Special Shoalhaven Tourism Advisory Group



Meeting Date:     Monday, 25 September, 2017

Location:            Jervis Bay Rooms, City Administrative Centre, Bridge Road, Nowra

Time:                   5.00 pm



Please note: Council’s Code of Meeting Practice permits the electronic recording and broadcast of the proceedings of meetings of the Council which are open to the public. Your attendance at this meeting is taken as consent to the possibility that your image and/or voice may be recorded and broadcast to the public.





1.    Apologies

2.    Reports

TA17.45....... International Marketing Analysis.................................................................... 1                         

3.    General Business

TA17.46....... Presentation by Matt Cross - Discover Jervis Bay - International Marketing Plan for next 12 months

In accordance with the Minutes of the Shoalhaven Tourism Advisory Group Meeting held on 28 August, 2017, Matt Cross from Discover Jervis Bay to be invited to address the extra ordinary meeting to present his international marketing plan for the next 12 months


 Special Shoalhaven Tourism Advisory Group – Monday 25 September 2017

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Ms Lynn Locke - Chairperson

Clr Findley – Mayor

All Councillors (Clr Alldrick & Gash – voting delegates – Clr Pakes & Kitchener – alternate voting delegates)

Mr David Goodman

Ms Annie Cochrane

Mr Matthew Forbes

Ms Catherine Shields

Ms Jo Thomas

Ms Louise Hallum

Mr Paul McLeod

Mr Rob Crow

Mr Neil Rodgers

Mr Mark Lees/Mr David Duffy – NSW National Parks & Wildlife Service representative


Quorum – 7


Purpose and delegated authority

·           Inform the development, implementation and review of council priorities from the Shoalhaven Tourism Master Plan and councils corporate plan

·           Represent the tourism industry and advise and make recommendations to Council on matters relating to tourism, the development of tourism and the future of tourism in the Shoalhaven.

·           Promote the direct and in-direct value and benefits of tourism within the Shoalhaven and on a regional, state and national basis.

·           Make recommendation on the expenditure of the annual Shoalhaven marketing budget as provided by Council.

·           Appoint suitable representatives to fill casual vacancies

·           Inform and recommend policy for tourism related funding programs, and where required by Council, vote on related matters.






 Special Shoalhaven Tourism Advisory Group – Monday 25 September 2017

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TA17.45     International Marketing Analysis


HPERM Ref:       D17/308283


Group:                Finance Corporate & Community Services Group 

Section:              Tourism


Attachments:     1. Quarterly update June 2017 - PUBLIC VERSION

2. Confidential Annual Report (Confidential - under separate cover)  

3. Confidential Contract (Confidential - under separate cover)  

4. Research - Trade and Consumer Sediment and the potential of the Chinese Market (Confidential - under separate cover)  

5. Shoalhaven Travel Experience Research - Travel Reviews - Social Listening (Confidential - under separate cover)  

6. 17/18 Partnership Proposal (Confidential - under separate cover)  




Purpose / Summary

International Marketing Program for 2017/2018


Recommendation (Item to be determined under delegated authority)

That the Shoalhaven Tourism Advisory Group

1.    Commit to 6 months of international marketing with current partner and;

2.    Form a working group to further investigate international marketing opportunities and report back to STAG by the end of 2017 on an appropriate international marketing strategy for 2018 and beyond.




1.    Commit to 6 months of international marketing with current partner, and, form a working group to further investigate international marketing opportunities and return to STAG with recommendations on strategy for 2018 and beyond. 

Implications: Continue in market whilst compiling research and a more in-depth market review, potentially diversify international marketing strategy.  Potential to test the market with quotes from other international marketing companies.


2.    Leave as is with current international marketing business partner for the next 12 months.

Implications: The existing partner has performed very well to date.  However International marketing is a critical growth area and an examination of opportunities should be considered. Not recommended.


3.    Do not continue with current partnership and create a new international marketing strategy.

Implications: Diversify international marketing strategy, resourcing is a consideration long term. A review will take time and there will be a period when the region is not being promoted, risk losing traction in a growing market, not recommended.


Background – Current Business Partner relationship

Asia marketing with current business partner

-     Shoalhaven Tourism has been working with the one international marketing business partner for several years. This partner promotes the region into primarily Asian countries as ‘Jervis Bay’.

-     Markets serviced by our partner are China, Korea, Singapore, Malaysia, Indonesia, Vietnam, Taiwan, Hong Kong, Indonesia, India.

-     Investment primarily markets up to 40 Shoalhaven products (Mainly Jervis Bay and North) to wholesalers and agencies in international offices and at trade shows.

-     The typical traveller has pre-booked a package and is coming to the Shoalhaven ex Sydney for 1-2days maximum. They experience a few products and then return.

-     Packages are booked through international agents who take commissions and our business partnership services those agency relationships to continue getting bookings.

-     An international bi-lingual website is maintained (inspirational, no booking platform)


Recent Results - Financial year 2016/7


Attachment 1 – Public quarterly partners report

Attachment 2 - CONFIDENTIAL, Commercial in Confidence – Annual wrap up report


·    Built strong relationships with wholesalers

·    Local business, happy to assist in advocacy across the whole region for international tourism

·    Good for awareness and potential return higher yield trips as FIT

·    Represents 40 products in region to several Asian markets

·    Asian market is growing but off a very low base so figures are still small

·    Forecasts are for the Asia market to boom



·    Low yield and day trip market from Sydney – product is highly discounted

·    Low visitor nights’ return (average stay is 1.26 nights)

·    Need more cheap hotels to continue growing this market and many nights re currently places out of the Shoalhaven

·    Difficult to get return on investment figures for FIT efforts.

·    Asia is a highly volatile market which requires a high level of active maintenance to grow.


2016 review and research

In 2016, Council undertook a review of consumer sediment and market potential in the Chinese market. This report involved desktop research, interviews with key stakeholders, an audit of consumer sediment and recommendations on future opportunities.  

Attachment 4 for the full report

Attachment 5 for a summary of consumer sediment, travel reviews.


Current Situation

Our current business partner has approached Shoalhaven Tourism to partner for another 12 months, with contract deliverables reasonably similar to last year and a decision needs to be made about plans for the next 12 months.

Attachment 3 - CONFIDENTIAL, Commercial in Confidence – last year’s contract

Attachment 6 – CONFIDENTIAL, 2017/18 Partnership Proposal


Trends and Research

Marketing Trends – International [excerpt from DMP]

For the OVERSEAS MARKET, the Shoalhaven represents the quintessential “Aussie experience” – pristine beaches, natural wonders, aboriginal cultural experiences, iconic Australian wildlife and a fast-growing food and wine scene that has achieved recognition both nationally and internationally. The proximity to Sydney and the growing international focus of Canberra provides an opportunity as key market segments package regional visits with the Aussie City “must Do’s”. There is also an increasing tendency of the international ‘millennial generation’ more likely to travel by themselves outside capital cities than their parents, who often preferred traditional tours. 

Traditional Markets

European, UK, USA, New Zealand markets have been drawn to Australia for many years due to a cultural and VFR connection as well as traditional marketing such as TV ads in the 90s. Most are still growing with barely any maintenance and together hold a large share of the market.

Emerging Markets

There has been a recent push and investment into the Asia market which shows high potential for the future and high growth.  Research also indicates high forecast growth in Independent travellers from China, Korea and in the longer term, India. 

Types of travellers

Markets must either be FIT (Free Independent Travellers) or come on organised bus tours (often day trips from Sydney). Bus tourists are relatively low yield but may come back again as FIT (Asia market). FIT can come for anywhere between 2 and 30 nights so more analysis should be done into these higher yield markets. The business market is a potential high yield market from Sydney and Canberra if product development can meet demand potential.

International Visitor Survey results 2015/6

Our research consultant utilised Tourism Research Australia results from 2015/6 to ascertain the visitors, visitor nights (and therefore yield) and the growth on previous biannual period.


Key insights:

-     Traditional markets are still our largest visitor groups

-     Traditional markets stay longer and therefore spend more

-     Asia markets have strong growth but off low bases

-     Current Asia market stay for very short periods of time in region




International Product Analysis

Based on this same International Visitors Survey as above, we have created a growth-share matrix, also known as a product portfolio mix. This business model helps us to identify opportunities and analyse the businesses opportunities. Based on market size and growth, the following matrix has been collated.


Key insights:

-     All of our international funds are placed in high risk markets with high growth (traditionally called ‘question marks’)

-     Traditional markets make up the most favourable for growth and market share but we don’t invest anything into maintaining these markets. (traditionally called ‘stars’)

-     Overall we invest all of our international our marketing funds into high risk markets and don’t market at all to our ‘established and growing stars’.


Risky with high potential

(low market share and high growth)


•     Korea (191% growth, 4K/yr.)

•     India (300% growth, 2K/yr.)

•     Indonesia (536% growth, 2K/yr.)

•     Hong Kong (354% growth, 7K/yr.)

•     China (354% growth, 6.2K/yr.)

•     Malaysia (36% growth, 3.3K/yr.)

Established and growing

(High market share and high growth)


•     New Zealand (52% growth, 35K/yr.)

•     Canada (150% growth, 20K/yr.)

•     United Kingdom (19% growth, 63K/yr.)

•     Scandinavia (71% growth, 12K/yr.)

•     France (51% growth, 14K/yr.)

Not likely to profit

(low market share and low growth)


•     Italy (30% decrease, 3k/yr.)

•     Japan (40% decrease, 3k/yr.)

•     Netherlands (18% decrease, 7K/yr.)

•     Switzerland (65% decrease, 1.3K/yr.)

Established but in downturn

(high market share and low growth)


•     USA (0% growth, 28K/yr.)

•     Germany (-13% decrease, 20K/yr.)





















Future thinking        

International Marketing Opportunities:

-     New flights to Canberra International Airport provide a new Singapore-Canberra-Wellington flight route, just 2 hours from the Shoalhaven.

-     The new Badgery’s Creek airport will provide a closer connection to International travellers and will be open by 2030.

-     China is one of the largest inbound markets to Sydney but the vast majority don’t travel regionally.

-     The Western Sydney market makes up 10% of Australia’s population and the diversity of these communities is broad and vast, offering access to an international VFR market.

-     Our largest opportunity remains international travellers ex Sydney and Grand Pacific Drive is marketed internationally.

-     The Sydney – Melbourne Touring Route is currently marketed to an international FIT drive market and we are a participant but at a very low investment level.

-     The Capital to Coast touring route markets internationally and Visit Canberra, Sapphire Coast and Eurobodalla invest well. We currently do not.

-     There is also a growing number of agencies that can be contracted for international marketing and social media marketing.



There are many international marketing opportunities available to the Shoalhaven, so many more than several years ago when the channels for direct marketing such as online, didn’t exist. There is also cultural move toward FIT travellers in Australia with a new more adventurous generation that can feel confident researching and planning their own trips online. These FIT travellers are higher yield than the bus day-trippers or overnighters and have less impact on the capacity of our small towns.


In short, the marketing team recommend an investment of some time in a complete review of the international marketing opportunities available and what new ideas for international markets currently not utilised by Shoalhaven Tourism could be uncovered.  A review considering the new Sustainable Tourism Model outcomes could be timely considering potential additional measures of success. 





 Special Shoalhaven Tourism Advisory Group – Monday 25 September 2017

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