Gosh, it seems like an eternity ago, but it's actually exactly four years since Australia closed its borders as the coronavirus started to spread around the world. And it's just over two years since we reopened and visitors took those first non-quarantine flights to come here, some exuberant and some a bit cautious.
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Thankfully we're not talking about the pandemic much anymore, but as I sat at Tourism Australia's annual conference in Sydney a few days ago, that dark period still loomed unspoken over much of what was discussed. Even though it was all about looking forward, the conference was a good chance to take stock of where Australia's tourism industry is at the moment, and I thought there were some really interesting insights.
The few references we had to the pandemic from the industry were in comparison to "2019 levels" - the zenith of Australian tourism. That's when the country welcomed a record 9.5 million international visitors. Things have definitely rebounded since borders opened, but last year was still 25 per cent lower than that peak.
One of the reasons the numbers are lower is because the Chinese market hasn't recovered as quickly as others. What was once Australia's top market is now only its fourth largest, although that's partly because there just aren't as many Chinese people travelling in general (Australia is actually getting a higher share than before the pandemic). On the other hand, the US market is roaring back and they're spending more in Australia than ever before. And we're seeing huge growth from India, fuelled in large part by family and friends visiting people who have moved here. (In fact, the topic of India's growing travel market came up quite a few times - so watch this space!)
If we want to give credit for the strong bounce back after COVID, we perhaps should aptly look to Ruby the Roo, who now spearheads Tourism Australia's advertising campaigns. Although it's somewhat lampooned by locals, remember the animated kangaroo voiced by Rose Byrne is not aimed at us, but at an international market that's ready to hop on board.
Likewise, as cringeworthy as it is now (and maybe even then), this year is the 40th anniversary of Paul Hogan's "slip an extra shrimp on the barbie" advertising campaign, which saw Australia rise from 78th on the list of desired destinations for US travellers to number seven! Since then, we've had the likes of Lara Bingle, Kylie Minogue, and Chris Hemsworth all try to convince tourists to come here. But now, Tourism Australia has revealed some of its latest internal strategies to attract more visitors.
The core of the marketing plan is to harness Australian attractions that, as Tourism Australia's managing director, Phillipa Harrison, puts it, "we still have a job to do promoting on a world stage". Obviously she doesn't mean the Great Barrier Reef or the Sydney Opera House. She's specifically talking about four categories: food and wine (perhaps somewhere like McLaren Vale is a good example); cultural activities (maybe fishing with Tasmanian Wild Seafood Adventures); Indigenous experiences (going into Arnhem Land with tour company Venture North was used as an example); and undiscovered regions (such as the Snowy Mountains, which currently gets only about 0.2 per cent of overseas visitors).
The biggest challenges in attracting international tourists are apparently the global cost-of-living crisis, limited capacity and high prices for flights, and fierce competition from rival destinations. And I found the discussion about that last point to be particularly interesting.
While the traditional competitors for Australia have long been destinations like New Zealand, Hawaii, Japan, and Canada, Tourism Australia has identified new competition in the Middle East, including Dubai, Abu Dhabi and even Saudi Arabia, which has spent almost $40 million to get soccer superstar Lionel Messi as an ambassador. Australia can't compete with marketing budgets like that. So, along with all the standard activities like trade shows and media outreach, Tourism Australia's plan is to be smarter with some of its tactics.
For instance, it's identified a trend where premium travel doesn't necessarily mean traditional five-star hotels but is about a focus on wellness and adventure. These travellers may be fewer, but they spend a lot more money and add to a more sustainable tourism industry. In the same vein, there's a new interest in agritourism, so there are efforts afoot to grow the number (and quality) of travel experiences in rural areas that focus on local producers.
Tourism bodies here are also reacting to other new trends. For instance, driving holidays are becoming much more popular with international tourists (particularly with the Chinese market, which previously used to be quite cocooned on group trips), while younger travellers are showing more interest in sights that they've seen online or in television shows, rather than the traditional landmarks that may appear in brochures.
So, why am I telling you all of this? Well, aside from the fact this is how your taxpayer dollars are being spent, it's because these marketing efforts and these international trends ultimately have an effect on your travel as well. The proliferation of Great Barrier Reef tours from Cairns, which many of us may have enjoyed at some point, were only possible to fund because of the high volume of international tourists. If there's now going to be a focus on things like agritourism, lesser-known regions, road trips, and wellness activities, then the investments in new infrastructure and experiences will also benefit domestic travellers.
The expectation is Australia's tourism industry will return to "2019 levels" this year, but it won't be the same landscape, with a different mix of nationalities and a change in what they're looking for. Tourism Australia has revealed its goal for the next four years is an annual growth rate of 10 per cent, compared to the 6 per cent pre-pandemic, so expect to see a lot more about the travel industry in the near future.
- You can see more on Michael's Travel Australia Today website.