Product Development

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Victoria - The place to be

5.3 Secondary Product Segments

The secondary market segments offer significant potential growth for Victoria, but generally require strategic marketing with attention to product development. The secondary product strengths are:

  • Education
  • Built attractions
  • Gay and lesbian
  • Cruise shipping
  • Aboriginal

Education

Objectives

  • Achieve a consistent brand for Melbourne as an education destination.
  • Maximise Visiting Friends and Relatives (VFR) travel and repeat visitation of past students.
  • Leverage Victoria's multiculturalism to encourage growth in the international education market.

Background

The economic impact of international students in Australia was estimated at $3.7 billion for 2000. With Victoria, New South Wales and Queensland being the Australian destinations of choice for more than 80% of international students, the value of this segment to Victoria is clear. The international student market includes school education, vocational and higher education sectors, as well as English Language Intensive Courses for Overseas Students (ELICOS).

In recent years there has been a diversification of the international education market as more education providers capitalise on offshore opportunities. Offshore enrolments made up almost 35,000 students in 2000, out of a total 188,000 international students.

It is likely that international student numbers will continue to grow steadily as the market recovers from the Asian crisis. Historically, Asia has been the key source of international students to Victoria, however a growing number are now being attracted from South America and Europe. While Singapore, Hong Kong and Indonesia still dominate tertiary enrolments, steady growth has occurred from China, Thailand, South Korea, Malaysia, Colombia, Norway, Bangladesh, India, the Czech and Slovak Republics and Brazil. The Victorian International Director's Committee has been established to help position Victoria in the international education market, and to encourage cohesion between education providers. The Committee is comprised of the Directors of Victorian universities.

The school education sector is currently Victoria's major source of international students, being the primary destination of choice in this segment. China is an increasingly crucial market in the school education sector due to its profile as the major source country for enrolments. However, the highest yielding segment is the tertiary sector, with Victoria also benefiting from associated VFR travel. Victorian universities continue to play the primary role of marketing to international students in the tertiary sector.

Issues

Australia's international education market is becoming increasingly diversified, with representation from countries other than traditional Asian markets.

Australian Capital Territory, Northern Territory and Queensland experienced the highest growth in student numbers between 1999 and 2000. While New South Wales and Victoria continue to lead other states, the market is becoming increasingly competitive.

Strategies

  • Tourism Victoria will collaborate with educational organisations to ensure Melbourne achieves a consistent brand as an education destination in all targeted source markets.
  • Develop co-operative partnerships to ensure appropriate promotional material is distributed in market to enhance the quality of experience of students, optimising alumni and VFR visitation.
  • Establish an ambassador program that will help develop the alliance between the education market and tourism.

Overseas student numbers 1994-2000:
The graph below indicates a marked increase since 1994 in the number of international students studying either in Australia or with Australian providers overseas. Offshore enrolments have strengthened as a proportion of total student numbers, with growth of 18% in 2000 to 34,905 students.

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Built Attractions

Objectives

  • Achieve ongoing commitment to maintaining and upgrading existing attractions to encourage repeat visitation.
  • Attract infrastructure investment for new attractions.
  • Increase awareness of and visitation to Victoria's built attractions.

Background

Built attractions are effective tourism motivators that have the potential to raise the quality of visitor experience and increase length of stay. Awareness and exposure of a destination is highlighted by the existence of quality attractions and can lead to repeat visitation. However, it is crucial that investment in new development and upgrading existing infrastructure is applied to offer new and varied experiences to consumers.

The Victorian Tourism Operators Association (VTOA) facilitates an Attractions Group, which represents industry stakeholders who are members of VTOA. The group coordinates cooperative research on visitor statistics and marketing initiatives such as Victoria's Great Attractions map.

Issues

Attractions are key drivers and motivators for travel but they require substantial ongoing investment in maintenance and upgrading.

There is a lack of diverse built attractions in regional Victoria, with the most obvious requirement being infrastructure that caters for the family market.

Strategies

  • Profile major built attractions to increase awareness of Melbourne and regional Victoria, with particular emphasis on the intrastate market.
  • Support the VTOA Attractions Group and encourage cooperative partnerships and marketing between attractions, both thematic and geographic.
  • Continue to develop the Melbourne Attractions Pass through strategic alliances between attractions and the travel trade.
  • Retain the Melbourne seasonal campaign coupons for interstate visitors as an incentive to visit attractions.
  • Encourage and support the continual upgrade and enhancement of built attractions.

More information on Victoria's built attractions can be found in the Investment Attraction section of this plan.

Gay and Lesbian

Objectives

  • Raise the profile of Melbourne and increase awareness of regional Victoria in the gay and lesbian market.
  • Educate industry on the specific product and travel needs of the gay and lesbian market.

Background

The gay and lesbian market is recognised as one of the highest yielding tourism segments. Gay and lesbian people have a great propensity for travel and the yield generated per visit is high compared to other travellers. Melbourne in particular, is perceived as a desirable destination, with gay-friendly accommodation, venues and events such as the Midsumma Festival encouraging interstate visitation.

In November 2002, Sydney will host the International Gay Games, which offers the opportunity to heavily promote Melbourne and Victoria to this market and to increase awareness and conversion in the long term. The Gay Games is expected to attract more competitors than the Olympics, joined by a significant number of partners and other visitors. Tourism Victoria has been working with the Gay Games organisers and registered tour operators to promote pre and post touring to Victoria. Melbourne has been successful in securing the International Gay and Lesbian Travel Association Symposium in October prior to the Gay Games. This industry event will assist in raising the profile of Melbourne and Victoria as a gay-friendly destination.

Issues

Effort must be made to ensure effective targeting and promotion to gay and lesbian international visitors.

There is existing strong awareness and appeal of Sydney and Queensland as destinations, and Victoria must identify opportunities to benefit the State by leveraging the International Gay Games 2002 in Sydney.

Strategies

  • Integrate gay and lesbian market opportunities in appropriate regional, national and international (North America, UK/ Europe) marketing programs.
  • Maximise marketing opportunities associated with the International Gay Games and International Gay and Lesbian Travel Association Symposium and develop pre and post Games touring opportunities.

Cruise Shipping

Objectives

  • Effectively promote Melbourne as a world class cruise destination.
  • Continue the development of new and existing tourism product with the aim of increasing quality of visitor experience.
  • Increase economic benefit to the State by promoting other destinations within Victoria.

Background

With saturation of traditional cruise markets, such as the Caribbean and North America, the cruise industry is looking to new destinations for development and expansion. The economic impact of cruise shipping is estimated to be worth an average of $1 million to the local economy, per visit. Victoria is well placed to capitalise on the growth of this market with the cruise season coinciding with summer in Victoria, when Melbourne is alive with activity and events.

Issues

With intense competition from other ports in the South Pacific, which have more predictable climates and aesthetic advantages, this segment needs a planned and coordinated approach with ongoing product development and communication.

There is a need to address the arrival experience at Station Pier.

Strategies

  • Build on industry partnerships and alliances, including Tourism Victoria and the Department of Infrastructure to cooperatively structure incentive packages.
  • Develop marketing initiatives specifically targeted at cruise line operators to ensure Melbourne and Victoria remain an integral part of cruise ship itineraries.
  • Implement an integrated communications strategy that targets cruise lines not currently scheduled to visit Victoria.
  • Implement programs to maximise visitor satisfaction including continuing meet and greet services and mechanisms to evaluate the satisfaction of services offered to passengers and crew while in Melbourne.

Further details are available in The Victorian Cruise Ship Strategy.

Aboriginal

Objectives

  • Increase awareness of Victoria's Aboriginal heritage and culture.
  • Develop and distribute Aboriginal tourism experiences.
  • Support development of cooperative marketing initiatives.

Background

Aboriginal tourism appeals to Victoria's domestic target markets of Socially Aware and Traditional Family Life, and international visitors who seek quality experiences of nature and culture. The North American and European markets show particular interest in Aboriginal tourism and authenticity and the opportunity to meet indigenous Australians is highly valued.

Aboriginal tourism in Victoria is developing, as more businesses and experiences become tourism ready and consumers expand their expectations of an Aboriginal tourism experience beyond traditional art and craft to walking tours, music and festivals. The establishment of Aboriginal tourism experiences in Melbourne (eg. Bunjilaka and Melbourne Museum) has increased awareness of Victoria's Aboriginal culture, by attracting visitors who are not planning to travel in regional Victoria.

Issues

There has been a lack of cohesion and mentoring within Victoria's Aboriginal tourism industry and insufficient businesses ready for promotion through the travel industry, particularly at the international level.

There is low awareness of Victoria's Aboriginal tourism experiences and strong competition from other states.

Strategies

  • Support the development of an umbrella Aboriginal tourism association linked with Aboriginal Tourism Australia Inc, Victorian Tourism Operators Association and the Aboriginal Tourism Marketing Association.
  • Develop ongoing liaison between relevant industry and government organisations, to ensure coordinated policy and program delivery.
  • Nurture the development of trade and export ready Aboriginal tourism experiences.
  • Ensure that regional, national and international programs incorporate appropriate messaging of Aboriginal heritage and culture.
  • Review Victoria's Aboriginal Tourism Plan including development of cooperative marketing and business development opportunities.
    Further details are available in Tourism Victoria's Aboriginal Tourism Plan.


   








Addendum - October 2004

Addendum - October 2003