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Canberra Region Tourism Leaders Forum Wednesday 8 November 2023

We acknowledge Aboriginal and Torres Strait Islander peoples as the First Peoples and the Traditional Custodians of Ngunnawal Country, the land on which we meet today. We pay our respects to Elders past, present and emerging, and also recognise any other people or families with connection to the ACT and Region.

Hon Don Farrell MP Federal Minister for Trade and Tourism and Special Minister of State

  • Thank you David, I'm not sure if 'Godfather is an affectionate term' (the room laughs), thank you for inviting me here this morning to speak about tourism in ACT
  • I'd like to acknowledge the traditional custodians of the land we meet on today, and extend my respects to elders past, present and emerging. And to express my great disappointment for the referendum results.
  • My father used to run for Parliament all the time, but never won. Despite that, he was an accountant, and we used to drive up from Adelaide in the school holidays. We would always call past the (Old) Parliament house and my father would say, 'Next year I'll be there!" but of course he never did.
  • Canberra has many impressive sites, the War Memorial, National Library and Botanical gardens, and I'm proud the Albanese government is committed to the up keep of these important National Institutions.
  • My favourite gallery, is the Portrait Gallery, it's not just the portraits I love but the stories and explanations. You get such a rich history of Australia.
  • And also Questacon, a much loved family friendly place of activity, is also receiving funding under the government works.
  • There is also a selection of the regional businesses, such as cellar doors, artisans and producers.
  • I'm always blown away every time there is a new restaurant and bar. My favourite is OTIS, and they sell my wine there. A little plug for them.
  • National data from Tourism Australia the total spend was $159 million dollars, and 111 million domestic trips. Domestic trips to the ACT is up as well as the spend.
  • $2 million dollars will be provided to track tourism results.
  • 1/3 of ACT visitors come for heritage activities. So the ACT is performing very well. However, we want to not just beat Covid tourism levels but thrive into the future.
  • $166 billion tourism spending target by 2024 target has been met.
  • From the $48 billion package of government support, ACT is a direct beneficiary of the program to attract visitors to Canberra.
  • We are helping tourism visitors to get back into the international market.
  • Government employment white paper outlines what we will do to address the tourism workforce.
  • Fee free courses are available for tourism related studies.
  • Things are looking up on the international front, international visitors are going up, and more aviation services becoming available. It is expected to be up at 99% functioning (of pre Covid levels) by next March.
  • Fiji began running direct flights between Nandi and Canberra last July.
  • Like many politicians I've had many good experiences in the Canberra airport and its world class facilities, and I hope many people will enjoy travelling to Canberra.
  • As Minister for Tourism and Trade I will work with the industry to recover its growth. I look forward to working with you towards what I think is a very exciting future.

Question: What is the indication that the Chinese market is going to take off?

My view is we should be positive about the China market. Last year we had 1.2 million Chinese tourists coming to Australia which was $12 billion dollars worth of spending. China only recently opened its borders for international visitors. China are the 2nd most frequent travellers to Australia. After the recent stamp of approval from the Chinese government, we should see the visitation back to the normal pre-Covid numbers, and more. There is a lot of demand for our food and wine in China, and to travel in Australia. Every major Chinese airline is flying back into Australia, so long as they can access the airlines, it should go back to pre-Covid. The education too, we are now back to pre Covid levels of young students coming to Australia, and we know parents come to Australia to check up on their kids and travel. China approved Australia as a group travel vacinity, so everything is looking up. The Prime Minister and myself were mobbed at the trade fair! There is quite a lot of pent up demand. We need to ensure we have the capacity for the demand. We should be very very positive. And on top of what is happening with China we have the Indian travellers coming back.

Question: The issue with the Qatar, you mentioned some of the south east carrriers, is there any interest from them?

I'm certainly encouraging them to. You mention the elephant in the room Qatar, they could fly into Canberra any day. Last week we released our South East Asia Economic Strategy, which is all about diversifying away from China, not that we want to sell anything less to China. We want to encourage the purchase of our Australian lobster and beef. The opportunities to increase our Tourism offering is incredible in the Phillipines. The population of the Phillipines is over 113 million, they have more than doubled Australia's population in 40 years. This is a rising middle class we can attract as visitors to Australia. Same as Vietnam, who have a growing population and a goal to be a first class nation, many senior Vietnamese politicians studied in Australia and now, have children studying in Australia. And an untapped resource is Indonesia, it isn't far away, has a rising middle class, and they love Australia we just have to get more of them into the country.

Dean Long CEO Australian Travel Industry Association (ATIA)

  • Thanks for having me along today
  • I'm going to cover a few things, why are we the ATIA, then cover some of whats going on around the world.
  • What I will pick up though, from Don's comment about the importance of Vietnam, that city has more development than Sydney, they will be a really critical market. We can't underestimate decisions made 20 years ago - that being giving education opportunities to students of Vietnam, embedding workers in our public service etc.
  • After a number of discussions I've been having with both airlines, it is clear that Qatar are not returning to Canberra, nor Singapore Airlines, for a long time.
  • Where are we currently sitting in terms of travel - Europe is down 6% - Asia pacific is down 26.1% - The Middle East is down 26% down - and this indicates the areas with the most restrictive regulations (lock downs, restrictions etc) around Covid are the slowest to recover.
  • There is one market leading the way on domestic recovery - India is up 3% from pre covid levels!
  • USA up 3%
  • Here is a quiz for the room. Hands up in the air, leave your hand up if you think we have less that 80 air carriers selling into the market. Put your hands down if you think we have less than 50. We have 143 down from 151.
  • If you are looking at who you need to be partnering with, there is around 150 businesses operating on getting visitors in and out of this country.
  • For comparison, in Hong Kong there is 127 air carriers operating, so we have more carriers flying to Australia than what Hong Kong has.
  • One segment of our industry is in bad shape - there is $110 billion in debt on average per carrier.
  • There is a reckoning coming for Carnival Cruise (who holds $67 billion in debt). We are coming to a challenging point for consumers picking where they travel. It'll be a confidence bust if Carnival Cruise folds.
  • The yields out of Canberra are not competitive for some of these airlines.
  • Average ticket price is $891 dollars to get to Australia, it peaked at $1600. It is unlikely that prices will get below $900 again. Until we get more planes in the air, people are not coming to Canberra over Sydney etc
  • The other issue is that local travel distribution is dead, 70% travel out of Australia is booked by an agent or similar, inbound it is 60%, local is 2%.
  • Direct is one avenue and indirect is the other, both are important strategies.
  • 85% of corporate bookings in Australia are booked indirect. How are we working with distribution partners?
  • Interestingly New Zealand is tracking at pre-pandemic levels.
  • Discretional spend was 8% and we are currently sitting at 6%. We are not competing with QLD when it comes to our Australian travellers choosing, we are competing with Indo Pacific.
  • All those things are a little scary of what is going on, but the strategies this government has put into place are starting to pay dividends. Not all our money coming from China is a good thing.
  • Making sure you are being heard, making sure you are putting god infrastructre in place are all good things.
  • Coming together and working as one is crucial for an industry that has been fractured. The fact that the Minister was here listing the shopping list of things being ticked off is great - but we need to compete with bigger markets to make sure we're getting our fair share.

Question: Are you confident?

I'm confident it will be better than times in covid. Not that it will be as amazing as what we are told it will be. High-end are choosing Europe. However, the younger demographic are giving up on home ownership and looking to leave the country. It will be 1000x better than what we experienced during the pandemic.

Malcolm Snow CEO City Renewal Authority

  • It is great to be back addressing the forum.
  • The priorities are getting locals back into the city centre and bouncing back from the challenges of Covid.
  • It's hard to know what the future of city centres will look like, with more people working from home. We want to know who is it coming back into the city centre and what experiences should we be offering them.
  • Creating a really high quality public environment, investing in the urban quality we think is important.
  • Improving movement and accessibility - not just cars - but a city that is walkable
  • It's critical that we foster social. exchange, the cities need to be more sociable, how they connect with each other - tourism strategies and through events in Canberra itself.
  • A more equitable city is important as well, promote a broader range of housing opportunities.
  • Action Waterfront - a goal to bring the city centre to our best asset which is the water - I'm pleased to say we are close to gaining works approval for a 3 hectare park on the waterfront - consistent with the strategy from 2002 to take under utilised land and make it a new mixed use district.
  • Canberra Civic and Culture District - integrated public and private investment - boosting the primacy of the City Centre - it should be the place and how to make it special - new Canberra Theatre, new retail/beverage building.
  • UNSW Canberra CIty Campus - we already are a university city, this is about bringing additional teaching and research functions into the city centre where the CIT carparks are. CIT will move to Woden (artist impression of what the precinct will look like).
  • City Centre upgrades - Garema place, City Walk and Streetscape upgrades. We have a way to go, we have been successful getting some funding. Improving the linkages to Braddon and rolling program for Dickson.
  • Sydney and Melbourne buildings - significant heritage buildings. Next phase is facade repiars, repainting and maintanance. $4million contribution from ACT government for this work.
  • City South East - under active investigation. A new arena for Canberra, new opportunities for the City Pool site, prominent site close to other important functions.
  • CBD land releases - going well and recently sold block 40 section 19 to Canberra Airport Group.
  • Visition highlights - 340% increase in visitation, 380,000 visitors and $20million economic benefit.
Measuring Place Success stats
  • Civic and City Centre - Christmas in the City program is ambitious, boosting the Multicultural festival again, Placemaking grants pool is larger and is a great opportunity to new businesses
  • Braddon and Haig park needs attention
  • Dickson Centre as an eating precinct

Question: In 5 years time will be look back and see a lot of change in the city centre?

Yes, I think we have been attracting investors into Canberra. Fund managers and developers looking for a long term place to put money.

News

Congratulations to the Royal Autralian Mint, honey bee coin won Best Circulating Coin for the 2022 $2 Honey Bee and the Most Artistic Coin for the 2022

Gourmet Traveller Restaurant Awards names Pilot as Canberra's best restaurant, well done!

Congratulations to Dash Rumble, a Tourism Leaders Forum member and owner of Such and Such Restaurant. Such and Such was named New Restaurant of the Year at the 2023 Good Food Awards across NSW and the ACT. They also picked up a ‘hat’. Well done!

Congratulations Visit Canberra for an excellent presentation, more than 245 people attended VisitCanberra’s Tourism Industry Briefing at the at the National Film and Sound Archive.

Next forum is on Tuesday 5 December

Agenda

9:00am: Andrew Barr MLA ACT Chief Minister and Tourism Minister

9:20am: John Hart OAM Executive Chair Australian Chamber - Tourism

9:40am: Matt Anderson PSM Director Australian War Memorial

10:00am: Close

Note: This is a brief summary of the Tourism Advisory Forum and is not a verbatim record of the event.