Post on 10-Mar-2016
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Cradle Coast Authority
The Tarkine - Latent Demand Quantification
Phase 1 Consumer Segments
December 2007
Prepared for :
Prepared By : EMDA in conjunction with -Moore Consulting & SCA Marketing
24/12/07 Tarkine Phase 1 Final Report 1 Economic and Market Development Advisers
Section 1 : Introduction
Section 2 : Key Trends
Section 3 : Domestic and International Segments
Section 4 : Tasmania's Performance
Section 5 : Our Initial Conclusions
Section 1 : Introduction EMDAEconomic and Market Development Advisers
Contents
24/12/07 Tarkine Phase 1 Final Report 2 Economic and Market Development Advisers
The Tarkine planning workshop of 31st October 2007 identified the key steps required to progress the development of the Tarkine Master Tourism Plan - including the preparation of the latent demand model for the Tarkine.
Three key steps have been approved to determine this demand:-Step 1 : Identify and quantify the key consumer segments that will support the development of the Tarkine. (TODAY)Step 2 : Develop an econometric model linking the segments and criteria developed (ie :- access, attractions) to identify potential patronage numbers and regional economic benefits (tourism spending and employment). This stage would include the quantification of a range of visitation and economic scenarios. (Report 21st / Feedback w/c 15th Jan 08, Meeting incorporating comments w/c 21st Jan 08)Step 3 : Concept test development options (ie attractions) within the model developed using proprietory market research techniques. The concepts to test will be developed as part of Steps 1 and 2 in conjunction with the existing work that has been undertaken identifying product opportunities.
Section 1 : Introduction EMDAEconomic and Market Development Advisers
Project Purpose
24/12/07 Tarkine Phase 1 Final Report 3 Economic and Market Development Advisers
In this report it has been found that Tasmania's status as a State with iconic natural wonders (a key element of the nature tourism market) has fallen and is well behind Queensland and NSW. This is a key strategic issue confronting tourism in Tasmania as this is a key platform.
Lifting this falling ( and relatively low) position will require the development and promotion of new iconic natural areas - however, this is not an easy task to achieve and if the overall appeal of the natural appeal of Tassie continues to deteriorate then this will become even harder.
Lifting the status is well worthwhile as the nature tourism market is a very valuable and therefore there is a big prize. This is a high yielding segment - worth $13.8B in the Domestic market and $4.1B in the Inbound market.
The Tarkine is a possible development that could lift Tassie's status in this market. It is of significant size and already has status as the area contains an abundance of natural attractions including one of the worlds largest tracts of untouched Rainforest.
Such opportunities are very rare - wilderness cannot be built and coastal wilderness is even rarer.
To achieve the lift in status, the Tarkine will need to satisfy the needs of a number of key segments who are very interested in natural areas lead by a focus of a focus on a number of the segments - lead by the Nature Enthusiasts. For this group their most important motivation for choice of holidays is accessing natural areas.
A key need amongst the segment is to have a new experience - meaning experiencing new natural areas. Here the Tarkine is potentially well placed as it would be a new holiday destination.
Section 1 : Introduction EMDAEconomic and Market Development Advisers
Contextual Statement - based on Findings to Date
24/12/07 Tarkine Phase 1 Final Report 4 Economic and Market Development Advisers
The Study RegionSection 1 : Introduction EMDA
Economic and Market Development Advisers
The Tarkine Region is a broad area incorporating wilderness areas, coastal areas and a few towns but has restricted access at this stage.
TARKINE REGION
24/12/07 Tarkine Phase 1 Final Report 5 Economic and Market Development Advisers
Who has world class natural attractions ?
Amongst Australians 7% nominate that Tasmania has world class natural attractions - and this has fallen - Tasmania is losing status in a core appeal.
Now Vic (9%). ahead of Tassie and well behind NT and Qld 24%, NSW 15%, also WA at 8%.
Tassie only higher than SA (0%).
Source : RMR
2001 2002 2003 2004 20055.5
6
6.5
7
7.5
8
8.5
9
9.5
Tasmania % Nominate World Class Natural Attractions% Australian Population
EMDAEconomic and Market Development Advisers
Section 2 : Key Trends
24/12/07 Tarkine Phase 1 Final Report 6 Economic and Market Development Advisers
Amongst visitors to Tasmania, the % visiting natural attractions is falling - visiting a National Park , also going for a bushwalk (all length of times are falling), - most other activities are lower as well.Big growth in short stays means people have less time to undertake activities - this is a contributing factor.
Source : TVS
J 01 J 02 J 03 J 04 J 05 J 06 J 0740
45
50
55
60
65
% Visit a National Park
EMDAEconomic and Market Development Advisers
All Trips
Tasmanian Visitors
J 01 J 02 J 03 J 04 J 05 J 06 J 0743
44
45
46
47
48
49
50
51
52
% Went on a Bushwalk
Section 2 : Key Trends
24/12/07 Tarkine Phase 1 Final Report 7 Economic and Market Development Advisers
A detailed review of the four tourism databases was undertaken - Tasmanian Visitor Survey (TVS), Roy Morgan Research Holiday Tracking Study (RMR-HTS), National Visitor Survey (NVS) and the International Visitor Survey (IVS).
Within the NVS and IVS a series of questions was added for the March quarter 06 which enables identification of nature based tourism - as this is in the large databases this means the data can be segmented into meaningful segments. The questions identify those who state :- That the most important factor in taking their trip is to undertake nature based activities. Those who stated that undertaking nature based activities is a major factor separated into four other segments based on shared characteristics (age, income and behaviours).The remainder are either neutral or unimportant.
The following two pages chart the segmentation developed by EMDA to be understand the possible consumers the Tarkine has to appeal to, for the development to be a success.
The segments have then been "coded" by EMDA into the HTS and TVS this has been done by systematically comparing variables common to all segments such as activities, age, presence of children and clustering these together - although not a perfect alignment, the results are sufficiently robust for marketing development purposes.
Section 3 : Domestic and International Segments EMDAEconomic and Market Development Advisers
Segmentation Approach
24/12/07 Tarkine Phase 1 Final Report 8 Economic and Market Development Advisers
Segment 1 : Nature Enthusiasts (10.8% of all domestic overnight trips)For these holiday makers the most important factor in taking their trip is to undertake nature based activities. They enjoy a broad range of nature based activities, including, beaches, coastal areas, sight seeing, National and State Parks.. The core appeal for this group is the natural beauty of the area and the ability to get close to nature. They range from very active, predominately younger people (ie overnight bushwalkers) to older people who really enjoy nature more passively. They have a very strong preference for camping.
Segment 2 : Younger Nature Enjoyers (7.2% of all domestic overnight trips) For this segment getting out into natural areas is a major factor in destination choice and the average age is 25. They like beach areas, wilderness and opportunities to bushwalk. They are more active and like some higher quality accommodation for time together (couples). Camping areas are also important.
Segment 3 : Families Nature Enjoyers (12.3% of all domestic overnight trips)For this segment getting out into natural areas is a major factor in destination choice. Their average age is around 42 (parents). For this group all the travel party must be catered for and enjoy the experience (parents and the kids). They like more self contained accommodation.
Segment 4 : Affluent Nature Enjoyers (1.5% of all domestic overnight trips)For this segment getting out into natural areas is a major factor in destination choice. They don't want lost of kids around and like getting close to nature also opportunities to interact with friends and rels on the same trip.
Segment 5 : Lower Nature Enjoyers (4.3% of all domestic overnight trips)For this segment getting out into natural areas is a major factor in destination choice. Their average age is 55 and they like more a lower cost experiences and natural beauty. Although physically active a key requirement is that activities catering to the needs of both of the couples.
Section 3 : Domestic and International Segments EMDAEconomic and Market Development Advisers
Segment Descriptions
24/12/07 Tarkine Phase 1 Final Report 9 Economic and Market Development Advisers
Domestic Market - Segment Sizes
Nature Based Tourism Segments(% of Australian Domestic Overnight Market)
20 30 40 50 60 65
Average Age (years)
Impo
rtanc
e of
app
eal o
f Nat
ure
Source : National Visitor Survey
In the Domestic Australian market five segments have been identified.
Nature Enthusiasts - those who stated that the most important factor in taking their trip was to undertake nature based activities.
Those who stated that undertaking nature based activities is a major factor separated into four other segments based on shared characteristics (age, income and behaviours).
Nature Enthusiasts
(10.6%)
Younger - Nature Enjoyers (7.2%)
Families - Nature Enjoyers (12.3%)
Affluent - Nature Enjoyers (1.5%)
Lower - Nature Enjoyers
(4.3%)
High Importance
Neutral Importance
Section 3 : Domestic and International Segments EMDAEconomic and Market Development Advisers
24/12/07 Tarkine Phase 1 Final Report 10 Economic and Market Development Advisers
International Market - Segment Sizes
Nature Based Tourism Segments(% of Australia's International overnight market)
20 30 40 50 60 65
Impo
rtanc
e of
app
eal o
f Nat
ure
Source : National Visitor Survey
Nature Enthusiasts
(10.8%)
Younger - Nature Enjoyers (10.7%)
Families - Nature Enjoyers (5.6%)
Older Nature Enjoyers (7.3%)
Average Age (years)
High Importance
Neutral Importance
In the International Australian market four segments have been identified.
Nature Enthusiasts - those who stated that the most important factor in taking their trip was to undertake nature based activities.
Those who stated that undertaking nature based activities is a major factor separated into three other segments based on shared characteristics (age, income and behaviours).
Section 3 : Domestic and International Segments EMDAEconomic and Market Development Advisers
24/12/07 Tarkine Phase 1 Final Report 11 Economic and Market Development Advisers
Segment 1 Nature Enthusiasts
Their accommodation preferences provides a guide to the accommodation component of the concept development.
Nature Enthusiasts are well above average in staying in camping areas either in a National / State Park or in a Caravan Park.
Below average in commercial accommodation - especially 4 to 5 Star.
This highlights the requirement for quality , well sited camping areas.
Source : NVS
39.1
19.9
0.6
0.7
6.2
11.7
0.7
0.5
1.5
3.1
18.7
15.3
13
9.3
6.9
6.3
4.6
3.7
2.8
2.5
Friends/Rels
Standard hotel
Camping-national park
Caravan park- camping
Self C Flat
4 to 5 Star
Caravan park- cabin
Caravan park with van
B and B
Serviced apartment
Type of Accommodation - %
EMDAEconomic and Market Development Advisers
All Trips
Nature Enthusiasts
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 12 Economic and Market Development Advisers
1.4
4.1
7
4.7
4.4
2.5
2.8
0.8
0.4
4.4
13.4
13.2
11.9
10.9
9.4
8.5
7.7
7.7
7.5
6.6
Water activities/sports
Exercise
Daytrip
Museums/art galleries
History/heritage
Wildlife parks/zoos
Public gardens
Surfing
Snorkelling
Markets
Activities - %
Segment 1 Nature Enthusiasts (Top 20 Activities) - %
Their activity preferences provides a guide to the activities component of the concept development.
Nature Enthusiasts are well above average in participation in nature related activities - especially bushwalking (range of opportunities - not just one) , the beach, sight seeing (quality areas) - but also eating out - not necessarily at the natural location but within an appropriate distance. In the case of the Tarkine coastal areas aligned to their needs are likely to appeal.
This provides the hierarchy of activities required to maximise the appeal to this segment.
Source : NVS
45.7
24.2
28.7
8.5
7
25.3
41.9
7.3
22.1
8
54.6
46.7
44.3
42.6
42.4
30.3
24.7
24.1
20.7
20.5
Restaurants
Beach
Sight seeing
National/State parks
Bushwalking
Shopping (pleasure)
Visit friends/rels
Picnics/BBQs
Pubs clubs discos etc
Go fishing
Activities - %
EMDAEconomic and Market Development Advisers
All Trips
Nature Enthusiasts
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 13 Economic and Market Development Advisers
Segment 1 Nature Enthusiasts
Nature Enthusiasts nominate that seeing natural beauty is the most important need (74.7%). This is likely to be a more passive activity rather than close to nature which implies a more active need.
Escaping towns/cities, being close to nature and the opportunity to rest and relax are very important needs as well.
Being with friends and relatives who share a common interest (ie :- natural environments) is also an important need.
Braggable / status is quite low as is an educational experience.
Source : NVS
74.7
71.2
70.1
67.3
62
54.7
53.9
44.1
40.9
33.4
27.7
Natural Beauty
Escape towns/city
Close to nature
Rest and Relax
Get away from Crowds
Be with friends/rels
New Experiences
Physically Active
Exciting
Educational Experience
Braggable
Needs - % nominate very important
EMDAEconomic and Market Development Advisers
Nature Enthusiasts
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 14 Economic and Market Development Advisers
Segment 1 Nature Enthusiasts - Travel Party and Channel to market
Nature Enthusiasts like to travel in groups with people with like minded interests. A key aspect here is the lack of children in the travel parties.
They are very heavy users of websites as a source of information, highlighting the importance of a strong web based presence. Reputation (word of mouth) is also a key source of information and can take years to establish.
Source : NVS
11.3
27.5
24.5
10.9
18.8
2.1
2.1
1.7
Alone
Adult couple
Family group
Friends/rels-with kids
Friends/rels - no kids
Business associates
School/uni group
Community group/club
Travel Party - %
EMDAEconomic and Market Development Advisers
59
41.5
36.3
35.5
30.2
10.5
8.8
7.8
6.4
6.2
Websites
Word of mouth
Brochures
Travel/guide books
Travel Agent
Tassie free call
Magazines
Airline
Motoring Club
Tassie Travel Centre
Trip Planning Sources Prior to Arrival - %
Source : TVS
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 15 Economic and Market Development Advisers
Segment 2 Younger - nature enjoyers
Younger nature enjoyers above average in staying with friends and rels (low cost accommodation an appeal) - but also camping in a National Park.
They like a splurge as well and are above average in staying in 4 to 5 Star.
Source : NVS
39.1
20.7
11.7
0.6
6.2
0.4
0.7
0.7
41.9
15.1
12
10.3
6.4
5
4.7
4.2
Friends/Rels
Standard hotel
4 to 5 Star
Camping-national park
Self C Flat
Camping by road
Caravan park- cabin
Caravan park- camping
Type of Accommodation - %
EMDAEconomic and Market Development Advisers
All Trips
Younger - nature enjoyers
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 16 Economic and Market Development Advisers
7
1.4
4.1
4.4
4.4
4.7
2.9
6.9
3.1
2.8
15
12.5
11.9
11.3
10
8.8
8.4
8.1
8.1
7.8
Daytrip
Water activities/sports
Exercise
History/heritage
Markets
Museums/art galleries
Visit wineries
Other outdoor activities
Play golf
Public gardens
Activities - %
Younger nature enjoyers are well above average in going to the beach, sight seeing and bushwalking (range of bushwalks) - but also like their eating out, going to the pub and restaurants. Integrating the beach will be a key to maximising the appeal to this segment, also including a range of bushwalking opportunities to experience the natural environment.
Source : NVS
45.7
24.2
28.7
7
41.9
25.3
22.1
8.5
7.3
8
55.9
53.4
50.9
49.1
43.4
40
35.9
34.1
28.1
23.1
Restaurants
Beach
Sight seeing
Bushwalking
Visit friends/rels
Shopping (pleasure)
Pubs clubs discos etc
National/State parks
Picnics/BBQs
Go fishing
Activities - %
EMDAEconomic and Market Development Advisers
All Trips
Segment 2 Younger- nature enjoyers
Younger - nature
enjoyers
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 17 Economic and Market Development Advisers
Young Nature Enjoyers nominate escaping from towns and the city as their most important need (71.8%).
Opportunities to rest/relax and experience natural beauty are also important needs.
Source : NVS
74.7
71.2
70.1
67.3
62
54.7
53.9
44.1
40.9
33.4
27.7
62.8
71.8
50.6
68.4
57.3
46.9
40.2
38.2
39.3
15
11.9
Natural Beauty
Escape towns/city
Close to nature
Rest and Relax
Get away from Crowds
Be with friends/rels
New Experiences
Physically Active
Exciting
Educational Experience
Braggable
Needs - % nominate very important
EMDAEconomic and Market Development Advisers
Younger - Nature Enjoyers
Segment 2 Younger- nature enjoyers
Nature Enthusiasts
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 18 Economic and Market Development Advisers
Segment 2 Younger Nature Enjoyers - Travel Party and Channel to market
They are more likely to travel as a couple or with friends / relatives.
They are heavy users of websites and rely heavily on word of mouth, this highlights the time taken for places to become established - word of mouth generally works slowly.
Source : NVS
6.3
35.3
14.7
15.3
25.3
1.3
0
0.3
Alone
Adult couple
Family group
Friends/rels - with child
Friends/rels - no kids
Business associates
School/uni group
Community group/club
Travel Party - %
EMDAEconomic and Market Development Advisers
53.1
54.5
35.4
45.4
20.7
2
7.7
10.6
3.6
9.6
Websites
Word of mouth
Brochures
Travel/guide books
Travel Agent
Tassie free call
Magazines
Airline
Motoring Club
Tassie Travel Centre
Trip Planning Sources Prior to Arrival - %
Source : TVS
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 19 Economic and Market Development Advisers
Segment 3 Families - nature enjoyers
Familiy nature enjoyers above average in staying in self contained flats and their own holiday house. The presence of children makes travelling around less appealing.
They are also above average in camping in State/National Parks and camping in a Caravan Park.
They are below above in staying in 4 to 5 Star.
Source : NVS
39.1
6.2
20.7
4
0.7
11.7
0.6
0.4
0.7
23.6
19.9
17.1
8.3
7.4
7.2
7.2
5.3
5
Friends/Rels
Self C Flat
Standard hotel
Own House
Caravan park- camping
4 to 5 Star
Camping-national park
Camping by road
Caravan park- cabin
Type of Accommodation - %
EMDAEconomic and Market Development Advisers
All Trips
Family - nature enjoyers
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 20 Economic and Market Development Advisers
4.4
2.5
4.7
4.1
1.4
4.4
6.9
7
4.8
5.1
14.1
13.8
12.1
11.8
11.5
10.8
9
8.7
8.5
7.4
History/heritage
Wildlife parks/zoos
Museums/art galleries
Exercise
Water activities/sports
Markets
Other outdoor activities
Daytrip
Play other sports
Movies or videos
Activities - %
For the nature enjoying families - the beach is their biggest activity, followed closely by going to a restaurant and sight seeing.
They are above average bushwalkers as well.
With this segment finding appeals that satisfy the whole family will be the challenge - keeping the kids happy.
Source : NVS
24.2
45.7
28.7
25.3
7
41.9
8.5
8
22.1
7.3
60.5
60.3
52.6
42.1
36.2
35.9
31
27.2
26.7
21.3
Beach
Restaurants
Sight seeing
Shopping (pleasure)
Bushwalking
Visit friends/rels
National/State parks
Go fishing
Pubs clubs discos etc
Picnics/BBQs
Activities - %
EMDAEconomic and Market Development Advisers
All Trips
Segment 3 Families - nature enjoyersSection 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 21 Economic and Market Development Advisers
Family - nature enjoyers they are most interested in rest and relaxing.
Natural Beauty rates very highly as well - with 62.7% nominating this as an important need.
Opportunities to relax with familiy and friends is an important appeal.
Source : NVS
74.7
71.2
70.1
67.3
62
54.7
53.9
44.1
40.9
33.4
27.7
62.7
55.6
46.7
69.2
51.5
58.5
46.2
43.3
31.7
28.3
9.5
Natural Beauty
Escape towns/city
Close to nature
Rest and Relax
Get away from Crowds
Be with friends/rels
New Experiences
Physically Active
Exciting
Educational Experience
Braggable
Needs - % nominate very important
EMDAEconomic and Market Development Advisers
Families - Nature Enjoyers
Segment 3 Families- nature enjoyers
Nature Enthusiasts
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 22 Economic and Market Development Advisers
Segment 3 Families Nature Enjoyers - Travel Party and Channel to market
Source : NVS
1
13.8
63.8
12.3
4.9
0.3
3.1
0.8
Alone
Adult couple
Family group
Friends/rels - with child
Friends/rels - no kids
Business associates
School/uni group
Community group/club
Travel Party - %
EMDAEconomic and Market Development Advisers
59.6
47.3
50.8
45.1
24.2
13.6
8.8
14.3
12.7
12.2
Websites
Word of mouth
Brochures
Travel/guide books
Travel Agent
Tassie free call
Magazines
Airline
Motoring Club
Tassie Travel Centre
Trip Planning Sources Prior to Arrival - %
Source : TVS
They are more likely to travel as a family group - finding things to do that keeps everyone happy is the challenge.
They are heavy users of information including websites, brochures, travel guides and rely heavily on word of mouth.
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 23 Economic and Market Development Advisers
Segment 4 Affluent Older - nature enjoyers
Affluent Older are more interested in the luxury accommodation - they are well above average in staying in 4 to 5 star accommodation.
They are still above average in camping.
Source : NVS
39.1
11.7
20.7
4
0.5
0.7
0.6
1.5
21.8
16.1
14.9
11.5
8
8
5.7
3.4
Friends/Rels
4 to 5 Star
Standard hotel
Own House
Caravan park with van
Caravan park- cabin
Camping-national park
B and B
Type of Accommodation - %
EMDAEconomic and Market Development Advisers
All Trips
Affluent Older - nature enjoyers
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 24 Economic and Market Development Advisers
20.5
9.4
24.1
10.9
13.2
7.7
0.4
6.6
6
2.8
20
20
18.5
12.3
10.8
10.8
10.8
9.2
9.2
9.2
Go fishing
History/heritage
Picnics/BBQs
Museums/art galleries
Exercise
Surfing
Aboriginal art etc
Guided Tour
Cruise/ferry ride
Whale/dolphin watchin
Activities - %
Affluent Older Nature Enjoyers are well above average in going to restaurants and also outdoor activities.
They are also above average in shopping and well above average in interest in Aboriginal Art.
Source : NVS
45.7
7
28.7
8.5
24.2
41.9
25.3
22.1
2.9
7
76.9
61.5
56.9
46.2
44.6
43.1
40
23.1
23.1
21.5
Restaurants
Bushwalking
Sight seeing
National/State parks
Beach
Visit friends/rels
Shopping (pleasure)
Pubs clubs discos etc
Visit wineries
Daytrip
Activities - %
EMDAEconomic and Market Development Advisers
All Trips
Segment 4 Affluent Older - nature enjoyersSection 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 25 Economic and Market Development Advisers
Affluent Older - nature enjoyers, being close to nature, rest and relaxing are important appeals, also being with friends and relatives.
One of the key concept development tasks will be properly developing an experience that aligns with their need for being close to nature -this implies a more active interaction with nature rather than the more passive natural beauty.
Source : NVS
74.7
71.2
70.1
67.3
62
54.7
53.9
44.1
40.9
33.4
27.7
50
46.9
68.2
65.2
53.8
59.7
42.4
44.6
20
21.2
9.2
Natural Beauty
Escape towns/city
Close to nature
Rest and Relax
Get away from Crowds
Be with friends/rels
New Experiences
Physically Active
Exciting
Educational Experience
Braggable
Needs - % nominate very important
EMDAEconomic and Market Development Advisers
Affluent Older - Nature Enjoyers
Segment 4 Affluent Older- nature enjoyers
Nature Enthusiasts
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 26 Economic and Market Development Advisers
Segment 4 Affluent Older Nature Enjoyers - Travel Party and Channel to market
This group is most likely to travel as a couple or with friends/relatives - without kids.
For information sources they use extensively websites and word of mouth.
Source : NVS
9.2
47.7
4.6
10.8
27.7
0
0
0
Alone
Adult couple
Family group
Friends/rels - with child
Friends/rels - no kids
Business associates
School/uni group
Community group/club
Travel Party - %
EMDAEconomic and Market Development Advisers
58.1
36
33.6
35.4
20.6
8.9
3.9
4.4
12.2
12.1
Websites
Word of mouth
Brochures
Travel/guide books
Travel Agent
Tassie free call
Magazines
Airline
Motoring Club
Tassie Travel Centre
Trip Planning Sources Prior to Arrival - %
Source : TVS
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 27 Economic and Market Development Advisers
Segment 5 Lower Older - nature enjoyers
Lower Older - more interested in lower cost accommodation.
They have a well below average interest in 4/5 Star accommodation due to the costs involved.
Source : NVS
39.1
20.7
6.2
4
11.7
0.6
0.5
0.4
0.4
27
12.9
12.9
8.2
6
6
4.3
4.3
2.6
Friends/Rels
Standard hotel
Self C Flat
Own House
4 to 5 Star
Camping-national park
Caravan park with van
Caravan park- staying in a
Camping by road
Type of Accommodation - %
EMDAEconomic and Market Development Advisers
All TripsLower Older - nature enjoyers
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 28 Economic and Market Development Advisers
15.5
13.5
11.4
9.3
8.8
8.3
8.3
6.7
6.7
6.2
20
20
18.5
12.3
10.8
10.8
10.8
9.2
9.2
9.2
Museums/art galleries
Markets
Daytrip
Wildlife parks/zoos
Movies or videos
History/heritage
Cruise/ferry ride
Visit wineries
Public gardens
Whale/dolphin watchin
Activities - %
For this group their most popular interest is in sight seeing, but they also like bushwalking and eating out.
With this group the sight seeing will be critical to winning their patronage.
Source : NVS
28.7
45.7
24.2
41.9
7
25.3
8.5
7.3
22.1
8
60.6
57.5
42
40.4
39.9
33.2
26.9
24.9
23.3
16.6
Sight seeing
Restaurants
Beach
Visit friends/rels
Bushwalking
Shopping (pleasure)
National/State parks
Picnics/BBQs
Pubs clubs discos etc
Go fishing
Activities - %
EMDAEconomic and Market Development Advisers
All Trips
Segment 5 Lower Older - nature enjoyersSection 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 29 Economic and Market Development Advisers
For this group the natural beauty of the area is the core appeal also the opportunity to rest and relax.
They also like the opportunity to be physically active as well
Escaping towns and cities is also an important appeal.
Source : NVS
74.7
71.2
70.1
67.3
62
54.7
53.9
44.1
40.9
33.4
27.7
71.9
64.2
43.5
64.6
62.2
57.5
49.2
49.2
34.9
25.7
22.8
Natural Beauty
Escape towns/city
Close to nature
Rest and Relax
Get away from Crowds
Be with friends/rels
New Experiences
Physically Active
Exciting
Educational Experience
Braggable
Needs - % nominate very important
EMDAEconomic and Market Development Advisers
Affluent Older - Nature Enjoyers
Segment 5 Lower Older- nature enjoyers
Nature Enthusiasts
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 30 Economic and Market Development Advisers
Segment 5 Lower Older Nature Enjoyers - Travel Party and Channel to market
They are most likely to travel as a couple and their most important information source is word of mouth followed closely by websites.
With this group catering to the differences often difference in physical capability within the couple will be a challenge.
Source : NVS
16.1
43
10.9
13
15.5
0
1
0
Alone
Adult couple
Family group
Friends/rels - with child
Friends/rels - no kids
Business associates
School/uni group
Community group/club
Travel Party - %
EMDAEconomic and Market Development Advisers
37.8
39.5
33.3
33.3
27.7
8.5
6.5
4.9
18.8
9.8
Websites
Word of mouth
Brochures
Travel/guide books
Travel Agent
Tassie free call
Magazines
Airline
Motoring Club
Tassie Travel Centre
Trip Planning Sources Prior to Arrival - %
Source : TVS
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 31 Economic and Market Development Advisers
Domestic % of Visits / $ Spending
Nature Enthusiasts comprise 10.5% of total Australian trips and in total spend $4.2B on holidays domestically.
Families - Nature Enjoyers are the biggest segment in terms of numbers and $ spend ($4.9B).
In total this is a $13.8B market (Australia - Domestic).
Source : NVS
EMDAEconomic and Market Development Advisers
10.6
6.3
12.3
1.7
3
10.5
7.2
8.8
1.5
4.3
Enthusiasts
Younger
Families
Affluent
Lower
% of Visits - Australia
4216
2492
4894
688
1197
Enthusiasts
Younger
Families
Affluent
Lower
Holiday Spend $M - Australia
In total 32.3% of all trips
In total 34% of total Spend
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 32 Economic and Market Development Advisers
Australia - Average Value ($ per night / per trip)
Families - Nature Enjoyers spend the most per person and per night.
All segments are big spenders, only the Lower Older Segments are below average because of income constraints.
Source : NVS
EMDAEconomic and Market Development Advisers
159.2
142.9
197.4
156.2
92.2
Enthusiasts
Younger
Families
Affluent
Lower
$ Spend Per Night per person ($)
896.1
776.4
1251
1054.9
618.5
Enthusiasts
Younger
Families
Affluent
Lower
Spend per Trip per person ($)
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 33 Economic and Market Development Advisers
Domestic Tasmania Market Share (%)
Tasmania has a small share of each segment - 6.2% of the Enthusiasts and only 0.8% of the Affluent Nature Enjoyers.
Source : NVS
EMDAEconomic and Market Development Advisers
6.2
4.1
3.1
0.8
3.6
Enthusiasts
Younger
Families
Affluent
Lower
Market Share - Visits (%)
Total Tas. Share 2.7%
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 34 Economic and Market Development Advisers
Domestic Tasmania - Preference / Conversion
Tasmania already a conversion of Enthusiasts (70.4%) amongst those who have a Preference to visit Tasmania - (Tas. average 41.8%) and is ahead of WA 64.7% and on a par with overseas (70.4%) and just behind Qld (84%).
Amongst the enjoyers conversion in much lower (40.9%) as is behind the overall average for Tasmania. The younger and familles are lowest - well behind the conversion that other States achieve and Territories (other than the NT). For example amongst the families WA achieves 53% conversion, Qld 78%. Amongst the younger segments - WA achieves 56% conversion, Qld 92%, OS 60% conversion.
Source : RMR HTS
EMDAEconomic and Market Development Advisers
189
70
130
81
127
Enthusiasts
Younger
Families
Affluent
Lower
Prefer a Holiday in Tas ('000)
70.4
34.3
25.4
53.1
49.6
Enthusiasts
Younger
Families
Affluent
Lower
Conversion (% Visit)
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 35 Economic and Market Development Advisers
International Visitors - Aus. % of Visits / $ Spending
In the International market - the younger segment has the highest total spend ($1.6B).
The Enthusiasts are worth $1.2B in spending.
The total International market is worth $4.1B.
Source : IVS
EMDAEconomic and Market Development Advisers
8.6
11.5
4.2
5.3
10.8
10.7
5.6
7.3
Enthusiasts
Younger
Families
Older
% of Visits - Australia
1199
1601
586
744
Enthusiasts
Younger
Families
Older
Holiday Spend $M - Australia
In total 34.6% of all trips
In total 29.6% of total Spend
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 36 Economic and Market Development Advisers
Summary Spend
In total the market is worth $17.6B.
The biggest segment is the Enthusiasts - worth $5.4B (30.7% of the total spend).
The older segments have the lowest total spend ($2.6B).
Source : IVS
EMDAEconomic and Market Development Advisers
5415
4093
5480
2629
Enthusiasts
Younger
Families
Older
Holiday Spend $M
Section 3 : Domestic and International Segments
24/12/07 Tarkine Phase 1 Final Report 37 Economic and Market Development Advisers
Tasmania - Nature Segments
Number of visitors is all the segments is static - consistent with a softening in Tassie's standing with world class natural attractions.
The nature Segment's share of Tasmania's visitor market is falling - this is reflects the erosion of the appeal of Tassies natural attractions.
Source : TVS
J 01 J 02 J 03 J 04 J 05 J 06 J 07210
220
230
240
250
260
270
280
290
300
310
320
34
36
38
40
42
44
46
48
Tas. Nature Segments - Total and Patronage Share
EMDAEconomic and Market Development Advisers
Share of Tas. Visitors (%)
Number of Visitors ('000)
Section 4 : Tasmania's Performance
24/12/07 Tarkine Phase 1 Final Report 38 Economic and Market Development Advisers
The Enthusiasts are now growing again.
Others are either soft or falling.
EMDAEconomic and Market Development Advisers
Tasmanian Visitors - Segment Trends
J 01
J 02
J 03
J 04
J 05
J 06
J 07
45
50
55
60
65
70
Younger Nature Enjoyers - ('000)
J 01
J 02
J 03
J 04
J 05
J 06
J 07
25
30
35
40
45
50
Family Nature Enjoyers - ('000)
Source : TVS
J 01
J 02
J 03
J 04
J 05
J 06
J 07
45
50
55
60
65
70
75
Enthusiasts - ('000)J
01
J 02
J 03
J 04
J 05
J 06
J 07
45
50
55
60
65
70
Affluent Older Nature Enjoyers - ('000)
J 01
J 02
J 03
J 04
J 05
J 06
J 07
30
40
50
60
70
80
Lower Nature Enjoyers - ('000)
Section 4 : Tasmania's Performance
Source : TVS
24/12/07 Tarkine Phase 1 Final Report 39 Economic and Market Development Advisers
In terms of share of Tassie visitors - all segments have fallen over the last five years - although the Enthusiasts are recovering.
Once again highlights the issue of losing relative appeal in a core appeal area for Tasmania.
EMDAEconomic and Market Development Advisers
Tasmanian Visitors - Segment Trends- Share of Tassie Visitors (%)
J 01
J 02
J 03
J 04
J 05
J 06
J 07
6
7
8
9
10
11
Younger Nature Enjoyers - (%)
J 01
J 02
J 03
J 04
J 05
J 06
J 07
4
4.5
5
5.5
6
6.5
7
Family Nature Enjoyers - (%)
Source : TVS
J 01
J 02
J 03
J 04
J 05
J 06
J 07
7
7.5
8
8.5
9
9.5
10
10.5
Enthusiasts - (%)J
01
J 02
J 03
J 04
J 05
J 06
J 07
7
8
9
10
11
12
Affluent Older Nature Enjoyers - (%)
J 01
J 02
J 03
J 04
J 05
J 06
J 07
7
7.5
8
8.5
9
9.5
10
10.5
Lower Nature Enjoyers - (%)
Section 4 : Tasmania's Performance
24/12/07 Tarkine Phase 1 Final Report 40 Economic and Market Development Advisers
Domestic and Int. - Tasmania - % of Visits / $ Spending
The Enthusiasts are 7.5% of visitors to Tasmania and account for 12.5% of spending - in total they are spending $149.1M.
The Lower Older segments are the biggest segment in terms of value - not only because of the size of the segment in terms of visitors but also because they stay longer.
Source : TVS
EMDAEconomic and Market Development Advisers
12.7
6.6
7.3
11
13.5
7.5
7.5
4.4
7.7
7.8
Enthusiasts
Younger
Families
Affluent
Lower
% of Visits - Tasmania
149.1
77.2
85.9
129.5
158.6
Enthusiasts
Younger
Families
Affluent
Lower
Holiday Spend $M - Tasmania
In total 34.9% of all
trips
In total $600m of total Spend /
51.2%
% of Spend in Tassie
Section 4 : Tasmania's Performance
24/12/07 Tarkine Phase 1 Final Report 41 Economic and Market Development Advisers
Tasmania - Average Value ($ per night / per trip)
The Families (nature enjoyers) , Enthusiasts and Families are the biggest spenders per trip.
On a yield per night basis they are all relatively big spenders - even the older lower income.
Source : TVS
EMDAEconomic and Market Development Advisers
226
144
258
223
173
Enthusiasts
Younger
Families
Affluent
Lower
$ Spend Per Night per person in Tassie ($)
2468
1263
2435
2063
2519
Enthusiasts
Younger
Families
Affluent
Lower
Spend per Trip per person in Tassie ($)
Section 4 : Tasmania's Performance
24/12/07 Tarkine Phase 1 Final Report 42 Economic and Market Development Advisers
Tasmania - Average Length of Stay (Days)
The Lower segments stay the longest in Tasmania on their total trip (14.5 days). They have more time available generally.
The Enthusiasts also take a longer holiday - 10.9 days. Visiting the wilderness is their passion and they devote as much time possible to this pursuit.
The other three segments (Younger, Families and Affluent) have a similar length of stay - all over a week.
Source : TVS
EMDAEconomic and Market Development Advisers
10.9
8.8
9.4
9.2
14.5
Enthusiasts
Younger
Families
Affluent
Lower
Avge. Length of Stay in Tassie
Section 4 : Tasmania's Performance
24/12/07 Tarkine Phase 1 Final Report 43 Economic and Market Development Advisers
Tasmania's status as a State with iconic natural wonders (a key element of the nature tourism market) has fallen and is well behind Queensland and NSW. This is a key strategic issue confronting tourism in Tasmania as this is a key platform. Lifting this falling position will require the development and promotion of new natural iconic areas - however, this is not an easy task to achieve and if the overall appeal of the natural appeal of Tassie continues to deteriorate then this will become even harder.
The nature tourism market is a very valuable and therefore is a big prize. This is a high yielding segment - worth $13.8B in the Domestic market and $4.1B in the Inbound market.
The Tarkine is a possible development that could lift Tassie's status in this market. To achieve this position will require a focus on a number of the segments identified, especially the Nature Enthusiasts, by offering an accessible but authentic coast based nature experiences.
The 1st Priority segment is the Nature Enthusiasts :-This is a valuable segment - both already to Tasmania and also in the Australian market overall.Their needs are very clear - that is the first priority is the appeal of the natural area - does it have the goods ? - then of course how accessible it is and is it managed in such a way that the "away from it all" appeal still holds.In terms of activities a high quality sight seeing experience is a must, ideally with beach components. The provision of quality camping areas with a range of highly engaging activities (ie:- a range of quality bushwalking) is a must.This segment will establish the reputation of the area - which is critical in buildings its appeal.
The other segments which are engaged with nature are potentially appealing segments for the Tarkine. Nature has a strong appeal although not to the extent of the nature enthusiasts. Each of the other segments (four) has its own appeals that need to be aligned with to be successful.
Our Initial ConclusionsEMDA
Economic and Market Development Advisers
Section 5 : Summary
24/12/07 Tarkine Phase 1 Final Report 44 Economic and Market Development Advisers
The four nature enjoying segments have core similarities :- A nature experience is a major appeal of their holidays.They are after a very high quality, engaging experiences including new ones as well.They are all keen to get away from the crowds.Camping areas, BBQ/Picnic areas in quality locations appeal.Degradation of the natural environment are real switch offs.There needs to be other appeals satisfied as part of their trip (eating out, other sights).
However, they also have very important differences :-The younger segments (segment 2) - more active, some higher quality accommodation, time together (couples).With the families (segment 3) all the travel party must be catered for and enjoy the experience, parents and the kids, more self contained accommodation.The older affluent (segment 4) - no kids, close to nature, opportunities to interact with friends and rels on the same trip.The lower older (segment 5) - more a lower cost experiences, natural beauty, physically active, catering to the needs of both of the couples.
Our Initial Conclusions (continued)EMDA
Economic and Market Development Advisers
Section 5 : Summary
24/12/07 Tarkine Phase 1 Final Report 45 Economic and Market Development Advisers
While every effort has been made to ensure accuracy of the data in this report, EMDA has not audited the data sources and therefore does not accept any responsibility in relation to financial and/or decisions based on this information.
Disclaimer
24/12/07 Tarkine Phase 1 Final Report 46 Economic and Market Development Advisers