Prepared for :
Cradle Coast Authority The Tarkine - Latent Demand Quantification Phase 1 Consumer Segments December 2007
Prepared By : EMDA in conjunction with Moore Consulting & SCA Marketing
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Economic and Market Development Advisers
Section 1 : Introduction
EMDA Economic and Market Development Advisers
Contents Section 1 : Introduction Section 2 : Key Trends Section 3 : Domestic and International Segments Section 4 : Tasmania's Performance Section 5 : Our Initial Conclusions
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Economic and Market Development Advisers
Section 1 : Introduction
EMDA Economic and Market Development Advisers
Project Purpose The Tarkine planning workshop of 31st October 2007 identified the key steps required to progress the development of the Tarkine Master Tourism Plan - including the preparation of the latent demand model for the Tarkine. Three key steps have been approved to determine this demand:Step 1 : Identify and quantify the key consumer segments that will support the development of the Tarkine. (TODAY) Step 2 : Develop an econometric model linking the segments and criteria developed (ie :- access, attractions) to identify potential patronage numbers and regional economic benefits (tourism spending and employment). This stage would include the quantification of a range of visitation and economic scenarios. (Report 21st / Feedback w/c 15th Jan 08, Meeting incorporating comments w/c 21st Jan 08) Step 3 : Concept test development options (ie attractions) within the model developed using proprietory market research techniques. The concepts to test will be developed as part of Steps 1 and 2 in conjunction with the existing work that has been undertaken identifying product opportunities.
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Economic and Market Development Advisers
Section 1 : Introduction
EMDA
Contextual Statement - based on Findings to Date
Economic and Market Development Advisers
In this report it has been found that Tasmania's status as a State with iconic natural wonders (a key element of the nature tourism market) has fallen and is well behind Queensland and NSW. This is a key strategic issue confronting tourism in Tasmania as this is a key platform. Lifting this falling ( and relatively low) position will require the development and promotion of new iconic natural areas - however, this is not an easy task to achieve and if the overall appeal of the natural appeal of Tassie continues to deteriorate then this will become even harder. Lifting the status is well worthwhile as the nature tourism market is a very valuable and therefore there is a big prize. This is a high yielding segment - worth $13.8B in the Domestic market and $4.1B in the Inbound market. The Tarkine is a possible development that could lift Tassie's status in this market. It is of significant size and already has status as the area contains an abundance of natural attractions including one of the worlds largest tracts of untouched Rainforest. Such opportunities are very rare - wilderness cannot be built and coastal wilderness is even rarer. To achieve the lift in status, the Tarkine will need to satisfy the needs of a number of key segments who are very interested in natural areas lead by a focus of a focus on a number of the segments lead by the Nature Enthusiasts. For this group their most important motivation for choice of holidays is accessing natural areas. A key need amongst the segment is to have a new experience - meaning experiencing new natural areas. Here the Tarkine is potentially well placed as it would be a new holiday destination.
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Economic and Market Development Advisers
Section 1 : Introduction
EMDA Economic and Market Development Advisers
The Study Region The Tarkine Region is a broad area incorporating wilderness areas, coastal areas and a few towns but has restricted access at this stage.
TARKINE REGION
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Economic and Market Development Advisers
Section 2 : Key Trends
EMDA Economic and Market Development Advisers
Who has world class natural attractions ? Amongst Australians 7% nominate that Tasmania has world class natural attractions - and this has fallen - Tasmania is losing status in a core appeal. Now Vic (9%). ahead of Tassie and well behind NT and Qld 24%, NSW 15%, also WA at 8%. Tassie only higher than SA (0%).
Tasmania % Nominate World Class Natural Attractions % Australian Population 9.5 9 8.5 8 7.5 7 6.5 6 5.5 2001
2002
2003
2004
2005 Source : RMR
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Economic and Market Development Advisers
Section 2 : Key Trends
EMDA Economic and Market Development Advisers
Tasmanian Visitors % Visit a National Park
% Went on a Bushwalk
65
52 51
60
50 49
55
48 47
50
46 45
45
44 40
All Trips
43 J 01
J 02
J 03
J 04
J 05
J 06
J 07
J 01
J 02
J 03
J 04
J 05
J 06
J 07
Source : TVS
Amongst visitors to Tasmania, the % visiting natural attractions is falling - visiting a National Park , also going for a bushwalk (all length of times are falling), - most other activities are lower as well. Big growth in short stays means people have less time to undertake activities - this is a contributing factor.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segmentation Approach A detailed review of the four tourism databases was undertaken - Tasmanian Visitor Survey (TVS), Roy Morgan Research Holiday Tracking Study (RMR-HTS), National Visitor Survey (NVS) and the International Visitor Survey (IVS). Within the NVS and IVS a series of questions was added for the March quarter 06 which enables identification of nature based tourism - as this is in the large databases this means the data can be segmented into meaningful segments. The questions identify those who state :That the most important factor in taking their trip is to undertake nature based activities. Those who stated that undertaking nature based activities is a major factor separated into four other segments based on shared characteristics (age, income and behaviours). The remainder are either neutral or unimportant. The following two pages chart the segmentation developed by EMDA to be understand the possible consumers the Tarkine has to appeal to, for the development to be a success. The segments have then been "coded" by EMDA into the HTS and TVS this has been done by systematically comparing variables common to all segments such as activities, age, presence of children and clustering these together - although not a perfect alignment, the results are sufficiently robust for marketing development purposes.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment Descriptions Segment 1 : Nature Enthusiasts (10.8% of all domestic overnight trips) For these holiday makers the most important factor in taking their trip is to undertake nature based activities. They enjoy a broad range of nature based activities, including, beaches, coastal areas, sight seeing, National and State Parks.. The core appeal for this group is the natural beauty of the area and the ability to get close to nature. They range from very active, predominately younger people (ie overnight bushwalkers) to older people who really enjoy nature more passively. They have a very strong preference for camping.
Segment 2 : Younger Nature Enjoyers (7.2% of all domestic overnight trips) For this segment getting out into natural areas is a major factor in destination choice and the average age is 25. They like beach areas, wilderness and opportunities to bushwalk. They are more active and like some higher quality accommodation for time together (couples). Camping areas are also important.
Segment 3 : Families Nature Enjoyers (12.3% of all domestic overnight trips) For this segment getting out into natural areas is a major factor in destination choice. Their average age is around 42 (parents). For this group all the travel party must be catered for and enjoy the experience (parents and the kids). They like more self contained accommodation.
Segment 4 : Affluent Nature Enjoyers (1.5% of all domestic overnight trips) For this segment getting out into natural areas is a major factor in destination choice. They don't want lost of kids around and like getting close to nature also opportunities to interact with friends and rels on the same trip.
Segment 5 : Lower Nature Enjoyers (4.3% of all domestic overnight trips) For this segment getting out into natural areas is a major factor in destination choice. Their average age is 55 and they like more a lower cost experiences and natural beauty. Although physically active a key requirement is that activities catering to the needs of both of the couples.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Domestic Market - Segment Sizes In the Domestic Australian market five segments have been identified.
Nature Based Tourism Segments (% of Australian Domestic Overnight Market)
High Importance
Nature Enthusiasts - those who stated that the most important factor in taking their trip was to undertake nature based activities. Importance of appeal of Nature
Those who stated that undertaking nature based activities is a major factor separated into four other segments based on shared characteristics (age, income and behaviours).
Nature Enthusiasts (10.6%)
Affluent - Nature Enjoyers (1.5%)
Younger - Nature Enjoyers (7.2%)
Families - Nature Enjoyers (12.3%)
Lower - Nature Enjoyers (4.3%)
Neutral Importance 20
30
Source : National Visitor Survey
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40
50
60
65
Average Age (years)
Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
International Market - Segment Sizes
Nature Enthusiasts - those who stated that the most important factor in taking their trip was to undertake nature based activities. Those who stated that undertaking nature based activities is a major factor separated into three other segments based on shared characteristics (age, income and behaviours).
High Importance
Nature Based Tourism Segments (% of Australia's International overnight market)
Nature Enthusiasts (10.8%) Importance of appeal of Nature
In the International Australian market four segments have been identified.
Younger - Nature Enjoyers (10.7%)
Families - Nature Enjoyers (5.6%)
Older Nature Enjoyers (7.3%)
Neutral Importance 20
30
Source : National Visitor Survey
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40
50
60
65
Average Age (years)
Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 1 Nature Enthusiasts Their accommodation preferences provides a guide to the accommodation component of the concept development.
Type of Accommodation - %
Nature Enthusiasts are well above Standard hotel average in staying in camping areas either in a National / State Park or in Camping-national park a Caravan Park. Caravan park- camping
Below average in commercial accommodation - especially 4 to 5 Star. This highlights the requirement for quality , well sited camping areas.
18.7
Friends/Rels
Self C Flat 4 to 5 Star Caravan park- cabin Caravan park with van B and B Serviced apartment
39.1
15.3 19.9 13
0.6 9.3
0.7
6.9 6.2 6.3 4.6 0.7 3.7 0.5 2.8 1.5 2.5 3.1
11.7
All Trips Nature Enthusiasts
Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 1 Nature Enthusiasts (Top 20 Activities) - % Activities - %
Activities - %
Restaurants Beach
24.2
Sight seeing
28.7
National/State parks Bushwalking
8.5 7 30.3 25.3 24.7
Shopping (pleasure) Visit friends/rels Picnics/BBQs
7.3
Pubs clubs discos etc Go fishing
8
45.7 46.7
54.6
Water activities/sports
44.3
Exercise
4.1
Daytrip
7
42.6
Museums/art galleries
42.4
History/heritage Wildlife parks/zoos Public gardens
41.9
24.1
Surfing
20.7 22.1 20.5
13.4
1.4
Snorkelling Markets
13.2 11.9
10.9 4.7 9.4 4.4 Nature Enthusiasts 8.5 2.5 All Trips 7.7 2.8 7.7 0.8 7.5 0.4 6.6 4.4
Their activity preferences provides a guide to the activities component of the concept development.
Source : NVS
Nature Enthusiasts are well above average in participation in nature related activities especially bushwalking (range of opportunities - not just one) , the beach, sight seeing (quality areas) - but also eating out - not necessarily at the natural location but within an appropriate distance. In the case of the Tarkine coastal areas aligned to their needs are likely to appeal. This provides the hierarchy of activities required to maximise the appeal to this segment. 24/12/07 Tarkine Phase 1 Final Report
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 1 Nature Enthusiasts Nature Enthusiasts nominate that seeing natural beauty is the most important need (74.7%). This is likely to be a more passive activity rather than close to nature which implies a more active need. Escaping towns/cities, being close to nature and the opportunity to rest and relax are very important needs as well. Being with friends and relatives who share a common interest (ie :natural environments) is also an important need. Braggable / status is quite low as is an educational experience.
Needs - % nominate very important 74.7
Natural Beauty
71.2
Escape towns/city
70.1
Close to nature
67.3
Rest and Relax
62
Get away from Crowds Be with friends/rels
54.7
New Experiences
53.9 44.1
Physically Active
40.9
Exciting Educational Experience Braggable
33.4 27.7
Nature Enthusiasts
Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 1 Nature Enthusiasts - Travel Party and Channel to market Travel Party - %
Trip Planning Sources Prior to Arrival - %
24.5
Family group
10.9
Business associates
Brochures
36.3
Travel/guide books
35.5
Tassie free call Magazines
2.1
Airline School/uni group
2.1
Community group/club
1.7
30.2
Travel Agent
18.8
Friends/rels - no kids
41.5
Word of mouth
27.5
Adult couple
Friends/rels-with kids
59
Websites
11.3
Alone
Source : NVS
10.5 8.8 7.8
Motoring Club
6.4
Tassie Travel Centre
6.2 Source : TVS
Nature Enthusiasts like to travel in groups with people with like minded interests. A key aspect here is the lack of children in the travel parties. They are very heavy users of websites as a source of information, highlighting the importance of a strong web based presence. Reputation (word of mouth) is also a key source of information and can take years to establish.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 2 Younger - nature enjoyers Younger nature enjoyers above average in staying with friends and rels (low cost accommodation an appeal) - but also camping in a National Park. They like a splurge as well and are above average in staying in 4 to 5 Star.
Type of Accommodation - % 41.9 39.1
Friends/Rels
15.1
Standard hotel
20.7 12 11.7
4 to 5 Star Camping-national park
10.3 0.6 6.4 6.2
Self C Flat Camping by road Caravan park- cabin Caravan park- camping
5 0.4 4.7
All Trips Younger - nature enjoyers
0.7 4.2 0.7 Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 2 Younger- nature enjoyers Activities - %
Activities - % 55.9 45.7 53.4
Restaurants Beach
24.2
Sight seeing Bushwalking
49.1
7
43.4 41.9 40
Visit friends/rels
25.3
Pubs clubs discos etc
22.1
National/State parks Picnics/BBQs Go fishing
8
35.9
History/heritage
4.4
Visit wineries Other outdoor activities
28.1
Play golf
23.1
1.4 4.1
Museums/art galleries
Public gardens
15
7
Exercise
Markets
34.1
8.5 7.3
Water activities/sports
50.9
28.7
Shopping (pleasure)
Daytrip
12.5 11.9 11.3
10 4.4 8.8 4.7 8.4 2.9 8.1 6.9 8.1 3.1 7.8 2.8
All Trips Younger nature enjoyers Source : NVS
Younger nature enjoyers are well above average in going to the beach, sight seeing and bushwalking (range of bushwalks) - but also like their eating out, going to the pub and restaurants. Integrating the beach will be a key to maximising the appeal to this segment, also including a range of bushwalking opportunities to experience the natural environment.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 2 Younger- nature enjoyers Young Nature Enjoyers nominate escaping from towns and the city as their most important need (71.8%). Opportunities to rest/relax and experience natural beauty are also important needs.
Needs - % nominate very important 62.8
Natural Beauty Escape towns/city
50.6
Close to nature Rest and Relax
74.7 71.8 71.2
70.1 68.4 67.3
57.3 62
Get away from Crowds Be with friends/rels New Experiences Physically Active Exciting Educational Experience
15
Braggable
11.9
46.9 54.7 40.2 53.9 38.2 44.1 39.3 40.9 Younger - Nature 33.4 Enjoyers 27.7
Nature Enthusiasts Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 2 Younger Nature Enjoyers - Travel Party and Channel to market Travel Party - %
Trip Planning Sources Prior to Arrival - % 53.1
Websites
6.3
Alone
54.5
Word of mouth
35.3
Adult couple
35.4
Brochures Family group
14.7
Friends/rels - with child
15.3
Business associates
20.7
Travel Agent Tassie free call
25.3
Friends/rels - no kids
45.4
Travel/guide books
2 7.7
Magazines
1.3
10.6
Airline School/uni group Community group/club
0
Motoring Club
0.3
3.6
Tassie Travel Centre
Source : NVS
9.6 Source : TVS
They are more likely to travel as a couple or with friends / relatives. They are heavy users of websites and rely heavily on word of mouth, this highlights the time taken for places to become established - word of mouth generally works slowly.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 3 Families - nature enjoyers Familiy nature enjoyers above average in staying in self contained flats and their own holiday house. The presence of children makes travelling around less appealing. They are also above average in camping in State/National Parks and camping in a Caravan Park. They are below above in staying in 4 to 5 Star.
Type of Accommodation - % 23.6
Friends/Rels Self C Flat
19.9
6.2
17.1 20.7
Standard hotel Own House Caravan park- camping
8.3
4
7.4
0.7
7.2
4 to 5 Star Camping-national park Camping by road Caravan park- cabin
39.1
7.2
0.6 0.4 0.7
11.7
All Trips Family - nature enjoyers
5.3 5
Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 3 Families - nature enjoyers Activities - %
Activities - %
Beach
60.5
24.2
60.3 45.7 52.6
Restaurants Sight seeing
28.7
Shopping (pleasure) Bushwalking
25.3
42.1
8.5 8
Pubs clubs discos etc
7.3
2.5 4.7
Exercise
4.1
Markets
31
Other outdoor activities
27.2
Daytrip
26.7 22.1 21.3
4.4
Museums/art galleries
Water activities/sports
35.9 41.9
National/State parks
Picnics/BBQs
Wildlife parks/zoos
36.2
7
Visit friends/rels
Go fishing
History/heritage
Play other sports Movies or videos
1.4
14.1 13.8 12.1 11.8 11.5
10.8 4.4 9 6.9 8.7 7 8.5 4.8 7.4 5.1
All Trips
Source : NVS
For the nature enjoying families - the beach is their biggest activity, followed closely by going to a restaurant and sight seeing. They are above average bushwalkers as well. With this segment finding appeals that satisfy the whole family will be the challenge keeping the kids happy. 24/12/07 Tarkine Phase 1 Final Report
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 3 Families- nature enjoyers Family - nature enjoyers they are most interested in rest and relaxing. Natural Beauty rates very highly as well - with 62.7% nominating this as an important need. Opportunities to relax with familiy and friends is an important appeal.
Needs - % nominate very important 62.7
Natural Beauty
55.6
Escape towns/city
46.7
Close to nature
71.2 70.1 69.2 67.3
Rest and Relax
51.5
Get away from Crowds
62 58.5 54.7
Be with friends/rels
46.2 53.9 43.3 44.1
New Experiences Physically Active
31.7
Exciting Educational Experience Braggable
74.7
9.5
40.9 Families - Nature 28.3 33.4 Enjoyers 27.7
Nature Enthusiasts Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 3 Families Nature Enjoyers - Travel Party and Channel to market Travel Party - % Alone
Trip Planning Sources Prior to Arrival - % 59.6
Websites
1
47.3
Word of mouth
13.8
Adult couple
50.8
Brochures
63.8
Family group
12.3
Friends/rels - with child Friends/rels - no kids Business associates
Community group/club
24.2
Travel Agent Tassie free call
4.9
Magazines
0.3
Airline School/uni group
45.1
Travel/guide books
3.1 0.8
13.6 8.8 14.3
Motoring Club
12.7
Tassie Travel Centre
12.2 Source : TVS
Source : NVS
They are more likely to travel as a family group - finding things to do that keeps everyone happy is the challenge. They are heavy users of information including websites, brochures, travel guides and rely heavily on word of mouth.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 4 Affluent Older - nature enjoyers Affluent Older are more interested in the luxury accommodation - they are well above average in staying in 4 to 5 star accommodation.
Type of Accommodation - % 21.8
Friends/Rels
They are still above average in camping.
39.1 16.1 11.7
4 to 5 Star
14.9
Standard hotel
20.7 11.5
Own House Caravan park with van Caravan park- cabin Camping-national park B and B
4 8 0.5 8 0.7 5.7 0.6
All Trips Affluent Older nature enjoyers
3.4 1.5 Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 4 Affluent Older - nature enjoyers Activities - %
Activities - %
Restaurants Bushwalking
24.2
Visit friends/rels
Pubs clubs discos etc Visit wineries
2.9
Daytrip
7
25.3 23.1 22.1 23.1
9.4
Picnics/BBQs
46.2
8.5
Shopping (pleasure)
History/heritage
56.9
28.7
Beach
Go fishing
61.5
7
Sight seeing National/State parks
76.9
45.7
Museums/art galleries
44.6
Exercise
43.1 41.9 40
Surfing Aboriginal art etc Guided Tour Cruise/ferry ride
21.5
Whale/dolphin watchin
0.4
20 20.5 20
18.5 24.1 12.3 10.9 10.8 13.2 10.8 7.7 All Trips 10.8
9.2 6.6 9.2 6 9.2 2.8 Source : NVS
Affluent Older Nature Enjoyers are well above average in going to restaurants and also outdoor activities. They are also above average in shopping and well above average in interest in Aboriginal Art.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 4 Affluent Older- nature enjoyers Affluent Older - nature enjoyers, being close to nature, rest and relaxing are important appeals, also being with friends and relatives. One of the key concept development tasks will be properly developing an experience that aligns with their need for being close to nature -this implies a more active interaction with nature rather than the more passive natural beauty.
Needs - % nominate very important Natural Beauty
50
Escape towns/city
46.9
Close to nature Rest and Relax
71.2 68.2 70.1 65.2 67.3
53.8 62 59.7 54.7
Get away from Crowds Be with friends/rels
42.4
New Experiences
53.9
44.6 44.1
Physically Active
20
Exciting
21.2
Educational Experience Braggable
74.7
9.2
40.9 Affluent Older 33.4 Nature Enjoyers
27.7
Nature Enthusiasts Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 4 Affluent Older Nature Enjoyers - Travel Party and Channel to market Travel Party - %
Trip Planning Sources Prior to Arrival - % 58.1
Websites
9.2
Alone
36
Word of mouth
47.7
Adult couple
33.6
Brochures
4.6
Family group
10.8
Friends/rels - with child
Business associates
Tassie free call
0
School/uni group
0
Community group/club
0
20.6
Travel Agent
27.7
Friends/rels - no kids
35.4
Travel/guide books
8.9
Magazines
3.9
Airline
4.4
Motoring Club
12.2
Tassie Travel Centre
12.1
Source : NVS
Source : TVS
This group is most likely to travel as a couple or with friends/relatives - without kids. For information sources they use extensively websites and word of mouth.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 5 Lower Older - nature enjoyers Lower Older - more interested in lower cost accommodation.
Type of Accommodation - %
They have a well below average interest in 4/5 Star accommodation due to the costs involved.
27
Friends/Rels
12.9
Standard hotel Self C Flat Own House
4
6
4 to 5 Star Camping-national park Caravan park with van Caravan park- staying in a Camping by road
6.2 8.2
0.6 0.5
39.1
20.7
12.9
11.7
6 4.3
All Trips Lower Older - nature enjoyers
4.3
0.4 2.6 0.4
Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 5 Lower Older - nature enjoyers Activities - %
Activities - %
Sight seeing Restaurants Beach
24.2
7
Shopping (pleasure) National/State parks Picnics/BBQs
8.5 7.3
Pubs clubs discos etc Go fishing
8
45.7 42
Museums/art galleries
57.5
Markets Daytrip
40.4 41.9 39.9
Visit friends/rels Bushwalking
60.6
28.7
Wildlife parks/zoos Movies or videos
33.2 25.3 26.9
History/heritage Cruise/ferry ride
24.9
Visit wineries
23.3 22.1 16.6
Public gardens Whale/dolphin watchin
20 15.5 20 13.5 18.5 11.4 12.3 9.3 10.8 8.8 10.8 8.3 10.8 8.3 9.2 6.7 9.2 6.7 9.2 6.2
All Trips
Source : NVS
For this group their most popular interest is in sight seeing, but they also like bushwalking and eating out. With this group the sight seeing will be critical to winning their patronage.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Segment 5 Lower Older- nature enjoyers For this group the natural beauty of the area is the core appeal also the opportunity to rest and relax. They also like the opportunity to be physically active as well Escaping towns and cities is also an important appeal.
Needs - % nominate very important 71.9 74.7 64.2 71.2
Natural Beauty Escape towns/city Close to nature Rest and Relax Get away from Crowds Be with friends/rels New Experiences Physically Active Exciting Educational Experience Braggable
43.5
70.1 64.6 67.3 62.2 62 57.5 54.7 49.2 53.9 49.2 44.1
34.9 40.9 Affluent Older 25.7 33.4 Nature Enjoyers 22.8 Nature Enthusiasts 27.7 Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA
Segment 5 Lower Older Nature Enjoyers - Travel Party and Channel to market Travel Party - %
Trip Planning Sources Prior to Arrival - %
10.9
Family group
13
Friends/rels - with child
Brochures
33.3
Travel/guide books
33.3
Tassie free call Magazines
0
Airline School/uni group
1
Community group/club
0
27.7
Travel Agent
15.5
Friends/rels - no kids
39.5
Word of mouth
43
Adult couple
37.8
Websites
16.1
Alone
Business associates
Economic and Market Development Advisers
8.5 6.5 4.9 18.8
Motoring Club Tassie Travel Centre
9.8
Source : NVS
Source : TVS
They are most likely to travel as a couple and their most important information source is word of mouth followed closely by websites. With this group catering to the differences often difference in physical capability within the couple will be a challenge.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Domestic % of Visits / $ Spending % of Visits - Australia
Holiday Spend $M - Australia 10.5
Enthusiasts 7.2
Younger
8.8 12.3 1.5
In total 32.3% of all trips
1.7
Lower
4.3 3
4216
Younger
6.3
Families Affluent
Enthusiasts
10.6
Families Affluent
In total 34% of total Spend
2492
Lower
4894
688
1197
Source : NVS
Nature Enthusiasts comprise 10.5% of total Australian trips and in total spend $4.2B on holidays domestically. Families - Nature Enjoyers are the biggest segment in terms of numbers and $ spend ($4.9B). In total this is a $13.8B market (Australia - Domestic).
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Australia - Average Value ($ per night / per trip) $ Spend Per Night per person ($)
Enthusiasts
Spend per Trip per person ($)
Younger
Younger
142.9
Families
896.1
776.4
Families
197.4
Affluent Lower
Enthusiasts
159.2
1251
Affluent
156.2
Lower
92.2
1054.9
618.5
Source : NVS
Families - Nature Enjoyers spend the most per person and per night. All segments are big spenders, only the Lower Older Segments are below average because of income constraints.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Domestic Tasmania Market Share (%) Market Share - Visits (%)
Tasmania has a small share of each segment - 6.2% of the Enthusiasts and only 0.8% of the Affluent Nature Enjoyers.
Enthusiasts
6.2
Younger
4.1
Families Affluent Lower
3.1
0.8
Total Tas. Share 2.7% 3.6
Source : NVS
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Domestic Tasmania - Preference / Conversion Prefer a Holiday in Tas ('000)
Conversion (% Visit)
Enthusiasts Younger
Lower
70.4
Younger
70
Families Affluent
Enthusiasts
189
Families
130
Affluent
81
Lower
127
34.3
25.4
53.1
49.6
Source : RMR HTS
Tasmania already a conversion of Enthusiasts (70.4%) amongst those who have a Preference to visit Tasmania - (Tas. average 41.8%) and is ahead of WA 64.7% and on a par with overseas (70.4%) and just behind Qld (84%). Amongst the enjoyers conversion in much lower (40.9%) as is behind the overall average for Tasmania. The younger and familles are lowest - well behind the conversion that other States achieve and Territories (other than the NT). For example amongst the families WA achieves 53% conversion, Qld 78%. Amongst the younger segments - WA achieves 56% conversion, Qld 92%, OS 60% conversion. 24/12/07 Tarkine Phase 1 Final Report
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
International Visitors - Aus. % of Visits / $ Spending % of Visits - Australia
Holiday Spend $M - Australia 10.8
Enthusiasts
10.7
Younger
Families
Older
Enthusiasts
8.6
Younger
11.5 5.6 4.2
1199
In total 34.6% of all trips In total 29.6% of total Spend 7.3
Families
Older
5.3
1601
586
744
Source : IVS
In the International market - the younger segment has the highest total spend ($1.6B). The Enthusiasts are worth $1.2B in spending. The total International market is worth $4.1B.
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Economic and Market Development Advisers
Section 3 : Domestic and International Segments
EMDA Economic and Market Development Advisers
Summary Spend Holiday Spend $M
In total the market is worth $17.6B. The biggest segment is the Enthusiasts - worth $5.4B (30.7% of the total spend).
Enthusiasts
5415
Younger
4093
The older segments have the lowest total spend ($2.6B). Families
Older
5480
2629
Source : IVS
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Economic and Market Development Advisers
Section 4 : Tasmania's Performance
EMDA Economic and Market Development Advisers
Tasmania - Nature Segments Number of visitors is all the segments is static - consistent with a softening in Tassie's standing with world class natural attractions. The nature Segment's share of Tasmania's visitor market is falling this is reflects the erosion of the appeal of Tassies natural attractions.
Tas. Nature Segments - Total and Patronage Share 48
320 310
Number of Visitors ('000)
300
46
290
44
280 42
270 260
40
250 38
240
Share of Tas. Visitors (%)
230
36
220 210
34 J 01
J 02
J 03
J 04
J 05
J 06
J 07 Source : TVS
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Economic and Market Development Advisers
Section 4 : Tasmania's Performance
EMDA Economic and Market Development Advisers
45
25
J 06
30 J 05
50
J 04
35
J 03
55
J 02
40
J 01
60
J 07
45
J 06
65
J 05
50
J 04
70
J 03
Family Nature Enjoyers - ('000)
J 02
Others are either soft or falling.
Younger Nature Enjoyers - ('000)
J 01
The Enthusiasts are now growing again.
Enthusiasts - ('000)
Affluent Older Nature Enjoyers - ('000)
Lower Nature Enjoyers - ('000)
75
70
80
70
65
70
60
60
55
50
50
50
40
45
45
30
65
J 07
Tasmanian Visitors - Segment Trends
J 07
J 06
J 05
J 04
J 03
J 02
J 01
J 07
J 06
J 05
J 04
J 03
J 02
J 07
J 06
J 05
J 04
J 03
J 02
J 01
55
J 01
Source : TVS 60
Source : TVS
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Economic and Market Development Advisers
Section 4 : Tasmania's Performance
EMDA Economic and Market Development Advisers
Tasmanian Visitors - Segment Trends- Share of Tassie Visitors (%) Family Nature Enjoyers - (%)
11
7
10
6.5 6
9
5.5 8
Enthusiasts - (%)
Affluent Older Nature Enjoyers - (%)
Lower Nature Enjoyers - (%)
10.5
12
10.5 9.5
9
10
9
8.5
9
8.5
Source : TVS
8 8
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J 07
J 06
J 05
J 04
7
J 03
J 07
J 06
J 05
J 04
J 03
J 02
7
7.5 J 01
J 07
J 06
J 05
J 04
J 03
J 02
J 01
7.5 7
8
J 02
9.5
J 07
10
11
J 01
10
J 06
J 05
J 04
J 03
J 02
J 07
J 06
4
J 05
6
J 04
4.5 J 03
7
J 01
5
J 02
Once again highlights the issue of losing relative appeal in a core appeal area for Tasmania.
Younger Nature Enjoyers - (%)
J 01
In terms of share of Tassie visitors - all segments have fallen over the last five years although the Enthusiasts are recovering.
Economic and Market Development Advisers
Section 4 : Tasmania's Performance
EMDA Economic and Market Development Advisers
Domestic and Int. - Tasmania - % of Visits / $ Spending % of Visits - Tasmania
Holiday Spend $M - Tasmania 7.5
Enthusiasts
7.5
Younger Families Affluent Lower
Enthusiasts
12.7
6.6 4.4 7.3
In total 34.9% of all trips
Younger
% of Spend in Tassie
Families
7.7
Affluent
11 7.8 13.5
Lower
149.1
77.2
In total $600m of total Spend / 51.2%
85.9
129.5
158.6
Source : TVS
The Enthusiasts are 7.5% of visitors to Tasmania and account for 12.5% of spending - in total they are spending $149.1M. The Lower Older segments are the biggest segment in terms of value - not only because of the size of the segment in terms of visitors but also because they stay longer.
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Economic and Market Development Advisers
Section 4 : Tasmania's Performance
EMDA Economic and Market Development Advisers
Tasmania - Average Value ($ per night / per trip) $ Spend Per Night per person in Tassie ($)
Enthusiasts Younger
Spend per Trip per person in Tassie ($)
Younger
144
Families
2468
1263
Families
258
Affluent Lower
Enthusiasts
226
Affluent
223
2435
2063
Lower
173
2519
The Families (nature enjoyers) , Enthusiasts and Families are the biggest spenders per trip.
Source : TVS
On a yield per night basis they are all relatively big spenders - even the older lower income.
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Economic and Market Development Advisers
Section 4 : Tasmania's Performance
EMDA Economic and Market Development Advisers
Tasmania - Average Length of Stay (Days) The Lower segments stay the longest in Tasmania on their total trip (14.5 days). They have more time available generally. The Enthusiasts also take a longer holiday 10.9 days. Visiting the wilderness is their passion and they devote as much time possible to this pursuit. The other three segments (Younger, Families and Affluent) have a similar length of stay - all over a week.
Avge. Length of Stay in Tassie
Enthusiasts Younger
10.9
8.8
Families
9.4
Affluent
9.2
Lower
14.5
Source : TVS
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Economic and Market Development Advisers
Section 5 : Summary
EMDA Economic and Market Development Advisers
Our Initial Conclusions Tasmania's status as a State with iconic natural wonders (a key element of the nature tourism market) has fallen and is well behind Queensland and NSW. This is a key strategic issue confronting tourism in Tasmania as this is a key platform. Lifting this falling position will require the development and promotion of new natural iconic areas - however, this is not an easy task to achieve and if the overall appeal of the natural appeal of Tassie continues to deteriorate then this will become even harder. The nature tourism market is a very valuable and therefore is a big prize. This is a high yielding segment - worth $13.8B in the Domestic market and $4.1B in the Inbound market. The Tarkine is a possible development that could lift Tassie's status in this market. To achieve this position will require a focus on a number of the segments identified, especially the Nature Enthusiasts, by offering an accessible but authentic coast based nature experiences. The 1st Priority segment is the Nature Enthusiasts :This is a valuable segment - both already to Tasmania and also in the Australian market overall. Their needs are very clear - that is the first priority is the appeal of the natural area - does it have the goods ? - then of course how accessible it is and is it managed in such a way that the "away from it all" appeal still holds. In terms of activities a high quality sight seeing experience is a must, ideally with beach components. The provision of quality camping areas with a range of highly engaging activities (ie:- a range of quality bushwalking) is a must. This segment will establish the reputation of the area - which is critical in buildings its appeal. The other segments which are engaged with nature are potentially appealing segments for the Tarkine. Nature has a strong appeal although not to the extent of the nature enthusiasts. Each of the other segments (four) has its own appeals that need to be aligned with to be successful.
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Economic and Market Development Advisers
Section 5 : Summary
EMDA Economic and Market Development Advisers
Our Initial Conclusions (continued) The four nature enjoying segments have core similarities :A nature experience is a major appeal of their holidays. They are after a very high quality, engaging experiences including new ones as well. They are all keen to get away from the crowds. Camping areas, BBQ/Picnic areas in quality locations appeal. Degradation of the natural environment are real switch offs. There needs to be other appeals satisfied as part of their trip (eating out, other sights). However, they also have very important differences :The younger segments (segment 2) - more active, some higher quality accommodation, time together (couples). With the families (segment 3) all the travel party must be catered for and enjoy the experience, parents and the kids, more self contained accommodation. The older affluent (segment 4) - no kids, close to nature, opportunities to interact with friends and rels on the same trip. The lower older (segment 5) - more a lower cost experiences, natural beauty, physically active, catering to the needs of both of the couples.
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Economic and Market Development Advisers
Disclaimer While every effort has been made to ensure accuracy of the data in this report, EMDA has not audited the data sources and therefore does not accept any responsibility in relation to financial and/or decisions based on this information.
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Economic and Market Development Advisers