MARKET OVERVIEW

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<strong>MARKET</strong> S.W.O.T Strengths Melbourne and Victoria offers contrasting experiences to those found in Europe; fantastic landscapes, wildlife and coastal lifestyle, easily accessible and in close proximity to Melbourne. The self-drive and touring experience continues to be popular, with 69% of Germans participating in a self driving experience whilst on holidays in Australia (Jan-Sep09, IVS). Great Ocean Road has been named one of the best coastal drives in the world and a ‘not to be missed’ inclusion on an Australian self drive itinerary. Australia is considered a relatively safe destination to visit with low threats of terrorism, political stability and low crime rate. There is a high desirability across Europe to visit Australia. Aussie Specialist Program is recognised as an industry leader in retail trade engagement globally. Australia offers Working Holiday visas to German citizens aged 18-30 providing the opportunity to leverage the youth segment. Weakness Distance, time of travel, cost and the perception of the time required for an Australian holiday remain barriers to travel. The value proposition of Australia compared to other long-haul destinations (e.g. Asia and US) remains a challenge as the AUD strengthens and airfares to Australia remain high comparatively. Australia struggles to compete with the all-inclusive package holiday destinations due to the higher airfare component of a packaged holiday. Lack of urgency to travel to Australia – perceived as a ‘once in a lifetime’ holiday dream trip – continues to be a core barrier for conversion of travel to Australia. Victoria doesn’t belong to three “have to see” experiences for a first time visitor (Sydney, Reef & Rock) Lack of luxury resorts and products in Victoria. Opportunities German leisure visitors to Australia have the fifth highest rate of dispersal globally (54% YE Dec 09) and an above average and growing length of stay (43 nights Vs 23 nights on average). Their preference for extended stays, self-drive and campervan touring represents an ongoing opportunity to promote touring holidays in regional Victoria. Germany is Europe’s largest outbound travel market, representing a large pool of potential travellers for the Australian market. 14 Germany 2010
Holidays are considered a basic necessity by Germans, taking advantage of their long annual leave entitlement (5-6 weeks per annum), providing the opportunity to maximise German length of stay in Australia. With a growing luxury market (1% of German population are high income earners, net monthly HHI >€4000), Australian luxury products and experiences are increasingly being brochured by German operators and receiving improved media coverage. The choice and frequency of airline services to Australia has increased from this market with Singapore Airlines launching flights from Munich in March 2010 and Middle Eastern carriers boosting frequencies. Digital opportunities within the social networking sites and blogosphere provide cost effective ways to reach consumers (esp. youth) and engage consumers. Engage with the Aussie Specialists and promote the Victorian Specialist programme. Threats Media consolidation and cutbacks have resulted in redundancies and reluctance from journalists to take extended leave due to concerns over job security. This, in conjunction with smaller budgets, limits media famils opportunities. The short- to mid-haul destinations are taking advantage of the last minute booking trend of all-inclusive deals, and are consequentially increasing their marketing investment. Airlines are looking to re-coup some of the money lost from low pricing in 2008/09. Coupled with the newly introduced air tax from 01 January 2011, Australia runs the risk of looking more expensive again in the future. The majority of competitor destinations (e.g. South Africa, Morocco, Thailand) boosted marketing spend in 2009 and are expected to maintain this increased investment. This resulting increased their share of voice in the market means that Australia will have increased competition for share of voice. Australia’s share of Germany’s outbound market has changed very little since 2000, fluctuating between 0.7% and 0.8%. In 2008, Australia represented 0.7% of Germany’s outbound market to destinations outside of Western Europe. As at 2008, Germany’s top destinations (outside Western Europe) include the United States, with Australia ranked 30 th . 15 Germany 2010
Page 1 and 2: MARKET OVERVIEW Germany As Europe's
Page 3 and 4: Winter holidays are also selling st
Page 5 and 6: Forecast Germany (Tourism Forecasti
Page 7 and 8: INDUSTRY INFRASTRUCTURE Distributio
Page 9 and 10: Sources: PhoCusWright, ETTSA study,
Page 11 and 12: ARRIVALS TO VICTORIA & AUSTRALIA Ar
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Page 17 and 18: Tourism Victoria quarterly trade ne
Page 19 and 20: Run online advertising campaigns to
Page 21 and 22: EMBASSY / AUSTRADE / INVEST VICTORI
Page 23 and 24: TRADE MEDIA FVW INTERNATIONAL (fort
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