Tourism Noosa Global Market Strategy 2015-2017

TOURISM NOOSA GLOBAL MARKET STRATEGY 2015-2017

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Contents Noosa’s sustainable tourism growth

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Building a strong global market Strategy development

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Global visitor market

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Airlines and access

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Noosa’s current brand profile

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Noosa’s brand essence

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Strategic market and activity plan areas

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Brand positioning Brand partnerships Wholesale partnerships Product development with industry

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Trade engagement Strategy implementation

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Noosa’s sustainable tourism growth Tourism Noosa’s Sustainable Destination Action Plan 2013-2016 (SDAP) sets a path for the future growth of tourism in the Noosa region and defines priority areas of focus to meet an overall goal of increasing total visitor spend to $1 billion.

Developed in support of the regional, state and national 2020 tourism strategies, a core objective in achieving this goal is to direct more effort towards attracting high value visitors from key interstate and international markets.

Sustaining a stable base of inbound visitation during the challenges of the GFC, Noosa is poised to elevate its profile and performance in the recovering global marketplace and to grow its share of Queensland’s international visitation.

Tourism Australia Tourism 2020 strategy aims to increase overnight tourism spend up to $140 billion by 2020.

Tourism and Events Queensland 2014– 2018 Strategic Plan aims to increase overnight tourism spend to $30 billion by 2020.

Sunshine Coast Destination Tourism Plan outlines directions to contribute approximately $3.9 billion towards the state’s 2020 target.

Tourism Noosa Sustainable Destination Action Plan aims to increase total (day trip and overnight) tourism spend to $1 billion. In contributing to meet this target, Noosa’s Global Market Strategy aims to increase inbound overnight spend to more than $185m by 2020.

Forecasts are produced based on the assumption of steady growth over the next decade.

Building a strong global market The Noosa Global Market Strategy 2015-2017 sets a clear vision to achieve this, outlining initiatives that seek to build a sustainable global market for Noosa, focusing on brand profile, beneficial partnerships, trade engagement, product development and consumer marketing.

In assisting to reach the SDAP spend target of $1 billion, the Strategy has a focus on activity to target value visitors with yield potential and aims to even seasonality by complementing Noosa’s strong domestic visitation.

Realisation of the actions outlined in this Strategy will be in partnership with industry and other local, state and national stakeholders including Noosa Council, Sunshine Coast Destination Ltd, Tourism and Events Queensland and Tourism Australia.

Tourism is a critical economic pillar of the Noosa region, making a direct contribution of over $700m annually to the local economy and offering employment to around 20,000 people.

VISITORS

1.937m = 714,400 + 1.087m + 135,900 TOTAL DOMESTIC OVERNIGHT

DAY TRIP

INTERNATIONAL OVERNIGHT

SPEND

$703m = $470m TOTAL DOMESTIC OVERNIGHT

+ $77m DAY TRIP

+ $156m INTERNATIONAL OVERNIGHT

Source: Tourism Research Australia, National and International Visitor Survey YE June 2015 / EMDA. Based on Noosa Council boundary.

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The Noosa Global Market Strategy will grow the benefits of international tourism with a focus on activities to: • Broaden Noosa’s current brand position • Identify and develop appropriate brand partnerships • Develop trade partnerships and enhance destination knowledge • Assist product development in the local industry • Actively engage with key media and influencers Activity measures have been set to ensure implementation is focused on clear outcomes: • Increased visitor spend in Noosa • Greater share of state visitor spend • Expanded travel trade support for destination and product • More industry participation in the inbound market • Enhanced positioning and awareness of brand Noosa NOOSA INTERNATIONAL SPEND TARGET

From $156m in 2015

To $185-200m by 2020

$167m by 2017

Strategy development In developing this Strategy, Tourism Noosa undertook an extensive consultation process to ensure that the vision and proposed actions would be informed and relevant.

Insights have been gleaned from meetings with over 300 trade, government and industry partners and a focused insight process was conducted via qualitative interviews with almost 50 senior trade and industry representatives from around the world.

The Strategy has also been assisted by insights from Tourism Research Australia and Tourism and Events Queensland, aviation industry research from Brisbane Airport Corporation, the Department of Infrastructure and Regional Development and statistics provided by Sunshine Coast Airport Limited.

The consultation and insight phase aimed to gain clarity on: Noosa’s current global brand positioning

Areas of strength and opportunity in marketing Noosa globally

Priority and secondary target market profiles and markets

Target audience trends and needs to develop meaningful engagement strategies

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Tourism Noosa Global Market Strategy 2015 - 2017

Global visitor market The attraction and dispersal of international visitors into Australia’s diverse regions remains challenging due to airline and airport access, the distance of regional destinations from major arrival cities and the varying time constraints of visitors.

Tourism Noosa’s Global Market Strategy necessarily relies on the efforts of Tourism Australia and Tourism and Events Queensland to direct this dispersal into our local region. Following is a snapshot of current market profiles at the national, state and local level.

AUSTRALIA

TOP 5 SPEND MARKETS Share of total trip expenditure

Tourism Australia’s Tourism 2020 Strategy launched in 2010 was a rallying call to Australian industry and governments to increase revenue and employment in the tourism sector.

$1.3b

$2.5b

$3.0b

$3.5b

Latest data from the International Visitor Survey (IVS) shows that inbound visitation to Australia continued its recent trend of growth underpinned by strong results in the leisure market.

$7.0b

The strategy aims to increase overnight tourism spend from $70 billion in 2009 to $140 billion by 2020.

In the year ended June 2015 the number Source: Tourism Research Australia (IVS) of visitors arriving for leisure increased 5% to 2.9 million; nights decreased 2% to 71.5 million and trip spend was up 7% to $12.9 billion.

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QUEENSLAND Tourism and Events Queensland aims to achieve the goal of $30 billion in total visitor expenditure by 2020. Recent results in inbound travel to Queensland suggest that the contribution of international visitation to this target will be considerable, with a 14.8% increase in expenditure to reach $4.6 billion, the strongest spend result on record for Queensland.

There was good growth in the number of international visitors to Queensland in the year ending June 2015, with an overall 7.7% increase to 2.2 million.

Queensland had the strongest share of holiday visitors as a proportion of all international visitors to Australia at 67.8%.

New Zealand is Queensland’s largest source market with 421,000 visitors, followed by China (359,000), UK (217,000) and USA (183,000).

After several soft quarters, the number of German visitors to Queensland returned to trend and increased strongly, reaching 84,000 visitors, a 19.4% increase. German overnight visitor expenditure increased 20.3% to $166.1 million.

ANNUAL CHANGE IN VISITORS FROM KEY MARKETS 20%

15%

10%

5%

0%

-5% Source: Tourism Research Australia (IVS)

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Tourism Noosa Global Market Strategy 2015 - 2017

NOOSA In the year to June 2015, international visitors to the Noosa region increased 18.8% to 136,000, with strong visitation from all key markets.

The UK is Noosa’s number one inbound market, averaging almost 30,000 visitors per year and delivering an annual spend of about $50 million, the largest contribution to Noosa’s inbound spend of any international market.

For Noosa, the year to June 2015 saw: • NZ visitation increase 11% to 19,500 • North America (USA and Canada) up 24.3% to 14,500 • Germany up 5% to 19,600 • The UK up 36.7% to 36,800 INTERNATIONAL OVERNIGHT VISITORS (Total: 136,000 - YE June 2015)

Inbound visitor nights increased 11% to 895,000 in the year ending June 2015, with increases in most key source markets: • NZ increased by 6% • North America was up 88% to 137,000 • The UK strengthened considerably – up by 15% to more than 173,000 nights Overall international spend in Noosa increased 1.2% to a record $156 million in the year ending June 2015.

The UK was up 1.4% to $51.2 million and the USA reached a record $37 million.

Noosa accounts for over 80% of the annual spend by international visitors to the Sunshine Coast, and 3.4% of the international spend in Queensland. visitnoosa.com.au

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When prioritising our key visitor markets it is important to consider expenditure and overall yield potential, and balance this with visitor numbers, to ensure that the region’s economy benefits.

INBOUND NUMBERS V EXPENDITURE YE JUNE 14 TO YE JUNE 15

Source: Tourism Research Australia (IVS)

Airlines and access While Noosa maintained ground during the GFC, ongoing and future growth in attracting international visitors relies on regular and reliable access via key gateway airports and dispersal via regional airports.

Recent developments at both the state and local level will help support growth with expansion plans underway for both Brisbane and Sunshine Coast Airports, the former recognised as Australia’s fastest growing gateway airport with increased services from major source markets.

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Tourism Noosa Global Market Strategy 2015 - 2017

Fifty-two international passenger airlines operated scheduled services to/from Australia in the month of June 2015 (excludes airlines operating only via code share arrangements).

Total seating capacity on international scheduled operations to/from Australia in year ending June 2015 was 3.562 million – an increase of 1.6 per cent compared to June 2014.

International passenger numbers through Brisbane International Airport grew by nearly 260,000 to more than 5 million in the 2015 financial year, a 5.4% increase on the previous year.

The international terminal connects with 28 destinations serviced by 23 carriers and an average of 588 flights per week. Top inbound visitors are New Zealand, UK, USA and India.

Catering for over 22 million total passengers in 2014, Brisbane Airport is Australia’s 3rd largest airport and is the only one with no curfew and 24/7 operation. Key highlights and developments for Brisbane Airport are: • Every month saw an increase in international passenger numbers into Brisbane Airport in the 2015 financial year.

• 2015 has seen a 4.5% increase in overseas flights and an addition of more than 180,000 seats to and from Brisbane.

• Qantas’ direct daily flights from Brisbane to Tokyo commenced in August 2015.

• New direct services between Brisbane and Abu Dhabi commenced in June 2015, providing important connections with Europe and the UK. • Jetstar commenced a new non-stop service between Brisbane and Honolulu in late 2014, operating up to three times a week in peak season and two in off-peak.

• Air Canada will commence direct flights between Vancouver and Brisbane in June 2016.

SEATS OPERATED ON INTERNATIONAL SCHEDULED PASSENGER SERVICES MAIN AIRPORTS - YEARS ENDED DECEMBER

2010 2011 2012 2013 2014

Source: Bureau of Infrastructure, Transport and Regional Economics

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Noosa’s current brand profile Consumer interest and demand are largely driven by perception and, in the case of inbound tourism, is largely influenced by the perceptions and information presented by travel wholesalers and other trade partners.

Understanding how brand Noosa is perceived by trade and partners in-market is critical to ensuring the destination is being appropriately positioned to potential visitors.

The consultative process identified strong brand associations and attributes, along with areas where competitive strengths may not be resonating in-market.

BRAND NOOSA KEY ATTRIBUTES Weekend Getaway, not a long stay

Accessible Hinterland Adventurous/Active

Wellness and Spas

Backpacker Heaven

Warm Beach, Swimming and Snorkelling Surfing Couple Friendly

Sunny

Everglades

Small Community Rainforest

Expensive

Passive Food and Wine Outdoor Focused Great Waves for Surfing

Nice Hotels and Resorts Nature

Great for Walking National Parks

The features of brand Noosa that were identified as lead attributes were:

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Beach, swimming and snorkelling

Wellness and spas

Nice hotels and resorts

Accessible hinterland

Sunny and warm

Nature and National Parks

Tourism Noosa Global Market Strategy 2015 - 2017

Noosa’s brand essence While aligned to the destination experience and reflecting positive attributes likely to drive interest, these attributes do not clearly define a competitive position for Noosa that is sufficiently distinct from other destinations offering a beach experience.

Key competitive attributes that were not perceived as having an association with Noosa and where future efforts will be directed to enhance and differentiate Noosa’s positioning in key markets are: >

Great Waves for Surfing and Aquatic experiences. Surfing, Everglades and National Park experiences are justifiably distinctive and present a definite competitive offering for Noosa and need to be strongly positioned in all trade, media and consumer activity.

> Food and Wine. As one of Australia’s leading regional food destinations, in terms

of local farm and produce stories, nationally award-winning restaurants and events,

the low awareness here is an area of opportunity, particularly as a follow up to Tourism

Australia’s Restaurant Australia campaign. >

Great for Walking. A focus on the region’s wealth and range of walking trails is required, from accessible tracks in the Noosa National Park to the Noosa Trail Network and the more challenging Cooloola section walks of the Great Sandy National Park, all within easy reach and world class.

>

Adventurous/Active/Backpacker. With a targeted push to the youth traveller by Tourism Australia and Tourism and Events Queensland, largely in the UK and Europe markets, and Noosa’s growing profile in this sector, the opportunity to enhance this reputation as a destination for adventure and seasonal work also provides direction for future marketing and communications with trade and industry partners.

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Deeper investigation into Noosa’s brand essence revealed the core values that are resonating with our target markets: Centred 3%

Inspired 27%

Youthful 10%

Refreshed 52%

Recharged 27%

Escape 34%

Connected 10%

Vitalised 20%

Natural 66%

Spoilt 22%

Chilled 49% Secure 17%

Free Spirited 22%

Reenergised 13%

Natural

Escape

Refreshed

Recharged

Chilled

Inspired

The challenge now is to create a unique positioning for Noosa around these elements, enabling clear differentiation from other like destinations.

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Tourism Noosa Global Market Strategy 2015 - 2017

Strategic market and activity plan areas With clearly identified positioning by market and robust visitor data, Tourism Noosa will adopt a Global Market Strategy initially concentrating resources on those markets which are already delivering results for Noosa, while nurturing secondary markets and monitoring emerging markets for opportunistic growth.

PRIMARY Build

SECONDARY Nurture

EMERGING Leverage

• United Kingdom • Germany • North America including the USA and Canada • New Zealand

• Europe including Italy, France and Scandinavia • Singapore

• Japan • Middle East • India • China

Brand positioning Brand Noosa and its proposition from a trade perspective are now generally well understood across the key source markets. That said, it is clear that there is opportunity to refresh the current perceptions among international trade and wholesales to more closely align their knowledge with the lesser-known destination attributes, such as walking trails, surfing, food and wine and outdoor recreation activities.

The key Noosa brand benefit is about relaxing, unwinding and experiencing life in a small Australian beachside community. To enhance Noosa’s cut through and desirability in current and new markets, Tourism Noosa will align imagery and messaging to these brand elements and to the specific needs of each market.

Other brand benefits to be reinforced to the trade will include the accessible and compact nature of the destination, its iconic low level development and village ambience, access to nature and national parks, and the friendly Australian welcome. For those seeking a unique experience, Noosa is also positioned away from the well-worn tourist path.

Brand partnerships With greater clarity around the positioning of brand Noosa in specific international focus markets, Tourism Noosa through its members and other stakeholders will develop mutually beneficial and targeted brand partnerships to elevate the Noosa brand. Partnerships will range across lifestyle, sporting, retail, fashion, food and aviation.

Wholesale partnerships Noosa is currently being sold well by boutique wholesalers. Larger volume wholesalers tend to partner with Tourism Australia and Tourism and Events Queensland on large scale marketing campaigns.

A focus on building partnerships and marketing alliances with select niche operators will provide opportunity for Noosa in core markets, particularly the UK and US. New content conveying a compelling story for Noosa is an important priority in increasing trade awareness, understanding and retail sales. Developing and providing this content is critical and will be a key early priority for Tourism Noosa. Brochure inclusion with boutique wholesalers will be pursued for Noosa as a destination and for increased product sales. visitnoosa.com.au

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Product development with industry A critical factor in growing Noosa’s inbound performance will be the ability to deliver and promote more product to the international market. An industry led effort, supported by Tourism Noosa, will assist in building the trade’s ability to actively sell Noosa.

Greater focus on industry education, product development and enhanced pathways to the inbound market are critical and a key immediate focus.

Trade engagement To ensure the trade is kept well-informed of product developments and destination benefits, more active engagement with trade will be a priority, including participation in trade events, greater interaction with Tourism Australia and Tourism and Events Queensland, and a new focus on appealing online content via social media and newsletter communications.

Specific focus on in-region famils, for both frontline retail staff and product managers is also critical to drive first-hand knowledge, positive trade word-of-mouth and increased sales.

The role of the ITO (inbound tour operator) is a critical component of successful international distribution. An active program of regular and structured training, along with regional familiarisations, will be developed to ensure decision makers are well-informed and advocating Noosa as a destination.

An increasingly important player in the distribution network is the online travel agent (OTA) and Tourism Noosa will seek to develop beneficial partnerships with relevant OTAs and online travel wholesalers to further drive destination profile and business for Noosa product.

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Tourism Noosa Global Market Strategy 2015 - 2017

Strategy implementation Destination Noosa is poised to capture a greater share of the global market and strengthen the Noosa economy by staying focused on clear goals and guiding objectives, channelling efforts and additional resources into strategic priorities.

The guiding areas of focus for this Strategy are to: • • • • •

Broaden Noosa’s current brand position Identify and develop appropriate brand partnerships Develop trade partnerships and enhance destination knowledge Assist product development in the local industry Actively engage with key media and influencers

Working in partnership with local, state, national and global partners, Tourism Noosa will implement this Global Market Strategy with the aim of achieving the following key activity measures by 2017: •

• • • •

Increase international overnight visitor spend through a focus on the ‘value visitor’ from $156m to $167m (more than $185m by 2020) Grow market share of Queensland international tourism spend Boost trade support in selling Noosa as a desirable destination Increase industry knowledge and participation in inbound market activity Identify and develop appropriate brand partnerships to enhance awareness and profile

With significant growth from our major, high yielding markets in recent years, a key direction of this Strategy is to maintain this focus and increase investment to further capitalise on these revitalised markets.

At the same time, there is an imperative to explore new opportunities, increasing activity in emerging markets with growing economies, direct to consumer activity via digital avenues and in clearly defining and communicating the strength and benefits of brand Noosa.

To activate these guiding aims and priorities, Tourism Noosa will allocate resource and priority to global markets from 2015 to 2017 in line with a detailed activity plan. Within this plan, Tourism Noosa will work with all key partners and stakeholders to support activities of relevance and benefit, such as the national Coastal and Aquatic campaign and Queensland’s Australia’s Nature Coast and Great Beach Drive programs.

Regular review and reporting on this activity plan will ensure key measurements are met and that actions remain relevant and on-track with external shifts and new opportunities that may emerge during the period of implementation.

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T 07 5430 5000 F 07 5430 5011 PO Box 581 Noosa Heads, Queensland Australia 4567 visitnoosa.com.au

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