Insights - 1 December 2023
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VISITOR EXPENDITURE HITS RECORD HIGH IN 2023
Tourism Research Australia (TRA) has released its ‘Tourism forecasts for Australia 2023 to 2028’ report, which shows total visitor expenditure in Australia will reach a record high of $170.3 billion in 2023.
Domestic overnight trip expenditure is forecast to increase to $109.1 billion in 2023, up eight per cent year on year.
International visitor expenditure in Australia is expected to exceed pre-pandemic levels in 2024, with international visitor arrivals exceeding pre-pandemic levels in 2025.
TRA expects 7.3 million international visitors to Australia in 2023, almost twice as many as last year (3.7 million). By 2028, there are forecast to be 12.1 million international visitor arrivals, spending $50.7 billion in Australia.
The number of domestic overnight trips in Australia is forecast to recover to its pre-pandemic level in 2024, with total domestic visitor nights in NSW predicted to rise above pre-pandemic levels in 2025. Visitor nights are expected to increase by 3.6 per cent in 2023 and then by an average 2.9 per cent over each of the next five years.
“Domestic overnight leisure travel increased rapidly in 2022, but is now facing headwinds, including increased competition from international outbound travel and cost-of-living pressures leading to reduced discretionary spending,” TRA said.
"It is expected that the lower travel spend will be achieved through adjustments to trip details to reduce the overall cost of the trip, including by taking shorter trips, rather than foregoing the trip entirely. Moreover, not all types of travel and travel spend are discretionary, and there remains a compelling desire and need to travel to connect, explore, unwind and recharge."
TOP INTERNATIONAL MARKETS FOR RECOVERY
Vietnam, Thailand, the Philippines and India are the markets experiencing the fastest recovery and are expected to surpass pre-pandemic arrivals to Australia in 2023.
Indian arrivals over the year to August 2023 (257,600) exceeded those over the same period in 2019. By 2028, arrivals from India are expected to reach 646,800. This would see India jump to Australia’s fifth largest visitor market (up from seventh in 2019).
South Korea and Indonesia have also recovered relatively quickly, with a full recovery expected in 2024 followed by ongoing solid growth.
A larger group of countries are then expected to surpass their pre-pandemic levels in 2025; these include New Zealand, China, Japan, Singapore, the United States, Canada, the United Kingdom and Italy.
“Growth in Chinese arrivals is expected to outpace total arrivals from all markets over the forecast horizon,” TRA said.
“In 2028, 1.9 million visitors from China are expected to arrive in Australia. This would see China account for 16 per cent of total arrivals, or one in six international arrivals to Australia.”
BUSINESS TRAVEL BOOM
Business travel is rapidly rebounding following pandemic challenges. Domestic business nights are forecast to increase by nine per cent in 2023, reaching 90 per cent of the pre-pandemic level. This is a faster rate of growth in 2023 than for leisure categories of travel.
"In the near-term, weaker growth in leisure travel [in NSW] is more than offset by strength in business travel," TRA said.
From 2023-28, domestic business nights in Australia are expected to rise by an average annual rate of 4.1 per cent.
There are also expected to be 714,200 international business arrivals in 2023, which is 71 per cent of the 2019 level. International business arrivals are forecast to surpass one million and their pre-pandemic level in 2026, then increase to 1.1 million in 2028.
Ensure event planners can easily find your business by creating a venue or supplier listing on the Business Events NSW website here.
NEW STUDY EXPLORES SYDNEY'S CREATIVE FOOTPRINT AFTER DARK
A research project commissioned by the NSW Office of the 24-Hour Economy Commissioner has revealed the value and impact of Sydney’s music and nightlife spaces.
‘Creative Footprint Sydney’ was conducted by VibeLab and was officially launched at Open Mike Night on 27 November.
Director for VibeLab Asia-Pacific Jane Slingo took attendees through the main findings and recommendations. She also conducted a panel discussion with key industry figures, including Deepa (artist), Joy Ng (The Bearded Tit), Nick van Tiel (Merivale) and 24-Hour Economy Commissioner Michael Rodrigues.
Across the six cities studied to date, Sydney was ranked third, ahead of Tokyo, Stockholm and Montreal and behind Berlin and New York City.
Rodrigues said: "Creative Footprint Sydney recognises the city’s place on the global stage for music and nightlife. This independent research was commissioned by the NSW Office of the 24-Hour Economy Commissioner, to help us understand Sydney’s diverse offering to support and grow its music and nightlife scene, which is inclusive to all communities.
“The recommendations of this report will inform ongoing regulatory reform, further support for going out precincts and continuing our efforts to work alongside industry and across government to provide locals and visitors with vibrant and safe night-time offerings."
View the report here.
VIBRANCY REFORMS PASS THROUGH PARLIAMENT
The NSW Government's 24-Hour Economy Legislation (Vibrancy Reforms) has officially passed through Parliament. The legislation aims to streamline and modernise noise, licensing and planning laws to support live performance, venue diversification and better use of public spaces.
Deputy Premier and Minister for Western Sydney Prue Car said: “The Vibrancy package is a whole of government priority and we expect to deliver the initial reforms ahead of summer so that venues have the chance to respond and communities, including those in Western Sydney, will have more options for music and live entertainment.
“Western Sydney has a multitude of thriving and varied night-life cultures, from areas like Lakemba which has recently been recognised with a Purple Flag accreditation, to Parramatta where the Parramatta Lanes festival is showcasing the best in music and food. This package will give businesses the certainty they need to open and continue to entertain Western Sydney residents and visitors."
Minister for Music and the Night-time Economy John Graham said: “We want to encourage businesses to innovate and put on live performance, by giving them certainty. We want to create a safe and diverse set of options for people when they go out, to go to a pub, to see a show, to get a late-night meal. We want to activate our streets – see people milling on pavements after an exhibition or show, or dancing in the streets at a festival.”
INDUSTRY WELCOMES AUSTRALIA'S NATIONAL SUSTAINABILITY FRAMEWORK
A new National Sustainability Framework for the visitor economy and a Sustainable Tourism Toolkit jointly developed by the Federal, State and Territory governments have been released.
The Framework is the first of its kind for the industry. It provides a nationally agreed understanding of sustainable tourism and a vision for Australia to be a world leader in the sector.
The Toolkit provides a range of supportive guides to help businesses implement sustainable practices and communicate their sustainability stories to visitors.
Federal Tourism Minister Don Farrell said: "Sustainability is essential for the future success and competitiveness of Australia's visitor economy. A sustainable, thriving tourism industry means jobs, growth, and infrastructure that benefits the community."
Industry associations have welcomed the Framework as an important foundation for the visitor economy, allowing it to evolve in a well-managed and responsible way.
Cruise Lines International Association (CLIA) Managing Director in Australasia Joel Katz said: "The National Sustainability Framework is aligned with the cruise industry's own commitment to the principles established by the Global Sustainable Tourism Council (GSTC) and will provide an important foundation for our development into the future.”
The Australian Tourism Industry Council (ATIC) CEO Erin McLeod said: “ATIC will leverage our Sustainable Tourism Accreditation program to implement the framework with visitor economy businesses. It is important to ensure Australia’s tourism offerings will be enjoyed for generations to come and we are proud to have already supported a significant number of businesses in their sustainability efforts.”
PENRITH BEACH COMING THIS SUMMER
A new beach in Penrith is soon to be added to the list of the state's iconic places to swim, ensuring visitors and locals in Western Sydney have a place to cool off over summer. Lifeguard services and first aid will be available in the designated and patrolled swimming zone. The project is backed by a $1.7 million investment from the NSW Government for construction and safety work to get this major new swimming spot at Penrith Lakes ready to swim over the hottest months of the year. Minister for Planning and Public Spaces Paul Scully said: “This is a location of which the people of Western Sydney can be proud and which will make the rest of Sydney a little bit jealous!”
VENUES UNLOCKED LIVE MUSIC INITIATIAVE
Live performance venues across NSW can now access funding and support for sound management and to build the capacity for live performance, delivered by Sound NSW and the Office of the 24-Hour Economy Commissioner. The Venues Unlocked program will offer funding and support for live music venues to mitigate and manage sound, and hospitality businesses looking to diversify and convert to live performance venues. The Live Performance Venue Program also offers eligible hospitality businesses access to specialist workshops through the Live Performance Venue Accelerator to build skills in programming, marketing and technical equipment training.
OCTOBER TRAFFIC BOOM FOR SYDNEY WATERFRONT
The latest New Sydney Waterfront Company performance figures show there were 8.1 million precinct visits in October, representing a four per cent increase month-on-month. Visitation was up 19 per cent year-on-year and up nine per cent from October 2019. Visits peaked during SXSW Sydney, with performance ahead of the Sydney CBD, which is currently around 10 per cent below 2019 figures. Visitor expenditure in the precinct is up 24 per cent year on year. The New Sydney Waterfront Company focuses on the precinct encompassing Sydney's Western Harbour from the Harbour Bridge to the Anzac Bridge.
BARANGAROO STATION COMING SOON
Travel to the Barangaroo precinct will soon be even easier, with the new metro station making strides ahead of fast and reliable metro services starting on the Sydney Metro City & Southwest line next year.
Construction of the station platforms and concourse area are nearing completion, with the platform screen doors and terrazzo flooring on both levels now installed. Station signage is being fitted on both levels and Opal gates are in place and being commissioned. The new station opened its doors this week for a community open day, allowing passengers to have their first look before the station opens in 2024.
BE BUSHFIRE PREPARED FOR SUMMER
Summer comes with increased risk of bushfires, storms, floods and heatwaves. The NSW Government has prepared an updated communication toolkit to help businesses share important information with their networks and communities about preparing for the summer season. The toolkit contains information and resources on topics including preparing for bushfires, storms and floods; staying healthy during a heatwave; mental health support and protection from bushfire smoke. Destination NSW also offers a Quick Tips guide on Preparing for bushfires and natural disasters.
SYDNEY TOP FOR HOTEL BOOKINGS IN 2023
Flight Centre has released its Australia’s Year in Travel 2023 report, which shows 68 per cent of its customers booked domestic travel in 2023. Sydney was the number one travel destinations in the world, based on the number of hotel bookings. Four-star hotels were the most popular type of accommodation chosen this year, accounting for 55 per cent of bookings. A huge $113,956 was the biggest single domestic hotel booking, while the average stay in a hotel was six days. Sydney was the top cruise port that Flight Centre customers visited. The biggest cruise booking made in 2023 was $312,647.
AUSTRALIAN GOLF OPEN COMES TO SYDNEY
Destination NSW is a proud strategic sponsor of the ISPS HANDA Australian Open, which is being held from 30 November to 3 December 2023 at the Australian Golf Club & The Lakes Golf Club in Sydney. It is the first time the men’s, women’s and all abilities events are being held concurrently in NSW. The Lakes Golf Club has welcomed some of the game's greatest players. The club has created a video that explores what it means to host the big names.
SUPERBIKE CHAMPIONSHIP BACK IN SYDNEY
Following the successful Night Race in the 2023 mi-bike Motorcycle Insurance Australian Superbike Championship presented by Motul (ASBK) at Sydney Motorsport Park, Australia’s fastest riders will return to the world-class Sydney venue for more of the same action in 2024. round two the 2024 ASBK Championship will be held at the 3.93km grand prix circuit in a two-day event on 22-23 March. The races will be held under lights at Sydney Motorsport Park.
LUXURY TRAVEL GOLD LIST AWARDS
Winners of Luxury Travel magazine's 2023 Luxury Travel Gold List Awards have been announced. Capella Sydney took out the New Hotel or Resort Design trophy. Luxury Travel said: "It impressed the judges and public alike with its balance of storied architectural features and contemporary design aesthetic that collectively celebrate the Australian panorama."
CROWN LANDS AWARD WINNERS
Broken Hill’s Christine Adams, Tenterfield Shire Council and Tingha Recreation Reserve Land Managers have won awards for excellence in Crown land management at the 2023 Community Achievement Awards for NSW and the ACT. NSW has more than 34,000 Crown reserves that include showgrounds, parks, sporting venues, caravan parks and more.
CHRISTMAS SOCIAL MEDIA GUIDE
VisitNSW has created a Christmas Social Media Guide with tips on creating festive posts this season. It offers guidance on sharing festive decorations, experiences and lights that are bringing Christmas magic to towns throughout NSW. It includes ideas on what content to capture and how to do it, plus a handy list of dos and don’ts.
DESTINATION NSW JOINS THE MORNING SHOW
The Morning Show has partnered with Destination NSW to highlight the Central Coast and Mollymook on the program on 7-8 December. Hosts Larry Emdur and Kylie Gilles have filmed segments for Australia's number one morning show that highlight visitor experiences in the regions, with the aim of inspiring viewers to book NSW holidays.
VISITOR ECONOMY WEEKLY HIGHLIGHTS
NOVOTEL SYDNEY CITY CENTRE UNVEILS $20 MILLION REFURBISHMENT: Novotel Sydney City Centre has completed a $20 million refurbishment across all its 22 floors and 283-rooms. It will be the first Novotel in NSW to offer self-check-in kiosks. Learn more
ROZELLE INTERCHANGE OPENS TO TRAFFIC: The Rozelle Interchange has opened, marking the final completion of WestConnex. Learn more
INFRASTRUCTURE BOOST VIA CLUBS GRANTS: Thirty-five community groups will share $6.1 million in funding under the latest round of the NSW Government’s Club grants Category 3 Infrastructure Grants Program. Projects include $300,000 to Wollongong City Council to build an inclusive skatepark. Learn more
QUEENSCLIFF RETURNS TO SYDNEY HARBOUR: After an early retirement in October 2021, the Queenscliff has returned to the Circular Quay to Manly run following extensive refurbishments of the Freshwater fleet. Learn more
HAVE YOUR SAY ON THE CENTRAL COAST NIGHT-TIME ECONOMY: The Central Coast Night-Time Economy Discussion Paper is now open for comments. Learn more
FOLLOW DESTINATION NSW ON LINKEDIN: Stay up to date with all the latest Destination NSW initiatives by following us on LinkedIn. Click here
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