our direction in china - year one progress library... · 5 pillars for success aviation development...

Our Direction in China - Year One Progress

2012 - 2015

Since 2010 visitation from

China has grown by 67%

Western Australia received 5.6 per

cent of total Chinese visitation

to Australia in 2012

Since 2010 Chinese visitor spend in WA has increased from

$120m to $170m

Year One Progress Report for China Strategy “Our Direction in China 2012- 2015” Tourism Western Australia

2

SUMMARY OF CHINA STRATEGY THREE YEAR PLAN, GOAL AND OBJECTIVES

• clearlyidentifyourtargetmarketssothatresourcesmaybeallocatedaccordingly

• provideadrivertoinformkeystrategicpartnerships and leverage activity

• provideindustrywithaguidetoenablethemtodevelopindividualstrategiesforthemarket

• addressknowledgegapsandcommunicateoutcomestoourkeypartners

• leverageactivitybeingundertakenaspartoftheNationalandStateplanningdocumentsincludingTourismAustralia’sChina2020strategicplan.

OUR GOALInWAweaimtoattract100,000 Chinese

visitors spending $500mby2020

CriticaltoWA’soverallgoalofdoublingtotalvisitorspendfrom

$6b to $12b by2020

m = Million b = Billion

ThestrategyisaworkingdocumentandwasdesignedtoidentifythekeyprioritiesforTourismWesternAustraliatoundertakeinconjunctionwithawidevarietyofChinatourismstakeholdersoverthenext three years to reach our goal for 2020.

TourismWAhasundertakenarangeofmarketingactivitiesandmajorcampaignswithstrategicpartners. As a result of the proactive approach, Western Australia received 5.6 per cent of total Chinese visitation to Australia, attracting 33,000 visitorstotheStatein2012(growthof50per centcomparedto2011).

The key objectives of the strategy are to:

• clarifyandcommunicateourdirectionforthefutureoftheChinesemarketintoWesternAustralia


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A dragon worth chasing

In Australia Chinese visitor spend isforecasttogrowby$3b

in 2010 to $9b in 2020

How is China tracking

120

2010

20

33

100

Visitors

Vis

itors

(’00

0)

Visitors to WA from China (‘000)

Target Visitors

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

100

80

60

40

20

0

$170

$500

$120

$600

$500

$400

$300

$200

$100

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

$-

Spen

d ($

Mill

ions

)

Spend Target Spend

Spend in WA from China ($m)

120

2010

20

33

100

Visitors

Vis

itors

(’00

0)

Visitors to WA from China (‘000)

Target Visitors

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

100

80

60

40

20

0

$170

$500

$120

$600

$500

$400

$300

$200

$100

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

$-

Spen

d ($

Mill

ions

)

Spend Target Spend

Spend in WA from China ($m)


4

WHO ARE WE TARGETTING? WhoarewetargetingandwhatsetsusapartfromtheotherglobaldestinationsandtheAustralianeastern states?

Experienced Travellers• Aremorelikelytobe35–50yearsofage

• Aregenerallymarriedwitholderchildren

• HavebeentoAustraliabeforeandaremorelikelyplanningtovisitAustraliaagain

• Prefertotravelingrouptours(GIT)

• Visiticonicdestinations,landmarksandnaturalwonders

• Choiceisaboutvalueformoneyandhighqualitypackages

• Influencedbyword-of-mouthrecommendationsand travel agents

Adventure Seekers• Aremorelikelytobe28–35yearsofage

• Aremorelikelytobesingle

• Areunlikelytohavechildreneveniftheyaremarried

• WelleducatedandcompetentinEnglishlanguage

• Seeknewexperiencesandadventures

• SomearemorelikelytohavebeentoAustraliabefore

• Wanttofeelfreeandexplore

• PreferFreeandIndependentTravel

• Socialmedia,internetandtechnologicallysophisticated

• Arelikelytodisperse


5

WHERE ARE WE TARGETTING?

OurprimarymarketsareBeijing,ShanghaiandGuangdongProvince.ThesewillbethekeymarketsforTourismWA’sconsumer,tradeandcooperativemarketingprograms.

Oursecondarymarketsarethosewithagrowinglong-haulleisuretravelmarketout of the Western China Region.

Wewillinvestigatethepotentialofkeycities such as Chengdu and Chongqing inthisregionandinvestinthesecitiesbyproviding training and organising trade familiarisationtoursin2013-14.

BEIJING

TIANJIN

QINGDAO

NANJING

SHANGHAI

NINGBO

HANGZHOU

CHENGDU

CHONGQING

DONGGUAN

SHENZHENGUANGZHOU

FOSHAN

Primary Markets

Secondary Markets

5 pillars for successAviation development

Consumer marketing

Industry development

Trade development

Stakeholder relationships


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FIVE KEY PILLARS THAT UNDERPIN THE SUCCESS OF THE CHINA STRATEGY

Aviation Development

•DevelopmentofdirectandindirectservicesintoandwithinWesternAustralia

•Furtherstrengthenpartnershipswithinternationalairlines

•Encouragenewairlinestocommencedirectservices

•FacilitategrowthofairservicesintoregionalWA

Progress Snapshot Highlights

•ChinaSouthernAirlines(CZ)threeweeklydirectflightsintoWAstabiliseswithapotentialto increase frequency in the next three years

•SuccessfulbrandcooperativemarketingallianceswithCZandTourismAustraliawithestimatedmediaexposureofAUD$1.43m

•IncreasedMOUmarketingfundingwithSingaporeAirlinesforcooperativecampaignstopromoteWAinChina

Tourism Australia’s “There’s Nothing Like Australia” brand ad images: Beijing International Airport Light Box display and Wangfujing Beijing & Brand Ad.

1. AVIATION DEVELOPMENT


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Consumer Marketing

•Confirmingourbrandpropositionandidentifyingappropriatemarketingchannels

•BetterunderstandingofourtargetconsumerandtailorbrandandeventcampaignsinlinewithChinese visitor needs

•Identifyandengagetraditionalandnon-traditionalpartnerstoprovideanincreasedrangeofmarketingopportunities

•AddressthelackofawarenessofWAandovercomenegativeperceptionsoftheStatebyincreasingconsumermarketingandpublicrelationsefforts

•Maximisereturnoninvestmentviahighlytargetedmarketinginitiativeswhichencompassgeographicandsegmentbasedpriorities

•PromoteourextraordinarynaturaltourismanduniqueproductofferingstoassistinpositioningWAasapremiumdestination

•Leverageexistingeventsandconsiderdevelopmentofneweventstoincreaseconsumerawareness


•UndertookresearchofWA’scorebrands,assessedtherelevanceofPerthbrandimageryanddevelopednewbrandadvertisingfortheChinamarket

•LaunchedasuccessfulonlineconsumercampaigntopromotetheBHPBillitonAquaticSuperSeriesinChinabypartneringwithglobalsportingcompanySPEEDO.Thecampaigngenerateddestinationawarenessandestimatedadvertisingandmediavalueworthmorethan$80,000

•EstablishedsocialmediapresenceinChinaonWeibowithmorethan8,000fansasof November2013

•DevelopedaconsumerandPRmediaplanwithafocusonpromotingkeyeventssuchasthePerthInternationalgolftournament,andtheMargaretRiverGourmetEscapefoodandwinefestival,andtheSino-AustraliaBasketballChallengeandtheBHPBillitonAquaticSuperSeries

•SignedamemorandumofunderstandingwithUnionPayInternationalinOctober2013inChinatoboostChinesevisitornumbersandspendinginWA

2. CONSUMER MARKETING


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Sino-AustraliaBasketballChallenge

Leveraging Eventscorp supported events for the China market by developing a consumer and PR media plan with a focus on promoting key events:

BHPBillitonAquaticSuperSeries

Perth International


9

MargaretRiverGourmetEscape

3. INDUSTRY DEVELOPMENT

Industry Development

•EnsuringWAindustryispreparedfortheincreaseinChinesevisitors

•UndertakeacoordinatedapproachtoaddressingChinesevisitorrequirementsinvolvingindustry and the local Chinese population

•WorkwithkeypartnerstoensureWA’stourismindustryisequippedwiththeknowledgeand training required to service Chinese visitor expectations

•LeverageexistingnationalprogramsaimedatincreasingChinesevisitorsatisfaction


10

China Mission 2012


•DevelopedadedicatedChinaonlineindustrytoolkittoprovideeasyaccesstotrainingandguides on China for the WA Industry

•AddressedthelackofskilledMandarin-speakingguidesinWAwitheightstudentssuccessfullycompletingafourmonthCentralTAFECertificateIIIcourseinSeptember2013

•ProvidedaplatformforaccreditedoperatorstoshowcaseandpromotetheirproductsandservicesattheannualTourismWAChinaMissioninkeyprioritycities

•UndertookextensivedestinationandproductknowledgetrainingfortheEastCoastInboundTourOperatorsthroughfamiliarisationtripsandworkshops

•FormedaChinaIndustryAdvisoryGroup(CIAG)inMarch2013toengagekeyWAoperatorswhoareactiveintheChinamarkettosharemarketinsightsandseektheiradviceonthekeyissuesandchallengesfacingtheWAindustry

•IncreasedculturalawarenessandChinareadinessbyconductingmorethan10ChinaReadyworkshops.TheworkshopswererunbyTourismCouncilWAandAustralianTourismExportCouncilbetween2011and2013acrosstheState

•ConductedextensiveVisitorSatisfactionResearchtomonitorandimprovevisitationandvisitor experiences in Western Australia

- 97 per cent of Chinese visitors rated their holiday in WA as good, very good or excellent.

-Thehighlevelsofsatisfactionweredrivenbythecleanandfreshenvironmentandthefriendlylocals.Overhalf(56percent)statedtheirholidaywasbetterthanexpected.

-Closetoninein10wouldrecommendWAtootherpeopleasaholidaydestination,withthemajorityindicatingtheywouldbe‘verylikely’torecommendWA.

3. INDUSTRY DEVELOPMENT continued...

ChinaMission2013Hangzhou


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Trade Development

•Engagingourtradepartnersinmarkettoeducateandgainsupport

•DrivingdemandwithChinatradepartnersbyengagingtheminarangeofactivities

•IncreasepackagingofWAthrougheducationofretailtrade,trademediaandAustralianbasedInboundTourOperators

•Workwithtradetodevelopallmarketsegmentsincludingbusiness,educationandleisure

•UndertaketacticaltradecooperativeinitiativesaimedatenhancingconsumerawarenessofWAinlinewithourbrandstrategyandincreasingvisitationtotheState

•LeverageTourismAustralia’stradestrategyinChinaandbroadenitsfocusonnaturaliconicexperiences

4. TRADE DEVELOPMENT

ChinaMission2013Hangzhou

‘‘The friendly people and high quality of public

security.”

“It has clean air, nice people and it’s a clean city.”

“The blue sky, blue sea and the friendly people.”

“I like the beautiful scenery.”

“It’s a simple life in a good

environment.”

“I like the beaches and park.”

“It has clean air, nice people and it’s a clean city.”

“The blue sky, blue sea and the friendly people.”

Some of the comments from the Chinese visitors as part of the Visitor Satisfaction Research:


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•LaunchofMono-destinationprogrampackagingtointroducepurelyWAproductandservice

•ProvidednationwideextensivetrainingandworkshopsfortheAussieSpecialistProgramandPremierAussieSpecialistagentstoincreasedestinationandproductawareness

•Successfulpartnershipwith16keytravelagentsinChinausingTourismAustralia’s‘There’s Nothing Like Australia’brandingtopromotemorethan44touritinerariesonlineandofflineacrossourkeyprioritycitiesinChina

•HostedmorethaneighttradefamiliarisationtripsfortopoutboundagentstoWAtoexperienceourextraordinarytourismassetsinthefiveregions:ExperiencePerth,Australia’sSouthWest,Australia’sCoralCoast,Australia’sGoldenOutbackandAustralia’sNorthWest

• LaunchedTourismWA’sfirstChineseTravelPlanner2013-14.TheplannerprovidesessentialtravelinformationonWAfortheChinesetravellers,travelmediaandkeyoutboundoperators

4. TRADE DEVELOPMENT continued...


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Stakeholder relationship

•Leveragingtheactivitiesofexistingproductsandbusinessinmarketandaligningouractivity

•BuildrelationshipsandclearlycommunicateourobjectiveswithStateandlocalWAgovernmentdepartmentsandacademicproviderstoinfluencetheiractivityandencouragethemtosupportourstrategy

•Developpartnershipswithtraditionalandnon-traditionalgovernment/privatesectorincludingeventholdersandleveragetheiractivityinthemarket

•CapitaliseontheAustralianandWAgovernment’scredibilityinthemarketbybuildingtrustandmaintainingcloserelationshipswithkeystakeholdersinChina


•Developedstrongerpartnershipswithstakeholdersacrossprivateenterprises,StateandlocalgovernmentstoinfluencetheiractivityandencouragedthemtobeadvocatesofourChinastrategy.MembersofChinaStrategyWorkingGroupdevelopedaYearOneimplementationplanwhichoutlinedpriorityactions,associatedtimeframestoensurealignmentwithexistingprograms

•LeveragedtheSisterStaterelationshipwithZhejiangtodeveloppartnershipswithtourismoperatorsinZhejiangincludingZhejiang’sJiaxinghigh-levelvisithostedbyBunbury-JiaxingBusinessOfficeandSouthWestDevelopmentCommissioninMay2013.TourismWAprovidedassistancetoSWDCandBunbury–JiaxingBusinessOfficeandhostedanetworkingeventforthe visitors

•On-goingcooperativecampaignwithStudyPerthandCityofPerth’s‘Picture Yourself in Perth’inNanjingandChengdutherebyenhancingSister-Cityrelationships

5. STAKEHOLDER RELATIONSHIPS

NEXT STEPS: OUR STRATEGIES 2013-14• Toidentifythemostpotentialandvaluable

marketsegmentswithanemphasisonrepeattravellers

• TocreateaclearandsimplesellingpropositionthatisunderstoodbyallChinastakeholders

• TopromoteWAasaninspirationalMonodestinationwithadiverserangeofexperiencesandhighlightthepointsofdifferencefromother Australian destinations

• TodevelopalocaliseddigitalstrategythatworksfortheChinamarketplace

• “Chinafocus”Perthbrandimageryforarangeofconsumercampaigns

• StrategicuseofeventstoincreaseawarenessofPerth/WAinkeytargetsegmentsinChina

• TopartnerwithUnionPayInternationalinconsumerandtradedevelopmentactivitiesaftersigningthememorandumofunderstandingtoboostChinesevisitornumbersandspendinginWA

• Tostrengthenthepartnershipin2013-14,TourismWesternAustralia,ChinaSouthernAirlinesandTourismAustraliawillbeincreasingtheinvestmentto$2.7mviaajointmarketingagreementtoraisetheawarenessofWesternAustralia as a holiday destination

• Topartnerwith17keytravelagentsinkeycitiestojointlypromoteMonoWAtourpackagesanddrive the conversion


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SETTING MILESTONES AND EVALUATING THE PLAN

1. ContinuetoleverageactivitiesbeingundertakenbyTourismAustraliainChina

2. Continue to identify traditional and non-traditional partners for cooperative campaignsinChina

3. ContinuetoworkcloselywithindustryandstakeholdersonChinareadinessandincreasing visitor satisfaction levels

4. ContinuetobuildrelationshipsandcommunicateourobjectiveswiththeStateandlocalgovernmentdepartmentsandeducationproviderstoinfluencetheiractivityandencouragethemtosupport our strategy

5. ReviewandreportbacktoallstakeholdersontheprogressofkeydeliverablesintheChinaStrategyimplementationplanforyeartwo

6. Monitor the progress of phased visitation and spend targets


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NOTES:

Tourism Western AustraliaLevel 9 2 Mill StreetPERTH WA 6000GPO Box X2261PERTH WA 6847

Tel: 08 9262 1700Fax: 08 9262 1702

[email protected]

westernaustralia.com tourism.wa.gov.au

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