Melanie de SouzaGeneral Manager Digital, Marketing Services and Strategy

• Implications for Tourism of the state’s changing population

• The opportunity

▪ Intrastate

▪ International

OUR CHANGING

POPULATION

VICTORIA’S POPULATION GROWTH IS DRIVEN BY MIGRATION

42312

84722

16386

-40000

-20000

0

20000

40000

60000

80000

100000

NET: Increase in population (Number of individuals) in Victorian population over time

Natural Increase ; Victoria ; Net Overseas Migration ; Victoria ; Net Interstate Migration ; Victoria ;

Australian Bureau of Statistics 3101.0 - Australian Demographic Statistics, Dec 2017 – Victoria Data

143,420 NET: increase

from 2016 to 2017

(2.3% growth) – Vic

current population 6.3m

3 X AS MANY VICTORIANS WERE BORN IN CHINA & INDIA COMPARED

TO A DECADE AGO

204,837213,377 209,769

52,852

111,787

169,802

56,564

93,896

160,652

0

50,000

100,000

150,000

200,000

250,000

2006 2011 2016

Num

ber

of V

icto

ria

ns

Victoria by Country of BirthUnited Kingdom

India

China

New Zealand

Vietnam

Italy

Sri Lanka

Philippines

Malaysia

Source: Australian Bureau of Statistics, Census Data

AND THE ANCESTRY MIX (BEYOND COUNTRY OF BIRTH)

IS EVEN LARGER

Strong growth is

also seen from

Philippines and

Vietnam190,364

254,596

370,644

70,688

132,370

209,257

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2006 2011 2016

Ancestry of Victorians

Chinese

Indian

Source: Australian Bureau of Statistics, Census Data

THE CHANGING MIX OF TOURISM TO VICTORIA

Source: International and National Visitor Surveys, Regional Expenditure Model, Tourism Research Australia,

Expenditure to Victoria (Overnight Only)

2530

37

3937

32

35 33 31

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Year ending March 2008 Year ending March 2013 Year ending March 2018

% of Victorian Overnight Expenditure by Type of Traveller

Interstate

Intrastate

International

12.3bn 14.8bn 21.6bn

THE VISITOR ECONOMY IS VITAL TO OUR REGIONS AND GROWING

Total tourism contribution GRP Employment

Phillip Island 39.1% 39.5%

Victoria's High Country 18.7% 21.0%

Great Ocean Road 15.2% 17.8%

Daylesford and MR 10.5% 14.3%

Mornington Peninsula 8.1% 8.6%

Murray 6.9% 8.4%

Grampians 6.8% 10.0%

Gippsland 6.6% 8.6%

Goldfields 6.6% 7.3%

Yarra Valley and DR 6.6% 7.3%

Geelong and the Bellarine 6.3% 7.1%

Melbourne 4.9% 5.3%

Victoria 6.1% 6.9%

Regional Vic has

seen 10.3% in

growth in Gross

Regional Product

(GRP) and 8.9%

growth in

employment

Source: Tourism Australia, Regional Tourism Satellite Accounts (2016/17)

INTRASTATE TRAVEL TO

REGIONAL VICTORIA

INTRASTATE TRAVEL TO REGIONAL VICTORIA IS AT ALL

TIME HIGHS WITH DOUBLE DIGIT GROWTH IN EXPENDITURE

13,144

4,567

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Years ending March

Overnight Intrastate Visitation and Expenditure to Regional Victoria

Visitors (000) Total

Expenditure ($M)Total

7.5% year on year

growth (To YE Mar’17)

12.5% year on year

growth (To YE Mar’17)

Source: Tourism Australia, National Visitor Survey, Regional Expenditure Model. Intrastate visitation and expenditure to Regional Victoria

THOSE WHO ARE BORN OVERSEAS HAVE DIFFERENT

TRAVEL BEHAVIOURS

50.2%

41.6% 40.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Born Aus Both parents born overseas Born overseas

% of Melbournians who have travelled to Regional Victoria in L12M

Source: Roy Morgan Research, Holiday Tracking Survey and Single Source Data. April 2016 – March 2018. n = 280

A SEGMENTED APPROACH TO GROWTH

OPPORTUNITIES - INTRASTATE

VICTORIA CURRENTLY TARGETS LIFESTYLE LEADERSTHESE SEGMENTS ARE MORE LIKELY TO VISIT / SPEND MONEY ON TRIPS

Source: Holiday Tracking Survey, Roy Morgan Research, Year ending March 2018

Base: Australians 18+

Lifestyle Leaders cut across all lifestage & socioeconomic segments

• Lifestyle Leaders are educated, professional, and progressive individuals (incl.

non-religious)

• They enjoy seeking out information and be the first to try and buy new products

• Higher in affluence and discretionary expenditure they can afford to indulge more

often than the average Australian. This includes travel

• They have a busy social life and extensive social networks and as trusted advisors

can and do influence others

• As this segment is based on a mindset they cut across all regions, age and lifecycle

groups however do skew younger

31%

Lifestyle leaders make up

31% of the population or

5.9m Australians

CULTURALLY DIVERSE MELBOURNIANS HAVE DIFFERENT

ATTITUDES AND VALUES

26.0%

22.1%

22.0%

14.3%

6.7%

3.4%

2.8%

1.7%

0.7%

0.3%

Visible Achievement

Young Optimism

Conventional Family Life

Socially Aware

Traditional Family Life

Something Better

Look At Me

Fairer Deal

Real Conservatism

Basic Needs

Top values segments for Melbournians born in Asia (12% of population from survey)

138

150

208

66

39

66

77

45

38

11

Index

To be excited and

challenged and free to

travel

To build relationships

and be fit and healthy

To speed things up and

stay up to date

To be known as a

source of power and

authority

To save time and be

able to achieve results

To be successful,

attract praise and

attention

To express love and

affection to all family

members

To satisfy household

needs and have good

food

To help their kids be

safe, smart and

successful

Source: Roy Morgan Research, Holiday Tracking Survey and Single Source Data. April 2016 – March 2018. n = 280

MAPPING LIFESTYLE LEADER SEGMENTATION TO HELIX PERSONAS

• Based off Roy Morgan single source data in the same way as Lifestyle

Leaders

• Helix Personas is a geo-psychographic segmentation encapsulating 56

unique mindsets across the Australian population, grouped into 7

communities

• These personas can be mapped to every SA1 in Australia and their

specific media consumption

HELIX PERSONAS WILL FACILITATE

• Enhanced geo targeting

• In the digital environment - better attribution of marketing spend as

website traffic can be identified by specific Helix Personas

• Evaluation of 2nd party data from Partners that match the core Helix

Persona targets and buy and scale these audiences

NEW HELIX PERSONAS SEGMENTATION

460

461

189

104

511

101

188

100 Leading Lifestyles

200 Metrotechs

300 Today's Families

400 Aussie Achievers

500 Getting By

600 Golden Years

700 Battlers

Helix Communities by Population ('000) -Australians born in Asia

121

59

82

110 Savvy Self Starters

209 Social Academics

210 Quiet Achievers

Helix Personas - Australians Born in Asia ('000)

Those born in Asia do

spread across

Communities / Personas

but two Personas stand out

in size and potential value

HELIX PERSONAS SEGMENTATION WILL PROVIDE A NEW

GRANULAR WAY TO TARGET THESE INDIVIDUALS

110 Savvy Self-starters

HELIX PERSONAS SEGMENTATION WILL PROVIDE A NEW

GRANULAR WAY TO TARGET THESE INDIVIDUALS

Detailed media targeting information

(Social academic example shown)

Market sizing

THE GROWTH OPPORTUNITY-

INTERNATIONAL

VICTORIA’S INTERNATIONAL MIX

International Visitation

to Victoria (‘000) International Expenditure

to Victoria ($m)

Source: International Visitor Survey, Regional Expenditure Model, Year ending March 2018

VISITING FRIENDS AND RELATIVES IS A LARGE PART OF THE

TOURISM MIX, PARTICULARLY FOR CHINA AND INDIA

20% of visitors

from China and

50% from India

are here for

VFR 389

122 130 12449 68 74 59

122

14570 102

72 60 3430

141

97

5138

34 23 3418

0

100

200

300

400

500

600

700

China NewZealand

UnitedStates ofAmerica

UnitedKingdom

India Malaysia Singapore Hong Kong

Visitors to Victoria by Purpose of Visit

Other

VFR

Holiday

Source: Tourism Research Australia, International Visitor Survey. Year Ending December 2017. Visitors to

Victoria by Stopover Reason. Countries with over 100k visitors shown

THE DEMOGRAPHICS OF THE CHINA AND INDIA MARKETS

– MANY COMMONALITIES

Source: Tourism Research Australia, VISITING FRIENDS AND RELATIVES IN VICTORIA:

THE CHINA AND INDIA MARKETS, July 2017

Younger hosts with

older guests

45% hosts under 30

78% guests over 30

61% hosts under 35

57% guests over 35

Working full time

as permanent residents

or citizens

62% working FT

35% citizens, 43% PR

56% working FT

64% citizens, 25% PR

Are largely settled

in Australia

61% been in Australia for

6+ years

74% been in Australia

for 6+ years

CHINESE & INDIAN VISITOR PLANNING

Source: Tourism Research Australia, VISITING FRIENDS AND RELATIVES IN VICTORIA: THE CHINA AND INDIA MARKETS, July 2017

• Detailed planning when visitors arrive/ Visitors and hosts discuss together/

the host in most cases makes logistical arrangements

• Digital information – vital planning tool (and in Mandarin for the Chinese

market). Official Government sites as well as industry sites (airlines,

hotels) are trusted and used

• Hosts want to and feel pressured to deliver on a good time/ for this reason

many take their visitors back to familiar places that they know can deliver

the goods

VISITATION PATTERNS

• Melbourne attractions that feature include Melbourne Zoo, Melbourne

Museum, Sea Life Melbourne Aquarium and in the case of Indians, MCG.

Shopping high on the agenda

• Approx 60% of Chinese and Indian visitors travel in hosts’ vehicles

• Day trips for both VFR source markets include GOR, YV, Goldfields, PI

Daylesford and Gippsland

• Likelihood of overnight visitation is strong for the Indian market in Phillip

Island and High Country and for the Chinese market in DMR and YV

• Indian market predisposed to visiting Snowfields and Wilsons Prom in

particular

THE POWER OF INFLUENCE

BY NEW MELBOURNIANS

LEVERAGING NEW MELBURNIANS FOR VFR FROM CHINA & INDIA

• New Visit Victoria campaign in development

• Objective – to increase economic contribution from VFR - especially in

regional Victoria

• Potential source markets: China and India

• Targeting both hosts and guests

• Key insights: Hosts will only visit/recommend places they have

experienced themselves – including what lies beyond the CBD

LIKELY CAMPAIGN ELEMENTS

• User Generated Content to issue invitations to friends/relatives overseas

• Leverage of Ambassadors/Advocates

• Competition element based on creative story telling and most effective

destination pitch

• Tech platform will allow us to target this audience at a granular level, and

find similar audiences at scale

• Supporting marketing activity with airline partner and KDPs

USEFUL LINKS – CULTURAL AWARENESS

• India cultural awareness:

https://asialinkbusiness.com.au/uploads/content/Westpac_Cultural_Awaren

ess_Guide_India.pdf

• Chinese cultural awareness:

https://asialinkbusiness.com.au/uploads/content/AsialinkBusiness_Westpac

_Cultural_Awareness_Guide_China.pdf

KEY VISIT VICTORIA CONTACTS

Intrastate

• Charles Deuchrass – Regional Brand Campaign Lead – Domestic Markets

International

• Sissi Wang – Market Development Manager Greater China

• Sarah Breheny – Market Development Manager South & South East Asia,

Japan & Korea

WRAP UP

Intrastate

• With intrastate visitation at all time highs, new segments need to be

examined for future growth potential

• New Melbournians from China and India represent an opportunity to be

explored – they have unique attitudinal profiles and can be specifically

targeted

International

• The opportunity to leverage resident Chinese and

Indian residents for VFR

QUESTIONS?