Q: So is there life after Qantas?

A: Yes, there is. Really. I loved being at Qantas but it was just as pleasant to move on. And I am enjoying being chairman of Tourism Australia. I don’t think there is any job as tough as running an airline. Everything after that is easy.

Q: Some could say you left at a good time, on a high, because things are looking really tough for Qantas right now?

A: I think I had my share of challenges – I call it the constant shock syndrome. I took over Qantas right after 911, then there was Ansett, SARS, Asian financial crisis, and oil prices in 2007 went to $145. All I see is history repeating itself. It’s a very difficult industry and won’t get any easier and it is a credit to airlines like SIA, Qantas and Cathay that are still profitable and are not protected in any way. 

Q: It’s interesting. In Singapore, the chairman of Singapore Tourism Board is also an ex-airline man, Chew Choon Seng, who was CEO of Singapore Airlines. Are we finally seeing a better understanding of the role aviation can play in a nation’s tourism industry?

A: I obviously have a more understanding picture of Australian tourism now – the need to be as accessible as possible. Australia is an island with many gateways, unlike Singapore which has one gateway. So yes, it has highlighted for me the importance of aviation to Australian tourism. 

Q: When you were at Qantas, you were obviously not for open access while now you’d like to see more?

A: I have always believed in deregulation and I always felt that Australia had to get the same advantages from bilateral negotiations as other countries. When I was with Qantas, my view was that I didn’t think that was always the case and that there were markets that Qantas couldn’t get access to. 

Q: Other than accessibility, what other challenges do you see ahead for Australian tourism?

A: Oil price is a concern – it hurts the airlines which feed into tourism. Airlines must put fares up and the more costs go up, the more difficult it is for tourism. 

Then there’s competition. There is so much more competition now and every country believes it has a unique product and understands tourism is a major source of revenue. It wasn’t the case 15-20 years ago. The amount of activity from destinations such as India, Malaysia and Singapore is incredible. We’ve also seen a lot of investments in tourism infrastructure across the region – look at Singapore with the two Integrated Resorts and how that’s changed the game there. 

Australia needs investments particularly at the high end and this is something Tourism Australia will be working on – to make it easier for foreign investors to come in and make a good return on investment. There is no shortage of sites and attractions – we are one of the most diverse countries around and we have the best domestic air system in the world with low fares. 

Another challenge is we are at full employment so attracting and retaining people is more difficult. Again, this is something Tourism Australia is looking at.

Q: So Tourism Australia’s role is being expanded to becoming more than a marketing organization?

A: Yes, that’s why we have set the 2020 Tourism Industry Potential plan and we are getting all the different states behind it. We’ve been too fragmented as an industry and we have been having a lot of positive meetings with state tourism bodies to find better ways of working together. It’s an important way to go forward. (The 2020 Tourism Industry Potential targets are to double visitor expenditure from current A$70 billion to $115-$140 billion and increase visitor arrivals from 6 million to 10 million.)

Q: I see the new plan puts a strong focus on Asia.

A: There’s no doubt about where the growth will come from. This is the Asian century and we are seeing big growth in aviation in the region. Qantas has long engaged with Asia, and China Southern Airlines is becoming very active. China will become our fourth largest market within the next eight years.

Q: Do you see more growth coming from low cost airlines though?

A: Low cost carriers will be vital to growth – whether it’s Tiger, AirAsiaX or Jetstar – but you also need the full service airlines – they still provide the majority of cheap seats anyway and at the same time, they are important for business tourism and high-yield tourism as well. 

Q: What’s your view on where the airline industry is going with ancillary revenues? I went to a restaurant in Sydney the other day where everything on top of the meat or fish came with an extra charge.

A: Yes, I had the same experience too (laughing). It’s a tough business and everyone has to figure out how to make more money. Different airlines are doing it differently, we’ve got all kinds of models. The low cost airlines have been very successful but they will be hurt the most by high fuel prices because the highest cost item is still fuel. Some people want it in one price, some people want to pay for what they consume only. I think in the end, it will become very difficult for consumers.

Q: Which is where travel agents, intermediaries, come in surely? As it becomes more complex for customers, travel agents have a bigger, not smaller, role? 

A: I have always found travel agents remarkably flexible in how they have managed with the various changes in the industry. There have also been a lot of casualties of course and it’s always the flexible ones that will survive.

Q: What do you think of the brand campaign, “Nothing Like Australia”?

A: One of the first things we wanted to do was get the marketing to be more consistent. Through no fault of its own, in the last 10 years, Tourism Australia has had four CEOs, four to five chairmen, four to five ministers – it’s hard to get a consistent message out. We believe this campaign will give us four to five years of continuity and we need that.

Q: It focuses a lot on social media. What’s your take on this phenomenon?

A: I think young people have to be careful about how they use it; it can come back and bite you. For Tourism Australia, it’s worked very well and is hugely important. But I don’t think you can just forget the other media. One can get too carried away with social media, I think. But as a tourism board, we really do have to be at the forefront 
 of social media.