Tourism investment opportunities

1.Investor proposition

Investmentopportunitiesareunderpinnedby:

•Astrong,highyieldingbusinesstravelmarketasaproportionoftotaldomestictravel(29%)(seeFigure1).

•Roomoccupancyrates(69%)thatarehigherthanthenationalaverage(seeFigure2).

•Highaverageroomtakingspernight($180).

•Aclear,partneredapproachtocontinuedtourismgrowthintheCanberraregionthroughtheACT’sTourism2020strategicframework.

•ImpendingcapacityforhandlingdirectinternationalflightsatCanberraAirport,whichhasrecentlyundergonea $480 millionupgrade.

Accordingtothemost recentTouristSatelliteAccountpublication(basedon2011–12data),thetourismindustrycontributesaround$1.65billiontothe

ACTeconomyandisoneoftheterritory’slargestprivatesectoremployers–supportinganestimated16,000 jobs.

Whileover90%oftheACT’sdomesticovernightvisitationiscurrentlysourceddomestically,theinternationalmarketoffersstronggrowthpotentialwithCanberraAirport’simpendingcapacityforhostingdirectinternationalflightservices.

China,akeygrowthmarketforAustraliantourism,iscurrentlytheACT’slargestinternationalsourcemarketwitha12%visitorshare.

FIGURE1:Touristreasonforvisiting

Canberraremainsanattractivedestinationfortourism investment:

•Itenjoysregularbusinesstravelasthenationalcapital,theseatofFederalGovernmentandasthehomeofheadofficesformanykeyGovernmentagencies.

•ItisideallylocatedbetweenAustralia’stwolargestpopulationcentresinSydneyandMelbourne–keymarketsforshortbreaktravel.

•Itishometoastunningarrayofworld-classnationalattractionsthatunlocktheessenceofAustralia.

71%

29%

ACTAustralia

81%

19%

•Itplayshosttoadiverserangeofmajoreventsthroughouttheyear.

Business

Leisureandother

•Itisrecognisedasakeyacademiccentre,withmajoruniversitiesandinternationallyrenownedscientificresearchorganisationsincludingtheCSIRO.

TheCanberraregiontourismsectorcontinuestoperformstrongly.

ThisisreflectedinthedomesticandinternationalvisitationresultsoutlinedunderFigure3andFigure4respectively.

Source:TourismResearchAustralia,NationalVisitorSurvey,

June2013

FIGURE2:Touristaccommodationdata

Sources:ABS8635.0,TouristAccommodation,June2013

FIGURE3:ACTdomestictourismdata2012–13

Visitors / 2,049,000
Visitorgrowth(2011–12) / 9.0%
Visitorexpenditure* / $1.49billion
Spendingpernight** / $194
Averagelengthofstay / 3nights

*includesexpenditurebydayvisitors

**includesairfaresandlongdistancetransportcostsSource:TourismResearchAustralia,InternationalVisitorSurvey,

June2013

FIGURE4:ACTinternationaltourismdata

2012–13

Visitors180,380

Visitorgrowth(on2011–12)10.4%

Visitorexpenditure*$376million

Visitorspendpernight*$79

Averagelengthofstay26nights

*includespackageexpenditureSource:TourismResearchAustralia,InternationalVisitorSurvey,

June2013

2.Investment opportunities

•Accommodationforleisure/business/educationtravel:

  • Hotelsandservicedapartments(inparticulartomeetdemandcreatedbynewinternationalmarkets/directinternationalflights)
  • Lowcost/groupaccommodation(e.g.toaddressexistingsupplyconstraintsforvisitingschools)

•Conventionfacilities

  • includesasignificantredevelopment/replacementopportunityfortheNationalConventionCentre(withabroaderrangeofdining,breakoutandotherancillaryfacilities)Redevelopmentorreplacementopportunity

•Sporting/eventfacilitiesandmajorsporting/stadiuminfrastructure

•DevelopmentsassociatedwithmajorgovernmentinitiativesincludingtheCitytotheLakeproject

•ThereisalsoscopeforfurtherinvestmentintheCanberraregion’seco-tourismsector,wineriesandotherexperience-basedactivities

3.Recent tourismsectorinvestment

SuccessfulprivateinvestmentsintheACTtourismsector:

•Newtouristaccommodation:

  • HotelRealmprecinctinBarton
  • ‘HotelHotel’,establishedaspartoftheNewActonprecinct
  • TheEastHotelinKingston

•Airandlandtransportservices

  • Withinvestmentinexcessof $480 million,CanberraAirport’snewterminalandsupportinginfrastructurehasdeliveredastunninggatewayforthenationalcapital
  • CanberraAirportwasrecentlyawardedthetitleofAustralianAirportoftheYear

•Tourismattractions

  • TheNationalZooAquarium(includingtheintroductionofon-siteaccommodation)
  • TheNationalArboretumCanberra

4.Majortourismassets

•Australia’siconicnationalattractions,including:

  • ParliamentHouse
  • AustralianWarMemorial
  • NationalGalleryofAustralia
  • NationalMuseumofAustralia
  • NationalLibraryofAustralia
  • NationalPortraitGallery
  • Questacon–TheNationalScienceTechnologyCentre

•Touristaccommodation:

  • 50establishmentswith15+rooms(29x4-star,3x5-star)
  • 5,000 rooms

•Asuiteof33winerieswithina30minutedriveofCanberra’scitycentre.TheCanberraWineDistrictisrenownedforproducingdistinctivecoolclimatewinesthatarereceivingnationalandinternationalacclaim.

•Eventinfrastructure:

  • CanberraStadium
  • ManukaOval
  • StromloForestPark
  • AustralianInstituteofSport(AIS)
  • TheNationalConventionCentre(businessevents/meetings)

5.Aneventful capital

Canberraishometoalargerangeofnationalcelebrations,festivalsandsportingevents.

Floriadeisthecity’sflagshiptourismeventandisregardedinternationallyasAustralia’scelebrationofspring.

Featuringafloraldisplayofmorethanamillionbloomsandamonth-longprogramofentertainment,Floriadegeneratesanattendanceinexcessof400,000eachyear.

CoincidingwithCanberra’sbirthdaycelebrationsinMarcheachyearistheCanberraFestival,featuringeventssuchasENLIGHTENandtheCanberraBalloonSpectacular.

ENLIGHTENoffersbreathtakingarchitecturalprojectionsandtheopportunitytoseeCanberra’s

6.Tourismemployment/labour

Figure5showsthecompositionoftheprivatesector’stourismemployment.

Withover 16,000 peopleemployedandconsistentemploymentgrowth,themarketsegmentrepresentsagreatinvestmentopportunity.

EmploymentintourismsubsectorsiscomparativelyconcentratedintheACTwhencomparedtothenationalaverage(referlocationquotientinFigure6).

ThishighlightsthatCanberraisanattractiveplacefortourismsectoroperators.

EmploymentintheprivatetourismsectorintheACTgrewatanaverageannualrateof1.5%*between2006and2011.

FIGURE5:Privatesectortourismemployment

7%

10%

14%

nationalattractionsafter-hours.

Canberraisalsorenownedforitsrecurringprogramofexclusiveblockbusterartexhibitions,whichattractastrongnationalandinternationalaudience.

Bywayofexample,theMasterpiecesfromParis

FoodandbeverageservicesAccommodationservices

Tourismattractions,eventsactivitesTransportServices

69%

exhibitionin2010attracted470,000attendeesandgenerated$94millionineconomicimpact–with80%ofvisitorscomingfrominterstate.

TheACTGovernmentcontinuestosupporttheacquisitionofmajortourismeventsthroughitsSpecialEventFund(SEF).

Lookingahead,thereareanumberofmajoreventsonthehorizon.Theseincludethe2015AFCAsianCupfootballtournament–withCanberraStadiumtoplayhosttosevenmatches,includingaquarter-final.

ManukaOvalwillalsohostthreematchesinthe2015ICCCricketWorldCup.

Awayfromthesportingarena,theAnzacCentenary(includingthe100thanniversaryoftheGallipolilandingsin2015)loomsasoneofthemostsignificantcommemorationstotakeplaceinthelivesofcurrentgenerations.

FIGURE6:Tourismemploymentdata

Location
Accommodationservices / 1.13
Foodbeverageservices / 1.31
Attractions,eventsactivities / 1.09

*AverageAnnualGrowthRate

**ALQ1reflectsstrengthastheindustryisover-representedPart1source:AustralianBureauofStatistics(2013)CensusofHousingandPopulation,TableBuilder;andSGSEconomicsand

PlanningcalculationsPart2source: ABS, Census(PlaceofWork),2011

7.Governmentsupportfortourism

TheACTGovernment,throughVisitCanberra,hasdevelopeda2020TourismStrategytoprovideaframeworkforrealisingthetourismpotentialoftheCanberraregion.

ThegoalistogrowthevalueofovernightvisitorexpenditureintheACTfromacurrentbase

of$1.58billionto$2.5billionby2020.

ThestrategyalignswiththeintentofthenationalTourism2020frameworkwhichaimstodoubleovernightvisitorexpenditureinAustraliafrom

$70billionto$140billionby2020.

SomeoftheareasoffocusthatwillassistinrealisingtheACT’s2020tourismpotentialinclude:

•Investmentindestinationmarketingactivitiesthatdrivevisitationfromdomesticandinternationaltargetmarkets.

•Accessinitiativesincludingsecuringdirectinternationalflightservicesandgrowingdomesticaviation capacity.

•Growingthedigitalcapabilityoftheindustry.

•Supportingthekeydriversofthevisitoreconomyincludingbusinessevents,educationtourismandmajortourismevents.

•Creatingtherightbusinessenvironmentbyencouraginginvestmentandreducingregulatoryburdens.

•Experienceandindustrydevelopmentinitiatives

tocomplementinvestmentinnewproduct.

8.AccessingCanberra

Canberra,Australia’scapital,isavibrantandmodern

cityof367,000people.

Itislocated280kilometresfromSydneyand

150kilometresinlandfromtheeastcoastofAustralia.

Canberraiseasilyaccessedbyplane,car,busortrain.

DirectflightsareavailablefrommostAustraliancapitalcities(Sydney,Melbourne,Brisbane,AdelaideandPerth)andthecitycentreisjusta10minutedrivefromtheairport.

FlighttimesfromCanberra:

•Sydney50minutes

•Melbourne70minutes

•Brisbane100minutes

•Adelaide75minutes

InvestCanberrais the AustralianCapitalTerritoryGovernment’sofficial investment promotion agency.InvestCanberracoordinatesinvestorfacilitationacrossGovernmenttoprovidea case-managedservice formajor investors.