International Market Profile: Thailand Year ending December 2015

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1 International Market Profile: Thailand Year ending December 2015 This fact sheet provides a summary of the latest tourism data for visitors from Thailand to Victoria. Information includes: visitor numbers, purpose of visit, expenditure, regional visitation and dispersal, demographics, visitor behaviour, travel style, information sources and booking methods. 1. OVERVIEW O F THAI VISIT ORS TO AUSTRAL IA 1.1 Trends Total Visitation from Thailand to Australia, Year Ending December Visitors (000s) % 1.3% 1.8% Visitor Nights (000s) 2,540 2,597 2,915 2,831 3,451 3,371 3,305 3,225 3,292 3,880 3, % 0.4% -11.5% Average Length of Stay Thailand generated 72,000 visitors to Australia in the year ending December 2015, an increase of 1.8% on the previous year. The number of visitors from Thailand coming to Australia increased at a rate of 1.3% per annum over the period 2010 to Overnight stay by Thai visitors declined in the year ending December 2015 after the notable increase in the prior year (to reach an average of 47.7 nights). Thai visitors spent 3.4 million nights in Australia, a decrease of 11.5% on Thai visitor nights in Australia have marginally increased over the longer term, at an average rate of 0.4% per annum since In the year ending December 2015, New Zealand was the largest source of international visitors to Australia (1.19 million visitors), followed by China (952,000), the United Kingdom (649,000) and United States of America (574,000). China experienced the strongest growth year-on-year (+21.4%), followed by India (+18.6%) and Korea (+12.3%). China continues to be a driving force behind international tourism growth in Australia. All key markets experienced year-on-year growth in visitors to Australia: China (+21.4%), India (+18.6%), the United States of America (+9.8%), Singapore (+6.0%), the United Kingdom (+5.5%), Malaysia (+4.9%), New Zealand (+4.7%) and Indonesia (+1.1%). Historically Eastern markets have lower overnight dispersal into regional areas of Australia. The inbound market is forecast to continue leading growth in Australia supported by lower fuel prices, the depreciation of the Australian dollar and the improvement of economic conditions in overseas markets. Forecasts for Australia s key tourism markets are for growth above the global growth trend in the next two years. Although China s economy has slowed down, growth in China, India and Malaysia is expected to outpace the global average rate of growth. Similarly, the economic growth of Australia s leading Western tourism markets such as the United States, the United Kingdom and New Zealand is also expected to exceed the average rate of growth forecast for advanced economies Main Purpose of Trip Thai Visitors (000s) to Australia by Purpose of Trip, Year Ending December Holiday % 1.8% 7.5% Visiting friends and relatives % 4.7% 0.2% Business % -3.1% -13.2% Education % -2.4% 2.2% 1 Tourism Forecasts 2015, Tourism Research Australia, Canberra

2 For the year ending December 2015, 27,000 visitors came to Australia from Thailand for holiday purposes, an increase of 7.5% over the previous year, while 19,000 Thai visitors came to Australia to visit friends and relatives (VFR), a marginal increase of 0.2% year-on-year. The business travel sector has experienced a year-on-year decline of 13.2% to 11,000 visitors in 2015 while the education sector experienced an increase of 2.2% to 9,000 visitors. Note that employment and other segments are not included in the above table due to insufficient publishable data over time. 1.3 States/Territories Visited Thai Visitation (000s) to Australia by State/Territory, Year Ending December Australia % 1.3% 1.8% New South Wales % 1.8% -10.5% Victoria % 2.8% 13.1% Queensland % 8.0% -3.8% Western Australia % -9.3% -6.5% There were 27,000 overnight Thai visitors to Victoria in the year ending December 2015, a 13.1% increase over the previous year. Thai visitation increased by 1.8% year-on-year nationally. In contrast, visitation declined by 10.5% in New South Wales and 3.8% in Queensland. Over the longer term, Thai overnight visitation to Victoria has grown at an annual average rate of 2.8% between 2010 and 2015, ahead of the national average (+1.3% p.a.). Note that not all states and territories included in the above table due to insufficient publishable data over time. In the year ending December 2015, China was the number one source market for international visitors to Victoria increasing 25.5% to 490,000 overnight visitors. Other markets with strong year-on-year growth included India (+24.1%), the United Kingdom (+15.6%) and Singapore (+15.0%). The second largest source market of international overnight visitors to Victoria, behind China, was New Zealand (328,000 visitors), followed by the United Kingdom (228,000), United States of America (178,000), Malaysia (126,000), Singapore (113,000) and India (104,000). Year-on-year growth in overnight visitors to Victoria came from both Eastern (+18.8%) and Western markets (+8.4% year-onyear). Thai Visitor Nights (000s) in Australia by State/Territory, Year Ending December Australia 2,540 2,597 2,915 2,831 3,451 3,371 3,305 3,225 3,292 3,880 3, % 0.4% -11.5% New South Wales 939 1,052 1,267 1,143 1,307 1,152 1,379 1,398 1,343 1,756 1, % 4.7% -17.6% Victoria % 0.0% 2.2% Queensland % 7.7% Western Australia % -15.9% 1.4% NB: Where there is a '-', figures are unreliable and are unable to be published. The number of visitor nights spent in Victoria by Thai visitors increased by 2.2% year-on-year to 935,000 in the year ending December Over the longer term, however, visitor nights spent by Thai visitors in Victoria has remained flat with an average growth rate of 0.0% per annum for the period 2010 to Note that not all states and territories included in the above table due to insufficient publishable data over time.

3 1.4 Market Share by State Thai Overnight Visitors 2 to Australia, Year ending December 2015 by State For the year ended December 2015, 37% of Thai visitors stayed overnight in Victoria, compared to 45% in New South Wales and 18% in Queensland. Thai Visitor Nights to Australia, Year ending December 2015 Market Share by State Victoria s market share of visitor nights spent by Thai travellers in the year ending December 2015 was 27%, behind New South Wales (42%) but ahead of Queensland (17%). 2 NOTE: The proportion of Visitors to the States and Territories will not add up to 100% as visitors can travel to multiple destinations in one trip; while the proportion of Visitor Nights to the States and Territories will add to 100% as this measure is mutually exclusive.

4 1.5 Main Purpose of Visit Visitors to Victoria Thai Visitation (000s) to Victoria by Main Purpose of Visit, Year Ending December For the year ending December 2015, there were 17,000 Thai overnight leisure visitors to Victoria, comprising of 11,000 holiday visitors and 6,000 visiting friends and relatives. The total number of leisure visitors represents a 21.6% increase over the previous year. Over the longer term, overnight leisure visitors from Thailand has grown at an annual average rate of 4.0% between 2010 and Melbourne and Victoria Visitation Thai Visitation (000s) to Victoria, In the year ending December 2015, there were 24,000 Thai visitors to Melbourne, an increase of 6.2% over the previous year and an average annual increase of 3.0% since Thai Visitor Nights (000s) in Victoria, Holiday % 6.1% 50.4% Visiting friends and relatives % -10.4% Total Leisure % 4.0% 21.6% NB: Where there is a '-', figures are unreliable and are unable to be published. Year Ending December Melbourne % 3.0% 6.2% Victoria % 2.8% 13.1% NB: Where there is a '-', figures are unreliable and are unable to be published. Year Ending December Melbourne % 0.5% -7.0% Victoria % 0.0% 2.2% The number of visitor nights spent in Melbourne by Thai visitors declined by 7.0% from the previous year to 804,000 visitor nights in the year ending December Between 2010 and 2015, visitor nights spent in Melbourne increased at an average rate of 0.5% per annum. 1.7 Visitor Expenditure Expenditure by Visitors from Thailand Year Ending December Total Expenditure Expenditure Share Expenditure Per Night Expenditure Per Visitor ($ million) Av Ann % Change % $ $ % Change New South Wales % -4.9% 1.9% 1.7% 1.4% ,623 3,354 3,520 Victoria % -2.1% 2.5% 1.7% 1.3% ,839 3,652 3,163 Queensland % 11.4% 0.4% 0.6% 0.6% ,661 1,918 2,220 South Australia np np np np np np np np np np np np np np Western Australia % 12.1% 2.6% 1.0% 1.2% ,395 2,487 2,983 Tasmania np np np np np np np np np np np np np np Northern Territory np np np np np np np np np np np np np np Australian Capital Territory np np np np np np np np np np np np np np Australia % -0.8% 1.7% 1.4% 1.1% ,343 3,938 3,836 np: denotes figures not published by TRA. NB : Visitor expenditure includes expenditure on packages attributable to destination. Source: Regional expenditure modelling, International Visitor Survey, December , Tourism Research Australia, Canberra. Thai overnight visitors spent $276 million in Australia in the year ending December 2015, representing a decrease of 0.8% on the previous year and a decrease of 1.2% per annum since In the year ending December 2015, Thai visitors to Victoria spent $85 million, representing a 1.3% share of total international visitor expenditure in Victoria and an average annual decrease of 1.1% since 2010 and 2.1% decline year-on year.

5 In the year ending December 2015, Chinese overnight visitors had the highest expenditure of all international visitors to Victoria, with expenditure growing 59.2% year-on-year to $2.2 billion. China s share of expenditure to the State is more than the next six markets combined: New Zealand (6.6%), UK (6.5%), Malaysia (5.4%), Singapore (4.9%), USA (4.5%) and India (4.1%), accounting for a third (33.4%) of total international visitor expenditure in Victoria. In addition to China, almost all of the key markets also experienced year-on-year growth in expenditure, with the exception of Indonesia (-4.9%): Singapore (+35.7%), the UK (+31.7%), India (+29.8%), the USA (+24.6%), New Zealand (+20.4%) and Malaysia (+7.3%). 1.8 Visitor Forecasts Thai Forecasts ACTUAL 20 FORECAST 2015/ / / / / / / / / /25 Ave Annual Growth Rate ( /25) Visitor Numbers (000s) % p.a. Visitor Nights (000s) ,015 1,047 1,081 1, % p.a. Visitor Expenditure ($m) % p.a. Note 1: Based on visitors aged 15 years or over. Note 2: Slight variations in calculations are due to rounding. Note 3: National forecast growth rates applied to year ending June 2015 actuals for Victoria to determine projected estimates to Sources: Tourism Research Australia Forecast 2015 (October 2015); and International Visitor Survey, year ending June 2015, Tourism Research Australia, Canberra. Victoria is forecast to receive approximately 32,000 overnight visitors from Thailand generating an estimated $82 million in expenditure to Victoria by The average annual growth rate of international visitors to Australia is forecast to be 4.1% over the period to , to reach 10.6 million visitors. International visitors to Victoria are anticipated to grow from 2.3 million to 3.5 million over the same period. Total inbound tourism expenditure in Australia is forecast to grow by 3.8% per annum over the period to , to reach $48.6 billion. International expenditure in Victoria is anticipated to grow from $5.7 billion to $8.7 billion over the same period. For more detailed information on tourism forecasting, market performance and economic commentary, please refer to the source at:

6 2. OVERVIEW O F THAI LEISU RE VISITORS TO AUSTRALIA The main focus of this analysis will be on leisure travellers from Thailand to Victoria. Leisure travellers are those who travelled to Australia for holiday purposes or to visit friends and relatives (VFR). Due to low sample sizes, detailed analysis for visitation to Victoria could not consistently be undertaken. Thai Visitation to Victoria for Leisure, Year Ending December Visitors (000s) % 4.0% 21.6% % Market Share 27% 30% 29% 30% 35% 36% 36% 30% 34% 32% 38% Visitor Nights (000s) % 8.6% % Market Share % 29% 26% - 26% 18% 23% Average Length of Stay NB: Where there is a '-', figures are unreliable and are unable to be published. In the year ending December 2015, there were 17,000 leisure visitors from Thailand who stayed in Victoria, a 21.6% increase over the previous year, despite a 4.0% average annual decline over the longer term (2010 to 2015). Thai leisure visitors spent 343,000 nights in Victoria, an increase of 8.6% for the year ending December Thai visitor nights in Victoria have marginally declined over the longer term, at an average rate of 0.3% per annum since The average length of stay by Thai visitors to Victoria is 19.8 nights. 2.1 Visitation to Melbourne Attractions Selected Places Visited - Melbourne Attractions (% of Leisure Overnight Visitors to Victoria) Thailand Visitors All International Visitors Bourke Street Mall 36% 31% Brunswick Street - 12% Chadstone Shopping Centre - 14% Chapel Street - 12% Crown Casino/entertainment complex - 25% Docklands/Telstra Dome/Etihad Stadium - 22% Eureka Skydeck - 10% Federation Square 31% 49% Melbourne Aquarium - 8% Melbourne Cricket Ground (MCG) - 9% Melbourne Museum (Royal Exhibition Building) - 18% National Gallery of Victoria (NGV) - 14% Queen Victoria Market 47% 50% Southbank/Southgate - 28% St Kilda 31% 30% NB: Where there is a '-', figures are unreliable and are unable to be published. Of the Melbourne attractions visited, 47% of Thai overnight leisure visitors to Victoria went to the Queen Victoria Market, 36% visited Bourke Street Mall and 31% each went to Federation Square and St. Kilda.

7 2.2 Demographic Profiling Age Group (% of overnight leisure visitors from Thailand) In the year ending December 2015, 28% of overnight leisure visitors from Thailand to Australia were aged years and 26% were aged years. 2.3 Detailed Visitor Behaviour Travel Party Description (% of overnight leisure visitors from Thailand) For the year ending December 2015, most of Thai leisure visitors to Victoria and Australia were self-drive (used a private or rental car, campervan, motor-home or four-wheel drive) (55% and 61% respectively) while 24% of Thai leisure visitors to Australia travelled by aircraft.

8 Repeat Visitation to Australia (% of overnight leisure visitors from Thailand) For the year ending December 2015, the proportion of visitors from Thailand to Victoria who were return visitors to Australia was 66%, increasing from 60% in Top 15 Activities (% of overnight leisure visitors from Thailand) Of the most common activities on their trip as listed above, Thai overnight visitors to Victoria were more likely than all international overnight leisure visitors to Victoria generally to go shopping for pleasure (91% compared to 85%) and go to markets (64% compared to 60%).

9 3. TRAVEL STYLE 3.1 Group & Fully Independent Travel (FIT) travel Trends in Group and FIT travel among Thai leisure visitors to Australia, The maturity of the Thai market is reflected in the large proportion of FIT travellers, who accounted for 92% of the market in the year ending December *NOTE: Group and FIT are derived using the following method. Group travellers refer to those who responded yes to question Did you travel to Australia on a group tour?. The remaining travellers who were not group or package are referred to as FIT.

10 4. INFORMATION SOURCES & BOOKING METHODS 4.1 Information Sources Information Sources by Thai Leisure Visitors to Australia and Victoria, 2014 (latest available) Base: Valid responses Among Thai leisure visitors to Australia in the year ending December 2015, the leading information source used was the internet (42%) and word mouth from a friend or relative living in Australia (42%). Knowledge from previous visit accounted for 19% of information sources for Thai leisure visitors. Thai leisure visitors to Victoria were also more likely to use the internet (39%).

11 Reasons for using the Internet by Thai Leisure Visitors to Australia and Victoria, 2014 (latest available) Base: Those who used the Internet as an Information Source. Of Thai overnight leisure visitors to Australia who used the internet in their holiday planning, 53% used it to look for airfares or air schedules for travel to Australia, 38% each used it to help plan their trip itinerary and 38% used it to find out more about Australia after their decision to visit.

12 4.2 Internet Booking Incidence of Online Booking among Thai Overnight Leisure Visitors, (latest available) Visitors to Victoria Visitors to Australia 70% 60% 56% 59% 58% 58% % of visitors 50% 40% 30% 20% 10% 15% 14% 27% 19% 38% 27% 41% 30% 50% 34% 46% 49% 49% 41% 48% 55% 0% The incidence of online booking among Thai visitors to Victoria has fluctuated over time however over recent years has increased to reach 58% in the year ending December Trip Components Booked Online among Thai Overnight Leisure Visitors, 2014 (latest available) Base: Booked online Among Thai overnight leisure visitors booking travel online the most frequently purchased components by visitors to Australia was international air fares to Australia (83%) and accommodation (27%). Sources: - International Visitor Survey, years ending December , Tourism Research Australia - International Tourism Expenditure in Australia s regions , Tourism Research Australia Base: Only those trips where International visitors aged 15 years who have stayed in Australia for less than 12 months are in scope. For further information on data sources used please refer to our summary of Research sources, definitions and methodologies document found here: Figures that are unreliable and unable to be published are represented by -. Percentages in red italics are unreliable and should be used with caution. Figures might not add up due to rounding. Further information on international visitor statistics:

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