Gold Coast Tourism Corporation. Annual Report 2009/2010

Transcription

1 Gold Coast Tourism Corporation Annual Report 2009/2010

2 Contents Chairman s Summary... 4 Chief Executive Officer s Summary...6 About Us...8 Our Marketing Approach...10 Australia Marketing Summary International Marketing Summary Convention Bureau Marketing Summary Membership Services Summary Financial Statements...22

3 Chairman s Summary This year, for the first time in its reporting history, the World Tourism Organization detailed negative growth for the global tourism industry. This statement, without being alarmist, gives necessary perspective to the environment in which Gold Coast Tourism and our almost 500 member businesses have been operating. The Australian tourism industry acknowledged the effects of a lingering GFC and a strong Australian dollar with flat international visitation for the year. A disturbing highlight in these numbers, was the gap between Australians travelling overseas and international visitors to Australia widening to above the one million mark in a 12 month period for the first time. Despite this slowing in global and national tourism, the Gold Coast increased its international visitation for the year by 5% to 826,000. This result is even more impressive when compared to the 2% decline in international visitors to Queensland. Travel by Australians to the Gold Coast was also above state and national trends, with the Gold Coast outperforming most other destinations to achieve a 3% increase in domestic overnight visitors to 3.3 million compared to the 3% decline in domestic overnight visitors for Queensland as a whole. At a time when construction on the Gold Coast came to a virtual standstill, the tourism industry stood tall, underpinning the local economy and preserving thousands of jobs. This ability to sustain numbers in a declining market is testament to the work undertaken by all involved in marketing and promoting the destination. The very credible result is also of great credit to the professionalism, planning and endeavour displayed by Gold Coast Tourism. At the same time we have kept domestic tourism and Business Events on the radar. The drive market, which attracts more than 3.6 million visitors each year, has received heavy investment for a multitude of year-round tactical programs and interstate spend in the key cities of Sydney and Melbourne sits at record levels. Business Events high yield has continued to be recognized, and although 2009 was a lean year, forward prospects are looking good. The aviation sector, without which the industry would fail, has also had an outstanding year. Both Gold Coast and Brisbane airports have reported record passenger movements, additional services and new operating airlines. I wish to acknowledge: the Mayor, Councillors and management of the Gold Coast City Council for their commitment to tourism through GCT; my fellow Board members whose tireless work often goes unrecognised but which is so important to our industry; the management and staff of Gold Coast Tourism that make everything happen so seamlessly, and finally; our local, intrastate and national industry partners who invest both their faith and finances with us for the common good. Notwithstanding the challenge that the Gold Coast faces with aging infrastructure and stronger than ever competition, I believe the industry has a very bright future. Gold Coast Tourism takes the responsibility invested in it very seriously. By harnessing the unqualified support it receives from the Gold Coast City Council and industry it can confidently enter the forthcoming year with optimism. Gold Coast Tourism made decisive decisions and executed even more innovative programs in 2009/2010. Foremost amongst these was the decision to invest in a new brand, which will roll out in time for the peak summer holiday marketing period. The fresh creative captures the very essence of the Gold Coast and why we have been Australia s favourite holiday playground for more than half a century. Internationally, steps were taken to capitalise on the anticipated growth out of China by opening an office in Shanghai, and appointing an in-market representative. By working closely with our partners from Tourism Australia and Tourism Queensland, the combined effort has leveraged many millions of valuable marketing dollars for the region. Gold Coast Tourism can confidently enter the forthcoming year with positive optimism / 10 Annual Report I 4 Paul Donovan Chairman Gold Coast Tourism Ltd 2009 / 10 Annual Report I 5

4 Chief Executive Officer s Summary Over the past 12 months, we have acknowledged the impacts of the global recession on domestic and international tourism as a matter of fact. However, this has not changed our determination to grow tourist numbers and expenditure for the City of Gold Coast. Singapore office and redirecting our resources to Shanghai, where we now have a full time representative building the Gold Coast s trade credentials as Asia s favourite holiday destination and driving demand from consumers. Key Challenges Increase visitor length of stay and expenditure Grow market share of national business events sector Maximise the potential of our Chinese investment and new direct flights Stimulate aviation capacity and new routes at both airports Capitalise on sport tourism, including the 2018 Commonwealth Games bid Motivate interest and investment of new major events for the city Champion projects of the Gold Coast Tourism Opportunities Plan from possibility to reality Contribute positively to the Gold Coast image The achievement of this, particularly when compared to the general decline in tourism to Queensland and our competitor destinations is an exceptionally positive and hard fought outcome. Gold Coast Tourism s contribution to this result was to focus all our destination marketing resources on high return activity, and extend our expenditure by leveraging the work of Tourism Australia and Tourism Queensland. Our prime objective continued to be the generation of demand from leisure and business travellers to enable industry to capitalise by converting visitor opportunities into booked business. By further increasing internal Staff in our two Visitor Information Centres in Surfers Paradise and Coolangatta continued their great work in providing visitors with a friendly welcome and professional service, meeting the needs of nearly a quarter of a million visitors. The Gold Coast Convention Bureau, a business unit within Gold Coast Tourism, submitted 162 bids for conference, incentive and corporate meetings, winning 65 for the destination which produced an economic impact of $24,080,934. In addition, 63 bids remain pending at the end of the year, promising further positive results in 2010 and beyond. By further increasing internal efficiencies, the total funds devoted to marketing increased by 15% to 86% of total expenditure. efficiencies, the total funds devoted to marketing increased by 15% to 86% of total expenditure. At the same time, Gold Coast Tourism produced an outstanding financial result by applying tight management control. This delivered an operating surplus of $1.65 million which not only underpins the company s sustainability, but also facilitates its ability to react positively to emerging opportunity. Close scrutiny of all expenditure ensures the best return on investment for our funds. The generation of $38 million in unpaid media exposure over the year through effective public relations activity highlights the results that Gold Coast Tourism has achieved through our focus on efficient resource management. Because of our commitment to corporate operations, Gold Coast Tourism was able to roll out an extensive number of high quality domestic and international campaigns, familiarisations and sales missions in 2009/2010 which delivered positive results for the destination. At the same time, several excellent staff appointments were made to ensure the delivery of the programs and to improve the capability of the company going forward. In recognition of the great potential that lies in China, we acted decisively by closing our There is no doubt that some sectors of our industry will continue to struggle with the prolongation of the market downturn, the strong Australian dollar and the timing of Ramadan more than others. The immediate challenge for Gold Coast Tourism is to respond to these issues over the forthcoming year and to continue to grow demand. At the same time we must also look to the future to ensure the destination maintains relevance in the context of changing consumer expectations, and to deal effectively with the real issues of aging infrastructure, public safety, workforce skilling and destination image. On behalf of the entire Gold Coast Tourism team, I wish to thank our members; industry partners; key stakeholders; the Mayor, Councillors and management of the Gold Coast City Council; and our chairman Paul Donovan and the Gold Coast Tourism Board for their continuing confidence and faith in our operations. The tourism industry is fundamental to the economic future of our city, and I look forward to working again in a collaborative manner in the year ahead to strongly contribute to its growth and prosperity / 10 Annual Report I 6 Martin Winter Chief Executive Officer Gold Coast Tourism Ltd 2009 / 10 Annual Report I 7

5 About Us Gold Coast Tourism is a not-for-profit, membership based, destination marketing organisation structured to promote the city as a leisure and business event destination through global and domestic trade, media and travel industry channels. We represent a membership base of approximately 500 accommodation venues, theme parks and attractions, tour operators, restaurants and cafes, entertainment venues, transport providers and professional support services. Furthermore we work on behalf of almost 27,000 commercial businesses which contribute to our operation through a tourism levy. Our industry partnerships span all levels of tourism authority including, but not limited to, Tourism Australia, Tourism Queensland, Gold Coast City Council, Connecting Southern Gold Coast, Broadbeach Alliance and Surfers Paradise Alliance. Vision For the Gold Coast to be recognised locally, nationally and internationally as one of the world s great tourist and business events destinations. For Gold Coast Tourism to be universally acknowledged as a successful, globally aware destination marketing organisation that embraces a culture of continuous improvement, customer focus, current technology, contemporary leadership and excellence. Mission To grow tourist visitation and expenditure to the Gold Coast, thereby facilitating wealth generation in the tourism and business events sectors for the benefit of stakeholders and the community. To add value to members through promotion and destination awareness. Business Goals Increase visitor arrivals and expenditure to the city Operate with a sustainable business model Deliver value to members Deliver business outcomes based upon quality research, best practice and return on investment Apply available resources in the most effective and productive manner Identify and invest in growth opportunities Build the capacity of the Gold Coast Convention Bureau Demonstrate industry and destination management leadership Establish Gold Coast Tourism as an employer of choice Brand Values The Gold Coast is Australia s playground. It is a welcoming, vibrant, diverse, fun and entertaining destination. These values are reflected in the work of Gold Coast Tourism. Our Role Tourism directly contributes $4.6 billion into the Gold Coast economy annually and accounts for 19,000 full time equivalent jobs in the city. Established in 1975, Gold Coast Tourism employs a staff of marketing and sales professionals to positively promote the destination. Our work generates exposure and converts the interest of potential leisure and business consumers from outside the Gold Coast region into visitation for the businesses of the city. Our strategies and activities are developed in consultation with the local industry, local council, state and national tourism bodies, national and international travel trade and other industry partners / 10 Annual Report I / 10 Annual Report I 9

6 Our Marketing Approach Internationally, we leverage our cooperative partnerships even further to enhance our spend and gain greater reach. Gold Coast Tourism s focused and strategic approach to marketing the Gold Coast as a holiday and business events destination ensures we achieve maximum value from our investments of time, resources and budget. In our largest market, Australia, we balance independent and cooperative activity depending on season, sector and circumstance. Our cooperative activity includes regular campaigns with Gold Coast Tourism member businesses, Surfers Paradise Alliance, Broadbeach Alliance, Connecting Southern Gold Coast, Gold Coast Airport, Tourism Queensland, travel retailers and airlines. Internationally, we leverage our cooperative partnerships even further to enhance our spend and gain greater reach. Our chief international marketing partners are Tourism Queensland, Tourism Australia and international airlines. The primary markets in which we are most active are judged on six key criteria. They are: Current visitor volume or expenditure to Gold Coast Forecast outbound visitor volume or expenditure Current or probable aviation access into Gold Coast or Brisbane airports Priority regions identified by Tourism Queensland and Tourism Australia Fit with psychographic profile Gold Coast holiday segmentation: Social Fun Seeker Connector Experience Seeker Gold Coast Tourism operates to promote the destination image and attract leisure and business event visitors to the city. This is executed through five main categories of activity. They are: Marketing Campaigns and Promotions Public Relations Trade and Consumer Shows Sales Calls Media and Trade Familiarisations Marketing activity direct to consumers primarily consists of traditional above-the-line advertising media promoting holiday experiences, packages and airfares to the Gold Coast throughout peak and off-peak periods. Promotions and public relations work is generally organised to complement the marketing campaigns through below-the-line channels such as events, social media and publicity. Trade and consumer shows enable us to update and educate the travel wholesalers, inbound tourism operators, professional conference organisers and travel agent networks which are crucial influencers of travel to the Gold Coast. It is also important to visit the markets to conduct sales calls and talk first hand with consumers, travel agents, wholesalers, airlines and representatives of Tourism Queensland and Tourism Australia. Tourism marketing is a business built on relationships and it is necessary to meet face to face several times throughout the year to ensure the destination remains relevant and understood. This is especially important in the Business Events arena where professional conference organisers recommend the Gold Coast to their clients for conference and incentive events. Bringing targeted media or trade representatives to experience the destination first hand has proven to be one of the most effective ways to gain exposure or advocacy for the city within a highly competitive environment. Throughout the year we will host hundreds of media and trade contacts whose personal experience goes on to positively influence millions of their audience or clients / 10 Annual Report I / 10 Annual Report I 11

7 Australia Marketing Summary Highlights Campaigns Tourism Queensland / Wotif, National - September 2009 Infinity Holidays / Escape Travel, National - November 2009 Tiger Airways, National - November 2009 and February 2010 Virgin Blue / Blue Holidays / Tourism Queensland / Gold Coast Airport, National - January 2010 Tourism Australia / Harvey World Travel/Qantas Holidays /Mantra Group, National - March 2010 Flight Centre / Tourism Queensland / Infinity Holidays /Virgin Blue, National - May 2010 Winter Regional Press, National - June 2010 YourCoast Campaign 1-6, South East Queensland - July 2009 to June 2010 Familiarisations Qantas Achievers, National - March 2010 Domestic Wholesale Challenge, National - July 2009 Travel Managers Conference, National - November 2009 Harvey World Travel Residential School, National - November 2009 APN Newspapers Journalists Rugby League Weekend, National - May 2010 Courier Mail Journalist Rugby League Weekend, Queensland - June 2010 The Australia Marketing Department delivered a comprehensive calendar of national activity with particular focus on our largest visitor source markets of Brisbane, Sydney, Melbourne, regional Queensland, and regional New South Wales. We have been dedicated to developing and delivering cooperative marketing campaigns on behalf of the city. By cooperating with a partner or group of partners, we have greatly increased our campaign budgets, significantly extended the life of our campaigns, and demonstrably improved campaign conversion. In short, by collaborating with partners such as Tourism Queensland, Flight Centre, Wotif Group, Jetstar, and many others, we have generated bigger campaigns and more visitor bookings. Missions Carnival of Flowers, Toowoomba - September 2009 Mr Summer Roadshow, Sydney and Melbourne - November 2009 Austereo Roadshow, Sydney and Melbourne - May 2010 Primex Consumer Show, Northern NSW - June 2010 A continued push to bring Brisbane and south east Queensland residents back to the Gold Coast has proven timely and successful. Television, cinema, print, radio, digital and outdoor advertising has been maintained in this four hour drive radius throughout the year with YourCoast.com.au being the main conversion platform. YourCoast has been well supported by GCT members promoting their quarterly offers through the site. And finally, the Gold Coast Tourism Sporting Strategy has developed over the past 12 months. In addition to our established support of major events and other City Council funded events, the Australia Marketing Department has increased our cooperative activity with national sporting teams in the promotion of the City as a short break sporting event option / 10 Annual Report I / 10 Annual Report I 13

8 International Marketing Summary Highlights Campaigns Familiarisations UK Etihad Agents Famil, United Kingdom - September 2009 Daks Kids Famil/Photo Shoot, Korea - October 2009 Super GP Media Famil, Singapore - October 2009 AirAsia X Bumi Photo Shoot - November 2009 Jetstar Mega Famil, Japan - November 2009 Discovery Channel Asia Shoot, South East Asia - January 2009 Agent Mega Famil, New Zealand February 2010 ATEC Inbound Famil and Workshops, National - March 2010 JATA Wedding Famil, Japan - January 2010 Lawand Agent Famil, Middle East - April 2010 Sales/Trade Missions Indian Mega Famil/Workshops, India - August 2009 China Sales Roadshow, China and Hong Kong - August 2009 GCT Japan Mission, Japan - September 2009 WYSTC Convention, United Kingdom - September 2009 Greater China Travel Mission, China - November 2009 Middle East Roadshow, Middle East - February 2010 Flight Centre Travel Expo, New Zealand - February 2010 NATAS Consumer Travel Fair, Singapore - February 2010 JAM/KTM, Japan and Korea - January 2010 MATTA Consumer Travel Fair, Malaysia - March 2010 Hanjin Home Shopping, Korea - September 2009 AirAsia X Big Fun Tiny Fares, Malaysia - October 2009 Japan Airlines Group, Japan - October 2009 STA Backpacker, UK - January 2010 FTI Online and Instore, Germany - February 2010 Consumer Direct Newspaper Supplement, New Zealand - February 2010 SETTour, Taiwan - February 2010 Kesari, India - May 2010 Jin Jiang, China - May 2010 Al Rais, Middle East - June 2010 The International Marketing Department has increased promotion and understanding of the Gold Coast across our seven key international source markets of New Zealand, Japan, China, South East Asia, India, Middle East and the United Kingdom. We have been focused on continually improving the destination s exposure and conversion through the various travel trade and travel distribution channels in each of these key markets and in additional markets including Korea, the United States and Taiwan. Effort has been made to constantly educate international travel agents on Gold Coast product, partner with travel trade and airlines in consumer direct campaigns and align the Gold Coast with established and credible brands in each market. Furthermore, we undertook a strategic review of our South East Asia and China operations in This facilitated a minor restructure of staff and expertise which included the appointment of dedicated marketing resources for Greater China and Asia / Middle East, along with the opening of a representative office in Shanghai, China. Finally, it must be noted that very few of Gold Coast s key international source markets were unaffected by the combination of the global economic crisis, the H1N1 influenza and Australia s strengthening dollar over the past 12 months. As such, the Gold Coast s increased visitor and visitor expenditure performance compared to lacklustre state and national trends has been exceptional / 10 Annual Report I I / 10 Annual Report I 15

9 Convention Bureau Marketing Summary The Gold Coast Convention Bureau has achieved significant outcomes in the domestic and South East Asian markets over the past 12 months, and our tactical expansion into China and India has progressed to plan. With a renewed strategic and resource focus on bid development and conversion, we have become a more aggressive competitor in the association bidding arena. This was evident with our International Congress and Conference Association (ICCA) global ranking improving by 49 spots from 202 to 153 on the influential scale of serious congress destinations. The Gold Coast s international reputation was further enhanced when our bid to host the prestigious ICCA 2013 Conference was short listed with Shanghai and Houston. Despite Shanghai winning the 2013 bid, we were able to establish a new level of credibility for the city amongst the world s professional conference leaders. We have enhanced the quality and quantity of internal research processes, leading to greatly improved efficiency in our sales and bidding efforts. Similarly, the establishment of working relationships with Gold Coast and Brisbane based universities has proven very effective in converting association bids into business for the city. Finally, our commitment to generating wide MICE media coverage has been well executed, with every key industry media outlet covering Gold Coast products, events, features or themes throughout the year as a result of our proactive story pitching and content distribution strategy. Highlights Bid Activity Bids Submitted Bids Won - 65 Bids Value - $24,808,934 Familiarisations Corporate Famil, South East Asia - January 2010 Corporate Famil, India - January 2010 Post AIME Famil, Australia and International - March 2010 Air New Zealand Top PCO Famil, New Zealand - May 2010 Emirates Premium Group Famil, New Zealand - May 2010 Sales/Trade Missions Sales Calls Conducted Site Inspections Hosted - 26 Shanghai Expo Event, China - June 2010 TABEE, China - March 2010 ICCA Congress, Global - October 2009 EIBTM, Global - December 2009 IMEX, Global - May 2010 Dreamtime, Global - October 2009 AIME, Global - March 2010 MEA National Conference, Global - April 2010 PAICE, New Zealand - September 2009 Associations Forum National Conference, Australia - July 2009 AACB Staff Conference, Australia - September 2009 PCO Association National Conference, Australia - December / 10 Annual Report I / 10 Annual Report I 17

10 Membership Services Summary All Members by Category Table: Gold Coast Tourism Members by Business Type 2009/2010 Transport Venue Tours Accommodation 481 Suppliers At June 2010 there were 481 Gold Coast Tourism members. Org/Assoc Hire Events Attractions The Membership Services Department has increased the number and range of our membership base over the past 12 months, facilitating a greater representation and perspective of local business to inform the strategy and activity of the peak tourism body. At June 2010 there were 481 Gold Coast Tourism members. Engaging with members through one on one visits, frequent industry events, regular news communications, special training programs, and a variety of marketing opportunities has been the dedicated approach of the new Membership Services Department this year. The introduction of a three phase member meeting cycle has increased consistency and efficiency of member relationship management and generated better communication and increased contact between Gold Coast Tourism and our valued members. The second annual Member Survey identified a continued increase in member satisfaction. On a five point scale (five being very satisfied), we recorded an averaged score of compared to 3.1 for the same criteria in the previous year / 10 Annual Report I / 10 Annual Report I 19

11 Financial Statements For the year ended 30 June 2010 Contents Directors Report...22 Statement of Comprehensive Income...25 Statement of Financial Position Statement of Changes in Equity...27 Statement of Cash Flows Notes to and Forming Part of the Financial Statements Auditor s Independence Declaration...44 Directors Declaration...45 Independent Auditor s Report...46

12 Directors Report 2009 / 10 Annual Report I / 10 Annual Report I 23

13 Directors Report (cont.) Gold Coast Tourism Corporation Limited ACN Statement of Comprehensive Income For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 25

14 Statement of Financial Position As at 30 June 2010 Gold Coast Tourism Corporation Limited ACN Statement of Changes in Equity For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 27

15 Statement of Cash Flows Gold Coast Tourism Corporation Limited ACN For the year ended 30 June 2010 Gold Coast Tourism Corporation Limited ACN Notes to and forming part of The Financial Statements For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 29

16 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 31

17 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 33

18 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 35

19 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 37

20 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 39

21 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 41

22 Notes to and forming part of The Financial Statements (cont.) For the year ended 30 June / 10 Annual Report I / 10 Annual Report I 43

23 Auditor s Independence Declaration Gold Coast Tourism Corporation Limited ACN Directors Declaration 2009 / 10 Annual Report I / 10 Annual Report I 45

24 Independent Auditor s Report 2009 / 10 Annual Report I / 10 Annual Report I 47

25 Gold Coast Tourism Corporation Annual Report 2009/2010 PO Box 7091, GCMC Queensland 9726 Australia Level 2/64 Ferny Avenue, Surfers Paradise, Queensland 4217 Telephone: Facsimilie: VisitGoldCoast.com ACN