2002 - 2003 Annual Report - Tourism Australia

Australian Tourist 

Commission 

ANNUAL REPORT 2002/2003 

AUSTRALIAN TOURIST COMMISSION ANNUAL REPORT 2002/2003

The Hon J Hockey MP 

Minister for Small Business and Tourism 

Parliament House 

Canberra ACT 2060 

October 2003 

Dear Minister, 

I have great pleasure in presenting 

the 35th Annual Report of the 

Australian Tourist Commission for 

the year ended 30 June 2003. 

Yours sincerely, 

Nick Evers Chairman 

Contact officer 

For more information about this annual report please contact: 

Public Affairs Manager 

Public Affairs Department 

Australian Tourist Commission 

GPO Box 2721 

Sydney NSW 2011 

Internet 

You can access this report through the Commission’s industry website at www.atc.australia.com 

Additional information sources 

2002-2003 Portfolio Budget Statements 

2002-2003 Portfolio Additional Estimates Statements 

Australian Tourist Commission Corporate Plan 2002-2003 

Australian Tourist Commission Annual Operating Plan 2002-2003 

Australian Bureau of Statistics, Overseas Arrivals & Departures, 3401.0 

Tourism Forecasting Council (2003), April 2003 Forecasts, Department of Industry Tourism and 

Resources, Canberra 

Freedom of Information 

The ATC is a prescribed authority under the Freedom of Information Act 1982. 

No FOI requests were received by the Commission during the review period. 

The contact officer for FOI requests from the ATC is: 

Risk Manager 

Australian Tourist Commission 

GPO Box 2721 

Sydney NSW 2011 

Front cover: Sand dunes, Merty Merty, SA 

ISSN: 0728 - 7143 

© Commonwealth of Australia 2003 

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by 

any process without prior written permission from the Commonwealth available from the Department of Communications, 

Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to the 

Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology 

and the Arts, GPO Box 2154, Canberra ACT 2601 or posted at http://www.dcita.gov.au/cca.

Contents 

2 Principles 

4 Highlights 

6 Objectives and Outcomes 

8 Chairman’s and Managing Director’s Report 

10 Report of Operations 

12 Eastern Hemisphere 

13 Japan 

14 South East Asia 

20 North and North East Asia 

26 Western Hemisphere 

27 The Americas 

28 United Kingdom 

29 Europe 

33 Middle East 

34 New Zealand 

36 Sydney Office Reports 

38 Hemispheres 

39 Marketing Development 

40 Advertising and Design 

41 Market Insights 

42 International Media 

43 Segment Development 

46 Trade Events 

48 Business Tourism 

49 Online Programs Management 

50 Organisational Development 

53 Corporate Services 

55 Corporate Governance 

57 Board Members 

60 Management and Organisation Structure 

61 Ecologically Sustainable Development 

62 Statistical Review 

64 Financial Reports 

66 Independent Audit Report 

67 Statement by Directors 

68 Statement of Financial Performance 

69 Statement of Financial Position 

70 Statement of Cash Flows 

71 Schedule of Commitments 

72 Schedule of Contingencies 

73 Notes to and forming part of 

the Financial Statements 

93 Glossary of Terms 

94 Index 

95 ATC Addresses

Principles 

OUR ROLE 

The Australian Tourist Commission (ATC) is Australia’s international 

marketing authority and is responsible for promoting Australia overseas 

to attract visitors for business and leisure travel. 

Working with the private sector and State and Territory Tourism 

Organisations, the ATC’s marketing activities in over 20 countries include 

television, print and online advertising, public relations and media programs 

and the co-ordination of Australian industry participation in international 

trade events.The ATC also undertakes market research into consumer 

travel behaviour and provides input into Government and industry policies 

that affect tourism. 

The ATC’s Head Office is based in Sydney, with overseas offices in Los 

Angeles, London, Frankfurt, Osaka,Tokyo, Hong Kong, Bangkok, Seoul, 

Singapore,Taipei, Shanghai, Kuala Lumpur and Auckland. 

OUR MISSION 

We market Australia internationally to create a sustainable advantage 

for our tourism industry for the benefit of all Australians. 

OUR VISION 

To be respected by our stakeholders for the value we add to 

inbound tourism. 

2

OUR OBJECTIVES 

The Australian Tourist Commission is a Statutory Authority established 

under the Australian Tourist Commission Act 1987. Its task is to 

promote Australia internationally as a tourist destination. 

Under the Act, the Commission’s principal objectives are to: 

• Increase the number of visitors to Australia from overseas; 

• Maximise the benefits to Australia from overseas visitors; and 

• Work with other relevant agencies to promote the principles of 

ecologically sustainable development and raise awareness of the social 

and cultural impacts of international tourism in Australia. 

The Commission is governed by a ten member Board which reports to 

the Federal Minister for Small Business and Tourism, 

the Hon Joe Hockey MP. 

OUR VALUES 

Openness 

An open environment underpinned by trust and respect for one 

another. One where people are encouraged to give and receive 

feedback and where there is transparency in our decision-making 

and business practices. 

Teamwork & Shared Leadership 

We work effectively in teams with individuals actively involved and 

taking responsibility for performance, problem-solving and harnessing 

the power of the team to achieve outstanding results. 

Learning 

We aspire to be an organisation where decisions are based on analysis 

and insight, where we listen and consult, and are prepared to admit 

mistakes and learn from them. 

3

Highlights 

2002/2003 

Overseas visitor arrivals 

There were 4,655,800 visitors 

to Australia in 2002/03, a 

decrease of two per cent over 

the previous year. Given the 

global downturn in international 

and long-haul travel this is a good 

result and shows the beginnings 

of recovery following a year of 

ongoing difficulties for the 

tourism industry. 

Financial summary 

The Commission’s total revenue 

for the 2002/03 year was 

AUD$121.9 million. Government 

revenue was $99.9 million and 

revenue from cooperative 

industry activities and other 

sources was $22 million. 

Publicity generated by the 

Visiting Journalists Program 

The ATC hosted 1,027 print and 

broadcast journalists to Australia 

throughout the year through 

the Visiting Journalists Program, 

generating editorial coverage 

with a value in excess of 

AUD$1.4 billion. 

Tourism Ambassadors 

Program 

The ATC’s Tourism Ambassador 

program, which began last year 

with Ian Thorpe in Japan, gained 

momentum this year with the 

engagement of Megan Gale to 

promote Australia in Italy and 

five-time world champion surfer, 

Layne Beachley, to entice the 

youth market from the US. 

The ATC is currently working with 

potential new candidates who 

could fly the flag for Australian 

tourism in other markets. 

6,000,000 

5,000,000 

4,000,000 

3,000,000 

2,000,000 

1,000,000 

0 

4.7 5.1 4.8 

4.6 

1999/00 

2000/01 2001/02 2002/03 

Overseas Visitors 

Source: Australian Bureau of Statistics, Overseas 

Arrivals and Departures 3401.0 

4

australia.com 

australia.com delivered over 

42 million pages to consumers 

globally in 2002/03, an increase 

of 8 per cent on 2001/02. 

In March 2003 australia.com won 

the Travel & Tourism Web Award 

for Best Tourist Board against a 

field of international sites.The 

award was presented at the 

British Travel Trade Fair. A key 

feature of the site was the 

Ozplanner, a new interactive 

tool which was launched in the 

UK to help first-time visitors in 

planning their holiday to Australia. 

Megan Gale 

Award winning campaigns 

The Celebrate Australia 2003 

promotion was awarded Gold 

for the ‘Best Tourism Campaign’ 

and ‘Best Event Marketing 

Campaign’ at the Promotion 

Marketing Awards of Asia 2003 

(PMAA 2003). 

Recovery Strategy 

Marketing programs, which aimed 

to rebuild inbound tourism to 

Australia following the Iraq conflict 

and SARS, exceeded targets. 

In New Zealand recovery 

campaigns delivered 35,000 

bookings. Campaigns in the US 

delivered 18,500 bookings, and 

17,500 were received as a result 

of campaigns in the UK. 

Layne Beachley 

5

Objectives 

& Outcomes 

2002/2003 

STATUTORY OBJECTIVES 

To increase the number of visitors 

to Australia from overseas 

PERFORMANCE INDICATORS 

• Exceed Tourism Forecasting Council (TFC) forecasts 

for the number of visitor arrivals. 

• Maintain or increase Australia’s market share in 

priority countries where the ATC is actively 

marketing. 

• Percentage growth in arrivals into Australia compared 

to the percentage growth in 

international tourism. 

To maximise the benefits to Australia 

from overseas visitors including lifting 

geographic dispersal of visitation to 

regional Australia 

• Increase visitor expenditure yield in Australia by 

overseas visitors. 

• Exceed TFC forecasts for total visitor nights in 

Australia by overseas visitors. 

• Exceed TFC forecasts for tourism export earnings. 

• Increase the geographic dispersal of 

overseas visitors. 

• Increase employment from inbound tourism. 

To work with other relevant agencies 

to promote the principles of 

ecologically sustainable development 

and to seek to raise awareness of 

the social and cultural impacts of 

international tourism to Australia 

• Level of activity with other relevant agencies on 

the promotion of ecologically sustainable 

development principles. 

• Raise community awareness of the social and cultural 

impacts of international tourism. 

6

OUTCOMES 

• There were 4,655,800 visitors to Australia in 2002/03, a decrease of two per cent.The Tourism Forecasting 

Council (TFC) forecasts were revised downwards over the year due to the global downturn in long-haul travel. 

In April 2002, the TFC forecast 5.4 million visitors during 2003, then twice revised the forecast down to 

5.0 million in December 2002 and to 4.6 million in May 2003. 

• 2002/03 market share information is not yet available. 

• According to preliminary data collected by the World Tourism Organisation (WTO), international tourist arrivals 

increased by three per cent in 2002. Growth was generated predominantly in short-haul travel, with long-haul 

travel severely affected by a difficult operating environment in the air transport industry. WTO data for 

2002/03 is not yet available. 

• The average and total trip expenditure in Australia increased by two per cent in nominal terms for the year 

ended 31 March 2003. Data for 2002/03 is not yet available. 

• A total of 117.8 million visitor nights were spent in Australia during the year ended 31 March 2003. Data to the 

end of June 2003 is not yet available. In April 2002, the TFC forecast 130.3 million visitor nights during 2003 and 

then twice revised the forecast down to 116.2 million in December 2002 and to 114.2 million in May 2003. 

• Real growth in direct tourism export earnings of two per cent was achieved in 2002. Data for 2002/03 is not 

yet available. In April 2002, the TFC forecast six per cent growth in 2002/03, then revised the forecast down to 

one per cent growth in December 2002. 

• In the year ended 31 March 2003, 20 per cent of visitor nights were spent outside the major destinations: 

Sydney, ACT, Melbourne, Brisbane, Gold Coast,Tropical North Queensland, Adelaide and Perth, down slightly 

from 21 per cent in the previous year. Data for 2002/03 is not yet available. 

• The tourism industry directly employed 549,000 people in 2001/02, a marginal decrease on 2000/01. 

Employment figures for 2002/03 are not yet available. 

• The ATC participated in the Sustainable Tourism Roundtable established in 2001/02 with the Department 

of Industry,Tourism and Resources (DITR). 

• The ATC has participated in discussions with Environment Australia (incorporating the Australian Heritage 

Commission); DITR; the Indigenous Tourism Leaders Group; the Bureau of Tourism Research; Cooperative 

Research Centre for Sustainable Tourism; Ecotourism Australia and Green Globe 21.The Commission also 

joined the National Tourism and Heritage Taskforce of the Environment Protection and Heritage Council. 

• Information on the ATC’s position on sustainable tourism, with links to agencies and resources was added 

to the ATC’s industry website, ATC Online. 

• The ATC worked with Ecotourism Australia to profile accredited ecotourism product at ATE. 

• A review of the ATC’s environmental management systems and practices was completed in June 2003. 

• Consumer information on responsible tourism was added to the ATC’s consumer website, australia.com. 

7

Chairman and Managing Director’s Report 

The year 2002/03 presented the ATC and the tourism 

industry with unique challenges and opportunities. While 

still in the shadow of the terrorist assault in New York on 

September 11, 2001, we experienced the terrorist attack 

in Bali, war in Iraq and SARS. Australia lost its innocence 

and its relative isolation and, as a consequence, we too 

were impacted by the resultant wariness of the travelling 

public and the inevitable downturn in tourism across 

the globe. In all the circumstances, it was a remarkable 

achievement to attract 4.7 million international visitors 

to Australia in 2002/03, a decline of only 2 per cent on 

the previous year. 

This result was neither accidental nor coincidental.The 

ATC, in partnership with the tourism industry and assisted 

by the Federal Government, instigated a recovery strategy 

for Australia that began with the monitoring of the global 

situation and later developed into the rollout of specific 

campaigns to stimulate travel. 

We postponed our marketing programs in all markets 

and – using professional research, advice from ATC offices 

and close collaboration with our industry partners – 

reassessed where our funds would have the greatest 

impact in the short term. Given the fluid global situation, 

we needed to be as flexible as possible. When the time 

was right we initiated our recovery strategy in those 

markets that were most likely to deliver returns of 

substance and to do so sooner rather than later. Phase 

one of the strategy was aimed at stimulating travel in 

markets such as New Zealand and Japan where consumer 

confidence had improved.This was followed by reintroducing 

campaigns in the United States, the United 

Kingdom and Korea. 

The ATC was provided with an additional $10 million 

in funding for recovery strategies from the Federal 

Government which the ATC leveraged an additional 

$10 million. In total, we allocated $33 million to marketing 

in ten carefully chosen countries with the aim of 

stimulating demand for travel to Australia.These recovery 

strategies provided the first step in building a stable 

platform from which we could move forward. 

A strong brand 

The last 18 months have demonstrated the vulnerability 

and volatility of international tourism and the critical 

importance of Australia sustaining consistent, distinctive and 

compelling messages to consumers across all key markets. 

The professionalism of our marketing strategies needs 

to reflect the increasing discernment of international 

travellers and the ever-increasing competitiveness of 

other destinations. 

It is against this background that we have embarked on 

perhaps the most important current project for Australian 

inbound tourism – the refreshing of Brand Australia. It 

has become increasingly evident that we need an even 

stronger, more definitive image of our country in tourism 

promotions across all our markets.The culmination of this 

work will be launched in 2003/04 and will redefine all our 

marketing activities in what we believe will be innovative 

and compelling ways. 

More than advertising 

A focus on new and innovative ways to promote our 

country overseas has been a priority over the past year. 

The increased competition from other destinations, as 

well as ever-evolving consumer needs and interests, has 

demanded that the ATC continue to review and revise 

its promotional activities. 

An example of this process has been the development of 

the ATC’s Australian Tourism Ambassador program which 

gained further momentum this year, helping to personalise 

and diversify our image in key markets. Beginning last year 

with Ian Thorpe in Japan, the program was extended in 

2002/03 to include popular Italy-based model Megan Gale 

for the Italian market and five-time world champion surfer, 

Layne Beachley, to entice the youth market from the US. 

Further such appointments will be made in 2003/04. 

The expansion of the Celebrate Australia promotion 

beyond Singapore to Hong Kong and China has also 

delivered benefits for the industry, generating promotion 

and awareness of Australia. 

One of the most enduring and still one of the most 

potent programmes conducted by the ATC is the Visiting 

Journalists Programme and it merits recording here that 

it continues to earn its way with spectacular results by 

way of positive media publicity around the world. Last 

year, the ATC hosted 1,027 print, broadcast and television 

journalists from around the world and what they 

produced upon their return – which was overwhelmingly 

positive – generated publicity to an estimated value of 

8

$1.4 billion.The state tourism organisations, along with 

the tourism industry across Australia, were again most 

generous in their support of this important program. 

Partnerships 

A positive, collaborative relationship with the Australian 

tourism industry is central to the activities of the ATC. 

This partnership continues to form a key platform for all 

our activities, from trade shows to marketing programs, 

with industry providing an additional $22 million for 

marketing activities across the globe in 2002/03. 

The ATC increased its commitment to consult and share 

insights with the tourism industry this year, with a national 

road show and forums being held with key players to gain 

their input into our strategic direction. 

Extensive consultation with industry on where the ATC 

makes its greatest impact to inbound tourism also allowed 

for the development of new Key Performance Indicators 

for the Commission.This resulted in a set of corporate 

objectives being developed that would support the 

industry’s key priorities, such as increasing arrivals, 

improving yield and encouraging dispersal. 

Partnerships with government agencies are also being 

developed with the Commission signing memoranda 

of understanding with Austrade and the Department 

of Education. 

Strategic direction for the future 

In tandem with the implementation of short term 

strategies to lead recovery, the Commission has also 

developed a strategy for the longer term, which will 

ensure it delivers the greatest return for the Australian 

tourism industry. 

The key elements of this strategy are based on better 

understanding our consumers, prioritising our markets, 

keeping ahead of competitors and making the most of 

our resources. External factors that continue to present 

challenges for our industry include increased competition 

from other destinations, inbound aviation capacity and 

economic factors. 

Our strategy for 2003 and beyond is to concentrate on 

the 20 markets that deliver 90 per cent of all international 

arrivals to Australia. Better prioritisation will allow the 

ATC to focus resources in key markets and allocate 

funds to key projects, such as new research and brand 

development.This will help build a profitable and 

sustainable future for our industry. Simultaneously, we are 

looking at ways to better inoculate ourselves against future 

risks so that, when and if unforeseen challenges do arise, 

we have the strength and resilience to weather them. 

In May 2003, the Federal Government released a medium 

to long-term strategy for the tourism industry (Green 

Paper) which presented options for a 10 year plan to steer 

the Australian tourism industry through new circumstances 

as they arise.We look forward to working with the 

industry to progress this draft strategy to its next stage. 

While our industry will continue to face many challenges, 

we remain confident that the ATC, in partnership with 

industry and government, will see the ongoing development 

of a strong and prosperous inbound industry. 

We are most appreciative of the support the Federal 

Government continues to extend to the ATC and to the 

industry. In this context, we are especially grateful to the 

relevant Federal Ministers, the Hon. Ian Macfarlane and 

the Hon. Joe Hockey. 

The support extended by the state tourism authorities 

has, as always, been strong and readily forthcoming. 

We are most appreciative. 

The Australian tourism industry – especially those who 

have been actively involved in the inbound sector – has 

been strong in its support and generous with its advice 

during what has been a difficult period. 

Finally, this most challenging year would have been much 

more demanding had it not been for the strong 

commitment and enthusiasm of the ATC board of 

directors and the entire management team, in Australia 

and overseas. 

Nick Evers 

Chairman 

Ken Boundy 

Managing Director 

9

10 

Report of Operations

Eastern 

Hemisphere 

Overview 

The Eastern Hemisphere markets include Japan, South East Asia – covering Indonesia, Malaysia, Singapore, 

and Thailand, and North East Asia – covering Hong Kong, China,Taiwan, Korea and The Philippines. 

While these markets have proved to be volatile, they have recovered well, despite the challenges created 

by international conflict and SARS.The first eight months of the year from July to February showed positive 

results and indicated that consumer confidence in travel was starting to rebound following the effects of 

September 11 the previous year. 

High repeat visitation from Asia (not including Japan) means that the ATC must communicate new reasons 

to visit, which was achieved through presenting varied holiday options such as soft adventure, cosmopolitan 

experiences and selling Australia as a ‘short break’ destination. 

Once the signs appeared that consumers were again ready to travel, the ATC launched an extensive 

recovery campaign in Singapore, Hong Kong, Korea, Malaysia, China,Taiwan and Japan under the theme 

of ‘Australia – You’re Welcome’. 

This activity comprised public relations, destination branding and promotions, and positioned Australia 

as a friendly and welcoming country. 

A key development in this region has been the strong engagement with industry and government with the 

formation of formal working groups.These include the China Joint Monitoring Group, the Japan Tourism 

Implementation Group and the Australian Tourism Export Council Japan and Asia Policy Panels. 

Business tourism, largely based on promoting Australia as a destination for employee incentive programs, 

was a strong segment for Australia in Thailand and Taiwan. A range of promotions and trade activities were 

conducted to increase awareness of Australia among corporations in these countries. 

Airline capacity remained a key issue throughout the year, with airlines reducing flights from the region and 

overall seat availability from March-June. A key challenge facing Australia will be to build back these services 

in line with demand. Charter operators from Japan and Singapore will continue to provide some respite 

from capacity shortfalls during peak periods. 

The year ahead 

Industry relationships remain critical to the ATC’s success. In the year ahead, the ATC will continue to work 

closely with operators and airlines on promotional activities and seek to improve our servicing of the 

industry. 

As airline capacity to Australia from Japan is restored by the end of 2003, Australia can expect incremental 

growth towards the end of the year and beyond. 

12

Japan 

Overview 

Visitor arrivals from Japan remained constant during 2002/03 with a total of 658,600 recorded 

for the year. 

Before SARS, visitor arrivals from Japan had been tracking well and were up by 6.2 per cent as 

at December 2002 compared with the previous year.This was largely due to the strong growth 

experienced in the last quarter of 2002, which were in contrast to the post September 11 

period the year before. 

The momentum continued in January and February 2003, however, the threat of a war in 

Iraq and international terrorist activity caused great concern to the Japanese travelling public, 

resulting in a downturn in arrivals not only to Australia, but to all overseas destinations. 

Perceptions of Australia were still positive, viewed by many as a safe haven.Australia’s overall 

market share and general attractiveness has improved at a time of great uncertainty within 

the Japanese market. 

Highlights and activities 

• The JAL New Style Australia Campaign 

targeting the Japanese young female 

segments was extended for the third 

year in 2002/03. In addition, JAL 

launched a new national multi media 

campaign aimed at creating a greater 

sense of confidence in the Japanese 

travelling public.The AUD$25 million 

JAL FLY JAL campaign featured only 

two destinations: Hawaii and Australia. 

JAL also selected Australia as the 

destination of choice for their annual 

national newspaper media 

familiarisation which generated more 

than AUD$1.3 million in equivalent 

advertising value. 

• Ian Thorpe continued in his capacity as 

Australian Holiday Ambassador to 

Japan during the year. Ian was featured 

in national newspaper advertisements, 

railway station billboards, online 

promotions, a nationally televised 

90 minute television program, and was 

the face of Australia’s post SARS/IRAQ 

recovery campaign. 

• The Japan Australia Advisory Group 

(JAAG) was formed, with high level 

representation from the major travel 

companies in Japan who account for 

about 70 per cent of all Japanese travel 

to Australia. A major initiative, Vision 

One Million, which has the objective of 

attracting one million visitors per annum 

from Japan to Australia by 2010, was 

successfully launched in Tokyo and 

endorsed by the members of JAAG, 

the Australian Ambassador, STOs and 

the airlines.This is a first for a National 

Tourist Office in Japan. 

• The ATC, in conjunction with the 

STOs, Japan Airlines, Qantas and the 

Australian Embassy, founded Club Oz 

groups in Tokyo, Osaka, Nagoya and 

Fukuoka.The aim was to develop an 

ongoing dialogue with the senior 

managers of key industry partners in 

Japan. OZNET groups, which have a 

similar purpose to Club Oz, but involve 

middle management of the agencies, 

have also been organised in Tokyo, 

Osaka, Nagoya, Fukuoka and Sapporo. 

• The arrival of Australian Airlines in 

October 2002, provided direct flights to 

Australia from Nagoya and Osaka.To 

capitalise on this opportunity, the ATC 

partnered with Qantas and Australian 

Airlines on campaigns targeting the 

mature female market. ATC also 

partnered with Qantas and Tourism 

Victoria on the launch of a new Tokyo- 

Melbourne daily service in July 2002. 

• The ATC continues to expand its 

use of technology in this market, 

with upgrades to content on the 

ATC’s Japanese language website 

for consumers, www.australia.jp, a 

monthly email magazine (which 

has around 30,000 subscribers) and 

the development of a specialised 

school excursion website for the 

education market. 

• A delegation of 64 Australian suppliers 

visited four key source market centres 

in Japan in February 2003 for the Japan 

Australia Mission 2003. Over the five 

day event, Australian sellers met with 

up to 700 buyers and key media in 

Fukuoka, Nagoya, Osaka and Tokyo. 

The JAL FLY JAL campaign featured 

Australia as a holiday destination 

13

South East Asia 

Overview 

Offices in the South East Asia region are responsible for marketing in Malaysia, Singapore, 

India,Thailand and Indonesia. 

Visitor arrivals from South East Asian countries recorded mixed results across the region as a result 

of the Bali bombing, Iraq war and SARS. However, there were signs of recovery once the World Health 

Organisation (WHO) lifted travel advisories for SARS affected countries in late May. 

Major marketing activities were initiated in Singapore and Malaysia throughout the year but some were 

postponed or cancelled in April/May.Throughout this period the ATC supported the region by regularly 

communicating information from official Australian health authorities, reinforcing the message that 

Australia was not affected by SARS and continued to welcome all international visitors. 

Airline capacity from Singapore, Malaysia and Thailand continued to present challenges.The late booking 

patterns by consumers from these markets compared to the long-haul European traveller who book 

further in advance, resulted in a shortage of seats at certain times of the season. 

Business tourism was the key focus for Thailand.With the strong economy, a number of companies 

are now using travel to Australia as a reward for their staff and clients. 

Targeting the high socio-economic sector continued in India through public relations including 

the Visiting Journalist Program and media advocacy. 


In an effort to focus on those countries where the ATC can make the most impact and deliver the best 

returns, a rationalisation of the ATC’s market presence was undertaken for the 2003/04 financial year. 

In Singapore the ATC will be identifying and focusing on those segments that present the strongest growth 

potential. In India activities will focus on public relations and travel industry development through the Aussie 

Specialist Program.The focus in Thailand and Malaysia will be on providing travel trade support through the 

Aussie Specialist Program and targeted servicing of the industry. 

The ATC will have no direct presence in Indonesia, but will continue to service this market through other 

channels such as the Visiting Journalists Program. 

14

India 

Australia received a total of 41,200 visitors from India in 2002/03, a decline of 13 per cent 

over the previous year. 

The ATC’s marketing strategy for India was aimed at capturing the Indian traveller at the top end 

of the market, targeting upscale family groups, honeymooners and the incentive market.The focus was 

on promotion and media activities including celebrity endorsement on prime time television dramas 

and leading lifestyle magazines, as well as online promotions and consumer roadshows.Another key 

objective in the market was to establish a solid distribution network via the development of the 

Aussie Specialist Program. 

Arrivals in the first months of 2002/03 were impacted by the temporary closure of the Australian 

visa office due to the India/Pakistan conflict. 


• In January 2003, the ATC and the 

Australian industry hosted India’s 

number one rated TV drama series 

Kyunki Saas Bhi Kabhi Bahu Thi and its 

associated production Kasaauti Zindagii 

Kay.This included five minutes on 

Australia per episode over a 16-week 

period – the equivalent of AUD$40 

million in publicity.This was the first 

time that an Indian drama series had 

been filmed abroad. 

• The ATC hosted prominent Indian 

celebrities on a familiarisation to 

Melbourne and the Gold Coast in 

November 2002. As a result of the visit, 

Australia appeared on the front cover 

of Femina, India’s leading women’s 

magazine and generated editorial 

features worth AUD$1 million.Three 

press trips by Indian media visiting 

the Blue Mountains, Hunter Valley and 

Gold Coast, resulted in editorial 

coverage with an approximate value of 

AUD$243,000.The ATC also hosted 

two celebrity writers to the Melbourne 

Food Festival resulting in articles in 

leading Indian daily newspapers and 

magazines with an equivalent value 

of AUD$400,000. 

• In August 2002, the ATC in association 

with Emirates Airlines hosted a 

travelogue Musafir Hoon Yaroon on the 

leading entertainment channel Star Plus. 

The five episodes of the show featured 

the tourist attractions of Perth, Cairns 

and the Great Barrier Reef, and 

generated publicity worth more than 

AUD$6 million. 

Femina, India’s 

leading women’s 

magazine, ran a 

prominent cover 

story on Australia 

• Recruitment of Aussie Specialist agents 

in India exceeded target by 37 per 

cent.There is now a total of 137 Aussie 

Specialists across India, and interest in 

the program is one of the highest in 

the region. 

Aussie Specialist Program The Aussie Specialist Program was developed to 

educate retail travel agents in overseas markets on Australian travel products and 

services.These ‘Aussie experts’ undertake extensive training and familiarisations 

conducted by the ATC and State and Territory Tourism Organisations, and have 

an in-depth understanding of Australia and Australian tourism product.Various 

resources are distributed to these agents on a regular basis to enhance their 

product knowledge and to motivate them to sell Australia. 

15

Indonesia 

Australia received a total of 86,900 visitors from Indonesia in 2002/03, a decline of 8 per 

cent over the previous year. 

The Bali terrorist incident impacted on airline capacity and as a result arrivals declined 

during the peak holiday season. 

With stronger economic growth, the interest in incentive travel has increased among local 

Indonesian companies and Australia is a favoured destination. In 2002/03 contacts were 

developed with influential corporate organisations to capitalise on this trend. 


• Two drama series showcasing Perth 

and Melbourne were filmed with Indika 

Film Entertainment and Indonesia 

Diva Drama. 

• A fashion shoot by leading women’s 

magazine, Femina, was hosted in 

Queensland and Victoria in 

November 2002. 

• A total of 27 travel agents registered 

for the Aussie Specialist Program in 

Indonesia, and training was conducted 

for 240 agents across four 

Indonesian cities. 

Celebrate Australia Celebrate Australia is a joint 

initiative between the Australian Tourist Commission, the 

Australian Trade Commission and the Australian High 

Commissions in Singapore, Malaysia and Hong Kong.The 

promotion features a month long celebration of Australian 

film, food, wine, fashion, arts & culture, education and 

contemporary lifestyle. 

More than 30 events, ranging from fashion shows, 

performing arts, film festivals, arts and cultural exhibitions, 

and wine and dine promotions are staged to showcase 

Australian style, creativity and capabilities. 

The Celebrate Australia initiative provides an excellent 

opportunity to promote Australia 

as a destination for business, 

education and leisure travel. 

Celebrate Australia promotions 

were held in Singapore, 

Hong Kong, Malaysia and China. 

16

Malaysia 

Australia received a total of 142,400 visitors from Malaysia in 2002/03, a decline of 

8 per cent over the previous year. 

Events such as the Bali bombings and SARS, coupled with airline capacity limitations, 

impacted on visitation numbers. 

The ATC aimed to increase Australia’s profile in this market through a series of marketing 

activities which included events, advertising and publicity.The industry supported the 

Aussie Specialist Program with an increase in the number of registered agents over the 

12 month period. 


• A sponsorship deal with the Astro 

cable television network saw Australia 

featured on Malaysian television for 

13 weeks on the Chinese language 

channel Wah Lai Toi. The program was 

also promoted on local television 

station Channel NTV7 for eight weeks 

in April and May 2003. 

• The ATC worked with State 

and Territory partners to publish a 

16-page supplement featuring the 

Six Senses of Travel – the five senses 

plus a ‘sense of freedom’ offered 

in Australia.The supplement was 

published in the leading English 

language newspaper Star. 

• The first phase of the Rediscover 

Australia campaign was launched 

in September 2002 targeting the 

Chinese-speaking group traveller 

market, including the family segment. 

• In 2002/03 the number of Aussie 

Specialist agents increased by 

11 per cent to a total of 106 agents 

and 35 companies across Malaysia. 

The Rediscover Australia print campaign 

targeted the Chinese-speaking group 

traveller in Malaysia 

17

Singapore 

Australia received a total of 261,600 visitors from Singapore in 2002/03, a decline of 

12 per cent over the previous year. 

Singapore is Australia’s largest source market for arrivals from Asia (excluding Japan) and 

has a high level of repeat visitation.This presents unique challenges in the market and 

activity is focused on finding creative ways to entice visitors to keep returning. 

A number of initiatives were launched during the year to maintain interest in the 

destination and drive visitors to discover new regions across the country. 


• The Celebrate Australia 2003 promotion 

was awarded Gold for the ‘Best Tourism 

Campaign’ and ‘Best Event Marketing 

Campaign’ at the Promotion Marketing 

Awards of Asia 2003 (PMAA 2003). 

• The Discover Australia campaign, 

launched in September 2002, was 

designed to give Singaporeans new 

reasons to visit Australia.The campaign 

aimed to drive traffic and interest 

during the low season. A television, 

newspaper and magazine advertising 

campaign was supported by a public 

relations program, including placement 

of editorial in key media including 

The Straits Times and Lianhe Zao Bao. 

The campaign resulted in a total of 

1,591 bookings between February 

and April 2003. 

• Extending the Discover Australia theme, 

the ATC in conjunction with the 

STOs initiated and co-produced a 

nine-episode reality television game 

in prime-time on Singapore’s highest 

rating channel, Channel 8.The show was 

one of the highest rating programs for 

Singapore and the biggest production 

ever undertaken by Singapore’s 

MediaCorp TV and a National Tourist 

Organisation.The program generated in 

excess of $AUD25 million in publicity 

value over the two-month period. 

• The Aussie Specialist Program received 

strong support from key travel agency 

partners, with 12 new travel companies 

registering for the program in 2002/03. 

Since its launch in early 2001, a total 

of 142 agents from 26 travel agencies 

in Singapore have registered for 

the program. 

Print advertisement for 

Celebrate Australia in Singapore 

18

Thailand 

Australia received a total of 75,500 visitors from Thailand in 2002/03, a decline of six per 

cent over the previous year. 

Thailand’s strongly performing economy resulted in high levels of interest for the outbound 

incentive market, with Australia well placed to secure business from this sector. 


• Thailand is leading the growth in 

the incentive market to Australia 

with a total of 33 incentive groups 

visiting in 2002/03 from a variety 

of industries including insurance, 

automotive, pharmaceutical, and 

telecommunications. 

• The Free Style Australia campaign was 

launched on Australia Day in January 

2003 and resulted in 1,500 enquiries 

by May 2003. 

• At the end of 2002/03, 85 agents had 

registered for the Aussie Specialist 

Program in Thailand. 

The Free Style Australia print campaign 

resulted in 1500 enquires from Thailand 

Australia – You’re Welcome A number of tourism marketing initiatives positioning Australia 

as a welcoming holiday destination were launched across Eastern Hemisphere markets to rebuild 

consumer confidence in travel and boost holiday bookings to Australia. 

The ‘Australia – You’re Welcome’ campaign promoted Australia as a friendly and welcoming 

destination, and reinforced one of Australia’s strongest attributes – its people. 

The promotion was rolled out across Singapore, Hong Kong, Korea, Malaysia, China, India,Taiwan 

and Japan.Advertisements in newspapers and magazines, as well as TV and radio commercials were 

supported by consumer competitions, media promotions and the 

Visiting Journalists Program. 

The new campaign was a result of the $10 million allocation of Federal 

Government funding to the ATC announced in June 2003. 

19

North and North East Asia 

Overview 

Offices in the North East Asia region are responsible for marketing in Hong Kong, China, 

Taiwan, Korea and The Philippines. 

SARS had a major impact on outbound travel in most North Asia markets except for Korea. 

Australia continued to perform well in the long haul sector particularly the Korean honeymooner 

segment.With the containment of SARS, outbound travel began to show signs of recovery in China, 

Hong Kong and Taiwan at the end of the year. 

Australia performed well in the business tourism sector across all North Asian markets, 

experiencing significant growth in incentive groups from Taiwan, Hong Kong and China. 


The progress of the Approved 

Destination Status (ADS) in China 

and increased number of ADS 

outbound travel agents will have 

a positive impact on the number 

of arrivals to Australia. China and 

Korea are expected to be the 

fastest growing markets for 

Australia in the 2003/4 fiscal year. 

The environment in Hong Kong 

will remain very competitive and 

destination and price promotions 

are expected to increase. While 

the traditional group tour market 

is expected to decline, the 

younger segments and incentive 

travel will provide potential for 

Australia. 

In the Philippines the ATC will 

continue to maintain basic 

industry servicing and review 

opportunities as they arise, but 

will not have a physical presence 

in the market. 

20

Hong Kong 

Australia received a total of 140,700 visitors from Hong Kong in 2002/03, a decline of five per cent 


Despite SARS affecting arrivals growth from Hong Kong,Australia has increased its market share 

over some competing long-haul destinations.Younger segments are emerging quickly and demand 

for packaged tours continues to increase. 

The key objectives for the market in 2002/03 were to maintain group arrivals by offering new product 

experiences in programs; grow the partially packaged segment through the development of flexible 

products; increase high yield incentive arrivals; and enhance the quality of the distribution network 

through the Aussie Specialist Program. 


• The successful launch of Australian 

Airlines in October 2002 generated 

greater exposure for Cairns and the 

Gold Coast and attracted repeat 

visitations from Hong Kong. 

• Launched in May 2003, the ‘Australia – 

You’re Welcome’ campaign, made 

possible by budget reallocation and 

additional funding, promoted both 

independent and group travel packages 

to a number of Australian destinations. 

Print advertisements were run in key 

publications in Hong Kong, generating 

6,900 bookings. 

• In April 2003, the ATC co-hosted a 

media briefing with the Australian 

Consulate General and the Hong Kong 

Travel Industry Council (TIC) to 

broadcast the message ‘Australia 

Welcomes You’ to the public in Hong 

Kong.The media briefing provided facts 

about SARS in relation to Australia 

with the theme of ‘Joint Efforts for a 

Bright Future’. 

• A cooperative campaign conducted in 

October 2002 with partners generated 

4,700 responses and 1,098 bookings. 

In March 2003 the ATC, in conjunction 

with Cathay Pacific Holidays, conducted 

a campaign which generated 2,200 

responses and 400 bookings. 

The Australia-You’re Welcome recovery campaign in Hong Kong generated 6,900 bookings 

21

China 

Australia received a total of 177,100 visitors from mainland China in 2002/03, an increase of 

three per cent over the previous year. 

The SARS outbreak slowed the strong growth from China, which was growing at 

19 per cent up until 30 March 2003.A continued investment in brand marketing has increased product 

and destination awareness of consumers. 

Key objectives for this market in 2002/03 were to grow arrivals by generating awareness and interest 

through activities in Beijing, Shanghai and the Guangdong Province and to enhance the quality of the 

distribution network. 


• The ATC continued its investment 

in building Australia’s brand through 

television advertising and print 

advertorials in Beijing, and outdoor 

advertising and print advertorials 

in Shanghai. 

• Six major consumer promotions 

including Celebrate Australia 2003 and 

Singapore Airlines Trendy Australia 

promotion were conducted, reaching 

1.95 million targeted consumers. 

• Aussie Specialist Program training saw 

165 agents trained during the year as 

well as successful networking days held 

in Beijing and Shanghai. 

• Three advertising campaigns were 

conducted in Guangdong Province and 

one in Beijing during the first half of 

2002/03, generating over 2,000 

bookings to Australia. 

• Australia hosted six key travel trade 

representatives from China at 

Dreamtime 2002; 15 key trade and 

corporate buyers for the Team Australia 

Business Events Educational (TABEE) 

2003; and 61 agents from 45 

organisations attended the Australian 

Tourism Exchange (ATE) 2003. 

• The 6th Australian Travel Mission to 

China was held from 4-7 November 

2002 and was supported by 51 

organisations representing Australian 

travel product and 93 buyer 

organisations. A total of 3,268 

appointments were generated over 

the four days of the program. 

The ATC and Singapore Airlines Trendy Australia 

campaign reached 1.95 million consumers 

22

Taiwan 

Australia received a total of 80,800 visitors from Taiwan in 2002/03, a decline of 18 per cent 


The decline in Taiwan is due to strong competition from major Asian destinations and the decline 

in long haul travel. 

Australia has performed well in the incentive travel sector and this market offers some of the greatest 

growth potential.The ATC has successfully secured a number of large incentive groups, which have 

selected Australia for their overseas conferences in 2004 and 2005. In addition, the launch of ‘single 

destination’ products has further reinforced Australia as a suitable ‘short-break’ destination. 


• Three separate Have a Great Break 

campaigns were launched targeting 

the young singles and couples market 

and positioning Australia as an ideal 

destination for a ‘short-break’.The 

theme was also the focus of the ATC’s 

participation in the Taipei International 

Travel Fair (ITIF) which was attended 

by 50,000 people. 

• Australia’s profile in Taiwan was 

boosted via a two month multi-media 

promotion launched in November 

2002.The ATC worked with Uni 

President Enterprises to secure 

approximately AUD$830,000 of 

exposure for Australia through a 

combination of television advertising, 

print ads, posters and in store 

collateral in 7-11 convenience 

stores throughout Taiwan. 

The Have a Great Break 

campaign targeted young 

Taiwanese singles and couples 

23

Korea 

Korea continued to show growth in visitor arrivals despite the difficult global travel environment. 

Australia received a total of 195,800 visitors from Korea in 2002/03, an increase of eight per cent 


The key objectives for this market in 2002/03 were to support group arrivals and increase the focus 

on families and mature travellers with new products and destinations; increase high yield incentive travel 

and special interest arrivals and dispersal of the backpackers and honeymooners markets; and enhance 

product knowledge and quality of distribution channels. 


• The Australia – You’re Welcome print 

campaign, which presents Australia as 

a carefree destination with a pristine 

natural environment, was designed to 

stimulate immediate bookings.The 

campaign, which was supported by ten 

key travel agents and major carriers 

Korean Air, Asiana Airlines and Qantas, 

generated 1,496 visitors in June. 

• The Feel Free in Australia campaign was 

run in conjunction with trade partners 

Naas and Hanwha Tourmall using major 

daily papers and television.The 

campaigns generated 2,789 visitors. 

• The Aussie Specialist Program was 

launched in Korea this year, with the 

full program to be rolled out in 

2003/04.The online training program 

has been translated into Korean 

and will provide agents with a 

comprehensive destination and product 

training program and reference centre. 

Club Oz Korea, an annual two day 

training weekend held near Seoul, 

attracted over 50 travel agents. 

• Over AUD$4.1 million worth of 

editorial publicity was generated during 

2002/03. 18 print journalists and three 

TV crews from Korea were hosted to 

Australia by the ATC’s Visiting 

Journalists Program. 

The Feel Free in Australia 

campaign generated 2,789 

Korean visitors to Australia. 

24

The Philippines 

Australia received a total of 25,400 visitors from The Philippines in 2002/03, a decrease 

of 15 per cent over the previous year. 

The focus in this market has been on maintaining basic awareness of Australia as a destination; 

involving industry and key agents in trade events; and enhancing the quality of the distribution network. 


• An industry forum for 25 travel agents 

was conducted in Manila and Cebu. 

• Aussie Specialist agents increased by 

67 per cent to a total of 28. 

• Three travel agents buyers and three 

corporate end users were recruited 

for the Team Australia Business Events 

Educational (TABEE) 2003 and eight 

delegates from the Philippines attended 

the Australian Tourism Exchange 

in 2003. 

Australian Tourism Exchange The Australian 

Tourism Exchange (ATE) is Australia’s largest tourism trade 

event and is held annually in Australia.The purpose of ATE 

is to bring international inbound tour operators to our 

country to meet with Australian product suppliers with the 

objective of exchanging information and generating sales. 

Buyers attending ATE sell close to half of all international 

holiday packages to Australia – around 2.3 million people 

– highlighting the importance of this event. 

In 2003,ATE was jointly hosted by the ATC and Tourism 

Victoria and was held at the Melbourne Exhibition and 

Convention Centre from 14-20 June.The event attracted 

648 buyers from 44 countries and 1418 sellers.ATE 

injected approximately $10 million into the local Victorian 

economy and the equivalent of 13,000 visitor nights 

over the week. 

25

WESTERN 

HEMISPHERE 

Overview 

The Western Hemisphere markets include the UK, Europe, the Americas, Middle East and New Zealand. 

Overall, the Western Hemisphere showed resilience during a difficult year for global tourism.Visitor 

numbers from the UK increased and in a number of countries Australia grew market share in a declining 

long haul market. 

Many of these markets are now mature travel markets and the ATC’s marketing strategy in these 

regions is designed to gain greater insights into the consumer, their motivations and how to influence 

their purchase decisions. 

Working in partnership with the State and Territory Tourism Organisations and the Australian tourism 

industry, activity is heavily supported by public relations and the Visiting Journalists Program. 

The ATC continues to enjoy mutually beneficial relationships with airline partners and major activities were 

undertaken across the region with Qantas, Singapore Airlines, United Airlines, Air New Zealand, Emirates, 

and other key carriers. 

The Year Ahead 

A positive sign for the Western Hemisphere market is the resumption of air services from key markets such 

as the USA, Europe and UK, as well as increased competition for the trans Tasman market, which will have 

many benefits for Australia. 

In the year ahead, the ATC will direct its focus towards better understanding the consumer and targeting 

those prospects who deliver both yield and dispersal opportunities. A greater emphasis will be placed on 

strengthening Brand Australia and differentiating Australia from other destinations and on meeting 

consumer’s changing needs and preferences. 

The ATC will no longer have a direct presence in South Africa, Latin America, Sweden and Denmark, but 

will provide strategic support as required and continue to service these markets through other channels. 

Activity in the Netherlands will be limited to providing trade support, and in Switzerland and the Middle 

East to developing specific opportunities presented by these markets. 

26

The Americas 

Overview 

Visitor arrivals from the United States remained stable in 2002/03 compared to the previous year 

with a total of 423,500 visitors.Australia holds two per cent market share of the overall outbound 

US international traveller market. 

Australia received a total of 86,500 visitors from Canada during the financial year, a decrease of seven 

per cent from the previous year. 

Airline capacity to Australia decreased 25 per cent post September 11, severely impacting the flow 

of leisure travellers.As of June 2003, capacity had still not returned to former levels. 

During the year the ATC conducted a number of campaigns in conjunction with airline and industry 

partners to stimulate travel when consumer confidence indicated the time was right. 


• Five major campaigns were conducted 

in conjunction with airline partners in 

North America.The flagship campaign 

in conjunction with Qantas, More 

Wonders Downunder – ran on US 

national TV, in newspapers, magazines 

and australia.com.The campaign 

promoted a variety of two week 

vacation options starting from under 

US$2,000, with the goal of addressing 

strong barriers to travel – time, cost 

and complexity of Australian vacations. 

Other partnership campaigns were run 

in association with United Airways, Air 

New Zealand and Air Canada.These 

campaigns generated 25,296 direct 

inquiries and 18,972 bookings. 

• Trade partnership campaigns were 

conducted with high profile North 

American suppliers, including Globus, 

Newmans South Pacific Vacations, 

Collette and Virtuoso. Co-operative 

marketing programs were also pursued 

with the ATC’s extensive network of 

Aussie Specialist travel agents. 

• In 2002/03, North American Aussie 

Specialists numbered over 1,000 and 

contributed roughly eight per cent of 

total retail bookings to Australia from 

the Americas. 

• Niche market campaigns for the youth, 

gay and lesbian, and honeymoon 

segments were conducted through 

national magazines and 

online marketing. 

The More Wonders Downunder 

campaign ran on US television, in 

newspapers and on australia.com 

27

United Kingdom 

Overview 

The UK demonstrated strong resilience in the wake of various market difficulties and achieved a small 

growth in arrivals over the year.Australia received a total of 644,200 visitors from the United Kingdom 

during the year, an increase of three per cent compared to the previous year. 

Key brand messages about Australia were reinforced through a successful integrated television, print and 

online campaign, which formed the basis for consolidated activity in association with State and Territory 

Tourism Organisations and industry partners. 

The marketing environment in the UK remains highly competitive, particularly in the wake of recent 

events as other competitor destinations aim to recapture market share as the market rebounds. 


• For the first time in four years, the ATC 

advertised on television in the UK. 

The advertisements, developed in 

conjunction with Singapore Airlines, 

promoted a special airfare and ran for 

four weeks from January to February 

2003, and from May to July with airline 

partner Qantas, directing people to 

tour operators and the australia.com 

website.The campaign also included 

an integrated print component in 

conjunction with tour operators and 

STOs. Over 30 tactical campaigns were 

conducted with various key partners 

throughout the year. 

• A range of activities were undertaken 

to leverage exposure from the Rugby 

World Cup 2003, including a major 

supplement in the Sunday Times in 

association with key partners and an 

advertising campaign in the sports 

sections of major newspapers. 

• A new interactive tool, Ozplanner, 

was launched to help first-time 

travellers to Australia to plan their 

holiday. Over 67,000 consumers 

used the service between 

January-June 2003. 

• The ATC, in conjunction with STOs 

and Qantas, participated in the Student 

Travel Australia ‘Get Down Under’ 

campaign that targeted the 

youth/student traveller.The activity 

included subway advertising, washroom 

advertising, print advertisements in a 

mix of youth oriented media, 

competitions, online activity and 

in-store displays. 

• The ATC and Tourism New South 

Wales worked with Manaround, a gay 

and lesbian specialist tour operator, to 

develop a campaign leveraging the Gay 

Games held in Australia in November 

2002.The campaign aimed to increase 

Australia’s profile as a gay and lesbian 

destination and encourage pre and 

post touring following the Games. 

• The ATC received support from the 

BBC Holiday program, with two new 

programs visiting four different regions in 

Australia, along with a feature program 

on wildlife. A key print highlight was a 

double page spread in the Sunday Mail 

focusing on the film Ned Kelly. 

• Subscriptions to the consumer 

e-newsletter Oz Escapes increased by 

over 614 per cent to 49,265 from 

8,019 the previous year. 

Over 67,000 consumers used the 

ozplanner service between 

January-June 2003 

28

Europe 

France 

Global events reduced consumer confidence in this market, with French travellers choosing to 

holiday closer to home or seek safe destinations with stronger cultural affiliations, such as 

French speaking territories. 

Australia received a total of 46,300 visitors from France during the financial year, a decrease of 

11 per cent on the previous year. 

The ATC resumed its presence in the market again in March 2003 after an absence of almost 

one year.Australia’s presence within the distribution network improved, with some larger tour 

operators dedicating additional resources to selling Australia. 


• A print campaign in conjunction with 

Qantas ran in major newspapers for 

two weeks in early January 2003, 

presenting Australian cultural and 

wildlife images and a special airfare. 

The promotion achieved 1,440 

bookings with a 17 per cent increase 

in call volumes. 

• In May 2003, Qantas and ATC ran 

a 30 second radio promotion titled 

‘All the bush are talking about it’, 

featuring Australian wildlife sounds and 

a special airfare. Call volumes increased 

by 16 per cent in response to the 

promotion. 

• The ATC and Singapore Airlines ran 

an outdoor and underground poster 

campaign in January and February 2003 

driving consumers to the travel agent 

Nouvelle Frontieres, the largest 

wholesale and retail operator in France. 

The campaign was supported by 

direct-mail, flyers, window displays, point 

of sale, and print advertisements. 

• A total of AUD$34 million in editorial 

publicity on Australia was generated 

in France. Key activities included a 

supplement in Madame Figaro focusing 

on Sydney, and a visit to Victoria and 

New South Wales by the television 

travel program, Chaine Voyage. 

• French language advertisements for 

business tourism were run in key trade 

media to reach French-based event 

organisers. 

• Membership to the online travel club 

in France increased from 960 to 

1,600 members. 

29

Italy 

The ATC resumed its presence in Italy after an absence of almost one year and embarked on a 

new marketing and promotion strategy to rebuild interest from this market. 

A slow-down in bookings to Australia was experienced from March through June 2003 in response 

to world events, however appeared to be recovering again towards the end of the financial year. 

Australia received a total of 42,500 visitors from Italy during the year, a decrease of 11 per cent 

on the previous year. 

There was encouraging growth of new specialised wholesale and retail operators, broadening 

the distribution network for Australia. 


• A recovery campaign was implemented 

to stimulate the Italian market including 

half page newspaper ads in the major 

papers and an online campaign which 

received record user sessions on 

australia.com. Over 20 campaigns were 

undertaken in the market throughout 

the year with key industry partners. 

• In partnership with Qantas, a 

motivational 16-page colour flyer was 

printed and inserted in 1.5 million 

copies of Italy’s two leading daily 

newspapers, Il Corriere della Sera and 

La Republica in July 2002.This 

generated an estimated 1,200 bookings. 

• Australian model Megan Gale was 

recruited to represent the ATC in Italy 

as Australia’s Tourism Ambassador, 

providing a unique opportunity to 

boost the profile of Australia in 

the market. 

• A successful partnership with 

Austrade helped to consolidate a 

major integrated campaign between 

the ATC, Western Australian Tourist 

Commission, Emirates Airlines and 

seven wholesalers, aimed at attracting 

Italians to Australia during the 

European winter. 

• A total of AUD$48.7 million in editorial 

publicity on Australia was generated in 

Italy.This included coverage in monthly 

travel magazine, Gente Viaggi, and Io 

Donna, Italy’s leading national 

newspaper as well as a radio 

promotion on Radio Monte Carlo. 

• Training for 1,600 individual travel 

agents was conducted through the 

Aussie Specialist Program, growing the 

ATC database of retail agents to 2800. 

• Membership to the online travel 

club in Italy increased from 1500 to 

4000 members. 

Australian model, Megan Gale, was recruited as 

Australia’s Tourism Ambassador to Italy 

30

Germany 

The outbound market in Germany faltered in the wake of the impact of global events and 

was exacerbated by a poor economic environment, which lowered consumer confidence and 

constrained the outbound travel market. 

Australia received a total of 134,000 visitors from Germany during the financial year, a decrease 

of two per cent on the previous year. 

The competitive environment in Germany is challenging, with other major long haul destinations 

actively pursuing growth from this market.A new regional manager was appointed in Frankfurt in 

February, reaffirming the ATC’s commitment to the market. 


• ATC and Qantas ran a print and 

magazine campaign during January and 

February 2003 themed Australia.You 

can’t describe it – only experience it, 

which generated 2,800 bookings. 

• Recovery funding was allocated to a 

co-operative campaign with Qantas, 

which generated over 3,500 bookings 

and has been the most successful of 

any campaign undertaken by Qantas 

in Germany in the past five years. 

• The ATC and Singapore Airlines 

implemented a magazine print 

campaign designed to stimulate 

repeat visitation based on travellers’ 

experiences in Australia. 

• For the first time the ATC used pay 

TV to sell Australia through the 

Big Xtra campaign. 

• A total of AUD$91 million in editorial 

publicity was achieved.This included 

TV coverage on DSF Abentueuer und 

reisen tv,VOX Spiegel TV,Voxtours and 

MTV Travel in Trend. 

• The ATC joined with Tourism New 

Zealand for the first time in 2003 to 

coordinate a joint Australia/New 

Zealand stand at the major trade 

event Internationale Tourismus Borse 

(ITB).This collaboration is likely to 

continue next year, due to its success. 

• An online promotion on lifestyle 

and magazine websites resulted in a 

503 per cent increase in incremental 

traffic to australia.com and achieved 

the best campaign conversion results 

in five years. 

• The ATC participated in a DerTour 

Reise Academie training event, where 

over 750 agents were educated about 

selling Australia. 

Using recovery funding, the ATC and 

Qantas ran a cooperative campaign 

on australia.com in Germany 

31

The Netherlands and Switzerland 

Both Switzerland and the Netherlands saw declines as a result of world events, however operators 

were reporting signs of a recovery at the end of the year. 

Australia received a total of 52,100 visitors from the Netherlands, a decrease of five per cent 

on the previous year. Arrivals from Switzerland totalled 41,200, also a decrease of five per cent. 

The ATC has undertaken very focused activity in these markets over the past 12 months, using cost 

effective methods to reach the segments with the greatest potential for Australia, such as backpackers 

and the youth market. 


• Campaigns were undertaken in 

Switzerland with key partners, including 

Student Travel Australia, targeting the 

core youth/backpacker segment. 

• In Switzerland, articles featured in key 

newspapers SonntagsBlick, Neue 

Zuercher Zeitung and SonntagsZeitung, 

focusing on a cross section of 

Australian product. A promotion 

on Radio Argovia featured Australia 

throughout May. 

•In the Netherlands the ATC 

participated in seven marketing 

campaigns throughout the year with 

key partners. A City Cabs program on 

the Discovery Channel and Fly Away 

Travel documentary provided excellent 

coverage on Australia using different 

themes.The ATC also attended the 

Big Planet training workshops organised 

by Singapore Airlines, comprising four 

one-day workshops, with approximately 

200 agents attending each day. 

• A Dutch version of the guide 

‘Essential Australia’ was produced for 

the first time to help boost consumer 

knowledge of Australia. 

• A total of $7.6 million (Switzerland) 

and $26.5 million (Netherlands) worth 

of publicity was generated in these 

markets, with 83 articles featured in 

the press as a result of the Visiting 


Student Travel Australia 

campaign was designed 

to stimulate bookings and 

establish STA as a specialist 

for Australia. 

32

Middle East 

Overview 

A key strategy in the Middle East during the year was to develop a cooperative framework 

to attract partner involvement and identify impediments to market growth. 

Australia received a total of 50,200 visitors from the Middle East in 2002/03, a decline of 

11 per cent compared with the previous year. Results were strong, given the political situation 

in the region this year. 


• Activity largely focused on media 

relations with $AUD1,236,500 worth 

of editorial coverage generated through 

the Visiting Journalists Program and 

public relations activity. 

• The ATC sponsored a six page 

supplement in the region’s most 

popular Arabic language family 

magazine, Sayidaty. 

• The Arab Radio Network broadcast 

live from Sydney and Melbourne during 

a five day visit in May 2003, which 

resulted in one hour of publicity per 

day on four different stations across 

the United Arab Emirates. 

33

New Zealand 

Overview 

New Zealand remains Australia’s largest single source market.Australia received a total of 793,100 

visitors from New Zealand during the financial year, an increase of one per cent over the previous year. 

Australia maintains dominant market share of 62 per cent of the total New Zealand outbound market 

and the country has proved to be one of the most resilient with departures to Australia increasing by 

nine per cent in the June quarter 2003. 

In 2002/03, the ATC continued to focus on improving yield from visitors, increasing dispersal and 

continuing to encourage repeat visitation. 


• The ATC continued to run the highly 

successful ‘Discover Australia’brand 

campaign in 2002/03 with television, 

press, magazine, cinema and online 

advertising. 

• In May 2003, the ATC in conjunction 

with Qantas, STOs and wholesale 

partners, launched the ‘Discover Australia 

Now’ campaign, further extending the 

successful brand campaign.This 

campaign generated 20,000 bookings in 

three weeks, with wholesalers reporting 

record sales for Australia in June. 

• A total of 17 media from New Zealand 

travelled to Australia with the ATC 

Visiting Journalists Program in 2002/03. 

Total VJP publicity tracked during this 

period reached AUD$3.37 million. 

• The ATC worked with the TV3 ‘Live 

This’ television program to produce 

13 episodes featuring new Australian 

holiday experiences under the ‘Discover 

Australia’ umbrella. 

• The ATC worked with TVNZ to 

produce a TV program to appear on 

primetime television in the lead-up 

to the Rugby World Cup. 

• Over 220 Australian suppliers and 

315 travel agents attended OzTalk 

New Zealand. 

The Discover Australia Now recovery campaign 

in New Zealand generated 20,000 bookings 

within a three week period 

34

Sydney Office Reports 

37

Hemispheres 

The Hemispheres division within 

the ATC operates from the 

Sydney office and is responsible 

for providing an interface 

between the Australian tourism 

industry and the ATC’s 

international offices, and assisting 

the industry with their 

international marketing efforts. 

Partnership Marketing 

The Partnership Marketing 

unit services approximately 

200 industry partners per 

month, providing them with 

a greater understanding of ATC 

activities and creating revenue 

opportunities through 

cooperative marketing. 


• During the 2002/03 financial year, 

Partnership Marketing generated 

sales worth AUD$2.2 million. 

• Industry participation in ATC 

cooperative activities achieved an 

average of five per cent above 

target levels. 

• The department worked to 

develop a greater understanding of 

the role of australia.com in the 

ATC’s international marketing 

efforts by demonstrating the 

benefits offered by the online 

medium and reporting and tracking 

all partner advertising. 

Trade Development 

The Trade Development unit 

provides an essential 

communication link between the 

Australian tourism industry, 

Australian-based inbound tour 

operators and the ATC’s overseas 

operations.The unit also provides 

input and assistance to a number 

of industry associations 

and groups. 


• Better processes for communicating 

and consulting with inbound tour 

operators and industry partners 

were established to improve the 

ATC’s services to this sector and 

determine where the ATC could 

most add value to their activities. 

• Information on the ATC’s 

industry website, ATC Online, 

was restructured for better 

communication of market 

information and marketing activity, 

as well as regular updates through 

the ATC’s weekly online 

newsletter, essentials. 

• The unit participated in various 

industry groups, including the 

implementation of frameworks 

to progress market and industry 

development in the key markets 

of Japan and China. 

The Marketing Opportunities Guide 

2003/04 provided essential information 

on the ATC’s marketing initiatives 

38

Marketing Development 

The Marketing Development 

business group is responsible for 

enhancing the ATC’s global brand 

strategy and driving product and 

business segment development 

programs for Australian tourism. 

It oversees the ATC’s presence 

at trade shows in Australia and 

around the world and is also 

responsible for the ATC’s 

International Media strategy, 

which includes the Visiting 


It comprises six operational areas: 

Advertising & Design, Business 

Tourism, International Media, 

Market Insights, Online Programs 

Management and Trade Events. 


• In response to increasing 

competition from competitive 

destinations, the ATC commenced 

a program to refresh and redefine 

Brand Australia.The results of this 

program will be delivered at the 

end of 2003. 

• Major performance improvements, 

including a redesign, were made to 

australia.com. 

• The Tourism Ambassador program 

was expanded with the 

appointment of Megan Gale and 

Layne Beachley. 

• ATE returned to Melbourne with 

a modified format, and despite the 

challenge presented by SARS and 

the Gulf War, was deemed to be 

a major success. 

• In preparation for the Rugby World 

Cup, which will be held in October 

and November 2003, the ATC put 

in place a program to both boost 

the number of international visitors 

and maximise the media coverage 

of Australia during the tournament. 


At the end of June 2003 the 

Marketing Development 

department was restructured 

with a renewed emphasis on the 

development of Brand Australia. 

A new position, Consumer 

Marketing Director, will work 

closely with the marketing 

directors in-region to ensure 

consistency in the execution 

of the new brand positioning. 

The Segment Development unit 

was also disbanded with activities 

and responsibilities split between 

the Marketing Development and 

Hemispheres groups. Business 

Tourism, will become a standalone 

unit within the Marketing 

Development group.This will 

allow the ATC to continue to 

focus on leveraging third party 

relationships. 

The Tourism Ambassador 

program will be expanded and 

with a number of additions to 

its high-profile ranks. 

The level of co-operation and 

joint promotion with non-tourism 

related organisations such as 

Austrade and Invest Australia 

and industries such as wine and 

clothing, will be increased to 

further improve the position of 

Brand Australia and maximise the 

funding available to the ATC. 

39

Advertising 

and Design 

The Advertising & Design unit 

manages the development and 

application of Brand Australia 

graphics in all ATC Online and 

printed communications, signage, 

merchandise, trade events and 

promotional items. Additionally 

the unit manages and supplies 

a comprehensive library of still 

images, film footage and videos 

of Australia. 


Layne Beachley is welcomed as a 

Tourism Ambassador by the Minister 

for Small Business and Tourism, the 

Hon Joe Hockey, MP, at ATE 2003 

• The creative services area designed 

and created all artwork for the 

Australian Tourism Exchange (ATE) 

2003, working with Tourism Victoria 

to create a consistent design 

theme for the event. 

• The ATC’s video and image library 

capabilities were upgraded during 

the year. A more comprehensive 

facility that allows for in-house 

editing and an image scanner that 

allows images to be scanned at a 

high resolution in-house has also 

resulted in cost savings. 

• Over the past 12 months the 

image library has acquired 

approximately 1,000 new images. 

Tourism Ambassador 

Program 

The ATC has a long history of 

working with Australian 

celebrities in marketing activities 

overseas to help build the 

interest in people holidaying in 

Australia, beginning with Paul 

Hogan in the 1980s with the 

famous ‘shrimp on the barbie’ 

campaign.The ATC last year 

announced a new program to 

work with well-known Aussies in 

promoting Australia to the world. 

Ian Thorpe, world champion 

swimming star was the first to 

be appointed, and his efforts 

are focused on the important 

Japanese market. In Italy, the ATC 

this year appointed celebrity 

model and actress Megan Gale 

to promote Australia. 

Layne Beachley, the World Surfing 

Champion, was the third 

Ambassador to be appointed 

to help build Australia’s image 

internationally amongst the youth 

markets and to ensure the 

country continues to enjoy a high 

profile as a holiday destination. 

Over the coming year, the 

Ambassador program will be 

expanded to include a wider 

range of Australians who 

represent the best of Brand 

Australia and who can help us to 

further promote the image of the 

country as a tourism destination. 

40

Market Insights 

The Market Insights unit manages 

a comprehensive international 

and domestic market research 

and analysis program, providing 

ongoing strategic information to 

the ATC and the tourism industry. 

The unit acts as an internal 

consultancy across the ATC 

management team, generating 

insights about customers and 

markets for use in the strategic 

decision making process. 


• Three waves of a North 

American Passenger Survey 

Research were conducted at 

Los Angeles International Airport 

with travellers en route to 

Australia, providing a monitor 

of travel planning and purchase 

behaviour from key US traveller 

segments as well as an evaluation 

of ATC marketing activities. 

• Conversion research was 

conducted among US consumers 

who have responded to ATC 

advertising to examine conversion 

rates and media effectiveness. 

Results from the US Conversion 

Study have enabled the ATC to 

establish benchmarks for consumer 

conversion to ensure campaign 

effectiveness is maximised via 

proven performance measures. 

• Global Brand Health and 

Communications Tracking Research 

was conducted in ten markets, 

evaluating Australia’s competitive 

positioning and the effectiveness of 

ATC marketing communications. 

Australia was nominated the 

number one preferred destination 

in six of the ten markets surveyed. 

• Advertising Concept Research was 

conducted in the UK, based on 

strategic insights developed from 

previous barriers to travel research. 

The research was used as input to 

the development of the UK TV 

brand campaign. 

• A major study was conducted 

among Chinese ADS group visitors 

to Australia to assess their visitor 

experience and to determine the 

key drivers for repeat visitation and 

positive word of mouth.The results 

provided the ATC with information 

to build business from this market 

and increase the number of ADS 

visitors coming to Australia. 

• Consumer research was conducted 

in Korea to identify and prioritise 

specific target segments that 

provide the most potential for 

increased holiday travel to Australia 

and to identify the key drivers and 

most motivating experiences for 

each segment. 

• The Japan Product Development 

Research findings were released 

with several workshops held with 

key stakeholders in Japan and 

Australia. A strategy for actioning 

the results has been developed in 

region and in Australia. 

41

International Media 

International Media is responsible 

for the ATC’s Visiting Journalists 

Program (VJP), a program 

designed to attract targeted 

media from around the world to 

report on Australia’s many holiday 

experiences and attractions. 

The unit provides a variety 

of resources to the ATC’s 

worldwide public relations 

network and manages 

media.australia.com, the ATC’s 

dedicated media website. 

The unit also works with a 

number of Australia’s top travel 

and tourism writers to produce 

feature stories and story ideas 

about Australia to generate media 

interest internationally. 


• The ATC hosted 1,027 print 

and broadcast journalists to 

Australia throughout the year 

through the Visiting Journalists 

Program, generating editorial 

coverage with a value in excess 

of AUD$1.4 billion. 

• A number of large international 

television crews were assisted by 

the ATC to gain tourism footage 

of the destination.This included 

supporting India’s most successful 

television production house, Balaji 

Telefilms, with the shooting of a 

major story line in Sydney for its 

two most successful TV programs. 

• To maximise the media coverage 

of Australia in the leadup and 

during the Rugby World Cup 

tournament, the International 

Media unit hosted more than 

20 international broadcasters at a 

forum and produced a broadcast 

showreel on Australia. Prior to 

the tournament the ATC hosted 

several media outlets, including 

TVNZ. 

• The international media program 

at the Australian Tourism Exchange 

(ATE) attracted 42 international 

media which helped to boost the 

coverage of Australia in trade 

publications in 19 countries. 

• A new Visiting Journalists Program 

targeting business publications was 

implemented.This program will 

help to attract international 

business by reporting on the 

destination as an ideal place to 

hold business events, such as 

incentives and conferences. 

• Activities to boost the promotion 

of Australia as a host of the Gay 

Games 2002 in the international 

media were undertaken, including 

representation at the event’s 

media centre. 

The ATC hosted India’s 

number one TV drama series 

Kyunki Saas Bhi Kabhi Bahu Thi 

generating the equivalent of 

$AUD40 million in publicity 

42

Segment 

Development 

The Segment Development unit 

focuses on the strategic 

development of specifically 

identified industry segments 

within Australia.These include 

business tourism (corporate 

meetings, incentives, conventions 

and exhibitions), Aboriginal 

tourism, backpacking, educational 

tourism, ecotourism, food and 

wine tourism and special events 

such as the Rugby World Cup. 


Ecotourism 

• Ecotourism Australia’s NEAP 

accredited product was profiled on 

the floor of the Australian Tourism 

Exchange (ATE) 2003. 

• The ATC launched an ecotourism 

initiative, ‘Australian Eco’, at the 

Japan Australia Mission (JAM) 2003 

in Fukuoka, Nagoya, Osaka and 

Tokyo, to boost the profile of 

Australian ecotourism product. 

A new Japanese language website, 

developed in conjunction with 

Ecotourism Australia and featuring 

accredited ecotourism products, 

was launched to the 380 Japanese 

buyers attending the show. 

Aboriginal Tourism 

• The ATC participated in the 

Indigenous Tourism Leadership 

Group (ITLG) and provided input 

to the committee discussions on 

the structure of the group.The 

ATC was also invited to conduct 

a review of the Aboriginal and 

Torres Strait Islander tourism 

industry strategy. 

• The ATC compiled a submission to 

the CEOs forum recommending 

that each State and Territory 

Tourism Organisation conduct a 

product audit to determine the 

extent of Aboriginal tourism 

product in Australia, and the level 

of readiness of each product for 

the international market. 

• With the aim of helping to build 

knowledge and understanding of 

Aboriginal tourism, the ATC 

produced a summary of available 

consumer research, including insights 

about consumer perceptions, 

interest and participation in 

Aboriginal products and activities, 

gathered from a number of sources. 

• Aboriginal tourism was given a high 

profile at the Australian Tourism 

Exchange (ATE) 2003 and new 

Aboriginal tourism related content 

was developed on australia.com. 

• The ATC also developed a 

motivational brochure on 

Aboriginal tourism in Australia in 

conjunction with the STOs and the 

Commonwealth Department of 

Industry,Tourism and Resources. 

Aboriginal Tourism 

Aboriginal tourism is a ‘niche 

market’ or ‘special interest 

sector’ and includes a wide range 

of experiences built around 

tourist visitations. 

The availability of quality 

information and marketing 

relating to the available choices 

of Aboriginal tourism products 

has a major bearing on the 

quality of the total experience 

and satisfaction of the visitor. 

The growing awareness and 

demand for Aboriginal 

experiences by international 

visitors has provided the 

opportunity for Aboriginal people 

to develop an economically selfsufficient 

tourism business. 

As this segment grows, the ATC, 

in partnership with the State and 

Territory Tourist Organisations, 

is providing assistance to ensure 

that Aboriginal tourism receives 

the support it requires, and 

achieves sustainable growth 

at an international level. 

43

Food and Wine 

• Cooperative marketing partners 

and opportunities were sought to 

profile Australia’s attributes in food 

and wine tourism. Examples include 

a promotion with the Australian 

Wine Export Council to produce 

a wine map of Australia distributed 

to Japanese consumers through 

retail liquor stores. 

• The ATC was represented on the 

Marketing and Promotion 

subcommittee of the Restaurant & 

Catering Industry Action Agenda 

and the Australian Wine Tourism 

Alliance for the implementation 

of the National Wine Tourism 

Strategy.The ATC also contributed 

to the development of the ACIL 

Consulting Paper on Wine Tourism 

and Wine Exports. 

Backpackers 

• ATC coordinated 20 Australian 

suppliers, specialising in the 

youth/student/backpacker segment, 

to participate under the Australian 

banner at the World Youth and 

Student Travel Conference 

(WYSTC) 2002 in Rhodes, Greece. 

The event attracted buyers and 

sellers from around the world, 

with more than 900 international 

delegates, representing 450 

companies in over 70 countries, 

attending the trade show. 

• The ATC continues to consult the 

industry through the Backpacking 

Tourism Advisory Group (BTAG) 

and was this year accepted as a 

member of the Federation of 

International Youth Travel 

Organisations. 

• The ATC sponsored an Australian 

presence at Independent Traveller’s 

World (ITW) 2003, one of 

Europe’s leading independent travel 

shows held in the United Kingdom. 

Education 

• The ATC, in conjunction with 

partners AEI, Austrade, Qantas 

and English Australia, developed 

a destination brochure ‘Study and 

Explore’, aimed at students coming 

to Australia to study English. 

Backpackers 

The international backpacker market has proven to be a beacon for steady 

tourism growth. Backpacker tourism has been identified as a key growth area 

within inbound tourism and the ATC has increased its focus on this market. 

Investing in this market segment now will provide substantial returns in the 

future as the backpackers of today are likely to become the returning highyield 

target markets of tomorrow. 

The ATC promotes Australia to the international backpacker market through 

a diverse range of innovative consumer and trade activities, including joint 

industry promotions, television, print and electronic advertising, public 

relations and information programs and the coordination of Australian 

industry participation at international trade events. 

44

Rugby World Cup 

In conjunction with industry partners, 

the ATC ran an advertising campaign 

promoting the Rugby World Cup 2003 

in the UK and Europe 

Rugby World Cup 

Considered one of the biggest sports events to take place globally, after the Olympics and the FIFA World 

Cup, the Rugby World Cup 2003 

RWC2003 will be held in Australia in October and November 2003 providing tourism opportunities related 

to the event. RWC2003 will comprise 20 countries playing 48 matches across ten Australian cities and 

regional locations.An estimated 40,000 visitors are expected to travel to Australia for the event. 

The ATC has worked closely with the hosts of RWC2003, the International Rugby Board and the Australian 

Rugby Union, and other industry partners to ensure the opportunities provided through hosting the 

tournament are fully realised. Major activities conducted in international markets to promote this event 

included advertising campaigns in 

UK and Europe, outdoor advertising in the UK and France,TV ads on Foxsports in the US and supplements 

in the Sunday Times and Irish Independent.The ATC also worked with the official broadcasters and 

international media to maximise the publicity for Australia in the lead up to the tournament. 

In addition, the ATC prepared a strategy to leverage promotion of RWC2003 as part of whole of 

Government approach to the event.This involved the development of the Rugby Business Club Australia 

strategy and providing destination information on Australia in official RWC2003 guide. 

In furthering the tourism opportunities related to sporting events, the ATC has also become a member of 

the Commonwealth Games Taskforce Communication Working Group convened by the Department of 

Communications, Information Technology and the Arts (DCITA) to look at promoting the 2006 

Commonwealth Games in Melbourne. 

45

Trade Events 

The Trade Events department 

manages the ATC’s participation 

in overseas travel trade events. 

The team manages up to 25 

events each year including the 

coordination of the Australian 

Tourism Exchange (ATE). 


• The Trade Events team 

coordinated 24 events around the 

world in 2002/03 including the 

Australian Tourism Exchange (ATE) 

2003 held in Melbourne in June 

2003. ATE attracted 648 buyers 

from 44 countries and 1418 sellers. 

Almost half of the buyers took up 

the option of pre and post touring 

activity around Australia, furthering 

their knowledge of the destination. 

• A new online system that will allow 

the Trade Events department and 

associated regional offices to 

manage all trade events online and 

deliver a centralised calendar of 

events for industry was reviewed 

for implementation in 2003/04. 

The Australian Tourism 

Exchange (ATE2003) was 

held in Melbourne in June 

46

During the year the Trade Events department coordinated the ATC’s presence at the following events 

around the world: 

ATC Trade Events 2002/03 Financial Year 

Event Name Dates Country 

Meeting Professionals International (MPI) 21 – 23 July 2002 Canada 

Australian Travel Safari (ATS) 29 July – 1 August 2002 South Africa 

2002 Talkback Roadshow 6 August – 4 October Australia 

Scandi Walkabout 2 – 4 September, 2002 Norway, Denmark and Sweden 

Dreamtime 2002 14 – 19 September 2002 Australia 

Top Resa 2002 19 – 21 September, 2002 France 

30th Incentive Travel & Meeting Executive (IT&ME) 2002 24 – 26 September 2002 USA 

TTG Incontri 2002 11 – 13 October, 2002 Italy 

The 10th Incentive Travel & Conventions, Meetings Asia 23 – 25 October 2002 Thailand 

6th Australian Travel Mission to China 2002 4 – 7 November 2002 China 

World Travel Market (WTM) 11 – 14 November 2002 United Kingdom 

China International Travel Mart (CITM) 2002 14 – 17 November 2002 China 

Korean Workshops 2002 20 – 26 November 2002 Australia 

2002 ATEC National Workshops 5th December 2002 Australia 

India Travel Mission 2003 5 – 7 February 2003 India 

Borsa Internazionale del Turismo 2003 15 – 18 February 2003 Italy 

Japan Travel Mission 2003 24 – 28 February 2003 Japan 

Internationale Tourismus Borse 2003 7 – 11 March 2003 Germany 

Team Aust Business Events Educational 9 – 13 March 2003 Thailand 

2003 Swedish Int.Travel & Tourism Trade Fair 20 – 23 March 2003 Sweden 

Incentive Travel & Meetings & Events 8 – 10 April 2003 Germany 

2003 ATEC Symposium 15 – 16 May 2003 Australia 

EU Incentive, Business Travel & Meeting Exhibition 20 – 22 May 2003 Switzerland 

ATE 2003 14 – 20 June 2003 Australia 

Vakantiebeurs 7 – 12 January 2003 Netherlands 

French Roadshow 21 – 24 January 2003 France 

Dublin Holiday World 23 – 26 January 2003 Ireland 

US Symposium 17 – 19 February 2003 Australia 

Malaysia International Travel Fair 14 – 16 March 2003 Malaysia 

Club Oz Korea 21 – 22 March 2003 Korea 

Oz Talk New Zealand 4 – 6 April 2003 New Zealand 

Australian Road Show 24 – 25 April 2003 Korea 

Middle Eastern Road Show 1 – 3 May 2003 Middle East 

Arabian Travel Mart 6 – 9 May 2003 Dubai 

47

Business Tourism 

The role of the ATC in business 

tourism is to position Australia as 

a unique, desirable and achievable 

destination for meetings, incentives, 

conventions and exhibitions.The 

Business Tourism unit promotes 

Australia as a business tourism 

destination through a range of 

industry marketing campaigns. 

These campaigns generate 

awareness of Australia as 

a great place to do business. 


• Following the launch of the first 

business tourism global brand 

awareness campaign in 2001, the 

second phase of the campaign 

was launched in 2002 with the 

objective of converting this interest 

into business in the corporate 

meetings and incentives markets. 

The campaign has to date 

generated four pieces of confirmed 

business for Australia worth 

AUD$845,000. 

• Record numbers of 

125 international delegates from 

22 countries attended Dreamtime 

2002, the ATC’s trade event for 

the business tourism sector. Post 

event business tracking showed 

that delegates delivered over 

AUD$11.2 million of confirmed 

incentive business and an 

evaluation report showed high 

buyer satisfaction with the event. 

The Dreamtime 2002 Visiting 

Journalists Program generated 

AUD$1.18 million worth of 

editorial publicity. 

• The Team Australia Business 

Events Educational (TABEE) took 

place in Thailand in March 2003, 

celebrating its fifth year.The event 

generated business valued at 

AUD$2.28 million. 

• The ATC hosted the first 

dedicated Asian Corporate 

Familiarisation with 12 potential 

corporate customers from five 

Asian countries travelling to 

Australia.This event has to date 

generated business valued at 

AUD$2.6 million. 

Promoting Australia as a business 

tourism destination, the second 

phase of the ATC’s business tourism 

global awareness campaign was 

launched in 2002 

48

Online Programs 

Management 

Online Programs Management 

is responsible for promoting 

Australia through online initiatives, 

including australia.com, ensuring 

the appropriate targeting of 

markets, website planning, 

partnership development, and 

online program strategy 

development. 


• australia.com delivered over 


globally in 2002/03 which is an 

increase of 8 per cent on 2001/02. 

• The largest audience for 

australia.com was from America, 

accounting for 45 per cent of 

pages viewed, followed by Europe 

with 21 per cent, Japan and Korea 

with 13 per cent, Rest of World 

with 13 percent, other Asia 6 per 

cent and New Zealand and the 

Pacific with 2 per cent. 

• australia.com presented over 

13,600 Australian products 

internationally sourced from the 

Australian Tourism Data 

Warehouse (ATDW).This is a 23% 

increase in listings from 2001/02. 

• In March 2003 australia.com won 

the Travel & Tourism Web Award 

for Best Tourist Board against a 

field of international sites.The 

award was presented at the British 

Travel Trade Fair. A key feature of 

the site was the Ozplanner, a 

new interactive tool which was 

launched in the UK to help firsttime 

visitors in planning their 

holiday to Australia. 

• A review of australia.com included 

a redesign to make it easier for 

the visitor to select their preferred 

country or language from the 

home page.The site provides 

information and access to travel 

products in nine languages. 

• A Japanese edition of australia.com 

was launched featuring fullytranslated 

maps, Australian 

Tourism Data Warehouse 

listings, revised editorial and 

localised travel campaigns. 

• australia.com content is exclusively 

featured in the Visit Australia 

section of the official Rugby World 

Cup 2003 website. A dedicated 

section on australia.com was also 

created for this event. 

18,000,000 

16,000,000 

14,000,000 

12,000,000 

10,000,000 

8,000,000 

6,000,000 

4,000,000 

2,000,000 

0 

australia.com delivered over 


globally in 2002/03 – an increase 

of 8 percent on 2001/02 

australia.com page impression by region 2002/03 

Americas 

Europe 

Japan 

& Korea 

Rest of 

World 

Asia 

NZ & 

Pacific 

49

Organisational Development 

The role of Organisation 

Development is to build optimum 

organisational performance which 

includes developing the ATC’s 

corporate and tourism strategic 

direction, driving change in all 

aspects of the organisation’s 

operations including 

re-engineering business processes; 

and ensuring the organisation has 

the appropriate human capability, 

culture and structures to meet 

ever-changing needs. 

People and Internal 

Communications 

• Staff numbers as at 30 June 2003 

were 88 employees in the Sydney 

Office and 105 in 13 overseas 

locations. 


• A set of consistent global 

recruitment strategies and 

guidelines were developed, 

incorporating the ATC’s vision, 

values, core competencies 

and behaviours, along with 

a full recruitment guide to 

assist all managers. 

• Two separate leadership training 

programs were conducted globally 

for all managers, focusing on 

equipping managers with key 

management skills. Seventy 

managers completed the program 

during May and June 2003. 

• A Global Employee Survey was 

conducted measuring a number 

of key indices including core 

management behaviours, internal 

communications, reward and 

recognition, vision and values and 

communication.The survey 

provided valuable information on 

how to improve in such areas as 

career development, recognition 

and work/life balance. 

• A new performance management 

program was implemented globally, 

with outcomes including a 

distribution curve in line with best 

practice and a globally consistent 

approach to performance 

management – a first step in 

aligning performance with pay. 

• Global Team Development 

workshops provided ATC staff 

with valuable skills to improve 

team working and interaction 

in the workplace. 

• An intranet site, ATC Central, 

was developed to better inform 

employees about all aspects of the 

ATC, along with a monthly team 

briefing process. 

Workplace diversity 

• The ATC maintains workplace 

diversity by ensuring equity in 

recruitment procedures and the 

creation of promotional 

opportunities both in the Sydney 

office and on a global basis.The 

ATC’s Equal Employment 

Opportunity (EEO) program 

especially recognises employees’ 

domestic and family responsibilities. 

In furthering ‘family friendly’ 

policies, the ATC offers part-time 

employment and flexibility in 

working hours. 

• Of the 193 employees at 30 June 

2003, 61 per cent were females. 

Women held 17 out of 41 

management positions. Of the total 

permanent employees some 37 

per cent were from non-English 

speaking backgrounds. 

Occupational health and safety 

• The ATC is fully compliant with 

all occupational health and safety 

requirements.The ATC’s Safety 

Improvement Team meets regularly 

and ensures that the regulatory 

guidelines determined by Comcare 

are achieved. 

Employee relations 

• There were no industrial disputes 

in the past 12 months. 

Commonwealth Disability 

Strategy 

• In line with the Commonwealth 

Disability Strategy, our recruitment 

information is provided in multiple 

formats as required. 

• ATC programs, where possible, are 

held in locations that are accessible 

to people with disabilities. 

50

Corporate 

Strategy/Operational 

Effectiveness 


• A more rigorous analytical approach 

to strategic planning was introduced 

in consultation with key internal 

and external industry stakeholders, 

focusing more on objectives and 

outcomes. 

• A Key Performance Indicators (KPI) 

framework was implemented 

across the ATC including industry, 

corporate, business group, program 

and individual indicators. 

• The ATC implemented project 

management governance tools 

in the technology area and 

investigated project management 

methodologies to raise the level 

of significance and capability across 

the rest of ATC. 

• A new strategic positioning of 

markets methodology was 

developed as well as a business 

model to evaluate all activity. 

• Project Mercury, a tourism 

foresight project, identified future 

global consumer and industry 

trends, developing action plans 

against a range of possible scenarios, 

which were incorporated into the 

strategic planning process. 

Tourism & Aviation Strategy 

During the year the department 

created a new unit,Tourism and 

Aviation Strategy, to complete the 

Organisation Development team 

and work with key aviation and 

other industry stakeholders. 


• A monitor of inbound tourism 

arrivals was developed to analyse 

impact by market of the Iraq 

War and SARS. 

• The ATC presented a detailed 

submission to the Australian 

Consumer Commission (ACCC) 

review of the proposed Qantas/ 

Air NZ Alliance. 

• A position on key air service 

bilateral agreements was 

developed and briefings conducted, 

including negotiations with China 

and Malaysia which produced 

increases in available capacity. 

51

Public Affairs 

The Public Affairs department is 

responsible for developing and 

implementing communications 

strategies to raise awareness of 

the ATC’s global activities and the 

value of inbound tourism within 

Australia among the media, 

government, tourism industry, 

business and general community. 

During the Iraq crisis and SARS 

outbreak, Public Affairs played 

a strategic role in issues 

management, and worked closely 

with STO counterparts and 

Department of Industry,Tourism 

and Resources on the 

implementation of the National 

Tourism Incident Response Plan. 

Daily global reports from 

overseas offices on consumer 

sentiment to travel were 

produced and distributed to 

government and the industry, 

along with regular updates on the 

ATC’s corporate website, ATC 

Online. Information, reassuring 

travellers of Australia’s SARS-free 

status, was also provided to 

consumers via australia.com. 


• In 2002/03 Public Affairs managed 

more than 2,000 media enquiries 

with the purpose of generating 

extensive media coverage in 

key newspapers and business 

publications, and broadcast media 

on the ATC’s programs and 

inbound tourism’s contribution 

to Australia’s economy. 

• A comprehensive media program 

was organised for the Australian 

Tourism Exchange (ATE) 2003, 

52 

with more than 40 domestic media 

attending and resulting in more 

than 100 media stories generated 

throughout the week-long event. 

• The department also coordinated 

the government relations program 

for ATE involving State,Territory 

and Federal Ministers.Twelve 

members of the Friends of 

Tourism, a Federal committee of 

government representatives, 

attended ATE along with the Hon 

Peter Costello,Treasurer and the 

Hon Joe Hockey, Minister for Small 

Business and Tourism, and Tourism 

Ministers from six states. 

• Media launches for Australian 

Tourism Ambassadors Megan Gale 

and Layne Beachley were organised 

during the year. 

• The industry website, ATC Online, 

delivered 1,307,649 pages of 

information during 2002/03, a 

14 per cent increase over the 

previous year.The essentials 

electronic newsletter subscription 

base increased from 9,000 to over 

13,000. A review was undertaken 

to determine how the industry 

communications, ATC Online and 

essentials newsletter could better 

benefit the industry. 

Government Relations 

The Government Relations unit 

provides policy input to 

Commonwealth Government and 

Parliamentary forums by way of 

briefs and submissions and plays 

an advisory role to the executive 

management team and Board on 

government and political matters. 

The unit liaises with national 

tourism industry associations and 

State and Territory Tourism 

Organisations on matters relating 

to tourism policy, primarily 

focused on foreign affairs and 

trade, immigration and regional 

issues, and strengthens 

relationships with government 

stakeholders in order to raise 

awareness of the value of 

inbound tourism. 


• Presentations, submissions and 

responses were prepared for the 

Friends of Tourism, Australian 

Standing Committee on Tourism 

(ASCOT),Tourism Ministers 

Council, and Senate Estimates 

hearings.The unit represented the 

ATC on a number of government 

committees including the 

Major Events Commonwealth 

Coordination Group, the M2006 

Working Group Committee, 

National Tourism and Heritage 

Taskforce, Commission for 

International Cultural Promotion 

and the International Education 

Interdepartmental Committee. 

• A sustainable tourism strategy and 

plan was implemented to fulfil the 

ATC’s statutory obligations and 

help ensure the responsible 

development and promotion of 

Australia’s tourism industry. 

• A Memorandum of Understanding 

was signed with Austrade to 

work cooperatively in international 

markets and preparations 

for a Memorandum of 

Understanding on the promotion of 

Australian education internationally 

were progressed during the year.

Corporate Services 

The role of Corporate Services is 

to supply financial, administrative, 

risk management, information 

technology project management 

and technical support, and 

corporate database and web 

development support as well as 

Board secretarial services to the 

Commission. 

Finance 

The Sydney Finance Unit provides 

professional services for the total 

finance functions of the ATC. 

The unit develops strategies and 

maintains operations for financial 

systems, budgeting, tax reporting, 

and treasury operations for the 

ATC and supports the regional 

finance teams. 

The regional finance teams 

operate from London and Hong 

Kong, overseeing the Western 

and Eastern Hemispheres 

respectively. 


• A key responsibility for the 

unit was accounting for the 

Commission’s expenditure for the 

year of $117.7 million, down from 

$120.5 million in 2001/02. 

• Government revenue was 

$99.9 million and revenue from 

cooperative industry activities and 

other sources reached $22 million; 

a combined total of $121.9 million. 

• A $2.3million decline in 

non-government revenue on last 

year reflects a reduced participation 

in marketing by the industry, and a 

partial refund for some Australian 

Tourism Exchange delegates to 

assist industry participants 

impacted by the SARS outbreak. 

• The ATC incurred an operating 

surplus of $4.1 million for 2002/03, 

after recording a $1.7 million 

surplus last financial year. 

• Debts written-off during the year 

totalled $30,808 with provision 

for doubtful debts remaining at 

$211,000 in 2002/03 to reflect 

the accrual of potentially nonrecoverable 

debts over the year. 

Debtors profile and collections 

were improved during the year. 

• Under a directive from the 

Department of Finance, foreign 

currency funds management was 

undertaken on a spot basis with 

transactions being initiated to 

provide the ATC with the most 

cost-effective level of foreign 

currency funding. 

• There were no significant 

acquisitions or dispositions of 

property by the ATC during 

the period. 

• In 2002/03 the ATC 

completed an upgrade of its 

financial system. 

Risk Management & 

Administration 

As an integral part of ATC 

business practices, risk 

management principles and 

practices have been incorporated 

into the Commission’s decisionmaking 

and operational activity. 

The operations of the risk 

management area are designed 

to meet the principle objective 

of minimising risk to the ATC in 

a cost effective manner and to 

an acceptable level. 

The ATC has a comprehensive 

insurance program that includes 

Directors’ and Officers’ Liability 

Cover which is managed by 

Comcover. 

53


• An education program that 

identified business risks and 

promoted risk management 

practices specific to each business 

area within the ATC, was 

maintained. 

• A suite of risk management 

policies, practices and processes 

was enhanced and maintained. 

• A comprehensive internal audit 

program was undertaken by 

KPMG. 

• A comprehensive insurance 

program was maintained. 

• The Commission complied with 

Government and legal guidelines 

in relation to new legislation, 

Government Online and other 

statutory regulations. 

• New Corporate Policies were 

developed and introduced. 

Application Development 

& Support 

The Application Development 

and Support (ADS) team is 

responsible for delivering 

technical solutions required to 

support the processing of the 

ATC business as well as 

supporting all technical aspects 

related to marketing activities. 


• During the year the department 

developed key enhancements to 

support marketing programs on 

australia.com and Business Tourism 

websites, including providing key 

statistical reporting data to 

business users and partners on 

associated marketing initiatives 

and campaigns. 

• The unit also provided maintenance 

and support services for all ATC’s 

website sites, including ATC Online, 

Business Tourism and Trade Events 

Online. 

• Phase one of the Document 

Management, Recordkeeping and 

Archive project, was implemented, 

ensuring on going compliance with 

Federal Government guidelines. 

Information Technology 

and Communications 

The Information Technology & 

Telecommunications (IT&T) Unit 

is responsible for managing the 

helpdesk services for Sydney and 

regional offices; day-to-day 

operations and administration of 

computing facilities; management 

of the telecommunications 

network and web hosting 

contracts for the ATC consumer 

website, australia.com. 


• The department carried out 

migration to a new data 

communications network which 

provided real time communication 

to all ATC offices and linked an 

additional three offices to 

the system. 

• Infrastructure improvements were 

conducted, including the 

implementation of centralised high 

capacity data storage, upgraded 

computer room facilities and 

remote access facilities and an 

upgraded database server for 


• A new Internet Service Provider 

was engaged, which delivered 

improved access speed at greatly 

reduced cost. 

54

Corporate Governance 

The Board of Directors 

The ATC is governed by a 

10-member Board of Directors, 

which reports to the Minister for 

Small Business & Tourism. 

The object of the ATC Board is 

defined by the ATC Act 1987 in 

terms of its principal role, which 

is to: 

• ensure the proper and efficient 

performance of the 

Commission’s functions; and 

• determine the Commission’s 

policy in relation to any matter. 

The ATC Board is responsible 

for a governance framework to 

ensure that it achieves its 

statutory mandate. 

As a public sector agency, the 

ATC must be conversant with the 

general policies of the government 

of the day, as well as be informed 

about key Ministerial directions, 

and Commonwealth guidelines 

on major initiatives that relate 

to the organisation. 

The Board is cognisant of new 

directions and recommendations 

for enhanced Corporate 

Governance and will be reviewing 

the implications of these in 

2003/04. 

The Chairman 

The Chairman and the Managing 

Director are separate 

appointments to ensure 

appropriate accountability and 

greater capacity of the Board 

for independent decision-making. 

The Chairman ensures that 

sufficient Board meetings are held 

to enable it to perform its duties 

responsibly; that appropriate 

agenda items are placed before 

the Board; and exercises control 

over the quality, quantity and 

timeliness of the flow of 

information between 

management and the Board. 

The Chairman is also responsible 

for the conduct of meetings of 

the Board. 

Board meetings 

The Board schedules six regular 

meetings each year. In addition, 

between Board meetings there 

is continuing contact between the 

Chairman and Managing Director 

to discuss major policy and 

operational matters, especially 

when such matters are the 

subject of Board interest, or 

are likely to become so.The 

Board also meets with senior 

management to discuss strategy 

and operational issues. 

The regular Board papers make 

Directors aware of current and 

forthcoming issues relevant to 

the Commission’s operations and 

performance.These papers 

contain the year-to-date financial 

performance of all business 

groups (compared to budget), a 

report from each of the executive 

management team, proposals for 

significant contracts and papers 

relating to particular issues. Senior 

management may also present 

significant matters to the Board. 

Personal and corporate 

integrity 

All directors and employees are 

expected to act with the utmost 

integrity and objectivity, striving 

at all times to enhance the 

reputation and performance of 

the ATC. 

The ATC Board subscribes to the 

code of conduct as recommended 

by the Australian Institute of 

Company Directors.The code 

specifies values and behaviours 

in the areas of fairness, equity, 

lawful obedience, honesty, 

openness, respect, loyalty, integrity, 

protective care, efficiency, personal 

development and leadership with 

which all employees have a 

responsibility to comply. 

The ATC has developed and 

implemented a code of conduct 

for its employees which is 

consistent with these values 

and behaviours. 

Separate policies exist covering 

discrimination, employment, 

harassment, health and safety 

and other business practices 

such as email usage, fraud 

control and security. 

55

Conflicts of interest 

The Board has in place a policy 

and procedures for the disclosure 

and resolution of any matter 

which may give rise to actual or 

potential conflicts between the 

interests of a Director and those 

of the Commission. 

Risk management 

The ATC Board adopts practices 

designed to identify significant 

areas of business risk and to 

effectively manage those risks in 

accordance with the company’s 

risk profile. 

Board Sub-Committees 

The Board carries out certain of 

its duties by delegation to Board 

committees.These committees 

meet regularly and make 

recommendations to the Board 

on issues delegated to them. 

The committees operate under 

terms of reference approved by 

the Board. 

Audit and Finance 

Sub-Committee: 

This sub-committee ensures 

that an effective internal control 

framework exists across the 

ATC.This includes internal 

controls to deal with both the 

effectiveness and efficiency of 

significant business processes. 

The sub-committee also reviews 

accounting policies, risk 

management controls, funds 

management and financial 

statements. 

Human Resources 

Sub-Committee: 

This sub-committee oversees the 

Commission’s human resources 

principles, practices and programs 

with regard to employee terms 

and conditions, management 

development, equal employment 

opportunity and remuneration. 


Sub-Committee 

This subcommittee provides input 

into the Commission’s public 

affairs activities, including the 

strategies for communicating with 

key stakeholder groups, such as 

industry, media and government. 

Record of Board members 

and attendance 

The Board met seven times 

during the year in Sydney, Broome, 

Lorne,Tasmania and Adelaide and 

had an aggregate attendance of 

Directors of 94 per cent, the 

same as 2001/02. 

Board members also represented 

the ATC at both industry and 

general forums. 

56

Record of Board members and attendance 

Member Date of appointment / Expiry of appointment Board meetings 

reappointment attendance 2002/03 

Mr Nick Evers 

Chairman 24.10.02 23.10.05 7 

Mr Tony Clark 

Deputy Chairman 14.08.00 13.08.03 7 

Mr Ken Boundy 

Managing Director 23.05.01 At Board’s pleasure 7 

Mr Paul Ah Chee 

Director 14.08.00 13.08.03 6 

Mrs Cinzia Burnes 

Director 14.08.00 13.08.03 5 

Dr Ken Chapman 

Director 14.08.00 13.08.03 7 

Mr Peter Hurley 

Director 14.08.00 13.08.03 7 

Ms Kate Lamont 

Director 14.08.00 13.08.03 7 

Mr David Mortimer 

Director 15.11.02 14.11.05 6 

Mr Mark Paterson 

Government member 13.05.02 At Minister’s pleasure 4 

Mr David Mazitelli 

Alt Government Member 11.07.93 11.04.03 3 

Ms Patricia Kelly 

Alt Government Member 13.05.03 At Minister’s pleasure 0 

Record of Board sub-committees 

Sub-committee Audit & Finance Human Resources Public Affairs 

members Sub-Committee Sub-Committee Sub-Committee 

POSITION ATTENDANCE 2002/03 POSITION ATTENDANCE 2002/03 POSITION ATTENDANCE 2002/03 

Nick Evers Member 3 Member 1 Member 1 

Tony Clark Chairman 3 

David Mortimer Member 3 

Ken Boundy Member 3 Member 1 Member 1 

David Mazitelli (1) Chairman 1 

Paul Ah Chee Member 1 

Kate Lamont Member 1 

Peter Hurley Member 1 

Cinzia Burnes Chairman 1 

Notes: (1) Alternate Government Member 

57

Directors of the Australian Tourist Commission 

as at 30 June 2003 

Mr Peter Hurley 

Mr Ken Boundy 


Mr Paul Ah Chee 

Ms Kate Lamont 

Mr Tony Clark AM 

Deputy Chairman 

Appointed to the 

Board in August 2000. 

Director, 

P& J Hurley Pty Ltd, 

Independent Gaming 

Corporation Ltd, 

Hurleys Arkaba 

Hotel Pty Ltd, 

AHA Properties Ltd, 

Commodore Motel 

Mt Gambier Pty Ltd, 

Golden Gateway 

Tavern Pty Ltd, 

Wilhur Pty Ltd, 

Hospitality Group 

Training Inc, South 

Australian Tourism 

Commission, Adelaide 

Football Club 

Appointment current 

to 14 August 2003. 

Appointed Managing 

Director in June 2001. 

Director, 

Australian Tourism 

Export Council, 

Poldent Pty Ltd 


at Board’s pleasure. 

Mr. David Mortimer 

(not in photo) 

Appointed to 

the Board in 

September 1997. 

Chairman, 

Citect Corporation 

Limited, Crescent 

Capital Partners, 

MIA Ltd 

Deputy Chairman, 

Australia Post 

Non-Executive 

Director, 

Petsec Energy Ltd, 

Leighton Holdings Ltd, 

Adsteam Marine Ltd, 

Macquarie 

Infrastructure 

Investment 

Management Limited, 

Garvan Institute of 

Medical Research, 

Arrow Pharmaceuticals 

Limited 


to 14 November 2005. 



Manager, 

Aboriginal Arts & 

Cultural Centre. 

Director, 

Aboriginal Australia 

Arts & Culture 

Centre, 

Destours Pty Ltd, 

South Australian 

Museum, Layata 

Inkeme Trust. 





Director, 

Lamonts City Pty Ltd, 

K. Lamont Pty Ltd, 

Navera Pty Ltd 





Chairman, 

Maritime Industry 

Finance Company Ltd 

Director, Amalgamated 

Holdings Limited, 

Carlton Investments 

Limited, Cumnock 

Coal Limited, Ramsay 

Health Care Ltd,Telstra 

Corporation Ltd 



58

Mr Nick Evers 

Chairman 

Ms Cinzia Burnes 

Dr Kenneth 

Chapman 

Mr Mark Paterson 

Ms Patricia Kelly 



Board in May 2003. 

Head of Division, 

Department of 

Industry,Tourism 

and Resources 

Board Member, See 

Australia 


at Minister’s pleasure. 

Mr David Mazitelli 


Alternate Government 

Member 


Board in July 1993. 

Head,Tourism Strategy 

Group, Department of 

Industry,Tourism and 

Resources. 

Director, See Australia, 

Tourism Training 

Australia, Australia 

Quality Council 

Resigned April 2003. 

Appointed to 

the Board in 

October 1999. 

Chairman, 

TT Line Company 

Pty Ltd, Abalone Farms 

Australia Pty Ltd 


to 23 October 2005. 


Board in August 2000 

Director, 

The Australian 

Outback Travel 

Company Pty Ltd, 

Travel Point Pty Ltd, 

Fly-Drive Australia Pty 

Ltd, Hotelbank Pty Ltd, 

AOT (NZ) Limited, 

Pacific Leisure Group 

Pty Ltd, Longbush 

Nominees Pty Ltd, 

Burnewang Pastoral 


AOTG Professional 

Services Pty Ltd, 

Port Canna Pty Ltd, 

The Burnes Groups 

Pty Ltd, Australian 

Incentive Travel 


Travelset.com Pty Ltd 





Chairman, 

Far North Queensland 

Hospital Foundation 

Deputy Chairman, 

Queensland Tourism 

Industry Council 

Director, 

Armcape Pty Ltd, 

Brinsmead Shopping 

Plaza Pty Ltd, Cairns 

Developers Pty Ltd, 

Chapman Resorts 

Pty Ltd, Cowboys 

Leagues Club Ltd, 

Dimitra Pty Ltd, 

Divalin Pty Ltd, Emiluk 

Developments Pty Ltd, 

Emiluk Pty Ltd, 

Far North Queensland 

Promotion Bureau Ltd 

(Trading as Tourism 

Tropical North 

Queensland), 

GFB Fisheries Ltd, 

G E Chapman Pty Ltd, 

Geomar Pty Ltd, 

Geomar 

Superannuation Pty 

Ltd, Geomar Trading 

Pty Ltd, 

GFB Development, 

Honeycombes 

Investment Group 

Pty Ltd, Hypha Pty Ltd, 

Nameha Pty Ltd, 

Southbank 

Developments Pty Ltd, 

Skyrail-ITM (Asia) Ltd, 

Skyrail-ITM 

(Hong Kong) Ltd, 

THsfConsortium Pty 

Ltd,Tjapukai Pty Ltd, 

Triamid Pty Ltd, 

International Tourism 

Management Pty Ltd 

(Trading as : 

Skyrail-ITM), 

Skyrail Pty Ltd 

(Trading name: Skyrail 

Rainforest Cableway) 

Alternate Director, 

Rainforest CRC 




Board in January 2002. 

Secretary, 

Department of 

Industry,Tourism and 

Resources 

Director, 

AUSTRADE, Export 

Finance Insurance 

Corporation, 

Hanford R Pty Ltd 


at Minister’s pleasure. 

59

Management and Organisation Structure 

as at 30 June 2003 

Minister 

Board 


Ken Boundy 

EGM Eastern 

Hemisphere 

Richard Beere 

EGM Western 

Hemisphere 

Andrew McEvoy 

EGM Marketing 

Development 

Stephen O’Neill 

EGM Corporate 

Services 

John Hopwood 

EGM Organisation 

Development 

Amanda Green 


General Manager 

North Asia 


South East Asia 


Japan 

Regional Marketing 

Regional Corporate 

Services 

Business 

Development 


Europe 


Americas 

Regional Corporate 

Services 

Business 

Development 

Partnership 

Marketing 

Advertising 

and Design 

International Media 

Market Insights 

Online Program 

Management 

Segment 

Development 

Trade Events 

Finance 

Risk Management 

& Administration 

Application 

Development 

& Support 

Information 

Technology & 


Corporate Strategy 

Tourism & Aviation 

Strategy 

Operational 

Effectiveness 

People & 



Corporate 


Government 

Relations 

Industry 


Partnership 

Marketing 

60

Ecologically Sustainable Development 

The ATC has a statutory 

responsibility in relation to 

Ecologically Sustainable 

Development. 

The Australian Tourist 

Commission Act (1987) defines 

the ATC’s role as: 

Section 6 (c) 

To work with other relevant 

agencies to promote the 

principles of ecologically 

sustainable development set 

out in subsection 21 (3) of the 

Natural Heritage Trust of 

Australia Act 1997 and to seek to 

raise awareness of the social and 

cultural impacts of international 

tourism in Australia. 

Section 7 (e) 

To closely monitor and report 

the effects of international 

tourism on Australia’s natural 

environment and society. 

Section 8 (b) 

‘Powers of the Commission’ 

To provide information and 

advice to assist sensitive, 

environmentally and socially 

sound development of the 

Australian tourism industry. 

Section 8 (c) 

To undertake research and 

disseminate information obtained 

from the research. 

Section 13 (3) – 

Appointment of Members 

to the Board of Directors 

At least one of the persons 

appointed as a member by the 

Minister shall be a person who 

has environmental or sociological 

expertise relevant to the tourism 

industry. 

In February 2003 the Board 

approved a sustainable tourism 

action plan for the ATC.This plan 

provides a framework for the 

ATC to meet its statutory 

responsibilities regarding 

sustainable tourism, and wherever 

possible, contribute to ensuring 

the continued viability of the 

industry over the long-term 

through sustainable and 

responsible tourism marketing 

practices.The ATC’s approach to 

developing a plan for sustainable 

tourism is based on: 

• Developing beneficial partnerships 

which contribute to the long-term 

environmental, social and economic 

sustainability of the tourism 

industry; 

• Developing a reliable knowledge 

base to enable effective decision 

making processes which integrate 

both long-term and short-term 

economic, environmental and social 

considerations; 

• Creating a sustainable tourism 

focus for ATC marketing activities; 

• Creating a high profile for best 

practice sustainable tourism 

product; and 

• Improving the ATC’s corporate 

environmental performance 


• The ATC participated in the 

Sustainable Tourism Roundtable 

established in 2001/02 with the 

Department of Industry,Tourism 

and Resources (DITR). 

• The ATC has participated in 

discussions with Environment 

Australia (incorporating the 

Australian Heritage Commission); 

DITR; the Indigenous Tourism 

Leaders Group; the Bureau of 

Tourism Research; Cooperative 

Research Centre for Sustainable 

Tourism; Ecotourism Australia and 

Green Globe 21.The Commission 

also joined the National Tourism 

and Heritage Taskforce of the 

Environment Protection and 

Heritage Council. 

• Information on the ATC’s position 

on sustainable tourism, with links 

to agencies and resources, were 

added to the ATC’s industry 

website, ATC Online. 

• The ATC worked with Ecotourism 

Australia to profile accredited 

ecotourism product at ATE. 

• A review of the ATC’s 

environmental management 

systems and practices was 

completed in June 2003. As a 

result, the ATC is in the process 

of updating its environmental 

management practices. 

• Consumer information on 

responsible tourism was added 

to the ATC’s consumer website, 


61

International visitor arrivals 

Visitors by country of residence 

Country of residence 

Six months to June Year ended 30 June Month of June 

2002 2003 03/02 2002 2003 03/02 2002 2003 03/02 

‘000 ‘000 % change ‘000 ‘000 % change ‘000 ‘000 % change 

Oceania & Antarctica 

Fiji 10.7 11.2 5 24.0 23.7 -2 1.7 1.8 4 

New Caledonia 16.2 18.3 13 29.1 32.6 12 1.3 2.3 73 

New Zealand 351.1 354.1 1 787.7 793.1 1 70.1 67.9 -3 

Papua New Guinea 16.6 12.0 -28 35.7 26.7 -25 2.8 2.3 -18 

Other 14.5 13.2 -9 31.0 28.7 -7 2.5 2.1 -15 

Total 409.1 408.9 0 907.5 904.7 0 78.4 76.3 -3 

Europe & the Former USSR 

Austria 8.2 8.0 -2 18.9 18.9 0 0.7 0.8 9 

Belgium 4.3 4.1 -5 10.8 10.6 -2 0.5 0.5 16 

Denmark 8.7 8.4 -3 18.3 18.6 2 0.9 1.2 27 

Former USSR & Baltic States 4.0 3.6 -10 9.3 8.5 -8 0.4 0.4 -12 

France 23.0 19.7 -14 52.0 46.3 -11 3.2 2.7 -15 

Germany 60.0 59.2 -1 136.8 134.0 -2 5.9 4.8 -18 

Greece 3.4 1.8 -48 7.5 5.4 -28 0.6 0.3 -59 

Ireland 22.8 22.0 -4 50.6 47.2 -7 4.3 4.1 -5 

Italy 15.5 14.7 -5 41.1 42.5 3 2.4 1.7 -29 

Netherlands 22.9 22.0 -4 54.6 52.1 -5 2.3 2.4 5 

Norway 8.1 8.7 7 16.4 17.5 6 0.9 1.0 8 

Spain 4.8 4.4 -8 12.7 12.1 -5 0.7 0.6 -2 

Sweden 13.5 14.3 6 30.2 31.8 5 1.3 1.3 7 

Switzerland 18.1 17.8 -2 43.4 41.2 -5 1.7 1.6 -9 

United Kingdom 302.2 303.8 1 627.1 644.2 3 27.0 28.9 7 

Other 19.8 16.6 -16 42.8 39.6 -7 2.0 2.2 9 

Total 539.2 529.1 -2 1,172.2 1,170.4 0 54.9 54.6 0 

The Americas 

Canada 47.0 42.7 -9 93.0 86.5 -7 4.0 4.1 1 

United States of America 218.1 207.1 -5 424.4 423.5 0 39.7 38.5 -3 

Other 16.0 12.3 -23 33.6 27.1 -19 2.4 1.9 -21 

Total 281.2 262.1 -7 551.1 537.1 -3 46.2 44.5 -4 

Africa (excluding North Africa) 

South Africa 24.8 21.4 -14 55.7 47.5 -15 3.7 3.3 -10 

Other 8.1 7.0 -14 17.0 15.2 -11 1.1 0.9 -21 

Total 32.9 28.4 -14 72.7 62.7 -14 4.8 4.2 -13 

62

Middle East & North Africa 

Israel 8.1 6.2 -23 15.7 13.2 -16 0.8 0.6 -30 

Other 13.8 14.4 4 40.6 37.0 -9 2.7 2.6 -5 

Total 21.9 20.6 -6 56.3 50.2 -11 3.6 3.2 -11 

Southeast Asia 

Brunei 3.8 3.5 -7 7.9 6.9 -13 0.4 1.0 184 

Indonesia 41.7 39.2 -6 94.7 86.9 -8 7.4 7.9 7 

Malaysia 76.9 60.3 -22 154.3 142.4 -8 9.6 8.7 -9 

Philippines 15.8 12.7 -19 29.9 25.4 -15 1.8 1.9 5 

Singapore 140.5 115.2 -18 295.8 261.6 -12 31.8 30.3 -5 

Thailand 43.1 35.9 -17 80.0 75.5 -6 4.6 4.8 5 

Other 10.1 8.9 -12 20.2 19.0 -6 1.4 1.3 -13 

Total 331.8 275.8 -17 682.7 617.7 -10 57.0 56.0 -2 

Northeast Asia 

China (excl. SARs and Taiwan) 92.1 79.2 -14 172.3 177.1 3 10.5 4.5 -57 

Hong Kong (SAR of China) 72.3 62.1 -14 148.6 140.7 -5 10.5 12.9 24 

Japan 335.6 278.8 -17 659.2 658.6 0 50.2 29.5 -41 

Korea 90.4 96.4 7 181.1 195.8 8 11.5 14.1 23 

Taiwan 52.2 35.6 -32 99.1 80.8 -18 7.5 3.8 -50 

Other 0.9 0.8 -11 2.1 1.8 -12 0.1 0.1 3 

Total 643.5 552.8 -14 1,262.4 1,254.8 -1 90.3 65.0 -28 

Southern Asia 

India 25.2 21.4 -15 47.3 41.2 -13 3.3 3.6 7 

Other 6.8 7.0 3 14.1 14.1 0 0.8 1.0 18 

Total 32.0 28.4 -11 61.4 55.3 -10 4.2 4.5 9 

Not stated 1.0 1.2 18 2.0 2.7 34 0.1 0.1 -1 

Total 2,292.7 2,107.3 -8 4,768.3 4,655.8 -2 339.4 308.3 -9 

Source: Australian Bureau of Statistics, Overseas Arrivals and Departures , 3401.0. ABS data used with permission from the Australian Bureau of Statistics 

Month of June Six months to June Year ended 30 June 

63

Financial 

Reports 

65

Independent Audit Report 

Matters relating to the Electronic Presentation of the Audited Financial Report 

This audit report relates to the financial report of the Australian Tourist Commission for the year ended 30 June 2003 included 

on the Australian Tourist Commission’s web site.The Chairman is responsible for the integrity of the Australian Tourist 

Commission’s web site. 

The audit report refers only to the statements named below. It does not provide an opinion on any other information, which 

may have been hyper linked to/from the audited financial report. 

If the users of this report are concerned with the inherent risks arising from electronic data communications they are advised 

to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report 

presented on this web site. 

Scope 

I have audited the financial statements of the Australian Tourist Commission for the year ended 30 June 2003.The financial 

statements comprise: 

• Statement by Directors; 

• Statements of Financial Performance, Financial Position and Cash Flows; 

• Schedules of Commitments and Contingencies; and 

• Notes to and forming part of the Financial Statements. 

The members of the Board are responsible for the preparation and presentation of the financial statements and the information 

they contain. I have conducted an independent audit of the financial statements in order to express an opinion on them to you. 

The audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate 

the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material 

misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other 

disclosures in the financial statements and the evaluation of accounting policies and significant accounting estimates.These 

procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are 

presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia 

and statutory requirements so as to present a view which is consistent with my understanding of the Commission’s financial 

position, its financial performance and its cash flows. 

The audit opinion expressed in this report has been formed on the above basis. 

Audit Opinion 

In my opinion the financial statements: 

(i) have been prepared in accordance with Finance Minister’s Orders made under the Commonwealth Authorities and 

Companies Act 1997; and 

(ii) give a true and fair view, in accordance with applicable Accounting Standards and other mandatory professional reporting 

requirements in Australia and the Finance Minister’s Orders, of the financial position of the Australian Tourist Commission 

as at 30 June 2003, and its financial performance and cash flows for the year then ended. 

Australian National Audit Office 

P Hinchey 

Senior Director 

Delegate of the Auditor-General 

Sydney 

15 August, 2003 

66 

POBox A456 Sydney South NSW 1235 

130 Elizabeth Street 

SYDNEY NSW Phone (02) 9367 7100 Fax (02) 9367 7102

Statement by Directors 

For the year ended 30 June 2003 Australian Tourist Commission 

In our opinion, the attached financial statements for the year ended 30 June 2003 give a true and fair view of the matters 

required by the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997. 

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Commission will be able 

to pay its debts as and when they become due and payable. 

Nick Evers 

Ken Boundy 

Chairman 


15 August 2003 15 August 2003 

67

Statement of Financial Performance 


2003 2002 

Notes $’000 $’000 

Revenue 

Revenue from ordinary activities 

Revenues from government 4a 99,926 97,906 

Advertising 4b 11,793 12,443 

Goods and Services 4c 271 391 

Industry contribution 4d 7,886 9,239 

Interest 4e 1,330 1,101 

Net foreign exchange gains 4 f 115 - 

Revenue from sale of assets 4g 9 33 

Other 4h 534 1,171 

Revenue from ordinary activities 121,864 122,284 

Expense 

Expenses for ordinary activities 

Employees 5a 22,662 26,765 

Suppliers 5b 88,806 87,592 

Depreciation and amortisation 5c 2,809 1,603 

Write-down of assets 5d 15 121 

Value of assets sold 4g 28 95 

Net foreign exchange losses 5e - 230 

Other 3,395 4,159 

Expenses from ordinary activities 117,715 120,565 

Net surplus 4,149 1,719 

Net credit/(debit) to asset revaluation reserve 78 5 

Total revenues, expenses and valuation adjustments recognised directly in equity 78 5 

Total changes in equity other than those resulting from transactions with 

owners as owners 4,227 1,724 

The above statement should be read in conjunction with the accompanying notes 

68

Statement of Financial Position 

As at 30 June 2003 Australian Tourist Commission 


Notes $’000 $’000 

Assets 

Financial assets 

Cash 6a 2,797 11,547 

Receivables 6b 13,610 4,663 

Investments 6d 220 235 

Other 6c 1,239 956 

Total financial assets 17,866 17,401 

Non-financial assets 

Plant & equipment 7a & b 1,437 1,976 

Intangibles 7a & b 2,718 3,800 

Total non-financial assets 4,155 5,776 

Total assets 22,021 23,177 

Liabilities 

Provisions 

Capital use charge 1.5 & 8a 388 172 

Employees 8b 3,026 3,550 

Total provisions 3,414 3,722 

Payables 

Suppliers 8c 9,085 12,929 

Other 8d 656 879 

Total payables 9,741 13,808 

Total liabilities 13,155 17,530 

NET ASSETS 8,866 5,647 

Equity 

Reserves 9 642 563 

Accumulated surplus 9 8,224 5,084 

Total equity 8,866 5,647 

Current assets 17,866 17,401 

Non-current assets 4,155 5,776 

Current liabilities 12,197 16,429 

Non-current liabilities 959 1,101 


69

Statement of Cash Flows 



Notes $’000 $’000 

Operating Activities 

Cash received 

Goods and Services 21,113 23,305 

Appropriations 89,926 97,906 

Interest 1,330 1,101 

Total cash received 112,369 122,312 

Cash used 

Employees (23,187) (28,095) 

Suppliers (92,467) (85,456) 

Other (3,369) (4,286) 

GST paid to ATO (27) (321) 

Total cash used (119,050) (118,158) 

Net cash from / (used by) operating activities 10b (6,681) 4,154 

Investing Activities 

Cash received 

Proceeds from sales of property, plant and equipment 9 33 

Total cash received 9 33 

Cash used 

Purchase of property, plant and equipment (259) (289) 

Purchase of software and intangibles (1,026) (1,894) 

Purchase of equity instrument - (150) 

Total cash used (1,285) (2,333) 

Net cash from / (used by) investing activities (1,276) (2,300) 

Financing Activities 

Cash Used 

Capital use charge paid (793) (587) 

Total cash used (793) (587) 

Net cash from / (used by) financing activities (793) (587) 

Net increase / (decrease) in cash held (8,750) 1,267 

Cash at the beginning of the reporting period 11,547 10,280 

Cash at the end of the reporting period 10a 2,797 11,547 


70

Schedule of Commitments 



Notes $’000 $’000 

By Type 

Other Commitments 

Operating leases 1 10,432 12,024 

Other commitments 2 60,235 65,171 

Total commitments payable 70,667 77,195 

Commitments Receivable 3 (620) (600) 

Net commitments 70,047 76,595 

By Maturity 

Operating lease commitments 

One year or less 3,649 4,275 

From one to five years 4,214 5,168 

Over five years 2,569 2,581 

10,432 12,024 

NB: Commitments are GST inclusive where relevant. 

1 Operating leases comprise of leases for office accommodation and computer leases. 

2 Other commitments comprise of amounts payable under project agreements in respect of which the recipient is yet to either perform the services required 

or meet eligibility conditions. 

3 Commitments receivable comprises consumption tax recoverable. 

The above schedule should be read in conjunction with the accompanying notes 

71

Schedule of Contingencies 


There were no known contingencies as at 30 June, 2003. 

The above schedule should be read in conjunction with the accompanying notes 

72

Notes to and forming part of the Financial Statements 


Note 

Description 

1 Summary of significant accounting policies 

2 Reporting of Outcomes 

3 Economic dependency 

4 Operating revenues 

5 Operating expenses 

6 Financial assets 

7 Non-financial assets 

8 Provisions and payables 

9 Equity 

10 Cash flow reconciliation 

11 Remuneration of directors 

12 Remuneration of officers 

13 Remuneration of auditors 

14 Average Staffing level 

15 Financial instruments 

16 Contingent liabilities and assets 

73



Note 1 Summary of significant accounting policies 

1.1 Basis of accounting 

The financial statements are required by clause 1 (b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 

and are a general purpose financial report. 

The statements have been prepared in accordance with: 

• Finance Minister’s Orders (being the Commonwealth Authorities and Companies (Financial Statements for reporting periods 

ending on or after 30 June 2003) Orders); 

• Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and 

• Consensus Views of the Urgent Issues Group. 

The financial statements have been prepared on an accrual basis and are in accordance with historical cost convention, except 

for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices 

on the results or on the financial position of the Commission. 

Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future 

economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. 

Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow or 

consumption or loss of economic benefits has occurred and can be reliably measured. 

1.2 Changes in accounting policy 

The accounting policies used in the preparation of these financial statements are consistent with those used in 2001-2002, 

except in respect of: 

• Measurement of certain employee benefits at nominal amounts (refer to Note 1.6); 

• The initial revaluation of property plant and equipment on a fair value basis (refer to Note 1.10); and 

• The imposition of an impairment test for non-current assets carried at cost (refer to Note 1.10 and 1.11). 

1.3 Reporting by outcomes 

A comparison of Budget and Actual figures by outcome specified in the Appropriation Acts relevant to the Commission is 

presented in Note 2. Any intra-government costs included in the figure ‘net cost to Budget outcomes’ are eliminated in 

calculating the actual budget outcome for the Government overall. 

1.4 Revenue 

The revenues described in this Note are revenues relating to the core operating activities of the Commission. 

Revenue from the sale of goods is recognised upon the delivery of goods to the customers. 

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. 

Revenue from the disposal of non-current assets is recognised when control of the assets has passed to the buyer. 

Revenue from rendering of services is recognised by reference to the stage of completion of contracts or other agreements to 

provide services.The stage of completion is determined according to the proportion that costs incurred to date bear to the 

estimated total costs of the transaction. 

Revenue from Government – Output Appropriations 

The full amount of the appropriation for departmental outputs for the year is recognised as revenue. 

Resources Received Free of Charge 

Services received free of charge are recognised as revenue when and only when a fair value can be reliably determined and 

the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. 

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset 

qualifies for recognition. 

74



1.5 Transactions by the Government as Owner 

Equity Injections 

Amounts appropriated by the Parliament as equity injections are recognised as ‘contributed equity’ in accordance with the 

Finance Minister’s Orders. 

Capital Use Charge 

A Capital Use Charge is imposed by the Government on the net assets of the Commission.The Charge is accounted for as a 

dividend to Government. 

In accordance with the recommendations of a review of Budget Estimates and Framework, the Government has decided that 

the Charge will not operate after 30 June 2003.Therefore, the amount of the charge payable in respect of 2003 is the amount 

appropriated (2002: 11% of adjusted net assets). 

1.6 Employee benefits 

Benefits 

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. 

Liabilities for wages and salaries (including non-monetary benefits) and annual leave are measured at their nominal amounts. 

Other employee benefits expected to be settled within 12 months of the reporting date are also measured at their 

nominal amounts. 

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.This is a change in 

accounting policy from last year required by initial application of a new Accounting Standard AASB 1028 from 1 July 2002. 

All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in 

respect of services provided by employees up to the reporting date. 

Leave 

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for 

sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is 

estimated to be less than the annual entitlement for sick leave. 

The leave liabilities are calculated on the basis of employees’ remuneration, including the Commission’s employer 

superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on 

termination. 

The liability for long service leave has been determined by reference to the present value of the estimated future cash flows to 

be made in respect of all employees at 30 June 2003.The estimate of the present value of the liability takes into account 

attrition rates and pay increases through promotion and inflation. 

Separation and redundancy 

Provision is made for separation and redundancy benefit payments in cases where positions have been formally identified 

as excess to requirements, and a reliable estimate of the amount payable, which is consistent with local requirements, can 

be determined. 

Superannuation 

Australia 

Employees of the Commission are members of the Commonwealth Superannuation Scheme and the Public Sector 

Superannuation Scheme.The liability for their superannuation benefits is recognised in the financial statements of the 

Commonwealth and is settled by the Commonwealth in due course. 

The Commission makes employer contributions to the Commonwealth at rates determined by the actuary to be sufficient to 

meet the cost to the Commonwealth of the superannuation entitlements of the Commission’s employees. 

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year. 

The contribution rate for the Commission as a Group 2 Authority was 18.9% (2001/02: 7.1%) – Commonwealth 

Superannuation Scheme, 10.8% (2001/02: 9.7%) – Public Sector Scheme, of salaries in 2002/03. In addition, the Commission 

remitted Employer Productivity Superannuation Contributions to ComSuper for all employees.The contribution rate is variable 

and banded according to earnings ranging from 2% to 3% (2001/02: 2% to 3%) of salaries in 2002/03. 

75



Asia 

In accordance with local regulations the Commission provides superannuation for its locally engaged staff in Hong Kong with 

HSBC Life (International).The contribution rate is 11.5 % of salaries in 2002/03 (2001/02, 11.5%) for staff who joined before 1 

December, 2000.The contribution rate is 5% of salaries up to a maximum contribution of HK$1,000 per month in 2002/03 for 

those staff who joined after 1 December, 2000 under the new mandatory provident fund regulations. 

In Malaysia the Commission provided superannuation for its locally engaged staff with the Employee Provident Fund where the 

contribution rate is 12% of salaries in 2002/03 (2001/02, 12%). 

In Singapore the Commission provided superannuation for its locally engaged staff with the Central Provident Fund where the 

contribution rate is 16% of salaries up to a salary ceiling of S$6,000 per month in 2002/03 (2001/02, 20%). 

In Korea the Commission provided superannuation for its locally engaged staff with funds run by local banks, the contribution 

rate is 16% of salaries in 2002/03 (2001/02, 14.5%). 

In Taiwan the Commission provided superannuation for its locally engaged staff with HSBC Life (International) Ltd where the 

contribution rate is 8% of salaries in 2002/03 (2001/02, 8%). 

In Thailand, superannuation is not mandatory, however the Commission does include 3% in the staff’s salary. Once 

superannuation does become mandatory, the 3% will be contributed to the chosen body. 

In China the Commission provided superannuation for its locally engaged staff with the local official agency FESCO where the 

monthly contribution is HKD 2,860 per staff member in 2002/03 (2001/02 HKD 2,470). 

In Japan the Commission accrued retirement benefit of 50% of the latest base salary times number of years of service for its 

locally engaged staff. 

America 

The Commission provides an optional employee retirement benefit for its locally engaged staff in Los Angeles with Mutual of 

America.The ATC matches employee contribution up to a maximum of 3% of gross salary in 2002/03 (2001/02, 3%) and an 

annual limit of US$ 8,000 for employees less than 50 years of age. For employees who will be 50 years of age or older, the 

limit is US$ 9,000 per annum. 

These limits include both employer and employee contributions. 

Europe 

For United Kingdom, in accordance with locally engaged terms and conditions of employment the Commission provides a 

group personal pension scheme for its locally engaged staff in London with Standard Life Assurance Co.The contribution rate is 

variable and banded according to age and earnings ranging from 4% to 18% of salaries in 2002/03 (2001/02, 4% to 18%). 

In Germany the Commission contributed an inclusive social amount to the statutory insurance government fund for its locally 

engaged staff, the Commission matches staff contributions on a 1:1 basis.The contribution rate is not separately nominated. 

New Zealand 

In New Zealand, there is no superannuation contribution requirement for locally engaged staff. 

1.7 Leases 

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks 

and benefits incidental to ownership of leased non-current assets, and operating leases, under which the lessor effectively 

retains substantially all such risks and benefits. 

The Commission has not entered into any finance leases. 

Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the leased 

assets. 

1.8 Cash 

Where appropriate, monies not immediately required by the Commission are invested in an approved manner in accordance 

with section 18 of the Commonwealth Authorities and Companies Act 1997. 

Cash means notes and coins held and any deposits held at call with a bank or financial institution and investments in money 

market instruments. 

76



1.9 Financial instruments 

Accounting policies for financial instruments are stated at note 15. 

1.10 Property, plant and equipment 

Asset recognition threshold 

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for 

purchases costing less than $5,000, which are expended in the year of acquisition (other than where they form part of a group 

of similar items which are significant in total). 

Revaluations 

Plant and equipment are carried at valuation. Revaluations undertaken up to 30 June 2002 were done on a deprival basis; 

revaluations since that date are at fair value.This change in accounting policy is required by Australian Accounting Standard 

AASB 1041 Revaluation of Non-Current Assets. 

Leasehold improvement and Furniture and fittings were revalued in 2002-03.The financial effect for 2002-03 of this change in 

policy relates to those assets to be recognised at fair value at 30 June 2003.The financial effect by class for the assets class 

revalued is as follows: 

Asset Class Adjustment $000 Contra Account 

Leasehold Improvements 188 Asset Revaluation Reserve 

Furniture and fittings (109) Asset Revaluation Reserve 

Total financial effect was a net credit to the asset revaluation reserve of $ 78,988. 

Accounting Standard AAS 6 Accounting Policies requires, where practicable, presentation of the information that would have 

been disclosed in the 2001-02 Statements had the new accounting policy always been applied. It is impracticable to present 

this information. 

Frequency 

Plant and equipment are each revalued progressively by asset type in successive three-year cycles as follows: 

• leasehold improvements were revalued in full in 1998-99 and in 2002-03; 

• plant and equipment (P&E) assets were initially revalued during the financial year 1998-99 by type of asset. In 2001-02 all 

information technology assets were revalued; 

• in 2000-01, other equipment was revalued; and 

• in 2002-03, furniture and fittings were revalued. 

Assets in each class acquired after the commencement of a progressive revaluation cycle are not captured by the progressive 

revaluation then in progress. 

Conduct 

All valuations are conducted by an independent qualified valuer. 

Recoverable amount test 

From 1 July 2002, Schedule 1 no longer requires the application of the recoverable amount test in AAS 10 Recoverable 

Amount of Non-current Assets to the assets of the Commission when the primary purpose of the asset is not the generation of 

net cash inflows. 

No property plant and equipment assets have been written down to recoverable amount per AAS 10. Accordingly, the change 

in policy has had no financial effect. 

Depreciation and Amortisation 

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful 

lives to the Commission using, in all cases, the straight line method of depreciation. 

Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements 

or the expected unexpired period of the lease. 

77



Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are 

recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change 

in prices only when assets are revalued. 

Depreciation and amortisation rates applying to each class of depreciable asset are based on the following useful lives: 


Leasehold Improvements Lease term Lease term 

Furniture and Fittings 3 to 10 years 3 to 10 years 

Computer Equipment 3 to 5 years 3 to 5 years 

Motor Vehicles and Other Equipment 3 to 10 years 3 to 10 years 

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 7. 

1.11 Intangible assets 

The Commission’s intangibles comprise internally developed software and purchase of licensed software for internal use.These 

assets are carried at cost. 

From 1 July 2002, Schedule 1 no longer requires the application of the recoverable amount test in AAS 10 Recoverable Amount 

of Non-current Assets to the assets of the Commission when the primary purpose of the asset is not the generation of net cash 

inflows. 

However Schedule 1 now requires such assets, if carried on the cost basis, to be assessed for indications of impairment.The 

carrying amount of impaired assets must be written down to the higher of its net market selling price or depreciated 

replacement cost. 

All software assets were assessed for impairment as at 1 July 2002. None were found to be impaired. 

Intangible assets are amortised on a straight-line basis over their anticipated useful lives. 

Useful lives are: 


Software 2 to 5 years 3 to 5 years 

Trade Marks 10 years 10 years 

1.12 Taxation 

The Commission is exempt from all forms of taxation except Fringe Benefits Tax and the Goods and Services Tax (GST). 

Revenues, expenses and assets are recognised net of GST: 

• except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and 

• except for receivables and payables. 

The Commission is not subject to exemption from any foreign taxation laws relative to its overseas operations. 

78 

1.13 Foreign currency 

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign 

currency receivables and payables are translated at the exchange rate current as at balance date and any exchange differences 

are brought to account in the Statement of Financial Performance. 

1.14 Insurance 

The Commission has insured for risks through the Government’s insurable risk managed fund, called ‘Comcover’. Workers 

compensation is insured through the Government’s Comcare Australia. 

1.15 Comparative figures 

Comparative figures have been adjusted to conform with changes in presentation in these financial statements where required.



1.16 Rounding 

Amounts are rounded to the nearest $1,000 except in relation to the following: 

• remuneration of directors; 

• remuneration of officers (other than directors); and 

• remuneration of auditors. 

Note 2. Reporting of Outcomes 

The Commission operates in Australia and overseas to promote tourism to Australia. Its revenues are sourced primarily within 

Australia via Parliamentary appropriations and industry revenues.The Commission’s activities to promote Australia as an 

international tourist destination are primarily focused overseas (the majority of expenditures are made via the Commission’s 

international offices in Europe, Asia, America and New Zealand). 

2a Outcomes of the Commission 

The Commission is structured to meet one outcome: 

Outcome 1: To promote Australia as a destination for visitors from all around the world and to win a greater share of the 

global tourism market.The Commission’s statutory objectives are: 

• to increase the number of visitors to Australia from overseas; 

• to maximise the benefits to Australia from overseas visitors; and 

• to promote the principles of ecologically sustainable development and to raise awareness of the social and cultural 

impacts of international tourism in Australia. 

Two Output Groups are identified for this outcome: 

Output Group 1: Consumer Marketing – The ATC promotes Australia in a number of innovative ways: television, cinema, print 

and outdoor advertising, the internet, media relations, public relations and by hosting international journalists in Australia.The 

ATC also provides information for travellers in both printed and electronic form. 

Output Group 2: Trade Marketing – The ATC facilitates the communication of timely, relevant international trade market 

intelligence to the inbound industry; provides effective opportunities for industry participation in trade events; and undertakes 

product and segment development in conjunction with ATC regions, State and Territory tourism organisations and all sectors of 

the industry. 

2b Net Cost of Outcome Delivery 

Outcome 1 


$000 $000 

Total Departmental expenses 117,706 120,532 

Cost recovered from provision of goods and services to the non-government sector 271 391 

Total Department costs recovered 271 391 

Other external revenues 

Advertising 11,793 12,443 

Industry contribution 7,886 9,239 

Interest 1,330 1,101 

Net foreign exchange gains 115 - 

Other 534 1,171 

Total Departmental 21,658 23,954 

Total other external revenues 21,658 23,954 

Net cost of outcome 95,777 96,187 

79



2c Agency Revenues and Expenses by Output Groups 

Output Group 1 Output Group 2 Non-Specific Total 

2003 2002 2003 2002 2003 2002 2003 2002 

$000 $000 $000 $000 $000 $000 $000 $000 

Operating expenses 

Employees 18,177 21,434 4,227 5,299 - - 22,404 26,733 

Suppliers & Other Expenses 75,063 73,402 17,396 18,673 - - 92,459 92,075 

Depreciation and Amortisation 2,388 1,343 421 260 - - 2,809 1,603 

Write-down of assets - - - - 15 121 15 121 

Total operating expenses 95,628 96,179 22,044 24,232 15 121 117,687 120,532 

Funded by : 

Revenue from Government 73,847 75,768 26,079 22,138 - - 99,926 97,906 

Advertising 11,643 12,287 150 156 - - 11,793 12,443 

Sale of goods and services 76 344 195 47 - - 271 391 

Industry contribution - - 7,886 9,239 - - 7,886 9,239 

Other non-taxation revenues 1,349 379 509 1,242 121 651 1,979 2,272 

Total operating revenues 86,915 88,778 34,819 32,822 121 651 121,855 122,251 

Note 3 Economic dependency 

The Commission was established by the Australian Tourist Commission Act 1987 and is controlled by the Commonwealth 

of Australia. 

The Commission is dependent on appropriations from the Parliament of the Commonwealth for its continued existence 

and ability to carry out normal activities. 

80




$’000 $’000 

Note 4 Operating Revenues 

4a Revenues from Government 

Appropriations for outputs 99,926 97,906 

Total revenues from government 99,926 97,906 

4b Advertising 

Advertising income 11,793 12,443 

4c Sales of goods and services 

Goods 36 217 

Services 235 174 

Total sales of goods and services 271 391 

Provision of goods to: 

Related entities - - 

External entities 36 217 

Total Sales of goods 36 217 

Rendering of services to: 

Related entities - - 

External entities 235 235 

Total rendering of services 235 235 

Cost of sales of goods 28 188 

4d Industry contribution 

Industry contributions 1 7,886 9,239 

4e Interest Revenue 

Deposits 1,330 1,101 

Total Interest revenue 1,330 1,101 

4f 

Net foreign exchange gains 

Non-speculative 115 - 

Total 115 - 

4g Net gain / (loss) from sale of assets 

Plant and equipment 

Proceeds from disposal 9 33 

Net book value of assets disposed (28) (95) 

Total net gain / (loss) from disposal of assets (19) (62) 

4h Other revenue 

Office sub-tenancies 248 293 

Tax Provision written back - 651 

Other 286 227 

Total 534 1,171 

1 Industry contributions reflect the actual value of industry support for the Commission’s activities from cash revenue. In addition to direct revenues from the industry, joint 

marketing programs were again undertaken.Through these programs the industry supplements funds provided by the Australian Tourist Commission for product development, 

visiting journalist and tactical marketing programs. Due to the nature of the programs, these funds, $48.7m (2001/02: $35.9m), do not form part of the reported level of 

industry contributions for the Australian Tourist Commission, but are in addition to it. 

81




$’000 $’000 

5 Operating Expenses 

5a Employees 

Wages and Salaries 18,191 18,574 

Superannuation 1,163 1,339 

Leave and other entitlements 1,303 1,764 

Separation and redundancy payments 759 2,278 

Other employee benefits 1,214 2,778 

Total employee benefits expense 22,630 26,733 

Workers compensation premiums 32 32 

Total employee expenses 22,662 26,765 

5b Suppliers 

Goods and services from external entities: 

Advertising 49,320 44,869 

Promotion and publicity 12,067 11,888 

Films, publications and distribution 8,997 10,716 

Information Systems and Telecommunications 5,241 6,193 

Research, service fees and travel 8,857 9,327 

Operating lease rentals * 4,324 4,599 

Total supplier expenses 88,806 87,592 

* These comprise minimum lease payments only 

5c Depreciation and amortisation 

Infrastructure, plant and equipment 704 901 

Software (includes websites) 2,078 675 

Trade Mark 27 27 

Total depreciation and amortisation 2,809 1,603 

5d Write-down of assets 

Non-Financial assets: 

Plant and equipment - 21 

Financial assets: 

Investment 15 100 

Total write-down of assets 15 121 

5e Net foreign exchange losses 

Non-speculative - 230 

Total - 230 

82




$’000 $’000 

6 Financial Assets 

6a Cash 

The Australian dollar equivalent balance of cash held by the Commission 

can be summarised by currency, as follows: 

Australian dollars 2,367 7,971 

New Zealand dollars 123 114 

Euro 55 934 

Hong Kong dollars 19 24 

Korean Won 1 121 

Japanese yen 18 454 

Great Britain pounds 115 511 

United States dollars 46 1,122 

Singapore dollars 18 124 

Taiwanese dollars 6 79 

Other 29 93 

2,797 11,547 

Balance of cash as at 30 June shown in the Statement of Cash Flows 2,797 11,547 

6b Receivables 

Goods and Services 3,234 3,992 

Less: Provision for doubtful debts (211) (211) 

3,023 3,781 

Appropriations receivable 10,000 - 

Interest receivable 94 77 

Deposits and advances 493 805 

Total receivables (net) 13,610 4,663 

All receivables are current assets. 

Receivables (goods and services gross) are aged as follows: 

The Commission’s normal terms of trade are 30 days. 

Not overdue 2,317 2,149 

Overdue by: 

less than 30 days 645 1,390 

30 to 60 days 131 261 

60 to 90 days 94 70 

more than 90 days 47 122 

917 1,843 

Total receivables (gross) 3,234 3,992 

The provision for doubtful debts is aged as follows: 

Overdue by : 

less than 30 days - - 

30 to 60 days 70 19 

60 to 90 days 94 70 

more than 90 days 47 122 

Total provision for doubtful debts 211 211 

With respect to trade debtors, debts considered to be irrecoverable have been written off during the period to the amount 

of $30,838 (2001/02 $29,418). 83




$’000 $’000 

6c Other financial assets 

Prepaid expenses 1,239 956 

Total 1,239 956 

6d Investments 

Shares in other companies – unlisted (at cost) 400 400 

Less: Provision for diminution in value (180) (165) 

Net Investments 220 235 

Investments are categorised as follows: 

Current 400 400 

Non-current - - 

Total Investments 400 400 

The Commission holds a 11.1% interest in Australian Tourism Data Warehouse Pty Limited (ATDW), which is carried at 

cost less provision for diminution in value.The provision is based on the estimated statement of financial position of ATDW 

as at 30/6/2003. ATDW’s principal activity is the development of a database for Australian Tourism Products. 

7 Non-Financial Assets 


$’000 $’000 

7a Plant, equipment and intangibles 

Computer & office equipment – at cost 351 122 

– at valuation 2,455 2,856 

Accumulated depreciation (2,330) (2,462) 

476 516 

Furniture & fittings – at cost - 75 


Accumulated depreciation (938) (953) 

200 459 

Leasehold improvements – at cost - 744 


Accumulated depreciation (2,911) (1,928) 

755 980 

Motor vehicles – at cost 157 188 

Accumulated depreciation (150) (167) 

7 21 

Software (includes websites) – at cost 5,618 4,626 

Amortisation (3,018) (971) 

2,600 3,655 

84




$’000 $’000 

7a Plant, equipment and intangibles continued 

Trade marks – at cost 272 272 

Amortisation (155) (127) 

117 145 

Total plant, equipment and intangibles (non-current) 4,155 5,776 

All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note 1. In 2002-03, 

the revaluations were conducted by an independent valuer, the Australian Valuation Office. 

7b Analysis of plant, equipment & intangibles 

TABLE A – Reconciliation of the opening and closing balances of property, plant and equipment and intangibles 

Item Total Plant & Equipment Software Trade Marks Total 

$’000 $’000 $’000 $’000 

As at 1 July 2002 

Gross book value 7,486 4,626 272 12,384 

Accumulated depreciation/amortisation (5,510) (971) (127) (6,608) 

Net book value 1,976 3,655 145 5,776 

Additions By purchase 259 1,026 - 1,285 

Net revaluation increment/decrement 79 - - 79 

Depreciation/amortisation expense (704) (2,078) (27) (2,809) 

Disposals (28) - - (28) 

Other movement (145) (3) - (148) 

As at 1 July 2003 

Gross book value 7,766 5,619 272 13,657 

Accumulated depreciation/amortisation (6,329) (3,019) (154) 9,502 

Net book value 1,437 2,600 118 4,155 

Net book value at 30 June 2003 1,437 2,600 118 4,155 

Net book value at 1 July 2002 1,976 3,655 145 5,776 

TABLE B – Assets at valuation 


$’000 $’000 $’000 $’000 

As at 30 June 2003 

Gross value 7,415 - - 7,415 

Accumulated Depreciation/Amortisation (6,171) - - (6,171) 

Net book value 1,244 1,244 

As at 30 June 2002 

Gross value 6,357 - - 6,357 

Accumulated Depreciation/Amortisation (5,220) - - (5,220) 

Net book value 1,137 - - 1,137 

85



TABLE C – Assets under construction 


$’000 $’000 $’000 $’000 

Gross value at 30 June 2003 90 881 - 971 

Gross value at 30 June 2002 62 300 - 362 

8 Provisions and Payables 

Provisions 

8a Capital Use Charge Provision 


$’000 $’000 

Capital Use Charge 388 172 

Balance owing 1 July 172 427 

Capital Use Charge provided for during the period 1,009 332 

Capital Use Charge paid (793) (587) 

Balance owing 30 June 388 172 

The Capital Use Charge provision is a current liability 

8b Employee Provision 

Salaries & wages 903 883 

Leave 2,075 2,461 

Superannuation 16 60 

Separation and redundancy 32 146 

Aggregate employee entitlement liability 3,026 3,550 

Current 2,082 2,449 

Non-current 944 1,101 

3,026 3,550 

Payables 

8c Suppliers Payables 

Trade creditors & accruals 9,085 12,929 

Total supplier payables 9,085 12,929 

All supplier payables are current. 

8d Other Payables 

Revenue received in advance 656 879 

Total other payables 656 879 

All other payables are current. 

86



9 Equity 

Item Accumulated Asset Other Total TOTAL 

Results revaluation reserve Contributed EQUITY 

reserve (General Reserve) Equity 

2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

Opening Balance 1 July 2002 5,084 3,697 367 475 196 83 563 558 5,647 4,255 

Net surplus/ deficit 4,149 1,719 - - - - - - 4,149 1,719 

Net revaluation increment/(decrement) - - 75 5 4 - 79 5 79 5 

Transfers to/(from) reserves - - - (113) - 113 - - - - 

Transactions with owner: 

Capital use charge (1,009) (332) - - - - - - (1,009) (332) 

Changes in accounting policies - - - - - - - - - - 

Closing Balance 30 June 2003 attributable 

to the Commonwealth 8,224 5,084 442 367 200 196 642 563 8,866 5,647 

The net revaluation increase in the asset revaluation reserve comprises: 


$’000 $’000 

• Revaluation increment/(decrement) – computer and office equipment - 5 

• Revaluation increment – furniture and fittings (109) - 

• Revaluation increment – leasehold improvements 188 - 

79 5 

The Asset Revaluation Reserve contains unrealised gains from the revaluation of assets. On realisation, these amounts are transferred to the General Reserve. 

87




$’000 $’000 

10 Cash Flow Reconciliation 

10a Reconciliation of cash 

Cash balance comprises: 

Cash at bank 1,737 3,315 

Deposits 1,060 8,232 

Total cash 2,797 11,547 

10b Reconciliation of Operating surplus (deficit) to net cash from operating activities: 

Reconciliation of operating surplus to net cash from operating activities 

Operating surplus before extraordinary items 4,149 1,719 

Non-Cash items 

Depreciation & amortisation 2,809 1,603 

Fixed asset currency re-translation 146 187 

Net write down of non-current assets 15 21 

Loss on disposal of assets 19 95 

Changes in assets & liabilities: 

(Increase)/decrease in receivables 1,147 215 

(Increase)/decrease in other assets (376) 707 

(Increase)/decrease in appropriation receivable (10,000) - 

Increase/(decrease) in supplier payables (4,059) 1,822 

Increase/(decrease) in employee provisions (524) (1,362) 

Increase/(decrease) in other payables (223) (598) 

Increase/(decrease) in CUC Payable 216 (255) 

Net cash from/(used by) operating activities (6,681) 4,154 

11 Remuneration of Directors 

$ $ 

Aggregate amount of superannuation payments in connection 

with the retirement of directors 21,028 36,819 

Other remuneration received or due and receivable by directors of the Commission 497,920 466,351 

Total remuneration received or due and receivable by directors of the Commission 518,948 503,170 

Remuneration includes accrued recreation leave and long service leave where applicable 

The number of directors of the Commission included in these figures is shown below 

in the relevant remuneration bands: 

Number 


$20,001 – 30,000 6 6 

$30,001 – 40,000 1 1 

$60,001 – 70,000 1 1 

$210,001 – 220,000 - 1 

$260,001 – 270,000 1 - 

Total Number of Directors of the Commission 9 9 

88




$ $ 

12 Remuneration of Officers 

The aggregate amount of total remuneration of officers shown below. 2,903,530 1,468,568 

2,903,530 1,468,568 

The aggregate amount of separation and redundancy payments during 

the year to officers shown below. 373,324 283,172 

Remuneration Includes accrued recreation leave and long service leave 

The number of officers who received or were due to receive 

total remuneration of $100,000 or more: 

Number 


$100,001 – 110,000 2 1 

$110,001 – 120,000 * 4 1 

$120,001 – 130,000 3 2 

$130,001 – 140,000 - 3 

$140,001 – 150,000 1 - 

$150,001 – 160,000 * 1 1 

$170,001 – 180,000 1 - 

$200,001 – 210,000 1 1 

$210,001 – 220,000 1 - 

$220,001 – 230,000 2 - 

$230,001 – 240,000 - 1 

$240,001 – 250,000 * 2 - 

$400,001 – 410,000 * 1 - 

19 10 

* includes one officer who was separated or made redundant in each of these brackets 

The officer remuneration includes all officers concerned with or taking part in the management of the Commission during 2002-03 except the Managing Director. Details in relation 

to the Managing Director have been incorporated into Note 11 – Director Remuneration. 

The increase from 2002 to 2003 reflects salary increases for several officers which resulted in their remuneration exceeding $100,000 for the first time; new officers appointed to 

new positions above $100,000 and four officers who were separated/ made redundant during the year. 

13 Remuneration of Auditors 

$ $ 

Remuneration to the Auditor-General for auditing the financial 

statements for the reporting period. 45,225 45,024 

No other services were provided by the Auditor-General during the reporting period. 

14 Average Staffing Level 

Number 


The average staffing levels for the Commission during the year were: 190 193 

89



15 Financial Instruments 

15a Terms, conditions and accounting policies 

Financial Instrument Notes Accounting Policies and Methods Nature of underlying instrument 

(including recognition criteria and 

(including significant terms & conditions 

measurement basis) 

affecting the amount, timing and 

certainty of cash flows) 


Financial assets are recognised when 

control over future economic benefits is 

established and the amount of the benefit 

can be reliably measured. 

Cash Investments 6a Cash and investments are recognised at Temporarily surplus funds, mainly from 

4e their nominal amounts. Interest is credited monthly drawdowns of appropriation, 

to revenue as it accrues. 

are placed on deposit at call with the 

Commission’s banker. Interest is earned 

on the daily balance at the prevailing 

daily rate. Interest on deposits at call is 

paid at month end, interest on term 

deposits are paid on maturity and 

interest on cash is paid at month end. 

Receivables for 6b These receivables are recognised at the Credit terms are up to net 30 days 

goods & services nominal amounts due less any provision for (2001/02: 30 days). 

bad and doubtful debts. Provisions are made 

when collection of the debt is judged to be less 

rather than more likely. 

Appropriations receivable These receivables are recognised at the Balance of departmental appropriations 

nominal amounts due. 

made by the Parliament to the 

Commission has not been drawn 

down by the Commission at the 

reporting date. 

Other 6c Prepaid expenses and accrued income are Expenses relating to future period but 

recognised at the nominal amounts. 

paid during the current period are 

deferred to the future period. 

Income relating to the current period 

but received in the future period is 

recognised in the current period. 

Financial Liabilities 

Financial liabilities are recognised when a 

present obligation to another party is entered 

into and the amount of the liability can be 

reliably measured. 

Trade creditors 8c Creditors and accruals are recognised at their Settlement is usually made up to net 

nominal amounts, being the amounts at which 30 days (2001/02: 30 days). 

the liabilities will be settled. 

Liabilities are recognised to the extent that the 

goods or services have been received (and 

irrespective of having been invoiced). 

Other Payables 8d Revenues received in advance are recognised Revenue relating to a future period, 

at the nominal amounts. 

but received during the current period 

is deferred to the future period. 

90

Financial Instruments (cont.) 

15b Interest Rate Risk 

Financial Instrument Notes Floating interest Fixed interest rate Non-interest Total Weighted 

rate bearing Average effective 

1 year or less 1 to 2 years 2 to 5 years > 5 years interest rate 

Financial Assets (Recognised) 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

Cash at Bank 6a 1,730 3,307 - - - - - - - - - - 1,730 3,307 3.7 1.3 

Cash on Hand 6a - - - - - - - - - - 6 7 6 7 n/a n/a 

Receivables for goods and services 6b - - - - - - - - - - 3,516 4,586 3,516 4,663 n/a n/a 

Deposits at Call 6a 1,061 8,233 - - - - - - - - - - 1,061 8,233 4.7 4.7 

Other Debtors 6c - - - - - - - - - - 11,332 1,033 11,332 956 n/a n/a 

Investment 6d - - - - - - - - - - 220 235 220 235 n/a n/a 

Total 2,791 11,540 - - - - - - - - 15,074 5,861 17,865 17,401 

Total Assets 22,021 23,177 


Trade creditors 8c - - - - - - - - - - 9,085 12,929 9,085 12,929 n/a n/a 

Other payables 8d - - - - - - - - - - 656 879 656 879 n/a n/a 

Total - - - - - - - - - - 9,741 13,808 9,741 13,808 

Total Liabilities 13,155 17,530 

91



Financial Instruments continued 

15c Net Fair Values of Financial Assets and Liabilities 


$’000 $’000 

Total Aggregate Total Aggregate 

carrying net fair carrying net fair 

amount value amount value 

Note $’000 $’000 $’000 $’000 

Financial Assets 

Cash at bank 6a 2,791 2,791 11,540 11,540 

Cash on hand 6a 6 6 7 7 

Receivables for goods and services 6b 3,610 3,610 4,586 4,586 

Appropriation receivable 10,000 10,000 - - 

Other receivables 6c 1,239 1,239 1,033 1,033 

Investment 6d 220 220 235 235 

17,866 17,866 17,401 17,401 


Trade creditors 8c 9,085 9,085 12,929 12,929 

Other payables 8d 656 656 879 879 

9,741 9,741 13,808 13,808 


The net fair values of cash, deposits on call and non-interest-bearing monetary financial assets approximate their carrying 

amounts. 

Financial liabilities 

The net fair values for trade creditors which are short-term in nature, are approximated by their carrying amounts. 

15d Credit Risk Exposures 

The Commission’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial 

assets is the carrying amount of those assets as indicated in the Statement of Financial Position. 

The Commission has no significant exposures to any concentrations of credit risk. 

16 Contingent Liabilities and Assets 

The Commission has no contingent assets or liabilities, quantifiable or unquantifiable 

92

Glossary of Terms 

AACB Association of Australian Convention 

Bureaux 

ADS Approved Destination Status 

AEI Australia Education International – 

AIME Asia Pacific Incentives & Meetings Expo 

ATMC Australian Trade Mission to China 

ASCOT Australian Standing Committee On Tourism 

ASP 

Aussie Specialist Program 

ATA Aboriginal Tourism Australia 

ATDW Australian Tourism Data Warehouse 

ATE Australian Tourism Exchange 

ATEC Australian Tourist Export Council 

AWEC Australian Wine Export Council 

BECA Business Events Council of Australia 

BTAG Backpacker Tourism Advisory Group 

CITM China International Travel Mart 

DAMA Destination Australia Marketing Alliance 

DEST Department of Education, Science and 

Training 

DFAT Department of Foreign Affairs & Trade 

DITR Department of Industry,Tourism and 

Resources 

DMC Destination Management Company 

EIBTM European Incentive Business Travel & 

Meetings 

FIT 

Fully Independent Travellers 

ITB 

Internationale Tourismus Börse 

ITO 

Inbound Tour Operator 

ITLG Indigenous Tourism Leadership Group 

ITW Independent Travel World trade show 

IVS 

International Visitor Survey 

JAAG Japan Australia Advisory Group 

JAM Japan Australian Mission 

JAL 

Japan Airlines 

JATA Japan Association of Travel Agents 

JTB 

Japan Travel Bureau 

JTIG Japan Tourism Implementation Group 

KDP 

MICE 

MIDT 

MOU 

NEAP 

NTO 

OGO 

PRIME 

PVI 

RTA 

RTAG 

SARS 

SIA 

STOs 

TABEE 

Team Australia 

TMC 

TVAG 

VJP 

WTM 

WYSTC 

Key Distribution Partners 

Meetings, Incentives, Conventions and 

Exhibitions 

Market Intelligence Data Tracking 

Memorandum of Understanding 

Nature Ecotourism Accreditation Program 

National Tourist Office 

Office of Government Online 

Pacific Rim Incentives and Meetings 

Exchange 

Product Viability Indicator 

Regional Tourist Authority 

Rugby Tourism Advisory 

Severe Acute Respiratory Syndrome 

Singapore Airlines 

State and Territory Tourism Organisations 

Team Australia Business Events Educational 

Team Australia is a co-operative venture 

between participating members of the 

Australian Association of Convention 

Bureaux (AACB) and the Australian Tourist 

Commission (ATC). 

Tourism Ministers’ Council 

Tourism Visa Advisory Group 

Visiting Journalist Program 

World Travel Mart 

World Youth Student Travel Conference 

93

Index 

Aboriginal Tourism Segment 43 

Advertising and Design 40 

Air New Zealand 26 

Americas 27 

Application, Development and Support 54 

ATC Offices Worldwide 95 

ATC Online 7, 52 

ATE 25, 46 

Aussie Specialist Program 15, 18 

Backpackers Tourism Segment 44 

Board of Directors 58, 59 

Business Tourism 48 

Celebrate Australia 16 

Chairman’s Report 8 

China 22 

Corporate Governance 55 

Corporate Services 53 

Eastern Hemisphere 12 

Ecologically Sustainable Development 61 

Ecotourism Segment 43 

Education Segment 44 

Europe 29 

Financial Statements 68-92 

Food and Wine Tourism Segment 44 

France 29 

Germany 31 

Highlights 4 

Hong Kong 21 

India 15 

Indonesia 16 

Information Technology and Communications 54 

International Media 42 

International Visitor Arrivals 62 

Italy 30 

Japan 13 

Japan Airlines 13 

Korea 24 

Malaysia 17 

Management and Organisation Structure 60 

Managing Director’s Report 8 

Marketing Development 39 

Market Insights 41 

Middle East 33 

Mission Statement 2 

Netherlands 32 

New Zealand 34 

North and North East Asia 20 

Objectives and Outcomes 6 

Online Programs Management 49 

Organisational Development 50 

Overseas Visitor Arrivals 4 

Partnership Marketing 38 

Philippines 25 

Public Affairs 52 

Qantas 13, 24, 26-31, 34, 51 

Record of Board Members 57 

Risk Management and Administration 53 

Rugby World Cup 45 

Segment Development 43 

Singapore 18 

Singapore Airlines 22, 26, 28, 29, 31, 32 

South East Asia 14 

Switzerland 32 

Taiwan 23 

Thailand 19 

Tourism and Aviation Strategy 51 

Tourism Ambassador Program 4, 5, 13, 30, 40 

Trade Development 38 

Trade Events 46 

United Airlines 26 

United Kingdom 28 

Visiting Journalists Program 4, 42 

Western Hemisphere 26 

94

ATC Offices – worldwide 

Sydney (head office) 

Level 4 80 William Street 

Woolloomooloo NSW 2011 

Tel: +61 2 9360 1111 

Fax: +61 2 9331 6469 

Auckland 

Level 3, 125 The Strand 

Parnell Auckland 

New Zealand 

Tel: +64 9 915 2826 

Fax: +64 9 915 2881 

London 

Gemini House 

10-18 Putney Hill 

Putney London SW15 6AA 

United Kingdom 

Tel: +44 20 8780 2229 

Fax: +44 20 8780 1496 

Frankfurt 

Neue Mainzer Strasse 22 

D 60311 Frankfurt/Main 

Germany 

Tel: +49 69 2740 0622 

Fax: +49 69 2740 0640 

Los Angeles 

2049 Century Park East 

Suite 1920 

Los Angeles CA 90067 

United States of America 

Tel: +1 310 229 4870 

Fax: +1 310 552 1215 

Tokyo 

C/- Australian Business Centre 

New Otani Garden Court 

Building 28F 

4-1 Kioi-cho Chiyoda-ku 

Tokyo 102-0094 

Japan 

Tel: +81 3 5214 0720 

Fax: +81 3 5214 0719 

Osaka 

OCAT Building 4F 

1-4-1 Minato-machi 

Naniwa-Ku 

Osaka 556-0017 

Japan 

Tel: +81 6 6635 3291 

Fax: +81 6 6635 3297 

Seoul 

20 fl.Youngpoong Building, 

33 Seorin-dong, 

Chongro-ku 

Seoul 110-752 

Korea 

Tel: + 82 2 399 6500 

Fax: +82 2 399 6507 

Hong Kong 

Suite 1501 Central Plaza 

18 Harbour Road 

Wanchai 

Hong Kong 

Tel: +852 2802 7700 

Fax: +852 2802 8211 

Shanghai 

Level 21 HSBC Tower 

101 Yin Cheng East Road 

PuDong Shanghai 200120 

China 

Tel: +86 21 6307 7055 

Fax: +86 21 6037 0069 

Singapore 

101 Thomson Road 

United Square #08-03 

Singapore 307591 

Tel: +65 6255 4555 

Fax: +65 6253 8431 

Taipei 

Suite 2208 Level 22 

333 Keelung Road 

Sec I Taipei 

Taiwan 

Tel: +886 2 2757 7188 

Fax: +886 2 2757 6483 

Bangkok 

Unit 1614, 16th floor, 

River Wing East 

Empire Tower 

195 South Sathorn Road 

Yannawa, Sathorn 

Bangkok 10120 

Thailand 

Tel: +66 2 670 0640 

Fax: +66 2 670 0645 

Kuala Lumpur 

Suite 12-1 Faber Imperial Court 

Jalan Sultan Ismail 50250 

Kuala Lumpur 

Malaysia 

Tel: +60 3 2611 1148 

Fax: +60 3 2070 4302 

95

Australian Tourist 

Commission

2002 - 2003 Annual Report - Tourism Australia

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