Home' Hotel Management : HM AUG 2015 Contents Tourism Australia signed two massive airline deals at
Australian Tourism Exchange with Virgin Australia and
Etihad Airways worth AUD$80 million over five years.
Leading the way, Tourism Australia and Virgin
Australia have announced their intent to renew their
ongoing relationship which will see the two parties
jointly spend AUD$50 million over the next five
years promoting Australia to leisure and business
travellers in key international markets.
The new deal represents the largest ever
commercial arrangement Tourism Australia has
entered into with an airline partner and builds on
a successful existing three year arrangement with
Tourism Australia Managing Director, John
O’Sullivan, said the new agreement will provide
valuable support for Tourism Australia’s global
campaigns and marketing activities, as well as some of
the industry’s most important trade and business events.
“Building strong and sustainable relationships
with our airline partners has become a key plank in
our growth strategy and nowhere has this approach
been more productive than in our evolving
partnership with Virgin Australia, particularly some
of the great recent work we’ve been doing together
in the United States,” he said.
“At AUD$50 million this is a very significant deal
in financial terms and also in its scope, covering
marketing campaigns, trade and business events as
well as media hosting,” he said.
As one of Australia’s largest airlines, with a
network of 47 domestic destinations and more
than 450 destinations worldwide, Virgin Australia
plays an important role in facilitating the travel of
international visitors to and around Australia.
Virgin Australia Chief Executive Officer John
Borghetti said: “Virgin Australia recognises the
importance of working closely with Tourism
Australia to promote this great country to the
world. This renewed deal demonstrates a significant
increase in our investment and commitment to
“In recent years we have captured the attention
of international audiences through major campaigns
and tourism initiatives including ‘Someday’ and
‘Restaurant Australia’, the largest campaign ever run
by Tourism Australia in the United States.
“ Virgin Australia is fortunate to have four of
the best airline partners in the world – Air New
Zealand, Delta Air Lines, Etihad Airways and
Singapore Airlines – all of whom are invested in
supporting Australia’s growth as a business and
leisure destination. We look forward to working
closely with our partners and Tourism Australia to
market Australia on the world stage in innovative
and powerful ways,” Borghetti said.
The primary marketing focus of the deal will be
the United States, Australia’s fourth largest inbound
market, currently worth more than AUD$2.6 billion
in annual tourism expenditure and predicted to
grow up to AUD$5.5 billion by 2020.
In addition, the agreement will cover targeted
support for Tourism Australia’s premier trade and
business events program, including continued
support of Australia’s largest tourism and trade events,
Australian Tourism Exchange (ATE) and Dreamtime.
Virgin Australia will also host travel for international
and domestic influential visitors such as media,
delegates and business and trade decision makers.
Tourism Australia and Etihad Airways have
deepened their commercial partnership by signing
a five-year, AUD$30 million marketing deal to
promote Australia to leisure and business travellers
in key overseas markets.
The new ‘Memorandum of Understanding’
signed on Monday 22 June at the Australian
Tourism Exchange in Melbourne – extends an
existing three-year deal worth A$12 million which
expires this year.
Tourism Australia Managing Director, John
O’Sullivan, said the new deal highlighted Etihad
Airways’ commitment to the Australian market.
“ We’re delighted to further strengthen our
relationship with Etihad Airways. This is a landmark
agreement which will provide valuable support for
Tourism Australia’s global campaigns and marketing
activities, as well as some of the industry’s most
important trade and business events,” he said.
“Through their strong global footprint,
particularly within Europe and their global
partnerships, Etihad Airways is now one of Tourism
Australia’s most important aviation partners,
actively supporting some of our most important
international campaigns and playing a critical
role feeding traffic to Australia’s key international
gateways,” O’Sullivan said.
Etihad Airways President and Chief Executive
Officer, James Hogan, said: “The announcement
of a further $30 million over five years to promote
Australia overseas reinforces Etihad Airways’
commitment to the Australian market.
“It’s pleasing to see our continuing investment in
Australian tourism attracting more and more visitors
each year and delivering economic benefits to
tourism operators Australia-wide.”
He said the primary focus of the deal would be
promoting Australia to international leisure and
business travellers within Europe.
worth $80 million
It’s been a stellar few months for New
Zealand hotels and it’s great to see such a
positive buzz across the sector.
A big Chinese New Year, the ICC
Cricket World Cup and many local events
have certainly kept us busy through the
first half of 2015. We have been seeing the
results in the monthly data, and we can
confidently predict it will be a record year
The buoyancy of the industry was
apparent at the recent New Zealand Hotel
Industry Conference, which was a sell-out
for the first time in its nine-year history.
Combined with a record number of entries
for the annual Hotel Industry Awards, the
hotel sector is currently better placed than
it has been for quite some time to take
advantage of the opportunities available
while tackling the challenges we face.
There was a lot of talk at TRENZ 2015
about the lack of progress we are seeing
with the various proposed convention
centre developments. Since then, we
have seen some movement with plans
for SKYCITY’s International Convention
Centre but it still seems unlikely that
either this or the Christchurch Convention
Centre will be open before 2017.
Business events were highlighted as a
growth area for tourism in the industry’s
Tourism 2025 growth framework, which
aims to almost double total tourism
revenue to $41 billion over the next decade.
New Zealand is lagging many of our
competitor destinations in our inability to
cater for large-scale conferences so TIA
continues to advocate for progress in this
We are also putting a lot of effort into
supporting hotels and the wider tourism
industry on the growing issue of finding the
right staff at the right time.
The tourism forecasts to 2021 recently
issued by the Ministry of Business,
Innovation and Employment, showed
we can expect strong growth in visitor
numbers for the next few years. TIA’s own
tourism workforce projection study showed
the industry will need as many as 36,000
additional full time equivalent (FTE)
workers by 2025.
That’s an increase from the current
94,100 to about 130,000 FTEs.
Sally Attfield is the Hotel Sector Manager
at Tourism Industry Association New
Tourism Australia Managing
Director, John O’Sullivan
12 HM The Business of Accommodation
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