NOTES
ABOUT THIS PUBLICATION
This publication presents the key results of the Tourism Satellite Account (TSA) for the years 1997-98 to 2004-05. Work on the TSA has been funded by the Department of Industry, Tourism and Resources (DITR).
REVISIONS IN THIS ISSUE
The economy wide national accounting aggregates for 1997-98 to 2004-05 have been revised as a result of the historical revision of GDP and component series published in the Australian System of National Accounts (cat. no. 5204.0) released on 7 November 2005. The revisions were explained in an accompanying feature article 'Updated national accounts annual benchmarks' which can be found on the ABS web site (<https://www.abs.gov.au>). These historic revisions have caused the ratios of tourism to overall economic activity to be revised down by between 0.1 and 0.2 percentage points in all years since 1997-98. This has occurred because of the upward revisions to non-tourism industries thus decreasing the share attributed to tourism related industries.
CHANGES IN THIS ISSUE
The 2004-05 publication reflects results from the annual TSA update process where estimates for the latest year are modelled using movements in visitor consumption, and consequently a less detailed set of information is presented.
DATA VALUES AND ROUNDING
All values, unless otherwise indicated, are shown in Australian dollars rounded to the nearest million. Where figures have been rounded, discrepancies may occur between the sums of the component items and totals.
NEXT ISSUE
The 2005-06 issue of this publication is expected to be released in April 2007.
INQUIRIES
For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Jai Kookana on Canberra (02) 6252 5183.
ANALYSIS OF RESULTS
KEY RESULTS
Tourism GDP represents the total market value of Australian produced goods and services consumed by visitors after deducting the cost of goods and services used up in the process of production. Tourism accounted for $32.6 billion of total GDP in 2004-05. This is an increase of 1.9% from 2003-04. In contrast, total GDP grew by 6.4% in current prices.
The TSA does not present volume estimates so the growth rates in current prices referred to here also reflect the effects of price change. One way around this is to compare the tourism industry's share of GDP over time. In 2004-05 the tourism industry share of GDP was 3.7% which is the lowest share of GDP since the TSA was first compiled in 1997-98. This is the fourth annual decline since the share peaked in 2000-01.
The high tourism share of GDP in 2000-01 was largely due to price increases in tourism services resulting from the introduction of the GST and the volume impact arising from the Olympic Games. During 2001-02 and 2002-03 external events such as terrorism and the Severe Acute Respiratory Syndrome (SARS) scare caused a decline in both international visitors to Australia and the willingness of Australians to travel overseas.
The key factors behind the fall in the tourism share of GDP in 2003-04 and 2004-05 were that Australians travelled less in Australia and more overseas, and that non-tourism related industries grew faster than tourism related industries. Reflecting this is the flat growth in domestic tourism consumption (1.3%), compared to total outbound expenditure by Australians travelling overseas which rose 8.3% in 2004-05. This has happened despite a surge in consumption by international visitors of 5.4% particularly those from New Zealand, the United Kingdom, Japan and the United States of America.
SELECTED TOURISM AGGREGATES
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. The tourism industry share of total industry gross value added in 2004-05 was 3.2%. This represents the lowest share since 1997-98, having declined from its peak of 4.1% in 1997-98 and 1998-99. The tourism industry share for 2004-05 has declined, as a result of tourism GVA growing slower (1.8%) than GVA for the whole economy (6.8%).
GROWTH IN INDUSTRY GROSS VALUE ADDED, Current prices
Tourism continues to contribute significantly to employment and Australia's exports. The tourism industry share of total employment remained steady in 2004-05 at 5.6% compared with its share of 5.9% between 1997-98 and 2000-01. The steadiness in the tourism share of employment in 2004-05 was due to similar percentage movements in tourism employment (2.5%) and total employment of 2.3%.
TOURISM SHARE OF THE AUSTRALIAN ECONOMY - 2004-05
Tourism contributed 11.1% of total exports of goods and services in 2004-05, lower than in 2003-04 when tourism accounted for 12.1% of exports.
Domestic visitors generated 76% of tourism industry GDP in 2004-05 while international visitors generated 24%.
TOURISM INDUSTRY GROSS VALUE ADDED
In 2004-05, the industries which accounted for the largest share of tourism gross value added were Air and water transport (13.7%), Accommodation (11.8%), Cafes, restaurants and takeaway food outlets (10%), and Other retail trade (8.8%). These shares have been reasonably steady since 1997-98.
TOURISM GROSS VALUE ADDED, By selected industries |
|  |
| 1997-98 | 2000-01 | 2003-04 | 2004-05 | |
| Tourism gross value added | Share of total value added | Tourism gross value added | Share of total value added | Tourism gross value added | Share of total value added | Tourism gross value added | Share of total value added | |
| $m | % | $m | % | $m | % | $m | % | |
| |
| Air & water transport | 3 211 | 14.7 | 3 727 | 14.9 | 3 521 | 13.5 | 3 617 | 13.7 | |
| Accommodation | 2 400 | 11.0 | 2 775 | 11.1 | 2 941 | 11.3 | 3 115 | 11.8 | |
| Cafes, restaurants & takeaway food outlets | 2 209 | 10.1 | 2 501 | 10.0 | 2 599 | 10.0 | 2 644 | 10.0 | |
| Other retail trade | 2 079 | 9.5 | 2 124 | 8.5 | 2 295 | 8.8 | 2 341 | 8.8 | |
| All other industries | 11 994 | 54.8 | 13 917 | 55.6 | 14 660 | 56.3 | 14 762 | 55.7 | |
| Total | 21 894 | 100.0 | 25 044 | 100.0 | 26 016 | 100.0 | 26 479 | 100.0 | |
| |
COMPARISON WITH 'NON-TOURISM' INDUSTRIES
Tourism contributed $26.5 billion to industry gross value added in 2004-05. When compared to the traditional industries published in ABS statistics using Australia and New Zealand Standard Industrial Classification (ANZSIC) divisions, the gross value added of the tourism industry ranks thirteenth out of the seventeen industry divisions. Tourism gross value added exceeded that of Communication services, Electricity, gas and water supply, Personal and other services, Accommodation, cafes and restaurants, and Cultural and recreational services.
TOURISM CONSUMPTION
Total tourism consumption increased by 2.3% in 2004-05. This was driven by relatively strong growth in consumption by international visitors of 5.4% ($18.3b) and a 1.3% increase in domestic travel consumption. Tourism consumption by domestic households rose from $47.4 billion to $47.7 billion in 2004-05, an increase of 0.7%. Consumption by business/government grew from $8.3 billion to $8.7 billion in 2004-05, an increase of 4.8%.
GROWTH IN TOURISM CONSUMPTION
There were mixed movements in the consumption of tourism products among domestic and international travellers. The total tourism consumption for the products that increased between 2003-04 and 2004-05 were Motor vehicle hire and lease (10.8%), Education (9.0%) and Alcoholic beverages and other beverages (7.9%). The tourism products for which the consumption declined were Repair and maintenance of motor vehicles (-19.4%) and Other tourism goods and services (-2.3%).
The movements in tourism consumption were driven by varying movements in the domestic and international visitor consumption splits combined with differences in consumption patterns by both type of visitor. Long distance passenger transportation is the dominant tourism product consumed by domestic business / government (39.5%) and international visitors (26.3%). In contrast, domestic household visitor consumption is dominated by Shopping, including gifts and souvenirs (19.9%), and Takeaway and restaurant meals (19.1%).
Domestic visitors contributed 76% of total tourism consumption in 2004-05 while the international visitor contribution was 24%. Of all domestic visitors, domestic households accounted for 85% and domestic business/government accounted for 15%.
The bulk of domestic tourism consumption was by those visitors who stayed away overnight (79%), with day visitors accounting for the remainder (21%).
SHARE OF TOURISM CONSUMPTION, Selected tourism products - By type of visitor - 2004-05 |
| |
| Households | Business/government | International | All visitors | |
| % | % | % | % | |
| |
| Long distance passenger transportation | 8.6 | 39.5 | 26.3 | 16.5 | |
| Shopping (including gifts & souvenirs | 19.9 | 0.3 | 12.3 | 15.7 | |
| Takeaway & restaurant meals | 19.1 | 6.2 | 7.3 | 14.7 | |
| Accommodation services | 6.8 | 23.2 | 13.3 | 10.3 | |
| Food products | 9.5 | 0.6 | 7.4 | 7.9 | |
| Fuel (petrol, diesel) | 7.0 | 15.0 | 1.3 | 6.5 | |
| Taxi products | 0.4 | 2.9 | 0.7 | 0.7 | |
| All other tourism products | 28.7 | 12.4 | 31.5 | 27.5 | |
| Total | 100.0 | 100.0 | 100.0 | 100.0 | |
| |
Tourism consumption during 2004-05 increased by 2.3%. This was driven by a 5.4% increase in international visitor consumption and a 4.7% increase in business/government consumption over this period. Tourism consumption recorded its strongest growth during 2000-01 of 10.7%, which reflected the impact of GST on the price of services and expenditure on Olympic tickets.
INTERNATIONAL TRADE IN TOURISM
Tourism makes an important contribution to Australia's export earnings. In 2004-05, international visitors consumed $18.3 billion worth of goods and services produced by the Australian economy. This represented 11.1% of the total exports of goods and services. This figure is consistent with the growth in export of goods and services for the whole economy in 2004-05 of 13.2%.
EXPORTS OF TOURISM GOODS AND SERVICES |
| |
| 1997-98 | 1998-99 | 1999-00 | 2000-01 | 2001-02 | 2002-03 | 2003-04 | 2004-05 | |
| |
| International visitor consumption ($m) | 12 792 | 13 445 | 14 610 | 17 140 | 17 107 | 16 656 | 17 317 | 18 257 | |
| Total exports ($m) | 114 005 | 112 552 | 126 863 | 154 669 | 154 778 | 149 691 | 144 676 | 163 845 | |
| Tourism share of exports (%) | 11.2 | 11.9 | 11.5 | 11.1 | 11.1 | 11.1 | 12.0 | 11.1 | |
| Growth in international visitor consumption (%) | . . | 5.1 | 8.7 | 17.3 | -0.2 | -2.6 | 4.0 | 5.4 | |
| Growth in total exports (%) | . . | -1.3 | 12.7 | 21.9 | 0.1 | -3.3 | -3.4 | 13.2 | |
| |
| . . not applicable |
Exports of tourism goods and services compare favourably with Australia's 'traditional' export products. For example, exports of tourism products are greater than coal, or iron, steel and non-ferrous metals, but less than food and live animals.
SELECTED EXPORT COMMODITIES, Percentage of total exports |
| |
| 1997-98 | 1998-99 | 1999-00 | 2000-01 | 2001-02 | 2002-03 | 2003-04 | 2004-05 | |
| % | % | % | % | % | % | % | % | |
| |
| Coal, coke and briquettes | 8.4 | 8.3 | 6.6 | 7.0 | 8.7 | 8.0 | 7.6 | 10.5 | |
| Iron, steel, non-ferrous metals | 6.4 | 6.2 | 7.1 | 6.7 | 6.2 | 5.6 | 5.5 | 5.3 | |
| Food and live animals | 14.1 | 13.8 | 13.3 | 13.4 | 14.5 | 12.3 | 12.7 | 12.0 | |
| Tourism products and services | 11.2 | 11.9 | 11.5 | 11.1 | 11.1 | 11.1 | 12.0 | 11.1 | |
| |
| International Trade in Goods and Services, Australia (cat. no. 5368.0). |
TOURISM EMPLOYED PERSONS
The tourism industry employed 550,100 persons in 2004-05. The number of tourism employed persons grew 8.1% between 1997-98 and 2004-05, slower than the growth rate in total employed persons (13.6%) over that period. Consequently, the tourism share of total employed persons has fallen from 5.9% in 1997-98 to 5.6% in 2004-05.
The tourism share of total employment is higher than the tourism share of industry gross value added. This is because tourism tends to be more labour intensive than other forms of economic activity.
The Retail trade industry generated the most tourism employment (26%). The Retail trade, Accommodation, and Cafes and restaurants industries account for more that half of the employment generated by tourism.
GROWTH IN TOURISM EMPLOYED PERSONS, By selected industries
VISITOR NUMBERS
Trips by domestic visitors declined in 2004-05 by 4.2%. The number of overnight trips decreased by 2.9% while the number of day trips decreased by 4.9%.
There were over 5.4 million short term international visitor arrivals to Australia during 2004-05. The 6.9% increase in 2004-05 follows the significant growth of 8.6% experienced in 2003-04, which was a rebound from two years of decline in 2001-02 and 2002-03.
GROWTH IN VISITOR NUMBERS
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