ANALYSIS OF RESULTS


KEY RESULTS

Tourism is not an industry or product in international statistical standards but it is commonly considered an industry by tourism researchers and economic analysts. In the Australian Tourism Satellite Account (TSA), the direct contribution of the tourism industry to the Australian economy has been measured using the demand generated by visitors and the supply of tourism products by domestic producers.

Internal tourism consumption is the total value of goods and services consumed by both resident and non-resident visitors within Australia. It is measured in purchasers' prices (the price paid by the tourism consumer). In 2009-10 internal tourism consumption increased by 2.0% to $93,566m. The receipts of Australian producers of tourism goods and services exclude product taxes like the Goods and Services Tax (GST) and include subsidies (collectively known as net taxes). In 2009-10 net taxes on tourism products increased by 0.1% to $6,929m.

Imported goods and services consumed by visitors are not part of domestic production by Australian industries. The cost to retailers of imported goods sold directly to visitors decreased by 6.7% to $6,637m in 2009-10. Over the same period, internal tourism consumption at basic prices (internal tourism consumption at purchaser prices less imports and net taxes on tourism products) has increased by 2.9% to $80,000m.

In the case of retail goods purchased by visitors, only the retail margin contributes to direct tourism output, value added and Gross Domestic Product (GDP). This is because it is deemed that only the retailer has a direct relationship with the visitor and is therefore part of the tourism industry. As a consequence the output, and consequently value added, attributed to other (than retail) industries is excluded from the value of direct tourism output. Direct tourism output is therefore equal to internal tourism consumption at basic prices less the cost to retailers of domestic goods sold directly to visitors. In 2009-10, direct tourism output has increased by 2.9% to $64,155m.

When producing tourism goods and services Australian businesses use goods and services produced and supplied by other businesses. These are known as intermediate inputs and in 2009-10 increased by 2.6% to $33,187m.


DIRECT TOURISM GROSS VALUE ADDED

Industry gross value added measures the value of production exclusive of product taxes such as the GST. It is the preferred national accounts measure of the production of industries because it is free from distortions in prices caused by changes in tax rates or the introduction of new taxes.

Direct tourism gross value added is calculated by subtracting tourism intermediate inputs from direct tourism output at basic prices. In 2009-10 direct tourism gross value added increased by 3.2% to $30,968m. Total industry gross value added increased by 2.2% to $1,197,780m, resulting in tourism share of value added remaining unchanged at 2.6%. When comparing tourism to other industries and the total economy it must be understood that tourism is not a distinct industry, rather it comprises a portion of the economic activity classified to ANZSIC industries in the core national accounts.

DIRECT TOURISM GROSS DOMESTIC PRODUCT (DIRECT TOURISM GDP)

Direct tourism GDP is calculated by adding tourism net taxes on products to direct tourism gross value added. In the case of goods, tourism net taxes on products will only include the net taxes attributable to retail trade activities, consistent with the derivation of other tourism supply measures. In 2009-10 direct tourism GDP increased by 3.2% to $33,886m in contrast to GDP for the Australian economy which grew by 2.3%.

All the aggregates above are presented in current price terms, and so include the effects of price change as well as the volume of tourism activity. Volume estimates of tourism have not been compiled because of conceptual issues involved in deflating the supply side estimates. In the absence of volume estimates, the tourism share of industry GDP is presented. In 2009-10 the tourism share of GDP was unchanged at 2.6%. Tourism share of GDP has declined steadily since a peak of 3.4% in 2000-01. While the peak in 2000-01 was heavily impacted by price increases in tourism services, resulting from the introduction of the GST and the volume impact of the Olympic Games, the overall trend of declining share has continued over a long period.


COMPONENTS OF TOURISM INDUSTRY GROSS VALUE ADDED

Accommodation; Air, water and other transport; Cafes, restaurants and takeaway food services and Other retail trade continue to be the most important tourism industries, combined accounting for 56.0% of direct tourism gross value added in 2009-10.

Direct tourism gross value added increased by $960m (3.2%) in 2009-10 to $30,968m. The tourism related industries representing the largest contributors to the increase in tourism gross value added in this period were Ownership of dwellings (up $193m, 8.1%), Education and training (up $159m, 6.9%) and Cafes, restaurants and takeaway food services (up $124m, 3.7%). Travel agencies and tour operator services (down $16m, -1.1%) and Casinos and other gambling services (down $2m, -1.0%) were the only negative contributors to direct tourism gross value added.


COMPONENTS OF TOURISM CONSUMPTION

Internal tourism consumption increased by 2.0% to $93,566m in 2009-10 following a fall of 1.0% in 2008-09. Domestic tourism consumption increased by 3.3% to $70,740m and international tourism consumption decreased by 2.1% to $22,826m.

In the period 2009-10, domestic tourism consumption represents 75.6% of total tourism consumption, whereas international consumption represents 24.4%. The international component of total internal tourism consumption has decreased in share from 25.4% in 2008-09 following increases in share over the three previous years.

Of the 3.3% increase in domestic tourism consumption in 2009-10, consumption by households increased by $2,102m (3.6%) and consumption by business and government increased by $190m (1.8%).

The major contributors to the increase in domestic tourism consumption in this period were Long distance passenger transportation (up $626m, 6.5%); Takeaway and restaurant meals (up $497m, 4.4%); Recreational, cultural and sporting services (up $312m, 11.3%); Other tourism goods and services (up $285m, 14.8%) and Accommodation services (up $279m, 4.0%). The major contributors to the decrease in international tourism consumption were Long distance passenger transportation and Accommodation services, down 12.5% and 5.3% respectively.

SHARE OF TOURISM CONSUMPTION, Selected tourism products - By type of visitor: 2009-10
	Households	Business/government	International	All visitors
	%	%	%	%
Long distance passenger transportation	10.9	34.2	19.3	15.6
Takeaway & restaurant meals	16.9	15.1	10.5	15.1
Shopping (including gifts and souvenirs)	16.4	-	12.2	13.5
Accommodation services	8.5	19.4	13.7	11.0
Fuel (petrol, diesel)	9.5	11.4	1.7	7.8
Food products	9.0	2.1	8.2	8.0
Alcoholic beverages and other beverages	4.7	3.5	4.7	4.6
Taxi fares	0.4	2.8	1.2	0.9
All other tourism products	23.7	11.4	28.6	23.5
Total	100.0	100.0	100.0	100.0
- nil or rounded to zero (including null cells)

The major contributors to total tourism consumption continue to be Long distance passenger transportation, Takeaway and restaurant meals, Shopping (including gifts and souvenirs) and Accommodation services. Combined, these products contribute 55.2% of total tourism consumption in 2009-10. This combined contribution to total tourism consumption is down 0.5% on 2008-09, mainly driven by decreases in contribution to total tourism consumption of Shopping, gifts and souvenirs (down 0.4%) and Long distance passenger transportation (down 0.3%), offset by Takeaway and restaurant meals which increased its share of total consumption (up 0.3%).


INTERNATIONAL TRADE IN TOURISM

Tourism exports are domestically produced goods and services consumed by international visitors to Australia. Tourism imports are consumption of overseas produced goods and services by Australians on overseas trips. Since 2004-05 tourism imports have exceeded tourism exports, resulting in deficits in the tourism balance of trade (tourism exports less tourism imports). In 2009-10 the deficit totalled $5,048m.

TOURISM EMPLOYED PERSONS

The tourism industry employed 500,500 persons in 2009-10, a increase of 6,900 (1.4%) on 2008-09. This compares with an increase of 1.3% in total employed persons in the Australian economy. Tourism share of total employment remains steady at 4.5% when compared to 2008-09. Since 2001-02, the tourism share of total employment has decreased by 0.5 percentage points.


VISITOR NUMBERS

The increase in tourism consumption by Same day domestic visitors in 2009-10 (up 6.7%) was the result of both an increase in the number of visitors (up 6.7%) and a relatively unchanged per visitor consumption. The increase in tourism consumption by Overnight domestic visitors (up 2.3%) was the result of a small decrease in the number of visitors (down 1.0%) combined with an increase in the per visitor consumption (up 3.4%).

The decrease in international tourism consumption in 2009-10 (down 2.1%) was the result of an increase in the number of visitors (up 2.7%) combined with a decrease in per visitor consumption (down 4.7%). The overall increase in the number of international visitors to Australia was driven mainly by gains in the number of visitors from the United States of America, China and Indonesia.

The number of Australians travelling overseas grew by 15.9% in 2009-10, with the growth driven by increased number of Australians visiting Indonesia, the United States of America and New Zealand.