Industry, tourism and resources portfolio

OUTCOME 1 — CONTRIBUTION OF OUTPUTS

The ATC promotes Australia internationally as a tourist travel destination. The ATC’s activities are aimed at increasing the number of people who come to Australia; targeting high spending visitors and ensuring that visitors disperse beyond the major gateways of Australia.

The ATC has two outputs, which incorporate the following activities:

1. 
   Consumer Marketing which promotes the strategic development and implementation of Brand Australia. The ATC promotes Brand Australia in a number of innovative ways: television, cinema, print and outdoor advertising, the Internet, media relations, public relations and by hosting international journalists in Australia. The ATC also provides information for travellers in both printed and electronic form.
   
2. 
   Trade Marketing which facilitates the communication of timely, relevant international trade market intelligence to the inbound industry; provides effective opportunities for industry participation in trade events; undertakes product and segment development in conjunction with ATC regions, state and territory tourism organisations, inbound tour operators and the Meetings, Incentives, Conventions and Exhibitions (MICE) industry; and maximises tourism opportunities through the Destination Australia Marketing Alliance and Team Australia activities.
   

The ATC has a statutory requirement to promote the principles of ecologically sustainable development and seek to raise awareness of the social and cultural impacts of international tourism in Australia. These activities are integrated into both of the Consumer Marketing and Trade Marketing outputs. The ATC works with government and industry partners on the achievement of this objective. The ATC also undertakes ongoing research into community attitudes to the social, cultural and environmental impacts of international tourism.

The ATC’s outputs of Consumer Marketing and Trade Marketing are therefore interlinked to the outcome:

“The number of visitors to Australia from overseas will increase and the benefits to Australia from overseas visitors will be maximised, including benefits from employment, while promoting the principles of ecologically sustainable development and seeking to raise awareness of the social and cultural impacts of international tourism in Australia.”

PERFORMANCE INFORMATION FOR OUTCOME 1

Table 2.2.1 below provides information on the strategies chosen to deliver the ATC’s outcome, and shows the links between the outputs and the outcome. Achievement of planned performance will be reported in the ATC’s 2004-05 Annual Report.

Table 2.2.1: Performance information for outcome 1

Effectiveness - Overall achievement of the outcome - (Measures, indicators and targets used as appropriate)

Increasing the number of visitors to Australia from overseas and Australia’s market share of international tourism

Maximising the benefits to Australia from overseas visitors through increasing inbound tourist expenditure, number of visitor nights and geographic dispersal

Promoting the principles of ecologically sustainable development and seeking to raise awareness of the social and cultural impacts of international tourism in Australia and the acceptance of visitor arrivals by the Australian community

• 
  Increase international consumer desire to visit Australia.
  
• 
  Improve the tourism industry’s ability to act on market/consumer opportunities (strategic leadership)
  
• 
  Improve the performance of existing and new international distribution channels linked to identified consumer opportunities
  
• 
  Maintain or increase Australia's market share in priority countries where the ATC is actively marketing
  
• 
  Increase visitor expenditure (yield) in Australia for overseas visitors
  
• 
  Improve the ability to identify and lead to market those products and experiences that best meet the identified consumer segment opportunities
  
• 
  Continuously improve internal and external stakeholder engagement and performance delivery
  
• 
  Promote dispersal opportunities (advertising, PR, Visiting Journalist Program, australia.com).
  
• 
  Enhance adoption ecotourism and sustainability agendas in overall tourism promotion
  

Performance information for departmental outputs

Output 1

Consumer Marketing

Output 2

Trade Marketing

Quality

• In all 12 core markets maintain or improve presence, image and consideration measures (as measured in the consumer impact index)

Quantity

• 
  Improve the overall consumer impact index by 5% (in markets with increased marketing budgets in 2004-05)
  
• 
  At least 46 million pages delivered via the ATC consumer web site australia.com.
  
• 
  Estimated 1,000 media visits to Australia as part of the Visiting Journalist Program (VJP)
  
• 
  Public Relations equivalency achieved through media generated from VJP visits
  
• 
  Responses to Consumer Marketing campaigns
  

Quality

• 
  At least 75% satisfied or very satisfied ratings (by key stakeholders) with ATC’s stakeholder engagement
  
• 
  At least 75 per cent satisfaction with ATC organised events
  

Qua tity

n

• 
  At least 20% of Aussie Specialist distributors’ sales are to Australia
  
• 
  At least 50% of sales to Australia are booked by an Aussie Specialist distributor
  
• 
  Revenue levels achieved
  
• 
  Number of trade events and seminars
  
• 
  Number of cooperative campaigns
  
• 
  Number of new products involved in ATC activities
  
• 
  Industry participation in ATC activities
  
• 
  Leads generated from Business Tourism Strategy
  
• 
  Pages accessed on ATC trade web site
  

EVALUATIONS

There is ongoing evaluation of the ATC’s programs and major projects. In addition, the continued implementation of the Key Performance Indicators (KPIs) project, developed in 2002-03 and 2003-04, ensures individual, business unit and organisational objectives are met across the organisation.

Section 3: Budgeted financial statements

The budgeted financial statements for the ATC are presented in this section.

An overview of the financial statements is provided in Part A: User Guide at pages 4 - 7 of these PB Statements.

ANALYSIS OF BUDGETED FINANCIAL STATEMENTS

An analysis of the ATC’s budgeted financial statements, as reflected in the departmental financial statements for 2004-05, is provided below.

Statement of Financial Performance

The ATC is budgeting for zero profit and loss for 2004-05 .

Total external revenue is estimated to be $24.2m, an increase of $1.3m from the 2003-04 financial year, primarily as a result of:

• 
  reduction in foreign exchange gain ($3.6m);
  
• 
  increase in industry contributed revenue $5m; and
  
• 
  reduction in interest income ($0.1m).
  

Total expenses are estimated to be $145.2m, an increase of $21.5m from 2003-04 due to additional funding from the Tourism White Paper to boost consumer marketing in major markets and an increase in industry revenue.

The following graph shows trends in total expenses from 2000-01 to 2004-05.

Statement of Financial Position

The ATC’s budgeted total asset position of $20m represents an increase of $1m over estimated actual for 2003-04. Cash at the end of the year is expected to remain the same and non-financial assets increase by $0.8m due to increase in leasehold improvements with planned office move.

The chart below shows budgeted assets for 2004-05 by category.

Table 3.1: Budgeted Departmental Statement of Financial Performance
for the period ended 30 June
Estimated	Budget	Forward	Forward	Forward
actual	estimate	estimate	estimate	estimate
2003-04	2004-05	2005-06	2006-07	2007-08
$'000	$'000	$'000	$'000	$'000
REVENUE

Revenues From Ordinary Activities
Revenues from Government (K1)	97,855	121,031	121,673	119,136	120,358
Goods and services	269	260	261	253	255
Interest	1,100	1,000	1,006	993	1,004
Dividends
Revenue from sales of assets
Net foreign exchange gains	3,586
Correction of fundamental error
Other	17,870	22,909	23,076	22,528	22,700
Revenues From Ordinary Activities	120,680	145,200	146,016	142,910	144,317
EXPENSE
Expenses From Ordinary Activities
(Excluding Borrowing Costs
Expense)
Employees	23,613	21,985	23,029	24,120	25,267
Suppliers	96,655	120,536	120,272	115,015	115,793
Grants
Subsidies
Depreciation and amortisation	3,412	2,679	2,715	3,775	3,257
Write-down of assets
Value of assets sold
Net foreign exchange losses
Correction of fundamental error
Other

Expenses From Ordinary Activities (Excluding Borrowing Costs Expense) Borrowing costs expense Share of net profits or (losses) of associates and joint ventures accounted for using the equity method Correction of fundamental error	123,680	145,200	146,016	142,910	144,317
Operating Surplus or (Deficit) From Ordinary Activities Gain or (loss) on extraordinary items Correction of fundamental error	(3,000)	-	-	-	-
Net Surplus or (Deficit)	(3,000)	-	-	-	-
Note: (K1) links to Table 1.1.

Table 3.1 (continued): Budgeted Departmental Statement of Financial Performance for the period ended 30 June
Estimated Budget Forward Forward	Forward
actual estimate estimate estimate	estimate
2003-04 2004-05 2005-06 2006-07	2007-08
$'000 $'000 $'000 $'000	$'000
Outside equity interests in net
surplus or (deficit)