TOURISM INDUSTRY
Tourism is not an industry in the conventional sense. In the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 (1292.0), industries are defined on the basis of the primary goods and services which they produce. Tourism, however, is defined according to the status of the consumer. That is, it is the characteristics of the consumer that determine whether the production is included within the scope of tourism. For example, expenditure on a restaurant meal by a visitor contributes to tourism's share of the economy, whereas expenditure by a local resident does not.
Visitors, in purchasing products outside of their usual environment, have a positive economic impact on their destination by generating additional consumption at the destination over and above that generated by the resident consumers. This additional consumption provides the basis for the economic activity generated by tourism.
Visitors can be classified into national (domestic) and international visitors. National visitors consist of Australian residents who travel outside their usual environment within Australia. They include both overnight visitors (staying one or more nights at a location) and same day visitors. International visitors are those persons who travel to a country other than that in which they have their usual residence.
The contribution of an industry to the overall production of goods and services in an economy, gross domestic product (GDP), is measured by gross value added (GVA). Information on the relationship between industry GVA and GDP is provided in the Industry structure and performance chapter. A Tourism Satellite Account (TSA) is recognised internationally as the best method for measuring the economic contribution of tourism. Tourism GVA and GDP are the major economic aggregates derived in the TSA.
The tourism industry share of total GVA in 2005-06 was 3.5% (table 23.1). This share has declined from a peak of 4.1% in 2001-02.
23.1 TOURISM SHARE OF GROSS VALUE ADDED AND GROSS DOMESTIC PRODUCT |
|  |
| | | 2001 - 02 | 2002 - 03 | 2003 - 04 | 2004 - 05 | 2005 - 06 | |
| |
| Tourism characteristic industries GVA(a) | | | | | | | |
| Travel agency and tour operator services | $m | 1 110 | 1 121 | 1 267 | 1 284 | 1 508 | |
| Taxi transport | $m | 218 | 220 | 228 | 221 | 254 | |
| Air and water transport | $m | 3 646 | 4 064 | 4 089 | 4 229 | 4 394 | |
| Motor vehicle hiring | $m | 539 | 562 | 528 | 585 | 636 | |
| Accommodation | $m | 3 517 | 3 641 | 3 676 | 3 838 | 4 247 | |
| Cafes, restaurants and food outlets | $m | 2 845 | 2 947 | 2 942 | 2 974 | 3 080 | |
| Total | $m | 11 874 | 12 554 | 12 730 | 13 129 | 14 118 | |
| GVA of tourism connected industries(b) | $m | 12 778 | 13 156 | 13 314 | 13 363 | 13 851 | |
| GVA of all other industries(c) | $m | 2 775 | 2 842 | 3 322 | 3 200 | 3 323 | |
| Tourism GVA | $m | 27 427 | 28 552 | 29 365 | 29 693 | 31 293 | |
| Tourism share of GVA | % | 4.1 | 4.0 | 3.8 | 3.6 | 3.5 | |
| Net taxes on tourism products | $m | 5 680 | 5 857 | 5 897 | 5 945 | 6 299 | |
| Tourism GDP | $m | 33 106 | 34 409 | 35 262 | 35 638 | 37 592 | |
| Tourism share of GDP | % | 4.5 | 4.4 | 4.2 | 4.0 | 3.9 | |
| |
| (a) Tourism characteristic industries have at least 25% of their output consumed by visitors. |
| (b) Tourism connected industries are those industries not classified as characteristic that have products which are consumed by visitors in volumes which are significant. |
| (c) The share of GVA of all industries that provide outputs to visitors not included in characteristic or connected industries. |
| Source: Australian National Accounts: Tourism Satellite Account (5249.0). |
The tourism industry employed 464,500 people in 2005-06 (table 23.2). The number of tourism employed persons grew 4.0% between 2001-02 and 2005-06, slower than the growth in total employed persons (9.8%) over that period. Consequently, the tourism share of total employed persons has fallen from 4.9% in 2001-02 to 4.6% in 2005-06.
23.2 TOURISM INDUSTRY EMPLOYMENT(a) |
| |
| | 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 | |
| |
| Tourism characteristic and connected industries(b) | '000 | 411.6 | 414.8 | 411.8 | 420.4 | 424.9 | |
| All other industries | '000 | 35.0 | 35.8 | 36.8 | 38.1 | 39.5 | |
| Total tourism employed persons | '000 | 446.6 | 450.7 | 448.6 | 458.6 | 464.5 | |
| Total employed persons | '000 | 9 143.9 | 9 377.7 | 9 528.0 | 9 789.9 | 10 042.2 | |
| Tourism share of total employment | % | 4.9 | 4.8 | 4.7 | 4.7 | 4.6 | |
| |
| (a) Derived by multiplying the number of employed persons in the industries by the proportion of the total value of industries which are related to tourism. |
| (b) Tourism characteristic and connected industries are those industries that have products which are consumed by visitors in volumes which are significant. |
| Source: Australian National Accounts: Tourism Satellite Account (5249.0). |
Tourism consumption is defined as:
'...the total consumption made by a visitor or on behalf of a visitor for and during his/her trip and stay at the destination' (Explanatory Notes, Australian National Accounts: Tourism Satellite Account (5249.0)).
In 2005-06 tourism consumption was largest for long-distance passenger transportation (17%), followed by shopping (including gifts and souvenirs), and takeaway and restaurant meals (both 15%) and accommodation services (11%) (table 23.3).
However, there are some marked differences in consumption patterns by type of visitor. Long-distance passenger transportation is the dominant tourism product consumed by domestic business/government (36%) and international visitors (27%). In contrast, domestic household visitor consumption is dominated by expenditure on shopping (including gifts and souvenirs) (19%) and takeaway and restaurant meals (17%).
23.3 SHARE OF TOURISM CONSUMPTION ON SELECTED TOURISM PRODUCTS,
By type of visitor - 2005-06 |
| |
| Households | Business/government | International | All visitors | |
| % | % | % | % | |
| |
| Long-distance passenger transportation | 8.9 | 35.5 | 27.0 | 17.0 | |
| Shopping (including gifts and souvenirs) | 19.2 | - | 11.1 | 14.7 | |
| Takeaway and restaurant meals | 17.2 | 14.2 | 8.5 | 14.6 | |
| Accommodation services | 8.0 | 17.7 | 13.1 | 10.6 | |
| Food products | 9.8 | 2.5 | 7.1 | 8.1 | |
| Fuel (petrol, diesel) | 7.7 | 13.4 | 1.5 | 6.9 | |
| Taxi fares | 0.7 | 1.7 | 0.6 | 0.8 | |
| All other tourism products | 28.5 | 14.9 | 31.2 | 27.4 | |
| |
| - nil or rounded to zero (including null cells) |
| Source: Australian National Accounts: Tourism Satellite Account (5249.0). |
International visitor consumption increased by 4.6% between 2004-05 and 2005-06 while total exports rose by 17% over the same period (table 23.4). Growth in international visitor consumption was strongest during 2003-04. In 2005-06, these visitors consumed $21 billion worth of goods and services produced by the Australian economy, representing 11% of the total exports of goods and services.
23.4 EXPORTS OF TOURISM GOODS AND SERVICES |
| |
| | 2001-02 | 2002-03 | 2003-04 | 2004-2005 | 2005-2006 | |
| |
| International visitor consumption | $m | 18 742 | 18 297 | 19 594 | 19 615 | 20 526 | |
| Total exports | $m | 156 102 | 151 790 | 147 205 | 167 562 | 196 342 | |
| Tourism share of exports | % | 12.0 | 12.1 | 13.3 | 11.7 | 10.5 | |
| Growth in international visitor consumption | % | -0.4 | -2.4 | 7.1 | 0.1 | 4.6 | |
| Growth in total exports | % | - | -2.8 | -3.0 | 13.8 | 17.2 | |
| |
| - nil or rounded to zero (including null cells) |
| Source: Australian National Accounts: Tourism Satellite Account (5249.0). |
During 2005-06 expenditure on the marketing of Australian tourism domestically and internationally by private sector Australian businesses totalled $840 million (m) (table 23.5). This represents an increase of 9.9% ($76m) compared with expenditure in 2003-04.
Tourism marketing directed at domestic travellers accounted for 74% ($624.3m) of the total expenditure, while expenditure targeted at international travellers accounted for 26% ($215.7m). These proportions are similar to those of 2003-04 when expenditure on tourism marketing directed at domestic travellers accounted for 74% ($568.9m) and at international travellers 26% ($195.1m) of the total.
23.5 TOURISM MARKETING EXPENDITURE |
| |
| 2003-04 | 2005-06 | | |
| Businesses at end June(a) | Tourism marketing expenditure | Businesses at end June(a) | Tourism marketing expenditure | Percentage change of tourism marketing expenditure | |
| no. | $m | no. | $m | % | |
| |
| Domestic | 1 066.0 | 568.9 | 1 267.0 | 624.3 | 9.7 | |
| International | 789.0 | (b)195.1 | *766.0 | (b)215.7 | 10.6 | |
| Total | 1 132.0 | 764.0 | 1 319.0 | 840.0 | 9.9 | |
| |
| * estimate has a relative standard error of 25% to 50% and should be used with caution |
| (a) As businesses may have had more than one type of expenditure, the counts of businesses for each type of expenditure do not sum to the total. |
| (b) Comprises expenditure on the marketing of Australian tourism to inbound travellers. Expenditure targeted at outbound travellers is excluded. |
| Source: Tourism Marketing Expenditure, Australia (8691.0). |
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