Tourism Australia releases new strategy to grow global demand

Tourism Australia has released its new 10-year strategic Tourism 2035 plan, aimed at creating future demand and competitiveness for Australia as a destination internationally and supporting the nation’s tourism sector.

The strategy aims to grow total overnight high yield traveller spend to between $61 and $69 billion by 2035, helping to boost the economic contribution of Australia’s second largest export sector.

Tourism Australia Managing Director, Robin Mack, said at a time when global competition has never been fiercer, Tourism 2035, had identified 10 key global factors influencing future demand for our tourism offering.

“This strategy sets an ambitious course to create and convert demand into high-value visitation to Australia by addressing factors influencing traveller choice, through harnessing technology and fostering partnerships and collaboration across the tourism sector,” Mr Mack said.

“Our vision is for Australia to be the first destination every traveller dreams of, and the one they ultimately choose. The goal is for Australia to double the expenditure generated by high yield travellers to as much as $69 billion by 2035.”

Tourism Australia Executive General Manager Strategy and Culture, Robert Dougan, said Australia was well placed to capitalise on the global forces shaping future demand and competition.

“The Asian Century, the future of flight, rise in travel for good, the massive potential of major events and breadth of experiences driving choice are five of the factors Australian tourism will encounter over the next decade,” Mr Dougan said.

“Tourism Australia’s efforts will be squarely focussed on creating and converting demand for travel to Australia by positioning our destination offering in the best way possible. Tourism 2035 provides our industry with insight on what to be prepared for and where the opportunities lie.”

The latest figures show that international visitors contributed $57 billion in total overnight spend in the past year, of which $33 billion was generated by Tourism Australia’s strategic targeting of high yield travellers in their marketing. International visitation also contributed to more than 360,000 tourism businesses and over 720,000 jobs, providing measurable benefits for urban and regional Australia.

“A flourishing tourism sector delivers benefits far beyond economic impact. It creates jobs in both urban and regional areas, supports businesses large and small, helps to protect our natural and cultural assets and builds resilient communities across the nation,” Mr Mack said.

Key highlights of Tourism 2035

Over the next three years, Tourism Australia will focus its marketing and distribution efforts on four immediate priorities that respond to major factors likely to contribute to growth:

• Marketing to humans and machines: Ensure our marketing engages with machines, algorithms and AI systems to recommend Australia as a top choice for holidays and business events. This will be just as important as connecting directly with consumers.
• Showcase our unrivalled breadth: Australia is famous for its beaches and wildlife, but travellers now want multiple experiences in one trip and different ways of getting around. Tourism Australia’s priority is to show the full Australian experience.
• Capitalise on the major events runway: Tourism Australia will use the global spotlight on Australia to showcase the country as a premier travel destination, not just a host of world-class events. This will include building a national platform for destination marketing for the Olympics to spread the benefits across all states and regions.
• Define a distinctive luxury positioning for Australia: Global definitions of luxury are shifting away from opulence to deep connection to nature and rare experiences. Australia is rich in these areas. Tourism Australia will focus on our distinctive form of luxury.

These four priorities take into consideration the 10 global factors influencing future travel demand:

1. High yield competition: Increasing competition for the high yield traveller.

2. The Asian Century continues: Asian markets will drive the next wave of growth.

3. Breadth drives choice: Travellers want a range of experiences.

4. The massive potential of major events: Springboards for visitation, yield and advocacy.

5. The future of flight: Reducing perceived effort and cost.

6. The era of volatility: Geopolitical, economic and climate volatility is impacting traveller confidence and decision-making.

7. Multiple paths to purchase: Planning and booking behaviour is changing.

8. Attention fragmentation: Content overwhelm and digital disruption reduces the time and focus available for destinations to make an impact.

9. Rise in travel for good: A growing demand for travel experiences that deliver positive social or environmental impact, which aligns with Tourism Australia’s Green is Our Gold initiative to support and encourage responsible travel.

10. Natural desire: Demand for authentic and regenerative nature experiences is becoming a major driver of interest in Australia.

For further information download Tourism 2035.