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Tourism 21 - A Strategic Business Plan 1997-2000
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Issue 1 - A Market Led Industry
Goal 1
The first and most critical goal is to re-focus the industry
and Tourism Tasmania to become market-led by researching and targeting
market places that best match Tasmania's competitive strengths and
export ready products with the needs and desires of potential customers.
This is a major change of focus for an industry which has tended
to develop accommodation, attractions, activities and services and
then rely heavily on the Government and other tourism bodies to
market and promote them, whether the customer wants them or not.
To be market-led requires a united and strategic marketing approach
by industry and Tourism Tasmania. A deliberate and substantial effort
has to be made to overcome the current fragmented, non-strategic
approach to marketing.
In summary, the key strategies are:
- to develop Tasmania as the destination and the brand;
- to adopt a research driven approach to determine Tasmania's
core and developmental markets and to accurately target and design
marketing strategies and tactical campaigns for priority markets;
and
- to fully integrate marketing, promotion and the use of effective
distribution networks in each target market.
Each strategy and implementation action is detailed below.
Strategy 1.1 - Building Tasmania as the Brand and Destination
To clearly establish that Tasmania is the destination and
the brand and to strengthen the image, quality and use of the brand,
especially by developing seasonal themes.
As an island State, Tasmania has the advantage of being the destination
point in the minds of interstate visitors. As such it is both the
destination and the brand.
Tasmania is also developing national and international recognition
for quality. In particular, the quality our natural environment
and our foods, beverages, farm produce and manufacturing products,
provides a unique platform from which to develop our profile in
the market place as a tourism destination.
Tourism 21 has concluded that there is a need to continue to strengthen
this reputation for quality as an integral part of the image and
use of brand Tasmania. The performance target is to establish brand
identification, awareness and definition in key segments and target
markets.
In terms of international recognition, Tasmania should be seen
as part of brand Australia. Tasmania's unique position and competitive
strengths provide an opportunity to develop a strong position as
part of brand Australia. It would be less effective to position
Tasmania as a separate destination to Australia.
Strategy 1.1 - Priorities:
1.1.1 Generating a `whole of industry' and `whole of Government'
commitment and support for Tasmania as the brand and destination
This commitment to brand Tasmania is to involve not only tourism
stakeholders but also other industry sectors and Government agencies
that promote Tasmanian products and services in target markets.
As our tourism industry builds on the concept of quality and on
links with Tasmania's competitive strengths in its natural produce,
for example, food and wine, it is logical that a consistent identification
with brand Tasmania by all industry groups will be beneficial to
all.
Tasmania also has to marshal its limited resources to support
Brand Tasmania more vigorously. The State needs to use the Government's
and businesses' interstate and international connections to promote
the brand.
While different tourism destinations and icons within the State
and gateways into Tasmania can be recognised, it is important for
this to be undertaken in a manner that reinforces brand Tasmania.
Similarly, the three Regional Gateway organisations need to develop
a positioning which supports and complements brand Tasmania and
destination Tasmania.
1.1.2 Continuing to develop the brand to reflect the quality
of Tasmania's strengths as a natural, beautiful island with wilderness,
heritage and quality food and wine
Tasmania's competitive strength lies in its natural quality. This
quality needs to be constantly reinforced.
Refinements are, however, needed to address concerns that the
tourism images being portrayed are too conservative. A more active,
exciting and adventurous image and seasonal differences need to
be projected to expand Tasmania's core market appeal and penetration.
1.1.3 Developing a strong seasonal focus that highlights
different themes and product packaging of experiences appropriate
to different seasons
A key structural weakness of Tasmanian tourism is the significant
decline in visitation in the autumn and spring shoulders and the
winter off-season. Seasonal themes would not only introduce diversity
and new interests for visitors, and build on Tasmania's natural
quality image, but would also target this structural problem. The
aim is to lessen the extent and depth of the seasonal downturn.
In effect, the seasonal marketing theme could be Tasmania's response
to Victoria's `Jigsaw' strategy and NSW's `Seven Wonders' campaign.
Coordinating packages and creatively portraying experiential product
in seasonal themes will appeal to customers in our core markets
and segments. There can also be regional variations to the seasonal
themes, providing different gateway opportunities.
Tourism 21 has concluded that seasonal themes would positively
address weather differences between the seasons and identify ways
and means visitors can enjoy seasonal experiences.
1.1.4 Working with the Australian Tourist Commission through
Partnership Australia to support brand Australia and ensuring that
Tasmania's competitive natural quality strengths and seasonal themes
are reflected in international marketing programs
The key to international marketing is to develop a strong partnership
with the ATC and support the promotion of Brand Australia. However,
destinational images of Australia need to be enhanced to not only
reflect the `sun, surf and outback' but also the nation's other
natural qualities and differences, including world heritage.
Strategy 1.1 - Implementation
Action By July 1997:
- Tourism Tasmania to develop marketing plans to enhance Tasmania's
position as a quality, interesting and more exciting destination
Action By August 1997:
- Tourism Tasmania to prepare a Brand Tasmania Policy Submission
to be presented to Government for endorsement
The submission is to detail a `whole of government' approach to
the use and development of the brand; the role of tourism in State
marketing and quality assurance strategies; and an implementation
program with other stakeholders.
- Tourism Tasmania, with the support of TCA Tasmania and the
Regional Tourism Associations [JTSIG], to conduct regional workshops
for industry operators on marketing strategies
Action By September 1997:
- TCA Tasmania to develop a complementary Brand Tasmania Policy
as part of its Business Plan
Action By November 1997:
- Tourism Tasmania to continue to work with relevant Government
Agencies to consistently apply Brand Tasmania and develop strong
links between tourism marketing and the marketing of Tasmania's
produce
- TCA Tasmania, with the support of Tourism Tasmania [JTSIG],
to form alliances with the Tasmanian Chamber of Industry and Commerce
and other peak industry bodies to consistently apply Brand Tasmania
and develop strong links between tourism marketing and the marketing
of Tasmanian produce
Action by December 1997:
- Tourism Tasmania to prepare an introductory user document for
Brand Tasmania. Special attention is to be given to how tourism
icons and destinations within the State can be used to support
Brand Tasmania
- Tourism Tasmania and TCA Tasmania [JTSIG] to resolve a detailed
implementation program to achieve a `whole of industry' and `whole
of government' approach to the use of Brand Tasmania
- Tourism Tasmania to integrate Brand Tasmania into partnership
agreements with the three Regional Tourism Associations, the Tasmanian
Convention Bureau [TCB] and the Tasmanian Visitor and Information
Network [TVIN]
Action by April 1998
- Tourism Tasmania with the support of TCA Tasmania to conduct
regional workshops for industry operators on how to use Brand
Tasmania
Action By June 1999:
- 100 per cent of all export ready tourism product to be committed
to Brand Tasmania
Strategy 1.2 - Researching and Building Tasmania's Markets
To research Tasmania's core and developmental markets to
accurately target and design marketing strategies and tactical campaigns
that will:
- match our competitive strengths with the needs of our
customers and market requirements; and
- best build market share and deliver revenue and yield
performance targets.
The thrust of this strategy is to recognise where and how Tasmania
attracts the majority of its visitors and business. It is to ensure
that our limited resources are directed to continue research and
develop and expand these core markets.
The strategy also recognises the importance of working in developmental
and new markets but in a well-researched, targeted and planned approach.
The aim is to ensure that a balanced perspective is maintained in
allocating resources between the all-important work of maintaining
and expanding core markets, while investing to expand developmental
markets.
Strategy 1.2 - Priorities
1.2.1 Research and gather market intelligence on Tasmania's
target markets to ensure the best match of customer desires with
Tasmania's competitive advantages, experiences and products that
will maximise yield
While Tourism 21 has identified, from visitor information and
data systems, core and developmental markets to be addressed in
the next three years [see 1.2.2 and 1.2.3 below], it has to be understood
that market conditions and customer demands are constantly changing
and vary from market to market. Different cities, states and countries
have different market needs and requirements.
A critical success factor is therefore to ensure that marketing
strategies, tactical campaigns and products are developed in response
to the market and the customer. The data and information systems
are the vital link in the planning and action cycle.
The systems have to be tailored to the requirements of particular
markets. They must provide ongoing monitoring of markets and the
delivery of:
- timely and accurate data on demand trends, market strengths
and gaps in Tasmania's geographic markets and segments;
- information on market and economic conditions that influence
growth potential in these markets; and
- data on the performance of marketing strategies and tactical
campaigns.
The systems must be action-oriented and enable information collected
to be readily used in the evaluation and development of strategies,
tactical campaigns and performance targets.
An effective communication strategy is also required to make market
information available to operators developing customer and market
responsive product, infrastructure and services.
1.2.2 Consolidate and build on Tasmania's competitive strengths
in core Australian markets and key segments, principally:
- free independent travellers [FIT] taking self drive touring
holidays;
- visitors originating from the southern States of Victoria
[Melbourne] and South Australia [Adelaide] and the eastern States
of New South Wales [Sydney] and Queensland [Brisbane]
Tasmania's first priority is to concentrate on building core domestic
markets and its key segments through targeted, performance-driven
marketing. Tasmania has to continue to broaden its domestic market
appeal with a particular focus on extending visitation into the
shoulders and off-season.
FIT Profile
Tasmania's strength is in FIT self drive touring holidays.
The interstate wholesale and retail trade has identified the FIT
demographic profile as predominantly couples without children. It
includes younger couples before they have had families, the over
40's without family ties and the retired 60 year olds. They either
fly and hire a car or bring their own vehicle on the Spirit of Tasmania.
There is potential to attract a much larger slice of the FIT market
by:
- focusing on empathetic segments such as "visible achievers
and socially aware"
- developing a more active, stimulating and welcoming holiday
profile through seasonal themes and experiential self drive holiday
packages
There is also significant potential to develop the short break
market and repeat visits. Tourism operators have reported that repeat
visits form an important part of their business [TTOS 1996].
Domestic Markets
Tasmania's visitor growth in the domestic markets has averaged
approximately 4% to 5% per annum [TVS] in recent years which is
substantially above the average 2% growth rate for Australian domestic
travel.
It reflects a trend that Tasmania is gradually increasing market
share and not just maintaining pace with domestic growth rates.
New arrivals have increased by between 15,000 and 20,000 each year.
Geographically, Tasmania has performed best in the closer, more
populated Melbourne/Victoria and Sydney/NSW markets.
The strategy is to continue to expand market share in both these
markets but also more aggressively market to the Queensland, South
Australian and West Australian markets. The NSW and Queensland markets,
in particular, have shown higher than average growth trends in recent
years.
Given that there are important differences between these markets,
Tasmania needs to research and tailor marketing strategies and tactical
operations to the specific requirements and demands of each market.
The performance target is to obtain and secure market leadership
and market share in the key segments in these core markets.
1.2.3 Research and expand developmental market opportunities
in selected international and special interest markets
Tasmania has the potential to target and develop selected markets
that are currently small or under performing.
While there are exciting opportunities in these special markets,
the objective for the next three years is to research and focus
on those which will become good performers for Tasmania, especially
in terms of seasonal growth and yield. The risk is to pursue too
many small market opportunities and fragment Tasmania's core marketing
effort.
Tourism 21 has identified the following markets for priority assessment.
Each needs to be thoroughly researched to clearly establish that
it has the potential to warrant investment and development over
the next three years. For each selected priority, a defined action
plan has to be prepared to integrate marketing and product development
strategies, budget requirements and benchmarking to measure performance.
- International markets [in conjunction with the ATC] in Europe
[Germany, United Kingdom, Benelux, Switzerland, Scandinavia, Italy
and France], North America [West Coast], New Zealand, and specific
markets in selected Asian countries [Japan, Singapore, Malaysia
and Hong Kong]
Growth in international visits to Tasmania has exceeded 10% per
annum in recent years. The increase from 1994 to 1995 was approximately
9,200 although in previous years annual increases have been as high
as 20,000.
With Australia continuing to experience dramatic increases in
international visitation, there are real opportunities for Tasmania
to substantially increase the number of overseas visitors.
Tourism 21 has concluded that Tasmania's competitive strengths
are best suited to customers from Europe, North America and New
Zealand. In these markets, customers have longer holidays and are
able to spend longer travelling ie more than 10 days. They also
have interests that strongly accord with our natural product.
The focus on Asia needs to be on those countries which have a
strong FIT profile.
A major opportunity is to attract international travellers on
repeat visits to Australia who are looking for experiences different
from their first visit.
- Conferences, conventions and meetings
This market is particularly important because it is high yield
and can be targeted to non-peak periods. There is also significant
growth potential in corporate and association business in Tasmania's
core interstate markets.
A critical success factor is for the direct marketing of conferences
and convention marketing to be fully integrated with the State's
destinational and promotion strategies. There is also considerable
potential to develop pre and post conference touring.
- Group travel and coach touring holidays
This is a sector in which Tasmania has lost market share in recent
years. There is potential to re-develop coach touring and group
travel and regain market share.
- Focusing on a limited number of specific interest markets
for Tasmanian product
Tasmania has particular assets which can be directly marketed
to specific interest groups.
The assessment to determine which are the priorities should include
wild trout fishing, food and wine, adventure walking and backpackers
as well as other special interests nominated by industry operators.
- Developing spin-off business from major national and international
events and activities interstate, particularly in Melbourne and
Sydney
While the Sydney Olympics and ParaOlympics have already been targeted
as major opportunities, there is also considerable potential to
directly market pre and post touring for international and national
conferences and events such as the Melbourne Grand Prix.
- Major events that reflect Tasmania's competitive advantages,
are fully integrated with Tourism Tasmania's marketing strategies
and have the potential to deliver a real return on investment
There are two categories of events that need continual development.
The first includes major events of statewide significance which
need to strongly reflect Tasmania's competitive advantages and attract
major national and international publicity and media attention.
As far as practicable, major events need to held in the shoulder
and off-seasons.
If Tasmania pursues this strategy, it will not be competing with
other States bidding for major events but will be developing its
own niche opportunities which are both sustainable and contribute
to the overall tourism marketing effort. A good example is Targa
Tasmania which not only reinforces the State's touring strengths
but also assists in attracting visitors and media attention to the
autumn shoulder season.
It is strategically important to closely integrate the selection,
planning and marketing of major special events with the State's
tourism marketing and promotion programs. As such Tourism 21 has
concluded that the State Government's Events Tasmania should be
part of the restructured Tourism Tasmania.
The second category of events includes community-based activities
in towns and cities around the State that provide local cultural
experiences for visitors. These events should be locally organised
and self funded. As far as practicable they should be coordinated
into a calendar of district or regional events.
Strategy 1.2 - Implementation
Action By June 1997:
- Tourism Tasmania, in consultation with TCA Tasmania [JTSIG],
to resolve the industry's data and information requirements, the
nature of the research and information systems needed in each
of Tasmania's core and developmental markets and the performance
benchmarks to be used
Action By July 1997:
- Tourism Tasmania to prepare its 1997/98 marketing plan based
on a comprehensive analysis of existing market data, including
the TVS. The Plan is to present Tasmania's core and developmental
market priorities, strategies, campaigns and budget allocations
for each priority.
Action By August 1997:
- Tourism Tasmania, in cooperation with TCA Tasmania and the
Regional Tourism Associations [JTSIG], to brief industry operators
on the marketing plan at the regional workshops
Action By January 1998:
- Research systems to be fully operational in all core and developmental
markets, monitoring, benchmarking and evaluating marketing strategies
and campaigns; and providing market intelligence for regular regional
briefings of industry operators
Strategy 1.3 - Developing Integrated Marketing and
Effective Distribution Networks
To fully integrate the use of marketing and sales tools with
an efficient Tasmanian wholesale and retail support system for national
and overseas marketing.
Tourism 21 has concluded that significant improvement can be made
in the coordinated planning and application of marketing and sales
tools with effective distribution networks for Tasmania's products.
This will ensure all marketing and promotion activities are geared
to maximising sales conversion.
Strategy 1.3 - Priorities
1.3.1 Developing well-researched, tailor-made and coordinated
marketing, distribution and sales strategies and campaigns for each
market
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Diagrams, provided by Global Tourism and
Leisure, highlight eight stages of consumer conversion to
travel and nine marketing stages. Strategies and campaigns
have to be developed for each stage. Weakness in any stage
or poor coordination between stages will reduce the performance
of the entire system.
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The key stages are:
- the market research, as outlined in Strategy 1.2;
- creation of destinational awareness and the intention to travel;
- conversion of this desire to the sale of an airline or ferry
ticket or package; and
- delivery of the product and holiday experience.
The whole cycle is to ensure that marketing and distribution strategies
match customer needs with Tasmania's competitive advantages and
export ready products. It is particularly important to coordinate
and package experiential products that meet customer demands, the
information and sales requirements of the trade and enable customers
to access and enjoy Tasmania [See Strategy 2.1].
It is also vitally important for industry and Tourism Tasmania
to develop cooperative marketing strategies that maximise the availability
of resources. The industry will not realise its growth potential
without high levels of financial support for marketing.
1.3.2 Core strategies and campaigns must be applied consistently
Having researched, developed and market tested marketing strategies
and tools, it is important to allow time for them to work.
Once proven successful, they need to be applied consistently.
Apart from minor variations, strategies should not be changed unless
market conditions and consumer needs change.
1.3.3 Establishing an information management strategy to
integrate product and information systems and the production of
information needed by customers and the trade
Coordinating and managing information is central to integrating
marketing and distribution strategies as is the use and development
of the latest technology, communications and information systems
ranging from the internet to touch screen systems.
A detailed strategy is needed to consolidate and manage new technology
and information about markets, products, research, marketing and
distribution systems. Key aspects to be addressed in the strategy
include:
- developing an electronic distribution system based on a single,
central product database/inventory with on-line access to distribution
information networks and outlets
Global electronic distribution is rapidly becoming the most effective
method of distribution. Development and implementation of this system
is a high priority for Tourism Tasmania.
- consolidating printed market and sales information into a
limited number of effective documents and brochures
Much printed information is wasted because it is either not needed
or in a form that customers and sales staff cannot use efficiently
and effectively. Printed material also needs to strongly reflect
the brand. Rationalising printed material is a high priority for
Tourism Tasmania and the industry.
- developing the potential of phone bank information services
[Tasmanian Helpline] and data base marketing
1.3.4 Building close and consistent working relationships
with the carriers and the trade [preferred wholesalers, retailers
and inbound operators] in target markets at both a strategic and
tactical campaign level
To improve sales conversion, it is critical to develop strategies
and tactical campaigns directly with the carriers and the wholesale
and retail trade who deal directly with the customers. They are
Tasmania's partners in selling tourism.
The carriers include the national and regional airlines and the
TT-Line. Their involvement is essential, as all visitors must buy
a ticket to travel to Tasmania. The wholesale and retail trade and
inbound operators also provide vital networks that link Tasmanian
operators to potential customers.
In the past, coordination with carriers and the trade has occurred
by implementing particular tactical campaigns. Discussions with
the trade have revealed that coordination is needed at a strategic
level. The carriers and the trade need to integrate their own strategies
with the ongoing development and implementation of Tasmania's marketing
strategies.
The key is to develop close one to one, working relationships
with these stakeholders.
Specific priorities are to:
- tailor co-operative marketing to the variable situations and
needs of different industry operators
For example, the airlines find co-operative advertising confuses
their own individual brand and a different approach is required
- more aggressively promote and sell Tasmania
One interstate trade representative referred to this as `in your
face' marketing.
For overseas marketing, this also opens the potential to capitalise
on the networks of the international players such as inbound operators,
who are prepared to service our markets. This will be more effective
than Tasmania working alone.
1.3.5 Developing consistent sales training and product education
for front-line sales staff
Product knowledge is critical to effectively sell the product,
yet domestic retail agents are young and often unfamiliar with Tasmanian
product. There is also a high turnover of agency sales staff. An
active training and familiarisation program for travel sales consultants
is essential, especially with Tasmanian-preferred agencies.
1.3.6 Tourism Tasmania providing leadership, a structure
and resources for the integration of marketing, promotion and sales
strategies and campaigns in each target market
The strategies outlined above can be achieved effectively only
if it is led and facilitated by Tourism Tasmania. Key priorities
to improve performance include:
- reviewing and more effectively utilising and developing current
resources
The review needs to provide a solid structure and resource allocation
for addressing each target market. It should cover the efficiency
and effectiveness of current marketing and promotion activities
and the roles of the Tasmanian Travel and Information Centres. It
should also address how to advise operators to access and participate
in interstate marketing and sales activities.
- providing a single point-of-contact to build partnerships
and relationships with carriers and the trade on behalf of the industry
Establishing and maintaining partnerships with carriers and the
trade has to be a core activity of Tourism Tasmania. It is in the
position where it can develop industry partnerships with these stakeholders
and provide a point of contact and regular follow-up at both a strategy
and tactical level.
A key aspect of Tourism Tasmania's role is develop and implement
a Tasmanian specialist program for the trade.
- continuing fee-for-service support for wholesaling through
Tasmania's Temptations Holidays, including product development and
industry education initiatives
Tasmania's Temptations Holidays performs a number of roles that
are critical to Tasmanian tourism. It provides the network and support
for operators especially the large number of small operators, to
enter core markets in partnership with the selling agents and the
carriers.
Tasmania's Temptations Holidays, unlike other wholesalers, also
provides a valuable development role in supporting operators to
develop new product and in conducting educational, training and
other development programs. These activities need to form part of
an overall performance agreement with Tourism Tasmania and be funded
on a fee-for-service basis.
While Tasmania's Temptations Holidays needs to be part of Tourism
Tasmania, it should be positioned to operate its core wholesaling
role at arms length, in accordance with commercial principles. As
such, when it comes to its marketing activities, Tourism Tasmania
should treat Tasmania's Temptations Holiday on the same basis as
it treats all other wholesaling organisations.
However, it is important that Tasmania's Temptations Holidays
continues to fulfil its development role as required by Tourism
Tasmania for at least the next three years before any further review
is undertaken. This is a key strategy to secure the foundation for
sustainable growth.
1.3.7 Longer lead times are required to ensure Tourism Tasmania's
marketing and public relations resources are planned, directed and
coordinated well in advance with industry and the wholesale and
retail trade
The trade has expressed concern that in the past insufficient
time has been allowed to develop and implement marketing campaigns.
It is critical in both national and international markets for longer
lead times to ensure all marketing, communications and distribution
activities are fully integrated. It is also essential to enable
destinational awareness to be effectively and efficiently converted
into sales.
Strategy 1.3 - Implementation
Action By July 1997:
- Tourism Tasmania, in consultation with TCA Tasmania [JTSIG]
and the trade, to prepare an integrated marketing plan for the
next twelve months for each target market in accordance with the
requirements of Strategy 1.3, including a review of the trade's
needs for printed marketing material
- Tourism Tasmania to complete its performance agreement with
Tasmania's Temptations Holidays
Action By August 1997:
- Tourism Tasmania, in consultation with TCA Tasmania [JTSIG],
to complete a review of the role and performance of the five interstate
Tasmanian Travel Centres, the TGTIS and related marketing activities,
for implementation
- Tourism Tasmania to release the annual marketing plan for
ongoing dialogue and cooperation with the trade
- Tourism Tasmania, in cooperation with TCA Tasmania and the
Regional Tourism Associations [JTSIG], to brief industry operators
on the marketing plan at the regional workshops
Action By June 1998:
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