The Western Australian tourism industry by youmustknowme


									                        The Western Australian tourism industry
Western Australia is currently enjoying a once-in-a-generation economic boom and to ensure that the
State’s economy can continue to reap the benefits into the future, the Government is investing a record $5.8
billion on infrastructure in 2007-08, and $21.6 billion ($US18.2 billion, €13.5 billion; as at 29/06-2007)
over the next four years.

Some of these include Perth Arena ($335 million), the Australian Marine Complex Upgrade ($174 million),
a new Performing Arts Centre ($66 million), the Albany Entertainment Centre ($49 million).

Confidence in Western Australia’s tourism industry is strong, with some $1.2 billion in tourism
development and infrastructure improvements planned around the State in the next few years. Its
share of national tourism increased from 8.5% to 9.6% indicating that WA is becoming a bigger
player in the national tourism industry.

Western Australia attracts over 625,000 international visitors and over 1 million interstate visitors
each year and has a significant intrastate tourism market. Combined, these three tourism markets
spend over $4 billion within the State. The largest tourism market is intrastate travellers,
representing around 75% of the State’s tourism activity. The interstate tourism market is also
significant, providing around 15% of Western Australia’s visitors.

International visitors to Western Australia are mainly from the United Kingdom, Singapore, New
Zealand, Japan and Malaysia. The international market continues to grow for Western Australia
and its proximity to Asian markets gives a key advantage over other Australian States.

The combined direct and indirect contribution of tourism to Western Australia’s GSP was $5.7
billion (4.7% of total Western Australia’s GSP) and a further $3 billion to other industries through
accommodation, cafes and restaurants, transport etc.

Major events are supported through Tourism Western Australia’s EventsCorp Division, which
generates millions of dollars each year through leveraging major sporting and cultural events in
Perth and regional Western Australia.

The Perth Convention and Exhibition Centre has secured more than 450 international, national
and local events through until 2009 (up to two million visitors). In June 2008, Perth will host the
prestigious Australian Tourism Exchange (ATE) expected to attract around 2,500 attendees.

Tourism is an important source of employment. The combined direct and indirect contribution of
tourism accounted for employment of 63,000 Western Australians (6.0% of total state

The Australian Tourism Forecasting Committee predicts an average annual growth rate of
international visitors to Australia of around 5.6% per year for the next 10 years, which is above
the global tourism predicted growth rate of 4% per year. The United Kingdom is expected to be
Western Australia’s first international market to exceed 200,000 annual visitors, a milestone that
will probably be achieved in 2011.
                                Western Australia: The facts

Capital city: Perth

Area size: WA spans over 2,525,000 sq km (1 million sq miles). The state is bordered largely by
desert to the east, and by 12,500 km (7,813 miles) of the world's most pristine coastline to the

Population: 2 million across Western Australia, of which 1.38 million live in Perth.

Climate: The state’s large size means that Western Australia extends into different climatic zones
simultaneously. From arid tropical in the northern Kimberley region to cool temperate zones in the
south - when it is warm and dry in the north of the state it is cool and wet in the southern areas.
Perth has a Mediterranean climate with long hot summers (December – February) and mild cool
winters (June – August). Perth has more hours of sunshine than any other Australian capital city!

Temperatures: Temperatures vary greatly through out the state’s regions. Perth’s average
summer temperatures are 17ºC (minimum) to 30ºC (maximum) and winter averages range from
8ºC (minimum) to 19ºC (maximum).

Rainfall: Perth’s average summer rainfall is 12 mm per month, while in winter the average is 162
mm per month.

Standard time: WA operates on Australian Western Standard time (WST) which is GMT + 8
hours. WA is two hours behind eastern Australia – New South Wales, Victoria and Queensland
(EST) and 1½ hours behind the Central States – South Australia and the Northern Territory
(CST). During summer, some Australian states including NSW, Victoria, SA and Tasmania
advance their clocks by one hour for daylight saving.

Banking and general business hours: Banks open Monday to Thursday from 9:30am to 4pm,
and on Fridays from 9:30am to 5pm. Most businesses operate Mondays to Fridays 8:30am to

Currency and foreign exchange: Australian currency is decimal, in units of dollars and cents.
Notes come in denominations of $5, $10, $20, $50 and $100 and coins as 5c, 10c, 20c, 50c, $1
and $2.

Language: English is Australia’s national language. Interpreters are readily available.

Retail: Most shops open from 9am to 5:30pm Monday to Saturday.

International airport: Perth International Airport is 20 minutes by taxi (approximately AUD $20
fare) and 30 minutes by coach from the city centre.
                                 Tourism Western Australia

Tourism Western Australia is a statutory authority primarily located in Perth, with offices in
regional Western Australia, interstate and overseas. It comes under the portfolio of the Western
Australian State Minister for Tourism and is governed by a Board of Commissioners. Tourism
Western Australia has two main areas of responsibility:

 Promoting Western Australia as an attractive holiday, event, convention and incentive travel
 Enhancing the tourism industry, infrastructure and product base.

The divisions of Tourism Western Australia each have a specific role in growing tourism
development and visitation to Western Australia.

The Industry Development and Visitor Servicing Division ensures that appropriate product is
in place for visitors and information services are in place to enhance the experience. This is
achieved by:

   Ensuring the environment is right to attract capital investment and re-investment.
   Facilitating the development of new tourism products and enhancing existing ones.
   Applying technology-led solutions to product and information distribution.
   Providing support for the delivery of high quality visitor information and services.

The Trade and Consumer Marketing Divisions accelerate the growth in the economic value of
tourism throughout Western Australia. Their key functions are to:

     Develop and implement marketing and communication strategies to build awareness and
      desire to visit Western Australia through both the trade and the consumer.
     Increase visitation, yield and dispersal from target markets.
     Provide meaningful and actionable research to guide strategies and actions of the
      Western Australian tourism industry.
     Communicate effectively with industry, government and the people of Western Australia.

EventsCorp makes a significant contribution to Western Australia through event and business
tourism. This is achieved by:

 Identifying and attracting events to Western Australia.
 Supporting and developing events from idea generation to implementation, and where
  appropriate, managing and growing events, particularly in regional areas.
 Leveraging tourism, business and media opportunities through events.
 Maximising business tourism.
                                     Doing Business in WA

The Western Australian Government is confident that the State offers an unrivalled environment
in which business can grow and prosper. With low sovereign risk, pro-development government
policies, a highly skilled and innovative workforce and world-class infrastructure, doing business
in WA is easy and rewarding.

Government assistance
The State Government, through Tourism Western Australia is keen to facilitate inward investment
in the tourism industry and invites investors around the world to evaluate our investment
opportunities and investment climate and work with us on profitable and mutually beneficial

Whenever you are considering an investment in a tourism and hospitality related project in
Western Australia, Tourism WA can assist you by:

    Identifying investment opportunities
    Identifying relevant service providers
    Assisting with the investment and approvals process through local and state government
    Providing comprehensive background information relevant to the investment decision, and
    Reviewing investment proposals and business plans and advising as to their general
    acceptability within the context of the strategic direction of tourism in WA.

A Business Migration Incentive Program is operated by the State Government through the Small
Business Development Corporation. This Program can provide financial assistance for eligible
applicants towards the cost of engaging a consultant to prepare a business proposal to relocate
to regional Western Australia (more than 50 kilometres from Perth). Assistance is available for
sponsorship of Business Visas.

The Commonwealth Government, which is the major taxing authority, solely imposes income tax.
The Commonwealth also receives revenue from indirect taxes: sales tax, customs and excise
duties, fringe benefits tax, as well as taxes levied on natural resources projects such as the
petroleum resources rent. There is a 10 per cent Goods and Services Tax applicable in Australia.

The Government of Western Australia derives most of its revenue from payroll tax, stamp duties,
financial institution duties, debits tax and land tax. Additionally, substantial revenue in this State is
raised through oil and mineral royalties and business franchise fees.

Foreign Investment
Refer to the Foreign Investment Review Board (Summary of Regulations) provided by Tourism
Western Australia.
              Current investment outlook – Accommodation Sector

In the wider Perth market there are 121 hotels and serviced apartments providing a total of
10,475 hotel rooms as at March 2007.

The outlook for the Perth First Class Hotel market is the most prospective than it has been for the
past eight years. At the recent Australian New Zealand Hotel Investment Conference (ANZPHIC)
in Sydney, Perth was voted the capital city most likely to attract a new hotel investment in the
coming 5 years. There are 362 rooms in the pipeline up until 2009 with an established need for
270-300 rooms per year to meet demand and maintain current occupancy levels.

Perth has entered a new development phase, with constrained supply and a buoyant local
economy pushing strong yield growth. The years 05/06 showed the fastest demand growth in
accommodation for 18 years. Yield grew approximately 20% in 06, 19.5% in first quarter 07 with
double digit growth forecast for the next two to three years.

Confidence in the tourism industry as a key economic driver to the State is growing. The future for
the Australian hotel industry continues to looks very bright. Recent forecasts provide a good
indication of the growth opportunities that exist within the tourism sector. As Tourism Australia
embarks on its new partnership deal with Qantas and new services are added to both domestic
and international airline routes, the number of visitors is expected to continue to rise, which
clearly is good news for the hotel industry.

The above, together with recent improvements to air access for the State, are clear indicators that
the industry in Australia and around the world has shifted its focus to include Western Australia as
a major player. Over the medium term, international tourism to the State will increase as airlines
further expand their capacity.

The investment climate varies throughout the State. Parts of the State are booming, including
Broome, Perth and the coastal South West region (Bunbury, Busselton and Margaret River).
Rottnest island, Exmouth and its coastline and Kununurra, have largely unrealised potential.

Future Supply
Tourism WA regularly tracks the number of accommodation projects in WA. As at June 2007
there were around $1.08 billion worth of accommodation projects in planning, $265 million being
constructed and $226 million worth of projects completed. Major additions to the City of Perth
scheduled to open in 07/08 include 83 rooms in Barrack Square, 100 rooms in Sheraton Perth, 90
rooms for Quest Redcliffe.

Construction Costs
Four star construction costs in Perth are approximately $225,000 per room, based on three, four
and five star estimates, including all facilities but excluding land. The land cost would be an
estimated 25% to 30% of the total development cost in Perth city.
                                           Air access

Perth is currently served by 12 international airlines servicing 14 non-stop destinations as well as
daily domestic services to all eastern Australian capitals.

International links

 United Kingdom               Daily one-stop access with major carriers
 Singapore                    Multiple daily non-stop access with Singapore Airlines and Qantas
 Malaysia                     Daily non-stop access
 New Zealand                  Daily non-stop access December to March
                              Five per week April to November
 United States of America     Daily one-stop access
 South Africa                 Non-stop access 5 days per week
 United Arab Emirates         Daily non-stop access
 Germany                      Daily one-stop access
 Netherlands                  Daily one-stop access
 Switzerland                  Daily one-stop access
 France                       Daily one-stop access
 Italy                        Daily one-stop access
 Japan                        Tokyo non stop access three days per week, daily one-stop
                              Osaka & Nagoya daily one-stop access
 Hong Kong                    Daily non-stop access
 Thailand                     Four per week non-stop access
 Indonesia                    Bali multiple daily access
                              Jakarta three per week non-stop access

Perth Airport had just eight million International and Domestic passengers moving through its
terminals in the last financial year 2006/07 representing 13.4% growth breaking the previous
figure by an impressive 954,637 people.

The 13% increase can be attributed to a combination of new airlines, increased services,
improved terminal facilities and the continuing growth in the WA resources sector and compares
extremely favourably with other major Australian airports with Sydney Airport recording
passenger increases of 5%, Brisbane 9% and Melbourne 6%.

Travel in and out of the State has also been boosted by increased services and new airlines,
such as OzJet and low-cost entrant Tiger Airways, which provide more options for price
conscious travellers.

Domestic arrivals grew from 5,107,657 in 05/06 to 5,868,219 in 06/07 (14.8%) and international
arrivals grew from 2,027,223 in 05/06 to 2,221,298 in 06/07 (9.57%).

Landbank ensures that there is adequate supply of tourism development sites to meet the future
needs of the tourism industry in Western Australia.

The aim of the Landbank initiative is to make identified tourism sites ‘investor ready’ by
streamlining the approvals processes required for tourism development to occur. Landbank sites
in Perth, the Pilbara and the Coral Coast have been released since its creation in June 2005.

What Is Landbank?
The Landbank initiative will make it easier for the right developer with the right development
philosophy to invest in tourism accommodation development in this state.

Tourism WA will work with a range of different government agencies and local government
authorities to;
         identify potential tourism development sites across the state
         accelerate the release of investor ready land in strategic locations
         remove up-front uncertainty and reduce the time it takes for developers to commence
         construction on tourism zoned sites
         safeguard the environment by ensuring any developments are in keeping with the
         location’s environmental values and ensure relevant environmental approvals are gained

Landbank is not about cutting corners when developing tourism projects. A variety of feasibility
studies, environmental analysis, planning processes and community consultation will be
conducted before any sites are released for development, and due processes will be followed
before development proposals are approved.

What Is Landbank Hoping To Achieve?
Tourism WA is planning to release 5 sites per year by 2010. The developments will vary from
luxury resorts to caravan parks and wilderness lodges, catering for the accommodation needs of
a range of tourists, while being appropriate for each particular location.

Letters have been sent to all local government authorities in Western Australia encouraging them
to identify suitable tourism development sites and to work with Tourism WA to prepare these
locations for future development.

More Details
For more information on Landbank contact David Etherton, Executive Director, Industry
Development and Visitor Servicing on 9262 1827.

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