Research Brief on Current Tourism Views and Issues in Western ...

TOURISTICS VOLUME 18 NUMBER 1 2002 

SUBSCRIPTION FOR 2002 

See back cover for details 

<strong>Research</strong> <strong>Brief</strong> on Current 

Tourism Views and Issues 

in Western Australia 

Inside 

* From backpackers to 

suitcases? 

* China’s Out-bound tourism 

to Australia 

* Public Liability Insurance 

Survey 2002 

* University research 

projects 

* Value of Tourism to 

Western Australia 

* Top Shelf

IMPORTANT DISCLAIMER 

This document has been prepared by the Western Australian Tourism 

Commission(‘the Commission’) predominantly from information and data 

supplied to it by members of the public and persons in the tourism industry 

for the exclusive use of the Commission. Any other material contained herein 

is of the nature of general comment and neither purports nor is intended to 

be advice on any particular matter. The Commission expresses no opinion on 

whether this document or its contents present a true and fair view of any 

matter and no warranty of accuracy or reliability is given. No person or 

corporation should act on the basis of any matter contained in this document 

without considering and, if necessary, taking appropriate professional advice 

upon his, her or its own particular circumstance. 

Neither the Commission nor any member officer or employee undertakes 

responsibility in any way whatsoever to any person or corporation in respect 

of this document including any errors or omissions therein however caused. 

The Commission and all its member officers and employees expressly disclaim 

all and any liability to any person or corporation into whose hands this 

document may come whether as purchaser or otherwise in respect of anything 

and of the consequences of anything done or omitted to be done by any such 

person or corporation in reliance in whole or part upon the whole or any part 

of the contents of this document.

Page 2 

Page 8 

CONTENTS 

From Backpackers to Suitcases? 

This article highlights the recent shifts in the backpacker market 

in Australia. Gabrielle Ashford and Michael Milbourne 

investigate the trends in this significant niche market in Western 

Australia. 

China’s Out-bound Tourism to Australia 

This article provides insights into one of the fastest growing 

tourism markets to Australia. Professor Trevor H.B. Sofield, 

PhD, reveals interesting facts and characteristics about the 

somewhat unique Chinese tourism market. 

Page 12 Public Liability Insurance Survey 2002 

Editor’s Note 

Touristics is the only local tourism 

research magazine specifically aimed at 

delivering easy to read research articles 

relevant to Western Australia. The 

Western Australian Tourism 

Commission’s commitment to this 

publication has entered its 18 th year and 

with this in mind we seek your continued 

support via subscription in 2002. 

There has been much interest in previous 

Touristics issues, which we have 

interpreted as acknowledgement of the 

value and usefulness of the information 

in the articles. Suggestions from readers 

are also welcomed and encouraged. 

Page 18 

Page 19 

Page 20 

The WATC conducted research among adventure tourism 

operators to determine the extent of increases in public liability 

insurance policies. The research findings assist in determining 

the scope of the problem among those operators most at risk. 

University <strong>Research</strong> Projects 

Read about the involvement of Western Australian universities 

in conducting tourism research projects. This article lists some 

examples of the types of WA specific projects currently being 

conducted. 

Value of Tourism to Western Australia 

This page lists interesting facts and statistics about the value 

of tourism to the Western Australian economy 

Top Shelf 

WATC Librarian Linda Thompson highlights some examples of 

recent acquisitions and useful websites. 

This issue of Touristics covers a wide 

variety of topics from China’s Outbound 

Tourism to Australia to the Backpackers 

market and Public Liability Insurance 

research among adventure tourism 

operators. We also include a brief 

description of some tourism research 

projects that are currently being 

conducted at Western Australian 

universities. We hope you enjoy reading 

them and we would be happy to receive 

any feedback or suggestions. 

Kind Regards, 

Jane Seman 

Omission 

In the previous issue of Touristics (No.2, 2001) we omitted to 

thank Grefin Harsa for her contribution to the Visitor 

Satisfaction Survey. Grefin conducted the analysis and 

submitted a draft report to Touristics for consideration by the 

journal. Grefin recently completed a Bachelor of Commerce 

and Arts degree from University of Western Australia. 

Touristics is published by the 

Western Australian Tourism Commission. 

Design and Print: 

Desktop Print 

ISSN: 0815 - 1318 

* From backpackers to 

suitcases? 

* China’s Out-bound 

tourism to Australia 

* Public Liability 

Insurance Survey 2002 

* University research 

projects Volume 18, Number 1, 2002 

* Value of Tourism to 


* Top Shelf 

1

FROM 

BACKPACKERS 

TO 

SUITCASES? 

The international 

backpacker market in 

Australia is on the move. 

Gabrielle Ashford and 

Michael Milbourne from 

the Western Australian 

Tourism Commission, 

investigate the evolution 

of this significant niche 

tourism market in 


Australia is recognised as a backpacker haven, offering a wide range of 

attractions and activities as well as maintaining a large accommodation 

network for the backpacker market. These assets constitute only some of the 

many competitive advantages Australia has over other destinations such as Europe, 

and have ensured that the backpacker market remains a small, but significant section 

of the Western Australian tourism market. 

Features which distinguish the international backpacker traveller are presented, including 

details on how many visit Australia, where they come from, how long they stay and 

how much they spend. In addition, the changing characteristics of this market are also 

investigated. 

What or who is a Backpacker? 

To many people, the term backpacker often conjures a vision of a young international 

tourist trekking the countryside, taking any casual employment available to pay for the 

next meal, and living frugally out of the laden pack on his or her back. This may well be 

the stereotype image of a backpacker, but times have changed and so has the humble 

backpacker. 

The Bureau of Tourism <strong>Research</strong> (BTR) uses the following basic characteristics to describe 

the backpacker market. They are international visitors to Australia who: 

prefer budget accommodation 

place an emphasis on meeting other travellers 

have an independently organised and flexible travel schedule 

prefer longer holidays, and 

focus on informal and participatory holiday activities. 

In a 1995 report, the Commonwealth Department of Tourism went one step further 

and suggested that “backpacking is an approach to travelling and holiday taking, rather 

than a categorisation based on age or dollars spent.” 

In order to deliver demographics of the 

backpacker traveller market, the BTR 

defines backpackers as simply “an 

international visitor to Australia who 

spends one or more nights, during their 

stay in Australia, in backpacker or youth 

hostel accommodation.” Whilst 

industry has questioned the definition’s 

appropriateness, the backpacker sector 

of the industry has supported its use 

for many years. 

Volume 18, Number 1, 2002 

This article uses the BTR definition to 

build a research representation of an 

often under-rated tourism market 

segment in Australia. However, in doing 

so, it is recognized that estimates 

provided may potentially exaggerate the size of this market, as the definition hinges 

on the usage of backpacker or youth hostel accommodation “… whilst in Australia”. 

This could potentially mean that a traveller who stayed in budget accommodation 

whilst in Sydney, and also visited Western Australia (but did not stay in a youth or 

backpacker hostel), is considered a backpacker traveller to Western Australia. Without 

elaborating on this possibility here, the BTR definition outlined above provides some 

interesting insight into the backpacker market’s composition, its relative market 

importance, impact on the tourism industry in Australia and Western Australia, and 

ultimately, changes which are occurring in this maturing market segment. 

2

How many backpackers come to Western Australia? 

Almost 85,000 backpackers came to Western Australia in 1999. This represents 21% of 

backpackers arriving in Australia. 

FROM 

BACKPACKERS 

TO 

SUITCASES? 

Backpackers amounted to 16% of all international visitors 

to Western Australia, consisting primarily of visitors from 

the UK, Germany and other Continental European origins. 

Between 1997 and 1999, the number of backpackers 

increased by 25,000 or by 42%, due in part to new Working 

Holiday Maker visa arrangements for visitors from Denmark, 

Sweden and Norway. More recent indications are that the 

market increased further to reach almost 95,000 by the end 

of June 2000. 

The majority (85%) of these travellers come to Western 

Australia for holiday reasons. Amongst other highly rated 

reasons are to visit friends and relatives, and for education 

purposes. 

· 85,000 backpackers 

come to Western Australia 

· stay 32.1 nights on 

average 

· spend $65 on average 

each day 

· 59% are on first visit to 

Australia 

· 85% come for a holiday 

· UK is the largest single 

market 

Students (those visiting for education reasons) are an 

integral part of the backpacker market. They account for 

almost 9% of backpackers to Western Australia, and have a 

propensity to stay long periods of time (24% of nights stayed in backpacker style 

accommodation). During their semester breaks, students take the opportunity to get 

away, and with limited budget, often stay in backpacker accommodation during their 

travels. 

How long do backpackers stay? 

Backpackers accounted for 26.5 million (24%) of total international visitor nights spent 

in Australia - Western Australia receiving a share of 10%. They stayed an average 32.1 

nights in Western Australia. Whilst estimates do vary from one source to another, as 

per a recent article in the ‘West Australian’ newspaper which suggested the average 

length of stay to be 37 nights, this article reinforces the value of backpackers as long 

term stayers, and as a result, relatively large spenders. 

Average Stay in Western Australia 

Total 

Other Countries 

Other Europe 

Germany 

United Kingdom 

Japan 

New Zealand 

North America 

Asia (ex Japan) 

International Visitors 

Backpackers 

0 20 40 60 


Due to their extended stay, backpackers tend to travel outside icon destinations, and 

thus contribute significantly to country towns within Western Australia. To demonstrate 

this, whilst international visitors stay on average about 12 nights in country Western 

Australia, backpackers stay almost 17 nights. 

3

FROM 

BACKPACKERS 

TO 

SUITCASES? 

Over recent years, backpackers have consistently ventured to the northern part of the 

State. The Kimberley (visited by 40% of backpackers to Western Australia) in particular 

is the most popular region visited, whilst the Gascoyne (32%) and Mid West (30%) 

regions also feature prominently. This again ties in with the backpacker’s desire to 

experience landscapes, natural attractions, beaches and the Australian outback. 

How much do backpackers spend? 

On a daily basis, backpackers spend less than the typical international visitor averaging 

about $65 per day. However, the real benefit gained from this market segment is that 

due to their considerably longer length of stay, they actually spend about double that 

of the average international visitor. In dollar terms, that equates to about $4,245 

each, which amounts to just over $1.6 billion annually during their stay in Australia. 

Using their daily spend as a basis, it is likely these visitors spend in the vicinity of $177 

million in Western Australia. 

Almost half of their money is spent on food, drink and accommodation ($1,953 per 

visitor), whilst shopping ($441), education fees ($421) and organised tours ($414) are 

also important items of expenditure. 

Average Expenditure on Items in Australia 

Phone, Internet etc 

Education fees 

Motor vehicles 

Entertainment 

Food, drink & accommodation 

Shopping 

Rental cars, campervans, etc 

Other transport fares 

Domestic airfares 

International airfares bought in Australia 

Organised tours 

Other 

$- $500 $1,000 $1,500 $2,000 

Source: Bureau of Tourism <strong>Research</strong> (International Visitor Survey, 

visitors aged 15+ years) 


The Bureau of Tourism <strong>Research</strong> recently released a new 

publication entitled Show me the money!, which 

provides a segmentation approach to expenditure by 

international visitors to Australia. A major finding 

(based on the International Visitor Survey) from this 

publication is that backpackers spend in excess of 

$6,000 each (including expenditure on prepaid airfares 

and prepaid travel packages, other items during their 

trip before they arrive) as well as money spent whilst in 

Australia. Inclusion of these items boosts daily spend 

to $92 per night, and results in this travelling market 

spending an estimated $2.5 billion. 

HOT off the Press: 

· international 

backpackers spend 

$6,130 each 

· only the international 

students ($11,520) 

spend more per visitor 

than backpackers 

4

Where do backpackers come from? 

UK ranks as the single-most important source market (26%) of backpackers to Western 

Australia. This is not unlike the broader UK market to Western Australia, which likewise 

is the largest single visitor market (121,000), accounting for 21% of all international 

visitors to the State. 

FROM 

BACKPACKERS 

TO 

SUITCASES? 

With more than 170,000 people born in the UK now residing in Perth, visiting and 

staying with friends and relatives would be an added benefit for these visitors. In fact, 

almost one-third of UK backpackers spend some time staying in homes of friends and 

relatives. Of those who do stay freely in this style of accommodation, the average stay 

is about 12 nights. 

30,000 

Origin of Backpackers to Western Australia 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

Asia North United Germany Other Other 

America Kingdom 

Europe 

Not surprising, Germany is the second largest single backpacker source market. They 

represent about 11% (or just over 9,000) of all backpackers, and are predominantly 

influenced or attracted by a strong desire to experience natural landscapes, wildlife, 

coastline and beaches. Swiss and Dutch backpackers are ‘Other European’ markets 

which are attracted to Perth and Western Australia. The Asian countries do not tend 

to have large numbers of backpackers, although both Japan and Korea have a 

significant number of visitors from this segment. Interestingly, whilst Japan has not 

featured quite so highly on the Western Australian tourism scene as in previous years 

(recently only contributing around 5% of international visitors), it does rank significantly 

by supplying around 9% of the backpacker market into the State. 


5

FROM 

BACKPACKERS 

TO 

SUITCASES? 

Which States do backpackers visit? 

Well-known for their desire to travel and experience as much as possible, backpackers 

visit 2.8 States on average during their stay in Australia, which is 

one State more than international visitors in general. 

· 21% of international 

backpackers to 

Australia visit 


· 55% are aged 20-29 

years of age 

Backpackers from Continental Europe, Germany and UK in 

particular showed a higher propensity to travel around and 

experience what Australia had to offer, each market visiting an 

average of three States whilst in Australia. 

· 42% arrive in 

Australia via Perth 

· 62% of WA 

backpackers visit 

regional areas in 


Whilst visiting Western Australia, similar patterns are apparent. 

Backpackers from Continental Europe and Germany were most 

widely travelled, visiting 4 and 3.6 regions on average respectively. 

UK and Northern American backpackers were less likely to travel 

too far around the State, visiting 2.6 and 2.5 regions on average 

respectively. 

As the following table displays, Western Australia attracts about 

21% of all backpackers who visit Australia. 

States Visited by Packpackers whilst in Australia 

State Visited Visitors Market Share 

New South Wales 318,000 79% 

Queensland 266,000 66% 

Victoria 171,000 42% 

Northern Territory 133,000 33% 

South Australia 91,000 23% 

Western Australia 85,000 21% 

ACT (Canberra) 39,000 10% 

Tasmania 23,000 6% 

Source: Bureau of Tourism <strong>Research</strong> (International Visitor Survey, visitors aged 15+ years) 

Have recent events affected backpacker travel? 

Indications from the marketplace are that recent global events have had no noticeable 

impact on backpacker travel behaviour. Despite travel enquiries having declined on a 

global scale, the European market is proving to be resilient, and bookings to Australia 

are continuing to climb despite the US attacks and global economic uncertainty. 

Recent research by STA Travel determined: 

85% of the youth market had not deterred from travel 

90% had not cancelled travel plans, and 

82% who said they had deterred plans, said that low airfares and packages would 

encourage them to travel again. 

A recent Australian Tourist Commission (ATC) and STA Travel campaign targeted at 

youths reported that operator bookings increased by between 49 and 126 percent 

compared to the same time last year. 


According to ATC intelligence, “Australia is proving to be a hot destination for the 

international backpacker market, which is expected to grow at double the rate of 

average tourist arrivals to Australia over the next 12 months.” As a result, the ATC will 

be “…working closely with State and Territory tourist authorities and key industry 

players to develop a national strategy and identify new co-operative marketing 

initiatives.” 

6

What other changes are occurring in the backpacker market? 

Backpackers view Australia as a quality destination, as somewhere that will offer high 

standards of accommodation, give good service, and provide a wide range of things 

to do and see. Perth and Western Australia are viewed as attractive and appealing, 

always clean and offering wide open spaces to explore. In essence, the backpacker 

looks at Western Australia as being fresh, natural, free and spirited - the four personality 

traits on which the original Brand WA campaign was first launched in 1996. 

FROM 

BACKPACKERS 

TO 

SUITCASES? 

Whilst the definition of backpackers assumes at least one night 

is spent in a backpacker/youth hostel accommodation, these 

travellers don’t limit themselves to budget style accommodation. 

As revealed earlier in the article, almost one-third of UK 

backpackers visiting Western Australia also stay with friends or 

relatives. This is not uncommon amongst backpackers in general, 

with an estimated 42% who visit Australia overall staying in the 

comfort of a home of a friend or relative. 

Whilst accommodation preferences also extend to other 

relatively cheap forms such as caravans, cabins and tents, higher 

quality styles (hotel, motel, resort) of accommodation are also 

well sought after. Industry feedback indicates low-end dormitory 

style accommodation is fast losing favour, and a shift towards 

twin-share/ensuite style accommodation is occurring. 

Backpackers display a 

wide variation in 

accommodation used in 

Australia: 

· 42% of backpackers 

stay with friends and 

relatives 

· caravans, cabins and 

tents are used by 34% 

of backpackers 

· hotels and motels are 

stayed in by 24% and 

14% of backpackers 

respectively 

The apparent shift or broadening of accommodation needs has 

created a divide in the marketplace. Operators and investors are either offering budget 

style accommodation or quality accommodation – mid-range options are much rarer. 

South African and Israeli backpackers in particular are budget conscious and search 

for the lower end of the market. 

Backpackers are independent travellers, moving around where and when they like. 

This characteristic may always be distinctive in the backpacker’s makeup, but recent 

indications are that it may be changing. A few short years ago, slightly more than 70% 

of backpackers to Western Australia travelled alone. More recently, this proportion 

dropped to less than 60%. In tandem with this change, adult couples increased their 

representation from 12% to 19% of the backpacker market. Industry feedback suggests 

that more backpackers are travelling in groups than before. Empirical evidence also 

supports this view, but the results still show that relatively small numbers of travellers 

are involved. 

Conclusion 

The backpacker market is a maturing segment of the tourism industry. With this maturity 

comes change in makeup, tastes and travel needs. In recognition of these changes, 

Australia’s tourism industry is modifying its services accordingly to cater for this 

important and lucrative visitor market. 

For further information, 

please contact 

Gabrielle Ashford, 

<strong>Research</strong> Assistant, 

on 9220 1771 or 

email:gashford@tourism.wa.gov.au 


7

CHINA’S 

OUT-BOUND 

TOURISM TO 

AUSTRALIA 

Professor Trevor H.B. Sofield, 

Foundation Professor 

(Tourism Programme, 

University of Tasmania) and 

Adjunct Professor (Murdoch 

University, WA) provides a 

fascinating insight into some 

of the unique issues 

associated with the rapidly 

growing Chinese tourism 

market to Australia. 


As a centrally controlled economy 

that is continuously grappling with 

the complexities of introducing 

elements of a free market economy, China 

has moved rapidly to allow freedom of 

travel for its citizens in and around most 

parts of China. Under the former Maoist 

regime, internal movement was severely 

curtailed and strictly limited. Holidays were 

criticised as a decadent habit of the 

bourgeoisie, and in any case, most Chinese 

people had little discretionary income and 

long holidays were non-existent. However, 

following Deng’s ‘Open Door’ policy in 

1978, a series of market reforms ensued 

over the next decade and tourism became 

both an acceptable form of national 

economic development and an approved 

social behaviour pattern. Literally 

thousands of tourism ventures were 

established, ranging from five star multistorey 

hotels to luxury resorts and theme 

parks, heritage sites, cultural events and 

nature based attractions. A range of 

policies were promulgated to bolster 

domestic tourism, including the 

introduction of national week-long 

holidays constructed around the Chinese 

New Year, May Day and the Chinese 

National Day, October 1. Domestic tourism 

is helping to redistribute income 

throughout China and in 2001 China’s 

enthusiastic embrace of domestic tourism 

saw domestic travellers in China total more 

than 840 million, generating more than 

AUD$16 billion. 

Outbound international travel, by contrast, 

remains one of the most strictly controlled 

and sensitive components of tourism for 

China. For many years, only those Chinese 

citizens travelling outside China on 

approved Government business were able 

to obtain passports. The first relaxation 

came in 1983 when Chinese mainland 

citizens were permitted to travel to Hong 

Kong in order to visit friends and relatives. 

In 1984 Macau was added. Then in 1991 

the PRC formalised outbound leisure tours 

through the Government-owned China 

Travel Service to three Asian countries that 

had large Chinese populations - Singapore, 

Thailand and Malaysia - which were 

designated as ‘Tourism Liberalization 

Countries.’ 

With increasing levels of development and 

disposable incomes, the relaxation of 

political controls, the introduction of paid 

vacations and seven to fifteen days annual 

leave and the five day working week, 

leisure travel has become popular among 

China’s citizens. It has been predicted that 

by 2020, more than 50 million Chinese 

would visit other countries each year, the 

majority to Asian countries as VFR flows. 

Many countries are vying for a stake in this 

market, however visa restrictions remain 

a major constraint in the development of 

the outbound Chinese market. 

China-Australia Visa Agreement 

In April 1999, a formal ‘Exchange of Letters’ 

between Australia and China took place 

granting Australia ‘Approved Destination 

Status’ for group outbound travel. 

Australia was only the sixth country - and 

the only western nation - to be granted 

such status. By mid-2001 another eight 

countries had been granted ADS, with 

New Zealand the only other western 

country (the new Asian countries were 

South Korea, Japan, Cambodia, Burma, 

Laos, Brunei, and Nepal). However, as 

China enters the World Trade 

Organisation, it is expected that a 

significant number of other western 

countries will also be granted ADS and 

Australia will lose its early market 

advantage. 

The distinguishing feature which sets 

Australia apart from its Asian counterparts 

is the complex system put in place to 

prevent ‘overstayers’. Stringent controls 

govern the granting of passports and exit 

visas by China and Australia has strict 

controls over entry visas. The four main 

mechanisms for exercising control over the 

flow of outbound Chinese tourists to 

Australia are: 

i) to place limits on the number of 

Chinese travel agencies which can 

participate in the scheme 

ii) to limit the locations within China from 

which they can operate for an 

indefinite trial period 

iii) to restrict the conditions of the visa 

issued for travel to Australia 

iv) to restrict free independent travel, only 

escorted group tours with Chinese 

international guides being permitted. 

8

As an additional measure of control when 

the agreement first commenced, the 

Chinese government issued one-trip only 

tourist passports valid for six months, but 

from 2001, five-year renewable passports 

may be applied for. On the Australian side, 

ADS visas are valid only for the period of 

group travel with no work entitlements, 

no capacity to extend the length of the 

visa or to change its status in Australia. 

Authorized Travel Agencies 

The Chinese agencies permitted to arrange 

escorted group travel for Chinese citizens 

to visit Australia for tourism purposes are 

referred to as Authorized Travel Agencies 

(ATAs). They are selected by the China 

National Tourism Administration (CNTA) 

and only 22 have been registered as ATAs 

under the bilateral agreement. Six of them 

are national companies which are 

government-owned and of the other 16 

agencies, there are five in Beijing, five in 

Shanghai and six in Guangzhou, the three 

cities designated as ‘Try-out Areas’ (trial 

places) under the bilateral agreement. The 

Australian Government has given an 

assurance to the Chinese Government that 

its Embassy in Beijing and its Consulates in 

Shanghai and Guangzhou would not 

accept any group applications from any 

operators or individuals (including those 

from companies in China owned by 

Australia or other countries) for tourist 

visas outside the 22 authorised travel 

agencies. Each ATA must nominate 3-6 

staff only (some companies have several 

thousand employees) who are registered 

with the Chinese authorities (CNTA) for 

processing outbound group travel to 

Australia. Their details are forwarded by 

the CNTA to the Australian embassy and 

consulates, which will only accept visa 

applications signed by those registered 

staff members. In this way, a further 

degree of control over group travel to 

Australia is exercised by the two 

governments. 

For Australia’s part, it has also placed 

restrictions on the number of travel 

agencies and tour operators in Australia 

that may participate in managing and 

servicing the Chinese inbound market. 

Only 31 inbound tour operators have been 

registered to receive Chinese tour groups 

(9 of them were added to the list in 2000). 

The 22 Chinese travel agencies must find 

partnership among these 31 counterparts, 

sign contracts or agreements with them 

to let them receive the Chinese groups 

instead of handing the groups over to 

other travel agencies in Australia. By 

restricting the number of Australian 

companies involved, the Australian 

Government’s task of monitoring the 

influx of Chinese group 

visitors is significantly 

simplified. The regulation 

in this instance is in marked 

contrast to the Australian 

travel industry as a whole, 

where free market forces 

are allowed to determine 

commercial activities. 

Australia does not exercise 

such tight control with any 

other tourist generating 

country. 

Restrictions on Areas of Operations 

As noted, only three Chinese cities have 

been designated for the trial with 

Australia. During the trial period only 

permanent residents with household 

registrations in Beijing, Shanghai and 

Guangdong Province may go to Australia 

through authorised travel agencies as selfsponsored 

group tourists. Prior to 

departure, a list of group members’ names 

and addresses must be forwarded to the 

Chinese tourism authorities who, together 

with the Chinese Public Security Bureau 

and Chinese Customs, will check to ensure 

that names and addresses are valid and 

restricted to the approved trial areas. It is 

anticipated that other places may be 

permitted to organize tours to Australia 

once the related departments in China and 

Australia gain sufficient experience in 

management and confidence that the 

scheme is working efficiently. 

Chinese International Group Travel 

In the majority of cases, the ATAs assemble 

groups from individual travellers. Their 

costs may be paid from an individual’s own 

domestic savings, by relatives overseas, or 

by companies. Company-organized group 

tours constitute a rapidly growing 

specialist segment. Some large companies 

award incentive group tours every year and 

one ATA in Shanghai specialises in groups 

from companies. 

CHINA’S 

OUT-BOUND 

TOURISM TO 

AUSTRALIA 

Statistics on Chinese Visitors 

to Australia - 1999/2000 

Number of visitors 

to Australia 98,200 

Total Nights 4,697,000 

Average Length of Stay 48 nights 

Average Daily Expenditure $93.70 

Total Expenditure $440 million 

Source: Bureau of Tourism <strong>Research</strong> 

(International Visitor Survey aged 15 yrs and over) 


9

CHINA’S 

OUT-BOUND 

TOURISM TO 

AUSTRALIA 

Other interesting facts on 

the Chinese market: 

· As at January 2001, 

there were an estimated 

20 million internet users 

in China, and numbers 

are expected to exceed 

34 million by 2003 

· Australia was the first 

Western destination to 

obtain ADS status in 

1999. Europe is 

considered the biggest 

competitor as one visa 

gives Chinese visitors 

access to eight countries 

under the ‘Schengen 

Convention’ 

· Travel to Australia is a 

premium price product, 

available only to the 

upper end of Chinese 

outbound travel market. 

Australia is currently one 

of the most desirable 

holiday destinations on 

offer to potential 

travellers in Beijing, 

Shanghai and 

Guangdong Province 

Source: Australian Tourist Commission, 

Market Profile 2001/2002 

Under the agreement with Australia, each 

Chinese tour group must consist of at least 

9 people (tour leader/guide included). 

Most groups have more than 16 because 

most airlines provide one free fare for all 

groups of 15, thus covering the 

accompanying guide’s passage. In 2000, 

the average group size was 18-19 (ABS 

2001). The Chinese visitor is likely to be a 

middle-aged male travelling alone or with 

business associates. Fewer Chinese women 

Expected Number of Chinese Visitors 

to Australia 

1,500,000 

1,000,000 

500,000 

222,000 

629,000 

2002 2007 2012 

Source: Tourism Forecasting Council, April 2002 Forecasts 

1,368,000 

than men visit Australia. Of all Chinese 

visitors to Australia in 1999, 62% were 

male, and 38% were female. The 

proportion of female visitors has increased 

from only 20% in 1993. Of the 57,100 men 

who visited in 1999, 55% were 30 - 50 

years of age. Of the 37,500 women who 

visited, 45% were in the 25 - 45 age range. 

57% of all Chinese travelled alone, 13% 

were an adult couple, while 16% were 

business associates travelling together 

(BTR 2000). More than 70% had tertiary 

qualifications, making this market the 

most highly qualified travellers for any 

inbound market to Australia. The 

relative cost of travel to Australia limits 

families and China’s ‘one-child policy’ 

places a significant constraint on the 

number of children travelling. 

An examination of the patterns of group 

travel from China to Australia since the 

introduction of ADS illustrate very clearly 

the predominance of clustering around 

the three main national holiday periods: 

Chinese New Year, May Day and National 

Day. These peak periods account for more 

than 50% of all ADS visas granted since 

the scheme began operating in August 

1999. For the three peak periods in 2001, 

some 12,669 ADS visas were granted 

(Table 1), with less than 10,000 being issued 

for the other nine months of the year. The 

holiday periods are virtually the only time 

that children, free from schooling, may 

accompany adults on an overseas trip. 

According to a 1998 (CNTA) survey, 

1,810,000 Chinese were granted visas to 

ADS countries as package tourists through 

approved travel agencies. Guangdong 

Province is China’s single biggest source 

of such tourists for international tours. 

1998 saw 600,250 outbound package 

tourists from Guangdong travel agencies, 

one third of the national total. A more 

recent survey (preliminary results) indicates 

that in 2000 more than 8.45 million 

Chinese travelled internationally, 70% of 

them for leisure to ADS countries. This 

represents a growth rate of more than 

300% over two years, with Guangdong 

Province again the source for one third of 

them. 

Table 1: ADS Visa Grants for Arrivals in ‘Peak Periods’, China 


Holiday National Day May Day Chinese New Year National Day 

Date 2000 24/9/00- 24/4/00- 29/1/00- 24/9/99- 

8/10/00 8/5/00 12/2/00 8/10/99 

ADS groups 59 30 149 10 

ADS visas granted 1104 630 2813 188 

Date 2001 24/9/01- 24/4/01- 17/1/01- - 

8/10/01 8/5/01 31/1/01 

ADS groups 138 133 357 - 

ADS visas granted 2647 2528 7494 - 

% growth 2000-01 133% 343% 140% - 

groups 

% growth 2000-01 139% 300% 166% - 

visas 

Source: Australian Bureau of Statistics 

10

The Overstayer Issue 

Historically, visitors from China have 

presented one of the more serious sources 

of illegal overstaying in Australia (personal 

correspondence, Australian Department 

of Immigration and Multicultural Affairs, 

August 2001). In an effort to curb this 

activity under the agreement with 

Australia, all outbound group tours 

organized by the ATAs must be escorted 

by a qualified tour leader/guide. The tour 

leader is responsible for all contact with 

and service for the tourists, as well as for 

negotiations with their Australian 

counterparts in handling any problems 

during the trip. ATAs are penalised if they 

‘lose’ members of a group on tour in 

Australia. If 1% or more of their clients 

overstay, they are suspended from 

participating in the travel trade to Australia 

for 2-4 months. If the number is higher 

they may face a permanent ban. In order 

to prevent tourists from not returning and 

to reduce the risk in their operations, all 

of the travel agencies interviewed require 

a cash bond of 60,000 yuan to 100,000 

yuan (USD$7,500 to USD$12,250) from 

Australia-bound tourists, to be deposited 

before departure. Non-return results in 

forfeiture of the bond. It should be 

emphasised that this bond is a measure 

imposed by the ATAs themselves; it is not 

demanded by either the Australian or 

Chinese Governments. 

In addition to these procedures, the 

Shanghai Municipal Tourism Administration 

Commission (SMTAC) and the Guangdong 

Tourism Bureau have a capacity to penalise 

the ATAs. Travel agencies are required to 

lodge 100,000 yuan (USD$12,250) as a 

‘quality guarantee deposit’ to the tourism 

authorities in order to run international 

tours. Breaches of the terms and 

conditions of the agreement may result in 

the local authorities imposing their own 

penalties. Finally, while on tour in Australia, 

the tour guide will keep all the passports 

and tickets of the tour members. Australian 

Immigration Department officials regard 

the controls (both official and informal or 

self-regulatory), erected to deter 

overstaying as highly effective, reporting 

that there had been only 114 ‘incidents’ 

out of the total of 140,000 ADS visas 

granted to November 2001. (This compares 

with an estimated 60,000 overstayers from 

the UK and Europe). 

While the informal requirement for a bond 

is obviously an inhibitor to expansion of the 

Chinese outbound market to Australia, one 

advantageous result is that an ADS visa is 

now issued by the Australian consular 

authorities in Beijing, Shanghai and 

Guangzhou within three to four days. 

Whoever makes entry formalities easiest and 

fastest will do the best in Asia with regard 

to the Chinese visitor market. The bilateral 

tourism agreement with China has given 

Australia a significant advantage over most 

other non-ADS countries for whom visa 

issuance regularly exceeds one month. 

The cash bonds demanded by Chinese travel 

agents for tourists to Australia are 

considered by Australian officials to be a 

major success as a deterrent overstayer 

mechanism and are a key factor in the 

Australian Government’s decision to speed 

up visa processing for groups organised 

under the scheme because of their faith in 

the Chinese processing system. By contrast 

with the speed and ease of ADS group 

visa issue, Chinese FITs must often wait 

more than three months for a visa and it 

is not uncommon for student visas to take 

more than 12 months to be granted, with 

high rates of rejection in both instances. 

The Australian Tourist Commission, state 

tourism organisations and Australian 

industry associations take an opposing view 

about the cash bonds, seeing them as a major 

inhibitor to greatly increased numbers of 

Chinese tourists. They argue, correctly, that 

the size of the bond relative to the annual 

income of most Chinese precludes all but a 

small elite from travelling to Australia. 

However, the political situation in Australia, 

where a strong Government approach to 

illegal immigration was a major issue in the 

recently concluded national elections 

(November 2001) has created a climate 

where tourism officials are resigned to any 

change in the system for several years at least. 

In summary, the Chinese outbound tourism 

market to Australia amalgamates a number 

of characteristics and features which make 

it unique. Both Australian and Chinese 

operators must work under a tightly 

controlled governmental regime and 

familiarise themselves with the many 

regulations which govern it. Despite the 

restrictive nature of the market, it holds 

significant potential for growth with 

Chinese tour groups to Australia currently 

exceeding more than 130% growth annually. 

CHINA’S 

OUT-BOUND 

TOURISM TO 

AUSTRALIA 


please contact: 

Professor Trevor H.B. 

Sofield, PhD, 

Foundation Chair, 

Tourism Program, 

University of Tasmania 

Locked Bag 1-340G, 

Launceston 7250 

Tasmania, Australia. 

Tel: (61-3) 6324 3578 

Fax: (61-3) 6324 3652 

E-mail: 

Trevor.Sofield@utas.edu.au 

Acknowledgement 

The author is grateful for 

funding support from the 

Cooperative <strong>Research</strong> 

Centre for Sustainable 

Tourism, Australia, which 

provided a grant to 

enable the research 

embodied in this paper to 

be undertaken in both 

China and Australia. 


11

PUBLIC 

LIABILITY 

INSURANCE 

SURVEY 2002 

ADVENTURE 

TOURISM 

OPERATORS IN 

WESTERN 

AUSTRALIA 

Increases in public 

liability insurance have 

had a significant effect 

on tourism operators 

throughout Australia in 

recent times. 

Jane Seman from the 

Western Australian 

Tourism Commission 

analyses current 

premiums and the 

extent of recent 

increases for adventure 

tourism operators in 

Western Australia. 


12 

For the purposes of this 

research, public liability 

for planes/helicopters 

has been defined as the 

combined premium for 

third party and 

passenger legal liability. 

BACKGROUND AND RESEARCH 

OBJECTIVES 

Given the extensive coverage and 

awareness of rapidly increasing public 

liability insurance costs, the WATC 

determined it prudent to conduct research 

among adventure tourism operators to 

determine the exact scope of the problem 

among those most at risk. The overall 

objective of the research was to collect 

information from adventure tourism 

operators regarding: 

details of current public liability 

insurance policies, including costs of 

premiums and excesses charged 

public liability insurance costs since 1998 

response to the increasing costs in 

public liability insurance premiums 

alternative solutions to public liability 

insurance increases. 

A copy of the full report is available from 

the WATC, however a summary of the 

information is provided in this article. 

RESEARCH METHODOLOGY 

A random sample of 116 adventure 

tourism operators throughout Western 

Australia was selected from an existing 

WATC database. This database was 

supplemented and updated using current 

Table 1: Sample Characteristics - 

Type of Business Operations* 

BASE: Total Sample n=116 

% 

Bus / coach operators 34 

4WD bush and safari 20 

Boat / ferry / yacht tours 

or charters 16 

Plane / helicopter tours 

or charters 15 

Walking / bushwalking / hiking 9 

General adventure 8 

Scuba diving / diving 7 

Horse / camel riding 5 

Kayaking / canoeing 4 

Motor cycling / cycling 3 

Ballooning / parachuting / 

parasailing 2 

Other / carriage rides / 

support services 6 

* Multiple responses allowed 

yellow pages directories. Adventure 

tourism operators included any operators 

who conducted tour or charter services (ie, 

both ‘hard’ and ‘soft’ adventure tourism), 

but excluded inbound tour operators and 

wholesalers, as these were considered to 

be at lower risk of attracting public liability 

claims. 

Interviewing was conducted via telephone 

and also involved calls to insurance 

companies or brokers to supplement the 

data collected and ensure it was accurate. 

Market Equity was contracted to conduct 

the fieldwork, with questionnaire design, 

analysis and reporting conducted by 

WATC. 

SAMPLE CHARACTERISTICS 

Table 1 displays the type of business 

operations of the sample. Just over one 

third of the total sample were involved 

with bus/coach operations and one in five 

ran 4WD bush and safari tours. Next most 

common operator types were boat/ferry/ 

yacht tours or charters (16%), plane/ 

helicopter tours or charters (15%) and 

bushwalking/hiking tours (9%). Five 

percent of the total sample were involved 

with horse/camel riding activities. 

Revenue for the year 2001 ranged from 

nil up to $3.5 million. However, the 

majority of tourism operators were 

relatively small businesses, with half 

earning $120,000 or less. 

Similarly, the average number of annual 

customers showed a large range from 

22 to 200,000, with half servicing 1,400 

customers per year or less 

Over three quarters of operators had 

some form of accreditation. Almost 

four in ten (37%) were accredited with 

WA Tourist Accreditation and almost six 

in ten (57%) had some form of industry 

accreditation 

Due to small sample sizes, the 

categories of general adventure, motor 

cycling/cycling, kayaking/canoeing, 

ballooning/parachuting/parasailing and 

other have been combined into a single 

‘other’ category. Horse/camel 

operators have occasionally been 

included in this group to avoid 

identification of individual operators, 

but are otherwise presented separately 

as they appeared severely affected by 

recent increases.

SUMMARY OF RESULTS 

Costs of Premiums 

The cost of current public liability insurance premiums for adventure tourism operators 

in Western Australia ranged from $244 up to $77,000. Half paid $2,000 or less. 

The cost of current premiums were: 

• $1,000 or less for 30% of operators 

Notably, 60% of these were classified as coach/bus tour operators 

• Between $1,001 and $2,000 for 19% of operators 




• Approximately half of those with premiums over $5,000 were aviation operators 

• 2% had no public liability insurance due to excessive premiums 

Note: A minority (

PUBLIC 

LIABILITY 

INSURANCE 

SURVEY 2002 

ADVENTURE 

TOURISM 

OPERATORS IN 

WESTERN 

AUSTRALIA 

Figure 2b: Average cost of public liability premiums 1999 - 2001 (aviation) 

$20,000 

$15,000 

$10,000 

$5,000 

The average cost of premiums for nonaviation 

tourism operators remained 

relatively steady between 1998 and 

2000. 

However, premiums rose 

significantly in 2001, with the 

average increasing from $2700 to 

$3300. 

Horse/camel operators recorded the 

largest increase of any operator 

between 2000 and 2001. 

$0 

Air-total 

Air-per plane 

1999 2000 2001 

Premiums for aviation operators 

showed little change between 2000 

and 2001. 

Figure 3: Average percentage increase in premium per operator 1998 - 2002 

140% 

120% 

100% 

80% 

60% 

40% 

20% 

0% 

Total Air Dive Bus Other 4WD Boat Walk Horse 

1998-1999 1999-2000 2000-2001 2001-2002* 

* 2001-2002 shift based on very small sample size of those who paid in Jan / Feb 2002 (n=9) 

The average percentage increase per operator remained relatively steady at around 

20% between 1998 and 2000, but almost doubled between 2000 and 2001 to 36%. 

Initial figures for 2001/2002 indicate large increases were still being charged, 

with the average increase in premium per operator being 43%. 


There did not appear to be any difference between increases charged pre and post 

September 2001. 

This indicates the HIH collapse may have been a more significant catalyst for the 

increased premium costs than the terrorist attacks on America. 

14

v 

Figure 4: Average public liability insurance cost per paying customer (current) 

$30 

$25 

$20 

$15 

$10 

$5 

$0 

$7 

* One horse riding operator excluded from analysis due to outlier result. 

$1 

$2 

The average cost of public liability insurance per customer was $7. 

The lowest cost was for bus/coach operators at $2, the highest 

for plane/helicopter operators at $27 per person. 

$5 

TOTAL* Bus Dive Boat 4WD Walk Other/Horse* Air 

$6 

$8 

$11 

$27 

PUBLIC 

LIABILITY 

INSURANCE 

SURVEY 2002 

ADVENTURE 

TOURISM 

OPERATORS IN 

WESTERN 

AUSTRALIA 

Figure 5: Current premium as a percentage of 2001 revenue 

14% 

13% 

12% 

10% 

8% 

7% 

8% 

6% 

5% 

6% 

4% 

2% 

1% 

2% 

2% 

$2 $5 

0% 

TOTAL Dive Boat Bus 4WD Walk Other Air Horse 

3% 

$6 

$8 

In 2001, the average public liability insurance premium accounted for almost 5% 

of total revenue. 

Dive, boat and bus tour operators recorded the lowest premiums as a percentage 

of revenue, whilst horse/camel operators paid an average of 13% of their total 

revenue in public liability insurance premiums. 


15

PUBLIC 

LIABILITY 

INSURANCE 

SURVEY 2002 

ADVENTURE 

TOURISM 

OPERATORS IN 

WESTERN 

AUSTRALIA 


ADDITIONAL STATISTICS 

Approximately one third of all 

operators were charged an excess of 

between $150 and $250. 

Around one in ten were charged an 

excess of over $1,000. 

Just over eight in ten operators 

recorded no change in the excess 

charged to their policy between 2000 

and 2001. 

One in seven recorded an increase 

in their excess of 100% or more. 

In recent times, at least nine Western 

Australian operators have closed due 

to increased public liability insurance 

costs. 

Four of these were horse riding 

operators. 

One in ten operators had been refused 

insurance by at least one insurance 

company. 

Two percent have had claims 

initiated against them in the last 

year. 

Among operators that recorded an 

increase in their premium since 2000, 

one in five said they would increase 

prices (or already had) as a short term 

solution. 

Seven percent said they would 

reduce services and 6% expected to 

close down. 

Over half reported they would take 

no action. 

In the longer term (ie, 5-10 years), just 

over three in ten of those with increases 

reported expecting to close their 

business as a result of higher premiums. 

This represents a total of 28 

operators surveyed. 

15% also suggested they would 

have to reduce services. 

One in seven operators had obtained 

legal or professional advice about 

public liability. 

The vast majority (88%) had arranged 

their current insurance through a 

broker or other organisation. 

INSURANCE INDUSTRY STATISTICS 

When Australian insurance industry 

statistics were analysed, public and 

product liability insurance 1 showed a 

loss each year since 1997. Significant 

losses were incurred between 1998 and 

2000. 

The gross loss ratio of claims 

expenses to premium revenue was 

estimated to be 134% in 2000. 

The majority of the increase in 

claims payout has occurred in New 

South Wales and Victoria. 

Although Western Australia has 

recorded an increase in claims payouts 

between 1997 and 2000, gross 

premium revenue has exceeded claims 

payouts each year between 1996 and 

2000. This has made Western Australia 

one of the most profitable states for 

the public liability insurance industry. 

Western Australia is one of the few 

states that recorded a consistent 

gross profit ratio, although this was 

lowest in 2000 (at 102%). 

Since most insurance companies 

underwrite insurance on a national 

basis, Western Australian operators 

appear to be paying higher 

premiums as a result of increased 

claims in the eastern states. 

1 

Figures include product liability as public and 

product liability insurance figures have not been 

published separately since 1997. 

16

$Millions 

$1400 

$1200 

$1000 

$800 

$600 

$400 

$200 

$0 

Figure 6: Premium Revenue and Claims Expense - Australia* 

1996 1997 1998 1999 2000 

Gross Premium Revenue ($M) Claims Expense ($M) 

PUBLIC 

LIABILITY 

INSURANCE 

SURVEY 2002 

ADVENTURE 

TOURISM 

OPERATORS IN 

WESTERN 

AUSTRALIA 


$80 

$70 

$60 

$50 

$40 

$30 

$20 

$10 

$0 

Figure 7: Premium Revenue and Claims Expense - Western Australia* 

1996 1997 1998 1999 2000 

Gross Premium Revenue ($M) Claims Expense ($M) 



Jane Seman, 

Acting Manager 

<strong>Research</strong> and Analysis, 

on 9220 1818 or 

email 

jseman@tourism.wa.gov.au 


$600 

$500 

$400 

$300 

$200 

$100 

$0 

Figure 8: Premium Revenue and Claims Expense - NSW and VIC* 

NSW 

VIC 

1996 1997 1998 1999 2000 

Gross Premium Revenue ($M) 

Claims Expense ($M) 


$400 

$300 

$200 

$100 

$0 

1996 1997 1998 1999 2000 

Gross Premium Revenue ($M) 

Claims Expense ($M) 

* Source: Australian Prudential Regulation Authority (APRA), Selected Statistics on the General Insurance Industry, 1996-2000. 


17

UNIVERSITY 

RESEARCH 

PROJECTS 


universities are highly 

involved in conducting 

tourism research projects 

specific to this State. This 

article lists some examples 

of the types of projects 

currently being 

conducted. Readers are 

encouraged to contact 

the researchers to obtain 

further information about 

specific projects of 

interest or to enquire 

about other tourism 

research projects. 

Tourism <strong>Research</strong> at Curtin University 

· Peel Heritage and Tourism Precinct Development 

Steve Smith, Division of Humanities, in conjunction with the Peel Regional 

Development Commission 

· Floriculture and Tourism 

George Curry and Roy Jones, Division of Humanities 

· Camping Surveys at Ningaloo 

Roy Jones, Division of Humanities 

· Longitudinal Visitation Surveys of the Gascoyne Coast 

David Wood, Division of Humanities 

· Benchmarking for Small and Medium Tourism Enterprises 

Jack Carlsen, Curtin Business School): 

· International Students and WA Tourism 

Tekle Shanka, Curtin Business School 

· Employment Conditions in the Airline Industry 

Ruth Taylor, Curtin Business School 

· Wine Tourism 

Leyland Pitt, Curtin Business School 

· Abrolhos Islands Tourism Development 

Lindsay Collins, Curtin Business School 

For further information, please contact: 

Professor Jack Carlsen PhD 

MUI Chair in Tourism and Hospitality Studies 

Curtin Business School 

Curtin University of Technology 

Kent Street, Bentley WA 6102 

Ph: (08) 9266 1132 

Fax: (08) 9266 2872 

E-mail: CarlsenJ@cbs.curtin.edu.au 

Tourism <strong>Research</strong> at Edith Cowan University 

· The Effect of Time upon Long-term Visitor Perceptions of Service Quality 


Martin O’Neill Ph.D 

Senior Lecturer & <strong>Research</strong> Manager 

School of Marketing, Tourism and Leisure 

Edith Cowan University 

Joondalup 

Western Australia 6027 

Ph: (08) 9400 5472 Fax: (08) 94005840 

E-mail: m.o_neill@ecu.edu.au 

Cooperative Tourism <strong>Research</strong> 

· Regional Tourism Modelling - a study for the South West Tapestry 


Diane Lee, PhD 

Tourism Programme 

Murdoch University 

Dixon Road, Rockingham WA 6168 

Ph: (08) 9360 7018 Fax: (08) 9360 7091 

E-mail: dlee@central.murdoch.edu.au 


18 

Tourism <strong>Research</strong> at Murdoch University 

· The Application of RelQual to measure Relationship Quality among Stakeholders 

in the SW Tapestry Region 


Aloysius Lee 

Murdoch University 

Ph: (08) 9360 7019 

E-mail: aloylee@hotmail.com

The impact that tourism has on the Western Australian economy is an important 

factor when considering this industry. This article briefly looks at the impact of 

tourism in Western Australia in terms of visitor numbers, visitor expenditure, 

employment and provides other interesting facts about tourism in general. 

In 1999/2000, Western Australia attracted over 6.8 million visitors to WA who spent an 

estimated $4.2 billion. These people are defined as those who spend at least one night 

and 40km or more away from home for any purpose other than travelling to and from 

work. The total visitor numbers (including intrastate and US Navy) can be broken 

down into three main categories as follows: 

VALUE OF 

TOURISM TO 

WESTERN 

AUSTRALIA 

Priscilla Chua details 

some interesting facts 

about the impact of 

tourism to the Western 

Australian economy. 

Visitor Numbers 

Visitor Expenditure 

Interstate 907,000 $1.140 billion 

Intrastate 5,303,000 $1.973 billion 

International 590,000 $1.049 billion 

Total 6,800,000 $4.162 billion 

Source: Bureau of Tourism <strong>Research</strong> (National Visitor Survey, International Visitor Survey) 

Each time the attractions in our State are shared with visitors from around the world, 

Western Australia benefits in more way than one. In Western Australia alone, it is 

estimated that up to 80,000 tourism jobs or 8.7% of the State’s workforce were tourism 

related employment. 

Globally, the tourism industry will continue to expand and is estimated that by 2010 

tourism will be the second largest global industry after agriculture and is expected to 

grow by 3.7 per cent a year over the next decade. International tourism to Western 

Australia is expected to grow by an average of 7.5 per cent a year over the same 

period. It is estimated that by 2005 tourism will generate $5 billion a year for the WA 

economy - close to $14 million per day. 

And did you know..? 

The tourism industry employs one in every 12 Western Australian workers and provides 

the State’s economy with a significant export earner worth more than $1 billion a 

year. 

Regional WA benefits greatly from tourism with 60% of all visitors travelling to 

regional centres. This creates and maintains tourism jobs for rural and remote 

Western Australia which helps to retain young people and their families in the 

regions. 

Tourism is worth more than $11 million a day to Western Australia. 

Every international flight on average brings passengers worth $200,000 to Western 

Australia. 

The annual salaries of 50,000 Western Australians could be paid by money spent by 

inbound visitors to the State. 

Compared with the previous year, for every additional $1 million spent by visitors to 

Western Australia, 13 jobs are created in the WA workforce. 

Every Western Australian on average benefits by $2,000 a year from tourist spending. 

Inbound tourism contributes more than $1 billion in taxes to the Federal 

Government. This money is used to fund social programs and infrastructure, such 

as schools and hospitals. 

To seat all international visitors to WA at the same time to see an Eagles/Dockers 

football match, the ground would have to be 13 times the size of Subiaco Oval. 

A single file of all international visitors to Western Australia would stretch from 

Perth to Bunbury. 

For further information 


Priscilla Chua, 

Market <strong>Research</strong> 

Analyst, 

on 9220 1831 

or email 

pchua@tourism.wa.gov.au 


19

TOP SHELF 

This page is dedicated to 

creating awareness 

amongst the tourism 

industry to the many 

sources available at the 


Tourism Commission 

(WATC) Library. The 

following books, texts 

and articles are examples 

of such sources. 

Linda Thompson, Librarian 

for the WATC compiles 

Top Shelf. 

For further information or 

to make an appointment 

to visit the WATC Library, 


Linda on 9220 1820 or 

email: 

lthompson@tourism.wa.gov.au. 


Brand Western Australia : ‘Holidays of an 

entirely different nature’ 

Shane R. Crockett and Leiza J. Wood. In: 

Destination branding:creating the unique 

destination proposition/edited by Nigel 

Morgan, Annette Pritchard and Roger 

Pride.-Oxford : Butterworth-Heinemann, 

2002, p. 124-147. 

This chapter outlines the Western Australian 

Tourism Commission’s approach to 

destination branding. The 

cornerstone of the strategy 

was a partnership between 

government and industry. 

This partnership forms the Department 

platform of all policy 

direction, including 

Partnership 21: 2000-2005 

Tourism Industry Plan (WATC, 

2000), that is paving the way 

for tourism growth in 

Western Australia. Brand 

Western Australia (Brand WA) 

is a co-operative marketing 

strategy that aims to 

USEFUL WEBSITES 

of 

Industry, Tourism and 

Resources http:// 

www.industry.gov.au 

(Tourism section) 

A comprehensive site 

covering the Federal 

Government’s tourism 

policy and programs. 

Includes tourism related 

differentiate Western 

Australia in the global government 

marketplace. It was 

developed for the state so 

that any person or organisation promoting 

Western Australia’s destination attributes, 

products, services and investments could do 

so consistently. The chapter describes 

Western Australia’s brand development and 

extension strategies in the context of 

fundamental brand-building principles. It 

outlines the macrotourism environment of 

Western Australia, analyses the repositioning 

challenge and then summarises the 

development of Brand WA. Finally, it 

discusses and evaluates the state’s fully 

integrated destination marketing, 

development and partnership strategies. 

and 

industry contacts. 

Business plans:for tourism organisations/ 

prepared by Advance Tourism-Mt 

Waverley, Vic: Advance Tourism, 2000. This 

reference is designed to provide practical 

information to tourism associations and 

others in the tourism industry. It includes a 

model of a business plan for operational 

management. 

Cultural differences between Asian tourist 

markets and Australian hosts, part 1 

Yvette Reisinger and Lindsay W. Turner. In 

Journal of travel research, Vol. 40, no. 3, 

(2002), p. 295-315. 

This article analyses five language groups of 

Asian tourists to Australia: Indonesian, 

Japanese, Korean, Mandarin and Thai. The 

cultural differences between Asian tourists 

and Australian service providers are 

identified. The dimensions of the identified 

differences are determined by principal 

components analysis. The results indicate 

that in 73 of 117 areas of measurement, 

there are significant differences between 

Asian and Australian samples. The Japanese 

are the most distinct from the Australian 

sample, followed by the Korean sample. The 

implications of the results for tourism 

industry managers and 

marketers are discussed. Part 

2 will appear in the May 2002 

issue. 

The hidden power of 

advertising:how low 

involvement processing 

influences the way we choose 

brands 

Robert Heath-Henley-on- 

Thames, Oxfordshire : Admap 

Publications, 2001. 

A recent review of neuroscience 

concludes that unlike just about 

any other subject, the more we 

study the brain, the more 

complicated and confusing it 

seems to get. Nevertheless, two 

things are true. First, we know a great deal 

more about the brain than we did even ten 

years ago. Secondly, we can be increasingly 

confident that many of the things we thought 

we knew about the brain and the mind are 

probably incorrect. In particular, many of the 

underlying paradigms of cognitive 

psychology, about learning, attention and 

memory, are seriously called into question by 

new findings. Commonly shared assumptions 

about how brand decisions are made and the 

ways advertising is processed by the mind, 

derive in large part from our assumptions 

about how the brain works. If we have to 

accept new paradigms about the brain, we 

may find we need to accept new paradigms 

for advertising and branding. 

Measuring the role of tourism in OECD 

economies : the OECD manual on tourism 

satellite accounts and employment - Paris, 

France : Organisation for Economic Cooperation 

and Development, c2000. 

This document summarises a decade of new 

methods to analyse tourism and tourismrelated 

employment, standardise and ensure 

the relevance of tourism statistics, increase 

consistency between the various systems in 

place at an international level, and create 

awareness among Member countries of the 

implementation of such tools and 

interpretation of the results. 

20

For further information contact: 

Touristics 

The Editor 

Western Australian Tourism Commission 

6th Floor 

16 St Georges Tce 

Perth WA 6000 

Telephone: 08 9220 1818 

Facsimile: 08 9220 1702 

Email: research@tourism.wa.gov.au 

TOURISTICS VOLUME 18 NUMBER 1 2002 

Thank you for your support and interest in Touristics. Subscriptions 

for the two editions of Touristics in 2002 remain at a low price of 

$22.00 per year. To ensure you receive future copies of Touristics, 

Western Australia’s premier Tourism <strong>Research</strong> Magazine, please 

complete your subscription request details below and enclose 

with payment to the above address: 

NAME: ...................................................................................... 

POSITION:................................................................................. 

COMPANY/INSTITUTION: ............................................................ 

................................................................................................ 

ADDRESS: ................................................................................. 

................................................................................................ 

TELEPHONE: ............................................................................. 

FACSIMILE: ................................................................................ 

EMAIL: ......................................................................................

Research Brief on Current Tourism Views and Issues in Western ...

Create successful ePaper yourself

Delete template?

Save as template?