THE VALUE OF TOURISM - Deloitte
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THE VALUE
OF TOURISM
June 2021
foreword
Tourism is a vital industry and crucial to Australia’s
economic prosperity. As a country with world-class
offerings in nature, wildlife, produce and cultural
experiences, it should be of no surprise that the
tourism industry was one of the fastest-growing
sectors of the Australian economy prior to the
COVID-19 pandemic. Supporting 1 in 12 jobs in
Australia, the industry is the lifeblood for many
communities – particularly those in regional areas –
Koalas,
driving economic activity across the country through Queensland
almost 300,000 tourism-related businesses.
However, since the COVID-19 pandemic, economies
VALUE OF TOURISM WHI TEPAPER
VALUE OF TOURISM WHI TEPAPER
around the world have suffered enormously, and more competitive as countries look to reinvigorate
in Australia, the tourism sector has been hit their tourism industries as part of their economic
particularly hard. Domestic and international recovery strategies following COVID-19. Australia’s
travel restrictions, together with health concerns, tourism sector could be in a vulnerable position if
have caused a loss of confidence in travel. This travel restrictions remain in place after competitor
loss of confidence has resulted in severe impacts nations have re-opened for tourism, resulting in
to Australian tourism including an estimated loss travellers who would otherwise consider travel to
of $10 billion a month to the Australian economy. Australia opting to travel to another country with
There remains a relatively high degree of uncertainty similar attributes instead.
2
3
around international and domestic borders which Yet, there are encouraging signs in Australia’s
will continue to affect the industry’s recovery. tourism recovery from the COVID-19 pandemic.
International working holiday makers and Today, some regions in Australia are experiencing
international students provide a critical unprecedented levels of demand, and consumer
contribution to Australia’s economy and culture. confidence in travel is continuing to rise as lockdowns
Australia is the fifth most popular destination for and border closures become less frequent. There is
international students globally, with approximately an immediate opportunity in this rising optimism,
450,000 international students choosing to study to further encourage Australians to approach their
and explore Australia in 2019. Likewise, working domestic travel as they would international travel -
holiday-makers play a vital role in our nation’s staying longer, spending more and taking advantage
economy. Not only do they fill critical seasonal and of more of the tourism experiences that would
regional skill shortages, but they also cover skills- ordinarily be so popular with international tourists in
gaps within our tourism and hospitality industries. Australia. The travel industry is in a constant state of
As a cohort, they contribute approximately $1.5 change, and with change comes both challenges and
billion in labour income to the wider Australian opportunities. This paper seeks to explore both the
economy. Domestic tourism alone cannot wholly challenges and optimism of Australian tourism as it
fill the vacuum of lost international tourism and its embarks on the road ahead.
contribution to the economy through international
visitors’ spending or their contribution of skills.
Australia’s position as a world-class destination for
high-yield travellers is not guaranteed. The global Ningaloo,
landscape for tourism is expected to become even Western Australia
contents Lake Gairdner National Park,
South Australia
Foreward 2 Charts
Acronyms 6 Chart 3.1 : Direct tourism as a percentage of GDP of top 20 countries in terms of value (USD) 28
VALUE OF TOURISM WHI TEPAPER
VALUE OF TOURISM WHI TEPAPER
Executive summary 8 Chart 3.2 : Tourism expenditure mix in Australia, 2009 to 2019 29
1 Introduction 14 Chart 3.3 : Share of Australian services exports, 1975 to 2019 30
1.1 Context 14 Chart 3.4 : Correlation between Australian international tourist arrivals and merchandise exports, 2018 31
1.2 State of play and current challenges 14 Chart 3.5 : Past purpose of visit among international education visitors 32
2 The picture of Australian tourism 16 Chart 4.1 : Tourism expenditure impact in urban and regional Australia, 2018-19 36
2.1 A nation of travellers 16 Chart 4.2 : Relationship between tourism contribution to GRP and GRP per-resident, 2018-19 37
2.2 The tourism ecosystem 18 Chart 4.3 : Estimated number of jobs worked by working holiday makers 39
5
4
2.3 Australia: a world-class international destination 20 Chart 4.4 : Estimated proportion of occupations filled by WHV holders 40
2.4 Tourism businesses and employment 24 Chart 4.5 : Vacancies for occupations that tend to employ working holiday makers 41
3 Tourism is a critical contributor to Australia’s economy 28 Chart 5.1 : Share of industry employees with the skills for the future, 2019 44
3.1 The success of tourism in Australia 28 Chart 5.2 : Composition of international arrivals by proportion of repeat visitors, 2019 45
3.2 Tourism – an integral part of the broader economy 30 Chart 5.3 : International education share of international trips, nights and expenditure in Australia, 2019 47
4 Tourism is even more important to Australia’s regions 36
4.1 Importance of tourism to Australia’s regions 36 Tables
4.2 Flow-on impact of tourism from capital cities to regional economics 38 Table 2.1: Businesses and employees within each stage of the tourism consumer journey 19
4.3 Filling regional employment gaps 39 Table 2.2 : Direct tourism employment by tourism region, 2018-19 25
5 Tourism’s role in supporting Australia’s growth agenda 44 Table 5.1 : Lifetime value of first-time visitors to Australia 46
5.1 Training and skills for the future 44 Table 6.1 : Tourism key figures, 2019 52
5.2 Long term connection with international tourists 45
5.3 Opportunities from the international education visitors 47 Figures
5.4 Driving Australia’s nation brand 48 Figure 2.1 : A nation of travellers: Australians’ propensity to travel in 2019 17
6 Embarking on the road ahead 50 Figure 2.2 : Tourism ecosystem of players through a typical tourism consumer journey 19
6.1 Travel will endure 50 Figure 2.3: Share of tourism employment in a tourism region, 2018-19 26
6.2 The road to recovery 51 Figure 5.1 : Average number of prior visits among return visitors to Australia, 2019 46
References 54
Acronyms
TERM FULL NAME
ABS Australian Bureau of Statistics
BSI Brand Strength Index
FDI Foreign direct investment
GDP Gross domestic product
VALUE OF TOURISM WHI TEPAPER
VALUE OF TOURISM WHI TEPAPER
GRP Gross Value Added
GVA Gross value added
IVS International Visitor Survey
NVS National Visitor Survey
TRA Tourism Research Australia
6
7
TSA Tourism Satellite Account
UK United Kingdom
UNWTO United Nations World Tourism
Organization
USA United States of America
USD United States dollar
VFR Visiting friends and relatives
WHV Working holiday visa
Wilsons Promontory National Park,
Victoria
Executive summary Blue Mountains,
New South Wales
Australia is a nation of travellers Tourism: An Australian success story
Travel is part of the Australian DNA Australians are frequent travellers! Australia is a highly desirable destination Tourism has been growing faster than the
Australians are In 2019, Australians took an average of four Australia is a world- Australian economy
exceptionally well travelled domestic overnight trips per person, and a class destination by Tourism’s strong performance has been a
by world standards. further 10 day trips. This is double the number global standards and sustained trend. Tourism sector growth has
Everything from the of domestic trips per US resident, and one ranks highly relative outpaced that of the Australian economy,
VALUE OF TOURISM WHI TEPAPER
VALUE OF TOURISM WHI TEPAPER
everyday to the once-in- and a half times the domestic trips per New to key competitors growing at almost twice the rate of the broader
a-lifetime, from trips in Zealand resident.1 along key metrics including desirability, Australian economy in the five years prior to
our home states, to ones right around the Australians are also experienced global consideration, and intention to travel here, 2018-19. Tourism GDP grew at an annual rate
nation; travel lets us unwind for holidays, travellers. In 2019, Australians took 10 million and also being a cool and fashionable of 4.5 per cent over the period compared to 2.5
reconnect with friends and family, and forge trips overseas, the equivalent of two out of destination.3 per cent for the Australian economy.
business relationships. every five Australians in just one year.
8
9
Australia attracts some of the world's most coveted travellers Drought, bushfires and COVID-19 have had a devastating impact on Australian tourism
Australia is one of the top ten tourism Australia attracts the highest yielding travellers The tourism economy has been heavily hit Australia lost almost $80 billion in tourism
earners in the world Australia has a unique position in the global in 2020 revenue in 2020
Australia ranks in the tourism marketplace. On average, international The COVID-19 pandemic has The decline in activity in the tourism sector
top ten countries when it travellers who visit Australia spend more per triggered an unprecedented is 2020 is reflected in 7.6 million fewer
comes to the total value person than they do when they visit other crisis in the global economy international arrivals to Australia, 45 million
of expenditure received by destinations. A typical traveller from the US in 2020. As a result of fewer domestic overnight trips and 84 million
international tourists.2 In spends around USD1,000 on an overseas trip. the alarming levels of virus spread and fewer day trips compared to 2019.
2019, Australia was eighth This average spend doubles to around USD2,000 severity, governments around the world This represents a combined loss of around $78
in the list of top international tourism when they travel to Australia. The trend is similar implemented a variety of lockdown billion in visitor spend, including $34 billion
earners. across many of Australia’s key international measures and travel restrictions to contain in international and $44 billion in domestic
source markets, with the notable exception of the virus. This presented an immediate visitor spend, a staggering 56 per cent decline in
New Zealand and Singapore for whom Australia and intense shock to the tourism sector, tourism receipts.
is a relatively short-haul tourist destination. crippling the sector overnight.
1
Stats NZ, (2021), ; US Census, (2019), ; Tourism New Zealand, (2021), ; US Travel Association, (2019), US Travel
and tourism overview (2019), .
2
UNWTO, (2020), International Tourism Highlights
3
Tourism Australia, (2019), Consumer Demand Project
Tourism is an integral part of Australia's economy
Tourism accounts for a significant part of the Tourism’s share of Australia’s service exports is
economy significant
In 2018-19, tourism’s Australia’s international tourism receipts
share of Australian total accounts for nearly 15 per cent of total exports,
GDP was 3.1 per cent, with tourism representing a greater share of
higher than the share of exports than in countries such as the USA, the
agriculture, forestry and UK and Japan.
fishing (2.6 per cent), Tourism account for almost 70 per cent of all of
utilities (2.7 per cent) and information, Australia’s service exports, up from less than 30
media and communication (2.6 per cent). per cent in 1975.
Tourism is a driving force of job creation One in every eight businesses across the
Prior to the recent disruptions faced by the country is in the tourism business
tourism sector, around 665,000 Australians Prior to COVID-19, there were 312,000 tourism
were directly employed in tourism in 2018- related businesses in Australia, up from
194, representing one in twenty Australians 274,000 five years earlier.
in the workforce. These are the jobs directly These businesses account for 13 per cent of
supporting tourism transactions, including businesses, or one in every eight businesses
10 VALUE OF TOURISM WHI TEPAPER
11 VALUE OF TOURISM WHI TEPAPER
jobs in tourism related industries such as across the country.5
accommodation, cafes, restaurants and
takeaway food services and travel agency In Tasmania and the Northern Territory this
and information centre services. Tourism share is even higher, with close to one in every
was the ninth largest employing industry six businesses related to tourism (16 per cent
in the Australian economy greater than and 15 per cent, respectively).
finance, agriculture and mining.
In addition, tourism demand has flow-on Seacliff Bridge,
effects in the chain of supply of goods and New South Wales
services for tourists. This indirect tourism
activity supported a further 370,000 jobs
across the country.
In total, tourism supported more than a Tourism is even more important to Australia's regions
million jobs in 2018-19. This is equivalent to
one out of every 12 jobs in Australia.
Tourism is closely linked to Australia’s regions Australia’s regions have twice the proportion of
Australia’s regions are jobs in tourism compared to major cities
front and centre of Tourism-related industries contribute twice
tourism experiences in the the share of jobs in regional locations versus
country, with 44 cents of in the major cities. Outside of the capital cities
every tourism dollar spent and the Gold Coast, approximately one in nine
in regional destinations. jobs was in tourism, compared to about one in
While tourism jobs can be found right across twenty jobs in the major cities.
the nation, tourism jobs are a mainstay of
employment in parts of regional Australia,
comprising as many as six in ten jobs.
4
Technical note: the Australian Bureau of Statistics derives tourism employed persons by industry by multiplying ‘employed persons in each
Lirrwi Tourism, industry at the national level’ by the proportion of value added attributable to tourism for that corresponding industry.
Northern Territory 5
Tourism Research Australia, (2019), Tourism Businesses in Australia June 2014 to 2019, .
Bridestowe Lavender Estatea,
Tasmania
Tourism's role in supporting Australia’s growth agenda
International tourism creates Australia alumni Tourism is an important ingredient in Brand
Tourism creates a valuable Australia
pool of Australia alumni who Tourism also plays important roles in the
can share their experiences broader economy, driving consumer demand
12 VALUE OF TOURISM WHI TEPAPER
13 VALUE OF TOURISM WHI TEPAPER
with others and who may for Australia’s products overseas, as well as
return to visit Australia. generating interest to invest, study and work
Prior visitors become ambassadors as they tell in Australia.
others about their visit and build more interest Inbound tourism can influence the way
in travel to Australia among their networks. people around the world perceive Australia,
Many of Australia’s international visitors and therefore plays an important role in
are return travellers who make several shaping the understanding and positioning
trips across their lifetime. In fact, almost Brand Australia.
two thirds of all international visitors to
Australia have visited before. For each new
international visitor to Australia, there is a
lifetime value in connection to the multiple
trips they will make to Australia, which can
range from $14,000 to $38,000 depending
on source market and historical visitor mix.
International students are a critical piece of the puzzle
International students are a critical segment of the tourism sector as they generally travel broadly
while studying, they attract friends and relatives to visit them in Australia while studying and at
graduation, they are likely to be return visitors themselves in the future with many becoming lifelong
advocates for Australia. Given their longer stay profile, education visitors are high yielding, spending
on average more than $20,000.
International students help to build Australia’s cultural capital and diversity and benefit cross-
cultural knowledge exchanges. Post-study, migration pathways can offer further benefits to
Australia’s productivity and skilled workforce. More broadly, international education is seen to
contribute to soft diplomacy, cultural interlinkages and the development of trade and investment.6
6
Deloitte Access Economics, (2015), The value of international education to Australia (report commissioned by Australian Government Department Port Campbell National Park,
of Education and Training), . Victoria
1
Introduction
1.1 Context
The COVID-19 pandemic has triggered an
unprecedented crisis in the global economy in
2020. As a result of the alarming levels of virus
spread and severity, governments around the
world implemented a variety of lockdown measures
and travel restrictions to contain the virus. This
presented an immediate and intense shock to the
tourism sector, crippling the sector overnight.
The onset of COVID-19 could not have come at
a more difficult time, with Australia’s tourism
industry still reeling from the impacts of drought,
14 VALUE OF TOURISM WHI TEPAPER
15 VALUE OF TOURISM WHI TEPAPER
and the worst bushfire season on record.
The disruptions resulting from the lockdown
measures and travel restrictions affected most
industries and sectors in some ways. Tourism was
among the most directly affected sectors at the
height of the pandemic as governments sought
to limit movement forcing many of the sector’s
operators into hibernation and while activity Horizontal Falls,
levels have increased steadily since mid-2020, Western Australia
the tourism sector will be the last to recover with
many planes still on the ground, many city hotels
operating at very low levels of occupancy and
international border restrictions looking to stay in
place for most of 2021.
1.2 State of play and current challenges Uneven impacts across the country virtual meeting platforms, it is expected that
From devastating job losses, business closures The impact of the decline in tourism activity has the business travel sector will take some time to
COVID-19 impact
and the human toll of not being able to travel to been uneven across Australia. Given capital cities recover and may not return to pre-COVID-19 levels
visit friends and family, the economic and social COVID-19 has had a staggering impact on for a considerable period of time. This anticipated
attract a much greater share of international
value of the tourism sector to the economy and to Australia’s tourism sector. Travel bans and slower recovery of the business travel segment
visitors than regional destinations, they have faced
Australians has never been more apparent than in border restrictions have brought international will present further challenges for capital cities,
a much greater decline in the number of visitors
the past year. travel to a halt and and reduced interstate travel which typically have higher share of business
and associated spend than has been the case
considerably throughout 2020. visitors compared to regional destinations.
Tourism’s importance to Australia and Australians in many regional areas. As some travel became
is multifaceted, contributing to Australia’s Overall, the decline in 2020 corresponds to 7.6 permitted, many regional destinations became
economy, the employment of one million million fewer international arrivals to Australia, the beneficiaries of pent up demand following the
Australians, while contributing to Brand Australia, 45 million fewer domestic overnight trips and lockdown periods, with activity levels matching or
solidifying our national identity and image to the 84 million fewer day trips compared to 2019. in some cases exceeding levels prior to COVID-19.
rest of the world. This results in a total combined loss of around
Holiday makers, and those wishing to travel
$78 billion in visitor spend, including $34 billion
This paper outlines the economic significance to reconnect with friends and family, were
in international and $44 billion in domestic
of the tourism sector to Australia, including the first to resume travel. As businesses have
visitor spend, a staggering 51 per cent decline in
its importance to the regions and its role in moved to hybrid ways of working in the wake
tourism receipts.
supporting Australia’s growth agenda. of the pandemic, including a high uptake of
2
Figure 2.1: A nation of travellers: Australians' propensity to travel in 2019
TOTAL
Australians took a total of 14.7 trips per person in Australians spent a total of $5,708 per person
2019 (incl. both domestic and overseas trips) on overnight travel in 2019, including travel in
Australia and abroad. Including day trips, this
spend per capita increases to $6,738.
The picture of
Australian tourism DOMESTIC
16 VALUE OF TOURISM WHI TEPAPER
VALUE OF TOURISM WHI TEPAPER
Australians took Per capita,
14
Australians spent
Heart Reef, Queensland
Of 14 domestic trips, Of 14 domestic trips,
$4,189
domestic trips (14.3 if on domestic tourism.
Tourism is important for Australia and for Australians. While the word ‘tourism’ conjures a different we want to be exact) – 12 (or 12.4) were trips 6.2 holiday trips, 4.3
picture for everyone, a shared understanding of what it comprises illustrates its breadth and importance. 4 domestic overnight in their own state trips to visit family
17
The activity undertaken by tourists generates significant income for Australia. In Australia, tourists trips and 10 day trips. (intrastate) and 2 and friends, 2.4
may be locals spending time away from home beyond their usual place of residence (domestic tourists)7 trips were interstate. business trips, and 1.5
or international tourists, residing overseas but visiting Australia. Australians travelling overseas are trips for other reasons
considered outbound tourists, and will also contribute to tourism spending in Australia, such as booking
through Australian travel agencies or transport providers.
OVERSEAS
2.1 A nation of travellers
5.6 m
Two in 5 Australians took an Australians spent an average of
Australians are exceptionally well travelled by more than 117 million overnight trips, spending
$2,552
overseas trip – approximately
world standards. In 2019, Australians took an close to 420 million nights away from home on
average of four domestic overnight trips per
person, and a further 10 day trips. This is double
the average number of domestic trips per US
domestic trips. Australians also took almost 250
million day trips.9
Beyond its dollar value, travel facilitates
10 million
trips in total.
holiday trips, 2.3m trips
visiting friends and family,
1.8m business trips, and 0.2m
per capita on overseas trips.
resident, and one and a half times the domestic trips for other reasons
meaningful experiences for Australians. Travel
trips per New Zealand resident.8 can be considered part of the Australian DNA.
Australians are also experienced global travellers. For Australians, tourism facilitates experiences. 7
Domestic tourists may be taking a daytrip (those who travel for a round trip distance of at least 50 kilometres outside of the routine (such as
In 2019, Australians took 10 million trips Everything from the everyday to the once-in-a- commuting to work), are away from home for at least fours, do not spend a night away from home), or overnight visitors (spending at least one
overseas, the equivalent of two out of every five lifetime, from trips in our home states, to ones night away from home a minimum of 40 kilometres from the their usual place of residence.).
8
Stats NZ, (2021), ; US Census, (2019), ; Tourism New Zealand, (2021), ; US Travel
The total scale and scope of the tourism sector in holidays, reconnect with friends and family, and Association, (2019), US Travel and tourism overview (2019), .
Australia is remarkable. In 2019, Australians made forge business relationships. 9
Tourism Research Australia, (2021), National Visitor Survey, .
Sydney Harbour,
New South Wales
2.2 The tourism ecosystem
18 VALUE OF TOURISM WHI TEPAPER
19 VALUE OF TOURISM WHI TEPAPER
The tourism sector consists of a broad range of players and stakeholders, each impacting directly or Not surprisingly, the majority of jobs and businesses across the visitor economy are largely concentrated
indirectly on the consumer journey of a typical tourist – starting from creating an awareness of a in the ‘Visit’ stage of the consumer journey, where businesses contribute to the visitor’s experience.
destination, inviting consideration of a potential trip, and moving the potential visitor through the stages of However, prior to a visitor arriving in the destination, Australian businesses and jobs play an important
planning, booking and finally to visiting and sharing their experiences during and after the trip. The tourism role in supporting the knowledge, consideration and booking components of a tourist’s consumer journey.
sector has touchpoints throughout the economy, with a wide range of industries inextricably intertwined to Table 2.1 provides an estimate of the number of businesses and jobs in Australia that support each phase
deliver the tourism experiences. of the tourism consumer journey.
Behind each tourism operator and stakeholder working directly in tourism related industries, other
industries support the supply of tourism products, from primary producers supplying hotels with food for Table 2.1: Businesses and employees within each stage of the tourism consumer journey
room service to technology researchers producing the next virtual reality experience. These are just a couple
of examples of the millions of transactions and interactions that underpin the tourism sector, contributing
to Australia’s wider visitor economy. Know Consider Explore Schedule Book Visit
Figure 2.2: Tourism ecosystem of players through a typical tourism consumer journey Examples Travel agency Travel agency Travel agency Travel agency Travel agency Accommodation
of types of services services services services services Car rental,
businesses Accommodation Airlines Accommodation airlines
Airlines Airlines Cafes and
restaurants
Museums
Sports and
recreation
Retail trade
Education
No of businesses 8,020 8,020 67,477 54,713 67,477 304,540
No of related 44,000 44,000 202,000 116,000 202,000 600,000
jobs
Source: Deloitte Access Economics, and ABS
Source: Deloitte Access Economics2.3 Australia: a world-class international destination Chart 2.2: Comparison of tourism's contribution to exports and expenditure per visitor across countries, 2018
Australia is a world-class destination that attracts high yielding international tourists. Being a medium-
to-long haul destination for most international source markets, Australia receives a relatively modest High spending tourists, low High spending tourists and
share of international high share of international
volume of international visitors – in fact, Australia ranks outside the top 30 in terms of total international tourism to national exports tourism to national exports
$3,000
arrivals. However, Australia ranks in the top ten when it comes to the total value of expenditure received by
international tourists.10
Chart 2.1 indicates the relative position of where Australia is when it comes to number of international Australia New Zealand
arrivals and visitor expenditure it receives. The trend line shows the average level of expenditure for a given
number of arrivals across all countries. Countries above the trend line have higher levels of expenditure per $2,500
arrival than the average country. This is the case for Australia, which ranks second in terms of expenditure
per arrival. The one country above Australia is Luxembourg, which has significantly smaller number of
arrivals. Further, to put this into perspective, expenditure per arrival in Australia is approximately 1.8 times
the size of expenditure per arrival in the USA, a close competitor of Australia for tourism.
$2,000
Expenditure per arrival ($USD)
Chart 2.1: Comparison of inbound tourism expenditure and international tourism arrivals, 2018 Switzerland
1,000,000 & #
$1,500
Countries above the 45 degree line Japan
attract higher levels of expenditure Netherlands United States
150,000 & "
per-person
Australia Norway
United Kingdom
20,000 & !
$1,000
20 VALUE OF TOURISM WHI TEPAPER
21 VALUE OF TOURISM WHI TEPAPER
Canada
Expenditure (USD - billions)
3,000 %
Austria
Spain
400 $
$500
France
Denmark
60 #
10 "
$-
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Trend line
Inbound international tourism expenditure as a proportion of total exports (%)
0 !
! " # $ % & !
0 10 60 400 3,000 20,000 150,000 Source: Deloitte Access Economics and World Bank
International arrivals (millions) Australia has a unique position in the global tourism market relative to the rest of the world. International
Source: Deloitte Access Economics and UNWTO travellers who visit Australia spend more per-person when they visit than they do when they visit elsewhere
Notes: Scale is a log-scale that has been re-labelled for readability in the world. For example, a typical international traveller from the US would spend around USD1,000 on
an overseas trip. This average spend doubles (around USD2,000) when they travel to Australia. The trend is
Australia’s international tourism receipts accounts for nearly 15 per cent of total exports (by value), with similar across many of Australia’s key international source markets. Notable exceptions include Singapore
tourism ranking more highly in terms of contribution to exports than in countries such as the USA, the UK and New Zealand, for whom Australia is a relatively short-haul tourist destination.
and Japan (Chart 2.2). Further, tourism is the largest component of Australian service exports, which were
driving the growth in Australia’s balance of trade in the years prior to COVID-19.
10
UNWTO, (2020, International Tourism Highlights
The Doughboys,
Cape Grim, TasmaniaChart 2.3: Comparison between average expenditure within Australia and in other countries, by residents from top
ten source countries of international arrivals to Australia, 2018
$6,000
$5,000
Expenditure per traveller (USD)
$4,000
$3,000
$2,000
$1,000
$0
Ch ina New Zealand United United Japan Singapore India Hong Kong Korea Germany
States of Ki ngdom
22 VALUE OF TOURISM WHI TEPAPER
America
Twelve Apostles, Great Ocean Road,
Victoria
Average spend on outbound international tourism (all countries) Average spend in Australi a
Source: Deloitte Access Economics, World Bank, UNWTO and Tourism Research Australia
Notes: Expenditure excludes international airfares. Spend in Australia is sourced from IVS and converted to USD using an exchange rate of 1
AUD:0.75 USD. ^Top ten source markets include those that have available outbound expenditure data. Total outbound data for China and United Chart 2.4: Competitiveness of Australia on aspects aligned to the main reasons that tourists choose to come to
Kingdom is sourced from UNWTO 2018. All other total outbound data is sourced from the World Bank. Australia
8
Despite this, Australia’s position as a world-
class destination for high-yield travellers is 7
not guaranteed. The World Economic Forum11 NZ
rates Australia highly on the four main reasons
6 USA
Tourism competitiveness index
why tourists choose Australia as a holiday UK NZ
USA UK UK
destination. However, Australia has a significant
number of competitors along these four 5 NZ USA
attributes, including the USA, New Zealand and UK
the UK. USA
4
The global landscape for tourism is expected to NZ
become even more competitive as countries look
3
to reinvigorate their tourism industries as part
of their economic recovery strategies following
COVID-19. Australia’s tourism sector could be 2
in a vulnerable position if travel restrictions
remain in place beyond that of competitor
1
nations, resulting in potential travellers who
would be planning to travel Australia opting to
travel to another country with similar attributes 0
Safety and security Openess Infrastructure Natural resources
as Australia.
Rottnest Island,
Western Australia 11
World Economic Forum, (2019), The Travel & Tourism Source: Deloitte Access Economics, Tourism Research Australia and World Economic Forum
Competitiveness Report 2019, . environments (43%), safe and secure destination (27%), friendly and open citizens (27%), and Cities and attractions (24%)2.4 Tourism businesses and employment Not surprisingly, the greatest number of tourism jobs are located in Australia’s major tourism capital
cities regions. While tourism jobs can be found right across the nation, tourism jobs are a mainstay of
Tourism activity supports businesses and employment around the country. Being a labour-intensive sector,
employment in parts of regional Australia, comprising as many as six in ten jobs. This distribution of
tourism is particularly strong at supporting employment in the Australian economy. As noted by the
employment is highlighted in Table 2.2, showing the proportion of jobs in a tourism region supported
International Labour Organization:
by tourism in 2018-19. Across the ten most tourism reliant regions, tourism accounted for an average
of three out of ten jobs with the tourism share of employment as high as 60 per cent for Tasmania’s
“Tourism is globally one of the key and fast East Coast.
growing vital sectors. It is among the top job
Table 2.2: Direct tourism employment by tourism region, 2018-19
creating sectors due to its labour- intensive
Wave Rock,
nature and the large multiplier effect it has Western Australia
Tourism region State Employment Tourism region State Employment
on employment in other related sectors”12
Tourism jobs 1 Melbourne VIC 95,808 11 South Coast NSW 15,307
Prior to the recent disruptions faced by the tourism sector, the Tourism Satellite Account showed close
to 665,000 Australians were directly employed in tourism in 2018-19.13 These are the jobs directly
supporting tourism transactions, including jobs in tourism related industries such as accommodation, 2 Sydney NSW 92,021 12 Australia's South West WA 13,187
cafes, restaurants and takeaway food services and travel agency and information centre services.
In 2018-19, there were approximately 12.8 million Australians employed.14 This means one in twenty
Australians in the workforce was employed directly in the tourism sector. 3 Brisbane QLD 45,155 13 Hobart and the South TAS 11,083
In addition, tourism demand has flow-on effects in the chain of supply of goods and services for tourists.
24 VALUE OF TOURISM WHI TEPAPER
25 VALUE OF TOURISM WHI TEPAPER
These are the indirect flow on effects of tourism. Indirectly, tourism activity supported a further 370,000
jobs across the country. 4 Destination Perth WA 38,488 14 Canberra ACT 10,955
In total, tourism supported more than a million jobs in 2018-19. This is equivalent to one out of every
12 jobs in Australia. In direct terms, tourism is the ninth largest employing industry in the Australian
economy. Direct employment in the tourism industry is larger than that in each of the finance industry, 5 Gold Coast QLD 29,764 15 High Country VIC 10,166
agriculture and mining (Chart 2.5).
chart 2.5: Comparison of direct employment by industry, 2018-19 6 North Coast NSW NSW 24,316 16 Great Ocean Road VIC 9,802
1800
1600 7 Adelaide SA 22,771 17 Central NSW NSW 9,214
1400
Employed persons (000)
8 Tropical North Queensland QLD 18,231 18 Peninsula VIC 9,082
1000
800
9 Sunshine Coast QLD 17,476 19 Geelong and the Bellarine VIC 7,252
600
400
10 Hunter NSW 15,813 20 Central Coast NSW 7,092
200
0 Source: Deloitte Access Economics and Tourism Research Australia
Health care
Construction
Education
Accomodation
Public Admin
Professional services
Manufacturing
Mining
Electricity
Retail
Finance
Wholesale trade
Agriculture
Transport
IT
Tourism
Other services
Support services
Arts
Real Estate Services
12
Peter Van Rooij (International Labour Organization), ‘Promoting Tourism through Decent Work in Egypt’, International Labour Organization (15
November 2015) .
13
Technical note: the Australian Bureau of Statistics derives tourism employed persons by industry by multiplying ‘employed persons in each
industry at the national level’ by the proportion of value added attributable to tourism for that corresponding industry.
14
ABS, (2019), 5249.0 Australian National Accounts: Tourism Satellite Account 2018-19 reference year, .Figure 2.3: Share of tourism employment in a tourism region, 2018-19
1 East Coast TAS 59%
2 Spa Country VIC 50%
3 Lasseter NT 42%
4 Kangaroo Island SA 39%
5 Phillip Island VIC 36%
6 High Country VIC 24%
7 Snowy Mountains NSW 23%
8 Whitsundays QLD 22%
9 Upper Yarra VIC 18%
10 Lakes VIC 18%
Source: Deloitte Access Economics and ABS
Among Australians employed in tourism, a few This figure is based on unpublished business
distinct cohorts can be considered: registration data from the Australian Bureau of
• The tourism career cohort: business owners Statistics and represents a conservative estimate, as
and employees who spend their careers it excludes businesses in tourism related industries
26 VALUE OF TOURISM WHI TEPAPER
27 VALUE OF TOURISM WHI TEPAPER
working in tourism where tourism contributed less than five per cent
of the industry’s gross value added (GVA).16 As at
• The labour force (re)entry cohort: youth and June 2019, only the construction industry had more
carers re-entering the labour market, getting businesses than tourism (with 394,500 businesses).17
a foot in the door, and gaining valuable and
transferable skills While most businesses across Australia (63 per cent)
are non-employing businesses, this is not true for
• Working holiday makers: international visitors tourism: where more than half of tourism businesses
supporting their Australian adventures with were employing businesses in 2019 (51.2 per cent).
local work That said, tourism businesses remain mostly small
• The seasonal workers: those employed in peak businesses. The largest proportion of employing
seasons, supplementing their incomes and businesses are micro, employing one to four people,
gaining skills and experience. in line with the profile of all Australian businesses.
For each of these cohorts, and all Australians Reflecting the diversity of the tourism ecosystem,
working in tourism, work in the sector helps businesses in the tourism sector span a wide range
develop in-demand skills (explored further in of industries, from accommodation, food services,
Section 5.1). For youth in Australia, tourism jobs and transport, through to retail trade, cultural
are particularly important as an entry point to the services, and sports and recreation operations.
labour market: people aged under 25 comprised Tourism businesses are distributed all around the
approximately 45 per cent of the accommodation nation: while the highest numbers of businesses are
and food services workforce in 2019, compared to concentrated in the major cities, tourism businesses
15 per cent across all industries. comprise a higher share of total businesses
in regional areas. This highlights the relative
Tourism businesses
importance of tourism to regional economies.
As at June 2019, there were 312,000 tourism
businesses in Australia, up from 274,000 in 2014
15
Tourism Research Australia, (2019), Tourism Businesses in Australia
June 2014 to 2019, .
in every eight businesses across the country.15 In 16
Tourism Research Australia, (2016), Tourism Businesses
Tasmania and the Northern Territory, this share 2016, .
businesses related to tourism (15.6 per cent and
17
ABS, (2021), Business Indicators, . Northern Territory3
Tourism is a critical contributor to
Australia's economy Freycinet,
Tasmania
3.1 The success of tourism in Australia Tourism’s strong performance has been a sustained trend: tourism’s growth has outpaced that of the
Australian economy, growing at almost twice the rate of the broader Australian economy from 2013-14 to
The economic value of tourism to Australia is significant and well-established. Each year, the Australian
2018-19. Tourism GDP grew at an annual rate of 4.5 per cent over the period, compared to 2.5 per cent for
Bureau of Statistics releases the national Tourism Satellite Account, using an internationally recognised
the Australian economy.
approach to valuing tourism using the national accounting framework.
Over the last decade, visitor expenditure, including expenditure from both domestic and international
28 VALUE OF TOURISM WHI TEPAPER
29 VALUE OF TOURISM WHI TEPAPER
Prior to COVID-19 disruptions, direct tourism gross domestic product (GDP) was $60.8 billion, following year-
visitors, has increased from $86 billion in 2009 to $152 billion in 2019, increasing at a remarkable rate
on-year growth of 6.0 per cent, outpacing total GDP growth by 0.6 percentage points.18
of 5.9 per cent per year.
At the same time, tourism labour productivity was increasing (+0.6 per cent) at a time where productivity
across the whole economy was falling (-0.2 per cent). Chart 3.2: Tourism expenditure mix in Australia, 2009 to 2019
Overall, tourism’s share of Australia’s total GDP was 3.1 per cent, higher than the share of agriculture, forestry 180
and fishing (2.6 per cent), utilities (2.7 per cent) and information, media and communication (2.6 per cent).
Further, the Australian tourism industry is more important to the Australian economy than the tourism 160 $152
industry in comparable economies such as the USA, Canada and Japan.
Chart 3.1: Direct tourism as a percentage of GDP of top 20 countries in terms of value (USD) 140
$45
30%
14%
120 $105
12%
100 $86
$ billions
Percentage of total GDP
$31
$39
10%
80
$25
8%
$27
60 70%
6%
$23
40
$68
4%
3.1%
$47
$38
20
2%
0
0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
en
da
ay
A
d
n
n
ria
ds
li a
d
d
ce
UK
k
Australians' intrastate spend ($b) Australians' interstate spend ($b) International traveller spend in Australia ($b)
ai
lan
an
an
US
ar
pa
na
an
ed
rw
lan
ra
st
Sp
nm
al
Ja
nl
er
Sw
Au
Ca
st
No
Fr
er
Ze
Fi
itz
Au
De
th
Source: Deloitte Access Economics and Tourism Research Australia
w
Sw
Ne
Ne
Source: Deloitte Access Economics, World Travel and Tourism Councill (2019), and ABS (2020) 18
ABS, (2019), 5249.0 Australian National Accounts: Tourism Satellite Account 2018-19 reference year, .3.2.2 Role in the broader economy
Tourism plays an important role in the broader economy, from generating interest in Australia’s products
overseas, as well as interest to invest, study and work in Australia.
Inbound tourism can influence the way people around the world perceive Australia, and therefore plays an
important role in shaping the understanding and positioning of Brand Australia.
Tourism and merchandise exports
Activity around international tourism is likely to increase the awareness of Australian products overseas,
including manufactured products, food and wine. People who visit Australia will be exposed to a wide
range of Australian products during their trip that they then want to source back in their home countries.
This leads to greater demand for Australian exports, while supporting the development of stronger
bilateral trade relationships between Australia and other countries.
Mount Killiecrankie,
Tasmania
There is some quantitative evidence of this intrinsic relationship between tourism and exports. The
positive relationship shown in Chart 3.4 below suggests there is a relationship between the number
of visitors to Australia from a specific source country, and the degree to which that country purchases
Australian exports. Further, once controlling for differences in distance between Australia and the source
3.2 Tourism – an integral part of the broader economy market and income per-capita, the analysis shows that a 1 per cent higher level of arrivals to Australia
3.2.1 Role in Australia's exports (as a percentage of the source market’s population) is associated with a 0.3 per cent higher level of
Australian exports to a country (as a percentage of its GDP).
Over time, exports have become an increasingly important driver of Australia’s economic activity. In 1975,
exports accounted for 10 per cent of the size of our economy, but by 2019 they accounted for almost a Chart 3.4: Correlation between Australian international tourist arrivals and merchandise exports, 2018
quarter of all economic activity.
Tourism plays an important role in Australian exports, accounting for nearly 15 per cent of total
Greater number of visitors as a proportion of per-capita GDP
30 VALUE OF TOURISM WHI TEPAPER
31 VALUE OF TOURISM WHI TEPAPER
Vanuatu
exports in Australia.
While Australia’s mining-related exports mean our goods exports exceed our service exports, over the past
three decades, services have accounted for between 20 and 25 per cent of Australia’s total exports. This Fiji
is a substantial share and indicates that services exports will become increasingly important as Australia
looks to diversify its exports to have a lesser reliance on mining-related exports.
When it comes to Australia’s service exports, tourism is the dominant contributor. Tourism-related New Zealand
services account for almost 70 per cent of all of Australia’s service exports as indicated in Chart 3.3,
with the contribution growing significantly over time, from less than 30 per cent of all services exports
in 1975. The recovery of the tourism sector is of critical importance to Australia’s services exports and Singapore Papua New Guinea
exports more generally, supporting goals to diversify exports and provide a counterbalance to the cyclical Hong Kong SAR, China
nature of Australia’s commodity product exports.
Ireland Nepal Malaysia
Chart 3.3: Share of Australian services exports, 1975 to 2019 Sri Lanka
Denmark
Finland
Switzerland
Sweden Belgium
Chile Philippines
Israel Vietnam
70% Netherlands
Korea, Rep.
Canada South Africa Thailand
United Kingdom
Spain
Colombia
Argentina Poland
60%
Italy Germany IndonesiaJapan
France Saudi Arabia Bangladesh
Iran, Islamic Rep.
Pakistan
50% Brazil
United States India
Mexico Russian Federation China
40%
30% Greater proportion of merchandise exports as a proportion of GDP
1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015 2019
Tourism-related services Non-tourism related services Source: Deloitte Access Economics analysis using ABS merchandise export data (5368.0), ABS short-term arrivals data (3401.0), World Bank GDP
and population data (2020)
Notes: Merchandise exports do not include international tourism receipts. Exports are measured in value terms. Arrivals to Australia controls for
Source: Deloitte Access Economics and ABS differences in population and GDP for each country.Tourism is a central contributor to Australia’s international brand, Brand Australia. Globally, Australia
is renown as a tourism destination. In 2019 Australia once again ranked in the top ten in the World
Economic Forum’s Travel & Tourism Competitiveness Index.22
Australia’s international reputation contributes to the country’s appeal as a study destination. An
international student survey in 2019 found that students decided on a location to study based on its
‘acceptance of international students’ (58 per cent), and ‘appealing culture/lifestyle’ (35 per cent), in
addition to the quality and cost of education institutions and living expenses.23 These attributes are
associated with Brand Australia: in the World Economic Forum’s international rankings, Australia was
placed within the top 20 countries in terms of openness and safety.
Analysis of the relationship between holiday arrivals to Australia and international student enrolments
in Australia shows that there may be a link between the two that cannot be explained by income and
distance between countries. Specifically, a 1 per cent increase of holiday arrivals to Australia as a
Mt Wellington,
Tasmania percentage of the source market’s population is associated with a 0.5 per cent increase in student
enrolments in Australia as a percentage of the source market’s population. This relationship is consistent
even once controlling for differences in populations, incomes, tertiary enrolment rates and distance
between Australia and the source market (Chart 3.1).
There is growing evidence that shows there is a causal link between tourism and exports. Research This relationship suggests that there could be a link between the choice of destination of where to study
by Madelona et al. (2017a) found that increased tourism has increased agri-food exports between the and the extent to which citizens generally visit that country for tourism. This relationship may, in part,
Netherlands and France. While other research by Madelona et al. (2017b) found that international inbound be attributable to the impact of tourism on altering perceptions of a country in their home market or
tourism to Portugal increased wine exports to the visitor source markets.19,20 increasing awareness of Australia as a study destination. However, further research should be conducted
Tourism and education to study the causal link between prior tourism visitation and choice of study destination.
Australia is the fifth most popular destination for international students globally, with approximately
32 VALUE OF TOURISM WHI TEPAPER
33 VALUE OF TOURISM WHI TEPAPER
450,000 international students choosing to study in Australia in 2019.21 Tourism plays an important role Chart 3.1: Correlation between international student enrolments in Australia and holiday arrivals to
in promoting Australia as a study destination across the globe. A memorable travel experience in Australia Australia, 2019
may induce interest to study in Australia, or to send children to study in Australia. Around one in five
international students in Australia have visited Australia prior to studying here, with over 60 per cent of
students indicated they were previously in Australia for a holiday. People who come to study in Australia
Greater number of international student enrollments in Australia
contribute substantially to the tourism sector, by travelling throughout the country, attracting friends
and family to come to visit them during their studies and returning for graduation ceremonies.
Chart 3.5: Past purpose of visit among international education visitors
Percentage of students within the first- Reasons for initial visits for international
3 months of study that are return-visitors students within their first three months
of study
100%
9%
90% 20%
80% 22%
70%
7%
60%
50%
40% 80% 62%
Greater number of holiday tourists to Australia
30%
Source: Deloitte Access Economics, Tourism Research Australia and Department of Education, skills and employment, International Education statistics
20% Notes: Analysis is the output of an added variable plot, which shows the correlation between enrolments and holiday arrivals, holding-constant
differences in GDP per capita, population and distance between Australia and the source country (in log kms).
10%
0%
19
Madaleno, A., Eusébio, C., Varum, C. (2017). International tourism and exports of agro-food products: a causality analysis. Anatolia: An
2019 2019 International Journal of Tourism & Hospitality Research, 27(2), 251-261.
First vi sit Return visit Holiday Working Holiday 20
Madaleno, A., Eusébio, C., Varum, C. (2017). Exports and Tourism: Testing the Causality. International Journal of Hospitality & Tourism
Administration, 18(4), 444-458.
VFR Business 21
United Nations, (2021), Global flow of tertiary-level students, .
Source: Deloitte Access Economics and Tourism Research Australia 22
World Economic Forum, The Travel & Tourism Competitiveness Report 2019 (2019) .
Notes: Visitors study whose previous visit was also for educational purposes were included in the ‘first visit’ category. 23
QS International Student Survey (2019), .Tourism, work and investment
Tourism can also help generate interest in
working and investing in Australia, which can fill
skill shortages and increase foreign investment.
Approximately 300,000 people visit Australia
on working holiday visas each year, contributing
to filling important regional skill shortages. A
further 200,000 people visit Australia for the
purpose of short-term employment. Data collected
by Tourism Research Australia indicated nearly
10,000 people visited Australia to investigate a
possible business investment in 2018.24
Australian War Memorial,
Tourism and global connectedness Australian Capital Territory
Tourism provides an important platform for
the global exchange of ideas and knowledge,
promoting innovation and trade to support the longer-term outcomes that will generate broader
broader economy. This is facilitated through the social and future economic benefit for Australia.
staging of business events including conferences, Global conferences and congresses provide the
meetings and exhibition, along with major platforms for likeminded professionals with the
cultural, leisure and sporting events. Events same passion to gather together to exchange
connect and convene people across the world with knowledge, discuss and debate new ideas and
forthcoming technologies. These interactions
34 VALUE OF TOURISM WHI TEPAPER
35 VALUE OF TOURISM WHI TEPAPER
shared interests at a destination. In addition to
participating at these events, the appeal of the lead to collaborations and partnerships being
location, typically first as a tourist destination, is formed to pursue opportunities and innovations
a strong influence to drive attendance at events that will lead to breakthrough discoveries and
and in the selection of the destination itself. developments that save lives, change society and
redefine best practices.
Spotlight: Business events – key economic driver and Success stories
fostering knowledge transfer, trade and investment The Swift International Banking Operations
Business events provide the forums to bring (SIBOS) meeting in Sydney in 2018 attracted
together groups of people with a common interest around 7,600 delegates from across 158
or vocation, unlocking widespread collaboration countries, providing a timely platform to discuss
and exchange of ideas. This sector is a major and refine trending topics, cementing Australia’s
economic driver for the Australian economy, directly reputation as an innovative financial services
contributing around $36 billion to the economy hub in the region. This was the third time the
and providing employment to almost 230,000 organisers had selected Sydney as the host
Australians in FY19.25 During this period, 44 million destination, following successful events in 1997
people attended business events in Australia, with and 2006. This event generated close to $40
international business events visitors representing million in direct expenditure in Australia and
one out of every five delegates. Previous research provided benefits to the local community through
indicates around 46 per cent of international donations from SIBOS’ exhibitors to seven local
business events delegates take a pre- or post-event charity organisations and over 2,500 meals
trip.26 Even among interstate delegates, 13 per cent donated to community members in need.
extend their visits beyond the conference with Overall, business events play a vital role to
the economic benefits to destinations flowing to stimulate the visitor economy, contributes
regions outside major capital cities. to exports, inward investment, infrastructure
Beyond the significant economic benefits, the development, and generating jobs and
staging of business events in Australia provides opportunities across metropolitan and regional
communities.
24
Data on visiting for possible business investment was only collected in the International Visitor Survey in 2018.
25
Business Events Council of Australia, (2019), The value of Business Events to Australia 2018-19 Clifton Beach,
26
Sustainable Tourism CRC, (2015), The national business events study, an evaluation of the Australian business events sector Queensland4
Tourism is even more important to
Australia's regions
4.1 Importance of tourism to Australia’s regions
A strong and competitive tourism industry has widespread benefits for Australia’s regions and residents.
With many of Australia’s iconic attractions located in regional destinations, tourism has a both significant
role to play and impact in regional economies. Exceptional Kangaroo Island,
Visitors travel outside capital cities and spend in the regions: in local cafes and restaurants, for retail South Australia
purchases, on tours and transport. Regional destinations are home to 31 per cent of the national
population but attract approximately 44 per cent of total tourism expenditure.
Tourism expenditure makes a greater contribution to the economic activity in regional destinations Chart 4.2: Tourism expenditure impact in urban and regional Australia, 2018-19
than it does in major centres. There is a much higher level of visitor expenditure on a per capita basis in 100%
%"# Regional economies
regional destinations than in cities: $8,822 per capita in the regions compared to $4,749 in the capital
Major cities
cities and Gold Coast.
This flows on to tourism’s contribution to Gross Regional Product (GRP). In regional areas, tourism activity
36 VALUE OF TOURISM WHI TEPAPER
37 VALUE OF TOURISM WHI TEPAPER
contributes an average of $4,392 per resident compared to $2,339 per resident in the major cities
underlining how critical tourism is to the economic activity in regions.
%
32%
East Coast
Chart 4.1: Tourism expenditure impact in urban and regional Australia, 2018-19
Phillip Island
$10,000
Spa Country
$8,822
$9,000
High Country
$8,000
Upper Yara Tropical North
10%
$"#
$7,000 Queensland
Coast Alice Springs
Gold Barkly West Coast
$6,000 Coral Coast
Fraser Coast
Tourism contribution (% of regional GRP)
South West
$4,749 Penninsula Hobart
$5,000 Central Highlands
$4,392
Launceston Melbourne East
$4,000 Flinders Ranges and
$ Geelong Outback NSWOutback
3% Darwin
$3,000 Adelaide Hills
Adelaide
$2,339 Macedon Melbourne
Brisbane
Hunter SydneyGladstone Lichfield
$2,000 Wimmera
Murray East Perth Capricorn Outback
$1,000 Queensland
$0 Macdonnell
Expenditure per capita GRP per person (average per region) 1%
!"# Mackay
Regional Major City (incl. Gold Coast)
Source: Deloitte Access Economics, Tourism Research Australia and ABS
Notes: Average GRP per person is calculated as the average contribution of tourism to GRP across regions.
Tourism-related industries contribute twice as many jobs (from a share perspective) in regional locations
than in the major cities. Outside of the capital cities and the Gold Coast, approximately one in nine jobs
0%
!
was in tourism, compared to about one in twenty jobs in the major cities.
20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000
The regions in which tourism is critical tend to be lower income regions (considered on a GRP per person
basis). In the lowest income quartile of regions, 10 per cent of income is sourced from tourism, with one GRP per capita
in every six jobs in the tourism industry, on average, compared to 3 per cent or one in every 14 jobs in the Source: Deloitte Access Economics and Tourism Research Australia
higher income regions. Notes: Tourism contribution (% of regional GRP) – y-axis- is a log scale that has been re-labelled for readabilityYou can also read
