But for today, the sun shone at the opening of the ATEC 2012 Symposium. The venue is the Coolum Resort & Spa which until a few weeks ago was managed by Hyatt but a disagreement (to put it politely) between the new owner, Clive Palmer, and the hotel group led to a cessation of ties.
The man who drove me to my room late last night told me nothing much has changed. Most of the staff are still here, they still wear Hyatt ID tags and the group’s name is still on most things. I kinda feel like I am in twilight zone – you know, when you are caught between two worlds.
Which is where Australia is right now, I suspect.
A kind of in-between time in their tourism industry when the past on which it was built – traditional feeder markets of New Zealand, UK & Europe and the US – has to make way for a future which has to, like it or not, embrace the new world of Asia.
How do you hold on to one world while kick-starting another?
That’s the challenge facing members of ATEC, which stands for the Australian Tourism Export Council. They were formerly called the Inbound Tour Operators Association, and they are 40 years old.
And as managing director John King observed, what a change the past four decades have wrought. 426,000 arrivals 40 years ago and no Asian market to speak of. Fast forward to now and it has six million visitors, half of whom come from Asia and China, then an impoverished nation, now tipped to become the largest market to the country.
And the next 40 years? Who knows – but what’s for sure is the message that’s coming across loud and clear at this two-day event in Queensland.
Australia’s tourism industry has to think differently and do things differently if it is to achieve its target of A$140 billion tourism receipts by 2020. Anthony Hayes, CEO of Tourism Queensland, speaking on a panel said it bluntly, “We’re not going to get there by doing things the same. We have to innovate.”
It also means being more aggressive on growing the markets in Asia. Andrew McEvoy, managing director, Tourism Australia said that didn’t mean just China but also other markets such as India, Indonesia, Singapore, Malaysia, Vietnam and the Philippines.
The shift in emphasis is seen in the allocation of marketing budgets. In 2011/12, Tourism Australia will spend 53% of its marketing budget in Asia. This compares with 45% roughly 10 years ago. Next year, the percentage will rise to 57%.
At the symposium, Minister for Resources, Energy & Tourism, Martin Ferguson, announced additional funding of A$1 million to develop a customized Chinese website “to deliver our message in a tailored way”.
It is clear though that there is discomfort among some suppliers with the new emphasis on Asia. They have built long relationships in traditional feeder markets and are comfortable looking after those visitors who do tend to stay longer and disperse beyond cities.
But McEvoy said it was time to let go of old stereotypes that Chinese visitors only tended to stick to cities. He said the market had evolved and there were emerging segments of young travellers who are seeking new experiences.
And China is so huge that even if you take a niche segment, it can be bigger than entire countries, he said. “We are interested in the 15 million Chinese that are travelling beyond Asia to further destinations,” he said.
“We have what they want – environment and friendly people,” he added.
Tourism Australia will pursue an active digital strategy in markets in Asia. In China, it would use social media actively. He shared a video made by a young Chinese couple on their holiday in Australia which they shared.
“We must empower them to share. Social media is marketing on steroids,” he said.
Tourism Australia’s Facebook page now has three million members, the biggest of any tourism organization, and is growing by 20,000 to 30,000 a day. Of these, 1.2 million are Australians.
Minister Ferguson however warned that growth from Asia was not a given. Australia has to keep delivering quality tourism experiences and he said that he has had to suspend a few operators due to a breach of the code of ethics. “We must ensure no damage to Brand Australia.”
This week too Tourism Australia, together with Austrade, launched an Australian Tourism Investment Guide. “We’ve never been active chasing international investments in tourism and now we have to,” he said.
Like the resort where I’m staying, it is clear that Australia is also in the twilight zone where its tourism infrastructure is concerned. Coolum Resort & Spa was built in the 1980s by Japanese interests. Palmer, a mining billionaire, reportedly paid A$80 million for it. There’s not been much new plant built since.
At the time of purchase, Palmer told the media he saw an opportunity to get into a future growth market at a bargain price. “Back in the 1980s when you had a government that actually promoted tourism, there were Japanese flocking to Australia,” he said.
“When we get a (state) government in power next year that actually promotes tourism we can do the same thing again, only this time with the Chinese. They’re travelling a lot more and we can target them to come to Australia. And why not the Sunshine Coast — it’s an excellent property, in good condition.”
Tourism Queensland’s Hayes said what Australia needed was for rich Australians like Palmer, who had made money from a booming mining sector, to invest in tourism. That’s the third twilight zone by the way that Australia is in – mining is booming while tourism is floundering and the dilemma is how to get the two sectors to work together for mutual benefit.
Said Hayes, “Mining offers a fantastic opportunity for the tourism industry in Queensland. It is driving population growth and wealth in central Queensland. We are starting to see a new travel pattern. Instead of only thinking about visitors travelling from south to north, we now need to think about visitors travelling from east to west.
“Mining communities offer a great opportunity for interstate tourism. This will generate more cash flow for tourism operators who can then spend some money on upgrading their businesses. This, in turn, will make our tourism product more attractive to the international visitors who demand quality experiences in Australia.”



