Australia Inbound Tourism Snapshot
Fueled by Chinese demand for primary resources, Australia’s economy continues to be strong. Unemployment remains low (5.6%) as does inflation (1.5%) and the economy has shown ten (10) consecutive years of growth. Australia has a small population of 22.7 million, but 6.8 million of those take overseas trips, equating to 31 overseas trips for every 100 residents; everyone travels – youth, families, and baby boomers.
Australians travel all year round to the U.S. but the most popular months are between April – September. Over 60% of Australian visitors are repeat travelers to the USA, which bodes well for capturing market share. According to the Brand USA Market profile, the five (5) top motivators for Aussies choosing long-haul destinations are local lifestyle, cultural/historical attractions, beaches/seaside attractions, shopping, and dining/culinary. They view the USA as diverse, energetic, friendly, adventurous, and trendy.
In 2017, the exchange rate will likely continue to widen as the U.S. dollar continues to strengthen. The exchange rate's impact will be felt mostly on spending. Modest growth is expected in 2016 with an uptick into 2017. Growth will be driven more by total cost of travel as airfares will likely remain reasonable to help offset the exchange rate to the U.S. dollar.
Overall, economic concerns will drive a more conservative outlook by consumers and businesses. Economic growth will improve as the economy adjusts and becomes less reliant on commodities/resource sector and more on household consumption. Economic policies should keep an economic downturn at bay. The housing market is still a concern but less so going forward.
Highlighting semi-free experiences (outdoors, museums, sightseeing, small towns, etc.) is likely going to be a key driver. Special interests (music, culture, etc.) will pull in those that still have the income but looking or a less luxury-oriented trip. Value packaging and working with the travel trade will need to be key parts of the strategy to attract visitors.
Travel Profile - Australia
| Travel South USA Region
(12 state region)
|Yr/Yr % Change|
|Number of Visitors||192,000||128,000||+50%|
|Travel South Share of Market||13.3%||9.8%||+35.7%|
|Sources: US Department of Commerce, Travel Market Insights|
- Consumers are opting for more event-focused holidays: attending specific music, sporting, or cultural events
- Consumers will pay for luxury products which are comparatively less expensive than in Australia; however, as the U.S. dollar increases, value for the money will be of additional importance
- Consumers look for authentic travel experiences and wish to discover lesser-known destinations
- Consumers have increased demand for a variety of accommodations such as boutique hotels
MARKETING & SALES ACTIVITIES
Travel South USA has a year-round investment in research, travel trade strategies, along with earned, owned and paid media to amplify our efforts in-market. Commissioned research along with monthly trend reports and a comprehensive tour operator analysis is provided to state tourism offices participating in the Global Partner Program. Travel Trade strategies and tactics include sales missions, trade shows, workshops/training regional road shows, cooperative event marketing with Brand USA and recruitment of tour operators buyers to International Showcase & Super FAMs. Earned, owned and paid media strategies and tactics include hosting visiting journalists, FAMs, social media campaigns, and cooperative advertising efforts B2C.
|Tour Operator Brochure Analysis|
|Tourism Economics & Travel Market Insights Commissioned Studies|
|Visit USA Roadshows||Cairns & Townsville||October 25 & 25, 2016|
|International Showcase & Super FAMs||Atlanta, GA & Region||November 28-December 3, 2016|
|Visit USA Expo||Brisbane, Melbourne, & Sydney||February 2017|
|TSUSA Bourbon, Blues & BBQ Sales Mission||Auckland, Sydney, & Brisbane||June 19-24, 2017|
|International Showcase & Super FAMs||Charleston, SC & Region||November 27 - December 2, 2017|
Earned, Owned, & Paid Media
| Distribution of Travel South USA Inspiration Guide
Produced by Brand USA / Miles Media
|Social Media Campaigns|
|Co-op Marketing with Key Tour Operators|