2002 - 2003 Annual Report - Tourism Australia
2002 - 2003 Annual Report - Tourism Australia
2002 - 2003 Annual Report - Tourism Australia
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<strong>Australia</strong>n Tourist<br />
Commission<br />
ANNUAL REPORT <strong>2002</strong>/<strong>2003</strong><br />
AUSTRALIAN TOURIST COMMISSION ANNUAL REPORT <strong>2002</strong>/<strong>2003</strong>
The Hon J Hockey MP<br />
Minister for Small Business and <strong>Tourism</strong><br />
Parliament House<br />
Canberra ACT 2060<br />
October <strong>2003</strong><br />
Dear Minister,<br />
I have great pleasure in presenting<br />
the 35th <strong>Annual</strong> <strong>Report</strong> of the<br />
<strong>Australia</strong>n Tourist Commission for<br />
the year ended 30 June <strong>2003</strong>.<br />
Yours sincerely,<br />
Nick Evers Chairman<br />
Contact officer<br />
For more information about this annual report please contact:<br />
Public Affairs Manager<br />
Public Affairs Department<br />
<strong>Australia</strong>n Tourist Commission<br />
GPO Box 2721<br />
Sydney NSW 2011<br />
Internet<br />
You can access this report through the Commission’s industry website at www.atc.australia.com<br />
Additional information sources<br />
<strong>2002</strong>-<strong>2003</strong> Portfolio Budget Statements<br />
<strong>2002</strong>-<strong>2003</strong> Portfolio Additional Estimates Statements<br />
<strong>Australia</strong>n Tourist Commission Corporate Plan <strong>2002</strong>-<strong>2003</strong><br />
<strong>Australia</strong>n Tourist Commission <strong>Annual</strong> Operating Plan <strong>2002</strong>-<strong>2003</strong><br />
<strong>Australia</strong>n Bureau of Statistics, Overseas Arrivals & Departures, 3401.0<br />
<strong>Tourism</strong> Forecasting Council (<strong>2003</strong>), April <strong>2003</strong> Forecasts, Department of Industry <strong>Tourism</strong> and<br />
Resources, Canberra<br />
Freedom of Information<br />
The ATC is a prescribed authority under the Freedom of Information Act 1982.<br />
No FOI requests were received by the Commission during the review period.<br />
The contact officer for FOI requests from the ATC is:<br />
Risk Manager<br />
<strong>Australia</strong>n Tourist Commission<br />
GPO Box 2721<br />
Sydney NSW 2011<br />
Front cover: Sand dunes, Merty Merty, SA<br />
ISSN: 0728 - 7143<br />
© Commonwealth of <strong>Australia</strong> <strong>2003</strong><br />
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by<br />
any process without prior written permission from the Commonwealth available from the Department of Communications,<br />
Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to the<br />
Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology<br />
and the Arts, GPO Box 2154, Canberra ACT 2601 or posted at http://www.dcita.gov.au/cca.
Contents<br />
2 Principles<br />
4 Highlights<br />
6 Objectives and Outcomes<br />
8 Chairman’s and Managing Director’s <strong>Report</strong><br />
10 <strong>Report</strong> of Operations<br />
12 Eastern Hemisphere<br />
13 Japan<br />
14 South East Asia<br />
20 North and North East Asia<br />
26 Western Hemisphere<br />
27 The Americas<br />
28 United Kingdom<br />
29 Europe<br />
33 Middle East<br />
34 New Zealand<br />
36 Sydney Office <strong>Report</strong>s<br />
38 Hemispheres<br />
39 Marketing Development<br />
40 Advertising and Design<br />
41 Market Insights<br />
42 International Media<br />
43 Segment Development<br />
46 Trade Events<br />
48 Business <strong>Tourism</strong><br />
49 Online Programs Management<br />
50 Organisational Development<br />
53 Corporate Services<br />
55 Corporate Governance<br />
57 Board Members<br />
60 Management and Organisation Structure<br />
61 Ecologically Sustainable Development<br />
62 Statistical Review<br />
64 Financial <strong>Report</strong>s<br />
66 Independent Audit <strong>Report</strong><br />
67 Statement by Directors<br />
68 Statement of Financial Performance<br />
69 Statement of Financial Position<br />
70 Statement of Cash Flows<br />
71 Schedule of Commitments<br />
72 Schedule of Contingencies<br />
73 Notes to and forming part of<br />
the Financial Statements<br />
93 Glossary of Terms<br />
94 Index<br />
95 ATC Addresses
Principles<br />
OUR ROLE<br />
The <strong>Australia</strong>n Tourist Commission (ATC) is <strong>Australia</strong>’s international<br />
marketing authority and is responsible for promoting <strong>Australia</strong> overseas<br />
to attract visitors for business and leisure travel.<br />
Working with the private sector and State and Territory <strong>Tourism</strong><br />
Organisations, the ATC’s marketing activities in over 20 countries include<br />
television, print and online advertising, public relations and media programs<br />
and the co-ordination of <strong>Australia</strong>n industry participation in international<br />
trade events.The ATC also undertakes market research into consumer<br />
travel behaviour and provides input into Government and industry policies<br />
that affect tourism.<br />
The ATC’s Head Office is based in Sydney, with overseas offices in Los<br />
Angeles, London, Frankfurt, Osaka,Tokyo, Hong Kong, Bangkok, Seoul,<br />
Singapore,Taipei, Shanghai, Kuala Lumpur and Auckland.<br />
OUR MISSION<br />
We market <strong>Australia</strong> internationally to create a sustainable advantage<br />
for our tourism industry for the benefit of all <strong>Australia</strong>ns.<br />
OUR VISION<br />
To be respected by our stakeholders for the value we add to<br />
inbound tourism.<br />
2
OUR OBJECTIVES<br />
The <strong>Australia</strong>n Tourist Commission is a Statutory Authority established<br />
under the <strong>Australia</strong>n Tourist Commission Act 1987. Its task is to<br />
promote <strong>Australia</strong> internationally as a tourist destination.<br />
Under the Act, the Commission’s principal objectives are to:<br />
• Increase the number of visitors to <strong>Australia</strong> from overseas;<br />
• Maximise the benefits to <strong>Australia</strong> from overseas visitors; and<br />
• Work with other relevant agencies to promote the principles of<br />
ecologically sustainable development and raise awareness of the social<br />
and cultural impacts of international tourism in <strong>Australia</strong>.<br />
The Commission is governed by a ten member Board which reports to<br />
the Federal Minister for Small Business and <strong>Tourism</strong>,<br />
the Hon Joe Hockey MP.<br />
OUR VALUES<br />
Openness<br />
An open environment underpinned by trust and respect for one<br />
another. One where people are encouraged to give and receive<br />
feedback and where there is transparency in our decision-making<br />
and business practices.<br />
Teamwork & Shared Leadership<br />
We work effectively in teams with individuals actively involved and<br />
taking responsibility for performance, problem-solving and harnessing<br />
the power of the team to achieve outstanding results.<br />
Learning<br />
We aspire to be an organisation where decisions are based on analysis<br />
and insight, where we listen and consult, and are prepared to admit<br />
mistakes and learn from them.<br />
3
Highlights<br />
<strong>2002</strong>/<strong>2003</strong><br />
Overseas visitor arrivals<br />
There were 4,655,800 visitors<br />
to <strong>Australia</strong> in <strong>2002</strong>/03, a<br />
decrease of two per cent over<br />
the previous year. Given the<br />
global downturn in international<br />
and long-haul travel this is a good<br />
result and shows the beginnings<br />
of recovery following a year of<br />
ongoing difficulties for the<br />
tourism industry.<br />
Financial summary<br />
The Commission’s total revenue<br />
for the <strong>2002</strong>/03 year was<br />
AUD$121.9 million. Government<br />
revenue was $99.9 million and<br />
revenue from cooperative<br />
industry activities and other<br />
sources was $22 million.<br />
Publicity generated by the<br />
Visiting Journalists Program<br />
The ATC hosted 1,027 print and<br />
broadcast journalists to <strong>Australia</strong><br />
throughout the year through<br />
the Visiting Journalists Program,<br />
generating editorial coverage<br />
with a value in excess of<br />
AUD$1.4 billion.<br />
<strong>Tourism</strong> Ambassadors<br />
Program<br />
The ATC’s <strong>Tourism</strong> Ambassador<br />
program, which began last year<br />
with Ian Thorpe in Japan, gained<br />
momentum this year with the<br />
engagement of Megan Gale to<br />
promote <strong>Australia</strong> in Italy and<br />
five-time world champion surfer,<br />
Layne Beachley, to entice the<br />
youth market from the US.<br />
The ATC is currently working with<br />
potential new candidates who<br />
could fly the flag for <strong>Australia</strong>n<br />
tourism in other markets.<br />
6,000,000<br />
5,000,000<br />
4,000,000<br />
3,000,000<br />
2,000,000<br />
1,000,000<br />
0<br />
4.7 5.1 4.8<br />
4.6<br />
1999/00<br />
2000/01 2001/02 <strong>2002</strong>/03<br />
Overseas Visitors<br />
Source: <strong>Australia</strong>n Bureau of Statistics, Overseas<br />
Arrivals and Departures 3401.0<br />
4
australia.com<br />
australia.com delivered over<br />
42 million pages to consumers<br />
globally in <strong>2002</strong>/03, an increase<br />
of 8 per cent on 2001/02.<br />
In March <strong>2003</strong> australia.com won<br />
the Travel & <strong>Tourism</strong> Web Award<br />
for Best Tourist Board against a<br />
field of international sites.The<br />
award was presented at the<br />
British Travel Trade Fair. A key<br />
feature of the site was the<br />
Ozplanner, a new interactive<br />
tool which was launched in the<br />
UK to help first-time visitors in<br />
planning their holiday to <strong>Australia</strong>.<br />
Megan Gale<br />
Award winning campaigns<br />
The Celebrate <strong>Australia</strong> <strong>2003</strong><br />
promotion was awarded Gold<br />
for the ‘Best <strong>Tourism</strong> Campaign’<br />
and ‘Best Event Marketing<br />
Campaign’ at the Promotion<br />
Marketing Awards of Asia <strong>2003</strong><br />
(PMAA <strong>2003</strong>).<br />
Recovery Strategy<br />
Marketing programs, which aimed<br />
to rebuild inbound tourism to<br />
<strong>Australia</strong> following the Iraq conflict<br />
and SARS, exceeded targets.<br />
In New Zealand recovery<br />
campaigns delivered 35,000<br />
bookings. Campaigns in the US<br />
delivered 18,500 bookings, and<br />
17,500 were received as a result<br />
of campaigns in the UK.<br />
Layne Beachley<br />
5
Objectives<br />
& Outcomes<br />
<strong>2002</strong>/<strong>2003</strong><br />
STATUTORY OBJECTIVES<br />
To increase the number of visitors<br />
to <strong>Australia</strong> from overseas<br />
PERFORMANCE INDICATORS<br />
• Exceed <strong>Tourism</strong> Forecasting Council (TFC) forecasts<br />
for the number of visitor arrivals.<br />
• Maintain or increase <strong>Australia</strong>’s market share in<br />
priority countries where the ATC is actively<br />
marketing.<br />
• Percentage growth in arrivals into <strong>Australia</strong> compared<br />
to the percentage growth in<br />
international tourism.<br />
To maximise the benefits to <strong>Australia</strong><br />
from overseas visitors including lifting<br />
geographic dispersal of visitation to<br />
regional <strong>Australia</strong><br />
• Increase visitor expenditure yield in <strong>Australia</strong> by<br />
overseas visitors.<br />
• Exceed TFC forecasts for total visitor nights in<br />
<strong>Australia</strong> by overseas visitors.<br />
• Exceed TFC forecasts for tourism export earnings.<br />
• Increase the geographic dispersal of<br />
overseas visitors.<br />
• Increase employment from inbound tourism.<br />
To work with other relevant agencies<br />
to promote the principles of<br />
ecologically sustainable development<br />
and to seek to raise awareness of<br />
the social and cultural impacts of<br />
international tourism to <strong>Australia</strong><br />
• Level of activity with other relevant agencies on<br />
the promotion of ecologically sustainable<br />
development principles.<br />
• Raise community awareness of the social and cultural<br />
impacts of international tourism.<br />
6
OUTCOMES<br />
• There were 4,655,800 visitors to <strong>Australia</strong> in <strong>2002</strong>/03, a decrease of two per cent.The <strong>Tourism</strong> Forecasting<br />
Council (TFC) forecasts were revised downwards over the year due to the global downturn in long-haul travel.<br />
In April <strong>2002</strong>, the TFC forecast 5.4 million visitors during <strong>2003</strong>, then twice revised the forecast down to<br />
5.0 million in December <strong>2002</strong> and to 4.6 million in May <strong>2003</strong>.<br />
• <strong>2002</strong>/03 market share information is not yet available.<br />
• According to preliminary data collected by the World <strong>Tourism</strong> Organisation (WTO), international tourist arrivals<br />
increased by three per cent in <strong>2002</strong>. Growth was generated predominantly in short-haul travel, with long-haul<br />
travel severely affected by a difficult operating environment in the air transport industry. WTO data for<br />
<strong>2002</strong>/03 is not yet available.<br />
• The average and total trip expenditure in <strong>Australia</strong> increased by two per cent in nominal terms for the year<br />
ended 31 March <strong>2003</strong>. Data for <strong>2002</strong>/03 is not yet available.<br />
• A total of 117.8 million visitor nights were spent in <strong>Australia</strong> during the year ended 31 March <strong>2003</strong>. Data to the<br />
end of June <strong>2003</strong> is not yet available. In April <strong>2002</strong>, the TFC forecast 130.3 million visitor nights during <strong>2003</strong> and<br />
then twice revised the forecast down to 116.2 million in December <strong>2002</strong> and to 114.2 million in May <strong>2003</strong>.<br />
• Real growth in direct tourism export earnings of two per cent was achieved in <strong>2002</strong>. Data for <strong>2002</strong>/03 is not<br />
yet available. In April <strong>2002</strong>, the TFC forecast six per cent growth in <strong>2002</strong>/03, then revised the forecast down to<br />
one per cent growth in December <strong>2002</strong>.<br />
• In the year ended 31 March <strong>2003</strong>, 20 per cent of visitor nights were spent outside the major destinations:<br />
Sydney, ACT, Melbourne, Brisbane, Gold Coast,Tropical North Queensland, Adelaide and Perth, down slightly<br />
from 21 per cent in the previous year. Data for <strong>2002</strong>/03 is not yet available.<br />
• The tourism industry directly employed 549,000 people in 2001/02, a marginal decrease on 2000/01.<br />
Employment figures for <strong>2002</strong>/03 are not yet available.<br />
• The ATC participated in the Sustainable <strong>Tourism</strong> Roundtable established in 2001/02 with the Department<br />
of Industry,<strong>Tourism</strong> and Resources (DITR).<br />
• The ATC has participated in discussions with Environment <strong>Australia</strong> (incorporating the <strong>Australia</strong>n Heritage<br />
Commission); DITR; the Indigenous <strong>Tourism</strong> Leaders Group; the Bureau of <strong>Tourism</strong> Research; Cooperative<br />
Research Centre for Sustainable <strong>Tourism</strong>; Ecotourism <strong>Australia</strong> and Green Globe 21.The Commission also<br />
joined the National <strong>Tourism</strong> and Heritage Taskforce of the Environment Protection and Heritage Council.<br />
• Information on the ATC’s position on sustainable tourism, with links to agencies and resources was added<br />
to the ATC’s industry website, ATC Online.<br />
• The ATC worked with Ecotourism <strong>Australia</strong> to profile accredited ecotourism product at ATE.<br />
• A review of the ATC’s environmental management systems and practices was completed in June <strong>2003</strong>.<br />
• Consumer information on responsible tourism was added to the ATC’s consumer website, australia.com.<br />
7
Chairman and Managing Director’s <strong>Report</strong><br />
The year <strong>2002</strong>/03 presented the ATC and the tourism<br />
industry with unique challenges and opportunities. While<br />
still in the shadow of the terrorist assault in New York on<br />
September 11, 2001, we experienced the terrorist attack<br />
in Bali, war in Iraq and SARS. <strong>Australia</strong> lost its innocence<br />
and its relative isolation and, as a consequence, we too<br />
were impacted by the resultant wariness of the travelling<br />
public and the inevitable downturn in tourism across<br />
the globe. In all the circumstances, it was a remarkable<br />
achievement to attract 4.7 million international visitors<br />
to <strong>Australia</strong> in <strong>2002</strong>/03, a decline of only 2 per cent on<br />
the previous year.<br />
This result was neither accidental nor coincidental.The<br />
ATC, in partnership with the tourism industry and assisted<br />
by the Federal Government, instigated a recovery strategy<br />
for <strong>Australia</strong> that began with the monitoring of the global<br />
situation and later developed into the rollout of specific<br />
campaigns to stimulate travel.<br />
We postponed our marketing programs in all markets<br />
and – using professional research, advice from ATC offices<br />
and close collaboration with our industry partners –<br />
reassessed where our funds would have the greatest<br />
impact in the short term. Given the fluid global situation,<br />
we needed to be as flexible as possible. When the time<br />
was right we initiated our recovery strategy in those<br />
markets that were most likely to deliver returns of<br />
substance and to do so sooner rather than later. Phase<br />
one of the strategy was aimed at stimulating travel in<br />
markets such as New Zealand and Japan where consumer<br />
confidence had improved.This was followed by reintroducing<br />
campaigns in the United States, the United<br />
Kingdom and Korea.<br />
The ATC was provided with an additional $10 million<br />
in funding for recovery strategies from the Federal<br />
Government which the ATC leveraged an additional<br />
$10 million. In total, we allocated $33 million to marketing<br />
in ten carefully chosen countries with the aim of<br />
stimulating demand for travel to <strong>Australia</strong>.These recovery<br />
strategies provided the first step in building a stable<br />
platform from which we could move forward.<br />
A strong brand<br />
The last 18 months have demonstrated the vulnerability<br />
and volatility of international tourism and the critical<br />
importance of <strong>Australia</strong> sustaining consistent, distinctive and<br />
compelling messages to consumers across all key markets.<br />
The professionalism of our marketing strategies needs<br />
to reflect the increasing discernment of international<br />
travellers and the ever-increasing competitiveness of<br />
other destinations.<br />
It is against this background that we have embarked on<br />
perhaps the most important current project for <strong>Australia</strong>n<br />
inbound tourism – the refreshing of Brand <strong>Australia</strong>. It<br />
has become increasingly evident that we need an even<br />
stronger, more definitive image of our country in tourism<br />
promotions across all our markets.The culmination of this<br />
work will be launched in <strong>2003</strong>/04 and will redefine all our<br />
marketing activities in what we believe will be innovative<br />
and compelling ways.<br />
More than advertising<br />
A focus on new and innovative ways to promote our<br />
country overseas has been a priority over the past year.<br />
The increased competition from other destinations, as<br />
well as ever-evolving consumer needs and interests, has<br />
demanded that the ATC continue to review and revise<br />
its promotional activities.<br />
An example of this process has been the development of<br />
the ATC’s <strong>Australia</strong>n <strong>Tourism</strong> Ambassador program which<br />
gained further momentum this year, helping to personalise<br />
and diversify our image in key markets. Beginning last year<br />
with Ian Thorpe in Japan, the program was extended in<br />
<strong>2002</strong>/03 to include popular Italy-based model Megan Gale<br />
for the Italian market and five-time world champion surfer,<br />
Layne Beachley, to entice the youth market from the US.<br />
Further such appointments will be made in <strong>2003</strong>/04.<br />
The expansion of the Celebrate <strong>Australia</strong> promotion<br />
beyond Singapore to Hong Kong and China has also<br />
delivered benefits for the industry, generating promotion<br />
and awareness of <strong>Australia</strong>.<br />
One of the most enduring and still one of the most<br />
potent programmes conducted by the ATC is the Visiting<br />
Journalists Programme and it merits recording here that<br />
it continues to earn its way with spectacular results by<br />
way of positive media publicity around the world. Last<br />
year, the ATC hosted 1,027 print, broadcast and television<br />
journalists from around the world and what they<br />
produced upon their return – which was overwhelmingly<br />
positive – generated publicity to an estimated value of<br />
8
$1.4 billion.The state tourism organisations, along with<br />
the tourism industry across <strong>Australia</strong>, were again most<br />
generous in their support of this important program.<br />
Partnerships<br />
A positive, collaborative relationship with the <strong>Australia</strong>n<br />
tourism industry is central to the activities of the ATC.<br />
This partnership continues to form a key platform for all<br />
our activities, from trade shows to marketing programs,<br />
with industry providing an additional $22 million for<br />
marketing activities across the globe in <strong>2002</strong>/03.<br />
The ATC increased its commitment to consult and share<br />
insights with the tourism industry this year, with a national<br />
road show and forums being held with key players to gain<br />
their input into our strategic direction.<br />
Extensive consultation with industry on where the ATC<br />
makes its greatest impact to inbound tourism also allowed<br />
for the development of new Key Performance Indicators<br />
for the Commission.This resulted in a set of corporate<br />
objectives being developed that would support the<br />
industry’s key priorities, such as increasing arrivals,<br />
improving yield and encouraging dispersal.<br />
Partnerships with government agencies are also being<br />
developed with the Commission signing memoranda<br />
of understanding with Austrade and the Department<br />
of Education.<br />
Strategic direction for the future<br />
In tandem with the implementation of short term<br />
strategies to lead recovery, the Commission has also<br />
developed a strategy for the longer term, which will<br />
ensure it delivers the greatest return for the <strong>Australia</strong>n<br />
tourism industry.<br />
The key elements of this strategy are based on better<br />
understanding our consumers, prioritising our markets,<br />
keeping ahead of competitors and making the most of<br />
our resources. External factors that continue to present<br />
challenges for our industry include increased competition<br />
from other destinations, inbound aviation capacity and<br />
economic factors.<br />
Our strategy for <strong>2003</strong> and beyond is to concentrate on<br />
the 20 markets that deliver 90 per cent of all international<br />
arrivals to <strong>Australia</strong>. Better prioritisation will allow the<br />
ATC to focus resources in key markets and allocate<br />
funds to key projects, such as new research and brand<br />
development.This will help build a profitable and<br />
sustainable future for our industry. Simultaneously, we are<br />
looking at ways to better inoculate ourselves against future<br />
risks so that, when and if unforeseen challenges do arise,<br />
we have the strength and resilience to weather them.<br />
In May <strong>2003</strong>, the Federal Government released a medium<br />
to long-term strategy for the tourism industry (Green<br />
Paper) which presented options for a 10 year plan to steer<br />
the <strong>Australia</strong>n tourism industry through new circumstances<br />
as they arise.We look forward to working with the<br />
industry to progress this draft strategy to its next stage.<br />
While our industry will continue to face many challenges,<br />
we remain confident that the ATC, in partnership with<br />
industry and government, will see the ongoing development<br />
of a strong and prosperous inbound industry.<br />
We are most appreciative of the support the Federal<br />
Government continues to extend to the ATC and to the<br />
industry. In this context, we are especially grateful to the<br />
relevant Federal Ministers, the Hon. Ian Macfarlane and<br />
the Hon. Joe Hockey.<br />
The support extended by the state tourism authorities<br />
has, as always, been strong and readily forthcoming.<br />
We are most appreciative.<br />
The <strong>Australia</strong>n tourism industry – especially those who<br />
have been actively involved in the inbound sector – has<br />
been strong in its support and generous with its advice<br />
during what has been a difficult period.<br />
Finally, this most challenging year would have been much<br />
more demanding had it not been for the strong<br />
commitment and enthusiasm of the ATC board of<br />
directors and the entire management team, in <strong>Australia</strong><br />
and overseas.<br />
Nick Evers<br />
Chairman<br />
Ken Boundy<br />
Managing Director<br />
9
10<br />
<strong>Report</strong> of Operations
Eastern<br />
Hemisphere<br />
Overview<br />
The Eastern Hemisphere markets include Japan, South East Asia – covering Indonesia, Malaysia, Singapore,<br />
and Thailand, and North East Asia – covering Hong Kong, China,Taiwan, Korea and The Philippines.<br />
While these markets have proved to be volatile, they have recovered well, despite the challenges created<br />
by international conflict and SARS.The first eight months of the year from July to February showed positive<br />
results and indicated that consumer confidence in travel was starting to rebound following the effects of<br />
September 11 the previous year.<br />
High repeat visitation from Asia (not including Japan) means that the ATC must communicate new reasons<br />
to visit, which was achieved through presenting varied holiday options such as soft adventure, cosmopolitan<br />
experiences and selling <strong>Australia</strong> as a ‘short break’ destination.<br />
Once the signs appeared that consumers were again ready to travel, the ATC launched an extensive<br />
recovery campaign in Singapore, Hong Kong, Korea, Malaysia, China,Taiwan and Japan under the theme<br />
of ‘<strong>Australia</strong> – You’re Welcome’.<br />
This activity comprised public relations, destination branding and promotions, and positioned <strong>Australia</strong><br />
as a friendly and welcoming country.<br />
A key development in this region has been the strong engagement with industry and government with the<br />
formation of formal working groups.These include the China Joint Monitoring Group, the Japan <strong>Tourism</strong><br />
Implementation Group and the <strong>Australia</strong>n <strong>Tourism</strong> Export Council Japan and Asia Policy Panels.<br />
Business tourism, largely based on promoting <strong>Australia</strong> as a destination for employee incentive programs,<br />
was a strong segment for <strong>Australia</strong> in Thailand and Taiwan. A range of promotions and trade activities were<br />
conducted to increase awareness of <strong>Australia</strong> among corporations in these countries.<br />
Airline capacity remained a key issue throughout the year, with airlines reducing flights from the region and<br />
overall seat availability from March-June. A key challenge facing <strong>Australia</strong> will be to build back these services<br />
in line with demand. Charter operators from Japan and Singapore will continue to provide some respite<br />
from capacity shortfalls during peak periods.<br />
The year ahead<br />
Industry relationships remain critical to the ATC’s success. In the year ahead, the ATC will continue to work<br />
closely with operators and airlines on promotional activities and seek to improve our servicing of the<br />
industry.<br />
As airline capacity to <strong>Australia</strong> from Japan is restored by the end of <strong>2003</strong>, <strong>Australia</strong> can expect incremental<br />
growth towards the end of the year and beyond.<br />
12
Japan<br />
Overview<br />
Visitor arrivals from Japan remained constant during <strong>2002</strong>/03 with a total of 658,600 recorded<br />
for the year.<br />
Before SARS, visitor arrivals from Japan had been tracking well and were up by 6.2 per cent as<br />
at December <strong>2002</strong> compared with the previous year.This was largely due to the strong growth<br />
experienced in the last quarter of <strong>2002</strong>, which were in contrast to the post September 11<br />
period the year before.<br />
The momentum continued in January and February <strong>2003</strong>, however, the threat of a war in<br />
Iraq and international terrorist activity caused great concern to the Japanese travelling public,<br />
resulting in a downturn in arrivals not only to <strong>Australia</strong>, but to all overseas destinations.<br />
Perceptions of <strong>Australia</strong> were still positive, viewed by many as a safe haven.<strong>Australia</strong>’s overall<br />
market share and general attractiveness has improved at a time of great uncertainty within<br />
the Japanese market.<br />
Highlights and activities<br />
• The JAL New Style <strong>Australia</strong> Campaign<br />
targeting the Japanese young female<br />
segments was extended for the third<br />
year in <strong>2002</strong>/03. In addition, JAL<br />
launched a new national multi media<br />
campaign aimed at creating a greater<br />
sense of confidence in the Japanese<br />
travelling public.The AUD$25 million<br />
JAL FLY JAL campaign featured only<br />
two destinations: Hawaii and <strong>Australia</strong>.<br />
JAL also selected <strong>Australia</strong> as the<br />
destination of choice for their annual<br />
national newspaper media<br />
familiarisation which generated more<br />
than AUD$1.3 million in equivalent<br />
advertising value.<br />
• Ian Thorpe continued in his capacity as<br />
<strong>Australia</strong>n Holiday Ambassador to<br />
Japan during the year. Ian was featured<br />
in national newspaper advertisements,<br />
railway station billboards, online<br />
promotions, a nationally televised<br />
90 minute television program, and was<br />
the face of <strong>Australia</strong>’s post SARS/IRAQ<br />
recovery campaign.<br />
• The Japan <strong>Australia</strong> Advisory Group<br />
(JAAG) was formed, with high level<br />
representation from the major travel<br />
companies in Japan who account for<br />
about 70 per cent of all Japanese travel<br />
to <strong>Australia</strong>. A major initiative, Vision<br />
One Million, which has the objective of<br />
attracting one million visitors per annum<br />
from Japan to <strong>Australia</strong> by 2010, was<br />
successfully launched in Tokyo and<br />
endorsed by the members of JAAG,<br />
the <strong>Australia</strong>n Ambassador, STOs and<br />
the airlines.This is a first for a National<br />
Tourist Office in Japan.<br />
• The ATC, in conjunction with the<br />
STOs, Japan Airlines, Qantas and the<br />
<strong>Australia</strong>n Embassy, founded Club Oz<br />
groups in Tokyo, Osaka, Nagoya and<br />
Fukuoka.The aim was to develop an<br />
ongoing dialogue with the senior<br />
managers of key industry partners in<br />
Japan. OZNET groups, which have a<br />
similar purpose to Club Oz, but involve<br />
middle management of the agencies,<br />
have also been organised in Tokyo,<br />
Osaka, Nagoya, Fukuoka and Sapporo.<br />
• The arrival of <strong>Australia</strong>n Airlines in<br />
October <strong>2002</strong>, provided direct flights to<br />
<strong>Australia</strong> from Nagoya and Osaka.To<br />
capitalise on this opportunity, the ATC<br />
partnered with Qantas and <strong>Australia</strong>n<br />
Airlines on campaigns targeting the<br />
mature female market. ATC also<br />
partnered with Qantas and <strong>Tourism</strong><br />
Victoria on the launch of a new Tokyo-<br />
Melbourne daily service in July <strong>2002</strong>.<br />
• The ATC continues to expand its<br />
use of technology in this market,<br />
with upgrades to content on the<br />
ATC’s Japanese language website<br />
for consumers, www.australia.jp, a<br />
monthly email magazine (which<br />
has around 30,000 subscribers) and<br />
the development of a specialised<br />
school excursion website for the<br />
education market.<br />
• A delegation of 64 <strong>Australia</strong>n suppliers<br />
visited four key source market centres<br />
in Japan in February <strong>2003</strong> for the Japan<br />
<strong>Australia</strong> Mission <strong>2003</strong>. Over the five<br />
day event, <strong>Australia</strong>n sellers met with<br />
up to 700 buyers and key media in<br />
Fukuoka, Nagoya, Osaka and Tokyo.<br />
The JAL FLY JAL campaign featured<br />
<strong>Australia</strong> as a holiday destination<br />
13
South East Asia<br />
Overview<br />
Offices in the South East Asia region are responsible for marketing in Malaysia, Singapore,<br />
India,Thailand and Indonesia.<br />
Visitor arrivals from South East Asian countries recorded mixed results across the region as a result<br />
of the Bali bombing, Iraq war and SARS. However, there were signs of recovery once the World Health<br />
Organisation (WHO) lifted travel advisories for SARS affected countries in late May.<br />
Major marketing activities were initiated in Singapore and Malaysia throughout the year but some were<br />
postponed or cancelled in April/May.Throughout this period the ATC supported the region by regularly<br />
communicating information from official <strong>Australia</strong>n health authorities, reinforcing the message that<br />
<strong>Australia</strong> was not affected by SARS and continued to welcome all international visitors.<br />
Airline capacity from Singapore, Malaysia and Thailand continued to present challenges.The late booking<br />
patterns by consumers from these markets compared to the long-haul European traveller who book<br />
further in advance, resulted in a shortage of seats at certain times of the season.<br />
Business tourism was the key focus for Thailand.With the strong economy, a number of companies<br />
are now using travel to <strong>Australia</strong> as a reward for their staff and clients.<br />
Targeting the high socio-economic sector continued in India through public relations including<br />
the Visiting Journalist Program and media advocacy.<br />
The year ahead<br />
In an effort to focus on those countries where the ATC can make the most impact and deliver the best<br />
returns, a rationalisation of the ATC’s market presence was undertaken for the <strong>2003</strong>/04 financial year.<br />
In Singapore the ATC will be identifying and focusing on those segments that present the strongest growth<br />
potential. In India activities will focus on public relations and travel industry development through the Aussie<br />
Specialist Program.The focus in Thailand and Malaysia will be on providing travel trade support through the<br />
Aussie Specialist Program and targeted servicing of the industry.<br />
The ATC will have no direct presence in Indonesia, but will continue to service this market through other<br />
channels such as the Visiting Journalists Program.<br />
14
India<br />
<strong>Australia</strong> received a total of 41,200 visitors from India in <strong>2002</strong>/03, a decline of 13 per cent<br />
over the previous year.<br />
The ATC’s marketing strategy for India was aimed at capturing the Indian traveller at the top end<br />
of the market, targeting upscale family groups, honeymooners and the incentive market.The focus was<br />
on promotion and media activities including celebrity endorsement on prime time television dramas<br />
and leading lifestyle magazines, as well as online promotions and consumer roadshows.Another key<br />
objective in the market was to establish a solid distribution network via the development of the<br />
Aussie Specialist Program.<br />
Arrivals in the first months of <strong>2002</strong>/03 were impacted by the temporary closure of the <strong>Australia</strong>n<br />
visa office due to the India/Pakistan conflict.<br />
Highlights and activities<br />
• In January <strong>2003</strong>, the ATC and the<br />
<strong>Australia</strong>n industry hosted India’s<br />
number one rated TV drama series<br />
Kyunki Saas Bhi Kabhi Bahu Thi and its<br />
associated production Kasaauti Zindagii<br />
Kay.This included five minutes on<br />
<strong>Australia</strong> per episode over a 16-week<br />
period – the equivalent of AUD$40<br />
million in publicity.This was the first<br />
time that an Indian drama series had<br />
been filmed abroad.<br />
• The ATC hosted prominent Indian<br />
celebrities on a familiarisation to<br />
Melbourne and the Gold Coast in<br />
November <strong>2002</strong>. As a result of the visit,<br />
<strong>Australia</strong> appeared on the front cover<br />
of Femina, India’s leading women’s<br />
magazine and generated editorial<br />
features worth AUD$1 million.Three<br />
press trips by Indian media visiting<br />
the Blue Mountains, Hunter Valley and<br />
Gold Coast, resulted in editorial<br />
coverage with an approximate value of<br />
AUD$243,000.The ATC also hosted<br />
two celebrity writers to the Melbourne<br />
Food Festival resulting in articles in<br />
leading Indian daily newspapers and<br />
magazines with an equivalent value<br />
of AUD$400,000.<br />
• In August <strong>2002</strong>, the ATC in association<br />
with Emirates Airlines hosted a<br />
travelogue Musafir Hoon Yaroon on the<br />
leading entertainment channel Star Plus.<br />
The five episodes of the show featured<br />
the tourist attractions of Perth, Cairns<br />
and the Great Barrier Reef, and<br />
generated publicity worth more than<br />
AUD$6 million.<br />
Femina, India’s<br />
leading women’s<br />
magazine, ran a<br />
prominent cover<br />
story on <strong>Australia</strong><br />
• Recruitment of Aussie Specialist agents<br />
in India exceeded target by 37 per<br />
cent.There is now a total of 137 Aussie<br />
Specialists across India, and interest in<br />
the program is one of the highest in<br />
the region.<br />
Aussie Specialist Program The Aussie Specialist Program was developed to<br />
educate retail travel agents in overseas markets on <strong>Australia</strong>n travel products and<br />
services.These ‘Aussie experts’ undertake extensive training and familiarisations<br />
conducted by the ATC and State and Territory <strong>Tourism</strong> Organisations, and have<br />
an in-depth understanding of <strong>Australia</strong> and <strong>Australia</strong>n tourism product.Various<br />
resources are distributed to these agents on a regular basis to enhance their<br />
product knowledge and to motivate them to sell <strong>Australia</strong>.<br />
15
Indonesia<br />
<strong>Australia</strong> received a total of 86,900 visitors from Indonesia in <strong>2002</strong>/03, a decline of 8 per<br />
cent over the previous year.<br />
The Bali terrorist incident impacted on airline capacity and as a result arrivals declined<br />
during the peak holiday season.<br />
With stronger economic growth, the interest in incentive travel has increased among local<br />
Indonesian companies and <strong>Australia</strong> is a favoured destination. In <strong>2002</strong>/03 contacts were<br />
developed with influential corporate organisations to capitalise on this trend.<br />
Highlights and activities<br />
• Two drama series showcasing Perth<br />
and Melbourne were filmed with Indika<br />
Film Entertainment and Indonesia<br />
Diva Drama.<br />
• A fashion shoot by leading women’s<br />
magazine, Femina, was hosted in<br />
Queensland and Victoria in<br />
November <strong>2002</strong>.<br />
• A total of 27 travel agents registered<br />
for the Aussie Specialist Program in<br />
Indonesia, and training was conducted<br />
for 240 agents across four<br />
Indonesian cities.<br />
Celebrate <strong>Australia</strong> Celebrate <strong>Australia</strong> is a joint<br />
initiative between the <strong>Australia</strong>n Tourist Commission, the<br />
<strong>Australia</strong>n Trade Commission and the <strong>Australia</strong>n High<br />
Commissions in Singapore, Malaysia and Hong Kong.The<br />
promotion features a month long celebration of <strong>Australia</strong>n<br />
film, food, wine, fashion, arts & culture, education and<br />
contemporary lifestyle.<br />
More than 30 events, ranging from fashion shows,<br />
performing arts, film festivals, arts and cultural exhibitions,<br />
and wine and dine promotions are staged to showcase<br />
<strong>Australia</strong>n style, creativity and capabilities.<br />
The Celebrate <strong>Australia</strong> initiative provides an excellent<br />
opportunity to promote <strong>Australia</strong><br />
as a destination for business,<br />
education and leisure travel.<br />
Celebrate <strong>Australia</strong> promotions<br />
were held in Singapore,<br />
Hong Kong, Malaysia and China.<br />
16
Malaysia<br />
<strong>Australia</strong> received a total of 142,400 visitors from Malaysia in <strong>2002</strong>/03, a decline of<br />
8 per cent over the previous year.<br />
Events such as the Bali bombings and SARS, coupled with airline capacity limitations,<br />
impacted on visitation numbers.<br />
The ATC aimed to increase <strong>Australia</strong>’s profile in this market through a series of marketing<br />
activities which included events, advertising and publicity.The industry supported the<br />
Aussie Specialist Program with an increase in the number of registered agents over the<br />
12 month period.<br />
Highlights and activities<br />
• A sponsorship deal with the Astro<br />
cable television network saw <strong>Australia</strong><br />
featured on Malaysian television for<br />
13 weeks on the Chinese language<br />
channel Wah Lai Toi. The program was<br />
also promoted on local television<br />
station Channel NTV7 for eight weeks<br />
in April and May <strong>2003</strong>.<br />
• The ATC worked with State<br />
and Territory partners to publish a<br />
16-page supplement featuring the<br />
Six Senses of Travel – the five senses<br />
plus a ‘sense of freedom’ offered<br />
in <strong>Australia</strong>.The supplement was<br />
published in the leading English<br />
language newspaper Star.<br />
• The first phase of the Rediscover<br />
<strong>Australia</strong> campaign was launched<br />
in September <strong>2002</strong> targeting the<br />
Chinese-speaking group traveller<br />
market, including the family segment.<br />
• In <strong>2002</strong>/03 the number of Aussie<br />
Specialist agents increased by<br />
11 per cent to a total of 106 agents<br />
and 35 companies across Malaysia.<br />
The Rediscover <strong>Australia</strong> print campaign<br />
targeted the Chinese-speaking group<br />
traveller in Malaysia<br />
17
Singapore<br />
<strong>Australia</strong> received a total of 261,600 visitors from Singapore in <strong>2002</strong>/03, a decline of<br />
12 per cent over the previous year.<br />
Singapore is <strong>Australia</strong>’s largest source market for arrivals from Asia (excluding Japan) and<br />
has a high level of repeat visitation.This presents unique challenges in the market and<br />
activity is focused on finding creative ways to entice visitors to keep returning.<br />
A number of initiatives were launched during the year to maintain interest in the<br />
destination and drive visitors to discover new regions across the country.<br />
Highlights and activities<br />
• The Celebrate <strong>Australia</strong> <strong>2003</strong> promotion<br />
was awarded Gold for the ‘Best <strong>Tourism</strong><br />
Campaign’ and ‘Best Event Marketing<br />
Campaign’ at the Promotion Marketing<br />
Awards of Asia <strong>2003</strong> (PMAA <strong>2003</strong>).<br />
• The Discover <strong>Australia</strong> campaign,<br />
launched in September <strong>2002</strong>, was<br />
designed to give Singaporeans new<br />
reasons to visit <strong>Australia</strong>.The campaign<br />
aimed to drive traffic and interest<br />
during the low season. A television,<br />
newspaper and magazine advertising<br />
campaign was supported by a public<br />
relations program, including placement<br />
of editorial in key media including<br />
The Straits Times and Lianhe Zao Bao.<br />
The campaign resulted in a total of<br />
1,591 bookings between February<br />
and April <strong>2003</strong>.<br />
• Extending the Discover <strong>Australia</strong> theme,<br />
the ATC in conjunction with the<br />
STOs initiated and co-produced a<br />
nine-episode reality television game<br />
in prime-time on Singapore’s highest<br />
rating channel, Channel 8.The show was<br />
one of the highest rating programs for<br />
Singapore and the biggest production<br />
ever undertaken by Singapore’s<br />
MediaCorp TV and a National Tourist<br />
Organisation.The program generated in<br />
excess of $AUD25 million in publicity<br />
value over the two-month period.<br />
• The Aussie Specialist Program received<br />
strong support from key travel agency<br />
partners, with 12 new travel companies<br />
registering for the program in <strong>2002</strong>/03.<br />
Since its launch in early 2001, a total<br />
of 142 agents from 26 travel agencies<br />
in Singapore have registered for<br />
the program.<br />
Print advertisement for<br />
Celebrate <strong>Australia</strong> in Singapore<br />
18
Thailand<br />
<strong>Australia</strong> received a total of 75,500 visitors from Thailand in <strong>2002</strong>/03, a decline of six per<br />
cent over the previous year.<br />
Thailand’s strongly performing economy resulted in high levels of interest for the outbound<br />
incentive market, with <strong>Australia</strong> well placed to secure business from this sector.<br />
Highlights and activities<br />
• Thailand is leading the growth in<br />
the incentive market to <strong>Australia</strong><br />
with a total of 33 incentive groups<br />
visiting in <strong>2002</strong>/03 from a variety<br />
of industries including insurance,<br />
automotive, pharmaceutical, and<br />
telecommunications.<br />
• The Free Style <strong>Australia</strong> campaign was<br />
launched on <strong>Australia</strong> Day in January<br />
<strong>2003</strong> and resulted in 1,500 enquiries<br />
by May <strong>2003</strong>.<br />
• At the end of <strong>2002</strong>/03, 85 agents had<br />
registered for the Aussie Specialist<br />
Program in Thailand.<br />
The Free Style <strong>Australia</strong> print campaign<br />
resulted in 1500 enquires from Thailand<br />
<strong>Australia</strong> – You’re Welcome A number of tourism marketing initiatives positioning <strong>Australia</strong><br />
as a welcoming holiday destination were launched across Eastern Hemisphere markets to rebuild<br />
consumer confidence in travel and boost holiday bookings to <strong>Australia</strong>.<br />
The ‘<strong>Australia</strong> – You’re Welcome’ campaign promoted <strong>Australia</strong> as a friendly and welcoming<br />
destination, and reinforced one of <strong>Australia</strong>’s strongest attributes – its people.<br />
The promotion was rolled out across Singapore, Hong Kong, Korea, Malaysia, China, India,Taiwan<br />
and Japan.Advertisements in newspapers and magazines, as well as TV and radio commercials were<br />
supported by consumer competitions, media promotions and the<br />
Visiting Journalists Program.<br />
The new campaign was a result of the $10 million allocation of Federal<br />
Government funding to the ATC announced in June <strong>2003</strong>.<br />
19
North and North East Asia<br />
Overview<br />
Offices in the North East Asia region are responsible for marketing in Hong Kong, China,<br />
Taiwan, Korea and The Philippines.<br />
SARS had a major impact on outbound travel in most North Asia markets except for Korea.<br />
<strong>Australia</strong> continued to perform well in the long haul sector particularly the Korean honeymooner<br />
segment.With the containment of SARS, outbound travel began to show signs of recovery in China,<br />
Hong Kong and Taiwan at the end of the year.<br />
<strong>Australia</strong> performed well in the business tourism sector across all North Asian markets,<br />
experiencing significant growth in incentive groups from Taiwan, Hong Kong and China.<br />
The year ahead<br />
The progress of the Approved<br />
Destination Status (ADS) in China<br />
and increased number of ADS<br />
outbound travel agents will have<br />
a positive impact on the number<br />
of arrivals to <strong>Australia</strong>. China and<br />
Korea are expected to be the<br />
fastest growing markets for<br />
<strong>Australia</strong> in the <strong>2003</strong>/4 fiscal year.<br />
The environment in Hong Kong<br />
will remain very competitive and<br />
destination and price promotions<br />
are expected to increase. While<br />
the traditional group tour market<br />
is expected to decline, the<br />
younger segments and incentive<br />
travel will provide potential for<br />
<strong>Australia</strong>.<br />
In the Philippines the ATC will<br />
continue to maintain basic<br />
industry servicing and review<br />
opportunities as they arise, but<br />
will not have a physical presence<br />
in the market.<br />
20
Hong Kong<br />
<strong>Australia</strong> received a total of 140,700 visitors from Hong Kong in <strong>2002</strong>/03, a decline of five per cent<br />
over the previous year.<br />
Despite SARS affecting arrivals growth from Hong Kong,<strong>Australia</strong> has increased its market share<br />
over some competing long-haul destinations.Younger segments are emerging quickly and demand<br />
for packaged tours continues to increase.<br />
The key objectives for the market in <strong>2002</strong>/03 were to maintain group arrivals by offering new product<br />
experiences in programs; grow the partially packaged segment through the development of flexible<br />
products; increase high yield incentive arrivals; and enhance the quality of the distribution network<br />
through the Aussie Specialist Program.<br />
Highlights and activities<br />
• The successful launch of <strong>Australia</strong>n<br />
Airlines in October <strong>2002</strong> generated<br />
greater exposure for Cairns and the<br />
Gold Coast and attracted repeat<br />
visitations from Hong Kong.<br />
• Launched in May <strong>2003</strong>, the ‘<strong>Australia</strong> –<br />
You’re Welcome’ campaign, made<br />
possible by budget reallocation and<br />
additional funding, promoted both<br />
independent and group travel packages<br />
to a number of <strong>Australia</strong>n destinations.<br />
Print advertisements were run in key<br />
publications in Hong Kong, generating<br />
6,900 bookings.<br />
• In April <strong>2003</strong>, the ATC co-hosted a<br />
media briefing with the <strong>Australia</strong>n<br />
Consulate General and the Hong Kong<br />
Travel Industry Council (TIC) to<br />
broadcast the message ‘<strong>Australia</strong><br />
Welcomes You’ to the public in Hong<br />
Kong.The media briefing provided facts<br />
about SARS in relation to <strong>Australia</strong><br />
with the theme of ‘Joint Efforts for a<br />
Bright Future’.<br />
• A cooperative campaign conducted in<br />
October <strong>2002</strong> with partners generated<br />
4,700 responses and 1,098 bookings.<br />
In March <strong>2003</strong> the ATC, in conjunction<br />
with Cathay Pacific Holidays, conducted<br />
a campaign which generated 2,200<br />
responses and 400 bookings.<br />
The <strong>Australia</strong>-You’re Welcome recovery campaign in Hong Kong generated 6,900 bookings<br />
21
China<br />
<strong>Australia</strong> received a total of 177,100 visitors from mainland China in <strong>2002</strong>/03, an increase of<br />
three per cent over the previous year.<br />
The SARS outbreak slowed the strong growth from China, which was growing at<br />
19 per cent up until 30 March <strong>2003</strong>.A continued investment in brand marketing has increased product<br />
and destination awareness of consumers.<br />
Key objectives for this market in <strong>2002</strong>/03 were to grow arrivals by generating awareness and interest<br />
through activities in Beijing, Shanghai and the Guangdong Province and to enhance the quality of the<br />
distribution network.<br />
Highlights and activities<br />
• The ATC continued its investment<br />
in building <strong>Australia</strong>’s brand through<br />
television advertising and print<br />
advertorials in Beijing, and outdoor<br />
advertising and print advertorials<br />
in Shanghai.<br />
• Six major consumer promotions<br />
including Celebrate <strong>Australia</strong> <strong>2003</strong> and<br />
Singapore Airlines Trendy <strong>Australia</strong><br />
promotion were conducted, reaching<br />
1.95 million targeted consumers.<br />
• Aussie Specialist Program training saw<br />
165 agents trained during the year as<br />
well as successful networking days held<br />
in Beijing and Shanghai.<br />
• Three advertising campaigns were<br />
conducted in Guangdong Province and<br />
one in Beijing during the first half of<br />
<strong>2002</strong>/03, generating over 2,000<br />
bookings to <strong>Australia</strong>.<br />
• <strong>Australia</strong> hosted six key travel trade<br />
representatives from China at<br />
Dreamtime <strong>2002</strong>; 15 key trade and<br />
corporate buyers for the Team <strong>Australia</strong><br />
Business Events Educational (TABEE)<br />
<strong>2003</strong>; and 61 agents from 45<br />
organisations attended the <strong>Australia</strong>n<br />
<strong>Tourism</strong> Exchange (ATE) <strong>2003</strong>.<br />
• The 6th <strong>Australia</strong>n Travel Mission to<br />
China was held from 4-7 November<br />
<strong>2002</strong> and was supported by 51<br />
organisations representing <strong>Australia</strong>n<br />
travel product and 93 buyer<br />
organisations. A total of 3,268<br />
appointments were generated over<br />
the four days of the program.<br />
The ATC and Singapore Airlines Trendy <strong>Australia</strong><br />
campaign reached 1.95 million consumers<br />
22
Taiwan<br />
<strong>Australia</strong> received a total of 80,800 visitors from Taiwan in <strong>2002</strong>/03, a decline of 18 per cent<br />
over the previous year.<br />
The decline in Taiwan is due to strong competition from major Asian destinations and the decline<br />
in long haul travel.<br />
<strong>Australia</strong> has performed well in the incentive travel sector and this market offers some of the greatest<br />
growth potential.The ATC has successfully secured a number of large incentive groups, which have<br />
selected <strong>Australia</strong> for their overseas conferences in 2004 and 2005. In addition, the launch of ‘single<br />
destination’ products has further reinforced <strong>Australia</strong> as a suitable ‘short-break’ destination.<br />
Highlights and activities<br />
• Three separate Have a Great Break<br />
campaigns were launched targeting<br />
the young singles and couples market<br />
and positioning <strong>Australia</strong> as an ideal<br />
destination for a ‘short-break’.The<br />
theme was also the focus of the ATC’s<br />
participation in the Taipei International<br />
Travel Fair (ITIF) which was attended<br />
by 50,000 people.<br />
• <strong>Australia</strong>’s profile in Taiwan was<br />
boosted via a two month multi-media<br />
promotion launched in November<br />
<strong>2002</strong>.The ATC worked with Uni<br />
President Enterprises to secure<br />
approximately AUD$830,000 of<br />
exposure for <strong>Australia</strong> through a<br />
combination of television advertising,<br />
print ads, posters and in store<br />
collateral in 7-11 convenience<br />
stores throughout Taiwan.<br />
The Have a Great Break<br />
campaign targeted young<br />
Taiwanese singles and couples<br />
23
Korea<br />
Korea continued to show growth in visitor arrivals despite the difficult global travel environment.<br />
<strong>Australia</strong> received a total of 195,800 visitors from Korea in <strong>2002</strong>/03, an increase of eight per cent<br />
over the previous year.<br />
The key objectives for this market in <strong>2002</strong>/03 were to support group arrivals and increase the focus<br />
on families and mature travellers with new products and destinations; increase high yield incentive travel<br />
and special interest arrivals and dispersal of the backpackers and honeymooners markets; and enhance<br />
product knowledge and quality of distribution channels.<br />
Highlights and activities<br />
• The <strong>Australia</strong> – You’re Welcome print<br />
campaign, which presents <strong>Australia</strong> as<br />
a carefree destination with a pristine<br />
natural environment, was designed to<br />
stimulate immediate bookings.The<br />
campaign, which was supported by ten<br />
key travel agents and major carriers<br />
Korean Air, Asiana Airlines and Qantas,<br />
generated 1,496 visitors in June.<br />
• The Feel Free in <strong>Australia</strong> campaign was<br />
run in conjunction with trade partners<br />
Naas and Hanwha Tourmall using major<br />
daily papers and television.The<br />
campaigns generated 2,789 visitors.<br />
• The Aussie Specialist Program was<br />
launched in Korea this year, with the<br />
full program to be rolled out in<br />
<strong>2003</strong>/04.The online training program<br />
has been translated into Korean<br />
and will provide agents with a<br />
comprehensive destination and product<br />
training program and reference centre.<br />
Club Oz Korea, an annual two day<br />
training weekend held near Seoul,<br />
attracted over 50 travel agents.<br />
• Over AUD$4.1 million worth of<br />
editorial publicity was generated during<br />
<strong>2002</strong>/03. 18 print journalists and three<br />
TV crews from Korea were hosted to<br />
<strong>Australia</strong> by the ATC’s Visiting<br />
Journalists Program.<br />
The Feel Free in <strong>Australia</strong><br />
campaign generated 2,789<br />
Korean visitors to <strong>Australia</strong>.<br />
24
The Philippines<br />
<strong>Australia</strong> received a total of 25,400 visitors from The Philippines in <strong>2002</strong>/03, a decrease<br />
of 15 per cent over the previous year.<br />
The focus in this market has been on maintaining basic awareness of <strong>Australia</strong> as a destination;<br />
involving industry and key agents in trade events; and enhancing the quality of the distribution network.<br />
Highlights and activities<br />
• An industry forum for 25 travel agents<br />
was conducted in Manila and Cebu.<br />
• Aussie Specialist agents increased by<br />
67 per cent to a total of 28.<br />
• Three travel agents buyers and three<br />
corporate end users were recruited<br />
for the Team <strong>Australia</strong> Business Events<br />
Educational (TABEE) <strong>2003</strong> and eight<br />
delegates from the Philippines attended<br />
the <strong>Australia</strong>n <strong>Tourism</strong> Exchange<br />
in <strong>2003</strong>.<br />
<strong>Australia</strong>n <strong>Tourism</strong> Exchange The <strong>Australia</strong>n<br />
<strong>Tourism</strong> Exchange (ATE) is <strong>Australia</strong>’s largest tourism trade<br />
event and is held annually in <strong>Australia</strong>.The purpose of ATE<br />
is to bring international inbound tour operators to our<br />
country to meet with <strong>Australia</strong>n product suppliers with the<br />
objective of exchanging information and generating sales.<br />
Buyers attending ATE sell close to half of all international<br />
holiday packages to <strong>Australia</strong> – around 2.3 million people<br />
– highlighting the importance of this event.<br />
In <strong>2003</strong>,ATE was jointly hosted by the ATC and <strong>Tourism</strong><br />
Victoria and was held at the Melbourne Exhibition and<br />
Convention Centre from 14-20 June.The event attracted<br />
648 buyers from 44 countries and 1418 sellers.ATE<br />
injected approximately $10 million into the local Victorian<br />
economy and the equivalent of 13,000 visitor nights<br />
over the week.<br />
25
WESTERN<br />
HEMISPHERE<br />
Overview<br />
The Western Hemisphere markets include the UK, Europe, the Americas, Middle East and New Zealand.<br />
Overall, the Western Hemisphere showed resilience during a difficult year for global tourism.Visitor<br />
numbers from the UK increased and in a number of countries <strong>Australia</strong> grew market share in a declining<br />
long haul market.<br />
Many of these markets are now mature travel markets and the ATC’s marketing strategy in these<br />
regions is designed to gain greater insights into the consumer, their motivations and how to influence<br />
their purchase decisions.<br />
Working in partnership with the State and Territory <strong>Tourism</strong> Organisations and the <strong>Australia</strong>n tourism<br />
industry, activity is heavily supported by public relations and the Visiting Journalists Program.<br />
The ATC continues to enjoy mutually beneficial relationships with airline partners and major activities were<br />
undertaken across the region with Qantas, Singapore Airlines, United Airlines, Air New Zealand, Emirates,<br />
and other key carriers.<br />
The Year Ahead<br />
A positive sign for the Western Hemisphere market is the resumption of air services from key markets such<br />
as the USA, Europe and UK, as well as increased competition for the trans Tasman market, which will have<br />
many benefits for <strong>Australia</strong>.<br />
In the year ahead, the ATC will direct its focus towards better understanding the consumer and targeting<br />
those prospects who deliver both yield and dispersal opportunities. A greater emphasis will be placed on<br />
strengthening Brand <strong>Australia</strong> and differentiating <strong>Australia</strong> from other destinations and on meeting<br />
consumer’s changing needs and preferences.<br />
The ATC will no longer have a direct presence in South Africa, Latin America, Sweden and Denmark, but<br />
will provide strategic support as required and continue to service these markets through other channels.<br />
Activity in the Netherlands will be limited to providing trade support, and in Switzerland and the Middle<br />
East to developing specific opportunities presented by these markets.<br />
26
The Americas<br />
Overview<br />
Visitor arrivals from the United States remained stable in <strong>2002</strong>/03 compared to the previous year<br />
with a total of 423,500 visitors.<strong>Australia</strong> holds two per cent market share of the overall outbound<br />
US international traveller market.<br />
<strong>Australia</strong> received a total of 86,500 visitors from Canada during the financial year, a decrease of seven<br />
per cent from the previous year.<br />
Airline capacity to <strong>Australia</strong> decreased 25 per cent post September 11, severely impacting the flow<br />
of leisure travellers.As of June <strong>2003</strong>, capacity had still not returned to former levels.<br />
During the year the ATC conducted a number of campaigns in conjunction with airline and industry<br />
partners to stimulate travel when consumer confidence indicated the time was right.<br />
Highlights and activities<br />
• Five major campaigns were conducted<br />
in conjunction with airline partners in<br />
North America.The flagship campaign<br />
in conjunction with Qantas, More<br />
Wonders Downunder – ran on US<br />
national TV, in newspapers, magazines<br />
and australia.com.The campaign<br />
promoted a variety of two week<br />
vacation options starting from under<br />
US$2,000, with the goal of addressing<br />
strong barriers to travel – time, cost<br />
and complexity of <strong>Australia</strong>n vacations.<br />
Other partnership campaigns were run<br />
in association with United Airways, Air<br />
New Zealand and Air Canada.These<br />
campaigns generated 25,296 direct<br />
inquiries and 18,972 bookings.<br />
• Trade partnership campaigns were<br />
conducted with high profile North<br />
American suppliers, including Globus,<br />
Newmans South Pacific Vacations,<br />
Collette and Virtuoso. Co-operative<br />
marketing programs were also pursued<br />
with the ATC’s extensive network of<br />
Aussie Specialist travel agents.<br />
• In <strong>2002</strong>/03, North American Aussie<br />
Specialists numbered over 1,000 and<br />
contributed roughly eight per cent of<br />
total retail bookings to <strong>Australia</strong> from<br />
the Americas.<br />
• Niche market campaigns for the youth,<br />
gay and lesbian, and honeymoon<br />
segments were conducted through<br />
national magazines and<br />
online marketing.<br />
The More Wonders Downunder<br />
campaign ran on US television, in<br />
newspapers and on australia.com<br />
27
United Kingdom<br />
Overview<br />
The UK demonstrated strong resilience in the wake of various market difficulties and achieved a small<br />
growth in arrivals over the year.<strong>Australia</strong> received a total of 644,200 visitors from the United Kingdom<br />
during the year, an increase of three per cent compared to the previous year.<br />
Key brand messages about <strong>Australia</strong> were reinforced through a successful integrated television, print and<br />
online campaign, which formed the basis for consolidated activity in association with State and Territory<br />
<strong>Tourism</strong> Organisations and industry partners.<br />
The marketing environment in the UK remains highly competitive, particularly in the wake of recent<br />
events as other competitor destinations aim to recapture market share as the market rebounds.<br />
Highlights and activities<br />
• For the first time in four years, the ATC<br />
advertised on television in the UK.<br />
The advertisements, developed in<br />
conjunction with Singapore Airlines,<br />
promoted a special airfare and ran for<br />
four weeks from January to February<br />
<strong>2003</strong>, and from May to July with airline<br />
partner Qantas, directing people to<br />
tour operators and the australia.com<br />
website.The campaign also included<br />
an integrated print component in<br />
conjunction with tour operators and<br />
STOs. Over 30 tactical campaigns were<br />
conducted with various key partners<br />
throughout the year.<br />
• A range of activities were undertaken<br />
to leverage exposure from the Rugby<br />
World Cup <strong>2003</strong>, including a major<br />
supplement in the Sunday Times in<br />
association with key partners and an<br />
advertising campaign in the sports<br />
sections of major newspapers.<br />
• A new interactive tool, Ozplanner,<br />
was launched to help first-time<br />
travellers to <strong>Australia</strong> to plan their<br />
holiday. Over 67,000 consumers<br />
used the service between<br />
January-June <strong>2003</strong>.<br />
• The ATC, in conjunction with STOs<br />
and Qantas, participated in the Student<br />
Travel <strong>Australia</strong> ‘Get Down Under’<br />
campaign that targeted the<br />
youth/student traveller.The activity<br />
included subway advertising, washroom<br />
advertising, print advertisements in a<br />
mix of youth oriented media,<br />
competitions, online activity and<br />
in-store displays.<br />
• The ATC and <strong>Tourism</strong> New South<br />
Wales worked with Manaround, a gay<br />
and lesbian specialist tour operator, to<br />
develop a campaign leveraging the Gay<br />
Games held in <strong>Australia</strong> in November<br />
<strong>2002</strong>.The campaign aimed to increase<br />
<strong>Australia</strong>’s profile as a gay and lesbian<br />
destination and encourage pre and<br />
post touring following the Games.<br />
• The ATC received support from the<br />
BBC Holiday program, with two new<br />
programs visiting four different regions in<br />
<strong>Australia</strong>, along with a feature program<br />
on wildlife. A key print highlight was a<br />
double page spread in the Sunday Mail<br />
focusing on the film Ned Kelly.<br />
• Subscriptions to the consumer<br />
e-newsletter Oz Escapes increased by<br />
over 614 per cent to 49,265 from<br />
8,019 the previous year.<br />
Over 67,000 consumers used the<br />
ozplanner service between<br />
January-June <strong>2003</strong><br />
28
Europe<br />
France<br />
Global events reduced consumer confidence in this market, with French travellers choosing to<br />
holiday closer to home or seek safe destinations with stronger cultural affiliations, such as<br />
French speaking territories.<br />
<strong>Australia</strong> received a total of 46,300 visitors from France during the financial year, a decrease of<br />
11 per cent on the previous year.<br />
The ATC resumed its presence in the market again in March <strong>2003</strong> after an absence of almost<br />
one year.<strong>Australia</strong>’s presence within the distribution network improved, with some larger tour<br />
operators dedicating additional resources to selling <strong>Australia</strong>.<br />
Highlights and activities<br />
• A print campaign in conjunction with<br />
Qantas ran in major newspapers for<br />
two weeks in early January <strong>2003</strong>,<br />
presenting <strong>Australia</strong>n cultural and<br />
wildlife images and a special airfare.<br />
The promotion achieved 1,440<br />
bookings with a 17 per cent increase<br />
in call volumes.<br />
• In May <strong>2003</strong>, Qantas and ATC ran<br />
a 30 second radio promotion titled<br />
‘All the bush are talking about it’,<br />
featuring <strong>Australia</strong>n wildlife sounds and<br />
a special airfare. Call volumes increased<br />
by 16 per cent in response to the<br />
promotion.<br />
• The ATC and Singapore Airlines ran<br />
an outdoor and underground poster<br />
campaign in January and February <strong>2003</strong><br />
driving consumers to the travel agent<br />
Nouvelle Frontieres, the largest<br />
wholesale and retail operator in France.<br />
The campaign was supported by<br />
direct-mail, flyers, window displays, point<br />
of sale, and print advertisements.<br />
• A total of AUD$34 million in editorial<br />
publicity on <strong>Australia</strong> was generated<br />
in France. Key activities included a<br />
supplement in Madame Figaro focusing<br />
on Sydney, and a visit to Victoria and<br />
New South Wales by the television<br />
travel program, Chaine Voyage.<br />
• French language advertisements for<br />
business tourism were run in key trade<br />
media to reach French-based event<br />
organisers.<br />
• Membership to the online travel club<br />
in France increased from 960 to<br />
1,600 members.<br />
29
Italy<br />
The ATC resumed its presence in Italy after an absence of almost one year and embarked on a<br />
new marketing and promotion strategy to rebuild interest from this market.<br />
A slow-down in bookings to <strong>Australia</strong> was experienced from March through June <strong>2003</strong> in response<br />
to world events, however appeared to be recovering again towards the end of the financial year.<br />
<strong>Australia</strong> received a total of 42,500 visitors from Italy during the year, a decrease of 11 per cent<br />
on the previous year.<br />
There was encouraging growth of new specialised wholesale and retail operators, broadening<br />
the distribution network for <strong>Australia</strong>.<br />
Highlights and activities<br />
• A recovery campaign was implemented<br />
to stimulate the Italian market including<br />
half page newspaper ads in the major<br />
papers and an online campaign which<br />
received record user sessions on<br />
australia.com. Over 20 campaigns were<br />
undertaken in the market throughout<br />
the year with key industry partners.<br />
• In partnership with Qantas, a<br />
motivational 16-page colour flyer was<br />
printed and inserted in 1.5 million<br />
copies of Italy’s two leading daily<br />
newspapers, Il Corriere della Sera and<br />
La Republica in July <strong>2002</strong>.This<br />
generated an estimated 1,200 bookings.<br />
• <strong>Australia</strong>n model Megan Gale was<br />
recruited to represent the ATC in Italy<br />
as <strong>Australia</strong>’s <strong>Tourism</strong> Ambassador,<br />
providing a unique opportunity to<br />
boost the profile of <strong>Australia</strong> in<br />
the market.<br />
• A successful partnership with<br />
Austrade helped to consolidate a<br />
major integrated campaign between<br />
the ATC, Western <strong>Australia</strong>n Tourist<br />
Commission, Emirates Airlines and<br />
seven wholesalers, aimed at attracting<br />
Italians to <strong>Australia</strong> during the<br />
European winter.<br />
• A total of AUD$48.7 million in editorial<br />
publicity on <strong>Australia</strong> was generated in<br />
Italy.This included coverage in monthly<br />
travel magazine, Gente Viaggi, and Io<br />
Donna, Italy’s leading national<br />
newspaper as well as a radio<br />
promotion on Radio Monte Carlo.<br />
• Training for 1,600 individual travel<br />
agents was conducted through the<br />
Aussie Specialist Program, growing the<br />
ATC database of retail agents to 2800.<br />
• Membership to the online travel<br />
club in Italy increased from 1500 to<br />
4000 members.<br />
<strong>Australia</strong>n model, Megan Gale, was recruited as<br />
<strong>Australia</strong>’s <strong>Tourism</strong> Ambassador to Italy<br />
30
Germany<br />
The outbound market in Germany faltered in the wake of the impact of global events and<br />
was exacerbated by a poor economic environment, which lowered consumer confidence and<br />
constrained the outbound travel market.<br />
<strong>Australia</strong> received a total of 134,000 visitors from Germany during the financial year, a decrease<br />
of two per cent on the previous year.<br />
The competitive environment in Germany is challenging, with other major long haul destinations<br />
actively pursuing growth from this market.A new regional manager was appointed in Frankfurt in<br />
February, reaffirming the ATC’s commitment to the market.<br />
Highlights and activities<br />
• ATC and Qantas ran a print and<br />
magazine campaign during January and<br />
February <strong>2003</strong> themed <strong>Australia</strong>.You<br />
can’t describe it – only experience it,<br />
which generated 2,800 bookings.<br />
• Recovery funding was allocated to a<br />
co-operative campaign with Qantas,<br />
which generated over 3,500 bookings<br />
and has been the most successful of<br />
any campaign undertaken by Qantas<br />
in Germany in the past five years.<br />
• The ATC and Singapore Airlines<br />
implemented a magazine print<br />
campaign designed to stimulate<br />
repeat visitation based on travellers’<br />
experiences in <strong>Australia</strong>.<br />
• For the first time the ATC used pay<br />
TV to sell <strong>Australia</strong> through the<br />
Big Xtra campaign.<br />
• A total of AUD$91 million in editorial<br />
publicity was achieved.This included<br />
TV coverage on DSF Abentueuer und<br />
reisen tv,VOX Spiegel TV,Voxtours and<br />
MTV Travel in Trend.<br />
• The ATC joined with <strong>Tourism</strong> New<br />
Zealand for the first time in <strong>2003</strong> to<br />
coordinate a joint <strong>Australia</strong>/New<br />
Zealand stand at the major trade<br />
event Internationale <strong>Tourism</strong>us Borse<br />
(ITB).This collaboration is likely to<br />
continue next year, due to its success.<br />
• An online promotion on lifestyle<br />
and magazine websites resulted in a<br />
503 per cent increase in incremental<br />
traffic to australia.com and achieved<br />
the best campaign conversion results<br />
in five years.<br />
• The ATC participated in a DerTour<br />
Reise Academie training event, where<br />
over 750 agents were educated about<br />
selling <strong>Australia</strong>.<br />
Using recovery funding, the ATC and<br />
Qantas ran a cooperative campaign<br />
on australia.com in Germany<br />
31
The Netherlands and Switzerland<br />
Both Switzerland and the Netherlands saw declines as a result of world events, however operators<br />
were reporting signs of a recovery at the end of the year.<br />
<strong>Australia</strong> received a total of 52,100 visitors from the Netherlands, a decrease of five per cent<br />
on the previous year. Arrivals from Switzerland totalled 41,200, also a decrease of five per cent.<br />
The ATC has undertaken very focused activity in these markets over the past 12 months, using cost<br />
effective methods to reach the segments with the greatest potential for <strong>Australia</strong>, such as backpackers<br />
and the youth market.<br />
Highlights and activities<br />
• Campaigns were undertaken in<br />
Switzerland with key partners, including<br />
Student Travel <strong>Australia</strong>, targeting the<br />
core youth/backpacker segment.<br />
• In Switzerland, articles featured in key<br />
newspapers SonntagsBlick, Neue<br />
Zuercher Zeitung and SonntagsZeitung,<br />
focusing on a cross section of<br />
<strong>Australia</strong>n product. A promotion<br />
on Radio Argovia featured <strong>Australia</strong><br />
throughout May.<br />
•In the Netherlands the ATC<br />
participated in seven marketing<br />
campaigns throughout the year with<br />
key partners. A City Cabs program on<br />
the Discovery Channel and Fly Away<br />
Travel documentary provided excellent<br />
coverage on <strong>Australia</strong> using different<br />
themes.The ATC also attended the<br />
Big Planet training workshops organised<br />
by Singapore Airlines, comprising four<br />
one-day workshops, with approximately<br />
200 agents attending each day.<br />
• A Dutch version of the guide<br />
‘Essential <strong>Australia</strong>’ was produced for<br />
the first time to help boost consumer<br />
knowledge of <strong>Australia</strong>.<br />
• A total of $7.6 million (Switzerland)<br />
and $26.5 million (Netherlands) worth<br />
of publicity was generated in these<br />
markets, with 83 articles featured in<br />
the press as a result of the Visiting<br />
Journalists Program.<br />
Student Travel <strong>Australia</strong><br />
campaign was designed<br />
to stimulate bookings and<br />
establish STA as a specialist<br />
for <strong>Australia</strong>.<br />
32
Middle East<br />
Overview<br />
A key strategy in the Middle East during the year was to develop a cooperative framework<br />
to attract partner involvement and identify impediments to market growth.<br />
<strong>Australia</strong> received a total of 50,200 visitors from the Middle East in <strong>2002</strong>/03, a decline of<br />
11 per cent compared with the previous year. Results were strong, given the political situation<br />
in the region this year.<br />
Highlights and activities<br />
• Activity largely focused on media<br />
relations with $AUD1,236,500 worth<br />
of editorial coverage generated through<br />
the Visiting Journalists Program and<br />
public relations activity.<br />
• The ATC sponsored a six page<br />
supplement in the region’s most<br />
popular Arabic language family<br />
magazine, Sayidaty.<br />
• The Arab Radio Network broadcast<br />
live from Sydney and Melbourne during<br />
a five day visit in May <strong>2003</strong>, which<br />
resulted in one hour of publicity per<br />
day on four different stations across<br />
the United Arab Emirates.<br />
33
New Zealand<br />
Overview<br />
New Zealand remains <strong>Australia</strong>’s largest single source market.<strong>Australia</strong> received a total of 793,100<br />
visitors from New Zealand during the financial year, an increase of one per cent over the previous year.<br />
<strong>Australia</strong> maintains dominant market share of 62 per cent of the total New Zealand outbound market<br />
and the country has proved to be one of the most resilient with departures to <strong>Australia</strong> increasing by<br />
nine per cent in the June quarter <strong>2003</strong>.<br />
In <strong>2002</strong>/03, the ATC continued to focus on improving yield from visitors, increasing dispersal and<br />
continuing to encourage repeat visitation.<br />
Highlights and activities<br />
• The ATC continued to run the highly<br />
successful ‘Discover <strong>Australia</strong>’brand<br />
campaign in <strong>2002</strong>/03 with television,<br />
press, magazine, cinema and online<br />
advertising.<br />
• In May <strong>2003</strong>, the ATC in conjunction<br />
with Qantas, STOs and wholesale<br />
partners, launched the ‘Discover <strong>Australia</strong><br />
Now’ campaign, further extending the<br />
successful brand campaign.This<br />
campaign generated 20,000 bookings in<br />
three weeks, with wholesalers reporting<br />
record sales for <strong>Australia</strong> in June.<br />
• A total of 17 media from New Zealand<br />
travelled to <strong>Australia</strong> with the ATC<br />
Visiting Journalists Program in <strong>2002</strong>/03.<br />
Total VJP publicity tracked during this<br />
period reached AUD$3.37 million.<br />
• The ATC worked with the TV3 ‘Live<br />
This’ television program to produce<br />
13 episodes featuring new <strong>Australia</strong>n<br />
holiday experiences under the ‘Discover<br />
<strong>Australia</strong>’ umbrella.<br />
• The ATC worked with TVNZ to<br />
produce a TV program to appear on<br />
primetime television in the lead-up<br />
to the Rugby World Cup.<br />
• Over 220 <strong>Australia</strong>n suppliers and<br />
315 travel agents attended OzTalk<br />
New Zealand.<br />
The Discover <strong>Australia</strong> Now recovery campaign<br />
in New Zealand generated 20,000 bookings<br />
within a three week period<br />
34
Sydney Office <strong>Report</strong>s<br />
37
Hemispheres<br />
The Hemispheres division within<br />
the ATC operates from the<br />
Sydney office and is responsible<br />
for providing an interface<br />
between the <strong>Australia</strong>n tourism<br />
industry and the ATC’s<br />
international offices, and assisting<br />
the industry with their<br />
international marketing efforts.<br />
Partnership Marketing<br />
The Partnership Marketing<br />
unit services approximately<br />
200 industry partners per<br />
month, providing them with<br />
a greater understanding of ATC<br />
activities and creating revenue<br />
opportunities through<br />
cooperative marketing.<br />
Highlights and activities<br />
• During the <strong>2002</strong>/03 financial year,<br />
Partnership Marketing generated<br />
sales worth AUD$2.2 million.<br />
• Industry participation in ATC<br />
cooperative activities achieved an<br />
average of five per cent above<br />
target levels.<br />
• The department worked to<br />
develop a greater understanding of<br />
the role of australia.com in the<br />
ATC’s international marketing<br />
efforts by demonstrating the<br />
benefits offered by the online<br />
medium and reporting and tracking<br />
all partner advertising.<br />
Trade Development<br />
The Trade Development unit<br />
provides an essential<br />
communication link between the<br />
<strong>Australia</strong>n tourism industry,<br />
<strong>Australia</strong>n-based inbound tour<br />
operators and the ATC’s overseas<br />
operations.The unit also provides<br />
input and assistance to a number<br />
of industry associations<br />
and groups.<br />
Highlights and activities<br />
• Better processes for communicating<br />
and consulting with inbound tour<br />
operators and industry partners<br />
were established to improve the<br />
ATC’s services to this sector and<br />
determine where the ATC could<br />
most add value to their activities.<br />
• Information on the ATC’s<br />
industry website, ATC Online,<br />
was restructured for better<br />
communication of market<br />
information and marketing activity,<br />
as well as regular updates through<br />
the ATC’s weekly online<br />
newsletter, essentials.<br />
• The unit participated in various<br />
industry groups, including the<br />
implementation of frameworks<br />
to progress market and industry<br />
development in the key markets<br />
of Japan and China.<br />
The Marketing Opportunities Guide<br />
<strong>2003</strong>/04 provided essential information<br />
on the ATC’s marketing initiatives<br />
38
Marketing Development<br />
The Marketing Development<br />
business group is responsible for<br />
enhancing the ATC’s global brand<br />
strategy and driving product and<br />
business segment development<br />
programs for <strong>Australia</strong>n tourism.<br />
It oversees the ATC’s presence<br />
at trade shows in <strong>Australia</strong> and<br />
around the world and is also<br />
responsible for the ATC’s<br />
International Media strategy,<br />
which includes the Visiting<br />
Journalists Program.<br />
It comprises six operational areas:<br />
Advertising & Design, Business<br />
<strong>Tourism</strong>, International Media,<br />
Market Insights, Online Programs<br />
Management and Trade Events.<br />
Highlights and activities<br />
• In response to increasing<br />
competition from competitive<br />
destinations, the ATC commenced<br />
a program to refresh and redefine<br />
Brand <strong>Australia</strong>.The results of this<br />
program will be delivered at the<br />
end of <strong>2003</strong>.<br />
• Major performance improvements,<br />
including a redesign, were made to<br />
australia.com.<br />
• The <strong>Tourism</strong> Ambassador program<br />
was expanded with the<br />
appointment of Megan Gale and<br />
Layne Beachley.<br />
• ATE returned to Melbourne with<br />
a modified format, and despite the<br />
challenge presented by SARS and<br />
the Gulf War, was deemed to be<br />
a major success.<br />
• In preparation for the Rugby World<br />
Cup, which will be held in October<br />
and November <strong>2003</strong>, the ATC put<br />
in place a program to both boost<br />
the number of international visitors<br />
and maximise the media coverage<br />
of <strong>Australia</strong> during the tournament.<br />
The year ahead<br />
At the end of June <strong>2003</strong> the<br />
Marketing Development<br />
department was restructured<br />
with a renewed emphasis on the<br />
development of Brand <strong>Australia</strong>.<br />
A new position, Consumer<br />
Marketing Director, will work<br />
closely with the marketing<br />
directors in-region to ensure<br />
consistency in the execution<br />
of the new brand positioning.<br />
The Segment Development unit<br />
was also disbanded with activities<br />
and responsibilities split between<br />
the Marketing Development and<br />
Hemispheres groups. Business<br />
<strong>Tourism</strong>, will become a standalone<br />
unit within the Marketing<br />
Development group.This will<br />
allow the ATC to continue to<br />
focus on leveraging third party<br />
relationships.<br />
The <strong>Tourism</strong> Ambassador<br />
program will be expanded and<br />
with a number of additions to<br />
its high-profile ranks.<br />
The level of co-operation and<br />
joint promotion with non-tourism<br />
related organisations such as<br />
Austrade and Invest <strong>Australia</strong><br />
and industries such as wine and<br />
clothing, will be increased to<br />
further improve the position of<br />
Brand <strong>Australia</strong> and maximise the<br />
funding available to the ATC.<br />
39
Advertising<br />
and Design<br />
The Advertising & Design unit<br />
manages the development and<br />
application of Brand <strong>Australia</strong><br />
graphics in all ATC Online and<br />
printed communications, signage,<br />
merchandise, trade events and<br />
promotional items. Additionally<br />
the unit manages and supplies<br />
a comprehensive library of still<br />
images, film footage and videos<br />
of <strong>Australia</strong>.<br />
Highlights and activities<br />
Layne Beachley is welcomed as a<br />
<strong>Tourism</strong> Ambassador by the Minister<br />
for Small Business and <strong>Tourism</strong>, the<br />
Hon Joe Hockey, MP, at ATE <strong>2003</strong><br />
• The creative services area designed<br />
and created all artwork for the<br />
<strong>Australia</strong>n <strong>Tourism</strong> Exchange (ATE)<br />
<strong>2003</strong>, working with <strong>Tourism</strong> Victoria<br />
to create a consistent design<br />
theme for the event.<br />
• The ATC’s video and image library<br />
capabilities were upgraded during<br />
the year. A more comprehensive<br />
facility that allows for in-house<br />
editing and an image scanner that<br />
allows images to be scanned at a<br />
high resolution in-house has also<br />
resulted in cost savings.<br />
• Over the past 12 months the<br />
image library has acquired<br />
approximately 1,000 new images.<br />
<strong>Tourism</strong> Ambassador<br />
Program<br />
The ATC has a long history of<br />
working with <strong>Australia</strong>n<br />
celebrities in marketing activities<br />
overseas to help build the<br />
interest in people holidaying in<br />
<strong>Australia</strong>, beginning with Paul<br />
Hogan in the 1980s with the<br />
famous ‘shrimp on the barbie’<br />
campaign.The ATC last year<br />
announced a new program to<br />
work with well-known Aussies in<br />
promoting <strong>Australia</strong> to the world.<br />
Ian Thorpe, world champion<br />
swimming star was the first to<br />
be appointed, and his efforts<br />
are focused on the important<br />
Japanese market. In Italy, the ATC<br />
this year appointed celebrity<br />
model and actress Megan Gale<br />
to promote <strong>Australia</strong>.<br />
Layne Beachley, the World Surfing<br />
Champion, was the third<br />
Ambassador to be appointed<br />
to help build <strong>Australia</strong>’s image<br />
internationally amongst the youth<br />
markets and to ensure the<br />
country continues to enjoy a high<br />
profile as a holiday destination.<br />
Over the coming year, the<br />
Ambassador program will be<br />
expanded to include a wider<br />
range of <strong>Australia</strong>ns who<br />
represent the best of Brand<br />
<strong>Australia</strong> and who can help us to<br />
further promote the image of the<br />
country as a tourism destination.<br />
40
Market Insights<br />
The Market Insights unit manages<br />
a comprehensive international<br />
and domestic market research<br />
and analysis program, providing<br />
ongoing strategic information to<br />
the ATC and the tourism industry.<br />
The unit acts as an internal<br />
consultancy across the ATC<br />
management team, generating<br />
insights about customers and<br />
markets for use in the strategic<br />
decision making process.<br />
Highlights and activities<br />
• Three waves of a North<br />
American Passenger Survey<br />
Research were conducted at<br />
Los Angeles International Airport<br />
with travellers en route to<br />
<strong>Australia</strong>, providing a monitor<br />
of travel planning and purchase<br />
behaviour from key US traveller<br />
segments as well as an evaluation<br />
of ATC marketing activities.<br />
• Conversion research was<br />
conducted among US consumers<br />
who have responded to ATC<br />
advertising to examine conversion<br />
rates and media effectiveness.<br />
Results from the US Conversion<br />
Study have enabled the ATC to<br />
establish benchmarks for consumer<br />
conversion to ensure campaign<br />
effectiveness is maximised via<br />
proven performance measures.<br />
• Global Brand Health and<br />
Communications Tracking Research<br />
was conducted in ten markets,<br />
evaluating <strong>Australia</strong>’s competitive<br />
positioning and the effectiveness of<br />
ATC marketing communications.<br />
<strong>Australia</strong> was nominated the<br />
number one preferred destination<br />
in six of the ten markets surveyed.<br />
• Advertising Concept Research was<br />
conducted in the UK, based on<br />
strategic insights developed from<br />
previous barriers to travel research.<br />
The research was used as input to<br />
the development of the UK TV<br />
brand campaign.<br />
• A major study was conducted<br />
among Chinese ADS group visitors<br />
to <strong>Australia</strong> to assess their visitor<br />
experience and to determine the<br />
key drivers for repeat visitation and<br />
positive word of mouth.The results<br />
provided the ATC with information<br />
to build business from this market<br />
and increase the number of ADS<br />
visitors coming to <strong>Australia</strong>.<br />
• Consumer research was conducted<br />
in Korea to identify and prioritise<br />
specific target segments that<br />
provide the most potential for<br />
increased holiday travel to <strong>Australia</strong><br />
and to identify the key drivers and<br />
most motivating experiences for<br />
each segment.<br />
• The Japan Product Development<br />
Research findings were released<br />
with several workshops held with<br />
key stakeholders in Japan and<br />
<strong>Australia</strong>. A strategy for actioning<br />
the results has been developed in<br />
region and in <strong>Australia</strong>.<br />
41
International Media<br />
International Media is responsible<br />
for the ATC’s Visiting Journalists<br />
Program (VJP), a program<br />
designed to attract targeted<br />
media from around the world to<br />
report on <strong>Australia</strong>’s many holiday<br />
experiences and attractions.<br />
The unit provides a variety<br />
of resources to the ATC’s<br />
worldwide public relations<br />
network and manages<br />
media.australia.com, the ATC’s<br />
dedicated media website.<br />
The unit also works with a<br />
number of <strong>Australia</strong>’s top travel<br />
and tourism writers to produce<br />
feature stories and story ideas<br />
about <strong>Australia</strong> to generate media<br />
interest internationally.<br />
Highlights and activities<br />
• The ATC hosted 1,027 print<br />
and broadcast journalists to<br />
<strong>Australia</strong> throughout the year<br />
through the Visiting Journalists<br />
Program, generating editorial<br />
coverage with a value in excess<br />
of AUD$1.4 billion.<br />
• A number of large international<br />
television crews were assisted by<br />
the ATC to gain tourism footage<br />
of the destination.This included<br />
supporting India’s most successful<br />
television production house, Balaji<br />
Telefilms, with the shooting of a<br />
major story line in Sydney for its<br />
two most successful TV programs.<br />
• To maximise the media coverage<br />
of <strong>Australia</strong> in the leadup and<br />
during the Rugby World Cup<br />
tournament, the International<br />
Media unit hosted more than<br />
20 international broadcasters at a<br />
forum and produced a broadcast<br />
showreel on <strong>Australia</strong>. Prior to<br />
the tournament the ATC hosted<br />
several media outlets, including<br />
TVNZ.<br />
• The international media program<br />
at the <strong>Australia</strong>n <strong>Tourism</strong> Exchange<br />
(ATE) attracted 42 international<br />
media which helped to boost the<br />
coverage of <strong>Australia</strong> in trade<br />
publications in 19 countries.<br />
• A new Visiting Journalists Program<br />
targeting business publications was<br />
implemented.This program will<br />
help to attract international<br />
business by reporting on the<br />
destination as an ideal place to<br />
hold business events, such as<br />
incentives and conferences.<br />
• Activities to boost the promotion<br />
of <strong>Australia</strong> as a host of the Gay<br />
Games <strong>2002</strong> in the international<br />
media were undertaken, including<br />
representation at the event’s<br />
media centre.<br />
The ATC hosted India’s<br />
number one TV drama series<br />
Kyunki Saas Bhi Kabhi Bahu Thi<br />
generating the equivalent of<br />
$AUD40 million in publicity<br />
42
Segment<br />
Development<br />
The Segment Development unit<br />
focuses on the strategic<br />
development of specifically<br />
identified industry segments<br />
within <strong>Australia</strong>.These include<br />
business tourism (corporate<br />
meetings, incentives, conventions<br />
and exhibitions), Aboriginal<br />
tourism, backpacking, educational<br />
tourism, ecotourism, food and<br />
wine tourism and special events<br />
such as the Rugby World Cup.<br />
Highlights and activities<br />
Ecotourism<br />
• Ecotourism <strong>Australia</strong>’s NEAP<br />
accredited product was profiled on<br />
the floor of the <strong>Australia</strong>n <strong>Tourism</strong><br />
Exchange (ATE) <strong>2003</strong>.<br />
• The ATC launched an ecotourism<br />
initiative, ‘<strong>Australia</strong>n Eco’, at the<br />
Japan <strong>Australia</strong> Mission (JAM) <strong>2003</strong><br />
in Fukuoka, Nagoya, Osaka and<br />
Tokyo, to boost the profile of<br />
<strong>Australia</strong>n ecotourism product.<br />
A new Japanese language website,<br />
developed in conjunction with<br />
Ecotourism <strong>Australia</strong> and featuring<br />
accredited ecotourism products,<br />
was launched to the 380 Japanese<br />
buyers attending the show.<br />
Aboriginal <strong>Tourism</strong><br />
• The ATC participated in the<br />
Indigenous <strong>Tourism</strong> Leadership<br />
Group (ITLG) and provided input<br />
to the committee discussions on<br />
the structure of the group.The<br />
ATC was also invited to conduct<br />
a review of the Aboriginal and<br />
Torres Strait Islander tourism<br />
industry strategy.<br />
• The ATC compiled a submission to<br />
the CEOs forum recommending<br />
that each State and Territory<br />
<strong>Tourism</strong> Organisation conduct a<br />
product audit to determine the<br />
extent of Aboriginal tourism<br />
product in <strong>Australia</strong>, and the level<br />
of readiness of each product for<br />
the international market.<br />
• With the aim of helping to build<br />
knowledge and understanding of<br />
Aboriginal tourism, the ATC<br />
produced a summary of available<br />
consumer research, including insights<br />
about consumer perceptions,<br />
interest and participation in<br />
Aboriginal products and activities,<br />
gathered from a number of sources.<br />
• Aboriginal tourism was given a high<br />
profile at the <strong>Australia</strong>n <strong>Tourism</strong><br />
Exchange (ATE) <strong>2003</strong> and new<br />
Aboriginal tourism related content<br />
was developed on australia.com.<br />
• The ATC also developed a<br />
motivational brochure on<br />
Aboriginal tourism in <strong>Australia</strong> in<br />
conjunction with the STOs and the<br />
Commonwealth Department of<br />
Industry,<strong>Tourism</strong> and Resources.<br />
Aboriginal <strong>Tourism</strong><br />
Aboriginal tourism is a ‘niche<br />
market’ or ‘special interest<br />
sector’ and includes a wide range<br />
of experiences built around<br />
tourist visitations.<br />
The availability of quality<br />
information and marketing<br />
relating to the available choices<br />
of Aboriginal tourism products<br />
has a major bearing on the<br />
quality of the total experience<br />
and satisfaction of the visitor.<br />
The growing awareness and<br />
demand for Aboriginal<br />
experiences by international<br />
visitors has provided the<br />
opportunity for Aboriginal people<br />
to develop an economically selfsufficient<br />
tourism business.<br />
As this segment grows, the ATC,<br />
in partnership with the State and<br />
Territory Tourist Organisations,<br />
is providing assistance to ensure<br />
that Aboriginal tourism receives<br />
the support it requires, and<br />
achieves sustainable growth<br />
at an international level.<br />
43
Food and Wine<br />
• Cooperative marketing partners<br />
and opportunities were sought to<br />
profile <strong>Australia</strong>’s attributes in food<br />
and wine tourism. Examples include<br />
a promotion with the <strong>Australia</strong>n<br />
Wine Export Council to produce<br />
a wine map of <strong>Australia</strong> distributed<br />
to Japanese consumers through<br />
retail liquor stores.<br />
• The ATC was represented on the<br />
Marketing and Promotion<br />
subcommittee of the Restaurant &<br />
Catering Industry Action Agenda<br />
and the <strong>Australia</strong>n Wine <strong>Tourism</strong><br />
Alliance for the implementation<br />
of the National Wine <strong>Tourism</strong><br />
Strategy.The ATC also contributed<br />
to the development of the ACIL<br />
Consulting Paper on Wine <strong>Tourism</strong><br />
and Wine Exports.<br />
Backpackers<br />
• ATC coordinated 20 <strong>Australia</strong>n<br />
suppliers, specialising in the<br />
youth/student/backpacker segment,<br />
to participate under the <strong>Australia</strong>n<br />
banner at the World Youth and<br />
Student Travel Conference<br />
(WYSTC) <strong>2002</strong> in Rhodes, Greece.<br />
The event attracted buyers and<br />
sellers from around the world,<br />
with more than 900 international<br />
delegates, representing 450<br />
companies in over 70 countries,<br />
attending the trade show.<br />
• The ATC continues to consult the<br />
industry through the Backpacking<br />
<strong>Tourism</strong> Advisory Group (BTAG)<br />
and was this year accepted as a<br />
member of the Federation of<br />
International Youth Travel<br />
Organisations.<br />
• The ATC sponsored an <strong>Australia</strong>n<br />
presence at Independent Traveller’s<br />
World (ITW) <strong>2003</strong>, one of<br />
Europe’s leading independent travel<br />
shows held in the United Kingdom.<br />
Education<br />
• The ATC, in conjunction with<br />
partners AEI, Austrade, Qantas<br />
and English <strong>Australia</strong>, developed<br />
a destination brochure ‘Study and<br />
Explore’, aimed at students coming<br />
to <strong>Australia</strong> to study English.<br />
Backpackers<br />
The international backpacker market has proven to be a beacon for steady<br />
tourism growth. Backpacker tourism has been identified as a key growth area<br />
within inbound tourism and the ATC has increased its focus on this market.<br />
Investing in this market segment now will provide substantial returns in the<br />
future as the backpackers of today are likely to become the returning highyield<br />
target markets of tomorrow.<br />
The ATC promotes <strong>Australia</strong> to the international backpacker market through<br />
a diverse range of innovative consumer and trade activities, including joint<br />
industry promotions, television, print and electronic advertising, public<br />
relations and information programs and the coordination of <strong>Australia</strong>n<br />
industry participation at international trade events.<br />
44
Rugby World Cup<br />
In conjunction with industry partners,<br />
the ATC ran an advertising campaign<br />
promoting the Rugby World Cup <strong>2003</strong><br />
in the UK and Europe<br />
Rugby World Cup<br />
Considered one of the biggest sports events to take place globally, after the Olympics and the FIFA World<br />
Cup, the Rugby World Cup <strong>2003</strong><br />
RWC<strong>2003</strong> will be held in <strong>Australia</strong> in October and November <strong>2003</strong> providing tourism opportunities related<br />
to the event. RWC<strong>2003</strong> will comprise 20 countries playing 48 matches across ten <strong>Australia</strong>n cities and<br />
regional locations.An estimated 40,000 visitors are expected to travel to <strong>Australia</strong> for the event.<br />
The ATC has worked closely with the hosts of RWC<strong>2003</strong>, the International Rugby Board and the <strong>Australia</strong>n<br />
Rugby Union, and other industry partners to ensure the opportunities provided through hosting the<br />
tournament are fully realised. Major activities conducted in international markets to promote this event<br />
included advertising campaigns in<br />
UK and Europe, outdoor advertising in the UK and France,TV ads on Foxsports in the US and supplements<br />
in the Sunday Times and Irish Independent.The ATC also worked with the official broadcasters and<br />
international media to maximise the publicity for <strong>Australia</strong> in the lead up to the tournament.<br />
In addition, the ATC prepared a strategy to leverage promotion of RWC<strong>2003</strong> as part of whole of<br />
Government approach to the event.This involved the development of the Rugby Business Club <strong>Australia</strong><br />
strategy and providing destination information on <strong>Australia</strong> in official RWC<strong>2003</strong> guide.<br />
In furthering the tourism opportunities related to sporting events, the ATC has also become a member of<br />
the Commonwealth Games Taskforce Communication Working Group convened by the Department of<br />
Communications, Information Technology and the Arts (DCITA) to look at promoting the 2006<br />
Commonwealth Games in Melbourne.<br />
45
Trade Events<br />
The Trade Events department<br />
manages the ATC’s participation<br />
in overseas travel trade events.<br />
The team manages up to 25<br />
events each year including the<br />
coordination of the <strong>Australia</strong>n<br />
<strong>Tourism</strong> Exchange (ATE).<br />
Highlights and activities<br />
• The Trade Events team<br />
coordinated 24 events around the<br />
world in <strong>2002</strong>/03 including the<br />
<strong>Australia</strong>n <strong>Tourism</strong> Exchange (ATE)<br />
<strong>2003</strong> held in Melbourne in June<br />
<strong>2003</strong>. ATE attracted 648 buyers<br />
from 44 countries and 1418 sellers.<br />
Almost half of the buyers took up<br />
the option of pre and post touring<br />
activity around <strong>Australia</strong>, furthering<br />
their knowledge of the destination.<br />
• A new online system that will allow<br />
the Trade Events department and<br />
associated regional offices to<br />
manage all trade events online and<br />
deliver a centralised calendar of<br />
events for industry was reviewed<br />
for implementation in <strong>2003</strong>/04.<br />
The <strong>Australia</strong>n <strong>Tourism</strong><br />
Exchange (ATE<strong>2003</strong>) was<br />
held in Melbourne in June<br />
46
During the year the Trade Events department coordinated the ATC’s presence at the following events<br />
around the world:<br />
ATC Trade Events <strong>2002</strong>/03 Financial Year<br />
Event Name Dates Country<br />
Meeting Professionals International (MPI) 21 – 23 July <strong>2002</strong> Canada<br />
<strong>Australia</strong>n Travel Safari (ATS) 29 July – 1 August <strong>2002</strong> South Africa<br />
<strong>2002</strong> Talkback Roadshow 6 August – 4 October <strong>Australia</strong><br />
Scandi Walkabout 2 – 4 September, <strong>2002</strong> Norway, Denmark and Sweden<br />
Dreamtime <strong>2002</strong> 14 – 19 September <strong>2002</strong> <strong>Australia</strong><br />
Top Resa <strong>2002</strong> 19 – 21 September, <strong>2002</strong> France<br />
30th Incentive Travel & Meeting Executive (IT&ME) <strong>2002</strong> 24 – 26 September <strong>2002</strong> USA<br />
TTG Incontri <strong>2002</strong> 11 – 13 October, <strong>2002</strong> Italy<br />
The 10th Incentive Travel & Conventions, Meetings Asia 23 – 25 October <strong>2002</strong> Thailand<br />
6th <strong>Australia</strong>n Travel Mission to China <strong>2002</strong> 4 – 7 November <strong>2002</strong> China<br />
World Travel Market (WTM) 11 – 14 November <strong>2002</strong> United Kingdom<br />
China International Travel Mart (CITM) <strong>2002</strong> 14 – 17 November <strong>2002</strong> China<br />
Korean Workshops <strong>2002</strong> 20 – 26 November <strong>2002</strong> <strong>Australia</strong><br />
<strong>2002</strong> ATEC National Workshops 5th December <strong>2002</strong> <strong>Australia</strong><br />
India Travel Mission <strong>2003</strong> 5 – 7 February <strong>2003</strong> India<br />
Borsa Internazionale del Turismo <strong>2003</strong> 15 – 18 February <strong>2003</strong> Italy<br />
Japan Travel Mission <strong>2003</strong> 24 – 28 February <strong>2003</strong> Japan<br />
Internationale <strong>Tourism</strong>us Borse <strong>2003</strong> 7 – 11 March <strong>2003</strong> Germany<br />
Team Aust Business Events Educational 9 – 13 March <strong>2003</strong> Thailand<br />
<strong>2003</strong> Swedish Int.Travel & <strong>Tourism</strong> Trade Fair 20 – 23 March <strong>2003</strong> Sweden<br />
Incentive Travel & Meetings & Events 8 – 10 April <strong>2003</strong> Germany<br />
<strong>2003</strong> ATEC Symposium 15 – 16 May <strong>2003</strong> <strong>Australia</strong><br />
EU Incentive, Business Travel & Meeting Exhibition 20 – 22 May <strong>2003</strong> Switzerland<br />
ATE <strong>2003</strong> 14 – 20 June <strong>2003</strong> <strong>Australia</strong><br />
Vakantiebeurs 7 – 12 January <strong>2003</strong> Netherlands<br />
French Roadshow 21 – 24 January <strong>2003</strong> France<br />
Dublin Holiday World 23 – 26 January <strong>2003</strong> Ireland<br />
US Symposium 17 – 19 February <strong>2003</strong> <strong>Australia</strong><br />
Malaysia International Travel Fair 14 – 16 March <strong>2003</strong> Malaysia<br />
Club Oz Korea 21 – 22 March <strong>2003</strong> Korea<br />
Oz Talk New Zealand 4 – 6 April <strong>2003</strong> New Zealand<br />
<strong>Australia</strong>n Road Show 24 – 25 April <strong>2003</strong> Korea<br />
Middle Eastern Road Show 1 – 3 May <strong>2003</strong> Middle East<br />
Arabian Travel Mart 6 – 9 May <strong>2003</strong> Dubai<br />
47
Business <strong>Tourism</strong><br />
The role of the ATC in business<br />
tourism is to position <strong>Australia</strong> as<br />
a unique, desirable and achievable<br />
destination for meetings, incentives,<br />
conventions and exhibitions.The<br />
Business <strong>Tourism</strong> unit promotes<br />
<strong>Australia</strong> as a business tourism<br />
destination through a range of<br />
industry marketing campaigns.<br />
These campaigns generate<br />
awareness of <strong>Australia</strong> as<br />
a great place to do business.<br />
Highlights and activities<br />
• Following the launch of the first<br />
business tourism global brand<br />
awareness campaign in 2001, the<br />
second phase of the campaign<br />
was launched in <strong>2002</strong> with the<br />
objective of converting this interest<br />
into business in the corporate<br />
meetings and incentives markets.<br />
The campaign has to date<br />
generated four pieces of confirmed<br />
business for <strong>Australia</strong> worth<br />
AUD$845,000.<br />
• Record numbers of<br />
125 international delegates from<br />
22 countries attended Dreamtime<br />
<strong>2002</strong>, the ATC’s trade event for<br />
the business tourism sector. Post<br />
event business tracking showed<br />
that delegates delivered over<br />
AUD$11.2 million of confirmed<br />
incentive business and an<br />
evaluation report showed high<br />
buyer satisfaction with the event.<br />
The Dreamtime <strong>2002</strong> Visiting<br />
Journalists Program generated<br />
AUD$1.18 million worth of<br />
editorial publicity.<br />
• The Team <strong>Australia</strong> Business<br />
Events Educational (TABEE) took<br />
place in Thailand in March <strong>2003</strong>,<br />
celebrating its fifth year.The event<br />
generated business valued at<br />
AUD$2.28 million.<br />
• The ATC hosted the first<br />
dedicated Asian Corporate<br />
Familiarisation with 12 potential<br />
corporate customers from five<br />
Asian countries travelling to<br />
<strong>Australia</strong>.This event has to date<br />
generated business valued at<br />
AUD$2.6 million.<br />
Promoting <strong>Australia</strong> as a business<br />
tourism destination, the second<br />
phase of the ATC’s business tourism<br />
global awareness campaign was<br />
launched in <strong>2002</strong><br />
48
Online Programs<br />
Management<br />
Online Programs Management<br />
is responsible for promoting<br />
<strong>Australia</strong> through online initiatives,<br />
including australia.com, ensuring<br />
the appropriate targeting of<br />
markets, website planning,<br />
partnership development, and<br />
online program strategy<br />
development.<br />
Highlights and activities<br />
• australia.com delivered over<br />
42 million pages to consumers<br />
globally in <strong>2002</strong>/03 which is an<br />
increase of 8 per cent on 2001/02.<br />
• The largest audience for<br />
australia.com was from America,<br />
accounting for 45 per cent of<br />
pages viewed, followed by Europe<br />
with 21 per cent, Japan and Korea<br />
with 13 per cent, Rest of World<br />
with 13 percent, other Asia 6 per<br />
cent and New Zealand and the<br />
Pacific with 2 per cent.<br />
• australia.com presented over<br />
13,600 <strong>Australia</strong>n products<br />
internationally sourced from the<br />
<strong>Australia</strong>n <strong>Tourism</strong> Data<br />
Warehouse (ATDW).This is a 23%<br />
increase in listings from 2001/02.<br />
• In March <strong>2003</strong> australia.com won<br />
the Travel & <strong>Tourism</strong> Web Award<br />
for Best Tourist Board against a<br />
field of international sites.The<br />
award was presented at the British<br />
Travel Trade Fair. A key feature of<br />
the site was the Ozplanner, a<br />
new interactive tool which was<br />
launched in the UK to help firsttime<br />
visitors in planning their<br />
holiday to <strong>Australia</strong>.<br />
• A review of australia.com included<br />
a redesign to make it easier for<br />
the visitor to select their preferred<br />
country or language from the<br />
home page.The site provides<br />
information and access to travel<br />
products in nine languages.<br />
• A Japanese edition of australia.com<br />
was launched featuring fullytranslated<br />
maps, <strong>Australia</strong>n<br />
<strong>Tourism</strong> Data Warehouse<br />
listings, revised editorial and<br />
localised travel campaigns.<br />
• australia.com content is exclusively<br />
featured in the Visit <strong>Australia</strong><br />
section of the official Rugby World<br />
Cup <strong>2003</strong> website. A dedicated<br />
section on australia.com was also<br />
created for this event.<br />
18,000,000<br />
16,000,000<br />
14,000,000<br />
12,000,000<br />
10,000,000<br />
8,000,000<br />
6,000,000<br />
4,000,000<br />
2,000,000<br />
0<br />
australia.com delivered over<br />
42 million pages to consumers<br />
globally in <strong>2002</strong>/03 – an increase<br />
of 8 percent on 2001/02<br />
australia.com page impression by region <strong>2002</strong>/03<br />
Americas<br />
Europe<br />
Japan<br />
& Korea<br />
Rest of<br />
World<br />
Asia<br />
NZ &<br />
Pacific<br />
49
Organisational Development<br />
The role of Organisation<br />
Development is to build optimum<br />
organisational performance which<br />
includes developing the ATC’s<br />
corporate and tourism strategic<br />
direction, driving change in all<br />
aspects of the organisation’s<br />
operations including<br />
re-engineering business processes;<br />
and ensuring the organisation has<br />
the appropriate human capability,<br />
culture and structures to meet<br />
ever-changing needs.<br />
People and Internal<br />
Communications<br />
• Staff numbers as at 30 June <strong>2003</strong><br />
were 88 employees in the Sydney<br />
Office and 105 in 13 overseas<br />
locations.<br />
Highlights and activities<br />
• A set of consistent global<br />
recruitment strategies and<br />
guidelines were developed,<br />
incorporating the ATC’s vision,<br />
values, core competencies<br />
and behaviours, along with<br />
a full recruitment guide to<br />
assist all managers.<br />
• Two separate leadership training<br />
programs were conducted globally<br />
for all managers, focusing on<br />
equipping managers with key<br />
management skills. Seventy<br />
managers completed the program<br />
during May and June <strong>2003</strong>.<br />
• A Global Employee Survey was<br />
conducted measuring a number<br />
of key indices including core<br />
management behaviours, internal<br />
communications, reward and<br />
recognition, vision and values and<br />
communication.The survey<br />
provided valuable information on<br />
how to improve in such areas as<br />
career development, recognition<br />
and work/life balance.<br />
• A new performance management<br />
program was implemented globally,<br />
with outcomes including a<br />
distribution curve in line with best<br />
practice and a globally consistent<br />
approach to performance<br />
management – a first step in<br />
aligning performance with pay.<br />
• Global Team Development<br />
workshops provided ATC staff<br />
with valuable skills to improve<br />
team working and interaction<br />
in the workplace.<br />
• An intranet site, ATC Central,<br />
was developed to better inform<br />
employees about all aspects of the<br />
ATC, along with a monthly team<br />
briefing process.<br />
Workplace diversity<br />
• The ATC maintains workplace<br />
diversity by ensuring equity in<br />
recruitment procedures and the<br />
creation of promotional<br />
opportunities both in the Sydney<br />
office and on a global basis.The<br />
ATC’s Equal Employment<br />
Opportunity (EEO) program<br />
especially recognises employees’<br />
domestic and family responsibilities.<br />
In furthering ‘family friendly’<br />
policies, the ATC offers part-time<br />
employment and flexibility in<br />
working hours.<br />
• Of the 193 employees at 30 June<br />
<strong>2003</strong>, 61 per cent were females.<br />
Women held 17 out of 41<br />
management positions. Of the total<br />
permanent employees some 37<br />
per cent were from non-English<br />
speaking backgrounds.<br />
Occupational health and safety<br />
• The ATC is fully compliant with<br />
all occupational health and safety<br />
requirements.The ATC’s Safety<br />
Improvement Team meets regularly<br />
and ensures that the regulatory<br />
guidelines determined by Comcare<br />
are achieved.<br />
Employee relations<br />
• There were no industrial disputes<br />
in the past 12 months.<br />
Commonwealth Disability<br />
Strategy<br />
• In line with the Commonwealth<br />
Disability Strategy, our recruitment<br />
information is provided in multiple<br />
formats as required.<br />
• ATC programs, where possible, are<br />
held in locations that are accessible<br />
to people with disabilities.<br />
50
Corporate<br />
Strategy/Operational<br />
Effectiveness<br />
Highlights and activities<br />
• A more rigorous analytical approach<br />
to strategic planning was introduced<br />
in consultation with key internal<br />
and external industry stakeholders,<br />
focusing more on objectives and<br />
outcomes.<br />
• A Key Performance Indicators (KPI)<br />
framework was implemented<br />
across the ATC including industry,<br />
corporate, business group, program<br />
and individual indicators.<br />
• The ATC implemented project<br />
management governance tools<br />
in the technology area and<br />
investigated project management<br />
methodologies to raise the level<br />
of significance and capability across<br />
the rest of ATC.<br />
• A new strategic positioning of<br />
markets methodology was<br />
developed as well as a business<br />
model to evaluate all activity.<br />
• Project Mercury, a tourism<br />
foresight project, identified future<br />
global consumer and industry<br />
trends, developing action plans<br />
against a range of possible scenarios,<br />
which were incorporated into the<br />
strategic planning process.<br />
<strong>Tourism</strong> & Aviation Strategy<br />
During the year the department<br />
created a new unit,<strong>Tourism</strong> and<br />
Aviation Strategy, to complete the<br />
Organisation Development team<br />
and work with key aviation and<br />
other industry stakeholders.<br />
Highlights and activities<br />
• A monitor of inbound tourism<br />
arrivals was developed to analyse<br />
impact by market of the Iraq<br />
War and SARS.<br />
• The ATC presented a detailed<br />
submission to the <strong>Australia</strong>n<br />
Consumer Commission (ACCC)<br />
review of the proposed Qantas/<br />
Air NZ Alliance.<br />
• A position on key air service<br />
bilateral agreements was<br />
developed and briefings conducted,<br />
including negotiations with China<br />
and Malaysia which produced<br />
increases in available capacity.<br />
51
Public Affairs<br />
The Public Affairs department is<br />
responsible for developing and<br />
implementing communications<br />
strategies to raise awareness of<br />
the ATC’s global activities and the<br />
value of inbound tourism within<br />
<strong>Australia</strong> among the media,<br />
government, tourism industry,<br />
business and general community.<br />
During the Iraq crisis and SARS<br />
outbreak, Public Affairs played<br />
a strategic role in issues<br />
management, and worked closely<br />
with STO counterparts and<br />
Department of Industry,<strong>Tourism</strong><br />
and Resources on the<br />
implementation of the National<br />
<strong>Tourism</strong> Incident Response Plan.<br />
Daily global reports from<br />
overseas offices on consumer<br />
sentiment to travel were<br />
produced and distributed to<br />
government and the industry,<br />
along with regular updates on the<br />
ATC’s corporate website, ATC<br />
Online. Information, reassuring<br />
travellers of <strong>Australia</strong>’s SARS-free<br />
status, was also provided to<br />
consumers via australia.com.<br />
Highlights and activities<br />
• In <strong>2002</strong>/03 Public Affairs managed<br />
more than 2,000 media enquiries<br />
with the purpose of generating<br />
extensive media coverage in<br />
key newspapers and business<br />
publications, and broadcast media<br />
on the ATC’s programs and<br />
inbound tourism’s contribution<br />
to <strong>Australia</strong>’s economy.<br />
• A comprehensive media program<br />
was organised for the <strong>Australia</strong>n<br />
<strong>Tourism</strong> Exchange (ATE) <strong>2003</strong>,<br />
52<br />
with more than 40 domestic media<br />
attending and resulting in more<br />
than 100 media stories generated<br />
throughout the week-long event.<br />
• The department also coordinated<br />
the government relations program<br />
for ATE involving State,Territory<br />
and Federal Ministers.Twelve<br />
members of the Friends of<br />
<strong>Tourism</strong>, a Federal committee of<br />
government representatives,<br />
attended ATE along with the Hon<br />
Peter Costello,Treasurer and the<br />
Hon Joe Hockey, Minister for Small<br />
Business and <strong>Tourism</strong>, and <strong>Tourism</strong><br />
Ministers from six states.<br />
• Media launches for <strong>Australia</strong>n<br />
<strong>Tourism</strong> Ambassadors Megan Gale<br />
and Layne Beachley were organised<br />
during the year.<br />
• The industry website, ATC Online,<br />
delivered 1,307,649 pages of<br />
information during <strong>2002</strong>/03, a<br />
14 per cent increase over the<br />
previous year.The essentials<br />
electronic newsletter subscription<br />
base increased from 9,000 to over<br />
13,000. A review was undertaken<br />
to determine how the industry<br />
communications, ATC Online and<br />
essentials newsletter could better<br />
benefit the industry.<br />
Government Relations<br />
The Government Relations unit<br />
provides policy input to<br />
Commonwealth Government and<br />
Parliamentary forums by way of<br />
briefs and submissions and plays<br />
an advisory role to the executive<br />
management team and Board on<br />
government and political matters.<br />
The unit liaises with national<br />
tourism industry associations and<br />
State and Territory <strong>Tourism</strong><br />
Organisations on matters relating<br />
to tourism policy, primarily<br />
focused on foreign affairs and<br />
trade, immigration and regional<br />
issues, and strengthens<br />
relationships with government<br />
stakeholders in order to raise<br />
awareness of the value of<br />
inbound tourism.<br />
Highlights and activities<br />
• Presentations, submissions and<br />
responses were prepared for the<br />
Friends of <strong>Tourism</strong>, <strong>Australia</strong>n<br />
Standing Committee on <strong>Tourism</strong><br />
(ASCOT),<strong>Tourism</strong> Ministers<br />
Council, and Senate Estimates<br />
hearings.The unit represented the<br />
ATC on a number of government<br />
committees including the<br />
Major Events Commonwealth<br />
Coordination Group, the M2006<br />
Working Group Committee,<br />
National <strong>Tourism</strong> and Heritage<br />
Taskforce, Commission for<br />
International Cultural Promotion<br />
and the International Education<br />
Interdepartmental Committee.<br />
• A sustainable tourism strategy and<br />
plan was implemented to fulfil the<br />
ATC’s statutory obligations and<br />
help ensure the responsible<br />
development and promotion of<br />
<strong>Australia</strong>’s tourism industry.<br />
• A Memorandum of Understanding<br />
was signed with Austrade to<br />
work cooperatively in international<br />
markets and preparations<br />
for a Memorandum of<br />
Understanding on the promotion of<br />
<strong>Australia</strong>n education internationally<br />
were progressed during the year.
Corporate Services<br />
The role of Corporate Services is<br />
to supply financial, administrative,<br />
risk management, information<br />
technology project management<br />
and technical support, and<br />
corporate database and web<br />
development support as well as<br />
Board secretarial services to the<br />
Commission.<br />
Finance<br />
The Sydney Finance Unit provides<br />
professional services for the total<br />
finance functions of the ATC.<br />
The unit develops strategies and<br />
maintains operations for financial<br />
systems, budgeting, tax reporting,<br />
and treasury operations for the<br />
ATC and supports the regional<br />
finance teams.<br />
The regional finance teams<br />
operate from London and Hong<br />
Kong, overseeing the Western<br />
and Eastern Hemispheres<br />
respectively.<br />
Highlights and activities<br />
• A key responsibility for the<br />
unit was accounting for the<br />
Commission’s expenditure for the<br />
year of $117.7 million, down from<br />
$120.5 million in 2001/02.<br />
• Government revenue was<br />
$99.9 million and revenue from<br />
cooperative industry activities and<br />
other sources reached $22 million;<br />
a combined total of $121.9 million.<br />
• A $2.3million decline in<br />
non-government revenue on last<br />
year reflects a reduced participation<br />
in marketing by the industry, and a<br />
partial refund for some <strong>Australia</strong>n<br />
<strong>Tourism</strong> Exchange delegates to<br />
assist industry participants<br />
impacted by the SARS outbreak.<br />
• The ATC incurred an operating<br />
surplus of $4.1 million for <strong>2002</strong>/03,<br />
after recording a $1.7 million<br />
surplus last financial year.<br />
• Debts written-off during the year<br />
totalled $30,808 with provision<br />
for doubtful debts remaining at<br />
$211,000 in <strong>2002</strong>/03 to reflect<br />
the accrual of potentially nonrecoverable<br />
debts over the year.<br />
Debtors profile and collections<br />
were improved during the year.<br />
• Under a directive from the<br />
Department of Finance, foreign<br />
currency funds management was<br />
undertaken on a spot basis with<br />
transactions being initiated to<br />
provide the ATC with the most<br />
cost-effective level of foreign<br />
currency funding.<br />
• There were no significant<br />
acquisitions or dispositions of<br />
property by the ATC during<br />
the period.<br />
• In <strong>2002</strong>/03 the ATC<br />
completed an upgrade of its<br />
financial system.<br />
Risk Management &<br />
Administration<br />
As an integral part of ATC<br />
business practices, risk<br />
management principles and<br />
practices have been incorporated<br />
into the Commission’s decisionmaking<br />
and operational activity.<br />
The operations of the risk<br />
management area are designed<br />
to meet the principle objective<br />
of minimising risk to the ATC in<br />
a cost effective manner and to<br />
an acceptable level.<br />
The ATC has a comprehensive<br />
insurance program that includes<br />
Directors’ and Officers’ Liability<br />
Cover which is managed by<br />
Comcover.<br />
53
Highlights and activities<br />
• An education program that<br />
identified business risks and<br />
promoted risk management<br />
practices specific to each business<br />
area within the ATC, was<br />
maintained.<br />
• A suite of risk management<br />
policies, practices and processes<br />
was enhanced and maintained.<br />
• A comprehensive internal audit<br />
program was undertaken by<br />
KPMG.<br />
• A comprehensive insurance<br />
program was maintained.<br />
• The Commission complied with<br />
Government and legal guidelines<br />
in relation to new legislation,<br />
Government Online and other<br />
statutory regulations.<br />
• New Corporate Policies were<br />
developed and introduced.<br />
Application Development<br />
& Support<br />
The Application Development<br />
and Support (ADS) team is<br />
responsible for delivering<br />
technical solutions required to<br />
support the processing of the<br />
ATC business as well as<br />
supporting all technical aspects<br />
related to marketing activities.<br />
Highlights and activities<br />
• During the year the department<br />
developed key enhancements to<br />
support marketing programs on<br />
australia.com and Business <strong>Tourism</strong><br />
websites, including providing key<br />
statistical reporting data to<br />
business users and partners on<br />
associated marketing initiatives<br />
and campaigns.<br />
• The unit also provided maintenance<br />
and support services for all ATC’s<br />
website sites, including ATC Online,<br />
Business <strong>Tourism</strong> and Trade Events<br />
Online.<br />
• Phase one of the Document<br />
Management, Recordkeeping and<br />
Archive project, was implemented,<br />
ensuring on going compliance with<br />
Federal Government guidelines.<br />
Information Technology<br />
and Communications<br />
The Information Technology &<br />
Telecommunications (IT&T) Unit<br />
is responsible for managing the<br />
helpdesk services for Sydney and<br />
regional offices; day-to-day<br />
operations and administration of<br />
computing facilities; management<br />
of the telecommunications<br />
network and web hosting<br />
contracts for the ATC consumer<br />
website, australia.com.<br />
Highlights and activities<br />
• The department carried out<br />
migration to a new data<br />
communications network which<br />
provided real time communication<br />
to all ATC offices and linked an<br />
additional three offices to<br />
the system.<br />
• Infrastructure improvements were<br />
conducted, including the<br />
implementation of centralised high<br />
capacity data storage, upgraded<br />
computer room facilities and<br />
remote access facilities and an<br />
upgraded database server for<br />
australia.com.<br />
• A new Internet Service Provider<br />
was engaged, which delivered<br />
improved access speed at greatly<br />
reduced cost.<br />
54
Corporate Governance<br />
The Board of Directors<br />
The ATC is governed by a<br />
10-member Board of Directors,<br />
which reports to the Minister for<br />
Small Business & <strong>Tourism</strong>.<br />
The object of the ATC Board is<br />
defined by the ATC Act 1987 in<br />
terms of its principal role, which<br />
is to:<br />
• ensure the proper and efficient<br />
performance of the<br />
Commission’s functions; and<br />
• determine the Commission’s<br />
policy in relation to any matter.<br />
The ATC Board is responsible<br />
for a governance framework to<br />
ensure that it achieves its<br />
statutory mandate.<br />
As a public sector agency, the<br />
ATC must be conversant with the<br />
general policies of the government<br />
of the day, as well as be informed<br />
about key Ministerial directions,<br />
and Commonwealth guidelines<br />
on major initiatives that relate<br />
to the organisation.<br />
The Board is cognisant of new<br />
directions and recommendations<br />
for enhanced Corporate<br />
Governance and will be reviewing<br />
the implications of these in<br />
<strong>2003</strong>/04.<br />
The Chairman<br />
The Chairman and the Managing<br />
Director are separate<br />
appointments to ensure<br />
appropriate accountability and<br />
greater capacity of the Board<br />
for independent decision-making.<br />
The Chairman ensures that<br />
sufficient Board meetings are held<br />
to enable it to perform its duties<br />
responsibly; that appropriate<br />
agenda items are placed before<br />
the Board; and exercises control<br />
over the quality, quantity and<br />
timeliness of the flow of<br />
information between<br />
management and the Board.<br />
The Chairman is also responsible<br />
for the conduct of meetings of<br />
the Board.<br />
Board meetings<br />
The Board schedules six regular<br />
meetings each year. In addition,<br />
between Board meetings there<br />
is continuing contact between the<br />
Chairman and Managing Director<br />
to discuss major policy and<br />
operational matters, especially<br />
when such matters are the<br />
subject of Board interest, or<br />
are likely to become so.The<br />
Board also meets with senior<br />
management to discuss strategy<br />
and operational issues.<br />
The regular Board papers make<br />
Directors aware of current and<br />
forthcoming issues relevant to<br />
the Commission’s operations and<br />
performance.These papers<br />
contain the year-to-date financial<br />
performance of all business<br />
groups (compared to budget), a<br />
report from each of the executive<br />
management team, proposals for<br />
significant contracts and papers<br />
relating to particular issues. Senior<br />
management may also present<br />
significant matters to the Board.<br />
Personal and corporate<br />
integrity<br />
All directors and employees are<br />
expected to act with the utmost<br />
integrity and objectivity, striving<br />
at all times to enhance the<br />
reputation and performance of<br />
the ATC.<br />
The ATC Board subscribes to the<br />
code of conduct as recommended<br />
by the <strong>Australia</strong>n Institute of<br />
Company Directors.The code<br />
specifies values and behaviours<br />
in the areas of fairness, equity,<br />
lawful obedience, honesty,<br />
openness, respect, loyalty, integrity,<br />
protective care, efficiency, personal<br />
development and leadership with<br />
which all employees have a<br />
responsibility to comply.<br />
The ATC has developed and<br />
implemented a code of conduct<br />
for its employees which is<br />
consistent with these values<br />
and behaviours.<br />
Separate policies exist covering<br />
discrimination, employment,<br />
harassment, health and safety<br />
and other business practices<br />
such as email usage, fraud<br />
control and security.<br />
55
Conflicts of interest<br />
The Board has in place a policy<br />
and procedures for the disclosure<br />
and resolution of any matter<br />
which may give rise to actual or<br />
potential conflicts between the<br />
interests of a Director and those<br />
of the Commission.<br />
Risk management<br />
The ATC Board adopts practices<br />
designed to identify significant<br />
areas of business risk and to<br />
effectively manage those risks in<br />
accordance with the company’s<br />
risk profile.<br />
Board Sub-Committees<br />
The Board carries out certain of<br />
its duties by delegation to Board<br />
committees.These committees<br />
meet regularly and make<br />
recommendations to the Board<br />
on issues delegated to them.<br />
The committees operate under<br />
terms of reference approved by<br />
the Board.<br />
Audit and Finance<br />
Sub-Committee:<br />
This sub-committee ensures<br />
that an effective internal control<br />
framework exists across the<br />
ATC.This includes internal<br />
controls to deal with both the<br />
effectiveness and efficiency of<br />
significant business processes.<br />
The sub-committee also reviews<br />
accounting policies, risk<br />
management controls, funds<br />
management and financial<br />
statements.<br />
Human Resources<br />
Sub-Committee:<br />
This sub-committee oversees the<br />
Commission’s human resources<br />
principles, practices and programs<br />
with regard to employee terms<br />
and conditions, management<br />
development, equal employment<br />
opportunity and remuneration.<br />
Public Affairs<br />
Sub-Committee<br />
This subcommittee provides input<br />
into the Commission’s public<br />
affairs activities, including the<br />
strategies for communicating with<br />
key stakeholder groups, such as<br />
industry, media and government.<br />
Record of Board members<br />
and attendance<br />
The Board met seven times<br />
during the year in Sydney, Broome,<br />
Lorne,Tasmania and Adelaide and<br />
had an aggregate attendance of<br />
Directors of 94 per cent, the<br />
same as 2001/02.<br />
Board members also represented<br />
the ATC at both industry and<br />
general forums.<br />
56
Record of Board members and attendance<br />
Member Date of appointment / Expiry of appointment Board meetings<br />
reappointment attendance <strong>2002</strong>/03<br />
Mr Nick Evers<br />
Chairman 24.10.02 23.10.05 7<br />
Mr Tony Clark<br />
Deputy Chairman 14.08.00 13.08.03 7<br />
Mr Ken Boundy<br />
Managing Director 23.05.01 At Board’s pleasure 7<br />
Mr Paul Ah Chee<br />
Director 14.08.00 13.08.03 6<br />
Mrs Cinzia Burnes<br />
Director 14.08.00 13.08.03 5<br />
Dr Ken Chapman<br />
Director 14.08.00 13.08.03 7<br />
Mr Peter Hurley<br />
Director 14.08.00 13.08.03 7<br />
Ms Kate Lamont<br />
Director 14.08.00 13.08.03 7<br />
Mr David Mortimer<br />
Director 15.11.02 14.11.05 6<br />
Mr Mark Paterson<br />
Government member 13.05.02 At Minister’s pleasure 4<br />
Mr David Mazitelli<br />
Alt Government Member 11.07.93 11.04.03 3<br />
Ms Patricia Kelly<br />
Alt Government Member 13.05.03 At Minister’s pleasure 0<br />
Record of Board sub-committees<br />
Sub-committee Audit & Finance Human Resources Public Affairs<br />
members Sub-Committee Sub-Committee Sub-Committee<br />
POSITION ATTENDANCE <strong>2002</strong>/03 POSITION ATTENDANCE <strong>2002</strong>/03 POSITION ATTENDANCE <strong>2002</strong>/03<br />
Nick Evers Member 3 Member 1 Member 1<br />
Tony Clark Chairman 3<br />
David Mortimer Member 3<br />
Ken Boundy Member 3 Member 1 Member 1<br />
David Mazitelli (1) Chairman 1<br />
Paul Ah Chee Member 1<br />
Kate Lamont Member 1<br />
Peter Hurley Member 1<br />
Cinzia Burnes Chairman 1<br />
Notes: (1) Alternate Government Member<br />
57
Directors of the <strong>Australia</strong>n Tourist Commission<br />
as at 30 June <strong>2003</strong><br />
Mr Peter Hurley<br />
Mr Ken Boundy<br />
Managing Director<br />
Mr Paul Ah Chee<br />
Ms Kate Lamont<br />
Mr Tony Clark AM<br />
Deputy Chairman<br />
Appointed to the<br />
Board in August 2000.<br />
Director,<br />
P& J Hurley Pty Ltd,<br />
Independent Gaming<br />
Corporation Ltd,<br />
Hurleys Arkaba<br />
Hotel Pty Ltd,<br />
AHA Properties Ltd,<br />
Commodore Motel<br />
Mt Gambier Pty Ltd,<br />
Golden Gateway<br />
Tavern Pty Ltd,<br />
Wilhur Pty Ltd,<br />
Hospitality Group<br />
Training Inc, South<br />
<strong>Australia</strong>n <strong>Tourism</strong><br />
Commission, Adelaide<br />
Football Club<br />
Appointment current<br />
to 14 August <strong>2003</strong>.<br />
Appointed Managing<br />
Director in June 2001.<br />
Director,<br />
<strong>Australia</strong>n <strong>Tourism</strong><br />
Export Council,<br />
Poldent Pty Ltd<br />
Appointment current<br />
at Board’s pleasure.<br />
Mr. David Mortimer<br />
(not in photo)<br />
Appointed to<br />
the Board in<br />
September 1997.<br />
Chairman,<br />
Citect Corporation<br />
Limited, Crescent<br />
Capital Partners,<br />
MIA Ltd<br />
Deputy Chairman,<br />
<strong>Australia</strong> Post<br />
Non-Executive<br />
Director,<br />
Petsec Energy Ltd,<br />
Leighton Holdings Ltd,<br />
Adsteam Marine Ltd,<br />
Macquarie<br />
Infrastructure<br />
Investment<br />
Management Limited,<br />
Garvan Institute of<br />
Medical Research,<br />
Arrow Pharmaceuticals<br />
Limited<br />
Appointment current<br />
to 14 November 2005.<br />
Appointed to the<br />
Board in August 2000.<br />
Manager,<br />
Aboriginal Arts &<br />
Cultural Centre.<br />
Director,<br />
Aboriginal <strong>Australia</strong><br />
Arts & Culture<br />
Centre,<br />
Destours Pty Ltd,<br />
South <strong>Australia</strong>n<br />
Museum, Layata<br />
Inkeme Trust.<br />
Appointment current<br />
to 13 August <strong>2003</strong>.<br />
Appointed to the<br />
Board in August 2000.<br />
Director,<br />
Lamonts City Pty Ltd,<br />
K. Lamont Pty Ltd,<br />
Navera Pty Ltd<br />
Appointment current<br />
to 13 August <strong>2003</strong>.<br />
Appointed to the<br />
Board in August 1996.<br />
Chairman,<br />
Maritime Industry<br />
Finance Company Ltd<br />
Director, Amalgamated<br />
Holdings Limited,<br />
Carlton Investments<br />
Limited, Cumnock<br />
Coal Limited, Ramsay<br />
Health Care Ltd,Telstra<br />
Corporation Ltd<br />
Appointment current<br />
to 14 August <strong>2003</strong>.<br />
58
Mr Nick Evers<br />
Chairman<br />
Ms Cinzia Burnes<br />
Dr Kenneth<br />
Chapman<br />
Mr Mark Paterson<br />
Ms Patricia Kelly<br />
(not in photo)<br />
Appointed to the<br />
Board in May <strong>2003</strong>.<br />
Head of Division,<br />
Department of<br />
Industry,<strong>Tourism</strong><br />
and Resources<br />
Board Member, See<br />
<strong>Australia</strong><br />
Appointment current<br />
at Minister’s pleasure.<br />
Mr David Mazitelli<br />
(not in photo)<br />
Alternate Government<br />
Member<br />
Appointed to the<br />
Board in July 1993.<br />
Head,<strong>Tourism</strong> Strategy<br />
Group, Department of<br />
Industry,<strong>Tourism</strong> and<br />
Resources.<br />
Director, See <strong>Australia</strong>,<br />
<strong>Tourism</strong> Training<br />
<strong>Australia</strong>, <strong>Australia</strong><br />
Quality Council<br />
Resigned April <strong>2003</strong>.<br />
Appointed to<br />
the Board in<br />
October 1999.<br />
Chairman,<br />
TT Line Company<br />
Pty Ltd, Abalone Farms<br />
<strong>Australia</strong> Pty Ltd<br />
Appointment current<br />
to 23 October 2005.<br />
Appointed to the<br />
Board in August 2000<br />
Director,<br />
The <strong>Australia</strong>n<br />
Outback Travel<br />
Company Pty Ltd,<br />
Travel Point Pty Ltd,<br />
Fly-Drive <strong>Australia</strong> Pty<br />
Ltd, Hotelbank Pty Ltd,<br />
AOT (NZ) Limited,<br />
Pacific Leisure Group<br />
Pty Ltd, Longbush<br />
Nominees Pty Ltd,<br />
Burnewang Pastoral<br />
Company Pty Ltd,<br />
AOTG Professional<br />
Services Pty Ltd,<br />
Port Canna Pty Ltd,<br />
The Burnes Groups<br />
Pty Ltd, <strong>Australia</strong>n<br />
Incentive Travel<br />
Company Pty Ltd,<br />
Travelset.com Pty Ltd<br />
Appointment current<br />
to 13 August <strong>2003</strong>.<br />
Appointed to the<br />
Board in August 1998.<br />
Chairman,<br />
Far North Queensland<br />
Hospital Foundation<br />
Deputy Chairman,<br />
Queensland <strong>Tourism</strong><br />
Industry Council<br />
Director,<br />
Armcape Pty Ltd,<br />
Brinsmead Shopping<br />
Plaza Pty Ltd, Cairns<br />
Developers Pty Ltd,<br />
Chapman Resorts<br />
Pty Ltd, Cowboys<br />
Leagues Club Ltd,<br />
Dimitra Pty Ltd,<br />
Divalin Pty Ltd, Emiluk<br />
Developments Pty Ltd,<br />
Emiluk Pty Ltd,<br />
Far North Queensland<br />
Promotion Bureau Ltd<br />
(Trading as <strong>Tourism</strong><br />
Tropical North<br />
Queensland),<br />
GFB Fisheries Ltd,<br />
G E Chapman Pty Ltd,<br />
Geomar Pty Ltd,<br />
Geomar<br />
Superannuation Pty<br />
Ltd, Geomar Trading<br />
Pty Ltd,<br />
GFB Development,<br />
Honeycombes<br />
Investment Group<br />
Pty Ltd, Hypha Pty Ltd,<br />
Nameha Pty Ltd,<br />
Southbank<br />
Developments Pty Ltd,<br />
Skyrail-ITM (Asia) Ltd,<br />
Skyrail-ITM<br />
(Hong Kong) Ltd,<br />
THsfConsortium Pty<br />
Ltd,Tjapukai Pty Ltd,<br />
Triamid Pty Ltd,<br />
International <strong>Tourism</strong><br />
Management Pty Ltd<br />
(Trading as :<br />
Skyrail-ITM),<br />
Skyrail Pty Ltd<br />
(Trading name: Skyrail<br />
Rainforest Cableway)<br />
Alternate Director,<br />
Rainforest CRC<br />
Appointment current<br />
to 13 August <strong>2003</strong>.<br />
Appointed to the<br />
Board in January <strong>2002</strong>.<br />
Secretary,<br />
Department of<br />
Industry,<strong>Tourism</strong> and<br />
Resources<br />
Director,<br />
AUSTRADE, Export<br />
Finance Insurance<br />
Corporation,<br />
Hanford R Pty Ltd<br />
Appointment current<br />
at Minister’s pleasure.<br />
59
Management and Organisation Structure<br />
as at 30 June <strong>2003</strong><br />
Minister<br />
Board<br />
Managing Director<br />
Ken Boundy<br />
EGM Eastern<br />
Hemisphere<br />
Richard Beere<br />
EGM Western<br />
Hemisphere<br />
Andrew McEvoy<br />
EGM Marketing<br />
Development<br />
Stephen O’Neill<br />
EGM Corporate<br />
Services<br />
John Hopwood<br />
EGM Organisation<br />
Development<br />
Amanda Green<br />
Public Affairs<br />
General Manager<br />
North Asia<br />
General Manager<br />
South East Asia<br />
General Manager<br />
Japan<br />
Regional Marketing<br />
Regional Corporate<br />
Services<br />
Business<br />
Development<br />
General Manager<br />
Europe<br />
General Manager<br />
Americas<br />
Regional Corporate<br />
Services<br />
Business<br />
Development<br />
Partnership<br />
Marketing<br />
Advertising<br />
and Design<br />
International Media<br />
Market Insights<br />
Online Program<br />
Management<br />
Segment<br />
Development<br />
Trade Events<br />
Finance<br />
Risk Management<br />
& Administration<br />
Application<br />
Development<br />
& Support<br />
Information<br />
Technology &<br />
Communications<br />
Corporate Strategy<br />
<strong>Tourism</strong> & Aviation<br />
Strategy<br />
Operational<br />
Effectiveness<br />
People &<br />
Communications<br />
Public Affairs<br />
Corporate<br />
Communications<br />
Government<br />
Relations<br />
Industry<br />
Communications<br />
Partnership<br />
Marketing<br />
60
Ecologically Sustainable Development<br />
The ATC has a statutory<br />
responsibility in relation to<br />
Ecologically Sustainable<br />
Development.<br />
The <strong>Australia</strong>n Tourist<br />
Commission Act (1987) defines<br />
the ATC’s role as:<br />
Section 6 (c)<br />
To work with other relevant<br />
agencies to promote the<br />
principles of ecologically<br />
sustainable development set<br />
out in subsection 21 (3) of the<br />
Natural Heritage Trust of<br />
<strong>Australia</strong> Act 1997 and to seek to<br />
raise awareness of the social and<br />
cultural impacts of international<br />
tourism in <strong>Australia</strong>.<br />
Section 7 (e)<br />
To closely monitor and report<br />
the effects of international<br />
tourism on <strong>Australia</strong>’s natural<br />
environment and society.<br />
Section 8 (b)<br />
‘Powers of the Commission’<br />
To provide information and<br />
advice to assist sensitive,<br />
environmentally and socially<br />
sound development of the<br />
<strong>Australia</strong>n tourism industry.<br />
Section 8 (c)<br />
To undertake research and<br />
disseminate information obtained<br />
from the research.<br />
Section 13 (3) –<br />
Appointment of Members<br />
to the Board of Directors<br />
At least one of the persons<br />
appointed as a member by the<br />
Minister shall be a person who<br />
has environmental or sociological<br />
expertise relevant to the tourism<br />
industry.<br />
In February <strong>2003</strong> the Board<br />
approved a sustainable tourism<br />
action plan for the ATC.This plan<br />
provides a framework for the<br />
ATC to meet its statutory<br />
responsibilities regarding<br />
sustainable tourism, and wherever<br />
possible, contribute to ensuring<br />
the continued viability of the<br />
industry over the long-term<br />
through sustainable and<br />
responsible tourism marketing<br />
practices.The ATC’s approach to<br />
developing a plan for sustainable<br />
tourism is based on:<br />
• Developing beneficial partnerships<br />
which contribute to the long-term<br />
environmental, social and economic<br />
sustainability of the tourism<br />
industry;<br />
• Developing a reliable knowledge<br />
base to enable effective decision<br />
making processes which integrate<br />
both long-term and short-term<br />
economic, environmental and social<br />
considerations;<br />
• Creating a sustainable tourism<br />
focus for ATC marketing activities;<br />
• Creating a high profile for best<br />
practice sustainable tourism<br />
product; and<br />
• Improving the ATC’s corporate<br />
environmental performance<br />
Highlights and activities<br />
• The ATC participated in the<br />
Sustainable <strong>Tourism</strong> Roundtable<br />
established in 2001/02 with the<br />
Department of Industry,<strong>Tourism</strong><br />
and Resources (DITR).<br />
• The ATC has participated in<br />
discussions with Environment<br />
<strong>Australia</strong> (incorporating the<br />
<strong>Australia</strong>n Heritage Commission);<br />
DITR; the Indigenous <strong>Tourism</strong><br />
Leaders Group; the Bureau of<br />
<strong>Tourism</strong> Research; Cooperative<br />
Research Centre for Sustainable<br />
<strong>Tourism</strong>; Ecotourism <strong>Australia</strong> and<br />
Green Globe 21.The Commission<br />
also joined the National <strong>Tourism</strong><br />
and Heritage Taskforce of the<br />
Environment Protection and<br />
Heritage Council.<br />
• Information on the ATC’s position<br />
on sustainable tourism, with links<br />
to agencies and resources, were<br />
added to the ATC’s industry<br />
website, ATC Online.<br />
• The ATC worked with Ecotourism<br />
<strong>Australia</strong> to profile accredited<br />
ecotourism product at ATE.<br />
• A review of the ATC’s<br />
environmental management<br />
systems and practices was<br />
completed in June <strong>2003</strong>. As a<br />
result, the ATC is in the process<br />
of updating its environmental<br />
management practices.<br />
• Consumer information on<br />
responsible tourism was added<br />
to the ATC’s consumer website,<br />
australia.com.<br />
61
International visitor arrivals<br />
Visitors by country of residence<br />
Country of residence<br />
Six months to June Year ended 30 June Month of June<br />
<strong>2002</strong> <strong>2003</strong> 03/02 <strong>2002</strong> <strong>2003</strong> 03/02 <strong>2002</strong> <strong>2003</strong> 03/02<br />
‘000 ‘000 % change ‘000 ‘000 % change ‘000 ‘000 % change<br />
Oceania & Antarctica<br />
Fiji 10.7 11.2 5 24.0 23.7 -2 1.7 1.8 4<br />
New Caledonia 16.2 18.3 13 29.1 32.6 12 1.3 2.3 73<br />
New Zealand 351.1 354.1 1 787.7 793.1 1 70.1 67.9 -3<br />
Papua New Guinea 16.6 12.0 -28 35.7 26.7 -25 2.8 2.3 -18<br />
Other 14.5 13.2 -9 31.0 28.7 -7 2.5 2.1 -15<br />
Total 409.1 408.9 0 907.5 904.7 0 78.4 76.3 -3<br />
Europe & the Former USSR<br />
Austria 8.2 8.0 -2 18.9 18.9 0 0.7 0.8 9<br />
Belgium 4.3 4.1 -5 10.8 10.6 -2 0.5 0.5 16<br />
Denmark 8.7 8.4 -3 18.3 18.6 2 0.9 1.2 27<br />
Former USSR & Baltic States 4.0 3.6 -10 9.3 8.5 -8 0.4 0.4 -12<br />
France 23.0 19.7 -14 52.0 46.3 -11 3.2 2.7 -15<br />
Germany 60.0 59.2 -1 136.8 134.0 -2 5.9 4.8 -18<br />
Greece 3.4 1.8 -48 7.5 5.4 -28 0.6 0.3 -59<br />
Ireland 22.8 22.0 -4 50.6 47.2 -7 4.3 4.1 -5<br />
Italy 15.5 14.7 -5 41.1 42.5 3 2.4 1.7 -29<br />
Netherlands 22.9 22.0 -4 54.6 52.1 -5 2.3 2.4 5<br />
Norway 8.1 8.7 7 16.4 17.5 6 0.9 1.0 8<br />
Spain 4.8 4.4 -8 12.7 12.1 -5 0.7 0.6 -2<br />
Sweden 13.5 14.3 6 30.2 31.8 5 1.3 1.3 7<br />
Switzerland 18.1 17.8 -2 43.4 41.2 -5 1.7 1.6 -9<br />
United Kingdom 302.2 303.8 1 627.1 644.2 3 27.0 28.9 7<br />
Other 19.8 16.6 -16 42.8 39.6 -7 2.0 2.2 9<br />
Total 539.2 529.1 -2 1,172.2 1,170.4 0 54.9 54.6 0<br />
The Americas<br />
Canada 47.0 42.7 -9 93.0 86.5 -7 4.0 4.1 1<br />
United States of America 218.1 207.1 -5 424.4 423.5 0 39.7 38.5 -3<br />
Other 16.0 12.3 -23 33.6 27.1 -19 2.4 1.9 -21<br />
Total 281.2 262.1 -7 551.1 537.1 -3 46.2 44.5 -4<br />
Africa (excluding North Africa)<br />
South Africa 24.8 21.4 -14 55.7 47.5 -15 3.7 3.3 -10<br />
Other 8.1 7.0 -14 17.0 15.2 -11 1.1 0.9 -21<br />
Total 32.9 28.4 -14 72.7 62.7 -14 4.8 4.2 -13<br />
62
Middle East & North Africa<br />
Israel 8.1 6.2 -23 15.7 13.2 -16 0.8 0.6 -30<br />
Other 13.8 14.4 4 40.6 37.0 -9 2.7 2.6 -5<br />
Total 21.9 20.6 -6 56.3 50.2 -11 3.6 3.2 -11<br />
Southeast Asia<br />
Brunei 3.8 3.5 -7 7.9 6.9 -13 0.4 1.0 184<br />
Indonesia 41.7 39.2 -6 94.7 86.9 -8 7.4 7.9 7<br />
Malaysia 76.9 60.3 -22 154.3 142.4 -8 9.6 8.7 -9<br />
Philippines 15.8 12.7 -19 29.9 25.4 -15 1.8 1.9 5<br />
Singapore 140.5 115.2 -18 295.8 261.6 -12 31.8 30.3 -5<br />
Thailand 43.1 35.9 -17 80.0 75.5 -6 4.6 4.8 5<br />
Other 10.1 8.9 -12 20.2 19.0 -6 1.4 1.3 -13<br />
Total 331.8 275.8 -17 682.7 617.7 -10 57.0 56.0 -2<br />
Northeast Asia<br />
China (excl. SARs and Taiwan) 92.1 79.2 -14 172.3 177.1 3 10.5 4.5 -57<br />
Hong Kong (SAR of China) 72.3 62.1 -14 148.6 140.7 -5 10.5 12.9 24<br />
Japan 335.6 278.8 -17 659.2 658.6 0 50.2 29.5 -41<br />
Korea 90.4 96.4 7 181.1 195.8 8 11.5 14.1 23<br />
Taiwan 52.2 35.6 -32 99.1 80.8 -18 7.5 3.8 -50<br />
Other 0.9 0.8 -11 2.1 1.8 -12 0.1 0.1 3<br />
Total 643.5 552.8 -14 1,262.4 1,254.8 -1 90.3 65.0 -28<br />
Southern Asia<br />
India 25.2 21.4 -15 47.3 41.2 -13 3.3 3.6 7<br />
Other 6.8 7.0 3 14.1 14.1 0 0.8 1.0 18<br />
Total 32.0 28.4 -11 61.4 55.3 -10 4.2 4.5 9<br />
Not stated 1.0 1.2 18 2.0 2.7 34 0.1 0.1 -1<br />
Total 2,292.7 2,107.3 -8 4,768.3 4,655.8 -2 339.4 308.3 -9<br />
Source: <strong>Australia</strong>n Bureau of Statistics, Overseas Arrivals and Departures , 3401.0. ABS data used with permission from the <strong>Australia</strong>n Bureau of Statistics<br />
Month of June Six months to June Year ended 30 June<br />
63
Financial<br />
<strong>Report</strong>s<br />
65
Independent Audit <strong>Report</strong><br />
Matters relating to the Electronic Presentation of the Audited Financial <strong>Report</strong><br />
This audit report relates to the financial report of the <strong>Australia</strong>n Tourist Commission for the year ended 30 June <strong>2003</strong> included<br />
on the <strong>Australia</strong>n Tourist Commission’s web site.The Chairman is responsible for the integrity of the <strong>Australia</strong>n Tourist<br />
Commission’s web site.<br />
The audit report refers only to the statements named below. It does not provide an opinion on any other information, which<br />
may have been hyper linked to/from the audited financial report.<br />
If the users of this report are concerned with the inherent risks arising from electronic data communications they are advised<br />
to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report<br />
presented on this web site.<br />
Scope<br />
I have audited the financial statements of the <strong>Australia</strong>n Tourist Commission for the year ended 30 June <strong>2003</strong>.The financial<br />
statements comprise:<br />
• Statement by Directors;<br />
• Statements of Financial Performance, Financial Position and Cash Flows;<br />
• Schedules of Commitments and Contingencies; and<br />
• Notes to and forming part of the Financial Statements.<br />
The members of the Board are responsible for the preparation and presentation of the financial statements and the information<br />
they contain. I have conducted an independent audit of the financial statements in order to express an opinion on them to you.<br />
The audit has been conducted in accordance with the <strong>Australia</strong>n National Audit Office Auditing Standards, which incorporate<br />
the <strong>Australia</strong>n Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material<br />
misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other<br />
disclosures in the financial statements and the evaluation of accounting policies and significant accounting estimates.These<br />
procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are<br />
presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in <strong>Australia</strong><br />
and statutory requirements so as to present a view which is consistent with my understanding of the Commission’s financial<br />
position, its financial performance and its cash flows.<br />
The audit opinion expressed in this report has been formed on the above basis.<br />
Audit Opinion<br />
In my opinion the financial statements:<br />
(i) have been prepared in accordance with Finance Minister’s Orders made under the Commonwealth Authorities and<br />
Companies Act 1997; and<br />
(ii) give a true and fair view, in accordance with applicable Accounting Standards and other mandatory professional reporting<br />
requirements in <strong>Australia</strong> and the Finance Minister’s Orders, of the financial position of the <strong>Australia</strong>n Tourist Commission<br />
as at 30 June <strong>2003</strong>, and its financial performance and cash flows for the year then ended.<br />
<strong>Australia</strong>n National Audit Office<br />
P Hinchey<br />
Senior Director<br />
Delegate of the Auditor-General<br />
Sydney<br />
15 August, <strong>2003</strong><br />
66<br />
POBox A456 Sydney South NSW 1235<br />
130 Elizabeth Street<br />
SYDNEY NSW Phone (02) 9367 7100 Fax (02) 9367 7102
Statement by Directors<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
In our opinion, the attached financial statements for the year ended 30 June <strong>2003</strong> give a true and fair view of the matters<br />
required by the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997.<br />
In our opinion, at the date of this statement, there are reasonable grounds to believe that the Commission will be able<br />
to pay its debts as and when they become due and payable.<br />
Nick Evers<br />
Ken Boundy<br />
Chairman<br />
Managing Director<br />
15 August <strong>2003</strong> 15 August <strong>2003</strong><br />
67
Statement of Financial Performance<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
Notes $’000 $’000<br />
Revenue<br />
Revenue from ordinary activities<br />
Revenues from government 4a 99,926 97,906<br />
Advertising 4b 11,793 12,443<br />
Goods and Services 4c 271 391<br />
Industry contribution 4d 7,886 9,239<br />
Interest 4e 1,330 1,101<br />
Net foreign exchange gains 4 f 115 -<br />
Revenue from sale of assets 4g 9 33<br />
Other 4h 534 1,171<br />
Revenue from ordinary activities 121,864 122,284<br />
Expense<br />
Expenses for ordinary activities<br />
Employees 5a 22,662 26,765<br />
Suppliers 5b 88,806 87,592<br />
Depreciation and amortisation 5c 2,809 1,603<br />
Write-down of assets 5d 15 121<br />
Value of assets sold 4g 28 95<br />
Net foreign exchange losses 5e - 230<br />
Other 3,395 4,159<br />
Expenses from ordinary activities 117,715 120,565<br />
Net surplus 4,149 1,719<br />
Net credit/(debit) to asset revaluation reserve 78 5<br />
Total revenues, expenses and valuation adjustments recognised directly in equity 78 5<br />
Total changes in equity other than those resulting from transactions with<br />
owners as owners 4,227 1,724<br />
The above statement should be read in conjunction with the accompanying notes<br />
68
Statement of Financial Position<br />
As at 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
Notes $’000 $’000<br />
Assets<br />
Financial assets<br />
Cash 6a 2,797 11,547<br />
Receivables 6b 13,610 4,663<br />
Investments 6d 220 235<br />
Other 6c 1,239 956<br />
Total financial assets 17,866 17,401<br />
Non-financial assets<br />
Plant & equipment 7a & b 1,437 1,976<br />
Intangibles 7a & b 2,718 3,800<br />
Total non-financial assets 4,155 5,776<br />
Total assets 22,021 23,177<br />
Liabilities<br />
Provisions<br />
Capital use charge 1.5 & 8a 388 172<br />
Employees 8b 3,026 3,550<br />
Total provisions 3,414 3,722<br />
Payables<br />
Suppliers 8c 9,085 12,929<br />
Other 8d 656 879<br />
Total payables 9,741 13,808<br />
Total liabilities 13,155 17,530<br />
NET ASSETS 8,866 5,647<br />
Equity<br />
Reserves 9 642 563<br />
Accumulated surplus 9 8,224 5,084<br />
Total equity 8,866 5,647<br />
Current assets 17,866 17,401<br />
Non-current assets 4,155 5,776<br />
Current liabilities 12,197 16,429<br />
Non-current liabilities 959 1,101<br />
The above statement should be read in conjunction with the accompanying notes<br />
69
Statement of Cash Flows<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
Notes $’000 $’000<br />
Operating Activities<br />
Cash received<br />
Goods and Services 21,113 23,305<br />
Appropriations 89,926 97,906<br />
Interest 1,330 1,101<br />
Total cash received 112,369 122,312<br />
Cash used<br />
Employees (23,187) (28,095)<br />
Suppliers (92,467) (85,456)<br />
Other (3,369) (4,286)<br />
GST paid to ATO (27) (321)<br />
Total cash used (119,050) (118,158)<br />
Net cash from / (used by) operating activities 10b (6,681) 4,154<br />
Investing Activities<br />
Cash received<br />
Proceeds from sales of property, plant and equipment 9 33<br />
Total cash received 9 33<br />
Cash used<br />
Purchase of property, plant and equipment (259) (289)<br />
Purchase of software and intangibles (1,026) (1,894)<br />
Purchase of equity instrument - (150)<br />
Total cash used (1,285) (2,333)<br />
Net cash from / (used by) investing activities (1,276) (2,300)<br />
Financing Activities<br />
Cash Used<br />
Capital use charge paid (793) (587)<br />
Total cash used (793) (587)<br />
Net cash from / (used by) financing activities (793) (587)<br />
Net increase / (decrease) in cash held (8,750) 1,267<br />
Cash at the beginning of the reporting period 11,547 10,280<br />
Cash at the end of the reporting period 10a 2,797 11,547<br />
The above statement should be read in conjunction with the accompanying notes<br />
70
Schedule of Commitments<br />
As at 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
Notes $’000 $’000<br />
By Type<br />
Other Commitments<br />
Operating leases 1 10,432 12,024<br />
Other commitments 2 60,235 65,171<br />
Total commitments payable 70,667 77,195<br />
Commitments Receivable 3 (620) (600)<br />
Net commitments 70,047 76,595<br />
By Maturity<br />
Operating lease commitments<br />
One year or less 3,649 4,275<br />
From one to five years 4,214 5,168<br />
Over five years 2,569 2,581<br />
10,432 12,024<br />
NB: Commitments are GST inclusive where relevant.<br />
1 Operating leases comprise of leases for office accommodation and computer leases.<br />
2 Other commitments comprise of amounts payable under project agreements in respect of which the recipient is yet to either perform the services required<br />
or meet eligibility conditions.<br />
3 Commitments receivable comprises consumption tax recoverable.<br />
The above schedule should be read in conjunction with the accompanying notes<br />
71
Schedule of Contingencies<br />
As at 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
There were no known contingencies as at 30 June, <strong>2003</strong>.<br />
The above schedule should be read in conjunction with the accompanying notes<br />
72
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
Note<br />
Description<br />
1 Summary of significant accounting policies<br />
2 <strong>Report</strong>ing of Outcomes<br />
3 Economic dependency<br />
4 Operating revenues<br />
5 Operating expenses<br />
6 Financial assets<br />
7 Non-financial assets<br />
8 Provisions and payables<br />
9 Equity<br />
10 Cash flow reconciliation<br />
11 Remuneration of directors<br />
12 Remuneration of officers<br />
13 Remuneration of auditors<br />
14 Average Staffing level<br />
15 Financial instruments<br />
16 Contingent liabilities and assets<br />
73
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
Note 1 Summary of significant accounting policies<br />
1.1 Basis of accounting<br />
The financial statements are required by clause 1 (b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997<br />
and are a general purpose financial report.<br />
The statements have been prepared in accordance with:<br />
• Finance Minister’s Orders (being the Commonwealth Authorities and Companies (Financial Statements for reporting periods<br />
ending on or after 30 June <strong>2003</strong>) Orders);<br />
• <strong>Australia</strong>n Accounting Standards and Accounting Interpretations issued by the <strong>Australia</strong>n Accounting Standards Board; and<br />
• Consensus Views of the Urgent Issues Group.<br />
The financial statements have been prepared on an accrual basis and are in accordance with historical cost convention, except<br />
for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices<br />
on the results or on the financial position of the Commission.<br />
Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future<br />
economic benefits will flow and the amounts of the assets or liabilities can be reliably measured.<br />
Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow or<br />
consumption or loss of economic benefits has occurred and can be reliably measured.<br />
1.2 Changes in accounting policy<br />
The accounting policies used in the preparation of these financial statements are consistent with those used in 2001-<strong>2002</strong>,<br />
except in respect of:<br />
• Measurement of certain employee benefits at nominal amounts (refer to Note 1.6);<br />
• The initial revaluation of property plant and equipment on a fair value basis (refer to Note 1.10); and<br />
• The imposition of an impairment test for non-current assets carried at cost (refer to Note 1.10 and 1.11).<br />
1.3 <strong>Report</strong>ing by outcomes<br />
A comparison of Budget and Actual figures by outcome specified in the Appropriation Acts relevant to the Commission is<br />
presented in Note 2. Any intra-government costs included in the figure ‘net cost to Budget outcomes’ are eliminated in<br />
calculating the actual budget outcome for the Government overall.<br />
1.4 Revenue<br />
The revenues described in this Note are revenues relating to the core operating activities of the Commission.<br />
Revenue from the sale of goods is recognised upon the delivery of goods to the customers.<br />
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.<br />
Revenue from the disposal of non-current assets is recognised when control of the assets has passed to the buyer.<br />
Revenue from rendering of services is recognised by reference to the stage of completion of contracts or other agreements to<br />
provide services.The stage of completion is determined according to the proportion that costs incurred to date bear to the<br />
estimated total costs of the transaction.<br />
Revenue from Government – Output Appropriations<br />
The full amount of the appropriation for departmental outputs for the year is recognised as revenue.<br />
Resources Received Free of Charge<br />
Services received free of charge are recognised as revenue when and only when a fair value can be reliably determined and<br />
the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.<br />
Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset<br />
qualifies for recognition.<br />
74
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
1.5 Transactions by the Government as Owner<br />
Equity Injections<br />
Amounts appropriated by the Parliament as equity injections are recognised as ‘contributed equity’ in accordance with the<br />
Finance Minister’s Orders.<br />
Capital Use Charge<br />
A Capital Use Charge is imposed by the Government on the net assets of the Commission.The Charge is accounted for as a<br />
dividend to Government.<br />
In accordance with the recommendations of a review of Budget Estimates and Framework, the Government has decided that<br />
the Charge will not operate after 30 June <strong>2003</strong>.Therefore, the amount of the charge payable in respect of <strong>2003</strong> is the amount<br />
appropriated (<strong>2002</strong>: 11% of adjusted net assets).<br />
1.6 Employee benefits<br />
Benefits<br />
Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.<br />
Liabilities for wages and salaries (including non-monetary benefits) and annual leave are measured at their nominal amounts.<br />
Other employee benefits expected to be settled within 12 months of the reporting date are also measured at their<br />
nominal amounts.<br />
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.This is a change in<br />
accounting policy from last year required by initial application of a new Accounting Standard AASB 1028 from 1 July <strong>2002</strong>.<br />
All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in<br />
respect of services provided by employees up to the reporting date.<br />
Leave<br />
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for<br />
sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is<br />
estimated to be less than the annual entitlement for sick leave.<br />
The leave liabilities are calculated on the basis of employees’ remuneration, including the Commission’s employer<br />
superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on<br />
termination.<br />
The liability for long service leave has been determined by reference to the present value of the estimated future cash flows to<br />
be made in respect of all employees at 30 June <strong>2003</strong>.The estimate of the present value of the liability takes into account<br />
attrition rates and pay increases through promotion and inflation.<br />
Separation and redundancy<br />
Provision is made for separation and redundancy benefit payments in cases where positions have been formally identified<br />
as excess to requirements, and a reliable estimate of the amount payable, which is consistent with local requirements, can<br />
be determined.<br />
Superannuation<br />
<strong>Australia</strong><br />
Employees of the Commission are members of the Commonwealth Superannuation Scheme and the Public Sector<br />
Superannuation Scheme.The liability for their superannuation benefits is recognised in the financial statements of the<br />
Commonwealth and is settled by the Commonwealth in due course.<br />
The Commission makes employer contributions to the Commonwealth at rates determined by the actuary to be sufficient to<br />
meet the cost to the Commonwealth of the superannuation entitlements of the Commission’s employees.<br />
The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.<br />
The contribution rate for the Commission as a Group 2 Authority was 18.9% (2001/02: 7.1%) – Commonwealth<br />
Superannuation Scheme, 10.8% (2001/02: 9.7%) – Public Sector Scheme, of salaries in <strong>2002</strong>/03. In addition, the Commission<br />
remitted Employer Productivity Superannuation Contributions to ComSuper for all employees.The contribution rate is variable<br />
and banded according to earnings ranging from 2% to 3% (2001/02: 2% to 3%) of salaries in <strong>2002</strong>/03.<br />
75
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
Asia<br />
In accordance with local regulations the Commission provides superannuation for its locally engaged staff in Hong Kong with<br />
HSBC Life (International).The contribution rate is 11.5 % of salaries in <strong>2002</strong>/03 (2001/02, 11.5%) for staff who joined before 1<br />
December, 2000.The contribution rate is 5% of salaries up to a maximum contribution of HK$1,000 per month in <strong>2002</strong>/03 for<br />
those staff who joined after 1 December, 2000 under the new mandatory provident fund regulations.<br />
In Malaysia the Commission provided superannuation for its locally engaged staff with the Employee Provident Fund where the<br />
contribution rate is 12% of salaries in <strong>2002</strong>/03 (2001/02, 12%).<br />
In Singapore the Commission provided superannuation for its locally engaged staff with the Central Provident Fund where the<br />
contribution rate is 16% of salaries up to a salary ceiling of S$6,000 per month in <strong>2002</strong>/03 (2001/02, 20%).<br />
In Korea the Commission provided superannuation for its locally engaged staff with funds run by local banks, the contribution<br />
rate is 16% of salaries in <strong>2002</strong>/03 (2001/02, 14.5%).<br />
In Taiwan the Commission provided superannuation for its locally engaged staff with HSBC Life (International) Ltd where the<br />
contribution rate is 8% of salaries in <strong>2002</strong>/03 (2001/02, 8%).<br />
In Thailand, superannuation is not mandatory, however the Commission does include 3% in the staff’s salary. Once<br />
superannuation does become mandatory, the 3% will be contributed to the chosen body.<br />
In China the Commission provided superannuation for its locally engaged staff with the local official agency FESCO where the<br />
monthly contribution is HKD 2,860 per staff member in <strong>2002</strong>/03 (2001/02 HKD 2,470).<br />
In Japan the Commission accrued retirement benefit of 50% of the latest base salary times number of years of service for its<br />
locally engaged staff.<br />
America<br />
The Commission provides an optional employee retirement benefit for its locally engaged staff in Los Angeles with Mutual of<br />
America.The ATC matches employee contribution up to a maximum of 3% of gross salary in <strong>2002</strong>/03 (2001/02, 3%) and an<br />
annual limit of US$ 8,000 for employees less than 50 years of age. For employees who will be 50 years of age or older, the<br />
limit is US$ 9,000 per annum.<br />
These limits include both employer and employee contributions.<br />
Europe<br />
For United Kingdom, in accordance with locally engaged terms and conditions of employment the Commission provides a<br />
group personal pension scheme for its locally engaged staff in London with Standard Life Assurance Co.The contribution rate is<br />
variable and banded according to age and earnings ranging from 4% to 18% of salaries in <strong>2002</strong>/03 (2001/02, 4% to 18%).<br />
In Germany the Commission contributed an inclusive social amount to the statutory insurance government fund for its locally<br />
engaged staff, the Commission matches staff contributions on a 1:1 basis.The contribution rate is not separately nominated.<br />
New Zealand<br />
In New Zealand, there is no superannuation contribution requirement for locally engaged staff.<br />
1.7 Leases<br />
A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks<br />
and benefits incidental to ownership of leased non-current assets, and operating leases, under which the lessor effectively<br />
retains substantially all such risks and benefits.<br />
The Commission has not entered into any finance leases.<br />
Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the leased<br />
assets.<br />
1.8 Cash<br />
Where appropriate, monies not immediately required by the Commission are invested in an approved manner in accordance<br />
with section 18 of the Commonwealth Authorities and Companies Act 1997.<br />
Cash means notes and coins held and any deposits held at call with a bank or financial institution and investments in money<br />
market instruments.<br />
76
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
1.9 Financial instruments<br />
Accounting policies for financial instruments are stated at note 15.<br />
1.10 Property, plant and equipment<br />
Asset recognition threshold<br />
Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for<br />
purchases costing less than $5,000, which are expended in the year of acquisition (other than where they form part of a group<br />
of similar items which are significant in total).<br />
Revaluations<br />
Plant and equipment are carried at valuation. Revaluations undertaken up to 30 June <strong>2002</strong> were done on a deprival basis;<br />
revaluations since that date are at fair value.This change in accounting policy is required by <strong>Australia</strong>n Accounting Standard<br />
AASB 1041 Revaluation of Non-Current Assets.<br />
Leasehold improvement and Furniture and fittings were revalued in <strong>2002</strong>-03.The financial effect for <strong>2002</strong>-03 of this change in<br />
policy relates to those assets to be recognised at fair value at 30 June <strong>2003</strong>.The financial effect by class for the assets class<br />
revalued is as follows:<br />
Asset Class Adjustment $000 Contra Account<br />
Leasehold Improvements 188 Asset Revaluation Reserve<br />
Furniture and fittings (109) Asset Revaluation Reserve<br />
Total financial effect was a net credit to the asset revaluation reserve of $ 78,988.<br />
Accounting Standard AAS 6 Accounting Policies requires, where practicable, presentation of the information that would have<br />
been disclosed in the 2001-02 Statements had the new accounting policy always been applied. It is impracticable to present<br />
this information.<br />
Frequency<br />
Plant and equipment are each revalued progressively by asset type in successive three-year cycles as follows:<br />
• leasehold improvements were revalued in full in 1998-99 and in <strong>2002</strong>-03;<br />
• plant and equipment (P&E) assets were initially revalued during the financial year 1998-99 by type of asset. In 2001-02 all<br />
information technology assets were revalued;<br />
• in 2000-01, other equipment was revalued; and<br />
• in <strong>2002</strong>-03, furniture and fittings were revalued.<br />
Assets in each class acquired after the commencement of a progressive revaluation cycle are not captured by the progressive<br />
revaluation then in progress.<br />
Conduct<br />
All valuations are conducted by an independent qualified valuer.<br />
Recoverable amount test<br />
From 1 July <strong>2002</strong>, Schedule 1 no longer requires the application of the recoverable amount test in AAS 10 Recoverable<br />
Amount of Non-current Assets to the assets of the Commission when the primary purpose of the asset is not the generation of<br />
net cash inflows.<br />
No property plant and equipment assets have been written down to recoverable amount per AAS 10. Accordingly, the change<br />
in policy has had no financial effect.<br />
Depreciation and Amortisation<br />
Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful<br />
lives to the Commission using, in all cases, the straight line method of depreciation.<br />
Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements<br />
or the expected unexpired period of the lease.<br />
77
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are<br />
recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change<br />
in prices only when assets are revalued.<br />
Depreciation and amortisation rates applying to each class of depreciable asset are based on the following useful lives:<br />
<strong>2003</strong> <strong>2002</strong><br />
Leasehold Improvements Lease term Lease term<br />
Furniture and Fittings 3 to 10 years 3 to 10 years<br />
Computer Equipment 3 to 5 years 3 to 5 years<br />
Motor Vehicles and Other Equipment 3 to 10 years 3 to 10 years<br />
The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 7.<br />
1.11 Intangible assets<br />
The Commission’s intangibles comprise internally developed software and purchase of licensed software for internal use.These<br />
assets are carried at cost.<br />
From 1 July <strong>2002</strong>, Schedule 1 no longer requires the application of the recoverable amount test in AAS 10 Recoverable Amount<br />
of Non-current Assets to the assets of the Commission when the primary purpose of the asset is not the generation of net cash<br />
inflows.<br />
However Schedule 1 now requires such assets, if carried on the cost basis, to be assessed for indications of impairment.The<br />
carrying amount of impaired assets must be written down to the higher of its net market selling price or depreciated<br />
replacement cost.<br />
All software assets were assessed for impairment as at 1 July <strong>2002</strong>. None were found to be impaired.<br />
Intangible assets are amortised on a straight-line basis over their anticipated useful lives.<br />
Useful lives are:<br />
<strong>2003</strong> <strong>2002</strong><br />
Software 2 to 5 years 3 to 5 years<br />
Trade Marks 10 years 10 years<br />
1.12 Taxation<br />
The Commission is exempt from all forms of taxation except Fringe Benefits Tax and the Goods and Services Tax (GST).<br />
Revenues, expenses and assets are recognised net of GST:<br />
• except where the amount of GST incurred is not recoverable from the <strong>Australia</strong>n Taxation Office; and<br />
• except for receivables and payables.<br />
The Commission is not subject to exemption from any foreign taxation laws relative to its overseas operations.<br />
78<br />
1.13 Foreign currency<br />
Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign<br />
currency receivables and payables are translated at the exchange rate current as at balance date and any exchange differences<br />
are brought to account in the Statement of Financial Performance.<br />
1.14 Insurance<br />
The Commission has insured for risks through the Government’s insurable risk managed fund, called ‘Comcover’. Workers<br />
compensation is insured through the Government’s Comcare <strong>Australia</strong>.<br />
1.15 Comparative figures<br />
Comparative figures have been adjusted to conform with changes in presentation in these financial statements where required.
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
1.16 Rounding<br />
Amounts are rounded to the nearest $1,000 except in relation to the following:<br />
• remuneration of directors;<br />
• remuneration of officers (other than directors); and<br />
• remuneration of auditors.<br />
Note 2. <strong>Report</strong>ing of Outcomes<br />
The Commission operates in <strong>Australia</strong> and overseas to promote tourism to <strong>Australia</strong>. Its revenues are sourced primarily within<br />
<strong>Australia</strong> via Parliamentary appropriations and industry revenues.The Commission’s activities to promote <strong>Australia</strong> as an<br />
international tourist destination are primarily focused overseas (the majority of expenditures are made via the Commission’s<br />
international offices in Europe, Asia, America and New Zealand).<br />
2a Outcomes of the Commission<br />
The Commission is structured to meet one outcome:<br />
Outcome 1: To promote <strong>Australia</strong> as a destination for visitors from all around the world and to win a greater share of the<br />
global tourism market.The Commission’s statutory objectives are:<br />
• to increase the number of visitors to <strong>Australia</strong> from overseas;<br />
• to maximise the benefits to <strong>Australia</strong> from overseas visitors; and<br />
• to promote the principles of ecologically sustainable development and to raise awareness of the social and cultural<br />
impacts of international tourism in <strong>Australia</strong>.<br />
Two Output Groups are identified for this outcome:<br />
Output Group 1: Consumer Marketing – The ATC promotes <strong>Australia</strong> in a number of innovative ways: television, cinema, print<br />
and outdoor advertising, the internet, media relations, public relations and by hosting international journalists in <strong>Australia</strong>.The<br />
ATC also provides information for travellers in both printed and electronic form.<br />
Output Group 2: Trade Marketing – The ATC facilitates the communication of timely, relevant international trade market<br />
intelligence to the inbound industry; provides effective opportunities for industry participation in trade events; and undertakes<br />
product and segment development in conjunction with ATC regions, State and Territory tourism organisations and all sectors of<br />
the industry.<br />
2b Net Cost of Outcome Delivery<br />
Outcome 1<br />
<strong>2003</strong> <strong>2002</strong><br />
$000 $000<br />
Total Departmental expenses 117,706 120,532<br />
Cost recovered from provision of goods and services to the non-government sector 271 391<br />
Total Department costs recovered 271 391<br />
Other external revenues<br />
Advertising 11,793 12,443<br />
Industry contribution 7,886 9,239<br />
Interest 1,330 1,101<br />
Net foreign exchange gains 115 -<br />
Other 534 1,171<br />
Total Departmental 21,658 23,954<br />
Total other external revenues 21,658 23,954<br />
Net cost of outcome 95,777 96,187<br />
79
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
2c Agency Revenues and Expenses by Output Groups<br />
Output Group 1 Output Group 2 Non-Specific Total<br />
<strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong><br />
$000 $000 $000 $000 $000 $000 $000 $000<br />
Operating expenses<br />
Employees 18,177 21,434 4,227 5,299 - - 22,404 26,733<br />
Suppliers & Other Expenses 75,063 73,402 17,396 18,673 - - 92,459 92,075<br />
Depreciation and Amortisation 2,388 1,343 421 260 - - 2,809 1,603<br />
Write-down of assets - - - - 15 121 15 121<br />
Total operating expenses 95,628 96,179 22,044 24,232 15 121 117,687 120,532<br />
Funded by :<br />
Revenue from Government 73,847 75,768 26,079 22,138 - - 99,926 97,906<br />
Advertising 11,643 12,287 150 156 - - 11,793 12,443<br />
Sale of goods and services 76 344 195 47 - - 271 391<br />
Industry contribution - - 7,886 9,239 - - 7,886 9,239<br />
Other non-taxation revenues 1,349 379 509 1,242 121 651 1,979 2,272<br />
Total operating revenues 86,915 88,778 34,819 32,822 121 651 121,855 122,251<br />
Note 3 Economic dependency<br />
The Commission was established by the <strong>Australia</strong>n Tourist Commission Act 1987 and is controlled by the Commonwealth<br />
of <strong>Australia</strong>.<br />
The Commission is dependent on appropriations from the Parliament of the Commonwealth for its continued existence<br />
and ability to carry out normal activities.<br />
80
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
Note 4 Operating Revenues<br />
4a Revenues from Government<br />
Appropriations for outputs 99,926 97,906<br />
Total revenues from government 99,926 97,906<br />
4b Advertising<br />
Advertising income 11,793 12,443<br />
4c Sales of goods and services<br />
Goods 36 217<br />
Services 235 174<br />
Total sales of goods and services 271 391<br />
Provision of goods to:<br />
Related entities - -<br />
External entities 36 217<br />
Total Sales of goods 36 217<br />
Rendering of services to:<br />
Related entities - -<br />
External entities 235 235<br />
Total rendering of services 235 235<br />
Cost of sales of goods 28 188<br />
4d Industry contribution<br />
Industry contributions 1 7,886 9,239<br />
4e Interest Revenue<br />
Deposits 1,330 1,101<br />
Total Interest revenue 1,330 1,101<br />
4f<br />
Net foreign exchange gains<br />
Non-speculative 115 -<br />
Total 115 -<br />
4g Net gain / (loss) from sale of assets<br />
Plant and equipment<br />
Proceeds from disposal 9 33<br />
Net book value of assets disposed (28) (95)<br />
Total net gain / (loss) from disposal of assets (19) (62)<br />
4h Other revenue<br />
Office sub-tenancies 248 293<br />
Tax Provision written back - 651<br />
Other 286 227<br />
Total 534 1,171<br />
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<br />
marketing programs were again undertaken.Through these programs the industry supplements funds provided by the <strong>Australia</strong>n Tourist Commission for product development,<br />
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<br />
industry contributions for the <strong>Australia</strong>n Tourist Commission, but are in addition to it.<br />
81
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
5 Operating Expenses<br />
5a Employees<br />
Wages and Salaries 18,191 18,574<br />
Superannuation 1,163 1,339<br />
Leave and other entitlements 1,303 1,764<br />
Separation and redundancy payments 759 2,278<br />
Other employee benefits 1,214 2,778<br />
Total employee benefits expense 22,630 26,733<br />
Workers compensation premiums 32 32<br />
Total employee expenses 22,662 26,765<br />
5b Suppliers<br />
Goods and services from external entities:<br />
Advertising 49,320 44,869<br />
Promotion and publicity 12,067 11,888<br />
Films, publications and distribution 8,997 10,716<br />
Information Systems and Telecommunications 5,241 6,193<br />
Research, service fees and travel 8,857 9,327<br />
Operating lease rentals * 4,324 4,599<br />
Total supplier expenses 88,806 87,592<br />
* These comprise minimum lease payments only<br />
5c Depreciation and amortisation<br />
Infrastructure, plant and equipment 704 901<br />
Software (includes websites) 2,078 675<br />
Trade Mark 27 27<br />
Total depreciation and amortisation 2,809 1,603<br />
5d Write-down of assets<br />
Non-Financial assets:<br />
Plant and equipment - 21<br />
Financial assets:<br />
Investment 15 100<br />
Total write-down of assets 15 121<br />
5e Net foreign exchange losses<br />
Non-speculative - 230<br />
Total - 230<br />
82
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
6 Financial Assets<br />
6a Cash<br />
The <strong>Australia</strong>n dollar equivalent balance of cash held by the Commission<br />
can be summarised by currency, as follows:<br />
<strong>Australia</strong>n dollars 2,367 7,971<br />
New Zealand dollars 123 114<br />
Euro 55 934<br />
Hong Kong dollars 19 24<br />
Korean Won 1 121<br />
Japanese yen 18 454<br />
Great Britain pounds 115 511<br />
United States dollars 46 1,122<br />
Singapore dollars 18 124<br />
Taiwanese dollars 6 79<br />
Other 29 93<br />
2,797 11,547<br />
Balance of cash as at 30 June shown in the Statement of Cash Flows 2,797 11,547<br />
6b Receivables<br />
Goods and Services 3,234 3,992<br />
Less: Provision for doubtful debts (211) (211)<br />
3,023 3,781<br />
Appropriations receivable 10,000 -<br />
Interest receivable 94 77<br />
Deposits and advances 493 805<br />
Total receivables (net) 13,610 4,663<br />
All receivables are current assets.<br />
Receivables (goods and services gross) are aged as follows:<br />
The Commission’s normal terms of trade are 30 days.<br />
Not overdue 2,317 2,149<br />
Overdue by:<br />
less than 30 days 645 1,390<br />
30 to 60 days 131 261<br />
60 to 90 days 94 70<br />
more than 90 days 47 122<br />
917 1,843<br />
Total receivables (gross) 3,234 3,992<br />
The provision for doubtful debts is aged as follows:<br />
Overdue by :<br />
less than 30 days - -<br />
30 to 60 days 70 19<br />
60 to 90 days 94 70<br />
more than 90 days 47 122<br />
Total provision for doubtful debts 211 211<br />
With respect to trade debtors, debts considered to be irrecoverable have been written off during the period to the amount<br />
of $30,838 (2001/02 $29,418). 83
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
6c Other financial assets<br />
Prepaid expenses 1,239 956<br />
Total 1,239 956<br />
6d Investments<br />
Shares in other companies – unlisted (at cost) 400 400<br />
Less: Provision for diminution in value (180) (165)<br />
Net Investments 220 235<br />
Investments are categorised as follows:<br />
Current 400 400<br />
Non-current - -<br />
Total Investments 400 400<br />
The Commission holds a 11.1% interest in <strong>Australia</strong>n <strong>Tourism</strong> Data Warehouse Pty Limited (ATDW), which is carried at<br />
cost less provision for diminution in value.The provision is based on the estimated statement of financial position of ATDW<br />
as at 30/6/<strong>2003</strong>. ATDW’s principal activity is the development of a database for <strong>Australia</strong>n <strong>Tourism</strong> Products.<br />
7 Non-Financial Assets<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
7a Plant, equipment and intangibles<br />
Computer & office equipment – at cost 351 122<br />
– at valuation 2,455 2,856<br />
Accumulated depreciation (2,330) (2,462)<br />
476 516<br />
Furniture & fittings – at cost - 75<br />
– at valuation 1,138 1,337<br />
Accumulated depreciation (938) (953)<br />
200 459<br />
Leasehold improvements – at cost - 744<br />
– at valuation 3,666 2,164<br />
Accumulated depreciation (2,911) (1,928)<br />
755 980<br />
Motor vehicles – at cost 157 188<br />
Accumulated depreciation (150) (167)<br />
7 21<br />
Software (includes websites) – at cost 5,618 4,626<br />
Amortisation (3,018) (971)<br />
2,600 3,655<br />
84
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
7a Plant, equipment and intangibles continued<br />
Trade marks – at cost 272 272<br />
Amortisation (155) (127)<br />
117 145<br />
Total plant, equipment and intangibles (non-current) 4,155 5,776<br />
All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note 1. In <strong>2002</strong>-03,<br />
the revaluations were conducted by an independent valuer, the <strong>Australia</strong>n Valuation Office.<br />
7b Analysis of plant, equipment & intangibles<br />
TABLE A – Reconciliation of the opening and closing balances of property, plant and equipment and intangibles<br />
Item Total Plant & Equipment Software Trade Marks Total<br />
$’000 $’000 $’000 $’000<br />
As at 1 July <strong>2002</strong><br />
Gross book value 7,486 4,626 272 12,384<br />
Accumulated depreciation/amortisation (5,510) (971) (127) (6,608)<br />
Net book value 1,976 3,655 145 5,776<br />
Additions By purchase 259 1,026 - 1,285<br />
Net revaluation increment/decrement 79 - - 79<br />
Depreciation/amortisation expense (704) (2,078) (27) (2,809)<br />
Disposals (28) - - (28)<br />
Other movement (145) (3) - (148)<br />
As at 1 July <strong>2003</strong><br />
Gross book value 7,766 5,619 272 13,657<br />
Accumulated depreciation/amortisation (6,329) (3,019) (154) 9,502<br />
Net book value 1,437 2,600 118 4,155<br />
Net book value at 30 June <strong>2003</strong> 1,437 2,600 118 4,155<br />
Net book value at 1 July <strong>2002</strong> 1,976 3,655 145 5,776<br />
TABLE B – Assets at valuation<br />
Item Total Plant & Equipment Software Trade Marks Total<br />
$’000 $’000 $’000 $’000<br />
As at 30 June <strong>2003</strong><br />
Gross value 7,415 - - 7,415<br />
Accumulated Depreciation/Amortisation (6,171) - - (6,171)<br />
Net book value 1,244 1,244<br />
As at 30 June <strong>2002</strong><br />
Gross value 6,357 - - 6,357<br />
Accumulated Depreciation/Amortisation (5,220) - - (5,220)<br />
Net book value 1,137 - - 1,137<br />
85
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
TABLE C – Assets under construction<br />
Item Total Plant & Equipment Software Trade Marks Total<br />
$’000 $’000 $’000 $’000<br />
Gross value at 30 June <strong>2003</strong> 90 881 - 971<br />
Gross value at 30 June <strong>2002</strong> 62 300 - 362<br />
8 Provisions and Payables<br />
Provisions<br />
8a Capital Use Charge Provision<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
Capital Use Charge 388 172<br />
Balance owing 1 July 172 427<br />
Capital Use Charge provided for during the period 1,009 332<br />
Capital Use Charge paid (793) (587)<br />
Balance owing 30 June 388 172<br />
The Capital Use Charge provision is a current liability<br />
8b Employee Provision<br />
Salaries & wages 903 883<br />
Leave 2,075 2,461<br />
Superannuation 16 60<br />
Separation and redundancy 32 146<br />
Aggregate employee entitlement liability 3,026 3,550<br />
Current 2,082 2,449<br />
Non-current 944 1,101<br />
3,026 3,550<br />
Payables<br />
8c Suppliers Payables<br />
Trade creditors & accruals 9,085 12,929<br />
Total supplier payables 9,085 12,929<br />
All supplier payables are current.<br />
8d Other Payables<br />
Revenue received in advance 656 879<br />
Total other payables 656 879<br />
All other payables are current.<br />
86
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
9 Equity<br />
Item Accumulated Asset Other Total TOTAL<br />
Results revaluation reserve Contributed EQUITY<br />
reserve (General Reserve) Equity<br />
<strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong><br />
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000<br />
Opening Balance 1 July <strong>2002</strong> 5,084 3,697 367 475 196 83 563 558 5,647 4,255<br />
Net surplus/ deficit 4,149 1,719 - - - - - - 4,149 1,719<br />
Net revaluation increment/(decrement) - - 75 5 4 - 79 5 79 5<br />
Transfers to/(from) reserves - - - (113) - 113 - - - -<br />
Transactions with owner:<br />
Capital use charge (1,009) (332) - - - - - - (1,009) (332)<br />
Changes in accounting policies - - - - - - - - - -<br />
Closing Balance 30 June <strong>2003</strong> attributable<br />
to the Commonwealth 8,224 5,084 442 367 200 196 642 563 8,866 5,647<br />
The net revaluation increase in the asset revaluation reserve comprises:<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
• Revaluation increment/(decrement) – computer and office equipment - 5<br />
• Revaluation increment – furniture and fittings (109) -<br />
• Revaluation increment – leasehold improvements 188 -<br />
79 5<br />
The Asset Revaluation Reserve contains unrealised gains from the revaluation of assets. On realisation, these amounts are transferred to the General Reserve.<br />
87
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
10 Cash Flow Reconciliation<br />
10a Reconciliation of cash<br />
Cash balance comprises:<br />
Cash at bank 1,737 3,315<br />
Deposits 1,060 8,232<br />
Total cash 2,797 11,547<br />
10b Reconciliation of Operating surplus (deficit) to net cash from operating activities:<br />
Reconciliation of operating surplus to net cash from operating activities<br />
Operating surplus before extraordinary items 4,149 1,719<br />
Non-Cash items<br />
Depreciation & amortisation 2,809 1,603<br />
Fixed asset currency re-translation 146 187<br />
Net write down of non-current assets 15 21<br />
Loss on disposal of assets 19 95<br />
Changes in assets & liabilities:<br />
(Increase)/decrease in receivables 1,147 215<br />
(Increase)/decrease in other assets (376) 707<br />
(Increase)/decrease in appropriation receivable (10,000) -<br />
Increase/(decrease) in supplier payables (4,059) 1,822<br />
Increase/(decrease) in employee provisions (524) (1,362)<br />
Increase/(decrease) in other payables (223) (598)<br />
Increase/(decrease) in CUC Payable 216 (255)<br />
Net cash from/(used by) operating activities (6,681) 4,154<br />
11 Remuneration of Directors<br />
$ $<br />
Aggregate amount of superannuation payments in connection<br />
with the retirement of directors 21,028 36,819<br />
Other remuneration received or due and receivable by directors of the Commission 497,920 466,351<br />
Total remuneration received or due and receivable by directors of the Commission 518,948 503,170<br />
Remuneration includes accrued recreation leave and long service leave where applicable<br />
The number of directors of the Commission included in these figures is shown below<br />
in the relevant remuneration bands:<br />
Number<br />
<strong>2003</strong> <strong>2002</strong><br />
$20,001 – 30,000 6 6<br />
$30,001 – 40,000 1 1<br />
$60,001 – 70,000 1 1<br />
$210,001 – 220,000 - 1<br />
$260,001 – 270,000 1 -<br />
Total Number of Directors of the Commission 9 9<br />
88
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
<strong>2003</strong> <strong>2002</strong><br />
$ $<br />
12 Remuneration of Officers<br />
The aggregate amount of total remuneration of officers shown below. 2,903,530 1,468,568<br />
2,903,530 1,468,568<br />
The aggregate amount of separation and redundancy payments during<br />
the year to officers shown below. 373,324 283,172<br />
Remuneration Includes accrued recreation leave and long service leave<br />
The number of officers who received or were due to receive<br />
total remuneration of $100,000 or more:<br />
Number<br />
<strong>2003</strong> <strong>2002</strong><br />
$100,001 – 110,000 2 1<br />
$110,001 – 120,000 * 4 1<br />
$120,001 – 130,000 3 2<br />
$130,001 – 140,000 - 3<br />
$140,001 – 150,000 1 -<br />
$150,001 – 160,000 * 1 1<br />
$170,001 – 180,000 1 -<br />
$200,001 – 210,000 1 1<br />
$210,001 – 220,000 1 -<br />
$220,001 – 230,000 2 -<br />
$230,001 – 240,000 - 1<br />
$240,001 – 250,000 * 2 -<br />
$400,001 – 410,000 * 1 -<br />
19 10<br />
* includes one officer who was separated or made redundant in each of these brackets<br />
The officer remuneration includes all officers concerned with or taking part in the management of the Commission during <strong>2002</strong>-03 except the Managing Director. Details in relation<br />
to the Managing Director have been incorporated into Note 11 – Director Remuneration.<br />
The increase from <strong>2002</strong> to <strong>2003</strong> reflects salary increases for several officers which resulted in their remuneration exceeding $100,000 for the first time; new officers appointed to<br />
new positions above $100,000 and four officers who were separated/ made redundant during the year.<br />
13 Remuneration of Auditors<br />
$ $<br />
Remuneration to the Auditor-General for auditing the financial<br />
statements for the reporting period. 45,225 45,024<br />
No other services were provided by the Auditor-General during the reporting period.<br />
14 Average Staffing Level<br />
Number<br />
<strong>2003</strong> <strong>2002</strong><br />
The average staffing levels for the Commission during the year were: 190 193<br />
89
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
15 Financial Instruments<br />
15a Terms, conditions and accounting policies<br />
Financial Instrument Notes Accounting Policies and Methods Nature of underlying instrument<br />
(including recognition criteria and<br />
(including significant terms & conditions<br />
measurement basis)<br />
affecting the amount, timing and<br />
certainty of cash flows)<br />
Financial assets<br />
Financial assets are recognised when<br />
control over future economic benefits is<br />
established and the amount of the benefit<br />
can be reliably measured.<br />
Cash Investments 6a Cash and investments are recognised at Temporarily surplus funds, mainly from<br />
4e their nominal amounts. Interest is credited monthly drawdowns of appropriation,<br />
to revenue as it accrues.<br />
are placed on deposit at call with the<br />
Commission’s banker. Interest is earned<br />
on the daily balance at the prevailing<br />
daily rate. Interest on deposits at call is<br />
paid at month end, interest on term<br />
deposits are paid on maturity and<br />
interest on cash is paid at month end.<br />
Receivables for 6b These receivables are recognised at the Credit terms are up to net 30 days<br />
goods & services nominal amounts due less any provision for (2001/02: 30 days).<br />
bad and doubtful debts. Provisions are made<br />
when collection of the debt is judged to be less<br />
rather than more likely.<br />
Appropriations receivable These receivables are recognised at the Balance of departmental appropriations<br />
nominal amounts due.<br />
made by the Parliament to the<br />
Commission has not been drawn<br />
down by the Commission at the<br />
reporting date.<br />
Other 6c Prepaid expenses and accrued income are Expenses relating to future period but<br />
recognised at the nominal amounts.<br />
paid during the current period are<br />
deferred to the future period.<br />
Income relating to the current period<br />
but received in the future period is<br />
recognised in the current period.<br />
Financial Liabilities<br />
Financial liabilities are recognised when a<br />
present obligation to another party is entered<br />
into and the amount of the liability can be<br />
reliably measured.<br />
Trade creditors 8c Creditors and accruals are recognised at their Settlement is usually made up to net<br />
nominal amounts, being the amounts at which 30 days (2001/02: 30 days).<br />
the liabilities will be settled.<br />
Liabilities are recognised to the extent that the<br />
goods or services have been received (and<br />
irrespective of having been invoiced).<br />
Other Payables 8d Revenues received in advance are recognised Revenue relating to a future period,<br />
at the nominal amounts.<br />
but received during the current period<br />
is deferred to the future period.<br />
90
Financial Instruments (cont.)<br />
15b Interest Rate Risk<br />
Financial Instrument Notes Floating interest Fixed interest rate Non-interest Total Weighted<br />
rate bearing Average effective<br />
1 year or less 1 to 2 years 2 to 5 years > 5 years interest rate<br />
Financial Assets (Recognised) <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong> <strong>2003</strong> <strong>2002</strong><br />
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000<br />
Cash at Bank 6a 1,730 3,307 - - - - - - - - - - 1,730 3,307 3.7 1.3<br />
Cash on Hand 6a - - - - - - - - - - 6 7 6 7 n/a n/a<br />
Receivables for goods and services 6b - - - - - - - - - - 3,516 4,586 3,516 4,663 n/a n/a<br />
Deposits at Call 6a 1,061 8,233 - - - - - - - - - - 1,061 8,233 4.7 4.7<br />
Other Debtors 6c - - - - - - - - - - 11,332 1,033 11,332 956 n/a n/a<br />
Investment 6d - - - - - - - - - - 220 235 220 235 n/a n/a<br />
Total 2,791 11,540 - - - - - - - - 15,074 5,861 17,865 17,401<br />
Total Assets 22,021 23,177<br />
Financial Liabilities<br />
Trade creditors 8c - - - - - - - - - - 9,085 12,929 9,085 12,929 n/a n/a<br />
Other payables 8d - - - - - - - - - - 656 879 656 879 n/a n/a<br />
Total - - - - - - - - - - 9,741 13,808 9,741 13,808<br />
Total Liabilities 13,155 17,530<br />
91
Notes to and forming part of the Financial Statements<br />
For the year ended 30 June <strong>2003</strong> <strong>Australia</strong>n Tourist Commission<br />
Financial Instruments continued<br />
15c Net Fair Values of Financial Assets and Liabilities<br />
<strong>2003</strong> <strong>2002</strong><br />
$’000 $’000<br />
Total Aggregate Total Aggregate<br />
carrying net fair carrying net fair<br />
amount value amount value<br />
Note $’000 $’000 $’000 $’000<br />
Financial Assets<br />
Cash at bank 6a 2,791 2,791 11,540 11,540<br />
Cash on hand 6a 6 6 7 7<br />
Receivables for goods and services 6b 3,610 3,610 4,586 4,586<br />
Appropriation receivable 10,000 10,000 - -<br />
Other receivables 6c 1,239 1,239 1,033 1,033<br />
Investment 6d 220 220 235 235<br />
17,866 17,866 17,401 17,401<br />
Financial Liabilities<br />
Trade creditors 8c 9,085 9,085 12,929 12,929<br />
Other payables 8d 656 656 879 879<br />
9,741 9,741 13,808 13,808<br />
Financial assets<br />
The net fair values of cash, deposits on call and non-interest-bearing monetary financial assets approximate their carrying<br />
amounts.<br />
Financial liabilities<br />
The net fair values for trade creditors which are short-term in nature, are approximated by their carrying amounts.<br />
15d Credit Risk Exposures<br />
The Commission’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial<br />
assets is the carrying amount of those assets as indicated in the Statement of Financial Position.<br />
The Commission has no significant exposures to any concentrations of credit risk.<br />
16 Contingent Liabilities and Assets<br />
The Commission has no contingent assets or liabilities, quantifiable or unquantifiable<br />
92
Glossary of Terms<br />
AACB Association of <strong>Australia</strong>n Convention<br />
Bureaux<br />
ADS Approved Destination Status<br />
AEI <strong>Australia</strong> Education International –<br />
AIME Asia Pacific Incentives & Meetings Expo<br />
ATMC <strong>Australia</strong>n Trade Mission to China<br />
ASCOT <strong>Australia</strong>n Standing Committee On <strong>Tourism</strong><br />
ASP<br />
Aussie Specialist Program<br />
ATA Aboriginal <strong>Tourism</strong> <strong>Australia</strong><br />
ATDW <strong>Australia</strong>n <strong>Tourism</strong> Data Warehouse<br />
ATE <strong>Australia</strong>n <strong>Tourism</strong> Exchange<br />
ATEC <strong>Australia</strong>n Tourist Export Council<br />
AWEC <strong>Australia</strong>n Wine Export Council<br />
BECA Business Events Council of <strong>Australia</strong><br />
BTAG Backpacker <strong>Tourism</strong> Advisory Group<br />
CITM China International Travel Mart<br />
DAMA Destination <strong>Australia</strong> Marketing Alliance<br />
DEST Department of Education, Science and<br />
Training<br />
DFAT Department of Foreign Affairs & Trade<br />
DITR Department of Industry,<strong>Tourism</strong> and<br />
Resources<br />
DMC Destination Management Company<br />
EIBTM European Incentive Business Travel &<br />
Meetings<br />
FIT<br />
Fully Independent Travellers<br />
ITB<br />
Internationale <strong>Tourism</strong>us Börse<br />
ITO<br />
Inbound Tour Operator<br />
ITLG Indigenous <strong>Tourism</strong> Leadership Group<br />
ITW Independent Travel World trade show<br />
IVS<br />
International Visitor Survey<br />
JAAG Japan <strong>Australia</strong> Advisory Group<br />
JAM Japan <strong>Australia</strong>n Mission<br />
JAL<br />
Japan Airlines<br />
JATA Japan Association of Travel Agents<br />
JTB<br />
Japan Travel Bureau<br />
JTIG Japan <strong>Tourism</strong> Implementation Group<br />
KDP<br />
MICE<br />
MIDT<br />
MOU<br />
NEAP<br />
NTO<br />
OGO<br />
PRIME<br />
PVI<br />
RTA<br />
RTAG<br />
SARS<br />
SIA<br />
STOs<br />
TABEE<br />
Team <strong>Australia</strong><br />
TMC<br />
TVAG<br />
VJP<br />
WTM<br />
WYSTC<br />
Key Distribution Partners<br />
Meetings, Incentives, Conventions and<br />
Exhibitions<br />
Market Intelligence Data Tracking<br />
Memorandum of Understanding<br />
Nature Ecotourism Accreditation Program<br />
National Tourist Office<br />
Office of Government Online<br />
Pacific Rim Incentives and Meetings<br />
Exchange<br />
Product Viability Indicator<br />
Regional Tourist Authority<br />
Rugby <strong>Tourism</strong> Advisory<br />
Severe Acute Respiratory Syndrome<br />
Singapore Airlines<br />
State and Territory <strong>Tourism</strong> Organisations<br />
Team <strong>Australia</strong> Business Events Educational<br />
Team <strong>Australia</strong> is a co-operative venture<br />
between participating members of the<br />
<strong>Australia</strong>n Association of Convention<br />
Bureaux (AACB) and the <strong>Australia</strong>n Tourist<br />
Commission (ATC).<br />
<strong>Tourism</strong> Ministers’ Council<br />
<strong>Tourism</strong> Visa Advisory Group<br />
Visiting Journalist Program<br />
World Travel Mart<br />
World Youth Student Travel Conference<br />
93
Index<br />
Aboriginal <strong>Tourism</strong> Segment 43<br />
Advertising and Design 40<br />
Air New Zealand 26<br />
Americas 27<br />
Application, Development and Support 54<br />
ATC Offices Worldwide 95<br />
ATC Online 7, 52<br />
ATE 25, 46<br />
Aussie Specialist Program 15, 18<br />
Backpackers <strong>Tourism</strong> Segment 44<br />
Board of Directors 58, 59<br />
Business <strong>Tourism</strong> 48<br />
Celebrate <strong>Australia</strong> 16<br />
Chairman’s <strong>Report</strong> 8<br />
China 22<br />
Corporate Governance 55<br />
Corporate Services 53<br />
Eastern Hemisphere 12<br />
Ecologically Sustainable Development 61<br />
Ecotourism Segment 43<br />
Education Segment 44<br />
Europe 29<br />
Financial Statements 68-92<br />
Food and Wine <strong>Tourism</strong> Segment 44<br />
France 29<br />
Germany 31<br />
Highlights 4<br />
Hong Kong 21<br />
India 15<br />
Indonesia 16<br />
Information Technology and Communications 54<br />
International Media 42<br />
International Visitor Arrivals 62<br />
Italy 30<br />
Japan 13<br />
Japan Airlines 13<br />
Korea 24<br />
Malaysia 17<br />
Management and Organisation Structure 60<br />
Managing Director’s <strong>Report</strong> 8<br />
Marketing Development 39<br />
Market Insights 41<br />
Middle East 33<br />
Mission Statement 2<br />
Netherlands 32<br />
New Zealand 34<br />
North and North East Asia 20<br />
Objectives and Outcomes 6<br />
Online Programs Management 49<br />
Organisational Development 50<br />
Overseas Visitor Arrivals 4<br />
Partnership Marketing 38<br />
Philippines 25<br />
Public Affairs 52<br />
Qantas 13, 24, 26-31, 34, 51<br />
Record of Board Members 57<br />
Risk Management and Administration 53<br />
Rugby World Cup 45<br />
Segment Development 43<br />
Singapore 18<br />
Singapore Airlines 22, 26, 28, 29, 31, 32<br />
South East Asia 14<br />
Switzerland 32<br />
Taiwan 23<br />
Thailand 19<br />
<strong>Tourism</strong> and Aviation Strategy 51<br />
<strong>Tourism</strong> Ambassador Program 4, 5, 13, 30, 40<br />
Trade Development 38<br />
Trade Events 46<br />
United Airlines 26<br />
United Kingdom 28<br />
Visiting Journalists Program 4, 42<br />
Western Hemisphere 26<br />
94
ATC Offices – worldwide<br />
Sydney (head office)<br />
Level 4 80 William Street<br />
Woolloomooloo NSW 2011<br />
Tel: +61 2 9360 1111<br />
Fax: +61 2 9331 6469<br />
Auckland<br />
Level 3, 125 The Strand<br />
Parnell Auckland<br />
New Zealand<br />
Tel: +64 9 915 2826<br />
Fax: +64 9 915 2881<br />
London<br />
Gemini House<br />
10-18 Putney Hill<br />
Putney London SW15 6AA<br />
United Kingdom<br />
Tel: +44 20 8780 2229<br />
Fax: +44 20 8780 1496<br />
Frankfurt<br />
Neue Mainzer Strasse 22<br />
D 60311 Frankfurt/Main<br />
Germany<br />
Tel: +49 69 2740 0622<br />
Fax: +49 69 2740 0640<br />
Los Angeles<br />
2049 Century Park East<br />
Suite 1920<br />
Los Angeles CA 90067<br />
United States of America<br />
Tel: +1 310 229 4870<br />
Fax: +1 310 552 1215<br />
Tokyo<br />
C/- <strong>Australia</strong>n Business Centre<br />
New Otani Garden Court<br />
Building 28F<br />
4-1 Kioi-cho Chiyoda-ku<br />
Tokyo 102-0094<br />
Japan<br />
Tel: +81 3 5214 0720<br />
Fax: +81 3 5214 0719<br />
Osaka<br />
OCAT Building 4F<br />
1-4-1 Minato-machi<br />
Naniwa-Ku<br />
Osaka 556-0017<br />
Japan<br />
Tel: +81 6 6635 3291<br />
Fax: +81 6 6635 3297<br />
Seoul<br />
20 fl.Youngpoong Building,<br />
33 Seorin-dong,<br />
Chongro-ku<br />
Seoul 110-752<br />
Korea<br />
Tel: + 82 2 399 6500<br />
Fax: +82 2 399 6507<br />
Hong Kong<br />
Suite 1501 Central Plaza<br />
18 Harbour Road<br />
Wanchai<br />
Hong Kong<br />
Tel: +852 2802 7700<br />
Fax: +852 2802 8211<br />
Shanghai<br />
Level 21 HSBC Tower<br />
101 Yin Cheng East Road<br />
PuDong Shanghai 200120<br />
China<br />
Tel: +86 21 6307 7055<br />
Fax: +86 21 6037 0069<br />
Singapore<br />
101 Thomson Road<br />
United Square #08-03<br />
Singapore 307591<br />
Tel: +65 6255 4555<br />
Fax: +65 6253 8431<br />
Taipei<br />
Suite 2208 Level 22<br />
333 Keelung Road<br />
Sec I Taipei<br />
Taiwan<br />
Tel: +886 2 2757 7188<br />
Fax: +886 2 2757 6483<br />
Bangkok<br />
Unit 1614, 16th floor,<br />
River Wing East<br />
Empire Tower<br />
195 South Sathorn Road<br />
Yannawa, Sathorn<br />
Bangkok 10120<br />
Thailand<br />
Tel: +66 2 670 0640<br />
Fax: +66 2 670 0645<br />
Kuala Lumpur<br />
Suite 12-1 Faber Imperial Court<br />
Jalan Sultan Ismail 50250<br />
Kuala Lumpur<br />
Malaysia<br />
Tel: +60 3 2611 1148<br />
Fax: +60 3 2070 4302<br />
95
<strong>Australia</strong>n Tourist<br />
Commission