THE WHITSUNDAYS DESTINATION TOURISM PLAN

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1 THE WHITSUNDAYS DESTINATION TOURISM PLAN

2 PAGE CONTENTS Executive Summary Setting The Scene (Background) Role Of Tourism And Events In Our Community About Our Destination Destination Tourism Perceptions Competitor Analysis Where Are We Now? Where Will We Be In 2020? Megatrends Tourism And Events Queensland 2020 Strategic Marketing Plan Queensland Ecotourism Plan Queensland Drive Tourism Strategy Whitsunday Regional Council Corporate Plan Growth Implications Top Opportunities And Challenges Destination Strategies Strategic Priorities And Actions To 2020 Acronyms and Bibliography APPENDIX Appendix A Explanation Of Megatrends Appendix B - Summary Of Destinationq 20 Year Plan Six Key Themes Appendix C - Teq Market Segments Appendix D Opportunities And Challenges Analysis MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 2

3 Executive Summary The Queensland Government has identified the tourism industry as one of four key pillars that will drive economic development and growth in the coming decade, and has set a goal to increase visitor expenditure across Queensland from $21.5 billion in 2012 to $30 billion by the year All tourism regions will contribute to achieving this goal and have been set milestones to aim for in raising their annual visitor expenditure. In the case of the Whitsundays region the aim is to raise expenditure from $705 million in to $1.24 billion in This Whitsundays Destination Tourism Plan (DTP) seeks to guide the industry in reaching this aspirational target, in growing sustainability and in achieving its vision that, by 2020 the Whitsundays will be globally recognised as one of the world s leading tropical island and marine leisure holiday destinations In being aware of numerous megatrends that will impact of the industry in the coming decade state government has identified six key themes upon which tourism development should be based, namely; Preserving our nature and culture Offering iconic experiences Targeting a balanced portfolio of markets Delivering quality, great service and innovation Building strong partnerships Growing investment Research to develop this DTP included desktop review of existing key plans and strategies; review of extensive local industry and stakeholder 2013 consultation (Airlie Beach, Bowen, Collinsville and Proserpine 2013 tourism forums results); industry focus group and steering committee workshops; and individual key business and government stakeholder consultation undertaken in early Located halfway along the Queensland east coast (and midway along the Great Barrier Reef) the Whitsundays region incorporates both mainland communities and 74 islands. The regional economy is heavily reliant on tourism with approximately 3,000 people being directly employed in the industry. Airlie Beach and the Islands are the main tourism precincts. Local government is focussed on growth and development and Cannonvale-Cannon Valley are key residential growth precincts, because of their close proximity to Airlie Beach and the coast, and the lifestyle appeal of this tropical destination. Located adjacent to the inland Bowen and Galilee Basins (major coal and gas reserves and industries) the Whitsundays is recognised as a key marine and coastal playground for both the region and Queensland. The Whitsundays is well recognised nationally (and in some areas internationally) as an attractive tropical destination offering numerous unspoilt and reef fringed islands to explore; great sailing (and related events); a place to unwind and party; luxury resorts and a honeymoon/weddings/romance destination. Bowen is a winter escape for grey nomads from the south who flock to fill caravan parks and enjoy coastal activities (particularly fishing). The top opportunities and challenges the region faces in achieving the 2020 growth in annual visitor expenditure are identified as; Top Opportunities 1. Regional population growth 2. Optimise the regions marketing outcomes 3. Product and facilities development 4. Events development 5. Developing drive tourism 6. International access potential of Whitsunday Coast Airport Top Challenges 1. Threats to and decline in the marine and natural environment 2. High cost of doing business in Australia 3. Impacts of severe weather events 4. Lack of mainland product and activities 5. Attracting, developing and retaining a skilled workforce MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 1

4 The region s stakeholders recognise that they can t keep going as they have been, if they are to achieve a 70% growth in annual visitor expenditure over the next 6 years. There will be an ongoing marketing effort to grow traditional and emerging markets and some island resorts and mainland businesses are undertaking significant refurbishments and rebranding to attract new high-yield markets; it is recognised that there is a strong need for increased mainland product and infrastructure that caters to families, the drive market and provides bad weather alternatives (this will also support efforts to substantially grow the resident population). The need for regional dispersal throughout the region, and more and improved events, will be essential in growing visitor numbers, lengths of stay and expenditure. It is recognised that the domestic grey-nomad, RV s and caravanning markets need to be re-focussed on to take advantage of ongoing population growth and ageing (and the popularity of these lifestyles). This report will recommend now is an opportune time to revisit the Whitsundays Ecotourism Strategy (2008), with ecotourism product aligning well with strategies to maintain and promote the unspoilt natural environment and to develop new family-friendly mainland product and experiences. The DTP identifies twelve key strategies for the region to focus on to achieve 2020 targets: 1) Take advantage of population growth in the immediate and greater region (Galilee and Bowen basins, Townsville) by maximising opportunities to grow day-trip, short-break and VFR visitation to the Whitsunday region; 2) Refocus regional marketing initiatives to improve performance/attract more visitors from southern, interstate and eastern seaboard markets, in particular Melbourne, Sydney and N.Z. markets; 3) Grow consumer recognition that the Whitsundays is the gateway to the central Great Barrier Reef (heart of the reef); experiences that encourage distribution of visitors and tourist dollars throughout the region; 7) Grow the number and quality of events across the Whitsundays region; 8) Protect and promote Whitsundays marine and natural environments; 9) Support tourism industry workforce development; 10) Improve industry resilience to the impacts of severe weather events; 11) Establishment of international flights into Whitsunday Coast Airport; and 12) Increase engagement by the tourism industry in advocacy and planning activities that impact upon the industry. Having said this, the region will continually evolve its product offerings and marketing activities to ensure it meets the needs of (and grows visitation from) traditional markets. Key to the progress of this plan will be; Negotiations between Whitsundays Marketing and Development Ltd (WMDL - the key tourism, business events/conventions and economic development agency for the Whitsunday region), funding partners and respective government agencies to ensure adequate funds are available for the staged implementation of the plan; Engaging business and communities to ensure in kind and volunteer contributions are maximised; Attraction of external grant funds to support available agency and community contributions; and WMDL, Whitsunday Regional Council and other agencies getting the balance right between supporting/attracting major developments versus community-economic and small business development. 4) Increase the attractiveness of the Whitsundays as an Australian holiday destination to Chinese target markets; 5) Support the development of major projects that will enhance the visitor experience and appeal of the region; 6) Support the development of new product and MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 2

5 SETTING THE SCENE MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 3

6 Setting The Scene The Queensland Government has identified tourism as one of the four pillars of Queensland s economy and is committed to ensuring Queensland regains its rightful place as Australia s pre-eminent tourism destination. In line with the state governments DestinationQ Blueprint , the industry led by the Regional Tourism Organisations (RTOs), are taking a whole-of-destination approach to tourism to increase visitor expenditure across Queensland from $21.5 billion in 2012 to $30 billion by the year The following diagram depicts the state tourism growth aspirations in terms of source market contributions. To maximise the opportunities to increase expenditure for all of Queensland s destinations by 2020, the state tourism strategic direction is to; Increase the share of international expenditure from 21% to 30% of overall visitor expenditure; Attracting more Asian travellers with the goal of increasing their share of international expenditure from 44% to 49%; Leverage marketing opportunities in specific long haul markets of the United States, the United Kingdom and Europe; In order to deliver on the vision and the targets for 2020, each RTO has led the development of a Destination Tourism Plan (DTP). These plans were developed in partnership with Local Government, State Government, Industry Associations, and Tourism and Events Queensland (TEQ) to set the direction for the future of tourism and events in each destination. Attract visitors more resilient to economic shifts, such as the affluent over 50s and youth travellers; and Partner with Queensland s Regional Tourism Organisations (RTOs) to increase the visitation to Queensland destinations from New Zealand, intrastate and interstate markets. MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 4

7 The Tourism Queensland 2012 Economic Update provides the 2020 and interim Annual Visitor Expenditure targets for the Whitsundays, as follows; At the core of the development of the Whitsunday Region DTP are the following key principles, including; 1. An integrated approach to planning that seeks to deliver, improved destination competitiveness; increased visitor satisfaction; economic, social and environmental sustainability; effective partnerships and continuous improvement; 2. Recognition of megatrends identified in the 2013 CSIRO authored report, The Future of Tourism in Queensland Megatrends, Creating Opportunities and Challenges Over the Coming Twenty Years (for further information see Appendix A); and Offering iconic experiences; Targeting a balanced portfolio of markets; Delivering quality, great service and innovation; Building strong partnerships; and Growing investment and access; (For further information see Appendix B) 3. Alignment with the six key themes that make up the vision for the Queensland tourism 20- year plan; Preserving our nature and culture; MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 5

8 Importantly, this DTP recognises that regions and the state do not have the resources to undertake all desired projects. In the past resources have been spread too thinly and as a result many projects have not commenced, not reached their potential or failed in achieving desired goals/outcomes. With a view to better using available resources, this DTP identifies for the Whitsunday region a select number of key opportunities to pursue and challenges to overcome. In doing so consideration has been given to key areas such as; The DTP is a living document. In recognition of ever-changing environments and influences, it will be reviewed and upgraded on an ongoing basis. The involvement of a comprehensive range of stakeholders in the development and ongoing monitoring of the DTP, combined with the selection of a small number of strategies likely to best assist the region in meeting its 2020 goals, provides an agreed direction for the Whitsunday region to pursue with tourism and events development to Is there a demonstrated market demand? Is there destination stakeholder support? Are identified target markets and segments key contributors towards the Whitsundays 2020 vision? Will strategies make a significant contribution to achieving the Whitsunday 2020 targets? Do strategies leverage Whitsundays hero experiences? Are strategies realistic (but aspirational)? MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 6

9 ROLE OF TOURISM AND EVENTS IN OUR COMMUNITY MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 7

10 Role Of Tourism And Events In Our Community The region is home to 74 islands and is surrounded by one of the world s seven natural wonders, the Great Barrier Reef. The region contains substantial national parkland, providing a vital life support system for ancient rainforests and exotic wildlife. The local economy is driven by tourism, mining, sugarcane, farming and cattle grazing. (Source: Mackay-Whitsundays RDEC 2012 Economic Snapshot) The Whitsunday regional population is approximately 33,000. The Airlie Beach-Shute Harbour- Cannonvale precinct (population approx. 10,000), along with the adjacent islands, is recognised as the regions key tourism precinct. Cannonvale continues to grow as a retiree and lifestyle residential location, and regional service centre. Tourism accounts for an estimated 18% of the region s economy (compared to 3.7% for Queensland and 3.0% for the national average). This ranks Whitsundays the 3rd highest region for the economic importance of tourism among the 77 tourism regions in Australia. (Source: Tourism Research Australia, The Economic Importance of Tourism in Australia s Regions ; published April 2011) There were 634 tourism related businesses in the Whitsundays as at June 2011, of which 9 in 10 were small businesses employing less than 20 employees. (Source: Tourism Research Australia, Tourism Businesses in Australia June 2009 to June 2011 ; published July 2012) In tourism directly accounted for 3,400 jobs in the Whitsunday region. Retail trade had the largest share of tourism employment (22.4%), followed by accommodation (20.6%) and cafes and restaurants (14.4%). (Source: STCRC, Regional Economic Contribution of Tourism Destinations in Queensland ; published June 2010) At the core of the Whitsundays brand and experiences are the regions pristine natural environments found in the Great Barrier Reef, island national parks and protected marine areas; and in mainland national parks, state forests and coastal precincts. A number of accommodation options varying from camping in a national park through to internationally branded luxury island resorts attract hundreds of thousands of visitors annually. With a tropical climate and easy access by road, air or sea, Airlie Beach and the Whitsunday Islands are a mature year-round destination. The industry here offers world-class experiences; delivers best practice and innovation; embraces a partnership approach between the tourism industry, government and community and fosters thriving operators. As such the Whitsunday region is continually raising the profile of Queensland s ecotourism experiences and contributing to the Queensland Ecotourism Plan vision for That is by 2020, Queensland is Australia s number one ecotourism destination and recognised as a world leader in ecotourism, delivering best practice nature-based experiences that contribute to the conservation of our natural resources and cultural heritage. Although over 40% of visitors access the region by air through the two main airports (Hamilton Island and Whitsunday Coast at Proserpine), over 50% of visitors access the region by road; with a vast majority of these being self-drive. Because of the; Bruce Highway (national Highway One) passing through the region; Importance of the grey nomad market; Large fly-drive market; and Attraction of the region to the expanding population of the greater/surrounding region (spurred by resources industry growth over the past decade); MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 8

11 Drive-tourism is of huge importance to the region, to not only tourism businesses, but also in supporting a large number of other services, retail businesses and jobs. Drive-tourism presents numerous future economic growth opportunities for the Whitsunday region. (Refer to the Queensland Drive Tourism Strategy ) WMDL is the key tourism, business events/ conventions and economic development agency for the Whitsunday region. It is the RTO and has triparty funding from Whitsunday Regional Council; Tourism and Events Queensland (state government) and Industry (memberships). WMDL has partnership arrangements with Tourism Bowen (Local Tourism Organisation) and works across the region with chambers of commerce, business and communities in tourism development. Whitsunday Regional Council is a key partner in tourism development, as evidenced in the following Corporate Program statement in the Whitsunday Regional Council Community Plan ; Tourism and Economic Development Objective To pursue in conjunction with Economic Development and Tourism Agencies, the promotion and creation of new economic, social, tourism and cultural opportunities for all residents of the Whitsunday Regional Council. Strategies 1. To foster and support Economic, Tourism, Social and Cultural Development within the region. 2. To collaboratively pursue funding opportunities. 3. To enhance opportunities for the creation of Tourism within the region. 4. To be a key player in economic growth within the region. 5. To continually maintain and improve Council s tourism and community infrastructure to the highest standard, including Airlie Beach Lagoon, Bowen Foreshore, Shute Harbour Transit facility, Whitsunday Coast Airport and Proserpine Tourist Park. (Source: Whitsunday Regional Council Community Plan ) MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 9

12 ABOUT OUR DESTINATION MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 10

13 About Our Destination The Whitsundays tourism region aligns with the Whitsunday Regional Council boundaries. It is situated midway along the Queensland coast, approximately 1,100 km north of Brisbane and 700 km south of Cairns. The main population centres are Bowen on the north coast, Collinsville and Proserpine inland, and the Cannonvale-Airlie Beach-Shute Harbour precinct. Historic development around Bowen is attributed to agriculture, fishing and development of Port Denison. Further south, Proserpine s existence is attributed to agriculture, processing of raw materials such as timber, and beef cattle and sugar milling. Settlement at Airlie Beach and surrounds has been a result of its position, as the gateway to the Whitsunday Islands and Great Barrier Reef. Development of Airlie Beach and the tourism sector has led to the expansion of Cannonvale as a residential and retailing service centre, housing and servicing needs of local workers. The larger communities in the subregion, such as Proserpine, Bowen, Airlie Beach, Cannonvale and Collinsville are all expected to grow significantly. The subregion contains regional landscape and natural environmental values of national and international importance including the Whitsunday Islands, national parks, protected areas, riparian areas and sandy beaches that require protection for their ecological and scenic value. (Source: Qld Dept. of Local Government and Planning, Mackay, Isaac and Whitsunday Regional Plan 2012) MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 11

14 Visitors usually come to the Whitsundays to experience the scenic tropical seas, beaches, reefs and islands of the region. Whether it be a guided or on-tour experience or just finding your own way, sailing, snorkelling, diving, visiting national parks, bush-walking and fishing are all popular activities; as are relaxing on the beach or at a resort, socialising or partying at a bar, dining out and shopping. World class tropical island resorts located in stunning settings offer a range of experiences targeting higher yield markets, e.g. health spa and beauty treatments; conference, incentives and events hosting; weddings and romance getaways; fine dining at top class restaurants. Domestic Visitors Top 10 The following tables lists Whitsundays visitors Top 10 activities YE June 2013 International Visitors Top 10 YE June 2013 Eat out at restaurants 74.8% Go to the beach (incl. swimming, surfing, diving) 97.2% Go to the beach (including swimming) 59.6% Eat out / dine at a restaurant and/or cafe 94.5% General sight seeing 44.8% Sightseeing/looking around 94.5% Go shopping (pleasure) 25.4% Go shopping for pleasure 86.2% Water activities or sports 23.5% Visit national parks / State parks 80.1% Visit friends and relatives 22.8% Snorkelling 77.9% Bushwalking or rainforest walks 21.6% Pubs, clubs, discos etc 74.0% Pubs clubs discos etc. 19.9% Charter boat / cruise / ferry 73.5% Visit national parks or State parks 17.1% Go to markets 71.3% Charter boat, cruise or ferry ride 15.9% Bushwalking / rainforest walks 70.7% (Source: International Visitor Survey (IVS) - Year Ended June , Tourism Research Australia and National Visitor Survey (NVS) - Year Ended June , Tourism Research Australia) The region is popular for annual sports and community events such as the Airlie Beach Race Week (sailing regatta); Schoolies Week; Airlie Beach Music Festival; Bowen Fishing Classic; Hamilton Island Race Week and growing events such as the Whitsunday Reef Festival, Airlie Beach Running Festival and Dirty Molle Island Escape (mountain biking event). Whitsundays experiences align with all four key themes that contribute to the Queensland Brand Queensland - Where Australia Shines; 1. Queensland Lifestyle... food, wine, produce, events, shopping, indulgence Queensland style 2. Islands and Beaches... reef experiences, water activities, surfing, beach culture 3. Natural Encounters... reef, rainforest, flora and fauna 4. Adventure... adventure activities, sailing, diving The tourism vision for the Whitsunday region is, By 2020 the Whitsundays will be globally recognised as one of the world s leading Tropical island and marine leisure holiday destinations The core brand promise is, Feel the wonder of Australia s island paradise. Whitsundays hero experiences are; Diverse Island Paradise - You ll be spoilt for choice in the Whitsundays 74 islands, from social to secluded, resorts to roughing it, active to indulgent. (Island resorts, camping, island national parks, day trips, walks and romance) Iconic Landscapes in the Heart of the Great Barrier Reef - The silky white sands of world famous Whitehaven Beach, the surprise of Heart Reef or any one of the stunning 74 islands; the magical beauty of the Whitsundays never leaves you MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 12

15 once you ve experienced this captivating part of the Great Barrier Reef. (Overnight boats, scenic flights to see iconic highlights, day trips, sailing, snorkelling and diving) Sailing, Flying, Snorkelling and Diving - Whether you re sailing on it, diving in it, or flying over it, the islands and reef of the Whitsundays is a mesmerising visual feast. (Range of sailing options, reef tours and island hopping, dive tours and charters) Airlie Beach and Mainland - Soak up the vibrant and social atmosphere of Airlie Beach, the gateway to the Whitsunday Islands, and be amazed by the contrasting colours of the surrounding landscape with its lush green rainforests and the vivid blue waters of the Great Barrier Reef. (Backpackers and youth, national parks, secluded beaches, day and overnight trips) (Source: Whitsundays Hero Experiences Fact Sheet) Key competitive strengths of the region are its; 1. Icons e.g. Heart Reef; Whitehaven Beach; Great Barrier Reef (one of the 7 Natural Wonders of the World and World Heritage Listed); Whitsundays Islands National Park. It is the only place in the world where there is reef in such quality and quantity! 2. Un-spoilt environment other natural attractions (e.g. 74 islands - 66 not developed, pristine beaches, fringing reefs, Conway N.P.); clean potable water; clean air/lack of air pollution; clean seas 3. Safe environment - safe/regulated food industry; low crime rates; political stability; safe/regulated passenger transport industry; etc. 4. Accessibility Two regional airports with Regular Passenger Transport (RPT) services; good road access (Bruce Highway; Greyhound Australia; local timetabled bus services; rental cars); Queensland Rail and year-round sea access (ports, marinas and safe mooring at islands and on the mainland); 5. Industry skills & experience mature industry; best practice focus; WMDL, WRC and TEQ knowledge, advocacy and support; 6. Diversity of product, accommodation; dining experiences; experiences; target markets; etc. MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 13

16 DESTINATION TOURISM PERCEPTIONS MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 14

17 Destination Tourism Perceptions The Whitsundays is well known as a place that is fresh, healthy, warm, friendly, fun, welcoming, positive, easy going and adventurous. Consumers perceive they can go there to relax and leave the cares of the world behind. It is most commonly nominated the best place in Queensland to experience tropical islands and resorts, and premier sailing.... While some consumers are willing to pay more to visit the Whitsundays, consumers often cite it as an expensive destination. (Source: The Whitsundays Brand Health Check 2013; TEQ) It is often considered a place where young people come to party and access the islands/reefs (social fun-seekers); and families and couples come to share time, reconnect and enjoy beaches and marine activities (connectors). There is no doubt that the numerous marine and nature experiences (diving and snorkelling the reefs; sailing and kayaking the islands; the Conway National Park Whitsunday Great Walk ) attract/appeal to the active explorers market segment. And stylish travellers (e.g. some resort visitors) and un-winders (e.g. grey nomads who spend winter months in caravan parks at Bowen) are prevalent in the region. (Note: for an explanation of the TEQ market segments see Appendix C) The following related information is sourced from the TEQ research publication, Whitsundays Social Indicators Of those Whitsundays residents surveyed; 70% wanted more tourists (compared to 45% Qld wide) Only 1% wanted fewer tourists; 74% like tourists (compared to 57% Qld wide); 67% were happy with continued development growth (compared to 59% Qld wide). Note: 25% wanted growth in a different direction; 99% agreed that tourism provided greater cultural diversity (compared to 92% Qld wide); 95% agreed that tourism provided important economic benefits (compared to 91% Qld wide); 89% agreed that festivals and events attract tourists and raise awareness (compared to 87% Qld wide); and 42% thought tourism had a negative impact of local character (compared to 29% Qld wide) From a resident s perspective, with approximately a quarter of jobs in the region being in the tourism industry and the Whitsundays lifestyle driving significant residential growth in Cannonvale over the past two decades, it is no surprise that there is great appreciation of and support for the tourism industry and its continued growth. MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 15

18 COMPETITOR ANALYSIS MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 16

19 COMPETITOR ANALYSIS In terms of destinations offering coastal or island holidays in tropical/subtropical climates; opportunities to dive and snorkel coral reefs; unspoilt environments; a place to escape your normal life and discover new experiences; a place to socialise and party; etc. the local industry (at a January 2014 workshop) identified the following competitors; Key Direct Competitors Cairns Southern Great Barrier Reef Bali Fiji Other Direct Competitors Cruise Ships Maldives Greek Islands Thailand Vanuatu It was also recognised that other key tourism destinations (such as Brisbane/Gold Coast; Queenstown N.Z.; ski resorts) are competitors. Importantly there is also competition for expenditure of disposable income from outside the tourism industry, e.g. Harvey Norman, paying off the mortgage, a new car The Whitsundays competitive advantages from both an international and national standpoint include; The Great Barrier Reef is one of the seven natural wonders of the world. It is World Heritage Listed and is the only place in the world where there is reef in such quality and quantity! The regions pristine natural environment. Because of its clean environment and waters and excellent management practices over decades the Great Barrier Reef; islands; fringing reefs; and mainland parks and reserves offer great diversity of habitats and ecosystems; fauna and flora and a wealth of associated experiences. It boasts 74 islands of which 66 are not developed and more national parks and walking trails than many competitors. Key icons such as Heart Reef and Whitehaven Beach The Whitsundays is a year-round sailing destination and one of the best sailing grounds in the world, supported by international quality marina developments, ports that are accessible year-round and a calendar of events Ease of access, e.g. good road and self-drive access; two regional airports; ports; ferry, cruise and boat hire equals easy access around the mainland, islands and to the Great Barrier Reef Value for money, i.e. in terms of all the above and in consideration of the high quality experiences and services on offer the Whitsundays offers great value for money. In addition, it is also noted that from an international perspective there is a unique opportunity in comparison to other overseas destinations to highlight that the Whitsundays is a very safe destination, i.e. safe in terms of a variety of factors, e.g. food, water, minimal crime, political stability, little infectious disease, regulated industries and services, reliable transport, excellent medical and emergency services. From a domestic viewpoint competitive advantages include strong brand recognition amongst consumers. MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 17

20 WHERE ARE WE NOW? MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 18

21 Where Are We Now? The region attracts visitors from a broad range of market segments including large numbers of international youth and adventure (backpackers) year-round, mainly from Europe and North America. Similarly the region is a year-round destination for the domestic market, particularly eastern seaboard connectors, social fun-seekers and stylish travellers visiting on a fly-drive holiday; and couples and families from the surrounding region (which has grown considerably in the past decade with the resources boom). Corporate business and incentive events; special events and romance/weddings are additional target segments that bring visitors in significant numbers to the region. Visitor numbers do decline during the peak of the summer wet season. Bowen is an extremely popular destination with the grey nomad market (unwinders and social funseekers) from May-October with boating, fishing, swimming and relaxing at a caravan park being popular beach side activities. Bowen also attracts 1,000 1,500 backpackers on working holidays from May-December annually to work in the fruit, horticulture and sugar industries. Proserpine is located inland on the Bruce Highway and attracts a combination of self-drive travellers taking a rest or short break; recreational fishers fishing for Barramundi at Peter Faust Dam and daytrippers from the main Airlie Beach tourist precinct 40km away. Collinsville is largely a coal mining town. Located 80 km inland from Bowen it traditionally attracts visitors to local events, the VFR market and self-drive tourists exploring alternative routes to destinations. Like many Australian regions, the Whitsundays tourism industry has had some tough times over the past decade. The GFC and strong Australian dollar over recent years resulted in a significant reduction in the numbers of European backpackers coming to Australia and to the region (see table below International Source Markets). Similarly many domestic tourists took advantage of the cheap international travel and headed overseas rather than holidaying at home. Tropical cyclones and the negative impacts of the Queensland floods in resulted in fewer visitors coming to Queensland and to the region. Whilst a majority of operators successfully traded through these tough times, some resorts and businesses did close. Fortunately many operators from the Airlie Beach district report a positive rebound in visitor and backpacker numbers over the past 6 months (due to a strengthening recovery of the European economy and weakening of the Australian dollar. For the financial year; There were 654,000 visitors to the Whitsundays who stayed an average 5.25 nights There was a 5 year trend of 3% negative growth in total visitor numbers, which can be attributed to the impact of the GFC and high Australian Dollar. Of these total visitors there were 181,000 international visitors who spent an average 7.12 nights each in the region This represented a 5-year trend of 4% negative growth in international visitor numbers but a 1% positive growth in night stays Approx. 95% of international visitors came for holidays There were 279,000 intrastate visitors who stayed an average 3.36 nights in the region There were 193,000 interstate visitors who stayed and average 6.23 nights in the region 70% of total visitors are for the purpose of holidays and 12% are VFR (visiting friends or relatives) Domestic visitor expenditure in the region was $577K for the year. International Visitor expenditure was $128K. Total expenditure was $705K There were an additional 249,000 domestic day trips to the Whitsundays, making a total of 903,000 visitors for the year. 59% of day visitors were from the Mackay region; 22% from the Whitsundays and 18% from the Northern region Data averaged over (3 years) indicates; 44% of internationals are from continental Europe; 28% from the United Kingdom and 12% from North America 13% of domestic visitors are from Brisbane; 36% from regional Qld and 51% from interstate (mainly NSW and Vic) MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 19

22 SUBJECT DOMESTIC VISITORS INTERNATIONAL VISITORS $ spend per night in the Whitsundays $251 (compared to $174 in Qld) $110 (compared to $94 in Qld) come by road - drive 52% 33% come by road coach or bus - 37% come by air 41% 25% stay in a hotel, motel, resort 36% - stay in rented house or apartment 16% 11% stay in friend or relatives property 15% - stay in serviced apartment 8% - stay in caravan park or commercial camp ground 7% 11% stay in backpacker or hostel - 35% travelling as adult couple 31% 26% travelling as family group 31% 4% travelling alone 11% 52% travelling friends and/or relatives group 21% 17% age group years 17% 39% age group years 18% 37% age group years 2% 8% age group years 17% 6% age group years 16% 7% age group 65 years and over 10% 4% The following table identifies trends in Whitsundays international visitors/source markets. INTERNATIONAL SOURCE MARKETS YE June 2008 YE June 2012 Ye June 2013 New Zealand 10,000 6,000 8,000 Japan 6,000 7,000 8,000 Hong Kong (SAR of China) 2,000 1,000 2,000 Korea 2,000 1,000 2,000 China (excludes SARs and Taiwan Province) 0 2,000 4,000 USA includes Hawaii 13,000 13,000 13,000 Canada 16,000 9,000 9,000 United Kingdom 65,000 42,000 48,000 Germany 29,000 21,000 26,000 Scandinavia 12,000 10,000 10,000 France 7,000 9,000 10,000 Italy 4,000 3,000 6,000 Netherlands 11,000 6,000 7,000 Switzerland 7,000 6,000 6,000 Other Europe 25,000 14,000 14,000 MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 20

23 Source: Data Analysis from a variety of TEQ sources, including: Whitsunday Tourism Profile, (Average annual data from year ending Dec 2009 to Dec 2012);Whitsundays Regional Snapshot (Year Ended June 2013). Statistics provided to WMDL in late 2013, sourced from; International Visitor Survey (IVS) - Year Ended June , Tourism Research Australia; National Visitor Survey (NVS) - Year Ended June , Tourism Research Australia; Survey of Tourist Accommodation, Australian Bureau of Statistics. Whitsundays current target markets are; Tier One (Primary); Connectors in Brisbane and Regional Queensland Social Fun-seekers in Sydney and Melbourne North America, United Kingdom, Germany and France Tier Two (Secondary); New Zealand, China, Scandinavia, Netherlands, Switzerland and Korea It is important to note that the Whitsundays lies at the top of the Bowen Basin and significant resources industry expansion (mainly coal mining and associated infrastructure construction) has driven up the residential population in the Mackay- Isaac-Whitsundays region by estimated 20-25% over the past decade (e.g. Mackay population has grown by over 27% to be approx. 120,000). As a result the Whitsundays has seen an 8% p.a. rise in the VFR market over the past 5 years (256,000 nights in to 417,000 nights in ). Tier Three (Emerging); Active Explorers in Sydney and Melbourne Taiwan, Hong Kong, Japan, India and Middle East MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 21

24 WHERE WILL WE BE IN 2020? MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 22

25 Where Will We Be In 2020? By 2020 the Whitsundays will be globally recognised as one of the world s leading tropical island and marine leisure holiday destinations. During the course of community consultation it was clear that there are a number of drivers or catalytic activities that will ensure that the Whitsundays meet its 2020 targets. Key drivers include: Better access into Whitsunday Coast Airport (more domestic direct flights and charter flights direct from China and New Zealand); More resorts/hotels (including a full service internationally branded hotel at Airlie Beach); Increased numbers of events creating a full annual calendar. Improved access to attractions and products (more tour operations and attractions etc.); Growth in cooperative marketing and packaging by local operators in partnership with WMDL and TEQ; and Increased infrastructure to support tourism growth. Other key drivers identified in the process include: Significantly more higher yield Chinese visitors; More short intense visits (higher yield and crammed with experiences); Improved services, social infrastructure and more retail diversity (more shopping centres, education and health facilities, entertainment and leisure facilities supporting a growing resident population and tourism industry); Better customer service and increased employment of local residents in tourism; Growth in cooperative packaging and marketing initiatives by local operators; Increased product/attractions for youth and families; Growth in delivery of experiences; More glamping; Increased regional and VFR visitors; New as well as refurbished island resorts; A regional tourism education/training facility (the Whitsundays recognised as a regional tourism centre of excellence). The Whitsundays 2020 goal is to raise annual visitor expenditure from $705 million in to $1.24 billion in That is a 75.9% increase or an annual growth of 8.2%. WHITSUNDAYS GROWTH GOALS TO ACHIEVE 2020 TARGET source of visitors number visitors average stay (number nights) total nights 000 s average $ spend/night (day) total $ 000 s contribution to annual visitor expenditure Domestic Qld 279, , ,360 $269* $333 $252,800 $452,880 Domestic 193, , ,203 1,656 $269* $333 $324,200 $561,448 Interstate International 181, , ,289 1,575 $99 $145 $128,000 $228,375 Subtotal 653, ,000 3,430 4,591 $705,000 $1,232,703 Domestic Day Trips 249, , $130** est. $170 est. $32,370 $51,000 Total 902,000 1,090,000 3,430 4,591 $737,370 $1,283,703 * Note: there is no analysis or breakup in statistics provided to differentiate the daily spend between intrastate and interstate visitors, so the same $269/night figure is used in this table. ** Note: Qld average is $113, so assume $130 MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 23

26 In summary, for the Whitsundays to reach the 2020 milestone/goal, between 2013 and 2020 the region will need to increase; Visitor numbers by 20.8%; The average length of stay by approx. half a day/ night (approx. 11%); Total number of nights in the region by 33.8%; The average spend/night (day) by approx. $58. The Deloitte Access Economics report, Queensland Tourism - Industry Outlook and Potential to 2020, for the Qld Department of Tourism, Major Events, Small Business And Commonwealth Games - August 2012, makes the following forecasts for the Whitsundays region; Both the TFC forecast and industry potential suggest strong growth in international visitor nights in the Whitsundays. The TFC forecasts indicate about 1.6 million international visitor nights are expected by 2020 (18% increase from 2010 levels), while the industry potential estimates 2 million visitors nights, which is a 48% increase from In terms of domestic overnight visitors, the TFC forecasts a relatively small growth of a total of 1.5% over the coming decade, while the industry potential shows a substantial increase of 24% by Current expectations on the domestic and international visitor market will drive a notable growth in total tourist expenditure forecasts in the Whitsundays by The outlook provided by the TFC forecast indicates that total expenditure will increase nominally by 56% by 2020, while the industry potential suggests 101% growth. In developing and prioritising strategies that will enable the Whitsunday region to achieve its 2020 goal, recent research and planning by state government provides valuable information. MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 24

27 MEGATRENDS MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 25

28 Megatrends The Future of Tourism in Queensland Megatrends, Creating Opportunities and Challenges over the Coming Twenty Years, CSIRO 2013 report identifies a series of megatrends that will impact on the Whitsundays over the next decade, in particular; The Orient Express Although currently Asian tourists are relatively few in percentage terms to the Whitsundays, being located in Queensland with easy air access from China, India and S.E. Asia, provides numerous opportunities for our industry/operators to take advantage of a growing Asian middle class (their capacity and desire to travel) providing we can provide an aspirational destination and offer valuefor-money. A Natural Advantage This emerges as both the greatest opportunity and biggest concern for the Whitsundays tourism industry. The regions industry is based on the relatively pristine marine environment of the Great Barrier Reef (GBR), Whitsundays Islands and fringe reefs; island and mainland national parks, protected areas, coastal precincts, beaches and other reserves. Pristine marine environments, fauna and flora diversity and sustainable ecosystems are at the heart of the Whitsundays product offering. With the current focus of our society on economic development and population growth this raises some challenges for the Whitsundays. It is reported that there has been a loss of fringing reefs/corals and that the reef (GBR) has already lost a proportion of its coral cover (for various reasons). However, if the region/industry and partners are able to halt the degradation of the natural environment, this places the Whitsundays in an enviable position in a global environment where biodiversity and natural habitats are disappearing at alarming rates. Great Expectations The bulk of the attraction of the Whitsundays as a destination, is centred on opportunities to interact with the natural environment, an appreciation of the unique experiences on offer (aspirational destination) and socialising. It is already a genuinely authentic destination and the key is to not lose this. Bolts from the Blue As a coastal tropical destination the region is already well accustomed to dealing with the unpredictable effects of adverse weather conditions, such as cyclones and associated storm surges (flooding from heavy rain events and sea level rises/high tide surge events). Forecasts are that ongoing climate change will result in increased intensity of such natural events. The region needs to identify how to turn these predicted natural events/ disturbances to our advantage. Although exchange rates are now more favourable, the region knows what impact a high $A has in deterring international visitors and a rising $A is always a possibility in the fluctuating fortunes of world economies. The domestic visitor is and will remain crucial to the Whitsundays tourism industry. Digital Whispers The region has a mature tourism industry. Many operators and businesses are well versed and have extensive experience in utilising the digital world to their advantage. Yet many need to better leverage opportunities presented by related WMDL and TEQ key destination assets. It will always be an ongoing challenge in the digital age to ensure all businesses, from micro-businesses to large corporations, are taking full advantage of the opportunities available within and ability to manage the online world. On the Move The region is well aware of growth opportunities associated with its clean food produce (agriculture, horticulture, aquaculture, fishing industries). The Region s appeal will grow as a business, events, conferences, romance and weddings destination. The Lucky Country Although Australia has weathered the GFC comparatively well, the region recognises its limitations in terms of high labour costs and other input costs. Our focus is in delivering value for money experiences rather than lowest cost. MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 26

29 TOURISM AND EVENTS QUEENSLAND 2020 STRATEGIC MARKETING PLAN MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 27

30 Tourism and Events Queensland 2020 Strategic Marketing Plan The Whitsundays product, experiences and opportunities align strongly with the state marketing directions and opportunities identified in the 2020 Strategic Marketing Plan Tourism And Events In Queensland (2012 Publication). As follows: As one of the Great Barrier Reef regions the Whitsundays is fortunate in that the Reef has tremendous visitational pull at an international level; The Whitsundays also has a specific visitational pull for niche opportunities, e.g. the wedding, sailing and incentives markets; To maximise the effectiveness of marketing efforts the Whitsundays has an ongoing program of reviewing/fine-tuning the effectiveness of its brand (positioning, recognition, delivery); WMDL has a Tourism Whitsundays Events Innovation Strategy (2011) that forms an agreed basis for events development in the region. However further opportunities to align events with leisure, healthy lifestyles and underutilised product and resources exist and will be pursued; There are numerous opportunities for the Whitsundays to;» Convert day trippers to overnight visitors» Increase visitor expenditure from VFR» Focus on fewer marketing activities with greater impact WMDL will continue its digital focus to ensure related marketing leverages the credibility, authenticity and immediacy of digital and social media opportunities as they continue to emerge and evolve. Whitsundays target markets align with the state 2020 Marketing Plan aims, e.g. to» To nearly double visitor expenditure from Victoria, NSW, rest of Australia and New Zealand markets by 2020 (all of which are Whitsundays key markets)» To raise intrastate and international visitor expenditure, specifically from the USA and UK markets (which are important international markets for the Whitsundays); MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 28

31 QUEENSLAND ECOTOURISM PLAN MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 29

32 Queensland Ecotourism Plan Many Whitsundays experiences are based on pristine natural environments (marine and terrestrial); discovering Australia (nature, people, culture); and enjoying healthy lifestyle outdoor activities. There is strong alignment between the direction the Whitsundays region wishes to take in growing the tourism industry and the Queensland Ecotourism Plan , e.g. we share the vision for Queensland to be, Australia s number one ecotourism destination and recognised as a world leader in ecotourism, delivering best practice nature-based experiences that contribute to the conservation of our natural resources and cultural heritage. The Whitsundays Islands and Great Barrier Reef already have recognition as world-class beauty and natural environments. The region has numerous eco-tourism accredited businesses providing worldclass nature based activities and experiences. To grow sustainable eco-tourism the Whitsunday Region can: Advocate for development control and government decision making to ensure that the regions natural environments and eco-systems are protected; Develop opportunities to engage visitors in experiencing the regions parks, reserves, marine environments, etc. with a particular focus on new or refreshed events, products and infrastructure that;» Realigns existing experiences to remain relevant to traditional markets and engages new markets» Grow the number of overnight and day-trip visitors wanting to participate in nature-based activities» Capitalise on the increasing number of visitors seeking active engagement and improved wellbeing from their holidays Development of a Whitsundays Airlie Beach Marine Discovery Centre, a facility providing excellence in interpretation drawing on science, research and storytelling to provide visitors with an enriching experience. MORE VISITORS INCREASED LENGTH OF STAY INCREASED SPEND PER DAY 30