grants, Tourist Facilities and<br />
Organisations<br />
- - - - (22) 1,096 508 1,398 2,752 2,494<br />
Office Accommodation 42 42 7 5 221 203 220 273 1,656 1,675<br />
Salaries, Wages and Superannuation 278 217 243 261 1,002 1,028 1,928 2,153 8,435 8,383<br />
Total Operating Expenses 760 566 299 1,987 1,917 3,113 5,412 6,299 46,289 39,799<br />
Revenues from Services<br />
Event Operations - - - - - - - - 4,758 4,414<br />
Industry Contributions 36 2 - - - - 7 39 3,496 3,052<br />
Other Revenue 4 5 4 24 68 59 458 705 1,401 1,889<br />
Total Revenues from Services 40 7 4 24 68 59 465 744 12,655 9,355<br />
Net Cost of Services 720 559 295 1,963 1,849 3,054 4,947 5,555 36,634 30,444<br />
Revenues from Government<br />
Appropriation 632 631 435 537 1,938 3,114 4,446 6,386 32,011 31,469<br />
Capital Appropriation - - - 2,500 - - 1,004 2,000 1,004 4,500<br />
Grants Received - - - - - - - - 3,000 -<br />
Transfers to Other Agencies - - - - (2,956) - - - (2,956) -<br />
Transfers to Rottnest Island Authority (1,015) (2,075) (1,015) (2,075)<br />
Resources Received Free-of-Charge - - - - - - 52 32 52 32<br />
Total Revenues from Government 632 631 435 3,037 (1,018) 3,114 4,487 6,343 32,096 33,926<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
84<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong><br />
Change in net assets resulting<br />
from Operations<br />
(88) 72 140 1,074 (2,867) 60 (460) 788 (4,538) 3,482
Notes to and Forming Part of the Financial Statements<br />
25. FINANCIAL INSTRUMENTS DISCLOSURES<br />
(a) Interest Rate Risk Exposure<br />
<strong>The</strong> WATC’s exposure to interest rate risk, repricing<br />
maturities and the effective interest rates on<br />
financial instruments are:<br />
Weighted<br />
average<br />
effective<br />
interest<br />
rate<br />
Floating<br />
interest<br />
rate<br />
30 June <strong>2002</strong> % $’000<br />
Assets<br />
Fixed interest<br />
rate maturities<br />
1 Year<br />
or<br />
Less<br />
$’000<br />
1 to 5<br />
Years<br />
$’000<br />
Non<br />
Interest<br />
Bearing<br />
Total<br />
Over<br />
5<br />
Years<br />
$’000 $’000 $’000<br />
Cash Assets 4.82% 3,395 - - - 198 3,593<br />
Restricted cash<br />
Assets<br />
2.21% 152 - - - 152<br />
Receivables - - - - 4,683 4,683<br />
Total financial<br />
assets<br />
3,547 - - - 4,881 8,428<br />
Liabilities<br />
Payables - - - - 4,507 4,507<br />
Other Liabilities - - - - 232 232<br />
Interest Bearing<br />
Liabilities<br />
6.98% - 27 - - 27<br />
Provisions - - - - 3,632 3,632<br />
Total financial<br />
liabilities<br />
Net financial<br />
assets<br />
(liabilities)<br />
3,547<br />
- 27 - - 8,371 8,398<br />
(27)<br />
- - (3,490)<br />
(30)<br />
(b) Credit Risk Exposure<br />
All financial assets are unsecured.<br />
<strong>The</strong> carrying amounts of financial assets represent the WATC’s maximum exposure<br />
to credit risk in relation to those assets.<br />
(c) Net Fair Values<br />
<strong>The</strong> carrying amount of financial assets and financial liabilities recorded in the<br />
financial statements are not materially different from their net fair values, determined<br />
in accordance with the accounting policies disclosed in Note One to the financial<br />
statements.<br />
26. AFFILIATED BODY<br />
On 1 October 1998, the WATC entered into a contract for service with the Perth<br />
Convention Bureau Inc (PCB) for the provision of the Convention and Incentive<br />
Travel Output previously undertaken by a division of the WATC.<br />
<strong>The</strong> WATC controls the activities of the PCB to the extent that it provides the<br />
majority of the PCB’s funding and that the PCB has contracted to submit their annual<br />
operational plan and budget for approval by the WATC prior to implementation.<br />
During <strong>2001</strong>-<strong>2002</strong>, payments totalling $1,010,000 were made to the PCB.<br />
30 June <strong>2001</strong><br />
Financial assets 4.47 11,867 - - - 1,287 13,154<br />
Financial<br />
liabilities 7.18<br />
- 33 27 - 7,569 7,629<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
85<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Notes to and Forming Part of the Financial Statements<br />
27. REMUNERATION AND RETIREMENT BENEFITS OF<br />
MEMBERS OF THE ACCOUNTABLE AUTHORITY AND<br />
SENIOR OFFICERS.<br />
Remuneration of Members of the Accountable Authority<br />
<strong>The</strong> number of members of the Board, whose total fees, salaries, superannuation<br />
and other benefits received, or due and receivable, for the financial year, fall within<br />
the following bands:<br />
01-02 00-01<br />
No. No.<br />
$ 1 - $ 10,000 11 2<br />
$ 10,001 - $ 20,000 2 6<br />
$ 20,001 - $ 30,000 - 1<br />
$ 40,001 - $ 50,000 - 1<br />
$130,001 - $140,000 1 -<br />
$200,001 - $210,000 - 1<br />
01-02<br />
No.<br />
00-01<br />
No.<br />
<strong>The</strong> total remuneration of the members of the Accountable<br />
Authority is: 228 326<br />
<strong>The</strong> superannuation included here represents the superannuation expense incurred<br />
by WATC in respect to members of the Board.<br />
No members of the Board are members of the pension scheme.<br />
Remuneration of Senior Officers<br />
<strong>The</strong> number of Senior Officers other than the members of the Board, whose total<br />
fees, salaries, superannuation and other benefits for the financial year, fall within<br />
the following bands:<br />
01-02 00-01<br />
No. No.<br />
$ 1 - $ 10,000 - 1<br />
$ 10,001 - $ 20,000 - 1<br />
$ 70,001 - $ 80,000 - 2<br />
$ 90,001 - $100,000 1 2<br />
$100,001 - $110,000 4 2<br />
01-02<br />
$’000<br />
00-01<br />
$’000<br />
<strong>The</strong> total remuneration of senior officers is: 521 560<br />
Note:- Some members of the accountable authority were not employed for a full year in 2000-<strong>2001</strong>.<br />
<strong>The</strong> superannuation included here represents the superannuation expense incurred<br />
by WATC in respect of senior officers other than senior officers reported as members<br />
of the Board.<br />
No senior officers are members of the pension scheme.<br />
28. DIRECTION BY THE MINISTER<br />
Section 16 (2) of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission Amendment Act 1994<br />
requires that the text of any written directions from the Minister are to be included as<br />
a note to the Financial Statements. <strong>The</strong>re were no such directions received during<br />
<strong>2001</strong>- <strong>2002</strong>.<br />
29. EVENTS OCCURRING AFTER REPORTING DATE<br />
In accordance with <strong>Australia</strong>n Accounting Standard 8, the Statement of Financial<br />
Position and the Operating Statement have been prepared on the basis of conditions<br />
existing at reporting date. <strong>The</strong>re is no additional evidence of events or conditions<br />
occurring after balance date that may have an effect on the financial statements.<br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
86<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Audit Opinion<br />
To the Parliament of <strong>Western</strong> <strong>Australia</strong><br />
AUDITOR GENERAL<br />
WESTERN AUSTRALIAN TOURISM COMMISSION<br />
PERFORMANCE INDICATORS FOR THE YEAR ENDED JUNE 30, <strong>2002</strong><br />
Matters Relating to the Electronic Presentation of the Audited Performance Indicators<br />
This audit opinion relates to the performance indicators of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Commission for the year ended June 30, <strong>2002</strong> included on the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong><br />
Commissions web site. <strong>The</strong> Commission is responsible for the integrity of the <strong>Western</strong><br />
<strong>Australia</strong>n <strong>Tourism</strong> Commissions web site. I have not been engaged to report on the<br />
integrity of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commissions web site. <strong>The</strong> audit opinion<br />
refers only to the performance indicators named below. It does not provide an opinion on<br />
any other information which may have been hyperlinked to or from these performance<br />
indicators. If users of this opinion are concerned with the inherent risks arising from<br />
electronic data communications, they are advised to refer to the hard copy of the audited<br />
performance indicators to confirm the information included in the audited performance<br />
indicators presented on this web site.<br />
Scope<br />
I have audited the key effectiveness and efficiency performance indicators of the <strong>Western</strong><br />
<strong>Australia</strong>n <strong>Tourism</strong> Commission for the year ended June 30, <strong>2002</strong> under the provisions of<br />
the Financial Administration and Audit Act 1985.<br />
<strong>The</strong> Commission is responsible for developing and maintaining proper records and systems<br />
for preparing and presenting performance indicators. I have conducted an audit of the key<br />
performance indicators in order to express an opinion on them to the Parliament as required<br />
by the Act. No opinion is expressed on the output measures of quantity, quality, timeliness<br />
and cost.<br />
My audit was performed in accordance with section 79 of the Act to form an opinion based<br />
on a reasonable level of assurance. <strong>The</strong> audit procedures included examining, on a test<br />
basis, evidence supporting the amounts and other disclosures in the performance indicators,<br />
and assessing the relevance and appropriateness of the performance indicators in assisting<br />
users to assess the Commissions performance. <strong>The</strong>se procedures have been undertaken to<br />
form an opinion as to whether, in all material respects, the performance indicators are<br />
relevant and appropriate having regard to their purpose and fairly represent the indicated<br />
performance.<br />
<strong>The</strong> audit opinion expressed below has been formed on the above basis.<br />
Audit Opinion<br />
In my opinion, the key effectiveness and efficiency performance indicators of the <strong>Western</strong><br />
<strong>Australia</strong>n <strong>Tourism</strong> Commission are relevant and appropriate for assisting users to assess<br />
the Commissions performance and fairly represent the indicated performance for the year<br />
ended June 30, <strong>2002</strong>.<br />
D D R PEARSON<br />
AUDITOR GENERAL<br />
October 4, <strong>2002</strong><br />
W A<br />
4 th Floor Dumas House 2 Havelock Street West Perth 6005 <strong>Western</strong> <strong>Australia</strong> Tel: 08 9222 7500 Fax: 08 9322 5664<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
87<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>
Certification of Financial Statements<br />
CERTIFICATION OF FINANCIAL STATEMENTS FOR THE YEAR<br />
ENDED 30 JUNE <strong>2002</strong><br />
<strong>The</strong> accompanying financial statements of the <strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
have been prepared in compliance with the provisions of the Financial Administration<br />
and Audit Act 1985 from proper accounts and records to present fairly the financial<br />
transactions for the year ended 30 June <strong>2002</strong> and the financial position as at<br />
30 June <strong>2002</strong>.<br />
At the date of signing, we are not aware of any circumstances which would render the<br />
particulars included in the financial statements misleading or inaccurate.<br />
Alan Mulgrew<br />
CHAIRMAN<br />
Laurie O’Meara<br />
DEPUTY CHAIRMAN<br />
Richard Wilson<br />
EXECUTIVE DIRECTOR,<br />
CORPORATE AND BUSINESS SERVICES<br />
PRINCIPAL ACCOUNTING OFFICER<br />
30 August <strong>2002</strong><br />
W A<br />
<strong>Western</strong> <strong>Australia</strong>n<br />
<strong>Tourism</strong> Commission<br />
<strong>Western</strong> <strong>Australia</strong>n <strong>Tourism</strong> Commission<br />
88<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>02<br />
Wester n <strong>Australia</strong>n <strong>Tourism</strong> Commission <strong>Annual</strong> <strong>Report</strong> <strong>2001</strong>-<strong>2002</strong>