Market Update

1
Market Update

• USA Canada
• Irene Morgan

2
Market Summary USA

• Total visitors YE August 2006 449,700 1
  growth
• NSW visitor market share 72
• Economic Value to NSW 3rd in economic value
• Dispersal rates out of Sydney 26
• 71 plan/research their vacation online
• World events have produced teflon travelers
  seeking authentic, adventurous unique
  experiences
• 40 repeat visitors to Australia
• Consumer driven market

3
Market Summary Canada

• Total Visitors YE August 2006 107,800 5
  growth
• NSW visitor market share 77
• Economic Value to NSW 12th in economic value
• Dispersal rates out of Sydney 27
• 51 plan/research vacations online
• International travel is back after economic
  recovery
• 55 repeat visitors
• Retail driven market
• Tourism Australia office in Toronto

4
Where is this market going for NSW?

• Positive outlook for NSW overall
• Sydney Australia more popular than ever
• Strong interest in icons and Sydney experience
• Attracting new distribution partners
• Challenge is to keep repeat visitors in NSW
• Stiff competition from Italy, NZ, GBR, MEL

5
Aviation Update

• Air capacity to Sydney increasing
• Qantas adding flights to SFO/JFK routes
• United Airlines emerged from bankruptcy
  profitable
• Air New Zealand, Air Tahiti Nui, Hawaiian
  Airlines committed to Australia
• Singapore Airlines Virgin seeking SYD/LAX route

6
TNSW Marketing Strategy

• Position NSW as an exciting, diverse, unique
  Australian vacation destination
• Build and convert awareness of NSW in target
  markets
• Develop industry and non industry partnerships to
  grow
• visitor arrivals to NSW
• Support and increase effectiveness of trade
  activity in market

7
Target Segments North America

• 17 million potential long haul US travelers
• Represents 9 of US adults aged 18-75
• Target Self Challengers 5.5 million
• Target Travel in Style 4.5 million
• Age 35 75 years
• Unique, life altering, adventure seekers

8
Market Trends North America

• Consumers are researching and booking Australia
  online
• Tourism Australia focus is on key experiences
  dispersal
• Favorable exchange rate has little impact
• Visitors are seeking unique, authentic
  experiences
• Less than 10 of Americans travel outside North
  America
• Average US vacation reduced to 10 days, but
  target market for NSW increased to 22 days
• Economy expected to slow leading up to
  presidential election

9
Market Intelligence North America

• Terrorism a concern but not a threat to
  international travel
• Americans with passports increased to 30 million
• Five years after 9/11 record numbers traveling
  abroad
• Wholesale partners generate 40 of total arrivals
  
• Industry consolidation continues on all levels
• Inbound operators are back
• More preferred product being sold

10
Marketing Activities North America

• Media Promotions
• Trade Events
• Product Development
• Product Education
• Non industry Partner Promotions
• Online marketing

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Trade Activities North America

• Australia Week January
• New Product Workshop March
• Amex Mega Famil - May
• ATE June
• Oztalk August
• Corroborree September
• Aussie Specialist NSW Specialist Program
• www.coastnorthamerica.com
• Wholesale Product Workshops

12
Media Activities North America

• Visiting Journalist Program
• Aussie Press Club
• Independent Media Visits
• Australia Media Walkabout
• Online Media Taskforce
• Conde Nast Readers
• Choice Award
• Travel Leisure Award
• SFO/SYD Inaugural Visit
• NY1 Sydney shoot
• Bold Beautiful

13
Online Marketing North America

• 2.5 million unique
• visitors per month
• E-newsletters
• Email blasts
• Advertorial
• Image placement
• Banners
• Sweepstakes

14
Non Industry Partner Activities North America

• Macys in store promotion 5 million shoppers
• Star 98.7 Radio promotion 1.3 million listeners
• City of SFO Sister City Celebration
• Bondi Restaurant
• KQED TV

15
Special Event Marketing Activities

• Sydney Gay Lesbian Mardi Gras
• Direct mail online promotion to 25,000 GL
  travelers
• Package sales up 200
• VIP packages selling fast

16
Special Event Marketing Activities

• Priscilla the Musical media outreach direct
  mail promotions
• Sydney Festival Australia Week events media
  visits/outreach
• WYD 2008 trade servicing

17
New Distribution Partners

• Military Tours 10 million pax
• Classic Vacations
• Happy Vacations
• Travelbound
• Cross Country International
• Celtic Tours

18
Online Marketing

• Here to stay
• Update your website video streaming
• Booking engine customer service
• ATDW - Australia.com
• Distribution strategy Australia.com
• Google/MSN/Yahoo/Expedia/Orbitz more
• Dead end site/Qantas/wholesale websites

19
Thanks for your support

• USA Canada
• Irene Morgan