Annual Report

2004/2005

26 September 2005 The Hon Fran Bailey MP Minister for Small Business and Tourism Parliament House CANBERRA ACT 2600 Dear Minister, I have pleasure in presenting the rst annual report of Tourism Australia for the reporting period of 1 July 2004 to 30 June 2005 in accordance with clause 39 of the Tourism Australia Act 1994 and section 9 of the Commonwealth Authorities and Companies Act 1997. Yours sincerely,

The Hon Tim Fischer AC Chairman Tourism Australia

ear for Tourism n a dynamic rst y P.S. It has bee wards further solid foundation to Australia, laying a eights are on ad and spend. The w re boosting tourism sp happens. to ensure this now

Contents
Chairmans report Managing Directors report Highlights 2004 2005 Tourism Australia the story so far Principles Objectives and outcomes 2004 2005 Corporate governance Organisational structure Directors of Tourism Australia Ecologically sustainable development and environmental performance 5 6 8 11 13 14 17 18 22 23

REPORT OF OPERATIONS
Corporate Services Strategy and Research Corporate Affairs Marketing Australasia International 26 30 34 36 42 48

INTERNATIONAL MARKETS
The Americas Canada United States
Contact ofcer For more information about this annual report, please contact: General Manager, Corporate Affairs Tourism Australia GPO Box 2721 Sydney NSW 1006 Internet You can access this report online at www.tourism.australia.com Additional information sources 2004-2005 Portfolio Budget Statements 2004-2005 Portfolio Additional Estimates Statements Tourism Australia Annual Operating Plan 2004/05 Tourism Australian Corporate Plan 2005/06 2007/08 Freedom of Information Tourism Australia is a prescribed authority under the Freedom of Information Act 1982. No FOI requests were received by Tourism Australia during the review period. The contact ofcer for FOI requests from Tourism Australia is: John Hopwood Director, Corporate Services Tourism Australia Commonwealth of Australia 2005 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney Generals Department, Robert Garran Ofces, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca

54 55 56 58 59 60 61 62 63 63 64 66 67 68 69 70 71 72

Asia China Hong Kong India Korea Malaysia Singapore Taiwan Thailand Japan Gulf Countries New Zealand UK & Europe France Germany/Switzerland Italy Nordic & Netherlands UK & Ireland

Chairmans report
FINANCIAL REPORT
Independent Audit Report Statement by Directors Statement of Financial Performance Statement of Financial Position Statement of Cash Flows Schedule of Commitments Schedule of Contingencies Notes to and forming part of the nancial statements Glossary Tourism Australia Overseas Ofces Index 76 78 79 80 81 82 83 84 113 114 115 Tourism Australia (TA) is now one year old, successfully blending all of the cultures and activities that now form our new organisation. I congratulate the people of TA for maintaining momentum during these changes and for successfully managing the transition to the new organisation, and the physical movement of the HQ from William Street to Sussex Street in Sydneys CBD. The passion and dedication displayed by TA staff in Sydney, Canberra and around the world is a credit to the country they represent. The new combined capability of TA, coupled with initiatives and increased funding resulting from the Tourism White Paper, sets a solid foundation for tourism growth. The Australian Government has made an unprecedented level of investment in the Australian tourism industry and TA is leveraging that support to maximise the impact of the many international and domestic marketing activities. By harnessing all of these new capabilities, TA is developing a more sustainable tourism industry. A more protable industry is the key to a more sustainable industry and the insights and assistance provided by TA to the tourism industry will help increase the international and domestic demand for Australian tourism experiences. Tourism currently employs more than 500,000 Australians and TA is working hard to ensure that those jobs are secured for today and continue to grow in the future. Tourism Australias clear purpose is to increase the economic benets to Australia from tourism by increasing total visitor spend and dispersal of that spend across Australia, thereby creating more jobs for Australians. Id like to thank my fellow Directors for their support throughout the year, including outgoing Director Gerry Harvey and also welcome Peter Burnett as our newest member. The Board has made a conscious effort to disperse more and gain a greater understanding of Australian tourism to deliver an enhanced representation to the tourism industry. The Board has met in a variety of locations around Australia during the year, visiting Hobart, Alice Springs, Sydney and more recently held a meeting while travelling across the Nullabor.

Tim Fischer Chairman

Managing Directors report

Tourism Australia (TA) is a leverage marketing organisation that has adopted the vision to become and remain the best National Tourism Organisation (NTO) on the planet. To be the best NTO, we must become the world leader in stimulating sustainable demand for Australian tourism experiences. By performing this role, we must be valued as an organisation that delivers economic benets for Australia, in particular regional areas, by increasing the total spend of our international and domestic visitors and ensuring the dispersal of that spend across Australia. Our rst year of operations has been all about getting our strategy right and putting in place the key building blocks for successful operations in the years ahead. To this end, TAs Corporate Plan for 2005/06 to 2007/08 was released at ATE2005 in Perth in June. The plan, referred to by industry as TAs experience strategy, sets out a clear role, goal, set of challenges and strategy for the next three years. The plan is focused on maximising our competitiveness, identifying clear targets, leveraging our great strengths as a destination and driving consumers to a deeper appreciation of the experiences Australia has to offer and how these experiences deliver on their needs. The plan also sets ambitious new growth targets for the tourism industry to help Tourism Australia and the industry align and focus our efforts. Overall, our marketing challenge is to shift international consumers from a passive preference to visit Australia to an active intention to visit Australia within the next 12 months, that can then be converted by the industry into actual bookings. We often say that while it is great for Australia to be loved by the world (as survey after survey conrms), it is much better to be visited by those who love you. We will achieve this objective through leverage partnerships, compelling communications, strong research and insights as well as the focused application of our resources to where we can derive the greatest benets from our marketing. TA is already championing a clear destination marketing strategy and articulating and promoting a compelling tourism destination brand. However, recognising the need to go further, we have recently appointed M&C Saatchi and Carat as our global agency partners to take our campaigns forward. We are applying ourselves in our key markets around the world, from the fast-growing China market, which will account for one third of our forecast growth to reach our targets, to our traditional Western markets of the US, UK, New Zealand and Germany. We are dealing with the opportunities of rapid new growth in South Korea and working closely with our industry partners to address the very signicant challenges we face in Japan. Together our top seven markets deliver approximately two thirds of total international visitor spend for Australia, and will account for 75 per cent of the growth in spend in our targets. Accordingly they receive the lions share of our resource attention. Further aeld, we are continuing our commitment to the strong dispersal markets of continental Europe, which has been assisted by our new Destination Australia Partnership arrangements with State and Territory tourism ofces, based in London. We are consolidating past growth in markets such as Singapore and Hong Kong, and taking new opportunities in markets such as India and the Gulf Countries. TA began to tackle the challenge of a at domestic market with the All The Space You Need campaign, demonstrating to Australians that Australia could meet their holiday needs more than they realised. More recently TA has been exploring ways to unlock the size of the overall domestic market and increase the amount of leave taken by Australians. With a new mandate to address supply side issues, TA has been supporting the development of unique Australian tourism experiences through the work of the Australian Experiences Team (formerly niche marketing) and in particular through the establishment of Indigenous Tourism Australia to promote the development of key tourism segments. Ecotourism and Food and Wine have also been singled out for attention, while continuing to drive our backpacker and business tourism markets remain a priority. A great opportunity to highlight new experiences and promote dispersal was holding ATE in Perth for the rst time. ATE2005 was a resounding success with around 2,000 Australian delegates from 900 companies meeting with up to 700 key overseas buyers from 50 countries. Delegate satisfaction with the event returned to record levels as measured in our post-ATE delegate surveys. TA is also helping the industry by gathering and communicating reliable market intelligence and insights for improved decision-making not only through the work of Tourism Research Australia but in our consumer research through segmentation studies and work on targeting our global ideal visitor. Finally, TA has embarked on an ambitious partnerships program to extend our inuence, most signicantly demonstrated by the announcement of our new three year $60 million partnership with Qantas. The ambitious goals and strategies of the Corporate Plan, and our activities of the past year reect the enhanced capabilities made possible by the strong commitment of the Australian Government through the Tourism White Paper, released in November 2003. The White Paper led to the establishment of Tourism Australia, and it guides our resources and our strategies going forward. TA is staffed by great and talented people who are passionate about promoting Australia as a tourism destination. In the past year they have dealt with signicant structural change. The success of the organisation in getting established is a tribute to their professionalism. Our thanks also to the new Tourism Australia Board, especially our dynamic and highly committed Chairman, Hon Tim Fischer, as they work closely with management to ensure the organisation delivers on the key requirements set by our principal stakeholder, the Australian Government, and the expectations of the tourism sector. Finally, TA is grateful for the generous support of the Australian Government, in particular through the combined efforts of the Hon Ian Macfarlane MP, Minister for Industry, Tourism and Resources; the Hon Fran Bailey MP, Minister for Small Business and Tourism; and the Hon Warren Entsch MP, Parliamentary Secretary to the Minister for Industry, Tourism, and Resources. We also appreciate the Governments broader support through the Friends of Tourism group, led by the Hon Bruce Baird MP. There is no doubt that the next three years will be challenging, however the opportunities to create jobs for Australians though tourism and the activities of TA are signicant. TA looks forward to working with all our partners and stakeholders to make this happen.

Scott Morrison Managing Director

Highlights 2004 2005

AWARDS AND SUPPORT
Tourism Australias Brand campaign picked up two Gold Awards from Pacic Asia Travel Association (PATA) and won the Best NTO in the Korean tourism industry award. Australia was voted dream destination in an American Express survey in London. Australia was voted favourite country in a survey of over 15,000 holidaymakers from the UK and was named the worlds number one tourism brand by the Anholt-GMI Nation Brands Index (NBI).

TRADE EVENTS
Tourism Australia recently held the highly successful Australian Tourism Exchange (ATE) in June, where more than 2,000 buyers and sellers of Australian tourism product from over 50 countries met in Perth.

INTERNATIONAL ACTIVITY
The new Brand Australia campaign, Australia. A Different Light, has now been launched in New Zealand, the United States, Canada, Malaysia, France, Germany, Hong Kong and China, Japan and Korea. The Destination Australia Partnership (DAP) in UK/Europe is now fully established and has exceeded targets for year one. TAs Youth Campaign has been nalised for the UK, with an incredible 122,467 responses. TA has promoted the new benets of the Working Holiday Maker scheme and been supportive of M2006 with major promotions in London and promoted the Queens Baton Relay. Under the new administrative arrangements for Chinas Approved Destination Status (ADS) scheme, all current ADS agents will be required to re-apply for approval along with new applicants. These applications will be rigorously screened and approved operators will need to comply with a new ADS Code of Business Standards and Ethics, which carries penalties including suspension and expulsion from the scheme. The $US6.1 million American campaign, which has eclipsed the Paul Hogan campaign, was timed to coincide with the PR-rich GDay LA: Australia Week with a co-operative campaign with Qantas promoting the Aussie Airpass as the ideal vehicle to explore Australia. The new $AUD8 million campaign in Japan put Australia back on TV screens for the rst time in seven years and featured the Delta Goodrem television commercial (TVC), strong co-operative campaigns with Japan Airlines and Qantas, online, wireless (mobile phones), print and outdoor executions, including prominent subway advertising. TAs new $AUD2 million campaign in Korea, the Best of Australia, is a tactical campaign with Cathay Pacic that focuses sharply on destination experiences and brings together print, TVC, magazine and online. Tourism Australia plans to expand operations in Canada by opening an ofce in Toronto and TA will re-launch its highly successful Aussie Specialist Program in New Zealand in September 2005. Key achievements under the Tourism Australia/Austrade Memorandum of Understanding (MOU) in 2004/05 include: an Australian tourism toolkit for 123 Austrade ofces; a consumer brochure in Spanish, Portuguese and Russian; 47 new agencies in non-priority markets were identied and attended ATE; joint promotions were held in Moscow, Malta, Vietnam, and Mexico; and an australia.com Spanish version was launched for the Latin American markets.

GLOBAL AGENCY
Tourism Australia (TA) is looking forward to working with our global partners M&C Saatchi and Carat over the next three years to evolve and deliver the tourism campaign that Australia as a destination deserves, that our stakeholders from the Australian Government have invested in and that the tourism industry can get behind and make a great success.

LEVERAGE PARTNERSHIPS
Tourism Australia and Qantas will embark on a new three-year global destination marketing partnership for Australia from 1 July worth more than $60 million. TAs $US20 million partnership with American Express has contributed to a 200 per cent increase in Amex card usage in Australia and the number of American Express cardholders visiting Australia has increased by 13 per cent. An exciting new partnership campaign between TA and Visa International, launched in China, is targeting higher yield tourists from Australias fastest growing market, including 550,000 Visa Gold Card and Platinum Card holders in Beijing, Shanghai, Guangzhou and Shenzhen.

AUSTRALIAN EXPERIENCES
TA announced the formation of Indigenous Tourism Australia (ITA) with Aden Ridgeway as the inaugural Executive Chairman. TA is required by the Tourism Australia Act 2004 to help market and develop niche segments in the Australian tourism industry. TA now has a dedicated team, the Australian Experiences Market Development unit, in place to implement the Australian Experiences strategy.

TOURISM EVENTS AUSTRALIA

In recognition of the value and importance of the business and major event industries, TAs new Tourism Events Australia (TEA) division focuses on marketing Australia as a business and major events destination. TA also runs a number of world-class events, such as Dreamtime and partners with the industry (TEAM Australia the Convention Bureaux) to run in market events such as TABEE, which held its rst event in the US in January. To help attract Amway Korea to Australia in 2006, TA involved key tourism representatives, including the convention bureaux and decision-makers in activities through Team Australia Business Events.

Tourism Australia the story so far

VISITING JOURNALISTS PROGRAM
The Visiting Journalists Program (VJP) continued to deliver measurable results for international promotional activity. TA hosted some 802 international print and broadcast journalists in Australia during the year, generating editorial coverage with a value in excess of $AUD483 million. Print and broadcast coverage reached over four billion people worldwide. The establishment of Tourism Australia (TA) was a key recommendation of the Australian Governments Tourism White Paper. This is the rst Annual Report for the new organisation. TA was established on July 1 2004 and brings together the functions of international tourism marketing (formerly the Australian Tourist Commission), domestic tourism marketing (formerly See Australia) and tourism research (formerly the Bureau of Tourism Research and Tourism Forecasting Council) under one body. The Tourism White Paper was an Australian Government tourism initiative, designed to achieve industry growth and provide greater synergy across all areas. It provided the framework for structural change to more effectively support Australias tourism industry. TA is fostering the development of a more sustainable industry that will deliver greater economic benet to the Australian community by tackling the structural challenges facing the industry and helping the industry become more resilient and less susceptible to external shocks. Tourism Australias clear purpose is to increase the economic benets to Australia from tourism and generate more jobs for Australians. Increasing the total spend of our visitors and the dispersal of the spend across Australia will help develop a more sustainable industry. Tourism currently employs more than 500,000 Australians and TA is working with the industry to ensure that those jobs are secured for today and grow in the future. To grow the amount of spend generated from our tourism markets, Australia needs to target the ideal visitor wherever they are in the world and to focus on delivering high quality and unique Australian experiences. We need to ensure we preserve the value of these experiences in the market place and compete on our strengths as a quality and valued, high experience destination. Our new Corporate Plan clearly sets out how TA aims to encourage growth and dispersal in total visitor spend with a comprehensive game plan that: > targets a global ideal visitor those who spend more and are more highly predisposed to what Australia has to offer; > requires us to stand out from the crowd with compelling global marketing communications that sets a new standard in destination promotion; > focuses on shifting our consumer from not just loving Australia but to actually intending to visit; > leverages our competitive advantages as a destination in an increasingly competitive destination market place; > employs cutting edge insights into the market to enable us to nd and communicate more effectively with our target ideal visitor; > demands strong partnerships with media, trade and industry that can amplify our marketing efforts and give Australia a much greater share of voice; and > applies strong disciplines to applying our resources across our international markets to ensure we get the greatest economic return for Australia.

FINANCIAL SUMMARY
Tourism Australias total revenue for the 2004/05 year was $AUD169.8 million. Revenue from the Australian Government totalled $AUD138.4 million and revenue from co-operative industry activities and other sources totalled $AUD31.4 million.

CORPORATE SERVICES
TA has developed and implemented a new procurement manual and developed a new HR strategy.

DOMESTIC CAMPAIGN
TA began to tackle the challenge of a at domestic market with the more rational All The Space You Need campaign to ensure that Australia is more in the consideration set of preferred holiday destinations. More recently TA has been exploring ways to unlock the size of the overall domestic market and increase the amount of holiday leave taken by Australians through a more causal campaign.

RESEARCH
The White Paper provided $AUD21.5 million over four years for expansion of tourism research and statistics. The Australian Bureau of Statistics (ABS) was funded to produce the Australian Tourism Satellite Account for 2003-04 and expanded the Survey of Tourist Accommodation. Destination Surveys are underway and Decipher was successfully launched with the website commencing operation in February, fully supported by Tourism Research Australia (TRA) data sources. TRA expanded the sample size of both the NVS and IVS to provide more meaningful regional and small area tourism information and introduced an enhanced forecasting methodology to provide improved expenditure based forecasts. The Tourism Forecasting Council (TFC) has developed forecasts for inbound tourisms contribution to the economy. TA is undertaking major segmentation studies in all key markets and TRA is implementing an improved dissemination strategy through the deployment of web-based technology.

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Principles
Through the implementation of these strategies, Tourism Australia is increasing the international and domestic demand for Australian tourism experiences. The continued development and promotion of Australian Experiences previously known as niche tourism products will help present a more compelling Australia to the global visitor. TA now has a dedicated team, the Australian Experiences Market Development unit, in place to implement the Australian Experiences strategy. Consumers are becoming more demanding. They have a voracious appetite for whats new, so Australia has to maintain a freshness of what we offer to remain competitive and appealing as a destination. Tourism Australia has prioritised its effort around consumer desires and each segments ability to deliver on expenditure and dispersal goals. TA will focus on the priority experience segments of: 1. Indigenous, ecotourism and nature; 2. Caravan and camping, food and wine, backpacking, study tourism; and 3. Other niches serviced through the Niche Tourism Toolkit e.g. cruise, rail, accessibility, cycling etc. These unique Australian experiences present to our ideal visitors from around the world tourism opportunities that they will nd compelling enough to inspire them to book a trip to Australia. Reecting new possibilities and the industrys enhanced capability, Tourism Australia has set ambitious new yield targets for the tourism industry. The targets are contained in TAs Corporate Plan 2005/06-2007/08 and establish the goal of reaching $22.1 billion in international visitor spend by 2007/2008 an increase of more than 25 per cent on the gures achieved in 2003/2004. The new targets are over and above the forecasts made by the Tourism Forecasting Committee of $21.2 billion and are designed to provide a focus for TAs engagement with the tourism industry to increase the economic dividend from tourism as their primary objective. To achieve these new targets and to achieve the vision of becoming and remaining the best National Tourism Organisation on the planet, TA is developing a more sustainable Australian tourism industry. The new TA provides greater operating scope and opportunities, including an increased international marketing effort, increased development of and focus on regional tourism, increased research capability, development of niche markets and unique Australian experiences and a greater focus on business tourism and major events.

OUR ROLE
TAs role is to stimulate sustainable international and domestic demand for Australian tourism experiences, by: > inuencing the actions of others through our interaction in the tourism and travel marketing matrix, by: championing a clear destination marketing strategy; articulating and promoting a compelling tourism destination brand; facilitating sales by engaging and supporting the distribution network; identifying and supporting the development of unique Australian tourism experiences; gathering and communicating reliable market intelligence and insights for improved decisionmaking; and working with partners who can extend TAs inuence.
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Jobs growth

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Growth in total visitor spend (total and average per stay)

Growth in dispersal regional visitor spend (outside the major gateways)

Increase international and domestic visitation (number of visitors, length of stay, spend per person, spend per day)

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Sustainable

OUR GOAL
TAs goal is to become and remain the best National Tourism Organisation on the planet by maximising tourism visitor spend within Australia and ensuring that spend is dispersed far and wide, delivering real economic benets for regional Australia and our major cities. To focus industry marketing activity, TA has established the following industry targets to be achieved by 2007/08: ACTUAL 2003/04 $16.0 bn $17.6bn $33.7 bn TFC FORECAST 2007/08 $16.4 bn $21.2 bn $37.6 bn FORECAST GROWTH $0.4 bn $3.6 bn $4.0 bn GROWTH TARGET 2007/08 $16.8 bn $22.1 bn $38.9 bn TARGET GROWTH $0.8 bn $4.5 bn $5.3 bn

MARKETS Domestic* International TOTAL

The Tourism Forecasting Committee (TFC) forecasts included consideration of marketing effectiveness and imply growth of $4.0 billion in tourist spending after ination across these four years. Beyond this forecast TA has a target goal for the industry of an additional $1.3 billion in combined real domestic interstate leisure and international visitor spend. Domestic and international visitor spend targets are measured by the Real Inbound and Domestic Economic Value derived from the International and National Visitor Surveys.
* The objective of TA in domestic tourism is to increase interstate holiday + visiting friends and relative (or leisure) spend. Forecasts for domestic interstate leisure spending used TFC forecast growth rates for domestic leisure visitor nights.

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Objectives and outcomes 2004 2005

OBJECTIVES PERFORMANCE INDICATORS OUTCOMES > Australia continues to rate highly in terms of brand health and is a highly desirable destination in all key tourism markets. > Australia received a number of international awards recognising the strength of its tourism brand. > There were 5.4 million visitor arrivals for the nancial year 2004-05, an increase of seven per cent relative to the previous nancial year. > Australia remains a preferred destination for key markets. > Visitors from Korea for the six months to June 2005 increased 24 per cent relative to the same period of the previous year. > Visitors from the United States for the six months to June 2005 increased six per cent relative to the same period of the previous year. > Improve the tourism industrys ability to act on market/consumer opportunities. > Provided research and tools for monitoring and analysing key areas including aviation and customer segmentation. > The 2005 North American Conversion Study provided valuable insight into consumer behaviour resulting from Tourism Australias co-operative marketing in North America. Foster a more sustainable tourism industry in Australia > Enhance adoption of ecotourism and sustainability agendas in overall tourism promotion > Maximise the competitiveness of Australia as a destination OBJECTIVES Convince distributors of the prot potential of Australia as a destination PERFORMANCE INDICATORS > Sales performance of key distributors (Aussie Specialist Agents) OUTCOMES > Aussie Specialist Program was relaunched in January 2005, featuring a more interactive website with new tools for agents. > Across Asia there are in excess of 2,000 Aussie Specialists in our key markets. > In May 2005, there were 3,455 agents qualied as Aussie Specialists in the UK and Europe. > In May 2005, there were 4,602 Aussie Specialist trading partners and 130 Premier Agents in North America. > Tourism Australias Visiting Journalists Program brought close to 1,000 print and broadcast journalists to Australia. > For example, journalists from a range of publications across Asia visited Australia in May 2005 to experience some of Australias best fashion, food and lm. > Around 2,000 delegates to ATE 2005 were provided with the opportunity to meet approximately 700 key overseas buyers from 50 countries. > Worked co-operatively with the Department of Industry, Tourism and Resources to implement White Paper initiatives including the Tourism and Conservation Partnerships initiative. > The trade oriented, Japanese language website featuring Australian eco products was updated in June 2005. > Information on ecotourism and sustainable tourism initiatives has been made available on both australia.com and tourism.australia.com

Increase international visitors > Consumer brand tracking. from key markets and target segments travelling to and within Australia.

> Increase desire of the international consumer to visit Australia by converting the desire to visit Australia into reality.

Inuence a larger percentage of the Australian population to travel within Australia.

> Increasing domestic visitor > Domestic travellers accounted for over four expenditure in Australia. fths of the total expenditure in Australia, spending $51.1 billion. > Between 1999 and 2004, domestic overnight visitor expenditure increased at an average annual rate of 3.5 per cent. > Promoting Australia as a destination for Australians > The national All The Space You Need campaign increased the consideration of Australia as a holiday destination. > The highly successful continuing campaign reached up to 90 per cent of the target audience through television (free and pay), cinema, newspapers, magazines, on-line and direct marketing.

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Corporate governance
OBJECTIVES PERFORMANCE INDICATORS OUTCOMES > Continued to improve and enhance partnerships with industry partners, state, territory and regional tourism organisations, consumers and all levels of government. > Entered a three-year partnership with AMEX, which has already targeted over two million cardholders and resulted in 6,000 inquiries. > Launched Visa prefers Australia campaign in conjunction with Visa in China. > Finalised a new three-year global destination marketing partnership with Qantas for Australia from 1 July 2005 worth more than $60 million. > Provided high-quality market intelligence, insights and co-operative marketing opportunities to industry. > Prepared media releases promoting Tourism Australia and achievements in key areas generating awareness and publicity amongst industry, consumers and all levels of government.

THE BOARD OF DIRECTORS

TA is governed by a 10-member Board of Directors, which reports to the Minister for Small Business and Tourism. The role of the TA Board dened by the Tourism Australia Act 2004, is to: > ensure the proper and efcient performance of Tourism Australias functions; and > determine Tourism Australias policy in relation to any matter. The TA Board is responsible for a governance framework to ensure that its statutory mandates are achieved. As a public sector agency, TA must be conversant with the general policies of the government of the day, as well as be informed about key Ministerial directions, and Commonwealth guidelines on major initiatives that relate to the organisation.

Establish Tourism Australia > Continuously improve as a professional, highlyinternal and external motivated, efcient and stakeholder management strategically-focused business through effective leverage partnerships

DIRECTORS OF TOURISM AUSTRALIA AS AT 30 JUNE 2005

The Hon Mr Tim Fischer AC Mr Tony Clark AM Mr Scott Morrison Mr Gerry Harvey Ms Valerie Davies Ms Jane Jeffreys Mr Wayne Kirkpatrick Mr Andrew Burnes Ms Karen Jacobs Mr Mark Paterson Ms Patricia Kelly Chairman Deputy Chairman Managing Director Director Director Director Director Director Director Government Member Alternate Government Member

THE CHAIRMAN
The Chairman and the Managing Director are separate appointments to ensure appropriate accountability and greater capacity of the Board for independent decision-making. The Chairman ensures that sufcient Board meetings are held to enable it to perform its duties responsibly; that appropriate agenda items are placed before the Board; and exercises control over the quality, quantity and timeliness of the ow of information between management and the Board. The Chairman is also responsible for the conduct of meetings of the Board.

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ORGANISATIONAL STRUCTURE

BOARD MEETINGS
The Board scheduled seven meetings during the year. The regular Board papers make Directors aware of current and forthcoming issues relevant to the organisations operations and performance. These papers contain the year-to-date nancial performance of all business groups (compared to budget), a report from the Managing Director relating to the operations of the organisation, proposals for signicant contracts and papers relating to particular issues. Senior management also present signicant matters to the Board.

Minister for Small Business and Tourism The Hon Fran Bailey

PERSONAL AND CORPORATE INTEGRITY

All directors and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of TA.
Chairman The Hon Tim Fischer AC

The TA Board subscribes to the code of conduct based on principles recommended by the Australian Institute of Company Directors. The code species values and behaviours in the areas of fairness, equity, lawful obedience, honesty, openness, respect, loyalty, integrity, protective care, efciency, personal development and leadership with which all employees have a responsibility to comply. TA has developed and implemented a code of conduct for its employees which is consistent with these values and behaviours. Separate policies exist covering discrimination, employment, harassment, health and safety and other business practices such as email usage, fraud control and security.

BOARD

Deputy Director Chairman Gerry Harvey Tony Clark AM

Director Valerie Davies

Director Jane Jeffreys

Director Wayne Kirkpatrick

Director Director Andrew Burnes Karen Jacobs

Government Member Mark Paterson

CONFLICTS OF INTEREST
The Board has in place a policy and procedures for the disclosure and resolution of any matter which may give rise to actual or potential conicts between the interests of a Director and those of the organisation.

RISK MANAGEMENT
The Board adopts practices designed to identify signicant areas of business risk and to effectively manage those risks in accordance with the companys risk prole.

Managing Director Scott Morrison

BOARD SUB-COMMITTEES
The Board carries out certain of its duties through Board committees. These committees meet regularly and make recommendations to the Board on issues delegated to them. The committees operate under terms of reference approved by the Board. Audit Committee: This committee ensures that an effective internal control framework exists across TA. This includes internal controls to deal with both the effectiveness and efciency of signicant business processes. The committee also reviews risk management controls and end of year nancial statements.

Director, International Richard Beere

> Asia > Americas > Japan > Gulf Countries > UK/Europe > International Operations

Director, Research & Strategy Geoff Buckley

> Tourism Research Australia > Market Research and Insights > Strategy and Planning > Aviation and Analysis

Director, Marketing Ian Macfarlane

> Brand Australia > International Media > e-Strategy > Tourism Events Australia

Director, Corporate Services John Hopwood

> Risk and Administration > Finance > Human Resources > Technology > Corporate Governance

Director, Australasia Andrew McEvoy

> Australia > New Zealand > Partnership Marketing > Australian Experiences > Trade Events

General Manager, Corporate Affairs Sasha Grebe

> Corporate Affairs > Government Relations > Industry Communications > Internal Communications

Human Resources Committee: This committee oversees the organisations human resources principles, practices and programs with regard to employee terms and conditions, management development, equal employment opportunity and remuneration.

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RECORD OF BOARD MEMBERS AND ATTENDANCE

The Board met seven times during the year in Sydney, Alice Springs and Hobart and had an aggregate attendance of directors of 99 per cent. Board members also represented TA at both industry and general forums. DATE OF APPOINTMENT/ REAPPOINTMENT 1 July 2004 1 July 2004 13 December 2004 1 July 2004 1 July 2004 1 July 2004 1 July 2004 1 July 2004 1 July 2004 1 July 2004 1 July 2004 1 July 2004 EXPIRY OF APPOINTMENT 30 June 2007 30 June 2005 At Boards pleasure 10 December 2004 30 June 2007 30 June 2005 30 June 2005 30 June 2005 30 June 2005 30 June 2005 30 June 2007 30 June 2007 BOARD MEETINGS ATTENDANCE 7 7 3 4 7 7 6 7 7 7 4 3

RECORD OF BOARD COMMITTEES 2004/05

HUMAN RESOURCES COMMITTEE POSITION

COMMITTEE MEMBERS Tony Clark Wayne Kirkpatrick Gerry Harvey Andrew Burnes Karen Jacobs Jane Jeffreys Valerie Davies

AUDIT COMMITTEE POSITION Chairman Member Member

ATTENDANCE 4 4 4

ATTENDANCE

MEMBER Hon Tim Fischer Chairman Mr Tony Clark Deputy Chairman Mr Scott Morrison Managing Director Mr Ken Boundy Acting Managing Director Mr Andrew Burnes Director Mr Wayne Kirkpatrick Director Mr Gerry Harvey Director Ms Karen Jacobs Director Ms Jane Jeffreys Director Ms Valerie Davies Director Mr Mark Paterson Government member Ms Patricia Kelly Alt Government member

Chairman Member Member Member

5 5 5 5

Note: All Board members with a 30 June 2005 expiry date, with the exception of Mr Gerry Harvey, were re-appointed for a further term.

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Directors of Tourism Australia

The Hon Mr Tim Fischer AC, Chairman Appointed to the Board in July 2004 Mr Tony Clark AM, Deputy Chairman Appointed to the Board in July 2004 Mr Scott Morrison, Managing Director Appointed Managing Director in December 2004 Mr Gerry Harvey, Director Appointed to the Board in July 2004 Appointment current to 30 June 2005 Ms Valerie Davies, Director Appointed to the Board in July 2004 Ms Jane Jeffreys, Director Appointed to the Board in July 2004 Mr Wayne Kirkpatrick, Director Appointed to the Board in July 2004 Mr Andrew Burnes, Director Appointed to the Board in July 2004 Ms Karen Jacobs, Director Appointed to the Board in July 2004 Mr Mark Paterson, Government Member Appointed to the Board in July 2004 Ms Patricia Kelly, Alternate Government Member Appointed to the Board in July 2004

Ecologically sustainable development and environmental performance

Tourism Australia has a statutory obligation under the Tourism Australia Act 2004 to help foster a sustainable tourism industry in Australia. Working together with the Department of Industry, Tourism and Resources, the Department of the Environment and Heritage, State Tourism Organisations and industry partners, Tourism Australia seeks to full this commitment and help to ensure the responsible development and promotion of Australias tourism industry. Tourism Australia is: > developing benecial partnerships, which contribute to the long-term environmental, social and economic sustainability of the tourism industry; > developing a reliable knowledge base to enable effective decision-making processes, which integrate both long-term and short-term economic, environmental and social considerations; > creating a sustainable tourism focus for Tourism Australia marketing activities; > creating a high prole for best practice sustainable tourism product; and > working to continuously improve Tourism Australias corporate environmental performance.

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REPORT OF OPERATIONS

Corporate Services
OVERVIEW
The role of Corporate Services is to supply Finance, Administration, Risk Management, Human Resources, Technology and Board secretarial services to Tourism Australia.

RISK AND ADMINISTRATION

Administration Services supports Tourism Australia in the areas of premises and despatch services, records management, printing, reception, occupational health and safety, ofce equipment supplies and maintenance. All procurement activities undertaken by Tourism Australia were consistent with Australian Government policies and guidelines. The operations of the risk management area are designed to minimise risk to Tourism Australia in a cost effective manner and to an acceptable level. Risk management principles and practices have been incorporated further into the organisations decisionmaking and operational activity. The major operations of risk management are to: > Provide education and awareness of risk management; > Develop and manage systems of risk identication and effective control; and > Co-ordinate and manage insurance, contracts, legal, audit and lease issues. Tourism Australia has a comprehensive insurance program that includes Directors and Ofcers liability managed by Comcover. Highlights and results > A new Australian Government procurement environment which became effective on 1 January 2005 was introduced into Tourism Australia. > The Tourism Australia Safety Handbook was revised and new standard contract templates were developed. > Tourism Australia premises in Sydney, London, LA, and Shanghai were relocated. > Occupational health and safety practices were enhanced.

FINANCE
The Sydney Finance unit provides professional services for the total nance functions of Tourism Australia. The unit develops strategies and maintains operations for nancial systems, budgeting, tax reporting and treasury operations and supports the regional Corporate Services Managers. Highlights and results > A key responsibility for the unit was the accounting for the organisations nancials. Tourism Australias expenditure for the year was $AUD165.5 million. > Government revenue was $AUD138.4 million and revenue from co-operative industry activities and other sources reached $AUD31.4 million, a combined total of $AUD169.8 million. > Tourism Australia recorded a $AUD4.3 million surplus for 2004/05. > Debts written-off during the year totalled $AUD1,800 with provision for doubtful debts at $AUD219,000 at 30 June 2005, to reect the accrual of potentially non-recoverable debts over the year. Debtors prole and collections were improved during the year. > Foreign currency funds management was undertaken on a spot basis with transactions being initiated to provide Tourism Australia with the most cost-effective level of foreign currency funding. > Improved banking arrangements were implemented through a global banking agreement and customer initiated web-based transactions.

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Corporate Services
TECHNOLOGY SERVICES
Tourism Australias technology activities are managed under the four business units of the Corporate Services division: > Infrastructure administration and management of the corporate infrastructure including network, telecommunications and standard ofce applications. > Applications Operations management and support of all operational systems used in day-to-day business and marketing activities. > Technology Development assessment and execution of all new technology projects as well as management of information and communication technology governance. > Service Desk technology support services provided through a single point of contact for all Tourism Australia staff. Highlights and results > australia.coms hosting facilities were transferred back to Australia from a US-based agency. > Activities continued for the implementation of a new customer relationship management system. > Video conferencing facilities were introduced to link six Tourism Australia ofces globally. > Development and improvement of business applications and websites for australia.com, Trade Events, Business Events, International Media unit, Finance and HR/Payroll. > Facilities and services for the European arm of the Destination Australia Partnership (DAP) were implemented. > Successful migration of all technology services during the relocation of Tourism Australias Sydney ofce, which included the organisations central computer facilities. > Best practice processes for IT Service Management were adopted.

HUMAN RESOURCES
The role of Human Resources is to assist in building optimum organisational performance. This includes developing strategies and driving change in all aspects of operations to ensure that Tourism Australia has the human capability, culture and structures necessary to meet ever-changing needs. > Average staff numbers for 2004/05 were 111 employees in the head ofce, 21 employees in Canberra and 113 employees in 12 overseas ofces. > Of the 245 employees, 34 per cent were male and 66 per cent were female. Women held 34 out of 65 management positions. > Tourism Australia remained fully compliant with all occupational health and safety requirements during 2004/05. > Tourism Australia maintains workplace diversity by ensuring equity in recruitment procedures and the creation of promotional opportunities both in Australia and on a global basis. > Tourism Australias Equal Employment Opportunity program especially recognises employees domestic and family responsibilities. In furthering family friendly policies, Tourism Australia offers part-time employment and exibility in working hours. > There were no industrial disputes over the past 12 months. > In line with the Commonwealth Disability Strategy, our recruitment information is provided in multiple formats as required. > Tourism Australia programs are held in locations that are accessible to people with disabilities. > Tourism Australias employment policies, procedures and practices comply with the requirements of the Disability Discrimination Act 1992, the Racial Discrimination Act 1975 and the Sex Discrimination Act 1984. > Tourism Australia offers exible working arrangements and supports staff in undertaking opportunities for personal and professional development. Tourism Australia also provides a range of mechanisms to enhance communication and consultation including through the Joint Consultative Committee and regular staff surveys. Highlights and results > In 2004/05 the Australian Tourist Commission (ATC) transitioned to become Tourism Australia. This transition integrated See Australia and the Canberra-based Bureau of Tourism Research with ATC to form Tourism Australia. It also involved the realignment of business groups and recruitment of the Executive Leadership Team for Tourism Australia. > Outsourced payroll functions were brought in-house and a new payroll system was implemented through a global Human Resources Information System (HRIS). The implementation of HRIS will enable improvements in global reporting on key HR deliverables. > A global HR audit was conducted to ensure Tourism Australia complies with local employment legislation. > The annual staff survey was conducted in May 2005 with a survey response rate of 70 per cent. The survey provided an insight into key areas for improvement including internal communications, career development and training. > A section was developed for user friendly HR policies and procedures on the internal corporate website. > A global induction program was introduced. > The strategic plan People and Culture was developed and will be implemented in 2005/06. > Tourism Australia placed 84 people in roles including 20 internal appointments.

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Strategy and Research

OVERVIEW
The Strategy and Research division provides market and industry knowledge and insights that underpin all Tourism Australia strategic and operational decisions. The area conducts and gathers research and intelligence, from both primary and secondary sources, to help improve decision-making not just for Tourism Australia, but for the Australian tourism industry as a whole. The group also co-ordinates the corporate and operational planning function for Tourism Australia globally, managing the development of Tourism Australias Corporate Plan and its Annual Operating Plan. A key function within that role is the development and evaluation of the organisations Key Performance Indicators, helping to measure the success of its Corporate Strategy. A key role for the team is the co-ordination of primary survey research on both domestic and international visitors to and within Australia. This function is undertaken by Tourism Research Australia, a business unit within the division, and is a vital information tool for the Australian tourism industry.

STRATEGIC INSIGHTS
The Strategic Insights unit manages a comprehensive international and domestic market research and analysis program, providing ongoing strategic information to Tourism Australia and the tourism industry. The unit generates insights about customers and markets for use in planning and decision-making processes. It also provides information for use by key external stakeholders from industry and government. The research program is focused around brand tracking, consumer insight, creative testing, product and experience insights, leading indicators, analysis and dissemination. The strategic intent is to deliver industry insights, so that decisions made to help grow sustainable tourism in Australia are based on understanding the challenges and opportunities currently facing the industry. Highlights and results > International brand health and communication tracking was improved with an enhanced methodology, a new questionnaire and new interactive reporting format for internal clients. Tracking was undertaken in UK, Germany, Italy, US, China, Singapore, Korea and Japan, generating understanding of the challenges in moving consumers from awareness to visitation. > A global target segment for Australia, the ideal visitor, was identied and proled, entailing detailed re-analysis of all segmentation studies undertaken in US, UK, China and Germany, analysis of international visitor survey data and the commissioning of new research. > UK, US, China and Germany segmentation models were added to the International Visitor Survey (IVS). > Comprehensive testing of the new brand campaign was undertaken in China, Japan and Korea. This testing determined which aspects of the campaign worked most effectively and which creative executions had the most resonance amongst sectors of the market. > Tracking and testing of the new domestic campaign was conducted, which identied opportunities to netune campaign creative and measure results. > Tracking of various travel segments through the IVS provided an opportunity for analysis of visitor behaviour and assisted with communication initiatives, distribution, transport and travel experience strategies for Tourism Australia and State/industry partners.

CORPORATE PLANNING
The Corporate Planning unit co-ordinates the development of the organisations three-year Corporate Plan, while monitoring and evaluating the corporate performance and managing operational planning processes. The unit also co-ordinates the processes and analysis of resource allocation decision-making and is responsible for measuring the delivery of Tourism Australias White Paper initiatives as directed by the Australian Government. A key objective was to develop, approve and implement the Corporate Plan for 2005/06 2007/08 and the Annual Operating Plan for 2004/05. Highlights and results > Tourism Australias rst Corporate Plan for 2005/06 2007/08 was developed and accepted by Tourism Australias Board and the Minister for Small Business and Tourism, the Hon Fran Bailey MP. > Tourism Australias Annual Operating Plan 2004/05, co-ordinating the organisations strategies and actions in the rst year of the new organisation was implemented, with a new 2005/06 plan produced and approved.

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Strategy and Research

AVIATION AND ANALYSIS
The Aviation and Analysis unit ensures Tourism Australias marketing strategies take advantage of aviation developments and are sensitive to aviation constraints. The unit also enhances the quality and inuence of Tourism Australias input on aviation issues associated with airlines, airports, the Department of Transport and Regional Services and State and Territory tourism organisation partners. Economic analysis is applied to review and evaluate industry performance to help Tourism Australias stakeholders better understand key drivers of the tourism industry. A key objective for 2004/05 was to deliver industry and aviation insights to assist Tourism Australia better align strategies to all industry partners. Highlights and results > Commissioned the Australian Bureau of Statistics to complete the Private Sector Tourism Marketing Spending survey, which provides valuable information on the majority share of total tourism marketing by the Australian private sector. > In conjunction with Tourism Research Australia, an improved indicator on the economic value of inbound tourism to Australia was developed and adopted by the Tourism Forecasting Committee and applied in Tourism Australias Corporate Plan for 2005/06 2007/08. > Bilateral aviation capacity with Hong Kong and India was signicantly increased and opportunities were identied for outbound airline services beyond these countries. > The unit also contributed to other Australian bilateral aviation negotiations with the United Kingdom, the United States, Singapore, Vietnam, Korea and Taiwan. > Briengs were held for State and Territory tourism organisations and industry partners on the growing inuence of low cost airlines in domestic tourism and inbound tourism aviation briengs were provided to attendees at the Australian Tourism Exchange.

TOURISM RESEARCH AUSTRALIA

On 1 July 2004, Tourism Australia was inaugurated bringing together four separate organisations the Australian Tourist Commission, See Australia, the Bureau of Tourism Research (BTR) and Tourism Forecasting Council. Two new business units Tourism Events Australia and Tourism Research Australia (TRA) were established to focus on industry and market needs. The establishment of TRA created new opportunities to expand the wide range of activities for which BTR was previously responsible. TRAs charter is to focus on producing and disseminating timely, relevant and accurate research and industry insights while promoting the signicance of research in underpinning informed decision-making. Highlights and results > In January 2005 the sample sizes of the International Visitor Survey (IVS) and National Visitor Survey (NVS) were increased from 20,000 to 40,000 and 80,000 to 120,000 respectively. This expansion improved the reliability of results by 25 per cent (IVS) and 16 per cent (NVS). > IVS expansion allowed additional countries such as India, France, Switzerland, Netherlands, Italy and Scandinavia to be benchmarked against Australian Bureau of Statistics (ABS) Overseas Arrival and Departure (OAD) data. > Quarterly survey results were available to stakeholders within nine weeks for NVS and 10 weeks for IVS a signicant improvement in timeliness. > A new Destination Based Survey (DBS) collection was designed and established. DBS proposals were received from all State and Territory Tourism Organisations and a rst round of seven projects were selected for 2005/06. > An evaluation of web-based reporting technologies to disseminate TRA data and publications was completed. The new software will enable TRA to deliver micro-level information via its website, including mapping and automated reporting capabilities. > The TRA Forecasting units market value methodology/forecasts now constitute the benchmark for measuring Tourism Australias performance. > A snapshot series covering markets such as backpackers, caravan and camping travellers, visitors interested in nature, indigenous culture, Australian wine and food were developed. > A new Tourism Forecasting Committee and Technical Sub-Committee were formed.

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Corporate Affairs
OVERVIEW
The Corporate Affairs unit is responsible for the reputation and inuence of Tourism Australia through the management of government relations, media management, public relations and corporate communications (internal and external) activities. The unit develops and deploys effective communications strategies to ensure that Tourism Australia is portrayed in a positive manner to the industry and all of its stakeholders, including internal audiences.

INDUSTRY COMMUNICATIONS
Highlights and results > Development and implementation of an Industry Stakeholder research project that will inform and direct Tourism Australias future industry communications strategy. > Co-ordinated a series of Market Briengs in all capital cities to update the tourism industry on Tourism Australia strategies and activities. > The Corporate Affairs unit maintains effective relationships with key industry stakeholders including the Australian Tourism Export Council (ATEC), the Tourism and Transport Forum (TTF) and the National Tourism Alliance (NTA). > As part of the communication strategy for ATE, the Corporate Affairs unit supported the Trade Events team with industry communications preceding the event, liaised with State and Territory tourism organisation staff, and produced a daily newspaper that was distributed to all trade show delegates. > Wrote and distributed the weekly e-newsletter essentials to approximately 10,000 industry subscribers.

PUBLIC AFFAIRS/MEDIA RELATIONS

Highlights and results > Ongoing issues and media management. > Preparation of more than 60 media releases to promote Tourism Australias activities, generating more than 1,000 articles in the Australian media. > Preparation of presentations and speeches to support the Managing Director and Chairmans speaking engagements. > Launch of Tourism Australias refreshed corporate website, tourism.australia.com. > Management of the domestic media program at the Australian Tourism Exchange (ATE) including press conferences for senior management and the Minister for Small Business and Tourism the Hon Fran Bailey MP. > Co-ordinated the launch of Tourism Australias domestic marketing campaign, All The Space You Need, which featured 30 great Australian spaces. > Developed and co-ordinated the publication of Tourism Australias Corporate Plan, and distributed it to all Tourism Australia staff, ATE buyers and sellers, Australian Government Members and Senators and industry stakeholders. > Prepared brieng material and advice to key Tourism Australia staff in response to emerging issues that may have impacted on Australias reputation.

GOVERNMENT RELATIONS
Highlights and results > Co-ordinated a brieng for the Minister to update key government stakeholders, the Coalition Friends of Tourism on Tourism Australias domestic marketing campaign. > Conducted inaugural ALP Friends of Tourism brieng in Canberra. > Liaised with Tourism Australia regional ofces and the Department of Industry, Tourism and Resources (DITR) and the ofce of Minister for Small Business and Tourism in the co-ordination of the Ministers visit to the UK and industry mission to China, Korea and Japan. > Co-ordination of Tourism Australias participation in Industry Implementation Advisory Group (IIAG), the Australian Standing Committee on Tourism (ASCOT) and the Tourism Ministers Council (TMC). > Provided regular input into ministerial briengs and ministerial correspondence. > Provided input into the Department of Foreign Affairs and Trade and the Department of Defence Joint Standing Committee inquiries into Australias relationship with Korea and Expanding Australias Trade and Investment Relations with the Gulf Region. > Meetings and briengs with the Treasurers Ofce, Cabinet Policy Unit, Prime Ministers Ofce and the Minister for Employment and Workplace Relations on the issue of accrued leave in Australia. > Co-ordinated specic government program for ATE, including attendance by Federal, State and Territory parliamentarians and government department representatives. > Co-ordinated Tourism Australias involvement on the Inter-Departmental Committee (IDC) International Education Forum Sub-Committee, M2006 Communications Working Group, Australian International Cultural Council, Aichi Expo 1st Advisory Board, National Tourism Incident Response Plan Working Group, Restaurant and Catering Industry Action Agenda and the National Visitor Safety program.

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Marketing
OVERVIEW
The Marketing department is responsible for the development and execution of Tourism Australias marketing program. The 2004/05 scal year has seen the execution of the Australia. A Different Light campaign with brand campaign strategy being evolved and executed in line with Tourism Australias Corporate Plan. As part of the evolved brand strategy, support services were developed to ensure the optimal effectiveness of the campaign. A particular focus for Marketing has been the development of online and digital marketing platforms.

CONSUMER MARKETING
The role of the Consumer Marketing division is to develop the strategy for the development and implementation of Brand Australia through marketing communication across the world. It also provides resources such as images and marketing collateral to support the consistent representation of Australia on the world stage. There are two units within Consumer Marketing: Advertising and Design, and the International Media unit. The Advertising and Design unit manages the production of guidelines and marketing materials, and the International Media unit is responsible for product- and destination-focused public relations activities including the Visiting Journalists Program. Highlights and results > The Consumer Marketing division oversaw the launch of new Brand Australia campaigns in North America, Hong Kong, China, and Japan, and ensured all local adaptations to the campaigns were consistent with the overall creative strategy. > New advertising guidelines were developed and used globally, ensuring a consistent approach to co-operative marketing partnerships. > Tourism Australia worked closely with Austrade in the development of an integrated identity for all offshore trade events and Business Club Australia. The co-operation with Austrade has resulted in a more consistent representation of Australia overseas. > A global advertising and media agency review resulted in the selection of M&C Saatchi and Carat to undertake Tourism Australias advertising and media buying activities going forward. > The creation of a Brand Australia communications framework for the promotion of the Melbourne 2006 Commonwealth Games overseas resulted in effective outdoor and print campaigns in the United Kingdom, Malaysia and Singapore.

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Marketing
ADVERTISING AND DESIGN
The Advertising and Design unit manages the production of global marketing communications, materials and applications, and ensures the Brand integrity of all programs. The unit also incorporates Creative Services, which supplies artwork, printed material, images and video footage to all Tourism Australia ofces, supporting the organisation to achieve its communication objectives. Highlights and results > Comprehensive guidelines for a new Brand Australia visual identity were launched and distributed in September 2004, featuring new consumer and corporate logos, design guidelines and an image style guide. These guidelines have been extensively used by all Tourism Australia ofces resulting in design consistency for the brand. > The hero photography shoot was conducted over a 10-month period and resulted in high quality, motivating images that have been used extensively by all Tourism Australia ofces in advertising, collateral, online and trade events. The new hero images include Australian icons and experiences from all States and Territories. > The image and video libraries were made available to tourist operators, domestic media, international media and commercial partners providing access to highest quality imagery and footage of Australia. > The Song for Australia national songwriters competition was conducted to nd a song capturing the essence and spirit of Australia. The winning song, by Jackie Bristow was recorded in October 2004 with a music video developed in November 2004. The song was launched on 23 November 2004 resulting in comprehensive TV, press and radio coverage nationally.

INTERNATIONAL MEDIA
The International Media unit is responsible for driving Tourism Australias global brand message through worldwide public relations activities that target consumers in key overseas markets. The unit is responsible for the International Media Relations Program (IMR) and the Visiting Journalists Program (VJP). The IMR program ensures up to date information, news and copyright-free information is distributed through the global public relations network. The VJP hosts targeted media from around the world, who report on Australias many experiences and attractions. The unit is also responsible for managing Tourism Australias media website. Highlights and results > In 2004/05 Tourism Australia hosted 802 international print and broadcast journalists to Australia through the VJP, delivering Brand Australia messages to millions of potential travellers from around the world. The media value generated from coverage was in excess of $AUD483 million. Some of these visits included hosting: 18 of Chinas most inuential travel journalists as part of the Colours of Australia promotion, reaching an audience in excess of 105 million people with a media value of around $AUD10 million; Celebrity photographer Rankin who captured the spirit of Australia for an exhibition in central London, with associated activities reaching an audience of around 8.4 million people; GMTV, the United Kingdoms highest rating breakfast program. The resulting program reached over 30 million viewers and generated exposure estimated to be worth $AUD4 million; Journalist Tom Clynes, whose unique experience learning to y while visiting three Australian states generated a major feature story in National Geographic Adventure magazine, reaching over 500,000 readers. > The international media program at ATE targeted 42 international media, boosting the coverage of Australia in trade publications in 21 countries. Coverage received to date is valued at almost half a million dollars. In addition, the international media program at Dreamtime 2004 targeted 20 international media from 13 countries.

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Marketing
E-STRATEGY AND MARKETING
The e-Strategy and Marketing division was formed in January 2005 and has two main business units: e-Marketing and e-Business. e-Marketing promotes Australia through digital media initiatives, such as australia.com, website planning, partnership development and online strategy development. The purpose of the group is to generate brand awareness in the digital environment and deliver relevant information to consumers. The second area, e-Business is responsible for the strategic direction and management of Tourism Australias business-to-business marketing programs, including the contact management system. Highlights and results > In 2004/05 australia.com recorded over 120,000 pages per day of online trafc an annual total of more than 45.7 million pages. Visitation to the North America site now accounts for 46 per cent of all online contact, Europe represents 22 per cent, Japan 11 per cent and Australia 10 per cent. > In this nancial year, australia.com displayed 18,300 Australian tourism products, from the Australian Tourism Data Warehouse (ATDW). This was a nine per cent increase over 2003/04. > In October 2004, chat rooms and bulletin boards were launched on the Japanese edition of australia.com. The initiative, known as My Style Australia saw a 40 per cent growth in visits to chat rooms by young Japanese women aged between 20-39 years. > The interactive space.australia.com website was launched in March 2005 as part of Tourism Australias rst domestic brand marketing campaign. > The Whats On area of australia.com was improved with a calendar that allows consumers to search for events and festivals around Australia by date, region, scale or type. This event data is contributed by the Australian Tourism Data Warehouse (ATDW). > In June 2005, Tourism Australias media site was updated to improve service to international media and allow journalists access to a range of media collateral. > e-Business rolled out a formalised training program for Tourism Australias global staff to use the content management system, introducing an online support tool and user framework.

BUSINESS EVENTS
The Business Events unit focuses on positioning Australia as a highly desirable international business events destination. The unit acts as a co-ordinator between organisations and governments to maximise the return on investment associated with attracting and staging international events in Australia, as well as working with government departments on issues that impact on the Australian business events industry. Highlights and results > The National Business Events Study was launched on 14 December 2004. The studys key ndings showed that business events in Australia are valued at $AUD17.36 billion and create 214,000 jobs. For the rst time, incentive statistics were available indicating this market is valued at $AUD585 million. > Australias premier incentive travel event, Dreamtime, was held in November 2004, showcasing a wide range of tourism products to global incentive travel buyers. Since its inception, Dreamtime has developed a reputation as a leading trade show and familiarisation program for the incentive tourism industry in Australia. > Tourism Australia hosted three corporate familiarisations, including the rst New Zealand visit, in June 2005. The aim of the program was to move corporate decision-makers towards conversion. > Team Australia, the marketing alliance between members of the Association of Australian Convention Bureaux (AACB) and Tourism Australia, successfully completed three international projects.

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Australasia
OVERVIEW
The Australasia department is responsible for marketing to Australias two largest source markets in terms of volume the domestic market and New Zealand. The Australia Marketing unit aims to stimulate interstate leisure tourism by encouraging more Australians to think Australia could satisfy my holiday needs more than I realised. The New Zealand team, based in Auckland, manage campaign strategies that ensure Australia continues to hold the dominant share of New Zealands outbound travel. For the purpose of this Annual Report, New Zealand has been included in the International Markets section on page 67. The Australasia department also maintains regular industry contact through the Partnership Marketing unit, the Australian Experiences unit and the Trade Events unit.

DOMESTIC MARKETING
Domestic leisure tourism accounts for approximately 70 per cent of all tourism expenditure in Australia. Domestic tourism plays a key role in dispersing the economic and social benets of tourism throughout rural, regional and remote Australia with 53 cents of every domestic tourism dollar being spent outside capital cities. The Australian domestic leisure market has been stagnant for the past 10 years, with less than one per cent annual growth in overall visitor nights and visitor spend. In 2004 the outbound market grew 29 per cent. This provided Tourism Australia with a unique challenge to increase domestic tourism in the face of increased demand for overseas travel. Tourism Australias objective is to stimulate interstate leisure tourism by encouraging more Australians to think Australia could satisfy my holiday needs more than I realised. Highlights and results > A new domestic marketing team was established as part of the formation of Tourism Australia. A three-year strategy for domestic tourism was created and rolled-out. > The $AUD8 million All The Space You Need marketing campaign was launched on 29 March 2005. The campaign targeted Australias ideal visitors who have high disposable incomes and, despite preferring overseas travel, do not reject an Australian holiday. > The four-month campaign included print, online, TV and cinema advertising, as well as direct mail and public relations activities, such as: Direct mail to 500,000 frequent traveller households in Sydney, Melbourne and Brisbane; Media sponsorship of the Rugby Lions Tour on Foxtel with a purpose-produced advertisement featuring Rugby legend Phil Kearns. Two purpose-produced magazines were inserted into Fairfax newspapers with a combined circulation of over one million. All content and advertising was dedicated to unique Australian travel experiences. > All campaign activities drove consumers to a dedicated microsite on australia.com, which featured information on Australias 30 Great Spaces as well as 10 great drives and 10 great beaches. The highly interactive website allowed consumers to search for information and plan Australian holidays. > The Spaces campaign generated almost 400,000 new and unique users to australia.com over the duration of the campaign > The campaign reached 85-90 per cent of the target audience 10 (plus) times. The campaign was strong on message and outdid previous domestic marketing efforts on most measures.

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PARTNERSHIP MARKETING
Partnership Marketing is responsible for developing industry relationships through the provision of market intelligence, insights and opportunities to the Australian tourism industry. The unit is also responsible for cooperative sales programs targeting trade and consumers, thereby improving Tourism Australias understanding of industry program development. In partnership with Tourism Queensland, the Industry Development Executive Pilot Program brought greater awareness of Tourism Australia throughout Queensland. Highlights and results > The unit conducted over 500 market updates and research presentations to industry partners. It also linked over 500 industry partners to Tourism Australias global marketing campaigns. > Over 200 Australian industry contacts per month were recorded. These included presentations on market insights, intelligence and co-operative opportunities. > Promoted co-operative marketing opportunities to the industry, generating sales to the value of $AUD1.8 million. > The unit produced The Big Book of Australia in partnership with Tourism New South Wales, Tourism Victoria and Tourism Western Australia, with subset publications for each state involved. The program delivered signicant cost and resource savings by sharing resources. > A focus for the year was on the development of the organisations Customer Relationship Management program to ensure all staff have greater access to the latest intelligence concerning Tourism Australias partners. > Self-help systems such as the Marketing Mix Builder, which assists in planning marketing activities with Tourism Australia, were maintained and updated for Australian partners.

AUSTRALIAN EXPERIENCES
The role of the Australian Experiences unit is to develop and communicate niche experiences, as identied in the Australian Governments Tourism White Paper (2003), to foster long-term economic growth, especially in regional areas. This involves identifying travel experiences and supporting the necessary development of infrastructure and marketing programs. The unit works with state and territory tourism ofces, industry groups and businesses to develop and actualise new Australian tourism experiences. In collaboration with other areas within Tourism Australia, the unit ensures these experiences are connected to global consumers via e-marketing, tactical marketing, public relations and media programs. Highlights and results > As an early initiative, the Aussie Experiences Kit was developed, providing off the shelf support for industry associations and tourism businesses in targeted segments. The toolkit includes experiences research snapshots, images, access to promotional material, and distribution information. > Strategic alliances were established with the Department of Industry, Tourism and Resources (DITR), State Tourism Ofces and other industry associations. > Travel experiences in Nature, Food and Wine and Indigenous were showcased at three Australian Tourism Exchange (ATE) lunches, attended by over 2,000 international and local tourism industry representatives. > Developed the framework for Indigenous Tourism Australia (ITA), to be established on 1 August 2005.

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TRADE EVENTS
The Trade Events unit plan, prepare, implement, manage and review all global trade events for Tourism Australia while working with stakeholders such as Qantas, State Tourism Ofces, and the Destination Australia Program (DAP) in Europe. It ensures trade event activities are communicating the corporate messages and brand of Tourism Australia to the global distribution system. The implementation of Trade Events Online (TEO) has streamlined the event process to better match the needs of buyers and sellers at events. Highlights and results > The Australian Tourism Exchange (ATE) 2005 was held in Perth, the rst time the event has moved from the east coast of Australia. Around 100,000 business-to-business meetings were held between 2,000 buyers and sellers at the event and over 500 international buyers experienced more of Western Australia in touring familiarisations before and after the event. > An Aussie Specialist Pilot Program saw 20 United Kingdom and 20 American Aussie Specialist travel agents attend ATE for the rst time with the support of the industry and wholesalers. > ATE Perth had a record 90 per cent approval rating from buyers and 96 per cent approval rating from sellers at the event. > 30 other global trade events were co-ordinated by the Trade Events team in 2004/05 across all major markets. Trade Events 2004 2005 EVENT NAME Visit Americas Roadshow Meeting Professional International Oz Talk SE Asia Oz Talk USA Corroboree USA Luxury Travel Expo NY India Travel Mission 2004 WYSTC PRIME PATA Incentive Travel & Meeting Executive Incentive Travel & Conventions, Meetings Asia Australian Travel Mission to China Dreamtime World Travel Market China International Travel Mart EU Incentive, Business Travel & Meeting Exhibition International Luxury Travel Market Exhibition Luxury Travel Expo Las Vegas Visit Americas Roadshow American Express Australia Travel and Education Expo Vankantierbeurs DT Adventure Travel & Sports Show Holiday World Dublin Destinations TA Market Briengs Borsa Internazionale del Turismo Japan Australia Mission Internationale Tourismus Borse Oz Talk NZ Gulf Countries Roadshow ATEC Symposium Arabian Travel Market Discover Australia IMEX Australian Tourism Exchange DATES 11-22 July 2004 25-27 July 2004 29 July - 4 August 2004 9-12 August 2004 23-25 August 2004 7-10 October 2004 15-19 September 2004 12-18 September 2004 16-19 September 2004 22-24 September 2004 28-30 September 2004 12-14 October 2004 24-27 October 2004 28 October - 2 Nov 2004 8-11 November 2004 25-28 November 2004 1-2 December 2004 7-9 December 2004 7-9 December 2004 9-19 January 2005 20-21 January 2005 11-16 January 2005 14-16 January 2005 27-30 January 2005 3-6 February2005 9 February - 22 April 2005 12-15 February 2005 24-26 February 2005 11-15 March 2005 April 2005 23-27 April 2005 26-29 April 2005 3-6 May 2005 13-15 May 2005 19-21 April 2005 18-24 June 2005 COUNTRY US Canada KL, Hong Kong US US US India Spain US Singapore US Thailand China Australia United Kingdom China Spain France US US US Netherlands United Kingdom Ireland United Kingdom Australia Italy Japan Germany New Zealand Middle East Australia UAE Australia Germany Australia

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International
OVERVIEW
The International unit is responsible for managing Tourism Australias operations across ve key regions of UK/Europe, Asia, Japan, Americas and Gulf Countries. The unit also manages the Aussie Enthusiast program which covers markets where Tourism Australia does not have an active presence. The unit is responsible for a wide range of activities including management of key tourism issues, global partnerships and distribution, market intelligence and knowledge, as well as day-to-day interaction with Tourism Australias 12 international ofces. The unit provides guidance and consultation in international markets both internally and externally, represents Tourism Australia on major Government and Industry committees and panels relating to international markets and issues, and provides ongoing dialogue and development with State and Territory Tourism Organisations (STOs) via the Destination Australia Marketing Alliance (DAMA). The International unit is the key interface between the overseas markets and Australia.

INTERNATIONAL PARTNERSHIPS
The International unit develops and manages global airline partnership agreements for Australia with airlines such as Qantas, Singapore Airlines and Emirates. The unit represents Tourism Australia on the Boards of the Australian Tourism Export Council (ATEC) and the Pacic Asia Tourism Association (PATA). It also represents the organisation on the Destination Australia Marketing Alliance (DAMA), a joint partnership between the Australian State and Territory Tourism Organisations. The unit also co-ordinates stakeholder consultation through the International Industry Advisory Panels (IAP) to provide strategic advice and direction in relation to Tourism Australias global strategy. Highlights and results > Richard Beere, Director of International Operations, Tourism Australias nominated representative to the PATA Board, has been elected Chairman of PATA and will assume the role in March 2006 for a 12 month period. > One of the main areas of focus for 2004/05 was the inauguration of Destination Australia Partnership (DAP) in Europe through the Destination Australia Marketing Alliance (DAMA). The unit oversaw the co-location of these entities and assisted with the strategic alignment of Tourism Australia and State and Territory tourism organisations in the region. DAP will now enable Tourism Australia to increase its penetration in core European markets. > Preparation of a new framework for airline partnerships, to ensure the expanding needs of the Australian tourism industry are met. This has resulted in the expansion of airline partnerships around the world.

INTERNATIONAL OPERATIONS
The International team also manages the organisations global trade and industry partnerships, guaranteeing Australias capability to meet consumer needs through commercial outlets such as travel agents, online operators and the broader travel distribution system. Highlights and results > A framework was built that allowed Tourism Australias business and industry partners to access the most up-to-date and relevant tourism information. This information assists protability and sustainability amongst industry partners. > A platform to source industry information from around the world was made available through Tourism Australias corporate site. > Proles on international markets were prepared, ensuring Tourism Australias industry partners had access to the latest trends to assist in the development of various industry programs.

INTERNATIONAL ISSUES
Members of Tourism Australias International unit represent the organisation on a number of industry groups that monitor and manage tourism issues for Australia. The Korea Tourism Industry Group (KTIG) looks at quality issues in the Korean market and the China Joint Monitoring Group (CJMG) monitors quality issues in the China market. CJMG also facilitates sustainable and long-term tourism opportunities in the China. Locally, the unit acts for Tourism Australia on the Tourism Visa Advisory Group (TVAG), a partnership between government agencies and industry that reviews global visa issues. Other agencies and tourism industry representatives involved in this group are the Department of Industry, Tourism and Resource (DITR), the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA), State Tourism Ofces, Qantas and the Australian Tourism Export Council (ATEC). Highlights and results > In conjunction with KTIG, the unit assisted with the implementation of a national action plan to address key issues in the Korean market. Tourism Australia had specic areas of responsibility within the plan and reported to the Minister and Department of Industry, Tourism and Resources (DITR) on these achievements. > Work continued with government in 2004/05 to facilitate changes to the Approved Destination Status (ADS). Tourism Australia worked with DIMIA, DITR and ATEC in the development of a framework and procedures for the Australian industry to co-ordinate sale of Australian holidays in China. > A partnership established with DIMIA provided a platform to table and resolve regional challenges and market failures through the visa process. Areas of focus included the Working Holiday Visa Program, Gulf Region, Thailand and China. This resulted in the Preferred Agents Scheme being introduced in India and Russia.

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International
AUSSIE ENTHUSIASTS
The Aussie Enthusiasts Program was launched in 2004 as a major initiative of the Memorandum of Understanding (MOU) between Austrade and Tourism Australia. Available to all international travel agents regardless of location, the program is designed to extend Australias reach in international markets where Tourism Australia does not have an active presence. A framework now exists for Tourism Australia to service tourism operators working in non-priority markets. Under the MOU, agents have been assisted to better sell Australia in countries such as Mexico, Finland, Philippines, Vietnam, Belgium, Czech Republic, Latvia, South Africa, Brazil, Russia, Argentina, Poland and Nigeria. The program can be accessed at tourism.australia.com/enthusiasts and via the Austrade network in 57 countries around the world. It is also available to agents via their inbound tour operator (ITO) partners in Australia. Toolkits and promotional materials supporting the program have been distributed to 123 international Austrade ofces, 51 Tourism Australia regional contacts, eight State and Territory Tourism Ofces and 61 Inbound Tour Operators (ITOs). Highlights and results > Austrade identied and are working with 47 agencies in Tourism Australias non-priority markets. 15 new agencies contacted Tourism Australia directly and have been serviced under the Aussie Enthusiast Program. Australianbased tourism operators were also encouraged to engage the services of Austrade when visiting markets where Tourism Australia did not have an active presence. > Under the Aussie Enthusiasts Program, Tourism Australia provided support for various Austrade events such as: Australia Week in Moscow (10-15 May 2005), Austrade Education Exhibitions, the Australian Schools Open Day in Vietnam (18-22 June 2005), Australia Wine Tasting in Malta (17 June 2005), and Australia Day Activities in Mexico. > The Latin American gateway on Tourism Australias consumer website (australia.com) was translated into Spanish, as was the Aussie Specialists online travel agents training program. > Partly as a result of working with Austrade in Mexico, Latin America has been elevated as a tourism market with potential and is now managed by Tourism Australias Los Angeles ofce. Tourism Australia worked with Qantas to tailor the Aussie Enthusiast Program for the airlines sales representatives and general sales agents in key markets of South America, Eastern Europe, South East Asia (Vietnam, Philippines), South Africa and North Africa.

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INTERNATIONAL MARKETS

The Americas
CANADA
OVERVIEW
Canada is an important contributor to Australian tourism, delivering around 98,000 visitors each year, and is also a top performer in terms of visitor length of stay and expenditure. Canadians take over 6 million long-haul vacations each year, searching the world for unique experiences. Australia has great appeal among this travel base, to the extent that one in two long-haul travellers include Australia on their list of ideal vacation destinations. However, lack of knowledge, combined with perceptions relating to time, cost and complexity make the road from aspiration to conversion a difcult one for Australia. The Canadian market is very price elastic and airfare is an important determinant of competitive market share. The market is seasonal, with the northern winter a key driver in overall travel. 2004/05 saw Tourism Australias strongest result in this market. 44 per cent of all enquiries to Tourism Australias marketing was converted within six months of response, compared with 31 per cent for the US. Highlights and results > The Australia. A Different Light co-operative campaign delivered 4,401 enquiries with a media efciency of $91 per lead. This was an excellent result on the heels of the successful Have You Ever campaign last year (1,890 leads at $166). > The co-operative Qantas Airpass product strategy was very successful, generating 82 per cent of all enquiries, with three times the media efciency and conversion power of traditional package advertising. > The Aussie Specialist Program was restructured with 25 travel agencies enlisted as Premier Aussie Specialists in Canada. The new program allows Tourism Australia to distribute consumer leads to its top retail converters, while at the same time providing a framework to measure customer acquisition and conversion through the retail network. > australia.com was Tourism Australias primary communication platform in North America. In the space of 12 months, the site experienced a dramatic increase in consumer trafc, lead generation and conversion power. > Tourism Australia-inuenced (VJP and proactive outreach) coverage of Australia reached a cumulative audience of 34.02 million Canadians.

UNITED STATES
OVERVIEW
The US holds enormous opportunity for Australian tourism, with an afuent consumer base of long haul travellers. Australias appeal among American travellers is unmatched by any destination in the world to the extent that one in two Americans include Australia on their list of ideal vacation destinations. The challenges in converting enquiries into bookings includes the depth of knowledge of Australian tourism experiences and perceptions of distance, time and cost. The key market objective for 2004/05 was to convince Americans to take their rst step towards realising their Australian vacation, recognising that they are (1) becoming fully independent travellers, (2) increasingly hard to reach through traditional media, and (3) want to buy not be sold to in the traditional marketing paradigm. The return on investment (ROI) for Tourism Australias marketing in the US for 2004/05 stands at 1:65 (for every $1 spent on marketing, $65 has been returned to the Australian economy in air and land sales). This is a signicant improvement on the marketing efciency of the Have You Ever campaign last year with a ROI of 1:48. Highlights and results > The Australia. A Different Light co-operative campaign set a high standard for Tourism Australias marketing in the US, delivering 33,216 enquiries with a media efciency of $173 per lead. > The co-operative Qantas Airpass product strategy contributed 76 per cent of all enquiries in the growing FIT market, with twice the media efciency and conversion power of traditional package advertising. > australia.com has matured into Tourism Australias primary communication platform in North America. In the space of 12 months, the site has witnessed a dramatic increase in consumer trafc, lead generation and conversion power. This accomplishment demonstrates the clout of a fully integrated marketing effort that combines a winning product strategy, big brand PR, and technology designed to enhance customer engagement, such as the interactive Stevo personality. In his rst month on the site, Stevo increased consumer click-throughs from the homepage by 400 per cent. > In January 2005, the Australia Week festival in Los Angeles garnered unprecedented exposure for Australia in the US, including six stories on national television entertainment and news programs to a combined audience of 10 million people. More than 6,000 consumers and trade attended Australia Week events. > The two-tier Aussie Specialist Program was launched in January 2005. Over 130 travel agents enlisted as Premier Aussie Specialists across North America. > Tourism Australia-inuenced (VJP and proactive outreach) coverage of Australia reached a cumulative audience of 139.5 million Americans.

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Asia
CHINA
OVERVIEW
Tourism growth from China remained strong during 2004/05 with Australia receiving 274,400 visitors, a 27 per cent increase over 2003/04. There was strong growth in incentive travel from China during 2004/05. Tourism Australia worked closely with large corporate organisations to secure incentive business including Amway China, that travelled to Australia with a group of 13,000 for a sales conference. The Approved Destination Status (ADS) scheme was expanded from Beijing, Guangdong and Shanghai to include six additional provinces: Chongqing, Hebei, Jiangsu, Shandong, Tianjin and Zhejiang. As a result of this expansion, citizens from nine provinces numbering 432 million people, are now allowed to travel to Australia. The Australian Government launched an enhanced ADS framework to demonstrate Australias commitment to the market and ensure that the quality of tourism experiences is upheld and maintained. The ADS changes were well supported by the China National Tourism Administration (CNTA), the Chinese Government agency responsible for developing, promoting and regulating Chinas inbound and outbound tourism industry. Highlights and results > The refreshed Brand Australia was launched in Beijing, Shanghai and Guangzhou in March 2005. A range of marketing activities were co-ordinated across the country and the campaign was well received by media and the trade. > The Qantas/Tourism Australia co-operative brand advertising campaign was launched in Shanghai in October 2004, and included both television and outdoor advertising. The campaign received a positive response and was followed by the re-instatement of Qantas ights between Australia and Shanghai. > Tourism Australia in conjunction with Visa launched the Visa Prefers Australia campaign, targeting the upper-end holiday market, including Visa card holders in Beijing, Shanghai and Shenzhen. > Tourism Australia co-ordinated the 8th annual Australian Travel Mission to China which attracted 53 sellers from 40 organisations (39 Australian companies and China Southern Airlines) and 194 buyers from 137 organisations (Chinese travel agents from the nine ADS regions). The mission provided the opportunity for Australian product suppliers to better understand the new and emerging source regions within China and to showcase Australian tourism product. > 137 travel agencies signed up to the Aussie Specialist Program in 2004/05 (19 per cent increase on the previous year). 640 registered agents (6 per cent increase) and 441 (86 per cent increase) fully qualied agents also signed onto the program. > 18 of Chinas most inuential travel journalists travelled to Australia for a month-long tour as part of the Visiting Journalists Program (VJP). Overall, the visit generated a total media value of $AUD9.9 million. Starting in Western Australia, the journalists from sohu.com, Lifestyle newspaper, Shanghai Morning Post and Guangzhou Daily covered six states and territories in 33 days. Oriental TVs Art and Entertainment Channel also lmed material for a 10 episode television series about travelling in Australia. The prime time series called Colours of Australia showcased Australias culture, lifestyle and tourism experiences. > 75 buyers from 63 organisations attended the Australian Tourism Exchange (ATE) in Perth this year. > Nine corporates and 13 agents attended the Team Australia Business Events Educational while 14 agents attended Dreamtime. > Tourism Australia co-ordinated 10 print and two broadcast media visits to Australia involving 33 journalists as part of the VJP. In addition, there were 714 media stories generated by Tourism Australias public relations activities.

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HONG KONG
OVERVIEW
Tourism growth from Hong Kong recovered strongly and is nearly back to record levels. Australia received 148,900 visitors in 2004/2005, a 13 per cent increase over 2003/04. A number of initiatives were launched during the year to maintain interest in Australia and drive visitors to discover new regions and experiences. Highlights and results > The new brand campaign, Australia. A Different Light, was launched in Hong Kong in March 2005. More than 23 key media attended including ATV, Bloomberg TV, RTHK, the International Herald Tribune, Newsweek, HK Economic Times and Action Asia. > Tourism Australia partnered with Qantas and the South Australian Tourism Commission in two co-operative brand campaigns that utilised billboards and trackside posters at major train stations, product information on australia.com, an e-newsletter distributed to 20,000 consumers and print advertising in key publications. Three other co-operative campaigns were sponsored with Cathay Pacic Holidays. > The 7th Team Australia Business Events Educational (TABEE), held in Hong Kong in March, brought together 80 Asian corporate travel agents and 40 Australian business tourism suppliers. To date, the event has generated nine pieces of conrmed business, accounting for almost 2,500 passengers to Australia. > Tourism Australias marketing activities in the incentive sector generated seven pieces of conrmed business (departures in 2004/05) and a total of 1,170 passengers. > Agent participation in the Aussie Specialist Program (ASP) increased by 62 per cent over the previous year, with the number of graduates rising dramatically by 256 per cent. Twenty-nine agencies and 191 agents have now joined the program in Hong Kong with 121 ASP graduates. > The Hon Fran Bailey MP, Minister for Small Business and Tourism made her rst ofcial visit to Hong Kong to meet with key trade, industry and media representatives. The visit further conrmed Australias commitment to this important market and the region.

INDIA
OVERVIEW
This nancial year saw visitors from India reach 59,200 an increase of 10 per cent over 2003/04, and the highest rate ever achieved. The Aussie Specialist Program continued to build the distribution network in the two key markets of Mumbai and Delhi as well as other secondary markets. Tourism Australia continued to work with other Australian Government agencies including the Department of Immigration, Multicultural and Indigenous Affairs (DIMIA) to facilitate faster visa application and approval for Aussie Specialists clients. A key objective for 2004/05 was to position Australia as an out of the ordinary holiday destination while ensuring the relevant tourism products were available through the primary distribution channel. Highlights and results > Brand Australia was successfully launched in March 2005. Eightysix media representatives from Delhi and Mumbai attended the event, which resulted in 70 press articles with a media value of $AUD140,000. > NDTV, Indias leading news channel, broadcast live from the Gold Coast and Sydney for its NightOut lifestyle program. The broadcast showcased aspects of Sydney and the Gold Coast. There were a total of 23 episodes of 30 minutes recording an airtime value of more than $AUD2.9 million. > 357 travel agents from 103 agencies enrolled in the Aussie Specialist Program, an increase of 79 per cent and 69 per cent respectively over 2003/04. Of these, 152 agents completed the program, an increase of 31 per cent on the previous year. This exceeded the target set at the beginning of the scal year of 220 individual registered agents and 60 agencies. > A very successful India Travel Mission was held in Goa in September 2004. The event was attended by 25 Australian suppliers and more than 100 Indian travel agents. > In September 2004, Qantas resumed operations in India with nonstop direct ights between Mumbai and Sydney. Tourism Australia and Qantas launched a co-operative brand campaign to capitalise on services in August/September 2004 and February/April 2005. > Tourism Australia co-ordinated a booth at the Celebrate Vivaha 2004 a bridal show in Delhi which attracted 350 couples who registered an interest in honeymooning in Australia. > The interactive promotion with Barista Coffee using mobile phones, recorded 2,507 responses during the fortnight-long campaign in March/April 2005.

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KOREA
OVERVIEW
The Korean market continued its growth in 2004/05 delivering 237,300 visitors to Australia, a 10 per cent increase over 2003/04. The Australian Government demonstrated its commitment to the market with the launch of an action plan called Korea: Building the Framework for Sustainable Tourism, a strategic framework for government and industry to identify opportunities and support sustainable tourism growth in the Korean market. The plan was endorsed by the Korean Government. Aviation capacity continued to prove challenging in Korea and Tourism Australia worked closely with airline partners to address this issue. Highlights and results > Tourism Australia launched a fully integrated marketing campaign in March called the Best of Australia. The campaign was targeted at young FIT travellers and showcased a range of Australian experiences including food and wine, unique wildlife and cosmopolitan cities. As part of the campaign, Tourism Australia utilised Asias largest portal site daum.net to promote itineraries and touring routes. The website received 5,336,522 visitors. > Australia was the focus of the opening episodes of a popular drama series shown in Korea. More than 3.6 million viewers tuned in to the drama Im sorry, I love you. In response to the popularity of the series, Asiana Airlines blocked 7,000 seats from Korea to Melbourne via Sydney between March to June. > The launch of the Aussie Specialist Program in October 2004 generated signicant interest among the travel trade with 174 agents from 91 travel agencies now registered in the program. > Seven major corporate companies held incentive visits to Australia with a total of 3,246 passengers. > Tourism Australia successfully worked with Korean Air and trade partners to secure six charter ights to Cairns between December 2004 and January 2005. The nal load factor was 93 per cent (1,646 occupied seats out of a total 1,776 seats). The ights enabled Tourism Australia to introduce new destinations to Korean travellers including Cairns and the Great Barrier Reef. > Major highlights from VJP visits included top Korean newspaper JoongAng Ilbo reporting on tennis during the 2005 Australian Open tennis tournament and Elle Korea covering high-prole stars from the Korean drama Non Stop visiting Melbourne. Footage was broadcast on popular Korean music and entertainment programs including m.net and MBC Session TV Entertainment. The coverage coincided with a seven-day tour package to Sydney and Melbourne.

MALAYSIA
OVERVIEW
Australia received a total of 169,000 visitors from Malaysia during 2004/05, a drop of four per cent over the same period last year. However, the market increased by three per cent during the last six months of the nancial year. Malaysia remains one of the key Asian markets for Australia with a high level of repeat visitation. Highlights and results > To support the brand campaign and My Australia Challenge, Tourism Australia worked with all State and Territory Tourism Organisations to develop The Best of Australia packages targeted at self-drive and family segments. Eleven Aussie Specialist agencies participated in the campaign, and 1,934 passengers conrmed bookings against a target of 1,000. > A 30-second television commercial featuring Delta Goodrem aired on terrestrial and satellite stations and a 60-second version was screened at major cinemas around Malaysia. > Brand Australia was launched in February 2005 with 64 media representatives attending the event. The launch resulted in approximately $AUD150,000 worth of coverage. > 210 travel agents from 35 agencies enrolled in the Aussie Specialist Program (ASP) in 2004/05, an increase of 51 per cent and 14 per cent respectively. Of these, 68 agents have fully completed the program, an increase of 62 per cent on the previous year. > The rst ever all-Australian broadcast initiative in Malaysia was coordinated in partnership with leading channel NTV 7 and State and Territory Tourism Organisations. The seven-episode reality television program delivered a media value of $AUD2,604,000. Print supported the broadcast initiative and coverage was estimated at an additional $AUD250,000. > Australia had a signicant presence at the annual Malaysian Association of Tour and Travel Agents (MATTA) International Travel Fair and the Malaysian Airlines Travel Fair which attracted 72,000 and 83,500 visitors respectively.

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SINGAPORE
OVERVIEW
Australia received a total of 267,500 visitors from Singapore in 2004/05, an increase of six per cent over the previous year. Singapore continued to be one of Australias most important markets for arrivals with high repeat visitation. Tourism Australias activities were focused on refreshing Australias prole to entice repeat visitors and broaden Australias appeal. Highlights and results > In conjunction with the Australian High Commission and Australian Trade Commission, Tourism Australia organised Celebrate Australia 2005, a month-long promotion showcasing Australian culture, lifestyle and creativity. A total of 22 consumer events were staged, and more than one million Singaporeans visited the Australia Brand Showcase at Rafes City Shopping Centre. The Celebrate Australia promotion won the silver award for Best Event Marketing at the 2005 Promotion Marketing Asia Pacic Awards. > The Australia. A Different Light campaign was launched, with brand tracking results showing that Australias brand salience and appeal improved signicantly. Australia is now the top ranked destination in terms of preference, consideration and aspiration in Singapore. > A total of 130 Aussie Specialist agents were registered as at June 2005. Seventy two were fully qualied Aussie Specialists, a 20 per cent increase over the previous year. > Tourism Australia and State and Territory Tourism Organisations jointly produced Wish You Were Here a nine-episode travelogue for Singapores highest-rating English television channel, MediaCorps Channel 5. Extensive print and broadcast coverage was generated by this program, with an equivalent advertising value of around $AUD10.5 million. > 10 print and two broadcast media visits to Australia, hosting 25 journalists, were conducted in 2004/05. These visits generated 144 media stories, a 66 per cent increase over 2003/04. > Tourism Australia organised its rst seminar aimed at schools and education specialists to raise awareness of unique Australian experiences and increase Australias share of the growing educational and study tour segment.

TAIWAN
OVERVIEW
The outbound market in Taiwan remained steady in 2004/05. Arrivals reached 103,800 which were on par with 2003/04. However, the six months to June 2005 saw an increase of 10 per cent over the same period of the previous year. Australia remained a popular incentive destination and Tourism Australia activities focused on further growing this key segment. Highlights and results > There was an unprecedented 660 per cent growth in the number of agents registering in the Aussie Specialist Program (ASP) and a 244 per cent growth in the number of agents completing the training modules. There are currently 165 agents from 38 agencies registered and 40 Aussie Specialists from 12 agencies have completed the ASP training modules. > Marketing activities aimed at the incentive sector generated ve major pieces of conrmed business with a total of 5,650 passengers. Several smaller pieces of conrmed business accounted for 1,340 visitors. > Four corporates and six agents participated in the Team Australia Business Events Educational (TABEE) and six agents attended Dreamtime. Thirteen delegates from 12 agencies attended the Australian Tourism Exchange in Perth along with journalists from TTN Taiwan and World Travel Weekly. > As part of the Visiting Journalists Program (VJP), coverage was generated in major publications including AZ Fashion Travel and Apple Daily.

THAILAND
OVERVIEW
Thailand continued to show consistent growth with a total of 79,300 visitors arriving in Australia in 2004/05. This represented a one per cent increase over 2003/04. Highlights and results > The Aussie Promotion a consumer print campaign to help raise awareness of Aussie Specialist agents and new Australian products resulted in increased trafc to australia.com with 1,200 bookings taken and more than 3,000 enquires directed to Aussie Specialist agents. > Tourism Australia helped to secure business from a number of incentive groups including American International Assurance that sent 3,000 passengers to Sydney in 2004/05. > The Aussie Specialist Program (ASP) now has 52 companies and 84 qualied agents. Thirty-three agents participated in the ASP familiarisation in 2004/05. > Fourteen delegates attended the Australian Tourism Exchange (ATE) in Perth, six agents attended Dreamtime and ve agents attended the Team Australia Business Events Educational. > Five print media participated in Tourism Australias trade events generating publicity to the value of around $AUD345,000.

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Japan
OVERVIEW
Japan is one of Australias top inbound tourism markets, recording a total of 700,800 visitors during 2004/05, an increase of two per cent over 2003/04. It was also the second largest market in terms of real economic value in 2004, generating $2.06 billion in revenue. This travel market is changing rapidly from mainstay package tours to fully independent travel (FIT) and experience-driven travel. To capitalise on this signicant change, the Japanese travel industry has adopted a more aggressive approach to direct consumer marketing and online distribution. The Japanese outbound market continues to improve and is increasingly competitive in the New 50s/Silvers (Jukunen) segment. Tourism Australias change in marketing focus from Young Ofce Ladies (YOLs) to Ofce Ladies (OLs) and Honeymooners segments continued, as did Tourism Australias focus on school excursion programs. Increased capacity and promotional activity by both Japan Airlines and Qantas provided more co-operative marketing opportunities. Highlights and results > The Australia. A Different Light brand campaign was launched in April 2005. A TV ad featuring Delta Goodrem aired in four key regional markets and was supported by print advertising and online activities. According to tracking results, demand rose from 14 per cent in April to 21 per cent in June. > The Tourism Australia/Japan Airlines Slow Stay Australia campaign reected the new Brand Australia. It was the rst time the Japanese national carrier used destination branding in its advertising. The campaign featured in major national magazines, train station posters, and online promotions. In June the campaign shifted to focus on the fast emerging FIT market by using innovative mobile phone technology that enabled consumers to access a dedicated website. > A co-operative brand campaign with Qantas ran from March 2005 and included print ads in major newspapers as well as outdoor and transit advertising. A total of 2,089 Apex fares were booked by Qantas from April to June, an increase of 18 per cent over the same period of the previous year and 7,000 requests for Tourism Australias travellers guide were received, the highest level recorded from a brand campaign in this market. > A new community site My Style Australia on australia.com was launched in October 2004, targeting women in their 20s and 30s. The objective was to build the intention to travel to Australia by sharing consumers experiences. Following the launch, site usage dramatically increased, reaching a record high in May 2005 of 991,141 page views, a 167 per cent increase compared to September 2004. > Tourism Australia launched the refreshed Brand Australia in Japan in April 2005. More than 70 media and 100 key industry partners attended the event. A highlight of the event included the screening of a video featuring Japanese celebrities such as NASA Astronaut Mamoru Mohri speaking about their favourite Australian experiences. > In November 2004, Tourism Australia and the Northern Territory Tourist Commission (NTTC) hosted key members of the Japan Australia Advisory Group (JAAG) to the Territory. JAAG members are the chief executives from leading Japanese travel companies, and are responsible for selling more than 70 per cent of all travel from Japan to Australia. The success of the tour strengthened both parties commitment to build outbound travel to Australia and achieve Tourism Australias aim of one million Japanese visitors annually by 2010. The Japan Association of Travel Agents (JATA) has launched a similar program aimed at achieving 20 million outbound travellers from Japan by 2007. Tourism Australia is working with JATA to achieve this goal. > The Visiting Journalists Program (VJP) produced 105 print and television articles. The estimated editorial coverage is valued at over $AUD95.5 million. A highlight was the publication of a 124-page magazine FIGARO Voyage Australia. The magazine, supported by Japan Airlines, was a special edition of Japans popular lifestyle publication FIGARO which has a circulation of 50,000 copies, and had a publicity value of approximately $AUD1.1 million.

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Gulf Countries
OVERVIEW
Tourism Australia activity in the Middle East is concentrated in the Gulf Co-operative Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, Kingdom of Saudi Arabia and the United Arab Emirates. Other Middle East countries continue to be serviced through the Aussie Enthusiast Program which is a joint initiative between Tourism Australia and Austrade. Over the past twelve months Australia received 35,820 visitors from this region, an increase of 20 per cent compared with 2003/04. The largest number of travellers came from the United Arab Emirates and the Kingdom of Saudi Arabia. A key objective for 2004/05 was to continue building awareness of Australia as a desirable long-haul travel destination by proling Australian products to enhance Australias unique attractions. During the year Tourism Australia worked closely with the travel trade throughout the Gulf Countries to stimulate travel to Australia. The appointment of a Dubai-based Sales Manager to service the needs of travel agents enhanced activities within this burgeoning market. Highlights and results > A major billboard campaign was undertaken over a two-month period in Bahrain, Kuwait, Dubai, KSA and Qatar. A substantial newsprint campaign was also undertaken in these markets, and Australia was featured as a liftout supplement in six key publications. > In conjunction with STOs and airlines, Tourism Australia hosted the inaugural travel agents training workshop, Yinala. The event was attended by over 60 agents from across the Gulf region and 28 Australian suppliers. The event was designed to educate travel agents about Australia, introducing agents to new experiences and destinations. > More than 500 travel agents attended roadshows in Kuwait, Bahrain, Doha, Abu Dhabi and Muscat with eighteen Australian product suppliers providing training opportunities. > Tourism Australia in partnership with other State Tourism Organisations, Qantas and 18 Australian suppliers attended the Arabian Travel Market (ATM) from 3-6 May 2005. The event was visited by over 17,000 people, including 7,000 trade visitors and over 8,000 consumers. > Over 35,000 English and Arabic Travellers Guides were distributed to consumers and travel agents. This was the rst time Tourism Australia produced the publication in Arabic. > A range of Australia-branded marketing material has been produced to support travel agents throughout the Gulf Countries.

New Zealand
OVERVIEW
Australia continues to hold a strong share of New Zealands outbound travel, with 51 per cent of the total market. The three main sources of travel to Australia came from Auckland, Wellington and Canterbury, with the largest participation coming from the 30-49 age group (22 per cent). Visitors from New Zealand totalled 1.08 million in 2004/05, an increase of nearly 17 per cent on 2003/04. This important market was ranked fourth overall in spend, with over $AUD1.7 billion of real economic benet realised. With more carriers servicing the Tasman, capacity increased to 280,000 seats. This, combined with load factors averaging 70 per cent, strongly facilitated consumer travel to Australia. Highlights and results > Australias brand position in New Zealand is very strong with high levels of awareness (65 per cent) and intention (20 per cent). Nearly half of all New Zealanders indicate that Australia is a place that they would go to in the next two years, placing Australia well ahead of its nearest competitors. > Tourism Australias Marvellous Deals to Australia co-operative campaign was launched on 15 May 2005. The campaign was developed in partnership with Qantas and involved a $NZ500,000 spend via print and radio mediums. The campaign focused on gateway and beyond destinations and yielded 56,410 room nights, an increase of nine per cent compared to the 2004 Discover Australia Now campaign, which generated 51,711 room nights. > Oztalk, New Zealands annual retail training program, was held in Auckland from 31 March to 2 April 2005. In total, 328 agents and 225 products participated in the two-day tradeshow. > A total of 15 media from New Zealand travelled to Australia with the Visiting Journalists Program (VJP) in 2004/05. Total VJP publicity tracked during this period reached $AUD6 million. > The new brand campaign, Australia. A Different Light, was launched, generating signicant media coverage.

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UK & Europe
FRANCE
OVERVIEW
France generated $AUD283 million in total expenditure to Australia in 2004. The introduction of the Working Holiday Maker (WHM) visa in early 2004 was an important driver for the youth market in France and was a key area of focus for activity during the nancial year. Tourism Australia identied three key segments for the French market: Youth, Active Explorers and Business Tourism. A key strategy for 2004/05 was to capitalise on Australias brand communication activity to strengthen Australias competitive brand position in France. Highlights and results > Frances main campaign ran in March and April 2005 in press, online and outdoor media. This included full-page colour ads in youth and student press. The campaigns main call to action was australia.com, recording a total of 175,892 hits. > The WHM visa campaign effectively targeted the youth market with innovative media that engaged them throughout their daily routine online at home/university; press in youth magazines; outdoor in university campuses; and ambient in bars/cafes. > In order to best penetrate a crowded marketplace, there was tactical use of innovative media on bistro tables, beer mats and posters in universities throughout France. The campaign established the WHM visa as the key to turn desire into action and a dedicated banner on the home page of australia.com was accessed 29,065 times. Trafc to the French section of australia.com increased by 50 per cent during the campaign period. > Tourism Australia and Qantas ran a co-operative campaign in February and March 2005 and used a mix of radio, press and online media. This campaign drove consumers from preference to intention to travel to Australia, with Qantas reporting a signicant increase in bookings. > By the end of the nancial year there were 222 qualied Aussie Specialist agents, and a total of 25 agent training sessions attracted 1,103 participants. > French consumers love of Aboriginal culture was enhanced by creative press and online imagery, and Aboriginal music on radio.

GERMANY/SWITZERLAND
OVERVIEW
The German market was Australias second most lucrative European market in 2004/05 generating $AUD878 million in total visitor expenditure. There were limited signs of general economic recovery in Germany, yet growth in the travel sector expanded at a far greater rate. Germany remained Europes number one tourist generator of outbound travel with over 45 million trips made in 2004. German visitors to Australia have a comparatively high yield with a higher than average length of stay. This supports the strategic focus of encouraging growth by channelling activities through two leading market segments: SelfChallengers, and Comfort and Learning. The launch of the new Brand Australia included a major advertising campaign around the proposition of Australia, a twist on the expected. The challenge was to strengthen the emotional appeal by reframing perceptions of Australia. Co-operative campaigns succeeded in raising the sense of urgency and improved levels of conversion. The relocation of the Tourism Australia and State and Territory Tourism Organisations teams in Frankfurt and Munich helped unite efforts under a consolidated Destination Australia Partnership banner. Highlights and results > australia.com remained the main call to action for Tourism Australia campaigns, recording a total of 312,102 sessions for the scal year with trafc rising by 18 per cent during 2004. > The marketing objective of increasing awareness and strengthening the emotional appeal of Australia was achieved. Brand tracking results indicated that 58 per cent of those surveyed recalled the overall campaign, 73 per cent thought about or discussed a holiday to Australia and 51 per cent actively sought further information. > Advertising on IMAX cinema was conducted, dramatising the breadth and scale of Australias unique landscapes. Outdoor advertising on giant banners was also used. > Relationships were developed with the trade through familiarisation trips with a total of 187 participants and training sessions at six events with a total of 1,450 participants. By the end of the nancial year there were 1,273 qualied Aussie Specialist agents in Germany. > On average, 41 articles per month were generated in leading publications, such as the six-page advertorial Taste the Difference of Australia with Wolf Blass and Singapore Airlines. > In January 2005, Australia was featured on Reisezeit, a primetime breakfast program in Germany, Switzerland and Austria with an audience of 6.83 million viewers. As a result, 20,000 consumers entered competitions, which were the main call to action of the coverage. > In November 2004, Switzerlands only travel program, Einfach Luxuris (Simply Luxurious) featured Tasmania in a 50 minute segment. The program was viewed by around 700,000 people and had a media value of $AUD800,000.

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UK & Europe
ITALY
OVERVIEW
Australia continues to hold strong appeal amongst Italians, with one in ve potential travellers listing Australia as a preferred holiday destination. Italy had the third highest average expenditure per person ($AUD6,488) and visitor spend from Italy totalled $AUD294 million in 2004. The majority (67 per cent) of visitors were travelling to Australia for the rst time, compared to the European average of 53 per cent. Tourism Australia continued to pursue three key segments in the Italian market: Active Independents (Young and Older), Active Youth and Honeymoon. Over the last six years, Italian honeymooners have been Europes largest travellers, averaging around 5,583 trips per year. Tourism Australia increased its focus on the Italian market between 2003/04 and 2004/05, injecting additional funds to revitalise the market through increased activity. Italy continued to offer good potential as the worlds fth largest outbound tourist-generating market (all destinations). Highlights and results > australia.com remained the main call to action for Tourism Australia campaigns, recording a total of 130,776 sessions for this scal year. > The launch of the new Aussie Specialist Program (ASP) site in March 2004 was a key milestone in the training of agents throughout Italy. By the end of the nancial year there were 177 qualied ASP agents. In addition a total of six training sessions were held with 375 participants. > The Brand Australia advertisement featuring Delta Goodrem was shown in open-air cinemas. Brand tracking revealed that 11 per cent of total respondents had seen this ad, an excellent result considering it was only shown in cinemas. Brand advertising also featured in magazines, online, on billboards (in Milan) and on the outside of Jumbotrams (in Rome). > Tourism Australia also ran two co-operative campaigns with Qantas and Singapore Airlines. Both involved online and radio advertisements, generating additional bookings to Australia. > Several key pieces of media coverage were generated through the Visiting Journalists Program (VJP). Two highlights saw Australia featured in dedicated issues of Qui Touring (circulation 431,648) and Cond Nast Traveller (circulation 56,457).

NORDIC & NETHERLANDS

OVERVIEW
In 2004, visitors from the Nordic region (primarily Sweden and Denmark) achieved a total expenditure of $AUD477 million, and the Netherlands $AUD259 million. The Netherlands continued to be the worlds number one market for dispersal in Australia with 56 per cent of nights spent outside of major gateways. The strategy for these regions was to offer support for industry initiatives. This was primarily channelled through the distribution system and by implementing a successful public relations strategy, while online methods were an effective way to target the market. For both regions the key target segments were Young Independents and Backpackers reecting both the high percentage of visitors aged from 15 to 24 years and the popularity of the Working Holiday Maker (WHM) visa scheme. Highlights and results > In the Nordic Region, Tourism Australia supported ve consumer publications and two travel trade publications on the Visiting Journalists Program (VJP). Contacts were also re-established with a range of travel and lifestyle media in both Sweden and Denmark. > In the Netherlands the VJP supported a series of six programs lmed in South Australia and the Northern Territory, for the popular television series Wie is de Mol. Another VJP highlight was four features running on Yorin Travel TV with coverage of Western Australia and the Northern Territory. > A highly successful online advertising campaign ran in the Netherlands, with the aim of increasing awareness of the WHM visa while driving responses to a micro site on australia.com. This included media placements on google.com and msn.com and web layer ads on key youth websites. These initiatives collectively recorded over 1.5 million impressions. > 26 agent training sessions were conducted across the region reaching 790 participants. 152 travel agents successfully completed the Aussie Specialist Program.

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UK & Europe
UK & IRELAND
OVERVIEW
The United Kingdom (UK) continued to be Australias best performing long-haul market, generating $AUD3,438 million in 2004. Marketing campaigns were successfully launched across a broad range of media, recording excellent exposure and enquiry numbers. These initiatives were well-received by the industry and were reinforced through a comprehensive agent training program. Many milestones were achieved in the UK and Ireland during 2004/05 with new initiatives undertaken and high standards established for the future. A new collective approach was reected in the Destination Australia Partnership (DAP), which united Tourism Australia and State Tourist Ofces to maximise effectiveness in marketing the new Brand Australia. Tourism Australia also secured widely visible media coverage, a high rate of consumer response and strong industry satisfaction. Highlights and results > The Destination Australia Partnership (DAP) was moved to one central ofce, in December 2004. The new DAP formation involved establishing new departments and functions and marked a key milestone in the global promotion of Australia. > australia.com remained the main call to action for Tourism Australia campaigns, recording a total of 680,957 sessions for the scal year (661,018 for UK, 19,939 for Ireland). While trafc for 2004 was similar to levels in 2003, the rst three months of 2005 saw a 25 per cent increase on the same period in the previous year. > The Partnership Development Program continued to endorse trade relationships by hosting 12 familiarisation trips (11 in UK, 1 in Ireland) which attracted 256 participants (241 in UK, 15 for Ireland). An unprecedented 13 new tour operators and 19 Aussie Specialists were escorted to Australian Tourism Exchange (ATE) 2005. The relaunch of an improved ASP site enabled more online interactions and provided training for a total of 2,286 agents (1,843 in UK, 443 in Ireland) during the year. > On average, 54 media articles per month were generated, and an advertorial was secured in Cond Nast Traveller featuring the Taste Australia event in partnership with Turquoise Holidays. > Tourism Australias advertising campaign in the UK ran from September 2004 to January 2005, featuring the Delta Goodrem advertisement across television, cinema, outdoor, radio and press. Advertising via cinema gave Tourism Australia a unique marketing opportunity as no other tourism organisation had advertised using this medium over the past 12 months. The campaign focused on the key segments of Self Challengers and Comfort Adventurers. > The Delta Goodrem television advertisement achieved a 62 per cent recognition rate. Tourism Australias brand tracking indicated that 85 per cent of responses recalled the campaign in detail, 60 per cent discussed and thought about travelling to Australia and 42 per cent actively sought information through channels such as australia.com. > A series of effective co-operative campaigns with key airline partners continued during 2004/05. The Qantas campaigns worked to convert strong desire to travel into bookings. > Tourism Australia commissioned celebrity photographer Rankin, to capture the spirit of Australia in a photographic exhibition in central London. Singapore Airlines co-sponsored the exhibition, which was launched at Sony Ericsson Proud Galleries, on 25 January 2005. The Australia Day launch was attended by Rankin, UK media, the Minister for Small Business and Tourism the Hon Fran Bailey, and other high-prole guests including singer Delta Goodrem and chef Ben ODonaghue. > The Rankin exhibition was recreated along the travellators at Waterloo underground station reaching an additional 546,000 people. An online gallery was set up at australia.com, attracting a further 7,829 visitors. The coverage from this campaign reached an estimated 8,309,628 people with an equivalent advertising value of 434,776. > BBC Holiday visited Australia as part of the Visiting Journalists Program (VJP) in November 2004. The group travelled from Perth to Sydney taking in Kalgoorlie, Coober Pedy, Adelaide and Echuca. The visit resulted in two segments of seven minutes which were broadcast in early February to 4.5 million viewers. The estimated publicity value from these broadcasts was 1.3 million. > Tourism Australia supported a visit by GMTV in January 2005 which generated two, ten minute lms featuring Sydney and Byron Bay. The lms were presented by Duncan James from the hugely popular boy band Blue and were broadcast to an audience of 11 million in March 2005. GMTV is the UKs leading breakfast program featuring a mix of news, lifestyle, current affairs features and celebrity interviews. > Tourism Australias UK operation was voted the best National Tourism Ofce in the Travel Trade Gazette Awards, a testament to its professionalism and the consolidated approach of the UK team.

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FINANCIAL REPORT

The audit opinion is formed on the basis of these procedures, which included: > examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the nancial statements; and > assessing the appropriateness of the accounting policies and disclosures used, and the reasonableness of signicant accounting estimates made.

Independent audit report

To the Minister for Small Business and Tourism

INDEPENDENCE
In conducting the audit, I have followed the independence requirements of the Australian National Audit Ofce, which incorporate the ethical requirement of the Australian accounting profession.

SCOPE
The nancial statements and directors responsibility The nancial statements comprise: > Statement by Director; > Statements of Financial Performance, Financial Position and Cash Flows; > Schedules of Commitments and Contingencies; and > Notes to and forming part of the Financial Statements of Tourism Australia for the year ended 30 June 2005. The directors of Tourism Australia are responsible for preparing the nancial statements that give a true and fair view of the nancial position and performance of Tourism Australia, and that comply with Finance Ministers Orders made under the Commonwealth Authorities and Companies Act 1997, accounting standards and other mandatory nancial reporting requirements in Australia. The directors of Tourism Australia are also responsible for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the nancial statements.

AUDIT OPINION
In my opinion, the nancial statements of Tourism Australia: (a) have been prepared in accordance with the Finance Ministers Orders made under the Commonwealth Authorities and Companies Act 1997; and (b) give a true and fair view of Tourism Australias nancial position as at 30 June 2005, and its performance and cash ows for the year then ended, in accordance with: (i) the matters required by the Finance Ministers Orders; and (ii) applicable accounting standards and other mandatory nancial reporting requirements in Australia.

Australian National Audit Ofce

AUDIT APPROACH
I have conducted an independent audit of the nancial statements in order to express an opinion on them to you. My audit has been conducted in accordance with the Australian National Audit Ofce Auditing Standards, which incorporate the Australian Auditing and Assurance Standards, in order to provide reasonable assurance as to whether the nancial statements are free of material misstatement. The nature of an audit is inuenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive, rather than conclusive, evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected. While the effectiveness of managements internal controls over nancial reporting was considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls. I have performed procedures to assess whether, in all material respects, the nancial statements present fairly, in accordance with Finance Ministers Orders made under the Commonwealth Authorities and Companies Act 1997, accounting standards and other mandatory nancial reporting requirements in Australia, a view which is consistent with my understanding of Tourism Australias nancial position, and of its performance as represented by the statements of nancial performance and cash ows.

P Hinchey Senior Director Delegate of the Auditor-General Sydney 12 August 2005

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Tourism Australia
STATEMENT BY DIRECTORS
In our opinion, the attached nancial statements for the year ended 30 June 2005 are based on properly maintained nancial records and give a true and fair view of the matters required by the Finance Ministers Orders made under the Commonwealth Authorities and Companies Act 1997. We are also satised that Tourism Australia has in place appropriate fraud control mechanisms that meet the needs of Tourism Australia and comply with Australian Government guidelines for this nancial year, including annual report requirements. In our opinion, at the date of this statement, there are reasonable grounds to believe that Tourism Australia will be able to pay its debts as and when they become due and payable.

STATEMENT OF FINANCIAL PERFORMANCE

For the year ended 30 June 2005 2005 $000

REVENUE
Revenue from ordinary activities Revenue from Government Advertising Goods and Services Contributions Interest Net foreign exchange gains Revenue from sale of assets

Notes

4a 4b 4c 4d 4e 4f 4g 4h

138,374 10,781 1,515 13,546 3,455 958 45 1,128 169,802

Tim Fischer Chairman 12 August 2005

Scott Morrison Managing Director 12 August 2005

Other Revenues Revenue from ordinary activities

EXPENSE
Expenses for ordinary activities Employees Suppliers Depreciation and amortisation Write-down of assets Value of assets sold Other Expenses Expenses from ordinary activities Net prot Net credit/(debit) to asset revaluation reserve Total revenues, expenses and valuation adjustments recognised directly in equity Total changes in equity other than those resulting from transactions with the Australian Government as owner
The above statement should be read in conjunction with the accompanying notes.

5a 5b 5c 5d 4g 5e

27,904 130,595 1,443 136 380 5,027 165,485 4,317 53 53 4,370

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STATEMENT OF FINANCIAL POSITION

As at 30 June 2005 2005 $000 16,768 8,348 2,141 149 27,406

STATEMENT OF CASH FLOWS

For the year ended 30 June 2005 2005 $000 22,835 138,374 3,077 164,286

ASSETS
Financial assets Cash Receivables Other Inventories Total nancial assets Non-nancial assets Investments Plant and equipment Intangibles Total non-nancial assets Total assets

Notes 6a 6b 6c 6d

OPERATING ACTIVITIES
Cash received Goods and services Appropriations Interest Total cash received Cash used Employees Suppliers Other GST paid to ATO Total cash used Net cash from operating activities

Notes

6e 7a & b 7a & b

110 1,606 3,978 5,694 33,100

(26,993) (125,804) (5,027) (63) (157,887) 10a 6,399

LIABILITIES
Provisions Employees Total provisions Payables Suppliers Other payables Total payables Total liabilities Net assets 8a 4,569 4,569

INVESTING ACTIVITIES
Cash received Proceeds from sales of property, plant and equipment Total cash received Cash used Purchase of property, plant and equipment Purchase of software and intangibles Total cash used Net cash (used by) investing activities 45 45

8b 8c

13,388 1,059 14,447 19,016 14,084

(954) (2,562) (3,516) (3,471)

FINANCING ACTIVITIES
Cash Received Appropriation Contributed equity Total cash received Net cash from nancing activities Net increase in cash held Cash at the beginning of the reporting period Effects of exchange rate changes on cash Cash at the end of the reporting period
The above statement should be read in conjunction with the accompanying notes.

EQUITY
Parent entity interest Contributed equity Reserves Accumulated surplus Total equity Current assets Non-current assets Current liabilities Non-current liabilities
The above statement should be read in conjunction with the accompanying notes.

9 9 9

827 684 12,573 14,084 27,406 5,694 17,751 1,265

549 549 549 3,477 12,333 958 16,768

10b

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SCHEDULE OF COMMITMENTS
As at 30 June 2005 2005 $000

SCHEDULE OF CONTINGENCIES
As at 30 June 2005

Notes

BY TYPE
Other commitments Operating leases 1 Other commitments 2 Total other commitments Commitments receivable 3 Net commitments 19,724 28,916 48,640 (330) 48,310

There were no known contingencies as at 30 June, 2005.

The above schedule should be read in conjunction with the accompanying notes.

BY MATURITY
Operating lease commitments One year or less From one to ve years Over ve years Total operating lease commitments Other Commitments One year or less From one to ve years Total other commitments Commitments receivable 3 Net commitments
NB: Commitments are GST inclusive where relevant. 1 2 3 Operating leases comprise leases for ofce accommodation and computer leases. Other commitments comprise amounts payable under project agreements in respect of which the recipient is yet to either perform the services required or meet eligibility conditions. Commitments receivable comprises GST recoverable.

4,846 10,874 4,004 19,724

17,873 11,043 28,916 (330) 48,310

The above schedule should be read in conjunction with the accompanying notes.

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

Note 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Description Summary of signicant accounting policies Adoption of Australian Equivalents to International Financial Reporting Standards from 2005-2006 Economic dependency Operating revenues Operating expenses Financial assets Non-nancial assets Provisions and payables Equity Cash ow reconciliation Directors remuneration Remuneration of ofcers Remuneration of auditors Average stafng levels Financial instruments Contingent liabilities and assets Reporting of outcomes

Page 85 92 94 95 97 98 101 103 104 105 106 107 107 107 108 111 111

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.1 ESTABLISHMENT OF TOURISM AUSTRALIA Tourism Australia (TA) was established under section 5 of the Tourism Australia Act 2004 (the TA Act) on 1 July 2004. TA brings together the Australian Tourist Commission (the ATC), the domestic marketing body See Australia, the Bureau of Tourism Research (BTR), and the Tourism Forecasting Council (TFC). All business functions and operations of the above entities continued without interruption under the umbrella of TA. The Australian Tourist Commission Act 1987 was repealed under section 5 of the Tourism Australia (Repeal and Transitional Provisions) Act 2004 (the Transitional Provisions Act). The Transitional Provisions Act also makes TA the legal successor to the above entities, excluding See Australia in relation to all of their assets, liabilities, contracts and employees. Transfer of assets and liabilities Part 3 Section 6 (2) of the Transitional Provisions Act states, on the proclamation day: (a) the assets and liabilities cease to be assets and liabilities of the ATC and become assets and liabilities of TA without any conveyance, transfer or assignment; and (b) TA becomes the ATCs successor in law in relation to the assets and liabilities immediately after they become assets and liabilities of Tourism Australia. Part 4 of the Transitional Provisions Act states that assets and liabilities of BTR become assets and liabilities of TA under a declaration in writing by the Minister. Part 5 of the Transitional Provisions Act states that assets and liabilities of TFC become assets and liabilities of TA under a declaration in writing by the Minister. Transfer of staff Section 12 of the Transitional Provisions Act provides that each person employed under section 42 of the Australian Tourist Commission Act 1987 immediately before the proclamation day ceases to be employed by the ATC on the proclamation day and is taken to have been engaged as an employee of Tourism Australia under section 55 of the Tourism Australia Act 2004 on that day. There is no specic provision for transfer of staff of the other entities. 1.2 COMPARATIVE FIGURES As TA was established on 1 July 2004 under the Tourism Australia Act 2004, there are no comparative gures available.

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005 1.3 BASIS OF ACCOUNTING The nancial statements are required by clause 1 (b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are a general purpose nancial report. The statements have been prepared in accordance with: > Finance Ministers Orders (being the Commonwealth Authorities and Companies (Financial Statements for reporting periods ending on or after 30 June 2005); > Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and > Consensus Views of the Urgent Issues Group. The Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the nancial position. Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benets will ow and the amounts of the assets or liabilities can be reliably measured. Revenues and expenses are recognised in the Statement of Financial Performance when and only when the ow or consumption or loss of economic benets has occurred and can be reliably measured. 1.4 REPORTING BY OUTCOMES The actual gures by outcome specied in the Appropriation Acts relevant to TA are presented in Note 17. Any intra-government costs included in the gure net cost to Budget outcomes are eliminated in calculating the actual budget outcome for the Government overall. 1.5 REVENUE The revenues described in this Note are revenues relating to core operating activities. Revenue from the sale of goods is recognised upon the delivery of goods to the customers. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the relevant asset. Revenue from the disposal of non-current assets is recognised when control of the assets has passed to the buyer. Revenue from rendering of services is recognised by reference to the stage of completion of contracts to provide the service. The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the transaction. Revenue from Government Output Appropriations The full amount of the appropriation for departmental outputs for the year is recognised as revenue.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005 Resources Received Free of Charge Any services received free of charge are recognised as revenue when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualies for recognition. 1.6 TRANSACTIONS BY THE GOVERNMENT AS OWNER Equity Injections Amounts appropriated by the Parliament as equity injections are recognised as contributed equity in accordance with the Finance Ministers Orders. 1.7 EMPLOYEE BENEFITS Benets Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for wages and salaries (including non-monetary benets) and annual leave are measured at their nominal amounts. Other employee benets expected to be settled within 12 months of the reporting date are also measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benet liabilities are measured as the present value of the estimated future cash outows to be made in respect of services provided by employees up to the reporting date. Leave The liability for employee benets includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees remuneration, including employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to the present value of the estimated future cash ows to be made in respect of all employees at 30 June 2005. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and ination. Separation and redundancy Provision is made for separation and redundancy benet payments in cases where positions have been formally identied as excess to requirements, and a reliable estimate of the amount payable, which is consistent with local requirements, can be determined.

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005 Superannuation AUSTRALIA Employees are members of the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. The liability for their superannuation benets is recognised in the nancial statements of the Australian Government and is settled by the Australian Government in due course. TA made employer contributions to the Australian Government at rates determined by an actuary to be sufcient to meet the cost to the Government of the superannuation entitlements of employees. The liability for superannuation recognised as at 30 June represents outstanding contributions for the nal fortnight of the year. The contribution rate for TA as a Group 2 Authority was 25.3 per cent Commonwealth Superannuation Scheme, 12.6 per cent Public Sector Scheme, of salaries in 2004-05. In addition, TA remitted Employer Productivity Superannuation Contributions to ComSuper for all employees. The contribution rate was variable and banded according to earnings ranging from 2 per cent to 3 per cent of salaries in 2004/05. ASIA In accordance with local regulations TA provided superannuation for its locally engaged staff in Hong Kong with HSBC Life (International) Ltd. The contribution rate was 11.5 per cent of salaries in 2004/05 for staff that joined before 1 December, 2000. The contribution rate was 5 per cent of salaries up to a maximum contribution of HK$1,000 per month in 2004/05 for those staff who joined after 1 December, 2000 under the new mandatory provident fund regulations. In Malaysia, TA provided superannuation for its locally engaged staff with the Employee Provident Fund where the contribution rate was 12 per cent of salaries in 2004/05. In Singapore, TA provided superannuation for its locally engaged staff with the Central Provident Fund where the contribution rate was 13 per cent of salaries up to a salary ceiling of S$5,500 per month in 2004/05. In Korea, TA provided superannuation for its locally engaged staff with funds run by National Pension. The contribution rate was 4.5 per cent of salaries in 2004/05. In Taiwan, TA provided superannuation for its locally engaged staff with HSBC Life (International) Ltd. The contribution rate was 8 per cent of salaries in 2004/05. In Thailand, superannuation is not mandatory; however TA did include 3 per cent in the staffs salary. Once superannuation does become mandatory, the 3 per cent will be contributed to the chosen body. In China, TA provided superannuation for its locally engaged staff with the local ofcial agency FESCO. The monthly contribution was HKD 2,886 per staff member in 2004-05. In Japan, TA accrued retirement benet of 50 per cent of the latest monthly salary times number of years of service for its locally engaged staff who joined before May 1999. UNITED STATES TA provided an optional employee retirement benet for its locally engaged staff in Los Angeles with Mutual of America. TA matched employees contributions up to a maximum of 3 per cent of gross salary in 2004/05 and an annual limit of US$10,000 for employees less than 50 years of age. For employees who will be 50 years of age or older, the limit is US$9,500 per annum. These limits include both employer and employee contributions.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005 CANADA TA provided an optional employee retirement benet for its locally engaged staff in Canada with Scotia Bank. TA matched employees contribution up to a maximum of 3 per cent of gross salary in 2004/05. EUROPE For the United Kingdom, in accordance with locally engaged terms and conditions of employment TA provided a group personal pension scheme for its locally engaged staff in London with Standard Life Assurance Co. The contribution rate was variable and banded according to age and earnings ranging from 4 per cent to 20 per cent of salaries in 2004/05. In Germany Tourism Australia contributed an inclusive social amount to the statutory insurance government fund for its locally engaged staff; TA matched staff contributions on a 1:1 basis. The contribution rate is not separately nominated. NEW ZEALAND In New Zealand, there was no superannuation contribution requirement for locally engaged staff. 1.8 LEASES A distinction is made between nance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and benets incidental to ownership of leased non-current assets. In operating leases, the lessor effectively retains substantially all such risks and benets. TA has not entered into any nance leases. Operating lease payments are expensed on a basis which is representative of the pattern of benets derived from the leased assets. 1.9 CASH Where appropriate, monies not immediately required by TA were invested in an approved manner in accordance with section 18 of the Commonwealth Authorities and Companies Act 1997. Cash means notes and coins held and any deposits held at call with a bank or nancial institution and investments in money market instruments. Cash is recognised at its nominal amount. Interest is credited to revenue as it accrues. 1.10 FINANCIAL INSTRUMENTS Accounting policies for nancial instruments are stated at note 15.

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005 1.11 PROPERTY, PLANT AND EQUIPMENT Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000, which are expended in the year of acquisition (other than where they form part of a group of similar items which are signicant in total). Revaluations BASIS Plant and equipment are carried at valuation, being revalued annually with sufcient frequency such that the carrying amount of each asset class is not materially different, as at reporting date, from its fair value. Valuations undertaken in any year are as at 30 June. Fair values for each class of asset are determined as shown below: Asset Class Leasehold improvements Plant and equipment Fair Value measured at: Depreciated replacement cost Depreciated replacement cost

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005 Impairment of Non-Current Assets Non-current assets carried at up-to-date fair value at the reporting date are not subject to impairment testing. The non-current assets carried at cost, which are not held to generate net cash inows, have been assessed for indications of impairment. Where indications of impairment exist, the carrying amount of the asset is compared to its net selling price and depreciated replacement cost and is written down to the higher of the two amounts, if necessary. 1.12 INTANGIBLES Intangibles comprise internally developed software and purchase of licensed software for internal use and trade marks. These assets are carried at cost. Software and trade marks are amortised on a straight-line basis over their anticipated useful lives. The useful life of software is 2 to 5 years. The useful life of trade marks is 10 years. All software assets were assessed for indications of impairment as at 30 June 2005. 1.13 TAXATION TA was exempt from all forms of taxation except fringe benets tax and the goods and services tax (GST).

Assets that are surplus to requirement are measured at their net realisable value. At 30 June 2005 TA held no surplus assets. CONDUCT All valuations are conducted by an independent qualied valuer. DEPRECIATION Depreciable property plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to TA using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. Depreciation/Amortisation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued. Depreciation and amortisation rates applying to each class of depreciable asset are based on the following useful lives: Leasehold improvements Plant and equipment 2005 Lease term 3 to 10 years

Revenues, expenses and assets are recognised net of GST: > except where the amount of GST incurred is not recoverable from the Australian Taxation Ofce; and > except for receivables and payables. TA was not subject to exemption from any foreign taxation laws relative to its overseas operations. 1.14 FOREIGN CURRENCY Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rate current as at balance date and any exchange differences are brought to account in the Statement of Financial Performance. 1.15 INSURANCE TA is insured for risks through the Governments insurable risk managed fund, called Comcover. Workers compensation is insured through Comcare Australia. 1.16 ROUNDING Amounts are rounded to the nearest $1,000 except in relation to the following: > Remuneration of directors; > Remuneration of ofcers (other than directors); and > Remuneration of auditors.

The aggregate amount of depreciation and amortisation allocated for each class of asset during the reporting period is disclosed in Note 5.

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005 MAJOR CHANGES IN ACCOUNTING POLICY TA believes that the rst nancial report prepared under AEIFRS, i.e. at 30 June 2006, will be prepared on the basis that TA will be a rst-time adopter under AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards. Changes in accounting policies under AEIFRS are applied retrospectively i.e. as if the new policy had always applied except in relation to the exemptions available and prohibitions under AASB 1. This means that an AEIFRS-compliant balance sheet has to be prepared as at 1 July 2004. This will enable the 2005-06 nancial statements to report comparatives under AEIFRS. A rst-time adopter of AEIFRS may elect to use exemptions under paragraphs 13 to 25E. When developing the accounting policies applicable to the preparation of the 1 July opening balance sheet, TA has elected to employ the exemption available under Paragraph 16 of AASB 1. Paragraph 16 states that an entity may elect to measure an item of property, plant and equipment at the date of transition to Australian equivalents to IFRSs at its fair value and use that fair value as its deemed cost at that date. Changes to major accounting policies are discussed in the following paragraphs. Managements review of the quantitative impacts of AEIFRS represents the best estimate of the impacts of the changes as at reporting date. The annual effects of the impacts of AEIFRS may differ from these estimates due to: > continuing review of the impacts of AEIFRS on Tourism Australia operations; > potential amendments to the AEIFRS and AEIFRS interpretations; and > emerging interpretation as to the accepted practice in the application of AEIFRS and the AEIFRS Interpretations. Property, plant and equipment It is expected that the 2005-06 Finance Ministers Orders will continue to require property plant and equipment assets to be valued at fair value in 2005-06. There is no capitalised borrowing costs related to qualifying assets. Restoration costs of leasehold improvements (make good) TA, under its lease agreements for various ofces, has obligations to restore (make good) leasehold improvements at the end of the lease terms. The obligations, however remote, must be recognised under AIFRS as liabilities for the cost of restoration at the end of the terms (discounted to its net present value). These are also initially recognised as part of the capitalised cost of the leasehold improvements and amortised over the lease terms. The impact of the increase in amortisation expenses (on the additional capitalised leasehold improvements) and the increase as the net present value of the provision increases, recognised as a borrowing cost under AIFRS, is as follows: $000 LIABILITIES Initial capitalisation of provision for restoration costs EQUITY charge to Accumulated surpluses Amortisation of leasehold improvements to 30 June 2005 NON-FINANCIAL ASSETS Make good provision at 30 June 2005 1,903 227 1,676

NOTE 2 ADOPTION OF AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS FROM 2005-2006
The Australian Accounting Standards Board has issued replacement Australian Accounting Standards to apply from 2005-06. The new standards are the Australian Equivalents to International Financial Reporting Standards (AEIFRS). The International Financial Reporting Standards are issued by the International Accounting Standards Board. The new standards cannot be adopted early. The standards being replaced are to be withdrawn with effect from 2005-06, but continue to apply in the meantime, including for reporting periods ending on 30 June 2005. Accounting Standard AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards requires that the nancial report for 2004-05 disclose: > an explanation of how the transition to AEIFRS is being managed; > narrative explanations of the key policy differences arising from the adoption of AEIFRS; > any known or reliably estimable information about the impacts on the nancial report had it been prepared using the Australian equivalents to IFRS; and > if the impacts of the above are not known or reliably estimable, a statement to that effect. Where an entity is not able to make a reliable estimate, or where quantitative information is not known, the entity should update the narrative disclosures of the key differences in accounting policies that are expected to arise from the adoption of AEIFRS. The purpose of this Note is to make these disclosures. MANAGEMENT OF THE TRANSITION TO AEIFRS TA has taken the following steps to prepare for the implementation of AEIFRS: > TAs Audit Committee is tasked with oversight of the transition to and implementation of AEIFRS. The Chief Financial Ofcer is formally responsible for the project and reports regularly to the Audit Committee on progress against the formal plan approved by the Committee. > The plan requires the following key steps to be undertaken and sets deadlines for their achievement: All major accounting policy differences between current AASB standards and AEIFRS were identied by 30 April 2005 A transitional balance sheet as at 1 July 2004 under AEIFRS was completed and presented to the Audit Committee An AEIFRS compliant balance sheet was also prepared during the preparation of the 2004-05 statutory nancial reports; and The 2004-05 Balance Sheet under AEIFRS will be reported to the Department of Finance and Administration in line with their reporting deadlines. > The plan also addresses the risks to successful achievement of the above objectives and includes strategies to keep implementation on track to meet deadlines. > Consultants were engaged where necessary to assist with each of the above steps.

92

93

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005 Intangible Assets Intangibles comprise internally developed software and purchase of licensed software for internal use and trade marks. Intangibles have been carried at cost less depreciation and impairment losses in accordance with AASB 138. An assessment of the Intangible Assets has been completed with no adjustment to original cost. Impairment of Intangibles and Property, Plant and Equipment In accordance with AASB 136, non-current assets will be assessed for any impairment on an annual basis. Computer hardware, software and trade marks are reviewed by TA managers for any impairment. An impairment assessment of TAs Intangible assets indicated that no adjustments will be required. Inventory TA recognises inventory not held for sale at cost, except where no longer required, in which case net realisable value is applied. The new AEIFRS standard AASB 102 will require inventories held for distribution to be carried at the lower of cost or current replacement cost. An assessment was made and it was found that in all instances the current replacement cost of inventory was equal or greater than the written down value. Therefore no adjustment is required. Employee Benets The provision for long service leave is measured at the present value of estimated future cash outows, using market yields as at the reporting date on national government bonds. AEIFRS may require the market yield on corporate bonds to be sued. The AASB has decided that a deep market in high quality corporate bonds does not exist and therefore national government bonds will be referenced. AEIFRS also require that annual leave that is not expected to be taken within 12 months of balance date is to be discounted. After assessing the staff leave prole, TA does not expect any material amounts of the annual leave balance will not be taken in the next 12 months. Consequently, there are no adjustments for non-current annual leave. Financial Instruments AEIFRS include an option for entities not to restate comparative information in respect of nancial instruments in the rst AEIFRS report. It is expected that Finance Ministers Orders will require entities to use this option. Therefore, the amounts for nancial instruments presented in TAs 200405 primary nancial statements are not expected to change as a result of the adoption of AEIFRS. TA will be required by AEFIRS to restate the carrying amount of nancial instruments at 1 July 2005 to align with the accounting policies required by AEIFRS. It is expected that the carrying amounts of most nancial instruments held by TA will be unaffected by this requirement.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 4 OPERATING REVENUES

4a REVENUES FROM GOVERNMENT Appropriations for outputs Total Revenues from Government ADVERTISING Advertising income SALES OF GOODS AND SERVICES Goods Services Total sales of goods and services Provision of goods to: Related entities External entities Total sales of goods Rendering of services to: Related entities External entities Total rendering of services Cost of sales of goods 4d CONTRIBUTIONS REVENUE Industry contributions 1 Total Contributions Revenue INTEREST REVENUE Deposits Total Interest Revenue 2005 $000 138,374 138,374

4b

10,781

4c

105 1,410 1,515

105 105

1,410 1,410 103

13,546 13,546

4e

3,455 3,455

NOTE 3 ECONOMIC DEPENDENCY

TA was established under section 5 of the Tourism Australia Act 2004 (the TA Act) and is controlled by the Commonwealth of Australia. TA is dependent on appropriations from the Parliament of the Commonwealth for its continued existence and ability to carry out normal activities.

94

95

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 4 OPERATING REVENUES (continued)

2005 $000 958 958

NOTE 5 OPERATING EXPENSES

5a EMPLOYEE EXPENSES Wages and salaries Superannuation Leave and other entitlements Separation and redundancy payments Other employee benets Total employee benets expense Workers compensation premiums Total employee expenses SUPPLIER EXPENSES Goods and services from external entities: Advertising Promotion and publicity Films, publications and distribution Information Systems and Telecommunications Research, service fees and travel Operating lease rentals * Total supplier expenses
* These comprise minimum lease payments only.

4f

NET FOREIGN EXCHANGE GAINS Non-speculative Total NET GAIN / (LOSS) FROM DISPOSAL OF ASSETS Plant and equipment Proceeds from disposal Net book value of assets disposed Total net (loss) from disposal of assets OTHER REVENUE Ofce sub-tenancies Other revenue Total other revenue

4g

45 (380) (335) 5b 846 282 1,128

2005 $000 23,280 1,825 840 591 1,329 27,865 39 27,904

4h

1 Industry contributions reect the actual value of industry support for Tourism Australias activities from cash revenue. In addition to direct revenues from the industry, joint marketing programs were undertaken. Through these programs the industry supplements funds provided by TA for product development, visiting journalist and tactical marketing programs. Due to the nature of the programs, these funds do not form part of the reported level of industry contributions for Tourism Australia, but are in addition to it.

70,956 18,594 10,596 6,415 19,122 4,912 130,595

5c

DEPRECIATION AND AMORTISATION Leasehold, plant and equipment Software (includes websites) Trade Mark Total depreciation and amortisation WRITE-DOWN OF ASSETS Financial assets: Provision for bad debts Write down of inventory Total write-down of assets OTHER EXPENSES Other operating expenses Total other expenses

540 892 11 1,443

5d

37 99 136

5e

5,027 5,027

96

97

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 6 FINANCIAL ASSETS

6a CASH Australian Dollars New Zealand Dollars Euro Hong Kong Dollars Korean Won Japanese Yen Great Britain Pounds United States Dollars Singapore Dollars Malaysian Ringgit Thailand Baht Chinese Yuan Other Total Cash Balance of cash as at 30 June shown in the Statement of Cash Flows 2005 $000 14,794 167 57 225 29 46 1,086 148 100 37 47 27 5 16,768 16,768

NOTE 6 FINANCIAL ASSETS (continued)

6b RECEIVABLES Goods and services Less: Provision for doubtful debts Deposits and advances Receivables for goods and services (gross) Insurance fund receivable Interest receivable Other receivables Total receivables (net) All receivables are current assets. TAs normal terms of trade are 30 days. Receivables (goods and services gross) are aged as follows: Not overdue Overdue by: less than 30 days 30 to 60 days 60 to 90 days more than 90 days Total receivables (gross) The provision for doubtful debts is aged as follows: Overdue by : less than 30 days 30 to 60 days 60 to 90 days more than 90 days Total provision for doubtful debts With respect to trade debtors, debts considered to be irrecoverable have been written off during the period to the amount of $1,800. 2005 $000 5,803 (219) 5,584 596 6,180 1,656 512 2,168 8,348

4,586 330 618 130 139 1,217 5,803

23 57 139 219

98

99

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 6 FINANCIAL ASSETS (continued)

6c OTHER FINANCIAL ASSETS Prepaid expenses Total INVENTORIES Inventories All inventories are current assets 6e OTHER INVESTMENTS Shares in other company unlisted (at cost) Less: Provision for diminution in value Total Other Investments 2005 $000 2,141 2,141

NOTE 7 NON-FINANCIAL ASSETS

7a PLANT, EQUIPMENT AND INTANGIBLES Computer and ofce equipment at fair value Accumulated depreciation 2005 $000 2,070 (1,535) 535 986 (555) 431 1,427 (787) 640 9,394 (5,513) 3,881 108 (11) 97 5,584

6d

149

Furniture and ttings at fair value Accumulated depreciation

400 (290) 110

Leasehold improvements at fair value Accumulated amortisation

Tourism Australia held an 11.9 per cent interest in Australian Tourism Data Warehouse Pty Limited (ATDW), which is carried at cost less provision for diminution in value. The provision is based on the estimated statement of nancial position of ATDW as at 30/6/2005. ATDWs principal activity is the development of a database for Australian Tourism Products. The investment is a non-current investment.

Software (includes websites) at cost Amortisation

Trade marks at cost Amortisation

Total plant, equipment and intangibles (non-current) All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note 1. In 2004-05, the revaluations were conducted by an independent valuer, the Australian Valuation Ofce. Movement in Asset Revaluation Reserve Increment for plant and equipment

53

100

101

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 7 NON-FINANCIAL ASSETS (continued)

7b ANALYSIS OF PLANT, EQUIPMENT AND INTANGIBLES Table A Reconciliation of the opening and closing balances of property, plant and equipment and intangibles Total Plant & Equipment $000 Software $000 Trade Marks $000 Total $000

NOTE 8 PROVISIONS AND PAYABLES

PROVISIONS 8a EMPLOYEE PROVISIONS Salaries and wages Leave Superannuation Separation and redundancy Aggregate employee entitlement liability Current Non-current 2005 $000 1,802 2,758 9 4,569 3,304 1,265 4,569

Item As at 1 July 2004 Gross book value Accumulated depreciation/amortisation Net book value Additions by purchase Net revaluation increment/decrement Depreciation/amortisation expense Disposals Other movement As at 30 June 2005 Gross book value Accumulated depreciation/amortisation Net book value at 30 June 2005 Table B Assets at valuation

7,425 (5,806) 1,619 954 53 (540) (368) (112)

7,086 (4,863) 2,223 2,562 (892) (12)

108 108 (11)

14,619 (10,669) 3,950 3,516 53 (1,443) (380) (112)

PAYABLES 8b SUPPLIERS PAYABLES Trade creditors and accruals Total supplier payables All supplier payables are current. Trade creditors Settlement is usually made net 30 days 8c OTHER PAYABLES Revenue received in advance Other short term liabilities Total other payables All other payables are current.

13,388 13,388

4,483 (2,877) 1,606

9,394 (5,513) 3,881

108 (11) 97

13,985 (8,401) 5,584

Item As at 30 June 2005 Gross value Accumulated Depreciation/Amortisation Net book value Table C Assets under construction

Total Plant & Equipment $000

Software $000

Trade Marks $000

Total $000

1,031 28 1,059

4,483 (2,877) 1,606

4,483 (2,877) 1,606

Item Gross value at 30 June 2005

Total Plant & Equipment $000 163

Software $000 1,715

Trade Marks $000

Total $000 1,878

102

103

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 9 EQUITY
Accumulated Asset Other reserve Total Total Equity Results revaluation (General Contributed reserve Reserve) Equity 2005 2005 2005 2005 2005 $000 $000 $000 $000 $000 8,256 4,317 353 (163) 278 216 278 9,165 4,317 53

NOTE 10 CASH FLOW RECONCILIATION

10a RECONCILIATION OF OPERATING SURPLUS TO NET CASH FROM OPERATING ACTIVITIES: Reconciliation of operating surplus to net cash from operating activities Operating surplus before extraordinary items Non-cash items Depreciation and amortisation Fixed asset currency re-translation Net write down of non-current assets Net foreign exchange gain Loss on disposal of assets Changes in assets and liabilities: (Increase)/decrease in inventories (Increase)/decrease in receivables (Increase)/decrease in other assets Increase/(decrease) in supplier payables Increase/(decrease) in employee provisions Increase/(decrease) in other payables Net cash from/(used by) operating activities 10b RECONCILIATION OF CASH Cash balance comprises: Cash on hand Deposits at call Total cash 2005 $000

Item Opening Balance 1 July 2004 Net surplus/decit Net revaluation increment/ (decrement) Transactions with owner: Contributions by owner: Appropriation (equity injections) Transfers to/(from) reserves Closing Balance 30 June 2005 attributable to the Australian Government

4,317

1,443 112 110 (958) 335

12,573

190

494

549 827

549 14,084

The net revaluation increase in the asset revaluation reserve comprises: > Revaluation increment/(decrement) furniture and ttings > Revaluation increment leasehold improvements
The Asset Revaluation Reserve contains unrealised gains from the revaluation of assets. On realisation, these amounts are transferred to the General Reserve.

2005 $000 (115) 169 53

(149) (3,974) (754) 5,483 1,122 (688) 6,399

2,827 13,941 16,768

104

105

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 11 DIRECTORS REMUNERATION

The number of directors of Tourism Australia included in these gures is shown below in the relevant remuneration bands: Nil $30,000 39,999 $50,000 59,999 $60,000 69,999 $170,000 179,999 $380,000 389,999 Total Number of Directors 2005 Number 2 6 1 1 1 1 12

NOTE 12 REMUNERATION OF OFFICERS

The number of ofcers who received or were due to receive total remuneration of $100,000 or more: $120,000 129,999 $130,000 139,999 $150,000 159,999 $160,000 169,999 $180,000 189,999 $190,000 199,999 $200,000 209,999 $210,000 219,999 $220,000 229,999 $260,000 269,999 $320,000 329,999 $330,000 339,999 2005 Number 1 1 2 2 2 1 1 1 1 1 3 1 17

Remuneration received or due and receivable by directors Aggregate amount of superannuation payments in connection with the retirement of directors Total remuneration received or due and receivable by directors
Remuneration includes accrued recreation leave, long service leave and separation payments where applicable.

2005 $ 821,465 45,391 866,856

The aggregate amount of total remuneration of ofcers shown above. The aggregate amount of separation and redundancy payments during the year to ofcers shown above.
Remuneration includes accrued recreation leave and long service leave.

2005 $ 3,662,178 3,662,178 217,513

The ofcer remuneration includes all Australian based ofcers concerned with or taking part in the management of Tourism Australia during 2004-05 except the Managing Director. Details in relation to the Managing Director have been incorporated into Note 11 Director Remuneration.

NOTE 13 REMUNERATION OF AUDITORS

Remuneration to the Auditor-General for auditing the nancial statements for the reporting period. The fair value of services provided are:
No other services were provided by the Auditor-General during the reporting period.

2005 $ 60,130

NOTE 14 AVERAGE STAFFING LEVELS

2005 Number 245

The average stafng levels for Tourism Australia during the year were:

106

107

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 15 FINANCIAL INSTRUMENTS

15a TERMS, CONDITIONS AND ACCOUNTING POLICIES Financial Instrument Notes Accounting Policies and Methods (including recognition criteria and measurement basis) Financial assets Financial assets are recognised when control over future economic benets is established and the amount of the benet can be reliably measured. Cash and investments are recognised at their nominal amounts. Interest is credited to revenue as it accrues. Nature of underlying instrument (including signicant terms and conditions affecting the amount, timing and certainty of cash ows)

NOTE 15 FINANCIAL INSTRUMENTS (continued)

15b INTEREST RATE RISK Weighted Average Effective Interest Rate 2005 $000 4.2 5.4 n/a n/a n/a n/a

Financial Instrument Financial Assets (Recognised) Cash at Bank Deposits at Call Receivables for goods and services (gross) Insurance fund receivable Interest receivable Other Receivables Total Total Assets Financial Liabilities Trade creditors Other payables Total Total Liabilities

Notes

Floating Interest Rate 2005 $000 2,822 13,941 16,763

Fixed Interest Rate 2005 $000

Non-Interest Bearing 2005 $000 5 6,180 1,656 512 2,141 10,494

Total 2005 $000 2,827 13,941 6,180 1,656 512 2,141 27,257 33,100

Cash Investments

6a 4e

Receivables for goods and services

6b

Other

6c

Financial Liabilities

Trade creditors

8b

Other Payables

8c

These receivables are recognised at the nominal amounts due less any provision for bad and doubtful debts. Provisions are made when collection of the debt is judged to be less rather than more likely. Prepaid expenses and accrued income Expenses relating to future period are recognised at the nominal amounts. but paid during the current period are deferred to the future period. Income relating to the current period but received in the future period is recognised in the current period. Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured. Creditors and accruals are recognised Settlement is usually made at their nominal amounts, being the up to net 30 days. amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Revenues received in advance are Revenue relating to a future period, recognised at the nominal amounts. but received during the current period is deferred to the future period.

Temporarily surplus funds, mainly from monthly drawdown of appropriation, are placed on deposit at call with Tourism Australias banker. Interest is earned on the daily balance at the prevailing daily rate. Interest on deposits at call is paid at month end, interest on term deposits are paid on maturity and interest on cash is paid at month end. Credit terms are up to net 30 days.

6a 6a 6b 6b 6b 6c

8b 8c

13,388 1,059 14,447

13,388 1,059 14,447 19,016

n/a n/a

108

109

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 30 June 2005

NOTE 15 FINANCIAL INSTRUMENTS (continued)

15c NET FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES Total carrying amount Aggregate net fair value 2005 2005 Note $000 $000 Financial Assets Cash at bank Deposits at call Receivables for goods and services Other receivables

NOTE 16 CONTINGENT LIABILITIES AND ASSETS

TA had no contingent assets or liabilities, quantiable or unquantiable.

NOTE 17 REPORTING OF OUTCOMES

TA operated in Australia and overseas to promote tourism to Australia. Its revenues were sourced primarily within Australia via Parliamentary appropriations and industry revenues. TAs activities to promote Australia as an international tourist destination were primarily focused overseas (the majority of expenditures were made via TAs international ofces in Europe, Asia, United States and New Zealand). 17a OUTCOMES OF TOURISM AUSTRALIA TA was structured to meet one outcome: Outcome 1: TA seeks to stimulate sustainable international and domestic demand for an Australian tourism experience, and to maximise the return on investment of the tourism and travel industrys total marketing effort, as measured by total visitor spend and dispersal of that spend. By doing so, TA aims to increase economic benets to Australia from tourism underpinned by a sustainable tourism industry. TAs statutory objectives were: > inuence people to travel to Australia, including for events; > inuence people travelling to Australia to also travel throughout Australia; > inuence Australians to travel throughout Australia, including for events; > help foster a sustainable tourism industry in Australia; and

6a 6a 6b 6c

2,827 13,941 8,348 2,141 27,257

2,827 13,941 8,348 2,141 27,257

Financial Liabilities Trade creditors Other payables Financial assets

8b 8c

13,388 1,059 14,447

13,388 1,059 14,447

The net fair values of cash, deposits on call and non-interest-bearing monetary nancial assets approximate their carrying amounts. Financial liabilities

> help increase the economic benets to Australia from tourism. The net fair values for trade creditors, all of which are short-term in nature, are approximated by their carrying amounts. 15d CREDIT RISK EXPOSURES The maximum exposures to credit risk at reporting date in relation to each class of recognised nancial assets is the carrying amount of those assets as indicated in the Statement of Financial Position. TA had no signicant exposures to any concentrations of credit risk. Output Group 2: Increased distribution of Australian tourism product and facilitation of niche, events and regional tourism growth. Output Group 3: Consumer travel demand stimulation. Three Output Groups were identied for this outcome: Output Group 1: Industry and market development through strategic insights.

110

111

Glossary
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 30 June 2005

ACRONYM
ADS AMEX ANTA ASP ATC ATDW ATE ATEC AUD BTR DAMA DEST DFAT DIMIA DITR EEO GCC IT&ME IMEX JAAG JAL JAM JATA KPI M2006 MATTA MP MOU MTR OLs PATA STO TA TABEE TEA TFC TRA TTF TTG UAE VJP YOLs

TITLE
Approved Destination Status American Express Australian National Travel Association Aussie Specialist Program Australian Tourist Commission Australian Tourism Data Warehouse Australian Tourism Exchange Australia Tourism Export Council Australian Dollar Bureau of Tourism Research Destination Australia Marketing Alliance Department of Education, Science and Training Department of Foreign Affairs and Trade Department of Immigration and Multicultural and Indigenous Affairs Department of Industry, Tourism and Resources Equal Employment Opportunity Gulf Co-operative Council Incentive Travel and Meeting Executives Show Worldwide Exhibition for Incentive Travel, Meetings and Events Japan Australia Advisory Group Japan Airlines Japan Australia Mission Japan Association of Travel Agents Key Performance Indicator Melbourne Commonwealth Games 2006 Malaysian Association of Tour and Travel Agents Member of Parliament Memorandum of Understanding Hong Kongs rail network Ofce Ladies Japanese Pacic Asia Travel Association State and Territory Tourism Organisation Tourism Australia Team Australia Business Events Educational Tourism Events Australia Tourism Forecasting Committee Tourism Research Australia Tourism and Transport Forum Travel Trade Gazette United Arab Emirates Visiting Journalists Program Young Ofce Ladies Japanese

NOTE 17 REPORTING OF OUTCOMES (continued)

17b NET COST OF OUTCOME DELIVERY Total expenses Cost recovered from provision of goods and services to the non-government sector Total costs recovered Other external revenues Advertising Industry contribution Interest Net foreign exchange gains Revenue from sale of assets Other Total other external revenues Net cost of outcome 17c REVENUES AND EXPENSES BY OUTPUT GROUPS Output Group 1 Output Group 2 Output Group 3 Non-Specic 2005 2005 2005 2005 $000 $000 $000 $000 Operating expenses Employees Suppliers and other expenses Value of assets disposed Depreciation and amortisation Write-down of assets Total Operating expenses Funded by: Revenue from Government Advertising Sale of goods and services Industry contribution Revenue from Sale of Assets Net foreign exchange gains Other non-taxation revenues Total operating revenues 8,734 16,275 102 25,111 6,334 21,700 216 34 28,284 12,836 97,648 1,227 111,710 380 380 Total 2005 $000 27,904 135,622 380 1,443 136 165,485 Outcome 1 2005 $000 165,485 1,515 1,515

10,781 13,546 3,455 958 45 1,128 29,913 134,057

23,000 1,200 1,962 48 26,210

12,410 556 294 11,139 909 25,308

102,964 10,225 21 445 3,626 117,281

45 958 1,003

138,374 10,781 1,515 13,546 45 958 4,583 169,802

112

113

Tourism Australia overseas ofces

AUSTRALIA Sydney Level 18, Darling Park Tower 2 201 Sussex Street Sydney NSW 2000 Australia Telephone +61 2 9360 1111 Facsimile +61 2 9331 6469 Canberra Level 1 33 Allara Street Canberra ACT 2601 Australia Telephone +61 2 6213 6940 Facsimile +61 2 6213 6983 JAPAN New Otani Garden Court Building 28F 4-1 Kioi-cho Chiyoda-ku Tokyo 102-0094 Japan Telephone +81 3 5214 0720 Facsimile +81 3 5214 0719 TAIWAN Suite 1512, Level 15 333 Keelung Road, Section 1 Taipei Taiwan Telephone +886 2 2757 7188 Facsimile +886 2 2757 6483

Index
A
Advertising and Design 37, 38 American Express 8, 47, 113 Asia 8, 15, 18, 47, 48, 49, 50, 56, 58, 60, 62, 88, 111, 113 ATE 7, 9, 15, 34, 35, 39, 45, 46, 57, 63, 72, 113. See also Australian Tourism Exchange Aussie Enthusiasts 50 Aussie Specialist Program 9, 15, 46, 50, 54, 55, 57, 58, 59, 60, 61, 62, 63, 68, 69, 70, 71, 72, 113 Australasia 18, 42, 44, 46 Australian Experiences 7, 8, 12, 18, 42, 45 Australian Tourism Exchange 9, 32, 34, 45, 46, 47, 57, 63, 72, 113. See also ATE Aviation and Analysis 18, 32

G
Germany 6, 9, 31, 47, 69, 89, 114 Gulf Countries 7, 18, 47, 48, 66

Q
Qantas 7, 8, 9, 16, 46, 49, 50, 54, 55, 56, 58, 59, 64, 66, 67, 68, 70, 73

H
Highlights 2004 - 2005 8 Hong Kong 7, 9, 32, 37, 47, 58, 88, 98, 113, 114 Human Resources 18, 19, 21, 26, 29

R
Risk and Administration 18, 27

S
Singapore 7, 31, 32, 37, 47, 62, 88, 98, 114 Singapore Airlines 49, 69, 70, 73 Strategy and Research 30, 32 Sweden 71 Switzerland 33, 69

THAILAND KOREA 20th Floor Youngpoong Building 33 Seorin-dong Chongro-ku Seoul 110-752 Korea Telephone +82 2 399 6500 Facsimile +82 2 399 6507 Unit 1614 16th Floor River Wing East Empire Tower 195 South Sathorn Road Yaanawa Sathorn Bangkok Thailand 10120 Telephone +66 2 670 0640 Facsimile +66 2 670 0645

I
India 7, 32, 33, 47, 49, 59 Indigenous 7, 8, 12, 33, 45, 49, 59, 113 International Media 18, 28, 37, 38, 39, 40 Ireland 47, 72 IT 28. See also Technology Services Italy 31, 33, 47, 70

T
Taiwan 32, 63, 88, 114 Technology Services 28. See also IT Thailand 47, 49, 63, 88, 98, 114 Tourism Events Australia 8, 18, 33, 113 Trade Events 9, 18, 28, 35, 42, 46, 47

B
Backpacker 7, 33, 71 Board 5, 7, 17, 18, 19, 20, 21, 22, 26, 30 Business Events 8, 28, 41, 58, 113. See also Tourism Events Australia

J
Japan 6, 9, 18, 31, 35, 37, 40, 47, 48, 64, 65, 88, 113, 114 Japan Airlines 9, 64, 65, 113

CHINA Unit 1501, 15/F, Citigroup Tower 33 Hua Yuan Shi Qiao Road, Lujiazui PuDong, Shanghai 200120 China Telephone +86 21 6887 8129 Facsimile +86 21 6887 8133

MALAYSIA Suite 12-1 Faber Imperial Court Jalan Sultan Ismail 50250 Kula Lumpur Malaysia Telephone +60 3 2611 1148 Facsimile +60 3 2070 4302 UNITED KINGDOM Australia Centre Australia House 6th Floor Melbourne Place/Strand London UK WC2B 4LG Telephone +44 20 7438 4601 Facsimile +44 20 7240 6690

C
Canada 9, 47, 54, 89 Caravan and camping 12, 33 Cathay Pacic 9, 58 Chairman 5, 7, 8, 17, 18, 20, 21, 22, 34, 78 China 6, 8, 9, 16, 31, 35, 37, 39, 47, 49, 56, 57, 88, 114 Corporate Affairs 18, 34, 35 Corporate Governance 17, 18 Corporate Planning 30 Corporate Services 10, 18, 26, 28

U
UK 6, 8, 9, 15, 18, 31, 35, 48, 68, 70, 72, 73, 114. See also United Kingdom United Kingdom 32, 37, 39, 46, 47, 72, 89, 114. See also UK United States 9, 14, 32, 98, 114. See also US US 6, 8, 28, 31, 47, 54, 55. See also United States

K
Korea 6, 8, 9, 14, 31, 32, 35, 49, 60, 88, 114

L
Latin America 50

M
Malaysia 9, 37, 61, 88, 114 Managing Director 6, 7, 17, 18, 20, 22, 34, 78, 107 Marketing 18, 36, 37, 38, 40 Mexico 9, 50 Middle East 47, 66 Minister 30, 34, 35, 58, 73, 76, 85 Minister for Small Business and Tourism, the Hon Fran Bailey MP 1, 7, 17, 18

NEW ZEALAND GERMANY Neue Mainzer Strasse 22 D 60311 Frankfurt/Main Germany Telephone +49 69 274 00622 Facsimile +49 69 2740 0640 Level 3 125 The Strand Parnell Auckland New Zealand Telephone +64 9 915 2826 Facsimile +64 9 915 2881

V
Visa 8, 16, 56 Visiting Journalists Program 9, 10, 15, 37, 39, 57, 63, 65, 67, 70, 71, 73, 113. See also VJP VJP 10, 39, 54, 55, 57, 60, 63, 65, 67, 70, 71, 73, 113. See also Visiting Journalists Program

UNITED STATES 6100 Centre Drive Suite 1150 Los Angeles California United States 90045 Telephone +1 310 695 3200 Facsimile +1 310 695 3201

D
Denmark 71 Domestic Marketing 5, 34, 35, 43, 85

E
e-Strategy 18, 40 Ecotourism 7, 12, 15 Education 27, 35, 50, 57, 58, 62, 63, 113 Emirates 49 Europe 6, 9, 15, 18, 40, 46, 48, 49, 50, 68, 69, 70, 72, 89, 111

HONG KONG Suite 6706 67th Floor Floor Central Plaza 18 Harbour Road Wanchai Hong Kong Telephone +852 2802 7700 Facsimile +852 2802 8211

SINGAPORE 101 Thompson Road United Square #08-03 Singapore 307591 Telephone +65 6255 4555 Facsimile +65 6253 8431

N
National Geographic 39 Netherlands 33, 47, 71 New Zealand 6, 9, 18, 41, 42, 47, 67, 89, 98, 111, 114 niche 7, 8, 12, 45, 111 Nordic 71 North America 14, 15, 37, 40, 54, 55

F
Fairfax 43 Financial Statements 19, 76112 Food and Wine 7, 12, 45, 60 France 9, 33, 47, 68

P
Partnership Marketing 18, 42, 44

114

115

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