As we move into the new year, this is traditionally the time to look into our crystal balls to try and predict what lies ahead for the next 12 months.
The year 2011 was undoubtedly a year of significant challenge as well as of achievement and 2012 will be a year of opportunity.
It will remain a tough landscape out there. Global economic factors played a big part in 2011 and will continue to do so in the year ahead.
Some of our biggest source markets still face continued economic uncertainty and this will inevitably impact travel from some countries over the next 12 months.
The Australian dollar – which remained so strong through 2011 – doesn't look like falling significantly anytime soon. That's another economic factor we have to live with, reducing the spending power of many of our visitors.
We had our fair share of natural disasters in 2011. Let's hope and pray we escape the devastation of last year's Queensland floods, Cyclone Yasi and the bush fires in Margaret River. And that when weather events do happen, we avoid some of the over the top and graphic reporting we saw in the world's 24-7 news cycle which did as much damage to the tourism industry as the weather itself.
Looking ahead, I'm pretty positive about the next 12 months. I see Australian tourism continuing to grow in 2012, with a key feature being the continued resurgence in domestic travel.
Australia remains a highly desirable place to visit, and 2012 will be about converting this enduring appeal into visitation, by focusing on the growth opportunities provided by Asia.
The Australian tourism story of two worlds will undoubtedly continue in 2012. The strong growth witnessed in our 'near world' markets – headed by China, India, Malaysia, and Singapore – will continue. I think we'll also see the continued opening up of markets such as Indonesia and Brazil – with Tourism Australia having become much more active there in recent years.
While traditional western, long haul or 'far world' markets – led by the US, the UK and Europe – will remain subdued, they will come back as their economies recover. And Japan too will return to measured growth, boosted in 2012 by the first tranche of the $10 million marketing agreement we signed late last year with Jetstar.
This is the Asian century and our greatest opportunities in 2012 and beyond lie in our own backyard – one time zone, one flight and the fastest growing economic, travel and aviation markets on the planet.
China will remain a priority international market for Tourism Australia and the Australian tourism industry in 2012, and already is our most valuable in financial terms. Its existing value to Australia of $3.6 billion could reach $9.5 billion annually with the successful delivery of our China 2020 Plan by decade's end.
This year we're spending significant marketing dollars on promoting Australia to China, and we will continue this strong focus in 2012 in partnership with the Australian industry, including key airlines, the Chinese travel trade and online distribution.
Tourism Australia's remit is also changing, moving beyond demand-side marketing to now include a legitimate role in supply-side issues, particularly relating to aviation and tourism infrastructure development.
The emergence onto the Australian aviation landscape of low cost carriers such as Scoot and Silk Air will be an exciting new feature of 2012, opening up new audiences and, importantly, bringing them beyond the traditional gateway cities. I think you will also see growth from Air Asia X, continued international partnerships developed by Virgin and the possibility that a direct non stop service by an Indian based carrier will finally come to fruition.
With Jetstar's new Japanese offshoot, Jetsar Japan, launching domestic services within the world's third largest economy in 2012, Australia will become more accessible than ever to holidaymakers from some of Japan's key cities.
2012 will also see continued reinvestment and new investment into quality hotel stock in Australia, following a 2011 which itself saw a raft of new hotel openings and refurbs, including three new five star hotels on the Gold Coast, the Darling in the Star complex in Sydney and the reopening of Hayman.
There's much more to be done and we will continue to work with the industry and all levels of government throughout 2012 to make this happen.
Our Facebook page will hit two million fans very shortly. It is the largest destination fan page in the world and in this spirit, Tourism Australia's digital capability will continue to be enhanced – particularly in the area of social media. We'll also continue to champion the cause for advocacy about the best of Australia – combining celebrity and grass roots advocacy through mediums like Facebook and their Chinese, Korean and Japanese equivalents.
A big part of our effort in 2012 and which has already started will be focused on launching the latest phase of our global marketing campaign, There's Nothing Like Australia. The new creative will demonstrate world's best in Australia and be executed competitively across all channels. Watch for this refreshed campaign by July 2012.
Tourism remains one of the world's great growth sectors and 2012 will be all about a unified voice to capture our share of that growth. Exciting times.
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