TOURISM VICTORIA 2014–15 - Business Victoria · the 2015 Australian Tourism Exchange,...

TOURISM VICTORIA 2014–15

Tourism VictoriaABN 18 381 772 530

tourism.vic.gov.au

Level 32, 121 Exhibition Street, Melbourne VIC 3000 AustraliaGPO Box 2219T, Melbourne VIC 3001 Australia

Tel (03) 9653 9777 Fax (03) 9653 9722

20 October 2015

The Hon. John Eren MPMinister for Tourism and Major EventsLevel 36, 121 Exhibition StreetMelbourne VIC 3000

Cover image: Pedal to Produce – Victoria’s High Country

Dear Minister,

RE: Tourism Victoria Annual Report 2014–15I am pleased to submit to you Tourism Victoria’s Annual Report. The document outlines the achievements of the organisation for the year ended 30 June 2015.

The report has been prepared in accordance with the Tourism Victoria Act 1992 and Financial Management Act 1994.

Yours sincerely,

Andrew Dwyer ChairmanTourism Victoria

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Tourism Victoria Annual Report 2014-15

Contents1 Our profile

2 Chairman’s foreword

4 Chief Executive’s foreword

6 Our structure

6 Tourism Victoria Board

7 Board members’ meeting attendance

7 Output targets and performance

8 Victoria’s tourism performance

Our ProfileAs a Victorian State Government statutory authority, established by the Tourism Victoria Act 1992, Tourism Victoria is the vehicle through which the State Government participates in the tourism and travel industries.

The Act sets out Tourism Victoria’s objectives as follows:

• To market Victoria as a tourist destination for interstate and international travellers.

• To increase

– the number of travellers to Victoria. – travellers’ or tourists’ length of stay at

destinations in Victoria. – the use of tourist facilities in Victoria

• To increase the amount of travel within Victoria and the use of tourist facilities by Victorians.

• To improve and develop tourist facilities in Victoria.

• To support and coordinate the provision of tourist facilities in Victoria.

• To provide more efficient and effective utilisation of investment in travel and tourism in Victoria.

As well, our overarching objective is to implement State Government policies as they relate to tourism development in Victoria and contribute to whole of government programs and policy implementation.

ValuesTourism Victoria has embraced the organisational values of accountability, respect, responsiveness, integrity, impartiality and leadership, which are outlined in the Public Administration Act 2004.

12 Priority one: Maximising our digital marketing opportunities

13 Priority two: Attracting high yield international visitors

18 Priority three: Increasing the domestic market

20 Priority four: Attracting and leveraging events

23 Priority five: Air services attraction

24 Priority six: Investment attraction

25 Priority seven: Investing in our workforce

27 Legislative requirements

30 Five year comparison

31 Financial report

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Chairman’s Foreword

Chairman’s Foreword

I am pleased to present the Tourism Victoria Annual Report 2014-15, my first as Chairman of Tourism Victoria.

During my time in the tourism industry, both as an operator and member of the Tourism Victoria Board, I have seen many changes and challenges. Tourism Victoria’s unwavering commitment to achieving better outcomes for our industry and our State has led to continued growth and success.

Tourism remains a significant economic driver for Victoria, worth $20.6 billion a year in 2013-14, 5.9 per cent of the Gross State Product. The industry provides jobs for 206,000 Victorians, contributing 7.2 per cent of employment in Victoria.

In partnership with industry and other areas of government, Tourism Victoria has achieved another solid year of results in 2014-15. Visitors to and within Victoria spent a total of $21.2 billion during year ending December 2014 (including domestic daytrip and overnight expenditure, and international expenditure), this equates to 22.8 per cent of tourism expenditure in Australia. Victoria experienced an increase of 10.5 per cent year-on-year, higher than the national average (+3.9 per cent).

Spending by international visitors to Victoria reached an all-time high of $5.0 billion. China continues to be Victoria’s largest source market and had the highest expenditure ($1.4 billion) of all international visitors to Victoria in year ending December 2014, following 19.7 per cent year-on-year growth. Chinese overnight visitor expenditure now accounts for more than a quarter (27.4 per cent) of international visitor expenditure in Victoria.

Investment attraction remains an organisational priority, with new investment such as the Vibe Hotel and Conference Centre in Marysville, Larwill Studio’s in Parkville, Brady Hotel in Melbourne, Quest Melbourne Airport and Wyndham on Williams.

The Government’s event platform continues to generate significant economic impact for the State and deliver awareness of Melbourne and regional Victoria through global broadcasts. During 2014, it was announced that the Australian Grand Prix would remain in Melbourne until 2020. Victoria hosted matches as a part of the ICC Cricket World Cup 2015, including the final between Australia and New Zealand, the 2015 AFC Asian Cup, the inaugural Cadel Evans Road Race was held in Geelong, The Fashion World of Jean Paul Gaultier exhibition was held at the National Art Gallery and the WWI Centenary Exhibition at Melbourne Museum. Business events also continued to deliver positive results for Melbourne during the year, as an example the International Aids Conference attracting nearly 12,000 delegates.

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My sincere thanks go to my fellow Tourism Victoria Board members for their insight, leadership and expertise during 2014-15. I would also like to thank Dr Janine Kirk for her commitment to the Board over the previous seven years.

I acknowledge the support and leadership of the Chief Executive, Leigh Harry, his dedicated leadership team and talented staff who work hard to respond to industry needs and strive for excellence.

To the Hon John Eren MP, Minister for Tourism and Major Events and the former Minister for Tourism and Major Events, the Hon Louise Asher MP, our thanks and appreciation for your leadership and support of the organisation and the tourism and events industry in Victoria.

Thank you to the industry, tourism operators and dedicated workforce for your continued enthusiasm and resilience to the success of the industry.

Tourism Victoria will continue to work collaboratively with our regional, government and broader industry partners to develop the industry for this State.

Andrew DwyerChairman

During my time in the tourism industry, both as an operator and member of the Tourism Victoria Board, I have seen many changes and challenges. Tourism Victoria’s unwavering commitment to achieving better outcomes for our industry and our State has led to continued growth and success.

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Chief Executive’s Foreword

Chief Executive’s Foreword

Tourism Victoria is committed to working with our industry and government partners to deliver on the government’s priority to contribute jobs, exports and regional development to the State’s economy.

This report details the organisation’s achievements in 2014-15 through seven key business plan priorities that are designed to help us achieve these outcomes.

The latest National Visitor Survey and International Visitor Survey results showed Victoria experienced strong growth in overnight visitors to Victoria, with increases of 10.8 per cent and 8.9 per cent respectively, to the year ending December 2014. Expenditure also increased with international visitor expenditure increasing 5.0 per cent to $5.0 billion and domestic overnight expenditure increasing 14.1 per cent to $11.5 billion, year-on-year.

Growth in international visitation was underpinned by an 7.4 per cent increase in seat capacity from new and increased direct international air services. In 2014-15, Victoria attracted new international flights to Melbourne through Air China, China Eastern, United Airlines, and Indonesia AirAsia X.

Tourism Victoria also partnered with Tourism Australia and other State Tourism Organisations on the Restaurant Australia campaign, promoting Australia’s amazing food and wine experiences. During this campaign, Victoria hosted 40 key international food and wine media and influencers. Victoria also hosted the 2015 Australian Tourism Exchange, Australia’s largest annual travel and tourism business-to-business event.

A significant focus of the organisation was the role of Regional Tourism Boards (RTBs) across the State, with a formal review being undertaken in 2014 evaluating the performance and effectiveness of RTBs and their respective Destination Management Plans.

The Victorian Government continues to recognise that tourism is a significant contributor to the State, with the Premier Daniel Andrews announcing a review of Victoria’s Visitor Economy to identify the best way to develop and grow this sector. A review of the Department of Economic Development, Jobs, Transport and Resources regional service delivery model and strategic directions for regional policy was also announced which will further inform the responses to the review of Regional Tourism Boards and Destination Management Plans.

Additionally, in the 2015-16 State Budget, the Victorian Government committed an additional $80 million over four years for the attraction of events and committed to the expansion of the Melbourne Convention and Exhibition Centre.

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Both of these commitments will ensure that Victoria remains a leader in the sporting, cultural and business events sector.

I would like to thank the Tourism Victoria Board for their support, and my leadership team and staff for their continued energy, commitment and passion in a constantly changing and challenging environment. I would also like to thank those staff who departed the organisation this year, as their contribution was greatly valued and wish them the best in the future endeavours.

Thanks also goes to our industry and government partners for their ongoing support and commitment to our important and valuable industry.

Leigh HarryChief Executive

The Victorian Government continues to recognise that tourism is a significant contributor to the State, with the Premier Daniel Andrews announcing a review of Victoria’s Visitor Economy to identify the best way to develop and grow this sector.

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Our Structure

Andrew Fairley AMMember

* As at 30 June 2015

Our structure*

Tourism Victoria Board*

The Hon. John Eren MPMinister for Tourism and Major Events

Leigh HarryChief Executive, Tourism Victoria

Andrew DwyerChairman, Tourism Victoria

Melanie de SouzaGeneral Manager, International Marketing & Airline Services

John DaltonDirector, Strategy and Policy

Felicia MarianiDirector, Marketing

Matthew MulkearnsDirector, Investment Attraction

Richard BoltSecretary, Department of Economic Development,

Jobs, Transport and Resources

Justin HanneyLead Deputy Secretary, Economic Development,

Employment & Innovation, Department of Economic Development, Jobs, Transport and Resources

Dorana WirneGeneral Manager, Destination and Product Marketing


Wendy Smith Deputy Chairman

Craig OpieMember

Helene Bender OAMMember

Cinzia BurnesMember

Alla Wolf-Tasker AMMember

Peter CrinisMember

Mike Brady AMMember


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Board Members’ Meeting Attendance

Board members’ meeting attendance 2014-15

Name Position Meetings Attended Eligible to AttendAndrew Dwyer Chairman 8 8Wendy Smith Deputy Chairman 7 8Craig Opie Member 7 8Alla Wolf-Tasker AM Member 5 8Peter Crinis Member 4* 8Helene Bender OAM Member 8 8Andrew Fairley AM Member 5 8Cinzia Burnes Member 5 8Mike Brady AM Member 7 8

* Leave approved by Minister for Tourism and Major Events for absences.

Tourism Victoria Risk and Audit CommitteeThe Risk and Audit Committee assists the Board of Tourism Victoria in fulfilling its oversight responsibilities. Comprising four non-executive directors, the Committee maintains effective working relationships with the Board, management and the internal and external auditors. The Committee is responsible for ensuring good corporate governance, effective risk management, legal compliance and the strategic direction of Tourism Victoria.

Risk and Audit Committee members’ meeting attendance 2014-15

Name Position Meetings Attended Eligible to AttendWendy Smith Chairman 5 5Alla Wolf-Tasker AM Member 3 5Helene Bender OAM Member 4 5Andrew Dwyer Member 5 5Andrew Fairley AM Member 1 2

Output targets and performance Performance indicator Unit of Measure 2014–15

Actual2014–15

TargetPerformance

variation %Result1

Number of domestic overnight visitors number (million) 20.5 18.5 +10.81 P

Number of visitors (international) number (million) 2.2 2.1 +4.76 P

Visitor expenditure (domestic) $ billion 16.4 14.8 +10.81 P

Visitor expenditure (international) $ billion 5.4 5.1 +5.88 P

Visitor expenditure – regional Victoria (domestic) $ billion 7.7 6.9 +11.59 P

Visitor expenditure – regional Victoria (international) $ million 440 280 +57.14 P

Value of media coverage generated: domestic $ million 25.3 20 +26.5 P

Value of media coverage generated: international $ million 45.8 40 +14.5 P

Victoria’s share of domestic tourism advertising awareness among target markets: interstate

per cent 23 25 -8 ¡

Victoria’s share of domestic tourism advertising awareness among target markets: intrastate

per cent 14.2 16 -11.25 ¡

1 Note:

P Domestic overnight visitors to and within Victoria increased 7.3 per cent to 20.5 million, ahead of the national average (+6.1 per cent). The increase in overnight visitors was driven primarily by the growth in the interstate market.

P Performance target achieved.P In the year ending March 2015, domestic overnight expenditure was $11.7 billion.

Growth in expenditure in Victoria (+8.6 per cent) was ahead of the national average, New South Wales and Queensland. Daytrip expenditure in Victoria of $4.7 billion increased (+7.6 per cent), exceeding the national expenditure average (+1.5 per cent). The year-on-year growth was driven by trips in regional Victoria.

P In the year ending March 2015, growth in international overnight expenditure (+13.9%) was ahead of growth nationally (+9.1%). Strong growth in Chinese visitor expenditure (+31.4%) contributed to higher than anticipated growth.

P Domestic overnight expenditure in regional Victoria grew 4.2 per cent to $4.9 billion, driven by interstate visitors. Daytrip expenditure also grew strongly (+12.1%) ahead of the national regional average (+5.6%).

P Results for this target fell to $277 million in the year ending September 2013, at the time

the target was set. Year-on-year growth for the year ending March 2015 was 38.8 per cent. The growth in expenditure was ahead of key interstate competitors and the national average (+11.9%), and reflect a return to trend.

P The performance target was exceeded largely due to strong performance in quarter three from extensive marketing activity interstate, as well as highly-publicised Victorian major events such as White Night Melbourne, Australian Formula 1 Grand Prix, and the Australian Open.

P The performance target was exceeded due to strong performance in quarter four. These figures include several broadcast projects coming to fruition, the momentum of the national Restaurant Australia campaign in conjunction with the Melbourne Food and Wine Festival, and major editorials in key publications such as the Financial Times UK, Marie Claire Indonesia, Frankfurter Allgemeine Zeitung Germany and ELLE China adding value.

¡ This performance measure does not accurately reflect Tourism Victoria’s activity with regards to digital and other non-traditional media. Victoria’s activity in this space is increasingly directed towards non-traditional media.

¡ This performance measure does not accurately reflect Tourism Victoria’s activity with regards to digital and other non-traditional media. Victoria’s activity in this space is increasingly directed towards non-traditional media.

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Victoria’s tourism performance


Travellers to and within Victoria spent a total of $21.2 billion in the year ending December 2014 (including domestic daytrip, overnight expenditure and international overnight expenditure). This equates to 22.8 per cent of total tourism expenditure in Australia. Victoria experienced an increase of 10.5 per cent year-on-year, above the national average (+3.9 per cent).

Consistent with the long-term national tourism strategy and Victoria’s 2020 Tourism Strategy, Victoria’s aim is for tourism overnight expenditure to reach between $19.9 billion and $24.7 billion by 2020. For the year ending December 2014, Victoria’s overnight expenditure (excluding domestic daytrips) was $16.5 billion. This falls within the tourism industry potential range for the period and reflects an average annual growth rate of 6.2 per cent over the past four years (year ending December 2010–2014), which is higher than the national average of 4.3 per cent.

International visitor figures (latest results available – year ending December 2014)Victoria again recorded its highest number of total international overnight visitors – up 8.9 per cent to 2.1 million for the year ending December 2014. This growth rate is higher than the national average growth rate for the same period of 7.7 per cent. International overnight expenditure reached $5.0 billion, representing a strong 8.1 per cent increase over the past four years (year ending December 2010–2014), and which is higher than the national average for this period of 4.6 per cent.

International visitor growth to Victoria was driven by the Holiday (+9.8 per cent), Visiting Friends and Relatives (+7.7 per cent) and Business segments (+7.5 per cent). Growth in Holiday and Business segments was above the national average and key competitors.

The year-on-year growth in visitor numbers to Victoria was led by China, which increased 21.1 per cent year-on-year to reach 390,500 visitors in the year ending December 2014, as well as growth in other key Asian markets. China was also Victoria’s number one international market in terms of visitors, nights and expenditure in the year ending December 2014. Visitation from core Western markets, including the USA and New Zealand, has also strengthened, as economic conditions in these markets have improved.

Australians’ appetite for overseas travel remains solid, driven by strong price competition in the outbound sector. Australians took almost 9.2 million short-term overseas trips during the year ending March 20151, representing year-on-year growth of 4.8 per cent. Over the same period the number of international arrivals to Australia grew 8.0 per cent to 7.0 million short-term arrivals. More recently, the depreciation of the Australian dollar has resulted in a slow-down in the rate of outbound travel growth by Australians. This shift is expected to yield positive future gains in both the international inbound arrivals sector for Australia, as well as the local domestic travel market.

International overnight expenditure in VictoriaInternational overnight visitor expenditure in Victoria grew by 5.0 per cent year-on-year to $5.0 billion in the year ending December 2014. This equates to a 24.3 per cent share of total international tourism expenditure in Australia. Since 2010, international overnight expenditure in Victoria has grown at an average annual rate of 8.1 per cent, above the national average of 4.6 per cent.

MelbourneMelbourne achieved its highest recorded number of international visitors in the year ending December 2014 to just over 2.0 million visitors, representing year-on-year growth of 9.1 per cent. International expenditure in Melbourne increased by 3.8 per cent to $4.6 billion in the same period.

Regional VictoriaInternational visitors, nights and expenditure in regional Victoria have grown to record levels in the year ending December 2014, with each measure outperforming the national regional average. International overnight visitor expenditure in regional Victoria increased by 22.3 per cent year-on-year to $375 million in the year ending December 2014, rebounding from declines experienced in 2013. Encouragingly, international visitors to regional Victoria increased from both Eastern (+35.8 per cent) and traditional Western (+1.6 per cent) markets, indicating that Victoria is having a positive impact in attracting visitors from high growth Asian markets to stay overnight in regional destinations.

1 Overseas Arrivals and Departures data, Australian Bureau of Statistics, year ending March 2015

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Performance of key international marketsChina continues to underpin Victoria’s strong international visitor and expenditure growth. Growth in Chinese visitors to Victoria was driven by increases in the Holiday (+24.0 per cent) and Visiting Friends and Relatives (+23.8 per cent) segments. Growth in Chinese visitors, nights and expenditure in Victoria were all ahead of the national average.

China has the highest expenditure of all inbound visitors to Victoria at $1.4 billion in the year ending December 2014, up 19.7 per cent year-on-year. Chinese visitor expenditure now accounts for more than a quarter (27.4 per cent) of all international visitor expenditure in Victoria. New Zealand was the next largest spending market in the year ending December 2014 ($360 million), followed by Malaysia ($328 million).

Victoria’s major growth driver in international arrivals continues to be Asia. In addition to China, strong double digit growth was recorded from Hong Kong (+21.5 per cent), Malaysia (+18.5 per cent), Indonesia (+17.5 per cent) and India (+14.6 per cent).

Victoria’s traditional Western markets also showed positive visitor growth on the back of improved economic conditions including, New Zealand (+2.9 per cent to 292,000), the USA (+10.6 per cent to 160,700) and Canada (+15.3 per cent to 45,300).

A number of European markets also showed positive growth in visitation to Victoria during the year ending December 2014, including the Netherlands (+23.2 per cent), Germany (+8.8 per cent) and Italy (+4.4 per cent).

Domestic (Australian) visitor figures state-wide (latest results available – year ending December 2014)Victoria has been the stand out performer in the domestic tourism market in the past year. Growth in domestic overnight visitors, nights and expenditure were all above national averages. Domestic overnight expenditure reached $11.5 billion in 2014, with year-on-year growth at 14.1 per cent – more than double the national growth rate of 5.7 per cent. Domestic overnight visitors to and within Victoria grew by 10.8 per cent to almost 20.3 million in the year ending December 2014. Domestic visitor nights also increased, up 14.2 per cent to 62.8 million.

2 Holiday Tracking Survey, Roy Morgan Research, year ending December 2014.

$5.0b

$5.5b

$4.5b

$4.0b

$3.5b

$3.0b

$2.5b

$2.0b

$1.5b

$1.0b

$0.5b

0

EXPE

ND

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2010

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2013

MAR

MAR

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International overnight expenditure in Victoria

$5.0b +8.1% per annum

2010–2014

*Year ending Dectember 2010- 2014

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MelbourneMelbourne continues to attract more interstate overnight visitors and expenditure than any other Australian city. There was almost 5.0 million interstate overnight visitors to Melbourne in the year ending December 2014, up 13.9 per cent compared to the previous year, compared to 4.1 million in Sydney (up 1.2 per cent in the same period). Interstate overnight expenditure to Melbourne increased year-on-year by 25.0 per cent to $3.9 billion.

Results from the Roy Morgan Research Holiday Tracking Survey (year ending December 2014)2 show that Melbourne will continue to be Australian’s most preferred destination for a domestic holiday in the next two years, supported through the ongoing Jigsaw campaign, including Play Melbourne. The survey results show 22.0 per cent of respondents wanted to holiday in Melbourne.

Domestic overnight visitors to regional VictoriaRegional VictoriaDomestic overnight visitors to regional Victoria increased by 11.4 per cent to 13.1 million visitors for the year ending December 2014. The growth in overnight visitors to regional Victoria was driven by both the interstate (+3.8 per cent)

and intrastate (+12.9 per cent) overnight markets. There were increases in visitation to regional Victoria from both Melbourne residents (+9.0 per cent) and regional Victorians (+18.3 per cent).

Total visitor nights in regional Victoria increased (+14.1 per cent to 40.3 million nights), with the increase driven by strong performances in both the intrastate market (+12.4 per cent to 30.9 million nights) and interstate market (+20.0 per cent to 9.5 million nights).

Domestic overnight visitor expenditure in regional Victoria increased 12.4 per cent year-on-year to $5.0 billion. Overnight expenditure growth in regional Victoria was driven by both the interstate overnight market, up 10.2 per cent year-on-year and the intrastate market, up 15.7 per cent.

Results for growth in domestic overnight visitors, nights and expenditure to regional Victoria were all above the national regional averages.

Daytrips to regional Victoria increased 5.7 per cent year-on-year to 27.9 million for the year ending December 2014. Daytrip expenditure in regional Victoria increased at a greater rate (+17.2 per cent) than key competitors and the national average (+2.7 per cent).

* Growth rate for the year ending December 2014 compared to the previous year.

Unless otherwise stated all data comes from the following sources: International Visitor Survey, year ending December 2014, Tourism Research Australia, Canberra. National Visitor Survey, year ending December 2014, Tourism Research Australia, Canberra. To note: the National Visitor Survey had a change in methodology (the introduction of mobile phone surveying) from January 2014 creating a break in series.

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2 Holiday Tracking Survey, Roy Morgan Research, year ending December 2014.

Domestic overnight visitors in Regional Victoria

13.1m+ 11.4%*

year-on-year


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The Victorian Government is committed to the sustainable growth of the tourism industry sector. Victoria’s 2020 Tourism Strategy is a whole-of-government document providing a clear vision for how the tourism industry can increase its economic and social contributions to the State.

The strategy identifies seven priority areas, each with aligned actions:

1. Digital excellence2. International marketing3. Domestic marketing4. Major and business events5. Air services attraction6. Investment attraction and infrastructure development7. Skills and workforce development

Achievements against each priority during 2014-15 are detailed within this report.

Priority 1 Maximising our digital marketing opportunitiesDuring 2014–15, 8.6 million visitors to Tourism Victoria’s consumer sites representing a 0.2 per cent increase in visitation to the site over the previous year.

Mobile traffic continues to increase, with over half (51 per cent) of visits to the site in 2014–15 via mobile devices, compared to 28 per cent in 2012–13. This growth was supported by an upgrade to Tourism Victoria’s mobile websites which occurred this year.

Content and search optimisation strategies have grown organic search traffic to Tourism Victoria consumer websites, accounting for 72 per cent of all visitation to the consumer sites, compared to 66 per cent in 2013–14.

Meanwhile conversion metrics show an estimated 1.8 million consumer click throughs to tourism industry partners websites or booking links from visitvictoria.com and visitmelbourne.com.

International visitation to consumer websites represented 22 per cent of site visitors during 2014–15. The top eight international markets by visitation were USA, Singapore, UK, Malaysia, New Zealand, Japan, China, India and Germany, with particularly strong growth in visitors from South East Asian markets. In addition to the English language sites, Tourism Victoria operates eight customised foreign language sites in Simplified Chinese, Traditional Chinese, Korean, Japanese, German, French, Italian and Spanish.

Tourism Victoria’s Instagram and Twitter followings were the fastest growing of all the State Tourism Organisations, increasing at approximately 10 per cent each month with over 100,000 followers each as at June 2015. Instagram images had nearly 700,000 likes in the first 3 months of 2015, while in the same period on Twitter, Tourism Victoria posted more than 1,000 tweets, earned 9.5 million impressions and interacted across our channels with global identities including Roger Federer, Shane Warne and Lewis Hamilton.

During Victoria’s peak event period in 2015, Tourism Victoria created over 25 Flickr photo galleries that were updated live from events and shared instantly with global media and agencies.

This resulted in media coverage in The Guardian and Buzzfeed, and was used by official event bodies including the Cricket World Cup, the Australian Open and the Melbourne Food and Wine Festival for promotion. Additionally, videos produced in conjunction with the Asian Football Cup 2015, Rip Curl Pro, Cricket World Cup and White Night Melbourne had over half a million views on YouTube and Facebook.

Framework for Digital Excellence 2015-2017In October 2014, the Tourism Victoria Board approved Tourism Victoria’s Framework for Digital Excellence 2015-2017 (the framework). The Framework for Digital Excellence identifies the core strategic digital priorities and provides a roadmap for the delivery of digital action plans for Tourism Victoria and the Victorian tourism industry to ensure the Victorian tourism industry is positioned at the forefront of digital destination marketing. The Framework’s core priorities are:

• Maximising the impact of our websites.• Developing digital content.• Building industry knowledge through leadership.• Increasing social engagement.• Driving conversion.• Promoting mobile.

Developing the Framework saw Tourism Victoria engage with key stakeholders throughout the process, to ensure a depth of knowledge and insight across the tourism industry. Over 40 key staff across Tourism Victoria, including our International Offices, were consulted, along with the Chief Executive Officers of Victoria’s Regional Tourism Boards and key regional and industry organisations and stakeholders.

The priority activities identified by the Framework for 2014-15 included an upgrade to the design of Tourism Victoria’s consumer websites and the development of a digital conversion framework. Both of these pieces of work have commenced, and are expected to be completed in early 2015-16.

Victoria’s 2020 Tourism Strategy

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Our Priorities

Tourism Victoria works with airlines, key travel partners, Tourism Australia and the Victorian tourism industry to pursue a balanced portfolio of international markets.

For the year ending December 2014, Victoria attracted 2.1 million international visitors, up 8.9 per cent compared to the previous year. Encouragingly, international visitors to regional Victoria increased from both Eastern (+35.8 per cent) and traditional Western (+1.6 per cent) markets, indicating that regional Victoria is having some positive impact in attracting high Asian growth markets to stay overnight in regional destinations.

In 2014-15, Tourism Victoria generated approximately $45.9 million worth of destination exposure in the media through its global public relations activities. Destination and events coverage was seen in high profile media broadcasts across the globe in China, South and South East Asia, Korea and the United Kingdom.

On the digital front, the growing importance of social media can be seen across Tourism Victoria’s international variants of the Visit Melbourne facebook pages, with a combined total of approximately 437,000 followers. In China, Tourism Victoria’s official Weibo and Wechat accounts have grown to 400,000 fans with rising interest in Victoria’s city, self-drive, wildlife, events, and food and wine offerings. All of Tourism Victoria’s marketing campaigns undertaken in-market are supported by the international variants of www.visitmelbourne.com, with approximately 1.2 million views in 2014-15.

Restaurant Australia campaignTourism Victoria worked with Tourism Australia on their Restaurant Australia campaign. The campaign aimed to raise Australia’s profile as an exceptional food destination, and was launched to the industry in May 2014, with a gala event held in Tasmania in November 2014.

Tourism Victoria worked with Tourism Australia on campaigns and activations all around the world, including special media and consumer events in the UK and Europe, China, Hong Kong and the USA.

The Invite the World to Dinner familiarisations was the cornerstone to the Restaurant Australia initiative. Tourism Victoria hosted 40 global media, chefs, and food influencers in Melbourne, Mornington Peninsula, Yarra Valley, Great Ocean Road, High Country and Phillip Island.

Melbourne Food and Wine Festival, Victoria’s Food and Wine Tourism Council and other ambassadors and identities such as Matt Preston, Cameron Smith, Ben Shewry, Scott Pickett, Shannon Bennett, Dan Hunter, Alla Wolf Tasker, James Halliday, Katrina Pizzini, Stefano De Pieri, Adam D’Sylva were all involved in various initiatives.

The media coverage generated for Victoria from this activity is equal to $2.5 million in publicity value for the State.

In addition, Tourism Victoria worked with Tourism Australia on in-market campaigns and activations including the following:

ChinaOn 30 October 2014, Tourism Australia launched the campaign in Shanghai with more than 400 media, influencers and industry guests in attendance. Themed ‘Taste of Australia’, the roadshow showcased food and wines from participating states supported by key distribution partner travel offers. The brand campaign ran across print, digital, outdoor and cinema advertising in nine cities in China, including Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou, Nanjing, Chengdu, Chongqing and Qingdao.

Hong Kong280 guests (media and industry) were invited to experience a ‘long lunch’ on 3 September 2014. In addition, food and wine specific editorial content was featured through a media partnership with OpenRice (Asia’s version of UrbanSpoon).

Singapore, Malaysia and Indonesia In partnership with Singapore Airlines, an integrated Restaurant Australia campaign ran on television, print and digital channels across the three countries. In Singapore, gourmet trails were promoted through self-drive itineraries. In Malaysia, the Restaurant Australia film specific to Victoria was featured in cinemas for the month of June 2014. In addition, a campaign with distribution partners ran across print, digital and out-of-home media channels. In Indonesia, the brand campaign ran across print, digital and out-of-home media.

North America In October 2014, Restaurant Australia was launched in the US and Canada with Bon Appetit magazine hosting a ‘Night Kitchen’ event with Australian chef Jock Zonfrillo for 50 media and influencers in New York. This was followed by a digital marketing campaign across the US and Canada in November 2014, which highlighted experiences to be enjoyed in various regions of Australia. Additionally, Victoria’s episode on Avec Eric was aired on the Cooking Channel in April 2015 across the USA. The episode featured Melbourne’s Queen Victoria Market, eclectic laneway eateries such as Chin Chin, Tonka and Maha, plus David Blackmore’s Wagyu cattle farm.

Priority 2 Attracting high-yield international visitors


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United Kingdom In London, for one week in September, the Exhibition Hall at Australia House was transformed into a pop-up restaurant for 170 paying guests each night. Melbourne’s sell out night saw Londoners dine on the creations of Vue de Monde’s Shannon Bennett, matched with Victorian wines. The pop up restaurant was supported by a partnership with the Daily Mail which included a content hub on their online platform, with eight dedicated Melbourne and Victoria pages, six advertorials in the Mail’s lifestyle magazine and a 100 page glossy eZine telling the Australian food and wine story, sold at WHSmith. Tourism Victoria further leveraged Shannon Bennett’s presence in the region and held two exclusive media lunches with the chef in The Ledbury in London and at The Miele Gallery in Berlin.

GermanyIn October 2014, a 160 page Der Feinschmecke bookazine dedicated to Australia’s people, produce, lifestyle, and food and wine stories was produced and sold through local bookshops and kiosks. The content on Melbourne and Victoria was significant and showcased the food and wine offerings from the State. The book, with a circulation of 100,000, was a partnership between Tourism Australia, six state and territory tourism organisations, Singapore Airlines and two German tour operators – Art of Travel and Meier’s Weltreisen.

FranceBetween 12 September and 4 October 2014, a Restaurant Australia food truck drove through Paris promoting unique Australian culinary tourism experiences. In partnership with Etihad Airways and Tourism Victoria, the food truck was part of an integrated campaign targeting young French travellers. The launch was featured on lefigaro.fr, one of France’s leading online newspapers, and promoted online and on radio.

Australian Tourism Exchange 2015 (ATE15)In 2015, Melbourne was the host state for Australia’s largest annual travel and tourism trade event. Spanning over five days in June, the ATE15 brought together Australia’s tourism industry in a forum to showcase their products directly to tourism wholesalers and retailers from around the world through a combination of scheduled business appointments and networking events. This year’s event attracted 1,800 Australian tourism seller delegates from 500 companies, 700 travel wholesalers and retailers from more than 30 countries and over 93 international and Australian media. A total of 50,000 business appointments were scheduled across the four days of the trade show.

In 2015, Victoria had a record number of 73 tourism companies attend, of which 23 were new sellers. Of the 73 Victorian tourism sellers, 53 had a regional Victoria focus and 20 were Melbourne based.

As host state, Victoria’s credentials as a premier tourism and events destination were effectively showcased. In addition, a comprehensive familiarisation program was delivered to showcase Victoria’s tourism offerings to 385 buyers and 51 media.

The ATE15 media program garnered attendance by 93 trade and consumer media, many from ‘A’ list international publications. The program spanned ten days, including pre and post familiarisations. A special Insights@Melbourne briefing event held at Rose Street Art Market involving speakers representing Melbourne’s arts, culture, food, drink, design and social enterprise movements. Media familiarisations across the city and regional Victoria showcased the diversity of landscapes, food and wine and sophisticated experiences available.

Following ATE15, Tourism Australia ran a post event survey to attendees which rated many factors throughout the event. Overall satisfaction of ATE15 in Melbourne was 98 per cent for buyers and 97 per cent for sellers.

Victoria’s International Exchange In November 2014, 140 industry representatives gathered for Victoria’s International Exchange (VIE), Tourism Victoria’s annual international conference. VIE focused on providing the Victorian industry with the latest international market intelligence and outlined opportunities for businesses to secure a greater share of the export markets.

Based on a survey conducted after the event, over 80 per cent of the attendees were extremely/very satisfied with VIE 2014.

International Trade MissionsTourism Victoria continued to increase the State’s profile and its tourism offerings through partnerships in international trade missions.

In September 2014, the Victorian Government hosted the Victoria Week Trade Mission to China, a multi-sector mission represented by industries of strategic importance to both Victoria and China including automotive, sustainable urban design, tourism and food.

Tourism Victoria hosted the Tourism sector program in the key cities of Xiamen, Chongqing, Chengdu and Shanghai. Media events and travel trade workshops involving 15 Victorian tourism and events operators provided the opportunity for Victoria to showcase its new products, events and festivals, and unique food and wine experiences.

At the Shanghai media event, Tourism Victoria announced the appointment of ten Melbourne Specialist Agencies, who won a nation-wide competition in designing Victoria-centric travel packages and itineraries. These ten Melbourne Specialist Agencies from Beijing, Shanghai, Guangdong and Zhejiang became Tourism Victoria’s key distribution partners in promoting events, food and wine and premium destination experiences to potential Chinese travellers.

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More than 55 media attended the media events and targeted interviews were conducted which generated a total of 70 media articles valued at AUD$691,831.

Tourism Victoria hosted eight representatives of Victorian products and regions on the United Kingdom/Europe Sales Mission in August and September 2014. The group travelled to Strasbourg, Hamburg, Milan, Amsterdam, Stockholm and London and met with over 60 Product Managers from key distribution partners, trained over 100 travel agents and ten trade trainers, and met with media in Hamburg, Milan and London.

In New Zealand, Tourism Victoria hosted a Victorian Travel Trade Mission in October 2014, attended by 18 Victorian tourism products and regions. Workshops were held in Auckland, Dunedin, Christchurch and Wellington. Approximately 95 retail agents were trained and product managers from major wholesale companies also attended the Auckland workshops.

CHINA Open Up to More – Melbourne campaignThe Open Up to More campaign continued in 2014-15, with activities focused on cooperative marketing to maximise campaign impact. The brand campaign was supported by a comprehensive media and PR program highlighting the diversity of Victoria’s product offering in nature, wildlife, culture, events, arts, fashion and lifestyle. The campaign has been influential in increasing destination awareness and inbound visitor numbers from China.

In July 2014, Tourism Victoria’s entry Open Up to More – Melbourne won the Marketing-Secondary Government Destination category at the Pacific Asia Travel Association (PATA) Gold Awards 2014, which attracted 181 entries from 66 organisations and individuals worldwide.

Enhancing Tourism Victoria’s digital presence in ChinaTo engage with its technologically savvy target segment, Tourism Victoria developed a holistic digital presence through its website, search tool, mobile application and social media channels to effectively deliver key brand messages and enhance engagement with its target audience. Partnerships were forged with key online channels such as Qunar, Ctrip, Qyer and Mafengwo to populate and disseminate destination content on Victoria.

Cooperative marketing campaignsIn 2014-2015, cooperative marketing campaigns were implemented with China Southern Airlines, China Eastern Airlines and Sichuan Airlines aimed at increasing awareness of Victoria through outdoor, digital and in-flight advertising. These partnerships significantly raised the visibility and profile of Melbourne and Victoria as a holiday destination.

Cooperative marketing partnerships with Qantas Airways and Singapore Airlines focused on the development of the growing Free and Independent travel segments and in-depth destination experiences.

Besides airlines, partnerships were forged with American Express and ICBC Bank, leveraging their nationwide retail channels to raise consumer awareness of Victoria’s attractions and key products targeted at independent travellers.

Notably, Tourism Victoria worked with more than 20 key travel agents across China on various tactical campaigns and trained 2,600 travel agencies to drive conversion and increase Victoria’s market share of the leisure segment.

Melbourne Food and Wine FestivalIn partnership with Tourism Australia, key airlines and travel agencies, Tourism Victoria promoted the Melbourne Food and Wine Festival in 2014-15 through high profile media activities and cooperative marketing campaigns.

In February 2015, Tourism Victoria hosted 35 food and wine media from China, Hong Kong and Taiwan to experience the festival and dine at The World’s Longest Lunch. From a consumer perspective, The World’s Longest Lunch saw 180 visitors from China attending the lunch who travelled on a dedicated Victoria Food and Wine-themed itinerary to specifically experience Victoria’s food and wine offerings.

INDIACricket World Cup 2015Given India’s obsession with cricket, and the strong link it provides between India and Australia, Tourism Victoria ran a major campaign across India leveraging the ICC 2015 Cricket World Cup. To raise awareness of the Cricket World Cup games being held in Melbourne (particularly the final), Tourism Victoria invited Brett Lee to host media and trade events in Mumbai, Delhi and Bangalore as part of the 2014 India Super Trade Mission. Representatives from the ICC Cricket World Cup were in attendance and the Cricket World Cup trophy was on display during the events, which aimed to strengthen Melbourne’s credentials as a sporting and events destination.

Tourism Victoria hosted a group of senior management (owners and directors) from the top travel agencies in India to a familiarisation of Melbourne and Victoria’s regions, including the final of the Cricket World Cup. This was a relationship-building exercise, and an opportunity to gain valuable market insights through an interactive workshop held during their visit.


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INDONESIA St Ali Coffee promotion in JakartaTo enhance Melbourne’s reputation as the coffee capital of Australia, Tourism Victoria worked in collaboration with Melbourne-based St Ali Coffee and a local café, Common Grounds, in Jakarta in September 2014. The event leveraged the visit of four award-winning baristas from St Ali as well as St Ali’s owner, Salvatore Malatesta, to Indonesia.

Tourism Victoria hosted two events, including an exclusive media luncheon themed ‘Taste of Melbourne’, which highlighted Melbourne as the coffee and gourmet capital of Australia and promoted the 2015 Melbourne Food and Wine Festival.

Fashion collaboration with Marie Claire IndonesiaIn March 2015, Tourism Victoria worked in collaboration with Marie Claire Indonesia to reiterate Melbourne’s design and fashion credentials and profile the Virgin Australia Melbourne Fashion Festival (VAMFF).

Tourism Victoria and Marie Claire hosted Melbourne designer PAGEANT to show at Jakarta Fashion Week, with Marie Claire covering both their runway show and key highlights of the upcoming VAMFF in their April 2015 edition. Tourism Victoria then hosted Marie Claire Indonesia to a photo shoot in Melbourne and the Great Ocean Road, featuring PAGEANT and a range of international designers. The photo shoot featured in the May edition, including the front cover. Marie Claire included a travel story on Melbourne and Victoria in their June 2015 issue to ensure continuity of messaging to this target audience.

SINGAPORE AND MALAYSIAYour Travel Personality online consumer engagement The Singapore and Malaysia markets both have high awareness of Melbourne and Victoria as a destination. However, during the 2014-15 period, Tourism Victoria continued to increase awareness of the unique and diverse range of experiences available across the State.

Tourism Victoria created a Facebook based promotion called ‘Your Travel Personality’. Five travel personalities were identified – Adventure Hunter, Family Trooper, Romance Seeker, Food Lover, and City Dweller – aligning with Tourism Victoria’s target audiences in these markets. Consumers were asked a series of questions and had to choose their favoured responses from a range of options. Once they had submitted all their responses, their ‘travel personality’ profile was rewarded with some potential tourism experiences they could consider.

Consumers were then presented with itineraries in Melbourne and regional Victoria that suited their preferred style of travel and activity. In Malaysia the campaign was linked to travel agent partner, 12fly.

JAPANDirect Jetstar Japan flights to Melbourne In April 2014, Jetstar commenced direct four x weekly services from Narita to Melbourne. To promote the new services, Tourism Victoria undertook a number of cooperative marketing activities including a consumer activation event with a Melbourne Café Night held at a popular beach location (Kamakura) near Tokyo.

From October 2014 to March 2015, two passenger buses, on two of Tokyo’s busiest routes, were ‘wrapped’ for six months to profile the destination. In addition, Tourism Victoria and the airline hosted media and trade familiarisations and collaborated on cooperative tactical campaigns.

HIS promotionHIS Tours, one of the major Japanese tour wholesalers with the support of Tourism Australia and Tourism Victoria jointly conducted a major campaign to promote Melbourne in Japan. This campaign included a dedicated microsite to promote Melbourne’s key tourism experiences and HIS Melbourne package tours; a double page advertorial feature in Asahi Newspaper on Melbourne and HIS package tours and a series of HIS Melbourne and Victoria television commercials which ran in a large outdoor media placement in Ueno, Tokyo (August).

Australian Open Tennis 2015 Partnering with Qantas Airways, Tourism Victoria developed a microsite which provided consumers with information on the Australian Open, tour packages, flights and general destination information in Japanese. The trade partners were HIS Sports Desk and JTB World Vacation, official licenced tour operators for the Australian Open Tennis Championships. In addition, the event was promoted through print media such as Tennis Magazine and Tennis Classic.

Over 400 Japanese travelled to Victoria on the tennis tour packages with sales of over 1,200 tickets sold to various matches.

Asia Football Cup 2015Tourism Victoria worked closely with Tourism Australia Japan to promote the Asia Football Cup in January 2015. A cooperative advertising campaign was undertaken with Asahi Newspaper, Japan’s leading daily newspaper with a circulation of 7.6 million people throughout November and December 2014.

KOREAChannel M’s Tasty Road One of Korea’s most popular food and wine programs, Tasty Road, was in Melbourne in May 2015 to film an episode on the city’s culinary delights. This food program, which made Australia its launch overseas destination, features two Korean celebrities. This program is broadcast through satellite TV stations, Channel M across South East Asia and Mnet (part of Sky Perfect TV) in Japan. The estimated media value of this broadcast is approximately AUD$2 million.

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NEW ZEALANDPlay Melbourne and Beyond The Play Melbourne and Beyond campaign was New Zealand’s major consumer campaign for 2014-15. The focus of this campaign was to drive overnight visitation in regional Victoria and increase length of stay with compelling itinerary suggestions and ‘new’ news.

Tourism Victoria worked in partnership with Qantas Airways via a tactical airfare sale, and House of Travel who packaged Victorian holidays. The campaign utilised independent and professional writers who took the New Zealand consumer on a journey through the eyes of a Kiwi tourist in Victoria.

Melbourne Retail CampaignShopping has always been a key motivator for New Zealanders to travel to Melbourne. Conducted in October 2014, the Melbourne Retail campaign aimed to promote the new shopping assets of Melbourne and motivate New Zealanders to travel to Melbourne for a shopping holiday. The main element of this campaign was the development of a Melbourne Shopping Guide which was inserted into the November editions of Next and Mindfood Magazine.

Tourism Victoria also developed four digital shopping itineraries corresponding to four different themes: Vintage, Bargain Buys, CBD Centric and Made in Melbourne. These itineraries were available to be downloaded and viewed on portable mobile devices.

Victorian Golf CampaignIn September 2014, Tourism Victoria partnered with New Zealand-based company ‘Sports Inc’ to produce a Victorian golf road trip broadcast segment. Golf is the largest participant sport in New Zealand and the aim of the campaign was to leverage this interest by encouraging New Zealanders to undertake a golf holiday in Victoria.

UNITED STATES OF AMERICAAustralian Market PlaceIn conjunction with Tourism Australia, Tourism Victoria and twelve Victorian tourism operators attended the Australian Market Place (18-20 March 2015) and met with North American buyers and key distribution partners. The Victorian tourism attendees represented were Oceania Tours, Australian Wine Tour Company, Sovereign Hill, Healesville Sanctuary, Eureka Skydeck, Tramcar Restaurant, Bunyip Tours, Hidden Secrets Walking Tours, Phillip Island Nature Park, Moonlit Sanctuary, Great Southern Touring Route and Searoad Ferries. In addition, Tourism Victoria attended the Stella Symposium and met with 45 Stella Travel Services staff from sales, reservations and marketing.

New United Airlines direct non-stop flights from Los Angeles to Melbourne In October 2014, United Airlines launched its direct six x weekly services from Los Angeles to Melbourne. To mark the launch of this new service, a marketing campaign was implemented in two phases between the periods of October to December 2014 and April to June 2015. The campaign incorporated airport, print, outdoor, digital channels and United Airlines-owned assets. The campaign ran in the following primary markets: Los Angeles, New York, Chicago, Washington DC, and Houston. As of March 2015, these services are now daily.

UNITED KINGDOM Major broadcast features In January 2015, Tourism Victoria hosted two programs from the UK’s largest commercial broadcaster ITV. Good Morning Britain, hosted by Sam Fletcher, featured a live cross from Melbourne and pre-recorded segments from around Melbourne and the Yarra Valley. The coverage coincided with the Australian Open 2015 and highlighted a specific match with UK tennis player Andy Murray. The media coverage was valued at AUD$406,453.

In the same month, Tourism Victoria hosted Olly Smith of ITV’s This Morning, to experience the culinary offerings of Melbourne and Victoria. Pre-recorded segments included visits to Melbourne’s laneway restaurant scene, St Kilda and the Yarra Valley.

In conjunction with Qantas, Tourism Victoria coordinated an integrated campaign with Magic FM, one of London’s leading radio stations with a listenership of 1.943 million. For a week in January 2015, the Magic FM Morning Show broadcasted live from Melbourne and Warrnambool. The broadcast featured self-drive touring options, Victoria’s food and wine scene as well as the ever popular Australian native wildlife. Pre-recorded soundbites promoting Mornington Peninsula, Phillip Island and the Great Ocean Road, as well as Melbourne’s events calendar, were integrated into the live broadcasts. The on-air campaign was supported by website features, social media posts and e-newsletter updates.


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Play Melbourne & Beyond campaignIn 2014-15, Tourism Victoria implemented stage three of the successful Play Melbourne campaign. Play Melbourne and Beyond forms the final iteration of the four year Play Melbourne campaign and integrates Melbourne, regional Victoria and events messages –Play Melbourne, Play on after the event and Play beyond Melbourne.

The campaign profiled a range of products and experiences and encouraged consumers to ‘Play Melbourne and Beyond’ their own way by creating their own playlists. Products and experiences were featured on a central online portal – playmelbourne.com.au – with media driving consumers to visit this website and engage with the content.

Media activity to support the campaign included a strong presence across a range of national digital display and video portals, newspaper advertising, print advertising in event programs, cinema advertising in Sydney, Brisbane, Adelaide and Perth and outdoor event advertising in Sydney and Adelaide. Supporting this media activity was an ‘always on’ digital media strategy, including social media, implemented through both paid and owned media channels to assist in driving traffic to the website.

The Play Melbourne and Beyond campaign is scheduled to run until 30 September 2015. Initial results indicate that as at 30 June, the campaign had generated over 148,000 visitor sessions (over 125,000 of them unique) to the campaign website and over 329,000 page views. Since launching in November 2014, more than 2.9 million views of the campaign’s videos have been completed on YouTube and through digital advertising on online video websites. There have also been over 4,800 playlists created to date, with almost 25 per cent of these being shared through social media.

Regional Victoria Intrastate campaignA dedicated intrastate campaign strategy for regional Victoria is being developed by Tourism Victoria following comprehensive research being undertaken during 2013-14. The campaign strategy has been developed in consultation with Regional Tourism Boards and production of the campaign is currently underway.

It is anticipated that the campaign will be launched during 15-16. It will be supported by partnerships and cooperative activity with travel and non-travel brands. A cooperative program is also being developed that will provide opportunities for Regional Tourism Boards and industry to participate and leverage the campaign activity.

Partnership Marketing Qantas AustraliaTourism Victoria partnered with Qantas Airways throughout 2014-15 to promote the Play Melbourne campaign to key interstate markets. Two key Qantas Play Melbourne campaigns were undertaken focussing on Melbourne’s key attributes of food and wine, shopping, design and art and culture. The Fashion World of Jean Paul Gaultier at the National Gallery of Victoria was another highlight of Qantas Tourism Victoria activities in a dedicated campaign to coincide with the exhibition.

Virgin AustraliaVirgin Australia and Tourism Victoria undertook two cooperative marketing campaigns in 2014-15. The first campaign promoted travel to Melbourne for AFL football whilst the second campaign focussed on encouraging interstate travel to Melbourne profiling food and wine, shopping and art and culture.

Online Travel PartnershipsIn 2014-15, Tourism Victoria joined with online travel companies Wotif.com and Lastminute.com to promote travel to Melbourne. The Wotif.com campaign focussed on travel over the spring/summer period and featured Melbourne’s events and sporting precinct. The lastminute.com campaign promoted travel to Melbourne over the summer/autumn period focusing on wine and wellness.

Tourism Victoria also collaborated with Australia’s number one holiday rental website, Stayz, to encourage Melbournians to book regional Victoria holidays over the autumn 2015 period.

Partnership with Caravan Trades Industries Association of Victoria, Caravanning Industries Association Australia and Vic ParksTourism Victoria partnered with the Caravan Trades Industries Association of Victoria, Caravanning Industries Association Australia and Vic Parks to increase visitation to regional Victoria from Melbourne through promoting Victoria as a destination to go on a caravanning/driving holiday under their Go Make Some Memories campaign. As part of this partnership, 300,000 copies of a 32 page publication promoting Victorian caravanning holidays was inserted into the Herald Sun with a prize promotion that generated nearly 30,000 subscribers to our visitvictoria database.

Priority 3 Increasing the domestic market

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Partnership with the Cruise IndustryThe cruise industry continues to be one of the fastest growing sectors of the tourism industry and Victoria experienced strong growth in 2014-15 with a total of 85 cruise ships visiting the state.

Of this total, Melbourne experienced the strongest growth with 76 visits including three associated with the Melbourne Cup Carnival.

Tourism Victoria partnered with P&O Australia to undertake a cooperative marketing campaign to promote the inaugural cruises to Mornington and Portland. There were four calls by P&O ships to Portland and two to Mornington.

Destination CommunicationsTelevision PartnershipsIn 2014-15, Tourism Victoria partnered with Channel 7’s Amazing Race, resulting in one episode of the popular reality show being filmed in Victoria’s Great Ocean Road region. The episode was broadcast on 25 September 2015 to more than one million Australian viewers and 300,000 New Zealanders. Highlights of the episode included spectacular footage of the 12 Apostles and the Great Ocean Road, the Otway Fly Treetop Adventures, Loch Ard Gorge and the Port Campbell foreshore.

Tourism Victoria also undertook a partnership with MasterChef Australia Series six which aired from May 2014 to July 2014. An affiliation with Australia’s number one cooking show, since the show moved to Melbourne in 2012, has reinforced Melbourne and regional Victoria’s positioning as Australia’s leading destination for culinary experiences.

Series six saw Melbourne and Victorian destinations, produce and chefs profiled throughout the series with eleven dedicated Victorian episodes and significant ‘added-value’ content including back-stories on numerous Melbourne chefs.

Five episodes were filmed in regional Victoria with Melbourne showcased throughout the series including six dedicated episodes filmed at iconic Melbourne locations. Ratings for the series ranged from 874,000 capital city views to 1.7 million for the finale and the total destination publicity value for the series was almost $12 million.

Other broadcast projects during the year included national television programs, Channel 7’s Sunrise and Better Homes and Gardens, and Chanel 9’s Today Show. Weather crosses and live broadcasts from the Great Ocean Road, Grampians, Bendigo, Phillip Island, High Country and Daylesford have provided invaluable national profile and support to these important regional areas.

Public and Media RelationsIn supporting domestic campaign work, the calendar of events, and Victoria’s regions, Tourism Victoria facilitated 85 media familiarisations comprising 174 individuals from print, online and broadcast media. This, alongside a thorough media relations and destination content program, resulted in a total annual advertising value equivalent (publicity value) to $25.7 million for the financial year.

Alpine MarketingTourism Victoria continued to work with the Alpine Resorts Coordinating Council (ARCC) on the implementation of the Alpine Resorts Strategic Marketing Plan 2014–2018, including support of international marketing, green season marketing, industry development and market research.

A major Victorian Snow Resort Segmentation Study was undertaken by EY Sweeney Research, and included 2,000 online interviews of 18-69 year olds located in Victoria, New South Wales, Queensland and South Australia, and six focus groups conducted in Melbourne and Sydney. This study aims to develop a new segmentation model and understand the barriers and perception of Victoria as a snow destination.

Tourism Victoria, ARCC and Tourism North East have shared research results with the Alpine Resort Management Boards, the Alpine Resorts Industry Advisory Group, Lift Companies, Destination Gippsland and Yarra Ranges Tourism to help inform specific marketing programs highlighted in the Alpine Resorts Strategic Marketing Plan 2014–2018.

2013-16 Regional Tourism Partnership ProgramTourism Victoria continued the implementation of the $9 million, 2013-16 Regional Tourism Partnership Program (RTPP). 2014-15 marked the second year of the three year program which aims to bring together all available resources, knowledge and expertise to coordinate and maximise outcomes for regional Victoria.

As part of the RTPP engagement framework, Tourism Victoria held a number of forums and workshops with RTBs during the year covering a range of topics including Tourism Excellence, Digital Marketing and the intrastate campaign strategy development.

Marysville Bushfire Recovery ProgramThe $1.7 million Marysville Bushfire Recovery Program 2011–2014 concluded this year with a marketing campaign, targeting Melbourne, that aimed to raise awareness of Marysville as a short break destination. Campaign timing was aligned to support and leverage the February 2015 opening of the Vibe Hotel and Conference Centre.

The campaign was delivered over two phases: Phase 1 (Oct – Nov 2014) centred on sponsorships with Australian Radio Network (advertising and promotions with Mix 101.1 and Gold FM), and News Australia (Herald Sun online advertising), along with community radio announcements on Triple R. Phase 2 (March – May 2015) focused on print advertising in the Good Weekend and cooperative advertising with Vibe and was supported by online advertising including search and social media.

Online activity reached all key targets, including a significant increase in unique visits and traffic to the Marysville website. The campaign generated positive feedback from industry and provided assets that can be used in future marketing activity.


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Major EventsEvents continue to be a significant contributor to the State, driving Melbourne’s national and international positioning and profile, tourism, branding and business linkages. Major events are worth approximately $1.8 billion to Victoria’s economy3 and the major events industry provides 2,617 full time equivalent jobs4, with event tourism representing 20 per cent of all international overnight visitors to the State5. In the year ending December 2014, 965,100 international events visitors travelled to Australia; with 45 per cent or 432,800 visiting Victoria6.

Victoria’s major events calendar is one of the most prestigious and successful in the world. Established events such as the Australian Open, Australian Motorcycle Grand Prix, and the Australian Formula 1 Grand Prix continue to draw significant numbers from interstate and international markets.

The importance of major events was further enhanced with the Victorian Government committing an additional $80 million over four years to attract and stage new draw card events to Victoria and to increase the value of major events to regional Victoria.

During the past 12 months, Tourism Victoria has continued to work with the Victorian Major Events Company (VMEC), government departments, event promoters and organisers to attract, promote and leverage the tourism benefits for major events.

In partnership with Ticketek, Tourism Victoria ran an interstate marketing campaign across digital, television and social media to promote Melbourne’s Summer event calendar, featuring the Australian Open, the ICC Cricket World Cup, Strictly Ballroom: the Musical, the AFC Asian Cup, the WWI Centenary Exhibition, and the Virgin Australia Melbourne Fashion Festival.

Victoria co-hosted two world-renowned major events staged in Australia during 2015; the AFC Asian Football Cup and the ICC Cricket World Cup 2015. To support the promotion of these events, Tourism Victoria hosted ten International Sports Media representatives in conjunction with the Commonwealth Department of Foreign Affairs and Trade. To support the promotion of these events. Tourism Victoria also showcased Melbourne’s attractions and facilitated opportunities for the Australian Open, the Melbourne International Comedy Festival, the Victorian Racing Club, and the Australian Formula 1 Grand Prix.

Melbourne hosted seven games of the AFC Asian Football Cup, including the opening match. Tourism Victoria undertook cooperative marketing campaigns with Tourism Australia in Japan and China to encourage visitation to the event. Campaigns were also undertaken in ethnic press across Australia to showcase the large number of experiences available to consumers attending the event in Melbourne. Tourism Victoria created tailored content to leverage the event. A video showcasing Melbourne as the opening city targeted consumers in Australia, New Zealand, Korea, China and Japan. The Visit Melbourne YouTube channel had received over 115,000 views.

345,000 people attended five ICC Cricket World Cup matches held in Melbourne. Three matches sold out, including the final. 1.56 billion viewers tuned into the tournament worldwide, showcasing Melbourne to the world. The Melbourne final peaked nationally at 4.2 million viewers. Victoria welcomed 154,000 visitors during the tournament, including 79,000 from interstate and 75,000 from abroad; spending $305 million in our state and accounting for 720,000 hotel bed nights. Tourism Victoria promoted the matches across key markets including the United Kingdom, India, New Zealand, and interstate through a number of cooperative marketing campaigns with travel trade partners. Additionally, Tourism Victoria ran a number of leveraging activities to engage with the estimated 350 media across the event. Activities included an international media event with Shane Warne to welcome the media to Melbourne, an ESPN digital campaign to promote Victoria over the key matches, programme advertising across print and iPad showcasing Melbourne and Regional product, signage at the tournament, and vignettes within the televised broadcast.

Priority 4 Attracting and leveraging events

3 An Eventful Year: Economic Impact of the Victorian Major Events Calendar, Ernst & Young/Victorian Major Events Company joint research project, September 2014

4 Victorian Events Industry Council 2014 primary data

5 International Visitor Survey, December 2014, Tourism Research Australia

6 International Visitor Survey, December 2014, Tourism Research Australia

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In cooperation with the Victoria Racing Club, Tourism Victoria ran a Melbourne Cup Carnival brand and cooperative advertising campaign in Australia, Japan, China, Singapore and New Zealand to drive visitation to the Melbourne Cup Carnival. The 2014 Melbourne Cup Carnival contributed almost $195 million to the state’s economy, up almost 10 per cent compared to 2013. Almost $105 million of total expenditure came from outside Victoria, with interstate and overseas visitors accounting for over 35 per cent of 2014 carnival attendances. A concerted marketing and promotional campaign in key Asian markets contributed to the number of visitors from Asia more than doubling, from 1,406 to 3,276, compared to the previous year. The number of New Zealand visitors increased by 28 per cent, reversing the decline of the previous year. Reflecting these results, tourism operator revenue related to the carnival was up 22 per cent to $2.37 million and the local hotel and accommodation sector experienced a 5.8 per cent increase in bed nights, which were up to more than 186,000.

Tourism Victoria undertook cooperative campaigns with partners to promote the 2015 Australian Open. Working with the Australian Open, Tourism Victoria targeted the key markets of New Zealand, Japan and China. A record 703,899 patrons attended the 2015 Australian Open, including an estimated 160,000 interstate visitors and more than 600 journalists from around the world. The event was leveraged through media and trade familiarisations, content creation, programme advertising and a digital campaign.

An interstate campaign to encourage visitation and awareness of White Night Melbourne 2015 was undertaken in Sydney and Adelaide across digital platforms. At the event, Tourism Victoria hosted an event for over 50 global media representatives from Melbourne, China, South Africa, India and New Zealand to showcase Melbourne’s broader cultural offering. Tourism Victoria filmed dedicated content to create a snapshot of the event which gained coverage on the Sydney Morning Herald, Brisbane Times and The Guardian, and was viewed more than 26,000 times on the Tourism Victoria YouTube channel. With approximately 500,000 people in attendance at the event, the top trending tag on Twitter in Australia on the night was #whitenightmelbourne.

Tourism Victoria partnered with the National Gallery of Victoria to promote the Melbourne Winter Masterpieces series Italian Masterpieces from the Spain Royal Court and The Fashion World of Jean Paul Gaultier. In partnership with Qantas in Australia and New Zealand, Tourism Victoria undertook a campaign to promote visitation to The Fashion World of Jean Paul Gaultier – the exhibition attracted over 220,000 people with over 20 per cent from outside Victoria.

Tourism Victoria also worked to promote and leverage a number of major events within regional Victoria including the Cadel Evans Great Ocean Road Race; SBK Superbike World Championships; the Rip Curl Pro; Bendigo International Collections; and the Australian Snooker Goldfields Open.

Tourism Victoria ran an interstate campaign across online, print and outdoor to promote the inaugural Cadel Evans Great Ocean Road Race in Geelong. Destination video footage of the Great Ocean Road and surrounds were incorporated into the live broadcast of the event. Tourism Victoria hosted the Times in London at the event which included a journalist participating in the sold out people’s ride.

In order to leverage the 2015 Rip Curl Pro, Tourism Victoria created a content piece Beyond Bells that promoted the Great Ocean Road and the Rip Curl Pro. The mini documentary of a short Great Ocean Road trip was shot with a local surfer using the latest in drone and underwater cameras for use in both broadcast and social media. The content has been viewed over 113,000 times on the Tourism Victoria Youtube channel.

7 The National Business Events Study (2005) in Sustainable Tourism, CRC

8 International Visitor Survey, year ending December 2014, Tourism Research Australia, Canberra


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Business eventsBusiness events deliver an economic impact to Victoria of approximately $1.2 billion each year and provide 22,600 jobs7.

International overnight business events visitors to Victoria have grown at an average annual rate of 18.2 per cent from the year ending December 2010 to December 2014, above the national average of 6.2 per cent per annum over the same period. In the year ending December 2014, 181,100 international overnight business event visitors visited Australia. Of these, 40.6 per cent, or 73,000 visited Victoria8.

During the 2014-2015 financial year, the Melbourne Convention Bureau on behalf of Tourism Victoria secured 179 business events for the state of Victoria, including 31 international association conferences and 100 corporate meeting and incentive events. These business events, held between 2014 and 2021, will attract almost 45,000 delegates, deliver over 99,000 room nights for city and regional Victoria hotels and generate an estimated $183 million in economic impact for the state. Of these events, nine were supported by the Business Events Fund.

In 2014-15, the Melbourne Convention and Exhibition Centre hosted a number of prestigious medical conferences secured by the Melbourne Convention Bureau including:

• the International AIDS Conference 2014 hosted in July 2014, which attracted nearly 12,000 delegates from 173 countries.

• the 23rd World Cancer Congress (UICC) which Melbourne hosted in December 2014, which attracted 2,700 delegates.

On behalf of Tourism Victoria, Business Events Victoria (BEV) continued to deliver the 2010-2014 Regional Victoria Business Events Program to deliver more business events to regional Victoria. The program aims to raise the profile of regional Victoria amongst business event organisers and generate business event leads.

A new Grant Agreement was signed between Tourism Victoria and BEV in October 2014 for the continued delivery of the Regional Victoria Business Events Program for the next four years.

During the year BEV delivered 86 leads for regional Victoria operators, resulting in 6,531 delegate days and 4,747 room nights from these events.

Regional events secured this year include 7th Australian Rural and Remote Mental Health Symposium, 600 delegate days; Ambulance Victoria Auxiliary Conference (Eastern VIC), 120 delegate days; and Commonwealth Bank Analyst Forum, 100 delegate days.

Tourism Victoria’s Events ProgramTourism Victoria’s Events Program is a state-wide program providing funding to Melbourne and regional Victorian events that currently generate or have potential to generate tourism related benefits to the State. In 2014-15, the program funded over 35 events. Of this, approximately 42 per cent of funding was to Melbourne based events and the remainder to regional events.

Country Victoria Events Program (CVEP)The Country Victoria Events Program provides up to $10,000 per event to assist with tourism marketing and event delivery and development. During the year, 46 regional events benefited from this program.

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Victoria’s air services play a key role in growing the State’s economic development, particularly for the tourism industry. The Victorian Government works closely with major airlines, Melbourne Airport and Avalon Airport, to improve air connections with Victoria’s tourism, education, business and trade markets.

During the last 12 months, international airlines have continued to show confidence in Victoria by adding capacity and connecting the state with key source markets globally. Growth in international tourists into the State is intrinsically linked to aviation capacity.

The Victorian Government’s signing of a 10-year partnership with Jetstar at Avalon Airport will ensure Melbourne’s second airport will cater for tourists well into the future. The deal provides momentum in Avalon’s search for an international carrier to service the airport.

As of 30 June 2015, Victoria has 25 international airlines flying to and from Melbourne Airport (Tullamarine). Tullamarine is Australia’s second largest airport, with more than 32 million passengers passing through its terminals in the 2014-15 financial year. Of these, 8.37 million were international passengers, an increase of eight per cent on the previous year.

Over the past year, meetings between senior representatives of key airline partners and Victorian Government Ministers or senior representatives were undertaken to continue to foster critical relationships that can influence international airline services, including at the Asian Routes Development Forum in Kunming, China.

Achievements for new and increased international airline services during the last 12 months include:

• Air China announced on 27 January 2015 a four x weekly non-stop direct service from Beijing to Melbourne commencing 1 June 2015. This will increase to a daily service from 25 October 2015. This is the first time any airline operates a direct, non-stop service between Beijing and Melbourne.

• China Eastern increased its daily service to 12 services per week on its Melbourne – Shanghai services over the peak Chinese market travel period of December 2014 to March 2015.

• United Airlines commenced six x weekly non-stop flights between Melbourne and Los Angeles in October 2014, moving to a daily service in March 2015. Operating a Boeing 787-9 Dreamliner aircraft, the service replaced the ‘tag’ carrier operated on its Sydney – Los Angeles service.

• Indonesia AirAsia X commenced direct services between Melbourne and Bali from 18 March 2015. The airline offers five services per week to Bali adding, 1,885 seats per week on the route.

• On 30 March 2015, Jetstar commenced four x weekly services to Melbourne from Wellington, New Zealand. The service adds 716 seats per week on the route.

Additionally, a number of international airlines announced new services commencing in late-2015, including:

• China Southern Airlines will introduce a double daily service in September 2015.

• Scoot will introduce five services per week, adding more than 1,600 seats per week, from Singapore to Melbourne on the new Boeing 787 Dreamliner from 1 November 2015. Travellers can also connect to Melbourne via Singapore from more than 89 destinations served by Scoot or its partner airlines, including Phuket, Hong Kong, Tokyo and Bangkok. Scoot will be Victoria’s 26th international airline when it commences services.

• Etihad Airways will introduce a second daily flight between Melbourne and Abu Dhabi from 1 August 2015. The service will connect with 51 of the airline’s international destinations providing access to key overseas markets including the United Kingdom and continental Europe. The new service will add a further 2,296 seats per week resulting in more than 4,500 seats per week on the route.

Tourism Victoria also won a ‘highly commended’ award for Excellence in the Destination Marketing category, at the Routes Asia Development Forum in China. This is a prestigious award thatis nominated by airlines from around the world for partnership marketing activities with airlines. Tourism Victoria is the first State Tourism Organisation to win such an award.

Working with the Federal GovernmentThe Victorian Government has continued to lobby the Federal Government on issues that may impact tourism to the State such as visas and air access.

In January 2015, China and Australia negotiated an immediate increase in bilateral air capacity through its Air Services Agreement. The Agreement also allows for a gradual increase in capacity over the next two years from October 2015. For the first time there is a separate allocation of capacity for secondary cities outside of the major cities of Beijing, Shanghai and Guangzhou.

As China is Victoria’s largest international source market, the increase in bilateral capacity under the Agreement provides the opportunity for double digit growth to continue as Chinese airlines add capacity to Victoria.

Priority 5 Air services attraction


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Tourism Victoria is committed to identifying and accelerating tourism investment so that Victoria remains a strong, vibrant and relevant tourism destination. Over the past 12 months, Tourism Victoria has focused on a number of public and private tourism investment opportunities throughout the State.

Tourism Victoria has continued its partnership with Austrade and Tourism Australia to raise the profile of key tourism investment opportunities seeking investment funding partners. A Tourism Investment Framework has been developed which will provide advice and assistance to project proponents on preparing supporting business case information for their investment projects.

Tourism Victoria, in conjunction with Austrade, hosted a number of international groups over the last 12 months to discuss tourism investment and partnership opportunities in Victoria.

Tourism Victoria has also provided support to a number of hotel developments in Melbourne and regional Victoria through the provision of Tourism Value Assessments to highlight the value of accommodation proposals to the region and Victoria. These include Freshwater Place in Southbank, Park Street in South Melbourne and Burnham Beeches in the Yarra Valley.

With Melbourne CDB hotel occupancy rates averaging close to 80 per cent, new hotels are needed to meet the ambitious target set by Tourism Australia of $140 billion in tourism expenditure by 2020. To reach this expenditure target, up to 20,000 new rooms are required in Australia, with up to an additional 3,900 rooms in Melbourne by 2020.

During 2014-15, a number of hotels have opened such as the 100 room Larwill Studio’s in Parkville and the 146 room Brady Hotel in Melbourne in September 2014. During October 2014, the 96 room Quest Melbourne Airport and Wyndham on Williams (77 rooms) opened. The Jasper hotel revealed an additional 30 rooms in November 2014.

In February 2015, the Vibe Hotel and Conference Centre in Marysville opened. This 4-star property has 101 rooms set in a prime location in the centre of Marysville. The hotel was part of the Victorian Bushfire Recovery program to assist with redevelopment of the region after the 2009 bushfires. The Victorian Government committed $19 million towards the hotel, which was identified by the community as one of eight catalyst projects to assist with the economic recovery of the town.

There are also a number of hotel developments under construction in the Docklands area, two of these, Park Royal and Peppers, will open during 2015-16. Additionally, Tyrian Serviced Apartments in Melbourne and the 280-room Savoy Melbourne have both received development approval to progress their projects.

Tourism Victoria is involved in the progression of 60 tourism projects throughout the state. These potential projects cover all product sectors ranging from food and wine to nature based/track and trail, spa and well-being and major attractions.

Throughout 2014-15, Tourism Victoria has worked with a number of attractions to enhance the tourism experience. Preliminary work has been undertaken to identify tourism opportunities at the entrance to Puffing Billy Railway, and assistance has been provided to the proponent of the Arthurs Seat Gondola to progress a new attraction at Dromana.

Regionally, Tourism Victoria has been in discussions with a proponent to review potential building options for a new hotel adjacent to Sovereign Hill. Tourism Victoria also worked with Swan Hill Rural City Council to enhance the Swan Hill Pioneer Settlement, which is part of the broader redevelopment of the riverfront precinct. The first stage will include a night attraction laser show. The Victorian Government provided $2.8 million towards this $3.85 million project.

In 2014-15, Tourism Victoria assisted the proponent of the Yarra Valley Chocolaterie and Ice Creamery to obtain development approval for a similar product along the Great Ocean Road. Additionally, Tourism Victoria assisted two proponents to develop a spa and wellness experience along the Great Ocean Road, and continued to work with the Geelong City Council on the development of a business case for a Mineral Springs Bath House on the Geelong foreshore.

Tourism Victoria also worked with the proponent of the recently announced Sebel Hotel, Yarrawonga to identify potential investment partners, and helped a proponent secure development approval for accommodation associated with a food and wine experience in Brae. In the Mornington Peninsula region, Tourism Victoria worked with the RACV Cape Schanck Resort to expand the development.

During the year, a number of master plans were progressed in partnership with other agencies, including the Grampians Peaks Trail, Shipwreck Coast and the Falls Creek to Mount Hotham Alpine Crossing master plans. All will identify appropriate tourism investment opportunities along the trails including accommodation options to enhance the walking experience. The Queenscliff Fort Precinct Plan is being completed to develop tourism attraction opportunities in the precinct.

Tourism Victoria, in partnership with Regional Tourism Boards, has assisted with the development of Destination Management Plans (DMPs) for the Daylesford and Macedon Ranges, Mornington Peninsula and Grampians regions. The DMPs identify tourism infrastructure opportunities and priorities for each region.

Priority 6 Investment attraction

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Our Priorities

RACV Victorian Tourism AwardsIn 2014, the RACV Victorian Tourism Awards celebrated their 30th year. This also coincided with the RACVs 100th year anniversary.

Tourism Victoria worked closely with the Victorian Tourism Industry Council and industry representatives to recognise and reward Victoria’s leading tourism operators, businesses and individuals. Partnerships with the Herald Sun and 3AW ensured that the winners were promoted to consumers in Victoria.

The Victorian winners went on to participate in the Qantas Australian Tourism Awards in Adelaide, with Victoria achieving four gold winners and 14 placegetters from 28 categories.

Tourism Excellence ProgramThe Tourism Excellence Program continued to rollout throughout the State with Victoria’s Regional Tourism Boards implementing a range of learning and development programs for the industry. Tourism Victoria developed a range of online learning tools known as e-Tutorials to enable tourism businesses to access learning materials via the internet.

As part of Tourism Victoria’s International Mentoring Program, 12 tourism business successfully completed the program in 2014-15. This brings to 85 the number of tourism products who have participated in the program aimed at ‘fast tracking’ businesses to become export ready.

Victorian Visitor Economy Review On 10 March 2015, the Premier announced a review of the Victorian Visitor Economy to identify the best way to develop and grow this vital sector for the State.

A key outcome of the Review will be a comprehensive Victorian Visitor Economy Strategy that is in line with the Government’s broader economic development strategy for Victoria.

A Project Working Group was established to engage with key industry and government agencies for tourism, major events, the arts and education. The project team received more than 55 submissions to the Review and met individually with more than 50 stakeholders.

A report was provided for Ministerial consideration in June 2015.

Review of Regional Tourism Boards and Destination Management PlansA Review of Regional Tourism Boards and Destination Management Plans in Regional Victoria was conducted over the course of 2014, with a final report delivered to Tourism Victoria in December 2014. The Review focused on analysing the impact of the introduction of Regional Tourism Boards (RTBs) and Destination Management Plans (DMPs) across regional Victoria, including making recommendations around the functioning of RTBs and DMPs to improve performance.

The Review makes 14 recommendation, most of which relate to changes that can be made to improve planning, efficiency, and collaboration. The recommendations will be considered in the context of the Government’s Regional Services Review and the Victorian Visitor Economy Review.

Industry crisis managementTourism Victoria continued to work with Victoria’s emergency services to build the tourism industry’s capacity to respond effectively to crises and recover quickly.

In preparation for the summer season, Tourism Victoria, in partnership with the Emergency Management Commissioner Mr Craig Lapsley, presented to all the Regional Tourism Boards on the importance of crisis preparedness, utilising the content of the newly produced Management Planning: A guide for destination managers publication. In addition, Tourism Victoria distributed the Tourism Business Fire Ready Kit to businesses.

Tourism Victoria also produced a video case study on Riviera Nautic, a tourism award-winning business, which faced a crisis from an outbreak of blue–green algae in the Gippsland Lakes.

Tourism Victoria continues to support accredited Visitor Information Centres in their capacity to engage with visitors about fire warnings and planned burning information by providing visitor resources and training to staff and volunteers.

Accessible Tourism Tourism Victoria supported a number of accessible tourism workshops aimed at tourism operators across the State in 2014-15, utilising the Accessible Tourism: It’s Your Business kit, launched in 2013. Workshops were held in the Yarra Valley, Gippsland, Melbourne and in the Macedon Ranges at the State Visitor Centre Summit.

Priority 7 Investing in our Workforce


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Workforce DevelopmentIn July 2014, the State and Commonwealth Governments jointly launched the Mornington Peninsula and Phillip Island Tourism Employment Plan, one of eight such plans developed around Australia, and the first for Victoria. The plan was jointly developed by Tourism Victoria, Austrade and KPMG in collaboration with the local industry, Regional Tourism Boards and local councils.

A regional steering committee has been established to oversee the implementation of the eleven strategies, with the first four already completed including the provision of skills advisors to more than 60 operators, a Tourism and Hospitality Employment Program Guide, and development of local case studies.

Visitor Information Centres Tourism Victoria, in conjunction with the Victoria Tourism Industry Council continued to provide advice to Regional Tourism Boards and local government on Visitor Information Centres (VICs) following the release of the VICs Futures Study in January 2014.

The report enables local government to benchmark and make informed decisions about visitor services within their area. The report also highlights the importance of the collection of visitor statistics to enable this benchmarking to occur and to determine long-term trends and impact of crisis on a local tourism industry.

Tourism Victoria continued to support accredited VICs through a general service agreement with VTIC to ensure ongoing professional development of visitor centre staff and grow visitor centre standards.

26

As a Victorian State Government statutory authority established by the Tourism Victoria Act 1992, Tourism Victoria is the vehicle through which the Government participates in the tourism and travel industries.

Risk Attestation StatementI, Andrew Dwyer, certify that Tourism Victoria has complied with the Ministerial Standing Directions 4.5.5 – Risk Management Framework and Processes. The Tourism Victoria Board verifies this assurance and that the risk profile of Tourism Victoria has been critically reviewed within the last 12 months.

Andrew DwyerChairman Tourism Victoria

Insurance Attestation StatementI, Leigh Harry, certify that Tourism Victoria has complied with Ministerial Direction 4.5.5.1 – Insurance.

Leigh HarryChief Executive Tourism Victoria

OTHER RELEVANT INFORMATIONLegislation Tourism Victoria was established under the Tourism Victoria Act 1992. The Act outlines Tourism Victoria’s functions, powers and duties.

Merit and Equity Statement In accordance with Government policies and guidelines, all appointments to Tourism Victoria in 2014–15 were made on the basis of merit.

Employees’ Health and SafetyThis year’s Annual Report for the Department of Economic Development, Jobs, Transport and Resources covers occupational health and safety matters and performance indicators concerning staff employed in the Tourism Victoria offices. See the Department’s Annual Report 2014–15.

Progress in Implementing National Competition Policy Implementing National Competition Policy does not impact on the business of Tourism Victoria.

Reviews of Legislation that Restrict CompetitionNo reviews were undertaken in 2014–15 in relation to legislation relating to Tourism Victoria.

Application of the Competition Test to New Legislative ProposalsNo new legislation was introduced during 2014–15 relating to Tourism Victoria.

Compliance with the Building Act 1993All Government departments and funded agencies are required to comply with the requirements of the Building Act 1993, the Building Code of Australia and statutory obligations by Government.

The Building Act 1993 applies to construction, demolition, removal and refurbishment of capital projects, and the Building Code of Australia relates to standards set for building regulations.

Legislative Requirements


ConsultanciesIn 2014–15, there were three consultancies where the total fees payable to the consultants were $10,000 or greater (excluding GST). The total expenditure incurred during 2014–15 in relation to these consultancies was $214,510 (excluding GST).

Details of consultancies over $10,000.

Consultant Purpose of consultancyStart date

End date

Total approved

project fee (excluding

GST)

Expenditure 2014–15

(excluding GST)

Future expenditure

(excluding GST)

Claire Ellis Review of Victoria’s Regional Tourism Boards and Destination Management Plans

11/08/2014 31/12/2014 $101,010 $101,010 $0

CBRE Pty Ltd Review of Investment Frameworks for Victoria 1/05/2014 30/12/2014 $80,000 $11,246 $68,754

Pacific Aviation Consulting

Preparation of Airline Analytical Reports 25/09/2014 17/04/2015 $33,500 $35,500 $0


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Details of consultancies under $10,000There were no consultancies under $10,000 engaged by Tourism Victoria in 2014–15.

LEGISLATIVE REQUIREMENTSApplication of Competitive Neutrality Principles to significant Government business activitiesTourism Victoria does not undertake any significant Government business activity with respect to the application of competitive neutrality principles.

Application of Competitive Neutrality principles to In-House BidsThere were no in-house bids relating to Tourism Victoria in 2014–15.

Other InformationOther relevant information relating to the financial year is retained by the accountable officer and made available to the relevant Minister, Members of Parliament and the public on request.

Victorian Industry Participation Policy During 2014–15 Tourism Victoria did not commence any contracts to which VIPP applied.

Summary of additional information available on request

• A statement that declarations of private interests have been duly completed by all relevant officers.

• Details of publications produced during 2014–15.

• Details on any major external review carried out during 2014–15.

• Details of any major research and development activities.

• Details of overseas visits undertaken.

• Details of major promotional, public relations and marketing activities undertaken during 2014–15.

The above information is available from: Senior Administration Officer Telephone: (03) 9653 9777

Workforce data as at 30 June 2015

Ongoing Employees Fixed Term & Casual Employees

Total Employees

Full time (headcount)

Part time (headcount)

Total (headcount)

Total (FTE)

Total (FTE)

Total (FTE)

June 2014 52 13 65 60 1 61

June 2015 62 10 72 69 18 87

June 2014 June 2015 June 2015 totals (FTE)



Headcount FTE FTE Headcount FTE FTE

GenderMale 24 24 0 27 27 3 30Female 41 36 1 45 42 15 57

AgeUnder 25 0 0 0 0 0 0 025–34 15 13 0 12 12 12 2435–44 24 22 0 30 27 5 3245–54 19 18 1 22 22 0 2255–64 6 6 0 7 7 1 8Over 64 1 1 0 1 1 0 1

ClassificationVPS1 0 0 0 0 0 0 0VPS2 0 0 0 0 0 0 0VPS3 7 6 0 10 10 7 17VPS4 12 11 0 14 13 6 19VPS5 25 22 1 25 23 5 28VPS6 15 15 0 16 16 0 16STS 1 1 0 1 1 0 1

Executives 5 5 0 6 6 0 6(i) FTE means full time equivalent

(ii) All figures reflect employment levels during the last full pay period in June of each year.

(iii) Excluded are those on leave without pay or absent on secondment, external contractors/consultant, temporary staff employed by employment agencies and statutory appointees.

(iv) Employee numbers for Tourism Victoria are also published in the Department of Economic Development, Jobs, Transport & Resources’ (DEDJTR) annual report.

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DIVERSITY, EQUALITY AND ENVIRONMENTAL MANAGEMENTTourism Victoria is committed to the employment and engagement of people from a diverse range of backgrounds, both in our workplace and in the communities in which we operate.

Throughout the year, Tourism Victoria complied with the office-based environmental performance improvement initiatives and requirements of the Department of Economic Development, Jobs, Transport and Resources (DEDJTR).

The Department manages matters relating to the application of merit and equity principles and environmental practices. See the DEDJTR Annual Report 2014–15.

FREEDOM OF INFORMATION Publication RequirementsThe Freedom of Information Act 1982 allows the public a right of access to documents held by Tourism Victoria. During the year, Tourism Victoria did not receive any Freedom of Information requests specifically pertaining to Tourism Victoria, and four additional departmental requests which captured data from Tourism Victoria.

Making a RequestAccess to documents may be obtained through written request to the Freedom of Information Manager, as detailed in section 17 of the Freedom of Information Act. In summary, the requirements for making a request are:

• It should be in writing

• It should identify as clearly as possible what document is being requested

• It should be accompanied by the appropriate application fee (the fee may be waived in certain circumstances).

Request for documents in the possession of Tourism Victoria should be addressed to:

Freedom of Information Officer GPO Box 2219T Melbourne VIC 3001 Phone: (03) 9653 9777

Requests can also be lodged online at www.foi.vic.gov.au.

Access charges may also apply once documents have been processed and a decision on access made, for example photocopying, search and retrieval charges.

Further information regarding Freedom of Information can be found at www.foi.vic.gov.au.

COMPLIANCE WITH THE PROTECTED DISCLOSURE ACT 2012 (FORMERLY, THE WHISTLEBLOWERS PROTECTION ACT 2001)The Protected Disclosure Act 2012 encourages and assists people to make disclosures of improper conduct or detrimental action by public officers and public bodies. The Act provides protections to people who make disclosures in accordance with the legislation and establishes a system for the matters disclosed to be investigated and for rectifying action to be taken.

Tourism Victoria does not tolerate improper conduct by employees, nor the taking of reprisals against those who come forward to disclose such conduct. Tourism Victoria is committed to ensuring transparency and accountability in its administrative and management practices, and supports the making of disclosures that reveal corrupt conduct, conduct involving a substantial mismanagement of public resources, or conduct involving a substantial risk to public health and safety or the environment.

Tourism Victoria will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure. It will also afford natural justice to the person who is the subject at the disclosure to the extent it is legally possible.

Reporting proceduresDisclosures of improper conduct made by members of the board of Tourism Victoria must be made directly to the Independent Broad-based Anti-corruption Commission (IBAC).

Employees of the Department of Economic Development, Jobs, Transport and Resources (DEDJTR) who provide administrative support within the Tourism and Airline Services division may make disclosures to the Department’s Protected Disclosure Coordinator.

The key contact for making disclosures of improper conduct or detrimental action by Tourism Victoria or its employees is the Protected Disclosure Coordinator. Disclosures by such employees may also be made to:

• the Secretary of the Department or Chief Executive of Tourism Victoria;

• a Protected Disclosure Officer;

• a manager or supervisor of a person who chooses to make a disclosure; or

• a manager or supervisor of a person about whom a disclosure has been made.



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The Department’s Protected Disclosure Coordinator is:

Mr Phillip Carpenter Legal, Audit and Risk, Corporate, Planning and Compliance Services Department of Economic Development, Jobs, Transport and Resources GPO Box 4509 Melbourne Vic 3000 Phone: 9655 2035 Email: [email protected]

Alternatively, disclosures of improper conduct or detrimental action by the Department or its employees may also be made directly to the Independent Broad-based Anti-corruption Commission (IBAC).

The Independent Broad-based Anti-corruption Commission (IBAC) Victoria Level 1, North Tower, 459 Collins Street Melbourne, VIC 3001 Phone: 1300 735 135 Mail: IBAC, GPO Box 24234, Melbourne, VIC 3000 Internet: www.ibac.vic.gov.au Email: see the website above for the secure email disclosure process, which also provides for anonymous disclosures

Further informationThe Protected Disclosure Policy and Procedures, which outline the system for reporting disclosures of improper conduct or detrimental action by the Department or its employees, is available on the Tourism Victoria and Department’s website.

Protected Disclosures reported to the Protected Disclosure Coordinator after 10 February 2013 are reported in the DEDJTR Annual Report.

LEGISLATIVE REQUIREMENTSDisclosures under the Protected Disclosure Act 2012The archived procedures established under the Whistleblowers Protection Act 2001 are available upon request

2014–15 Number

2013–14 Number

The number and types of disclosures made by an individual to the department and notified to the Independent Board-based Anti-corruption Commission.

0 0

Assessable disclosures 0 0

Financial Report

30

2010–11 2011–12 2012–13 2013–14 2014–15

$’000 $’000 $’000 $’000 $’000

Total Assets 30,473 24,143 17,592 15,785 32,569

Total Liabilities 11,149 7,896 6,819 7,239 8,681

Net Worth/Accumulated Surplus 19,234 16,246 10,772 8,546 23,889

Surplus/(Deficit) 1,084 (3,078) (5,474) (2,226) 15,343

Property, Plant & Equipment (WDV) 143 176 134 88 99

State Government Contributions 132,342 86,331 61,493 62,828 77,529

Total Expenditure 133,738 94,508 70,573 67,261 64,891

Significant changes in financial position 2014–2015State government contributions increased by $14.7 million (18.9 per cent) in 2014–15 to $77.53 million. This was mainly due to Business Events funding provided this financial year. This funding is held in a trust for events to be held in future years.

The operating surplus of $15.343 million for 2014–15 purely relates to funding received for Business Events .

The net worth of Tourism Victoria at 30 June 2015 is $23.89 million. This increase was generated by funds held at the end of the year for future commitments. A large component of this was for contract management of events.

Operational and budgetary objectives of the entity, for the financial year, and performance against those objectives including significant activities and achievements during the year.These are outlined in narrative and graphical form elsewhere in this report.

Summary of major changes or factors which have affected the achievement of the operational objectives for the year.There were no major factors affecting the achievement of the operational objectives for the year.

Five Year Comparison


31

2015 2014

Notes $ $

Income from transactionsGrant income 2(a) 77,529,176 62,828,050

Other income 2(b) 2,694,462 2,199,689

Total income from transactions 80,223,638 65,027,739

Expenses from transactionsGrants and other payments 3(a) (25,035,534) (26,860,779)

Employee expenses 3(b) (10,377,592) (8,505,512)

Depreciation and amortisation 3(c) (68,265) (53,084)

Capital asset charge (47,000) (47,000)

Supplies and services 3(d) (25,216,733) (27,584,375)

Administration charges 3(e) (4,116,785) (4,185,417)

Finance costs (29,401) (25,246)

Total expenses from transactions (64,891,310) (67,261,412)

Net result from transactions (net operating balance) 15,332,328 (2,233,672)

Other economic flows included in net resultNet gain on non-financial assets 4(a) 7,438 12,565

Net gain/(loss) on financial instruments 4(b) 20,623 (3,606)

Other gains/(losses) from other economic flows 4(c) (17,633) (1,657)

Total other economic flows included in net result 10,428 7,302

Comprehensive result 15,342,756 (2,226,371)

The above comprehensive operating statement should be read in conjunction with the accompanying notes

Comprehensive operating statement for the financial year ended 30 June 2015

Financial Report

32

2015 2014

Notes $ $

Assets

Financial assets

Cash and deposits 15(a) 31,488,110 11,535,314

Receivables 16 818,512 4,038,603

Investments 5 1 1

Total financial assets 32,306,623 15,573,918

Non-financial assets

Property, plant and equipment 6 99,183 88,009

Intangibles assets 6a 163,667 -

Prepayments - 123,235

Total non-financial assets 262,850 211,244

Total assets 32,569,473 15,785,162

Liabilities

Payables 7 5,376,827 4,116,401

Unearned Income - 293,806

Borrowings 8 100,026 81,963

Provisions 9 3,203,898 2,747,025

Total liabilities 8,680,751 7,239,195

Net assets 23,888,722 8,545,966

Equity

Accumulated surplus 23,888,722 8,545,966

Net worth 23,888,722 8,545,966

Commitments for expenditure 12

Contingent liabilities and contingent assets 13

The above balance sheet should be read in conjunction with the accompanying notes

Balance Sheet As at 30 June 2015


33

Accumulated surplus Total

$ $

Balance at 1 July 2013 10,772,336 10,772,336

Net result from transactions (2,233,672) (2,233,672)

Other economic flows included in net result 7,302 7,302

Balance at 30 June 2014 8,545,966 8,545,966

Net result from transactions 15,332,328 15,332,328

Other economic flows included in net result 10,428 10,428

Balance at 30 June 2015 23,888,722 23,888,722

The above statement of changes in equity should be read in conjunction with the accompanying notes

Statement of changes in equity

For the financial year ended 30 June 2015

Financial Report

34

2015 2014

Notes $ $

Cash flows from operating activities

ReceiptsReceipts from government 80,510,725 60,103,226

Receipts from other entities 1,635,618 2,109,161

Net goods and services tax recovered from the ATO (i) 3,906,495 4,804,629

Interest received 1,225,718 337,859

Total receipts 87,278,556 67,354,875

Payments Payments to suppliers and employees (67,052,376) (70,516,313)

Capital assets charge (47,000) (47,000)

Interest and other costs of finance paid (29,401) (25,246)

Total payments (67,128,777) (70,588,559)

Net cash flows from/(used in) operating activities 15(b) 20,149,779 (3,233,685)

Cash flows from investing activitiesPurchases of non-financial assets (196,400) -

Proceeds from disposal of property, plant & equipment 37,545 37,318

Net cash flows from/(used in) investing activities (158,855) 37,318

Cash flows from financing activitiesRepayment and disposal of finance leases (58,751) (53,592)

Net cash flows from/(used in) financing activities (58,751) (53,592)

Net increase/(decrease) in cash and cash equivalents 19,932,173 (3,249,958)

Cash and cash equivalents at beginning of financial year 11,535,314 14,788,879

Effect of exchange rate fluctuations on cash held in foreign currency 4(b) 20,623 (3,606)

Cash and cash equivalents at the end of the financial year 15(a) 31,488,110 11,535,314

The above cash flow statement should be read in conjunction with the accompanying notes

(i) Goods and Services Tax (GST) paid to ATO is presented on a net basis

Cash flow statement

For the financial year ended 30 June 2015


35

Note 1. Summary of significant accounting policies

These annual financial statements represent the audited general purpose financial statements for Tourism Victoria for the period ending 30 June 2015. The purpose of the report is to provide users with information about Tourism Victoria’s stewardship of resources entrusted to it.

(a) Statement of compliance

These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

To gain a better understanding of the terminology used in this report, a glossary of terms and style conventions can be found in Note 21.

These annual financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SD) authorised by the Minister for Finance.

The annual financial statements were authorised for issue by the responsible persons of Tourism Victoria on the 13th of August 2015.

(b) Basis of accounting preparation and measurement

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates relate to:

• actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer to Note 1(l));

• superannuation expense (refer to Note 1(g)); and

• the fair value of plant, equipment and motor vehicles (refer to Note 1(k)).

These financial statements are presented in Australian dollars, and prepared in accordance with the historical cost convention except for:

• non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value;

• derivative financial instruments are measured at fair value with changes reflected in the comprehensive operating statement.

Consistent with AASB 13 Fair Value Measurement, Tourism Victoria determines the policies and procedures for recurring fair value measurements such as property, plant and equipment and financial instruments and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant Financial Reporting Directions.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, Tourism Victoria has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

In addition, Tourism Victoria determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The fair value of plant, equipment and vehicle is normally determined by reference to the assets depreciated replacement cost. For plant, equipment and vehicle, historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.

(c) Reporting entity

The financial statements cover Tourism Victoria as an individual reporting entity. It is a statutory authority of the State of Victoria, established pursuant to an order made by the Premier under the Administrative Arrangements Act 1983.

Its principal address is: Tourism Victoria Level 32, 121 Exhibition Street Melbourne VIC 3000

The financial statements include all the controlled activities of Tourism Victoria.

(d) Objectives and funding

Tourism Victoria’s resources are primarily directed to marketing the State, nationally and internationally, as well as contributing to the development of a sustainable tourism industry.

(e) Scope and presentation of financial statements

Comprehensive operating statement

The comprehensive operating statement comprises of two components, being ‘net result from transactions’ (or termed as ‘net operating balance’) and ‘other economic flows included in net result’. The sum of the two components represents the net result.

The net result is equivalent to profit or loss derived in accordance with AASs.

Notes to the Financial Statements 30 June 2015

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Note 1. Summary of significant accounting policies (continued)

‘Other economic flows’ are changes arising from market remeasurements. They include:

• gains and losses from disposals of non-financial assets;

• fair value changes of financial instruments; and

• revaluation of the long service leave liability due to changes in discount rate.

This classification is consistent with the whole of government reporting format and is allowed under AASB 101 Presentation of Financial Statements.

Balance sheet

Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non-current assets and liabilities (non-current being those assets or liabilities expected to be recovered or settled more than 12 months after the reporting period) are disclosed in the notes, where relevant.

Cash flow statement

Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of cash flows.

For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as current borrowings on the balance sheet.

Statement of changes in equity

The statement of changes in equity presents reconciliations of non-owner and owner equity from opening balances at the beginning of the reporting period to the closing balances at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘comprehensive result’ and amounts recognised in ‘Other economic flows – other movements in equity’ related to ‘Transactions with owner in its capacity as owner’.

Rounding

Amounts in the financial statements have been rounded to the nearest dollars, unless otherwise stated. Figures in the financial statements may not equate due to rounding. Please refer to the end of Note 21 for a style convention for explanations of minor discrepancies resulting from rounding.

(f) Income from transactions

Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured at fair value. Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes.

Revenue is recognised for each of Tourism Victoria’s major activities as follows:

Grant income

Grants are recognised as income when Tourism Victoria gains control over the underlying assets. Where grants are reciprocal, income is recognised as Tourism Victoria has satisfied its performance obligations under the terms of the grant. Non-reciprocal grants are recognised as income when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

Other incomeCooperative ventures income

The amount recognised for co-operative ventures refers to funds directly received and banked by Tourism Victoria for activities such as brochure participation and co-operative marketing. Funds from co-operative venture participants which are reciprocal are recognised as revenue in the year when co-operative venture activities take place. Funds received prior to activities having taken place are recognised as Funds Received in Advance where reciprocal or as revenue if not reciprocal.

Interest income

Interest income includes interest received on bank term deposits and interest from investments. Interest income is recognised using the effective interest method which allocates the interest over the relevant period.

Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported either as part of income from other economic flows in the net result or as unrealised gains or losses taken directly to equity, forming part of the total change in net worth in the comprehensive result.

(g) Expenses from transactions

Expenses from transactions are recognised as they are incurred and reported in the financial year to which they relate.

Grants and other payments

Grants and other payments to third parties are recognised as an expense in the reporting period in which they are paid or payable. They include transactions such as grants, subsidies and other transfer payments to third parties.

Employee expenses

Refer to the section in Note 1(l) regarding employee benefits.

These expenses include all costs related to employment (including salaries, fringe benefits tax, leave entitlements, redundancy payments and WorkCover premiums.

Superannuation

The amount charged to the comprehensive operating statement in respect of defined benefit and defined contribution superannuation plans represents the contributions made by Tourism Victoria to the superannuation plan in respect to the current services of current Tourism Victoria staff. Superannuation contributions are made to the plan based on the relevant rules of the plan.

Tourism Victoria does not recognise any defined benefit liability in respect of the superannuation plan because Tourism Victoria has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due.

The Department of Treasury and Finance in their Annual Financial Statements, disclose on behalf of the State as the sponsoring employer, the net defined benefit cost related to the members of these plans as an administered liability. Refer to DTF’s Annual Financial Statements for more detailed disclosures in relation to these plans.

Depreciation and Amortisation

Depreciation is provided on property, plant and equipment. Depreciation is generally calculated on a straight line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value.

The expected useful lives are as follows:

2015 2014

Plant and equipment: 3-5 years 3-5 years

Leased plant and equipment:

3 years 3 years

Intangible produced assets 4 years -

These rates are reviewed on an annual basis.

Intangible produced assets with finite useful lives are amortised as an expense from transactions on a systematic (typically straight line) basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.



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Capital asset charge

The capital asset charge is calculated on the budgeted carrying amount of applicable non-financial physical assets.

Supplies and services

Supplies and services generally represent the marketing program costs of Tourism Victoria.

Administration charges

These expenses generally represent the day-to-day running costs required to deliver program activities in the normal operations of Tourism Victoria. These items are recognised as an expense in the reporting period in which they are incurred.

Finance costs

Finance costs are recognised as expenses in the period in which they are incurred and include:

• interest on bank overdrafts and short-term and long-term borrowings; and

• finance lease charges.

(h) Other economic flows included in the net result

Other economic flows are changes in the volume or value of asset or liability that do not result from transactions.

Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:

Disposal of non-financial assets

Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is determined after deducting from the proceeds the carrying value of the asset at that time.

Gain/(loss) arising from transactions in foreign exchange

Refer to Note 1(q) Foreign currency balances/transactions.

Other gains/(losses) from other economic flows

Other gains/(losses) from other economic flows include the gains or losses from:

• the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.

(i) Financial instruments

Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of Tourism Victoria’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132

Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract. However, guarantees issued by the Treasurer on behalf of the Department are financial instruments because, although authorised under statute, the terms and conditions for each financial guarantee may vary and are subject to an agreement.

Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not.

The following refers to financial instruments unless otherwise stated.

Categories of non-derivative financial instruments

Loans and receivables

Loans and receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less an allowance for impairment.

Loans and receivables category includes cash and deposits (refer to Note 1( j)), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables.

Financial assets and liabilities at fair value through profit and loss

Financial assets are categorised as fair value through profit or loss at trade date if they are classified as held for trading or designated as such upon initial recognition.

Financial instruments at fair value through profit or loss are initially measured at fair value and attributable transaction costs are expensed as incurred. Subsequently, any changes in fair value are recognised in the net result as other economic flows. Any interest on a financial asset is recognised in the net result from transactions.

Financial liabilities at amortised cost

Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method (refer to Note 21).

Financial instrument liabilities measured at amortised cost include all of the Tourism Victoria contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.

Impairment of assets

All assets, including intangible assets are assessed annually for indications of impairment, except for financial assets that are assessed in accordance with Note 1( j).

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the operating statement except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset.

It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

( j) Financial assets

Cash and cash equivalents

Cash and cash equivalent recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and those highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and readily convertible to known amounts of cash with an insignificant risk of changes in value.

For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as borrowings on the balance sheet.

Receivables

Receivables consist of:

• statutory receivables, such as amounts owing from the Victorian Government and GST input tax credits recoverable; and

• contractual receivables, such as debtors in relation to goods and services and accrued investment income

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Contractual receivables are classified as financial instruments and categorised as loans and receivables (refer to Note 1(i) Financial Instruments for recognition and measurement). Statutory receivables, are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.

Receivables are subject to impairment testing. A provision for doubtful receivables is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

For the measurement principle of receivables, refer to Note 1(i).

Investments

Investments are classified in the following categories:

• financial assets at fair value through profit or loss,

• loans and receivables; and

• held-to-maturity.

The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition. Any dividend or interest earned on the financial asset is recognised in the comprehensive operating statement as a transaction.

Tourism Victoria assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

(k) Non-financial physical assets

Prepayments

Prepayments represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.

Property, plant and equipment

Plant and equipment are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment.

(l) Liabilities

Payables

Payables consist of:

• contractual payables, such as accounts payable, which represents liabilities for goods and services provided to Tourism Victoria prior to the end of the financial year that are unpaid, and arise when Tourism Victoria becomes obliged to make future payments in respect of the purchase of those goods and services; and

• statutory payables, such as fringe benefits tax payables. Tourism Victoria do not need to present statutory ‘taxes payables’ in the note, as the amount of fringe benefit tax payable is not material.

Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost (refer to Note 1(i)). Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

Borrowings

All interest bearing liabilities are initially recognised at fair value of the consideration received, less directly attributable transaction costs (refer to Note 1(m)).

The measurement basis subsequent to initial recognition depends on whether Tourism Victoria has categorised its interest-bearing liabilities as either financial liabilities designated at fair value through profit or loss, or financial liabilities at amortised cost. Any difference between the initial recognised amount and the redemption value being recognised in net result over the period of the borrowing using the effective interest method.

The above classification depends on the nature and purpose of the interest bearing liabilities. Tourism Victoria determines the classification of its interest bearing liabilities at initial recognition.

Provisions

Provisions are recognised when Tourism Victoria has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using discount rate that reflects the time value of money and risks specific to the provision.

When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

Employee Benefits

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.

(i) Wages, salaries and annual leave

Liabilities for wages and salaries are recognised in the provision for employee benefits as ‘current liabilities’, because Tourism Victoria does not have an unconditional right to defer settlements of these liabilities.

Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:

• nominal value — if Tourism Victoria expects to wholly settle within 12 months; or

• present value — if Tourism Victoria does not expect to wholly settle within 12 months.

(ii) Long service leave

Liability for long service leave (LSL) is recognised in the provision for employee benefits.

Unconditional LSL is disclosed in the notes to the financial statements as a current liability even where Tourism Victoria does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

• nominal value – if Tourism Victoria expects to wholly settle within 12 months; and

• present value – if Tourism Victoria does not expect to wholly settle within 12 months.

Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.

Any gain or loss following revaluation of the present value of the LSL liability is recognised in the ‘net result from transactions’, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised in the net result as an other economic flow (refer to Note 1(h)).

(iii) Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee decides to accept an offer of benefits in exchange for the termination of employment. Tourism Victoria recognises termination benefits when it is demonstrably committed to either


39


terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

Employee benefits on-costs

Employee benefits on-costs such as payroll tax, workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service, are recognised separately from the provision for employee benefits.

(m) Leases

A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases.

Tourism Victoria as lessee

Assets held under finance leases are recognised as assets of Tourism Victoria at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. If there is certainty that Tourism Victoria will obtain the ownership of the lease asset by the end of the lease term, the asset shall be depreciated over the useful life of the asset. If there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be fully depreciated over the shorter of the lease term and its useful life.

Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.

Finance Leases

Finance lease assets are depreciated on a straight-line basis over the estimated useful life of the asset.

Operating Leases

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is

more representative of the time pattern in which economic benefits from the leased asset are consumed.

(n) Commitments

Commitments for future expenditure include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources. These commitments are disclosed by way of a note (refer to Note 12) at their nominal value and inclusive of the goods and services tax (GST) payable. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.

(o) Contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer to Note 13) and, if quantifiable, are measured at nominal value, inclusive of GST receivables and payables respectively.

(p) Accounting for the goods and services tax

Income, expenses and assets are recognised net of the amount of associated goods and services (GST), except where GST incurred is not recoverable from the taxation authority. In this case, the GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.

Commitments and contingent assets and liabilities are also stated inclusive of GST (refer to Note 1(n) and refer to Note 1(o)).

(q) Foreign currency balances/ transactions

All foreign currency transactions during the financial year are brought to account using the relevant contract rate in effect at the date of the transaction. Foreign monetary items at reporting date are translated at the exchange rate existing at reporting date. Non-monetary assets carried at fair value that are denominated

in foreign currencies are translated to the functional currency at the rates prevailing at the date when the fair value was determined.

Foreign currency translation differences are recognised in ‘other economic flows’ and accumulated in a separate component of equity, in the period in which they arise.

(r) Events after the reporting period

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between Tourism Victoria and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in the financial statements for events which occur between the end of the reporting period and the date when the financial statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the balance date and the date the statements are authorised for issue where the events relate to condition which arose after the end of the reporting period that are considered to be of material interest.

(s) Changes in accounting policies

Subsequent to the 2013-14 reporting period, the following new Standard has been adopted for the first time in the current period with their financial impacts disclosed.

AASB 10 Consolidated Financial Statements

AASB 10 provides a new approach to determine whether an entity has control over an entity, and therefore must present consolidated financial statements. The new approach requires the satisfaction of all three criteria for control to exist over an entity for financial reporting purposes:

(a) The investor has power over the investee;

(b) The investor has exposure, or rights to variable returns from its involvement with the investee; and

(c) The investor has the ability to use its power over the investee to affect the amount of investor’s returns.

Based on the new criteria prescribed in AASB 10, Tourism Victoria has reviewed the existing arrangements to determine if there are any additional entities that need to be consolidated into Tourism Victoria.

Tourism Victoria has assessed its relationship with other entities and concluded that none of them have met the control criteria.

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(t) Australian Accounting Standards issued that are not yet effective.

Certain new AASs have been published that are not mandatory for the 30 June 2015 reporting period. DTF assesses the impact of these new standards and advises Tourism Victoria of their applicability and early adoption where applicable.

As at 30 June 2015, the following standards and interpretations (applicable to departments) had been issued but were not mandatory for the financial year ending 30 June 2015. Tourism Victoria has not early adopted these standards.

Standard / Interpretation Summary

Applicable for annual reporting periods beginning on

Impact on Tourism Victoria financial statements

AASB 9 Financial instruments The key changes include the simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.

1 Jan 2018 The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss.

While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed.

AASB 2014-1 Amendments to Australian Accounting Standards [Part E Financial Instruments]

Amends various AASs to reflect the AASB's decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.

1 Jan 2018 This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements.

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation [AASB 116 & AASB 138]

Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets to:

• establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset;

• prohibit the use of revenue based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.

1 Jan 2016 The assessment has indicated that there is no expected impact as the revenue-based method is not used for depreciation and amortisation.

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2014-15 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial InstrumentsAASB 2014-1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts only] #AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations [AASB 1 & AASB 11]AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants [AASB 101, AASB 116, AASB 117, AASB 123, AASB 136, AASB 140 & AASB 141]AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)]AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 MaterialityAASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent [AASB 127, AASB 128] #AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception [AASB 10, AASB 12, AASB 128] #Note: # This Standard or Amendment may not be relevant to Victorian not-for-profit entities when operative.



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Note 2. Income from transactions

2015 2014

$ $

(a) Grant income

State government grants

Core program 24,736,610 26,142,678

Special projects 52,792,566 36,685,372

Total grant income 77,529,176 62,828,050

(b) Other income

Cooperative ventures

E-Marketing revenue 600,090 608,482

Product and destination marketing 273,817 584,324

International marketing 303,379 311,101

Other 232,402 362,067

1,409,689 1,865,975

Interest income

Interest on bank deposits 88,388 87,330

Interest from investments 1,196,385 246,384

1,284,773 333,714

Total other income 2,694,462 2,199,689

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Note 3. Expenses from transactions

2015 2014

$ $

(a) Grants and other payments Events 17,477,354 20,729,196

Regional tourism cooperative marketing 3,717,341 3,186,213

Victoria Trade and Investment Company Pty Ltd 2,486,468 1,542,581

Industry development 250,000 307,159

Other 1,104,371 1,095,629

Total grants and other payments 25,035,534 26,860,779

(b) Employee expenses Salary & wages 7,792,496 6,643,369

Superannuation 797,440 639,768

Annual leave 794,618 524,353

Long service leave 315,304 104,175

Other on-costs (fringe benefits tax, payroll tax and workcover levy) 677,734 593,847

Total employee expenses 10,377,592 8,505,512

(c) Depreciation and amortisation Plant and equipment 6,942 24,789

Leased motor vehicles 28,590 28,295

Intangibles assets 32,733 -

Total depreciation 68,265 53,084

(d) Supplies and services Advertising 9,924,761 9,990,942

Printed material 181,503 209,810

Consultants, outsourcing & professional services and agency staff 3,401,435 5,496,811

Distribution 193,266 99,743

Exhibition costs/venue hire 462,980 239,053

Familiarisation expenses 1,945,104 1,093,810

Hospitality & entertainment 229,187 407,683

Marketing, promotional, PR and media costs 5,469,684 7,222,163

Online services 994,936 660,631

Overseas contractors 1,029,601 769,059

Photographic/video 358,612 317,505

Research 1,011,102 1,052,056

Other 14,562 25,108

Total supplies and services 25,216,733 27,584,375

(e) Administration charges Rent, cleaning and power 1,015,479 1,006,584

Telephone, facsimile and postage 252,418 278,891

Audit fees 33,800 32,930

Computer charges 1,464,065 1,594,824

Printing, stationery and offices requisites 115,547 152,856

Motor vehicle running costs 67,676 56,868

Travel charges 696,461 675,525

Training and development 257,114 255,957

Other 214,225 130,983

Total administration charges 4,116,785 4,185,417

Notes to the Financial Statements (continued) 30 June 2015


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Note 4. Other economic flows included in net result

2015 2014

$ $

(a) Net gain on non-financial assets Net gain on disposal of property, plant and equipment 7,438 12,565

Total net gain on non-financial assets 7,438 12,565

(b) Net loss on financial instruments Net FX gain/(loss) on financial instruments 20,623 (3,606)

Total loss on financial instruments 20,623 (3,606)

(c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service liability (17,633) (1,657)

Total other gains/(losses) from other economic flows (17,633) (1,657)

Total other economic flows included in net result 10,428 7,302

Note 5. Investments

2015 2014

$ $

Non traded investmentsShares in other entities (at cost) 1 1

1 1

In June 2001 Tourism Victoria, along with all the other state tourism authorities, and Tourism Australia contributed share capital to the establishment of Australian Tourism Data Warehouse Pty Ltd (ATDW). ATDW is a company limited by share, incorporated in NSW.

Paragraph 10 of the Shareholders Agreement states that a shareholder can only dispose of shares to another shareholder. In practical terms this means that the shares cannot be sold.

Tourism Victoria believes that because of the nature of ATDW and its shareholders and the restrictions in the shareholder agreement, Tourism Victoria is unable to find a shareholder to purchase the shares. Therefore, using the definition in AASB 139 of “Fair Value”, the shares have little value. Consequently the shares have been impaired to $1.

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44

Note 6. Property, plant and equipment

2015 2014

$ $

Classification by purpose groups – carrying amounts

Sub classification by nature

Plant, equipment and leased motor vehicles Gross carrying amount 264,424 282,221

less: accumulated depreciation (165,241) (194,212)

Net carrying amount 99,183 88,009

Net carrying amount of property, plant and equipment 99,183 88,009

Property, plant and equipment are classified primarily by the ‘purpose’ for which the assets are used according to one of six ‘Purpose Groups’ based upon government purpose classifications. All assets in a purpose group are further sub categorised according to the asset’s ‘nature’ (i.e. plant and equipment, etc), with each sub-category being classified as a separate class of asset for financial reporting purposes. All Tourism Victoria’s assets are within the Public Safety and Environment purpose group.

Plant, equipment and leased motor vehicles at fair value

2015 2014

$ $

Opening Balance 88,009 134,478

Additions 76,813 31,367

Disposals (30,107) (24,753)

Depreciation expense (35,532) (53,084)

Closing Balance 99,183 88,009

2015 2014

$ $

The following useful lives of assets are used in the calculation of depreciation:

Plant and equipment 3-5 years 3-5 years

Leased motor vehicles 3 years 3 years

Aggregate depreciation allocated, recognised as expense during the year:

Plant and equipment 6,942 24,789

Leased motor vehicles 28,590 28,295

35,532 53,084

2015 2014

$ $

Gross sales proceeds 37,545 37,318

Carrying amount of non-financial assets disposed (30,107) (24,753)

Net gain/(loss) on disposal 7,438 12,565



45

Note 6. Property, plant and equipment (continued)

Fair value measurement hierarchy for assets as at 30 June 2015Plant, equipment and leased motor vehicles at fair value Carrying amount as at Fair value measurement at end

of reporting period using:

30-Jun-15 Level 1(i) Level 2(i) Level 3(i)

$ $ $ $

Plant, equipment and leased motor vehicles 99,183 - - 99,183

Total plant, equipment and leased motor vehicles at fair value 99,183 - - 99,183

Fair value measurement hierarchy for assets as at 30 June 2014Plant, equipment and leased motor vehicles at fair value Carrying amount as at Fair value measurement at end

of reporting period using:

30-Jun-14 Level 1(i) Level 2(i) Level 3(i)

$ $ $ $

Plant, equipment and leased motor vehicles 88,009 - - 88,009

Total plant, equipment and leased motor vehicles at fair value 88,009 - - 88,009

(i) Classified in accordance with the fair value hierarchy, see Note 1(b).

Plant, equipment and leased motor vehiclesPlant, equipment and leased motor vehicles are held at fair value. When plant, equipment and leased motor vehicle are specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated replacement cost method.

There were no changes in valuation techniques throughout the period to 30 June 2015.

For all assets measured at fair value, the current use is considered the highest and best use.

Reconciliation of Level 3 fair value2015 Plant, equipment and leased motor vehicles

$

Opening balance 88,009

Purchases 76,813

Sales (30,107)

Gains or losses recognised in net result -

Depreciation (35,532)

Closing balance 99,183

2014 Plant, equipment and leased motor vehicles

$


Purchases 31,367

Sales (24,753)

Gains or losses recognised in net result -

Depreciation (53,084)


Financial Report

46

Note 6. Property, plant and equipment (continued)

Description of significant unobservable inputs to Level 3 valuations for 2015

Valuation technique

Significant unobservable inputs

Range (weighted average)

Sensitivity of fair value measurement to changes in significant unobservable inputs

Plant, equipment and leased motor vehicles

Depreciated replacement cost

Cost per unit $8,564–$50,992 per unit ($26,875 per unit)

A significant increase or decrease in cost per unit would result in a significantly higher or lower fair value.

Useful life of plant, equipment and leased motor vehicles

3-5 years (3 years) A significant increase or decrease in the estimated useful life of the asset would result in a significantly higher or lower valuation.

Description of significant unobservable inputs to Level 3 valuations for 2014

Valuation technique

Significant unobservable inputs

Range (weighted average)

Sensitivity of fair value measurement to changes in significant unobservable inputs

Plant, equipment and leased motor vehicles

Depreciated replacement cost

Cost per unit $5,645–$45,835 per unit ($20,095 per unit)

A significant increase or decrease in cost per unit would result in a significantly higher or lower fair value.

Useful life of plant, equipment and leased motor vehicles

3-5 years (3 years) A significant increase or decrease in the estimated useful life of the asset would result in a significantly higher or lower valuation.

The comparative figures in the 2014 financial year have been restated to include leased motor vehicles.

Note 6a. Intangible Asset

2015 2014

$ $

Gross carrying amounts

Opening balance - -

Addition 196,400


Accumulated Amortisation

Opening balance - -

Amortisation of intangible assets (32,733) -

Closing balance (32,733)

Net book value at end of financial year 163,667 -

The intangible asset relates to the development and implementation of the Victorian Trails website due to a responsive design web framework to accommodate the ever growing use of smartphones and tablets.



47

Note 7. Payables

2015 2014

$ $

Current

Contractual

Trade creditors and accruals ((i), (ii)) 5,103,656 3,836,434

Other payables (iii) 273,171 279,967

Total current payables 5,376,827 4,116,401

(i) The average credit period is 30 days.

(ii) All payables were/will be paid out. There are no overdue amounts.

(iii) Other payables represent accrued employee expenses.

Please refer to note 14(c) for the maturity analysis of contractual payables.

Note 8. Borrowings

2015 2014

$ $

Current borrowings

Secured

Finance lease liabilities (i) (note 11) 32,991 49,079

Total current borrowings 32,991 49,079

Non-current borrowings

Secured

Finance lease liabilities (i) (note 11) 67,035 32,884

Total non-current borrowings 67,035 32,884

Total current and non-current borrowings 100,026 81,963

(i) Secured by the assets leased. Lease liabilities are effectively secured as the rights to the leased assets reverts to the lessor in the event of default.

Please refer to note 14(d) for the maturity analysis of borrowings.

During the current and prior year there were no breaches or defaults on any of the borrowings.

Financial Report

48


Note 9. Provisions

2015 2014

$ $

(a) Employee Benefits and related oncosts

Current employee benefits(i) Annual leave:

(ii) Unconditional and expected to settle within 12 months 927,297 693,177

(i) Long service leave:


(iii) Unconditional and expected to settle after 12 months 1,598,813 1,457,652

2,610,258 2,227,547

Provisions related to employee benefit on-costs


(iii) Unconditional and expected to settle after 12 months 261,167 231,765

418,801 357,122

Total current provisions 3,029,059 2,584,668

Non-current employee benefits(i) Conditional long service leave 150,290 140,084

Conditional long service leave oncosts 24,549 22,273

Total non-current provisions 174,839 162,357

Total provisions 3,203,898 2,747,025

Employee benefits and related on-costs

Current employee benefits Annual leave 927,297 693,177

Unconditional long service leave 1,682,961 1,534,370

Non-current employee benefits

Conditional long service leave 150,290 140,084

Total employee benefits 2,760,548 2,367,631

On-costs Current on-costs 418,801 357,122

Non-current on-costs 24,549 22,273

Total on-costs 443,350 379,394

Total employee benefits and on-costs 3,203,898 2,747,025

(b) Movement in provisions On-cost

2015

$


Additional provisions recognised 173,545

Reduction arising from payments (109,589)


Current 418,801

Non-current 24,549

443,350

(i) Employee benefits consist of annual leave and long service leave accrued by employees. On costs such as payroll tax and workers’ compensation insurance are not employee benefits and are reflected as a separate provision.

(ii) The amounts disclosed are nominal amounts.

(iii) The amounts disclosed are discounted to present values.


49

Note 10. Superannuation

Employees of Tourism Victoria are entitled to receive superannuation benefits and Tourism Victoria contributes to both defined benefit and defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary.

Tourism Victoria does not recognise any defined benefit liability in respect of this plan because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in its disclosure for administered items.

However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of Tourism Victoria.

The name and details of the major employee superannuation funds and contributions made by Tourism Victoria are as follows:

Fund Contribution for the year

Contribution for the year

Contribution outstanding at year end

Contribution outstanding at year end

2015 2014 2015 2014

$ $ $ $

Defined benefit plans:

State Superannuation Fund - revised and new 162,382 147,417 - -

Defined contribution plans:

VicSuper 365,746 328,371 - -

Private Funds 270,224 159,614 - -

Total 798,352 635,402 - -

The bases for contributions are determined by various schemes.

Financial Report

50

Note 11. Leases

(a) Disclosure for lessees - finance leases liabilities

Leasing arrangementsFinance leases relate to motor vehicles with lease terms that may range from 2 to 3 years. Tourism Victoria has the option to purchase the vehicles for a nominal amount at the conclusion of the lease agreements.

Finance lease liabilities

Minimum future lease payments (i)

Present value of minimum future lease payments

2015 2014 2015 2014

$ $ $ $

Not longer than 1 year 36,616 51,983 32,991 49,079

Longer than 1 year and not longer than 5 years 69,705 33,908 67,035 32,884

Minimum future lease payments 106,321 85,891 100,026 81,963

less: Future finance charges (6,295) (3,928) - -

Present value of minimum lease payments 100,026 81,963 100,026 81,963

Included in the financial statements as:

Current borrowings (note 8) 32,991 49,079

Non-current borrowings (note 8) 67,035 32,884

100,026 81,963

(i) Minimum lease payments includes the aggregate of all lease payments and any guaranteed residual.

(ii) Please refer to note 14(b) for ageing analysis of finance lease liabilities.

(b) Disclosure for lessees - operating leases

Refer to note 12(b).



51

Note 12. Commitments for expenditure

(a) Grant Commitments payableCommitments for the payment of grants under contracts in existence at the reporting date but not recognised as liabilities and payable are:

2015 2014

$ $

Not longer than 1 year 10,213,200 14,121,379

Longer than 1 year and not longer than 5 years 12,430,500 7,856,200

Longer than 5 years 19,594,300 9,067,300

42,238,000 31,044,879

(b) Operating leases commitment payable

Leasing arrangements

Operating leases relate to offices which Tourism Victoria leases overseas and interstate, with lease terms of between two and ten years. All operating lease contracts are between Tourism Victoria and Tourism Australia, and contain market review clauses in the event that Tourism Victoria exercises its option to renew. Tourism Victoria does not have an option to purchase the leased asset at the expiry of the lease period.

Non-cancellable operating leases

2015 2014

$ $

Not longer than 1 year 231,853 128,166

Longer than 1 year and not longer than 5 years 156,707 106,843

388,560 235,009

(c) Other CommitmentsCommitments for the payment of other expenditure under contracts in existence at the reporting date but not recognised as liabilities and payable are:

2015 2014

$ $

Not longer than 1 year 3,607,345 5,488,695

Longer than 1 year and not longer than 5 years 550,630 1,726,817

4,157,975 7,215,513

The comparative figures in the 2014 financial year have been restated to exclude operating lease commitments and local engaged staff employment contracts.

Note 13. Contingent liabilities and contingent assets

Contingent AssetsThere were no contingent assets at 30 June 2015 (2014: nil).

Contingent Liabilities2015 2014

$ $

Legal proceedings and disputes - 15,000

- 15,000

In the 2014 financial year claims for damages were lodged against Tourism Victoria in relation to alleged copyright infringement.

This matter has been resolved during the financial year 2014-15.

Financial Report

52

Note 14. Financial instruments

(a) Financial risk management objectives

Tourism Victoria’s principal financial instruments comprise of:

• cash assets;

• term deposits;

• receivables (excluding statutory receivables);

• payables (excluding statutory payables);

• borrowings; and

• finance lease payables.

Tourism Victoria’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

The policies for managing these risks are discussed in more detail below:

Details of significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 of the financial statements.

The main purpose in holding financial instruments is to prudently manage Tourism Victoria’s financial risks within the Government policy parameters.

Tourism Victoria’s main financial risks include credit risk, liquidity risk, interest rate risk, foreign currency risk and market risk. Tourism Victoria manages these financial risks in accordance with its financial risk management policy.

Tourism Victoria uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility for the identification and management of financial risks rests with the key management personnel of Tourism Victoria and the Department of Economic Development, Jobs, Transport and Resources.

The carrying amounts of Tourism Victoria financial assets and financial liabilities by category are in the following table:

2015 2014

Notes $ $

Financial assetsCash and deposits 31,488,110 11,535,314

Receivables (i) 515,500 3,731,799

Investments (ii) 1 1

Total financial assets (a) 32,003,611 15,267,114

Financial liabilitiesPayables (iii) 5,376,827 4,116,401

Finance lease liabilities (iii) 100,026 81,963

Total financial liabilities (b) 5,476,853 4,492,170

Categorisation of financial instruments

(i) These are loan and receivables.

(ii) Contractual financial assets/liabilities designated at fair value through profit and loss.

(iii) These are contractual financial liabilities at amortised costs.

(a) The total amount of financial assets disclosed here excludes statutory receivables (i.e. amounts owing from Victorian Government and GST input tax credit recoverable).

(b) The total amount of financial liabilities disclosed here excludes statutory payable (i.e. taxes payable).

Net holding gain/(loss) on financial instruments by category

2015 2014

$ $

Financial assetsCash and deposits 1,284,773 333,714

Total financial assets 1,284,773 333,714

Financial liabilitiesFinance lease interest (6,510) (5,838)

Total financial liabilities (6,510) (5,838)



53

Note 14. Financial instruments (continued)

The net holding gains or losses disclosed above are determined as follows:

• for cash and deposits, loans or receivables, the net gain or loss is calculated by taking the interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result;

• for financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost;

• for financial asset and liabilities that are held-for-trading or designated at fair value through profit or loss, the net gain or losses calculated by taking the movement in the fair value of the financial asset or liability.

(b) Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to Tourism Victoria. Tourism Victoria has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. Tourism Victoria measures credit risk on a fair value basis.

Tourism Victoria does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with credit-ratings assigned by international credit rating agencies.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents Tourism Victoria’s maximum exposure to credit risk without taking account for the value of any collateral obtained.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that Tourism Victoria will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.

Credit quality of contractual financial assets that are neither past due or impaired

Financial Institutions

(AA- rating)

Government Agencies

(AAA rating)

Other Government

Agencies (AAA rating)

Regional Tourism Bodies

(min BBB credit rating)

Other (not rated)

Total

2015

Cash and deposits 7,204,025 - 24,000,000 - 284,085 31,488,110

Trade Debtors - 117,738 660 26,160 67,569 212,127

Interest receivables 65,179 - - - - 65,179

Other receivables - - - - 238,194 238,194

Investments - - - - 1 1

Total contractual financial assets 7,269,204 117,738 24,000,660 26,160 589,849 32,003,611

2014

Cash and deposits 5,813,492 - 5,500,000 - 221,822 11,535,314

Trade Debtors - 2,953,536 - 232,774 58,160 3,244,469

Interest receivables 6,124 6,124

Other receivables 228,886 252,320 481,206

Investments - - - - 1 1

Total contractual financial assets 5,819,616 3,182,422 5,500,000 232,774 532,303 15,267,114

(i) The total amounts disclosed here exclude statutory amounts (i.e amounts owing from Victorian Government and GST input tax credit recoverable).

There are no material financial assets which are individually determined to be impaired.

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54


Ageing analysis of contractual financial assets (i)

Carrying amount Not past due and not impaired

Past due but not impaired

Less than 1 Month 1-3 months 3 months - 1 year

2015

Debtors 212,127 198,869 2,200 1,158 9,900

Loan to third party 114,335 114,335 - - -

Other receivables 189,038 189,038 - - -

515,500 502,241 2,200 1,158 9,900

2014

Debtors 3,244,469 2,943,809 300,660 - -

Loan to third party 92,368 92,368 - - -

Other receivables 394,962 394,962 - - -

3,731,799 3,431,139 300,660 - -

(i) The carrying amounts disclosed here exclude statutory amounts (i.e. amounts owing from Victorian Government and GST input tax credit recoverable).

(c) Liquidity risk

Liquidity risk arises when Tourism Victoria is unable to meet its financial obligations as they fall due. Tourism Victoria operates under the Government fair payments policy of settling financial obligations within 30 days and in the event of a dispute, make payments within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holdings of high quality liquid assets and dealing in highly liquid markets.

Tourism Victoria’s exposure to liquidity risk is deemed insignificant based on prior period’s data and current assessment of risk.

Maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the Balance Sheet.

(d) Market Risk

Tourism Victoria’s exposure to market risk is primarily through interest rate risk and foreign currency risk. Objectives, policies and processes used to manage each of these risks are disclosed below:

Foreign currency riskTourism Victoria’s foreign currency risk is managed by transferring funds to onshore foreign currency accounts, sufficient to fund the following year overseas operations, as soon as the regional overseas operating budgets are known. This locks in an exchange rate for each year’s operations at the start of each year which effectively hedges against currency fluctuations during the year.

Consistent with Treasury recommendation (FRD 114a), Tourism Victoria has not adopted hedge accounting.



55


Interest rate risk

Tourism Victoria’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out below.

Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. Tourism Victoria does not hold any interest bearing financial instruments that are measured at fair value, therefore has nil exposure to fair value interest rate risk.

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Tourism Victoria has minimal exposure to cash flow interest rate risks through its cash and deposits and term deposits that are at floating rates.

Tourism Victoria manages this risk by investing in short term fixed rate financial instruments with an investment maturity sufficient to fund weekly expenditure. Cash at bank balances are kept at minimal operational levels. Management reviews its cash flow position on a weekly basis. Management has concluded that cash at bank is a financial asset that can be left at a floating rate without necessarily exposing Tourism Victoria to significant bad risk as it adopts a conservative approach in budgeting for interest revenue. Management monitors movement in interest rates on a weekly basis.

The following table details Tourism Victoria’s exposure to interest rate risk as at 30 June 2015.

Interest rate exposure of financial instruments

Maturity dates

Weighted average

effective interest rate

Variable interest

rate

Less than 1 year

1-5 years More than 5 years

Non-interest bearing

Total

Notes % $ $ $ $ $ $

2015

Financial assets

Cash and deposits 15 2.52% 7,488,110 24,000,000 - - - 31,488,110

Receivables 16 - - - - 515,500 515,500

Investments 5 - - - - 1 1

7,488,110 24,000,000 - - 515,501 32,003,611

Financial liabilities

Payables 7 - - - - 5,376,827 5,376,827

Finance lease liabilities 8,11 5.12% - 32,991 67,035 - - 100,026

- 32,991 67,035 - 5,376,827 5,476,853

Net financial assets/(liabilities) 7,488,110 23,967,009 (67,035) - (4,861,326) 26,526,758

2014

Financial assets

Cash and deposits 15 2.60% 6,035,314 5,500,000 - - - 11,535,314

Receivables 16 - - - - 3,731,799 3,731,799

Investments 5 - - - - 1 1

6,035,314 5,500,000 - - 3,731,800 15,267,114

Financial liabilities

Payables 7 - - - - 4,116,401 4,116,401

Finance lease liabilities 8,11 6.12% - 49,079 32,884 - - 81,963

- 49,079 32,884 - 4,116,401 4,198,364

Net financial assets/(liabilities) 6,035,314 5,450,921 (32,884) - (384,601) 11,068,750

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Sensitivity disclosure analysis

Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, Tourism Victoria believes the following movements are ‘reasonably possible’ over the next 12 months (Base rates are sourced from Reserve Bank of Australia):

• A parallel shift of +0.5% and -0.5% in market interest rate (AUD) from year end rates of 2.09%. (2014: 2.57%);

• Proportional exchange rate movement of -10% (depreciation of AUD) and +10% (appreciation of AUD) against foreign currencies, from the year end rates. At year end there were foreign currency balances (AUD 1,274,430) which would expose Tourism Victoria to exchange rate risk (2014: AUD 1,779,511); and;

• A parallel shift of +1% and -1% in inflation rate from year end rates of 1.5% (2014: 3.0%) - Tourism Victoria has no financial instruments exposed to inflation risk (2014: no exposure)

The following table discloses the impact on net operating result and equity for each category of financial instrument held by Tourism Victoria at year end as presented to key management personnel, if the above movements were to occur.

2015 Foreign Exchange Risk 2015 Interest rate risk

-10% +10% -0.5% (50 basis points)

+0.5% (50 basis points)

Carrying Amount

Profit $

Equity $

Profit $

Equity $

Profit $

Equity $

Profit $

Equity $

Financial Assets

Cash & deposits (1) 31,488,110 127,443 127,443 (127,443) (127,443) (157,441) (157,441) 157,441 157,441

Receivables (2) 515,500 - - - - - - - -

Investments in other entities (3) 1 - - - - - - - -

Financial Liabilities

Payables (2) 5,376,827 - - - - - - - -

Finance lease liabilities (4) 100,026 - - - - - - - -

Total increase/(decrease) 127,443 127,443 (127,443) (127,443) (157,441) (157,441) 157,441 157,441

2014 Foreign Exchange Risk 2014 Interest rate risk

-10% +10% -0.5% (50 basis points)

+0.5% (50 basis points)

Carrying Amount

Profit $

Equity $

Profit $

Equity $

Profit $

Equity $

Profit $

Equity $

Financial Assets

Cash & deposits (1) 11,535,314 177,951 177,951 (177,951) (177,951) (57,677) (57,677) 57,677 57,677

Receivables (2) 3,731,799 - - - - - - - -

Investments in other entities (3) 1 - - - - - - - -

Financial Liabilities

Payables (2) 4,116,401 - - - - - - - -

Finance lease liabilities (4) 81,963 - - - - - - - -

Total increase/(decrease) 177,951 177,951 (177,951) (177,951) (57,677) (57,677) 57,677 57,677

(1) In 2014/15, $30,213,680 cash and deposits are held in Australian Dollars. $6,213,680 is held on deposit at variable interest rates. $24,000,000 is invested in Australian Dollars in interest bearing accounts. The equivalent of AUD $1,274,430 is held in 7 overseas currencies. In 2013/14, $9,755,803 cash and deposits are held in Australian Dollars. $4,255,182 is held on deposit at variable interest rates. $5,500,000 is invested in Australian Dollars in interest bearing accounts. The equivalent of AUD $1,779,511 is held in 7 overseas currencies.

(2 The carrying amount is denominated in Australian Dollars and is non-interest bearing. This item is not subject to the identified risk sensitivities.

(3) Investments are denominated in Australian Dollars and are non-interest bearing. This item is not subject to identified risk sensitivities.

(4) Interest bearing liabilities solely relate to finance lease liabilities associated with motor vehicles. Each contract has interest fixed at the inception of the lease. This item is not subject to identified risk sensitivities.



57


(e) Fair Value

Management consider that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values. The fair values and net fair values of financial assets and financial liabilities are determined as follows:

• the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices; and

• the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models on discounted cash flow analysis.

The financial statements include holdings in unlisted shares (Note 5). Transaction costs are included in the determination of net fair value.

The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as the carrying amounts.

Comparison between carrying amount and fair value

Carrying amount Fair value Carrying amount Fair value

2015 2015 2014 2014

Contractual financial assetsCash and deposits 31,488,110 31,488,110 11,535,314 11,535,314

Receivables 515,500 515,500 3,731,799 3,731,799

Investments 1 1 1 1

Total contractual financial assets 32,003,611 32,003,611 15,267,114 15,267,114

Contractual financial liabilitiesPayables 5,376,827 5,376,827 4,116,401 4,116,401

Total contractual financial liabilities 5,376,827 5,376,827 4,116,401 4,116,401


Financial Report

58

Note 15. Cash flow information

2015 2014

$ $

(a) Reconciliation of cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows:

Cash at bank and on hand 7,204,025 5,814,113

Short term deposits and investments 24,000,000 5,500,000

Cash at bank – (held at overseas offices) 284,085 221,201

Balance as per cash flow statement 31,488,110 11,535,314

(b) Reconciliation of net result for the period

Net result for the reporting period 15,342,756 (2,226,371)

Non-cash movements

(Gain)/Loss on disposal of non-current assets (7,438) (12,565)

Depreciation and amortisation of non-current assets 68,265 53,084

(Gain)/loss on foreign exchange currency (20,623) 3,606

Movements in assets and liabilities

Changes in net assets and liabilities

(Increase)/decrease in assets

Current receivables 3,220,091 (2,581,665)

Other current assets 123,235 1,088,177

Increase/(decrease) in liabilities

Current payables 966,621 441,237

Current provisions 444,391 (10,780)

Non-current provisions 12,482 11,593

Net cash flows from / (used) in operating activities 20,149,779 (3,233,685)



59

Note 16. Receivables

2015 2014

$ $

Current receivables

Contractual

Debtors (i) 212,127 3,244,469

Loan to third party 114,335 92,368

Other receivables 189,038 394,962

515,500 3,731,799

StatutoryGST input tax credit recoverable 303,012 306,804

303,012 306,804

Total current receivables 818,512 4,038,603

(i) The average credit period on sales of goods and/or services is 30 days. No interest is charged on other receivables.

(ii) Ageing analysis of contractual receivables, please refer to note 14(b).

(iii) Nature and extent of risk rising from contractual receivables, please refer to note 14(b).

Financial Report

60

Note 17. Responsible Persons

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

Names

The persons who held positions in Tourism Victoria are as follows:

Minister for Tourism and Major Events The Hon. John Eren, MP 4 December 2014 to 30 June 2015

Minister for Tourism and Major Events The Hon. Louise Asher, MP 1 July 2014 to 3 December 2014

Chief Executive Leigh Harry 1 July 2014 to 30 June 2015

Chairman Andrew Dwyer 8 July 2014 to 30 June 2015

Board Member Andrew Dwyer 1 July 2014 to 7 July 2014

Deputy Chairman Wendy Smith 1 July 2014 to 30 June 2015

Board Member Alla Wolf-Tasker, AM 1 July 2014 to 30 June 2015

Board Member Craig Opie 1 July 2014 to 30 June 2015

Board Member Helene Bender, OAM 1 July 2014 to 30 June 2015

Board Member Peter Crinis 1 July 2014 to 30 June 2015

Board Member Andrew Fairley, AM 1 July 2014 to 30 June 2015

Board Member Cinzia Burnes 1 July 2014 to 30 June 2015

Board Member Mike Brady, AM 1 July 2014 to 30 June 2015

Remuneration

Remuneration received or receivable for the position of Accountable Officer, Chief Executive, in connection with the management of Tourism Victoria during the reporting period was in the range:

$340,000 – $349,999 (2014: $330,000 – $339,999).

Remuneration received or receivable by Tourism Victoria Board members for the reporting period is provided below:

Total Remuneration 2015 2014

No. No.

$0 - $9999 1 -

$10,000 - $19,999 5 8

$20,000 - $29,999 3 4

$40,000- $49,999 1 1

10 13

$206,215 $213,211

Amounts paid to Ministers are reported in the financial statements of the Department of Premier and Cabinet.



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Note 17. Responsible Persons (continued)

Related Parties

For a number of years, the position of Chief Executive of Tourism Victoria holds a seat on the Board of the Victorian Major Events Company (VMEC). All financial transactions with VMEC are at arms length and transacted under normal commercial terms.

Tourism Victoria entered into payable and receivable transactions with the following organisations in its domestic dealings and within normal customer relationships on terms and conditions no more favourable than those available in similar arm’s length dealings. The Board members listed below were, during all or part of 2014-15, directors, employees or owners/part owners of the organisations.

2015 2014

$ $

Alla Wolf-Tasker Lake House Restaurant & Boutique Hotel (1) 12,722 31,975

Alla Wolf-Tasker Daylesford Macedon Produce (2) 7,150 8,250

Peter Crinis Crown Melbourne Ltd (3) 62,089 96,054

Peter Crinis Melbourne Convention Bureau (4) 6,620,900 5,542,900

Peter Crinis Melbourne Food & Wine Festival (5) 1,726,800 -

Cinzia Burnes AOT Inbound Pty Ltd (6) 11,524 12,635

Helene Bender Deakin University - (500)

Andrew Fairley Parks Victoria - 49,200

Andrew Fairley Tourism Australia (7) 440,082 -

8,881,267 5,740,514

The following notes provide an analysis of the 2014-15 financial transactions:

(1) Familiarisation and hospitality expenses $12,722. Tourism Victoria runs both trade and media familiarisation programs. Trade familiarisation programs are to promote Victoria to the tourism industry; Media familiarisation programs are to generate media publicity in pursuit of the marketing objectives of Tourism Victoria.

(2) Grant payments $7,150.

(3) Familiarisation costs $62,089.

(4) Grant payments $6,620,900.

(5) Payments for grants $1,650,000, cooperative marketing $99,000. Receipts for cooperative marketing and advertising $22,200.

(6) Familiarisation costs $11,524.

(7) Payments for cooperative marketing $491,946, conference and exhibition $208,655, office rental $14,421, reports and media monitoring $9,670. Receipts for cooperative marketing $121,000 and familiarisation $163,611.

Financial Report

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Note 18. Remuneration of executives and payments to other personnel

The number of executive officers, other than Ministers and the Accountable Officer, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.

The increase in the total annualised employee equivalent and the consequential increase in the base and the total executives remuneration payments is due to the Director of Marketing serving the full finanical year as opposed to only part of the year in 2013-14.

Income Band Total Remuneration Base Remuneration

2015 2014 2015 2014

No. No. No. No.

$60,000 - $69,999 - 1 - 1

$70,000 - $79,999 - 1 - 1

$110,000 - $119,999 1 - 1 -

$170,000 - $179,999 - 1 - 1

$180,000 - $189,999 - - - 1

$190,000 - $199,999 1 1 1 -

$200,000 - $209,999 1 - 1 1

$210,000 - $219,999 - 1 - -

$220,000 - $229,999 - - - 1

$230,000 - $239,999 1 1 1 -

$280,000 - $289,999 - - 1 -

$290,000 - $299,999 1 - - -

Total numbers 5 6 5 6

Total annualised employee equivalent (i) 4.6 4.5 4.6 4.5

Total amount $1,050,201 $943,302 $1,030,104 $923,289

(i) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over the 52 weeks for a reporting period

There is no payment made for 2014 and 2015 to contractors with significant management responsibilities.

Note 19. Remuneration of auditors

2015 2014

$ $

Victorian Auditor-General’s Office

Audit of the financial statements 33,800 32,930

33,800 32,930

Note 20. Subsequent Events

On 13 August 2015, the Premier announced a new entity, Visit Victoria. Visit Victoria will bring Tourism Victoria and Victorian Major Events Company Limited together with new Conventions and Regional Tourism Divisions. The Investment Attraction and part of the Strategy and Policy areas previously with Tourism Victoria will transfer to the Department of Economic Development, Jobs, Transport and Resources. Visit Victoria will operate at arm’s length from the Government as a company limited by guarantee, and is expected to become fully operational during 2016. Mr Leigh Harry concluded his role as Chief Executive Officer of Tourism Victoria on Friday 14 August 2015 and subsequently resigned his position as a director of the Victorian Major Events Company on the same day.

Although the changes to Tourism Victoria has no impact on Tourism Victoria’s ability to discharge its liabilities as and when they fall due, management have assessed that there are material uncertainties that Tourism Victoria will still be operating in 12 months which casts doubt that it is a going concern in accordance with AASB101 Presentation of Financial Statements.



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Note 21. Glossary of terms and style conventions

Administration ChargesAdministration represents the operating costs of Tourism Victoria such as rent, telephone charges, audit fees, computer expenses, motor vehicles running costs, travel expenses and training and development.

BorrowingsBorrowings refers to finance leases and other interest-bearing arrangements, including non-interest-bearing advances from government that is acquired for policy purposes.

Comprehensive resultThe net result of all items of income and expense recognised for the period. It is the aggregate of operating result and other comprehensive income.

Capital asset chargeThe capital asset charge represents the opportunity cost of capital invested in the non financial physical assets used in the provision of outputs.

CommitmentsCommitments include those operating, capital and other outsourcing commitments arising from non cancellable contractual or statutory sources, and inclusive of the goods and services tax (GST) payable.

Current grantsAmounts payable or receivable for current purposes for which no economic benefits of equal value are receivable or payable in return.

DepreciationDepreciation is an expense that arises from the consumption through wear or time of a produced physical asset or intangible asset. This expense is classified as a ‘transaction’ and so reduces the ‘net result from transaction’.

Employee expensesEmployee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments, defined benefits superannuation plans, and defined contribution superannuation plans.

Ex gratia expensesEx gratia expenses mean the voluntary payment of money or other non monetary benefit (e.g. a write off) that is not made either to acquire goods, services or other benefits for the entity or to meet a legal liability, or to settle or resolve a possible legal liability or claim against the entity.

Finance costsIncludes finance lease interest on Vic Fleet vehicle lease and finance expense and fees.

Financial assetA financial asset is any asset that is:

(a) cash;

(b) a contractual or statutory right:

• to receive cash or another financial asset from another entity; or

• to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or

(c) a contract that will or may be settled in the entity’s own equity instruments and is:

• a non derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or

• a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.

Financial instrumentA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a result of statutory requirements imposed by governments) are not financial instruments.

Financial liabilityA financial liability is any liability that is:

(a) A contractual obligation:

(i) To deliver cash or another financial asset to another entity; or

(ii) To exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or

(b) A contract that will or may be settled in the entity’s own equity instruments and is:

(i) A non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or

(ii) A derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.

Financial statementsA complete set of financial statements comprises:

(a) balance sheet as at the end of the period;

(b) comprehensive operating statement for the period;

(c) a statement of changes in equity for the period;

(d) cash flow statement for the period;

(e) notes, comprising a summary of significant accounting policies and other explanatory information;

(f) comparative information in respect of the preceding period as specified in paragraphs 38 of AASB 101 Presentation of Financial Statements; and

(g) a statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements in accordance with paragraphs 41 of AASB 101.

Grants and other payments

Transactions in which one unit provides goods, services, assets (or extinguishes a liability) to another unit without receiving approximately equal value in return. Grants can either be operating or capital in nature.

While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non reciprocal transfers. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes.

Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.

Interest expenseCosts incurred in connection with interest component of finance leases repayments, and the increase in financial liabilities and non employee provisions due to the unwinding of discounts to reflect the passage of time.

Financial Report

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Note 21. Glossary of terms and style conventions (continued)

Interest incomeInterest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and other investments.

Net resultNet result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other economic flows – other comprehensive income’.

Net result from transactions/net operating balanceNet result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies.

Net worthAssets less liabilities, which is an economic measure of wealth.

Non financial assetsNon financial assets are all assets that are not ‘financial assets’. It includes inventories, land, buildings, infrastructure, road networks, land under roads, plant and equipment and intangible assets.

Other economic flows included in net resultOther economic flows included in net result are changes in the volume or value of an asset or liability that do not result from transactions. It includes:

• gains and losses from disposals, revaluations and impairments of non financial physical and intangible assets; and

• fair value changes of financial instruments.

Payables Includes accounts payable, grants, taxes and interest payable.

Produced assetsProduced assets include buildings, plant and equipment, inventories, cultivated assets and certain intangible assets. Intangible produced assets may include computer software, motion picture films, and research and development costs (which does not include the start up costs associated with capital projects).

ReceivablesIncludes amounts owing from government through appropriation receivable, short and long term trade credit and accounts receivable, accrued investment income, grants, taxes and interest receivable.

Supplies and servicesSupplies and services generally represent cost of goods sold and the day to day running costs, including maintenance costs, incurred in the normal operations of Tourism Victoria.

TransactionsTransactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows within an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset. Taxation is regarded as mutually agreed interactions between the government and taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for nominal consideration) or where the final consideration is cash. In simple terms, transactions arise from the policy decisions of the government.

Style conventionsFigures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage variations in all tables are based on the underlying unrounded amounts.

The notation used in the tables is as follows:

.. zero, or rounded to zero(xxx.x) negative numbers200x year period200x-0x year period

The financial statements and notes are presented based on the illustration for a government department in the 2013-14 Model Report for Victorian Government Departments The presentation of other disclosures is generally consistent with the other disclosures made in earlier publications of the Department’s annual reports.

65

7 October 2015.

Officer’s Declaration

We certify that the attached financial statements for Tourism Victoria have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2015 and financial position of Tourism Victoria as at 30 June 2015.

We are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

We authorise the attached financial statements for issue on 7 October 2015.


Tourism Victoria

Melbourne 7 October 2015

Nick FoaChief Executive

Tourism Victoria


Jim StrilakosActing Chief Finance Officer


tourism.vic.gov.au Tel (03) 9653 9777 Fax (03) 9653 9722

Financial Report

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67

Financial Report

68

The Annual Report of the Tourism Victoria is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Institute’s compliance with statutory disclosure requirements.

Legislation Requirement

Ministerial Directions

Report of OperationsCharter & purposeFRD 22C Manner of establishment and the relevant MinistersFRD 22C Objectives, functions, powers and dutiesFRD 22C Nature and range of services provided

Management & structure

FRD 22C Organisational structure

Financial and other information

FRD 22C Operational & budgetary objectives and performance against objectivesFRD 22C Employment and conduct principlesFRD 22C Occupational health and safetyFRD 29 Workforce Data disclosuresFRD 15B Executive officer disclosuresFRD 22C Summary of the financial results for the yearFRD 22C Significant changes in financial position during the yearFRD 22C Major changes or factors affecting performanceFRD 22C Subsequent eventsFRD 22C Application and operation of Freedom of Information Act 1982FRD 22C Compliance with building and maintenance provisions of Building Act 1993FRD 22C Statement on National Competition PolicyFRD 22C Application and operation of the Whistleblowers Protection Act 2001FRD 22D Standard Disclosures in the Report of OperationsFRD 25 Victorian Industry Participation Policy disclosuresFRD 22C Details of consultancies over $10,000FRD 22C Details of consultancies under $10,000FRD 12A Disclosure of major contractsFRD 24B Reporting of office-based environmental impactsFRD 22C Statement of availability of other informationFRD 10 Disclosure indexFRD 8A Budget Portfolio OutcomesFRD 120I Accounting and Reporting Pronouncements applicable to the 2014-15 reporting periodFRD 119A Transfers through Contributed capitalFRD103E Non-Financial Physical Assets

Financial statementsFinancial statements required under Part 7 of the FMASD 4.2(b) Operating StatementSD 4.2(b) Balance SheetSD 4.2(a) Statement of Changes in EquitySD 4.2(b) Cash Flow Statement

Other disclosures in notes to the financial statementsFRD 13 Disclosure of parliamentary appropriationsFRD 9A Departmental disclosure of administered assets and liabilitiesFRD 11 Disclosure of ex-gratia paymentsFRD 21B Responsible person and executive officer disclosures

Legislation

Freedom of Information Act 1982 Building Act 1983 Whistleblowers Protection Act 2001 Victorian Industry Participation Policy Act 2003 Financial Management Act 1994 Audit Act 1994

Disclosure Index

Tourism Victoria Contacts

Melbourne (Head Office)Tourism VictoriaLevel 32, 121 Exhibition StMelbourne VIC 3000

GPO Box 2219TMelbourne VIC 3001Tel +61 3 9653 9777Fax +61 3 9653 9722

visitvictoria.comvisitmelbourne.comvisionsofvictoria.comtourism.vic.gov.autourvic@tourism.vic.gov.au

People’s Republic of China ShanghaiVictoria Trade and Investment OfficeSuite 620, Shanghai Centre1376 Nanjing West Road Shanghai 200040 P.R. China

Tel +86 21 6279 8681

Ms Li WeiRegional Manager – Greater [email protected]

GuangzhouTourism VictoriaRoom 1328, 13/F, Teem Tower208 Tian He Road, Tien He DistrictGuangzhou, 510000 P.R. China

Tel +86 20 2826 1900

Ms Bella Ruan Xiaohui Marketing Manager – Southern China & Hong Kong [email protected]

Japan Marunouchi Trust Tower North 12F1-8-1 Marunouchi Chiyoda-kuTokyo 100-0005 Japan(Located with Tourism Australia)

Tel + 81 3 5218 2565

Ms Kyoko KanehiraMarketing Representative – [email protected]

SingaporeTourism Victoria101 Thomson Road#08-01 United SquareSingapore 307591

Tel +65 6255 6888

Ms Celia HoRegional Manager – South & South East [email protected]

Koreac/o Good PR & Marketing Co.,Ltd.Suite 604, Sina Bldg, 39–1Seosomun-dong, Jung-gu,Seoul 100-752, Korea

Tel +82 2 752 4138

Ms Chae-Hee HanMarketing Representative – [email protected]

New ZealandTourism VictoriaLevel 3, 125 The StrandParnellAuckland, New ZealandPO Box 1666Auckland, New Zealand

Tel +6428 001 890

Ms Joanna GarrieRegional Manager – New [email protected]

North AmericaTourism Victoria2029 Century Park East, Suite 3150Los Angeles CA 90067 USAMailbox 358

Tel +1 310 695 3245

Ms Susan BrownRegional Manager – North [email protected]

EuropeTourism VictoriaNeue Mainzer Str 2260311 Frankfurt, Germany

Tel + 49 69 2740 0677

Ms Susanne StellbergMarketing Manager – Germany, Switzerland, [email protected]

United Kingdom/Ireland/Nordic CountriesTourism VictoriaSixth Floor, Australia Centre, Melbourne PlaceStrand, London WC2B 4LG, United Kingdom

Tel +44 207 438 4645

Ms Claire GoldingRegional Manager – United Kingdom / [email protected]

Indiac/o Beautiful Planet 52 Grants Building Annexure Next to Strand CinemaColaba Mumbai 400 005, India

Tel +9122 3296 1624

Ms Beena MenonMarketing Representative – [email protected]

Cover: 300gsm Revive Laser is 70% Recycled, and Certified Carbon Neutral by the DCC&EE under the National Carbon Offset Standard (NCOS), Revive Laser also supports Landcare Australia. Made in Australia by an ISO 14001 certified mill. No chlorine bleaching occurs in the recycling process.

Text: 140gsm Revive Laser is 100% Recycled, and Certified Carbon Neutral by the DCC&EE under the National Carbon Offset Standard (NCOS), Revive Laser also supports Landcare Australia. Made in Australia by an ISO 14001 certified mill. No chlorine bleaching occurs in the recycling process.

Published by Tourism Victoria, Melbourne, Victoria September 2015.This report is also available online at tourism.vic.gov.auCopyright State of Victoria 2015.This publication is copyright. No part may be reproduced by any process, except in accordance with the provisions of the Copyright Act 1968.

Authorised by the Victorian GovernmentTourism VictoriaLevel 32, 121 Exhibition StreetMelbourne VIC 3000

Contact: Corporate CommunicationsTel (03) 9653 9777

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