Victoria focuses on Chinese tourists

The Australian state of Victoria is focusing on China to push forward its tourism strategy and boost the crucial overnight expenditure sector that is set to grow rapidly.

"This is a bold aim which will contribute an extra 13,200 jobs for Victoria and an additional contribution to gross state product of $3.6 billion," said Louise Asher, minister for tourism, major events, employment and trade in Victoria, on Wednesday.

A delegation led by Denis Napthine, governor of Victoria, with more than 300 government officials, entrepreneurs and trade representatives, is touring the country to examine business opportunities with Chinese counterparts. Their visit kicked off with the launch of a four-week road show in Shanghai and Chengdu in Sichuan province.

"Discussions are under way with local government departments, airlines, businesses and travel agencies," Asher said.

Tourism Victoria's trade marketing activities, she said, have focused both on the traditional leisure group market and emerging travel segments including the free individual travel segment and special interest tours.

"It will regularly work with more mature agents to implement tactical marketing campaigns, which are often worked in conjunction with airline partners and primarily focus on the higher-end of the market," the minister said.

"The travel industry in China is large, complex and fragmented with varying levels of professionalism. The country has become the largest source of tourism for Victoria," she said.

The main areas of focus for Tourism Victoria are Shanghai, Guangzhou, Shenzhen, Nanjing, Hangzhou and Chengdu.

"As wealth, development and consumer demand spread beyond the main centers in China, Victoria will intensify its activity and investment in secondary and emerging cities and will expand into new growth areas," said Asher.

Emerging cities are more likely to have a higher number of first-time travelers and group tours, whereas wealthier, individual travelers are predominantly from larger cities.

"Victoria will, therefore, focus its marketing and investment activities in line with the changing needs and maturity of each city and region."

Statistics from Tourism Victoria showed that Chinese overnight visitors had the highest expenditure of all international visitors to Victoria in the year ending June 2013, with expenditure growing 21.7 percent year-on-year to $1.1 billion during this period.

China was also the largest market for international overnight visitors to Victoria in the year ending June 2013, ahead of New Zealand, with overnight visitors reaching 307,100, representing 47.5 percent of all Chinese visitors to Australia, said Napthine.

"We are fully confident of the Chinese market which is expected to bring us 521,000 Chinese overnight visitors by 2021, representing average annual growth of 6.4 percent per year from 2012," he said.

Chinese overnight visitor expenditure in Victoria is also forecast to grow at a higher rate of 7.1 percent per year, reaching an estimated $1.8 billion by 2021, he added.

Asher said the importance of the Chinese market to Victoria is particularly evident at both Phillip Island Penguin Parade and Sovereign Hill, each of which attracts more than 70,000 Chinese visitors every year. Both of these attractions also have dedicated sales and marketing offices in China, she said.

"We are committed to increasing aviation links with China to help support tourism flows and drive trade, investment and education opportunities between China and Victoria as well as positioning the State as the primary gateway to Australia from China," Asher said.

Weekly flights from Guangzhou to Melbourne will be increased from 10 to 14 in December this year and Air China will commence two direct Beijing-Melbourne flights in late this year.