Freelance Graphics - Phase 1 Final Report

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


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.


Project Purpose


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.


Contextual Statement - based on Findings to Date


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


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



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


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



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


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.


Segment Descriptions


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



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).



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 - %


All Trips

Nature Enthusiasts



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 - %


All Trips

Nature Enthusiasts



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


Nature Enthusiasts



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 - %


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



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


Self C Flat

Camping by road

Caravan park- cabin




All Trips

Younger - nature enjoyers



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


Exercise

History/heritage

Markets


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)



Picnics/BBQs

Go fishing

Activities - %


All Trips

Segment 2 Younger- nature enjoyers

Younger - nature

enjoyers



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



New Experiences

Physically Active

Exciting


Braggable



Younger - Nature Enjoyers

Segment 2 Younger- nature enjoyers

Nature Enthusiasts



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


Business associates

School/uni group


Travel Party - %


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



Source : TVS



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


4 to 5 Star


Camping by road

Caravan park- cabin



All Trips

Family - nature enjoyers



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


Exercise


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


Go fishing


Picnics/BBQs

Activities - %


All Trips

Segment 3 Families - nature enjoyersSection 3 : Domestic and International Segments


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



New Experiences

Physically Active

Exciting


Braggable



Families - Nature Enjoyers

Segment 3 Families- nature enjoyers

Nature Enthusiasts



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



Business associates

School/uni group


Travel Party - %


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



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.



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- cabin


B and B



All Trips

Affluent Older - nature enjoyers



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


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


Beach

Visit friends/rels

Shopping (pleasure)


Visit wineries

Daytrip

Activities - %


All Trips

Segment 4 Affluent Older - nature enjoyersSection 3 : Domestic and International Segments


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



New Experiences

Physically Active

Exciting


Braggable



Affluent Older - Nature Enjoyers

Segment 4 Affluent Older- nature enjoyers

Nature Enthusiasts



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



Business associates

School/uni group


Travel Party - %


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



Source : TVS



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



Caravan park- staying in a

Camping by road



All TripsLower Older - nature enjoyers



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


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)


Picnics/BBQs


Go fishing

Activities - %


All Trips

Segment 5 Lower Older - nature enjoyersSection 3 : Domestic and International Segments


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



New Experiences

Physically Active

Exciting


Braggable



Affluent Older - Nature Enjoyers

Segment 5 Lower Older- nature enjoyers

Nature Enthusiasts



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



Business associates

School/uni group


Travel Party - %


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



Source : TVS



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


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



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


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 ($)



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


6.2

4.1

3.1

0.8

3.6

Enthusiasts

Younger

Families

Affluent

Lower

Market Share - Visits (%)

Total Tas. Share 2.7%



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


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)



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


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



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


5415

4093

5480

2629

Enthusiasts

Younger

Families

Older

Holiday Spend $M



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


Share of Tas. Visitors (%)

Number of Visitors ('000)



The Enthusiasts are now growing again.

Others are either soft or falling.


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)


Source : TVS


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.


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 - (%)



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


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



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


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 ($)



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


10.9

8.8

9.4

9.2

14.5

Enthusiasts

Younger

Families

Affluent

Lower

Avge. Length of Stay in Tassie



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


Section 5 : Summary


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


Section 5 : Summary


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


Freelance Graphics - Phase 1 Final Report

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