A new report by Tourism Australia shows the importance of tourism and hospitality providers collaborating to create experience packages to attract international tourists.
Future of Global Tourism Demand provides timely data and insights to help businesses understand where international tourist demand exists make the most of opportunities in this critical period of COVID 19 pandemic recovery. It provides research into the experiences that drive international tourism demand.
The Newcastle and Hunter region’s tourism and hospitality sector has been hit hard by the pandemic. The good news for providers and associated businesses is that Australia is still a dream destination. Our region ticks many of the experience boxes global tourists are looking for.
Tourism is integral to Australia’s and the Hunter’s economy and jobs. Prior to the pandemic, tourism was Australia’s second largest service export, and employed one in twelve people. Attracting international tourism represents a significant opportunity as our region continues to transition away from traditional industries.
The report predicts there are around 124.8 million potential international tourists across 19 markets. The question is how many of these tourists can we get to come to the Hunter?
The influence of COVID 19 – travel is about reconnecting
While the report focusses on international visitors it points out that COVID-19 means many tourists are travelling domestically. There are opportunities right now to attract Australian visitors.
The pandemic has meant many international travellers have reframed their travel expectations and desires. More than one third of global travellers want to connect with others or nature. COVID 19 made life dull, so they now want to step outside their comfort zone and experience new adventures.
Top experiences for international tourists
Almost all potential tourists have an interest in sensory, adventure, nature and heritage experiences. The report suggests these experience clusters should be the foundations for any destination’s offer. It should be noted that immersive, interest and extended experiences still have extensive potential – each of these clusters is of interest to more than 80 million travellers per year.
Travellers are looking for multiple but personalised experiences. There are benefits from tourism and hospitality providers collaborating to create travel packages.
The Top 10 experiences in high demand by travellers considering travel to Australia are:
- beaches
- dining out
- shopping
- food and drink festivals
- hot springs
- viewing natural landmarks
- theme parks
- historical or cultural sites
- viewing wildlife in their natural environment
- architecture, notable buildings and monuments.
Tourism Australia also segments tourists using four categories. The report looks at their worth and intention to travel. High yield travellers are the largest category with 39 million travellers and have a strong interest in travelling in the next two years. There are 7 million luxury travellers with a strong intent to travel in the next two years. The 7 million working holiday makers have a very high intent to travel. The highest intent to travel is among the 4 million long stay travellers – who are more likely to have time to travel to regional centres.
Australia is known for its natural environment and wildlife but, despite our great food and wine, we rank weaker for food and drink than other destinations. This perception is important because travellers are seeking culinary adventures with a focus good food and drink, sight-seeing and culture.
Other useful insights in the report include:
- wellness and wellbeing are mega trends
- more than 75% of travellers are committed to sustainability in some way – travel experiences that tread lightly on the planet or help to restore the planet
- a quarter of all travellers having some form of accessibility need
- a significant (13%) of people travel to engage in their passions, hobbies or interests whether that be food and beverages, golf, surfing, or events and music festivals.
Traveller typologies and key emerging markets
Prior to COVID-19 Australia’s top market by annual total trip spend were:
- China
- United States
- United Kingdom
- New Zealand
- Japan
- India
- Singapore
- South Korea.
The report provides data and further insights these traditional markets and emerging markets such as Thailand, Vietnam, Malaysia, Philippines, Indonesia, Canada, Italy, Germany and France.
Actions hospitality and tourism providers can take
Local tourism and hospitality providers can use this and other data to plan for how to attract the international tourists that will soon be coming back to our shores.
It is important for businesses to have a sound foundation to take advantage of sustainable growth opportunities from domestic and international tourists. That includes having the right business plan as well as tax, financial and IT structures and systems. Many tourism and hospitality providers are small businesses and outsourcing some of these functions to an expert in the field is an option that many providers are taking.
Got a question for our hospitality team?
We love questions. If you want to know more about Pitcher Partners Newcastle and Hunter’s business advisory services, you can contact us.
Article by Derrick Eube. Derrick is a partner at Pitcher Partners Newcastle and Hunter. He has more than 30 years of expertise as a management accountant and strategic adviser to the hospitality industry.
