Letter from Melbourne

12 July 2021

Our rst ‘new team’ edition Mr Alistair Urquhart, our Chairman Emeritus together with Michael Holzer and Hans van Pelt, welcome you to the latest edition of Letter from Melbourne.

We are expanding our rm to combine A airs of State with Strategic Executive Solutions to create a specialist, strategic advisory with long standing and proven digital services experience for the public and private sectors We will continue with monthly, electronic productions of Letter from Melbourne and Letter from Canberra. A airs of State will continue to produce our government charts series (Victorian and Federal), which set out the key stakeholders in government in a useful, time-saving publication that is part of our subscription model Alistair has reached so many people, with such relevant information for such a long time that we are thrilled to have his continued contributions. We trust you enjoy this wide ranging edition. We look forward to your feedback and meeting you soon. Digital, Derby

Letter from Melbourn A monthly public a airs bu etin, a simple pr cis, disti ing and interpreting public policy and government decisions, which a ect business opportunities in Victoria and Australia.

An Introduction Let us know what you think

For over 25 years A airs of State has produced our monthly newsletter to highlight important and relevant news for all decision makers.

Call Hans on 0438 280 724 or email us at

In a crowded news market we are not looking to create more opinion. Instead, we will continue to provide key topic and news summaries to help interpret relevant decisions and policies for today’s public and private sector leadership

alistair@a airs.com.au hans@a airs.com.au

We feel this is even more important now, particularly at a time where the public and private sector need to work together

michael@a airs.com.au

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more closely than ever before for the bene t of our communities, our society and our economy Therefore, straight into our next issue with the big question; What should public and private-sector leaders focus on next?

If leaders set the expectations that prosperity is possible, and act on it, then the State, the country, indeed the world could be on the cusp of a new age of growth in jobs and income.

Key areas of focus should include innovation, changes in consumer behaviour (ecommerce has increased multiple times prior to the pandemic), healthcare, increased industry involvement by government, shifting and disrupted supply networks and a return to air travel The road will be rough in places. The rst year of the pandemic and the policies designed in response have had an impact on how people view their governments, how well economies are positioned to rebound, and how much public and private debt has been accumulated along the way. Change in the above focus areas is already happening, and its faster compared to prepandemic times.

If we work together, if we add skill and experience within government organisations and if we align government agencies with the private sector more economic and social growth is achievable. “Us and Them” will not help To get us underway we hope you enjoy this edition of Letter from Melbourne and we welcome your feedback.

The May Victorian State Budget Throughout this crisis, government has become a lender, payer, and owner of last resort across a range of industries. Increased government activity has seen involvement in process and an increase in scrutiny as business learns to cope and bene t from increased government involvement in industries and organisations Victorian Treasurer Tim Pallas has delivered a state budget that forecasts economic activity to hit $503.6b in 2021/22, $17.1b more – the equivalent of $2560 for every Victorian – than forecast

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Net debt is budgeted to be $102.1b in 2021/22 – 20.3% of the state’s economy – with a budgeted increase to $156.3b by 2024/25.

As we expand and combine our Customer Services we can use more of our experience to improve HOW you do WHAT you do

Treasurer Pallas announced an expected spend of $342b over the next four years, including a $90b commitment to state infrastructure projects either commencing or underway Victoria’s unemployment rate is forecast to fall to 5.75% in 2021/22 before dropping further to 5.25% two years later. To help achieve the numbers the government commits $431m to support businesses and creating new jobs, including $250m in wage subsidies to help at least 10,000 jobseekers

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Mental health has a strong focus in this budget, with a new levy on businesses with more than $10m in wages nationally to help fund a record $3.8b spend on mental health overall. $1.6b to build 13 new Melbourne schools and upgrade 52 others and a $3.2b for public transport services and infrastructure are key spent commitments to improve service delivery and travel experience.

The small business payroll tax-free threshold will be lifted to $700,000 a year ahead of schedule, helping 44,000 businesses.

__//_ The budget sees a $1.3b commitment to continue the state’s pandemic public health response with further key commitments to women and children, sport, agriculture, city revitalisation, tourism demand generation, the environment and bush re prevention and impact reduction.

Strategic Executive Solutions is a Digital and Strategic Services Consultancy that delivers long-term business bene t to our Customers by aligning technology with business strategy

Inflation Consensus G20 nance ministers and central bank governors are convening in Italy to tackle the world’s greatest challenges, including ending the pandemic and building a solid, inclusive economic recovery. In ationary pressure and interest rates are on the agenda, along with these key topics that are relevant to our time • securing global health and fuelling economic recovery • the link between the digital revolution and productivit • climate change ris • establishing global frameworks for tax refor

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The Victorian May budget highlighted cost overruns in major construction projects. Governments and industry have recently described the building trade as a strong in ationary environment.

Over the last few years there has been cross-market thinking that in ation is unlikely to return in a signi cant fashion. As we enter the next important, recovery period there seems to be a risk that the consensus on in ation increasing is clearly at risk of breaking down as a range of alarm bells ring across the market

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These alarm bells, in construction, trade and other sectors are built around higher levels of infrastructure development to boost economic activity, low interest rates, a limitation on skilled resources and an increase in new construction approvals overall.

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James Hardie CEO, Jack Truong, stated “in ation has arrived” when announcing the company’s latest nancial results. Mr Truong further stated that cost overruns in the construction industry had become common and that James Hardie has priced in ationary impact with an extra $US150m in cost increases relating to raw materials and freight price uctuations

Bio, Michael Holzer: Michael is a highly quali ed Governance and Assurance consultant operating at a program and whole of business level.

Media commentary on in ation increases, higher interest rates and a potential near term economic correction period are more prevalent. Many businesses are now reviewing risk pro les to include forward economic volatility that may impact pro tability, viability, sustained growth and cash ow.

Michael has an extensive track record in digital transformation and innovation across many projects in the public and private sectors.

Freight Issues It is fair to say that freight issues are impacting widely across the economy.

With over 25 years industry experience working domestically and international for large Australian and International organisations Michael has successfully led Strategic Executive Services since 199

Inbound and outbound supply chains are broken, su ering from signi cant congestion and the impact of rapidly increasing freight costs.

Available space has taken dominance over price, which has increased four times or more inside the last year for many exporters and importers In the next six months, freight issues are forecast to be worse.

Solutions for communities and business, freight consolidation

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and available airfreight for high value, highly perishable exports are much sought after Simply, globally on the sea and in the air demand has signi cantly outstripped supply.

With more time at home consumers have signi cantly increased online purchasing and thereby freight demand at a time where many business sectors are also demanding more freight space to meet growth. Add a much higher volume of prioritised medical supplies and freight demand increases rapidly, with industry looking at modelling and forecasting long term demand levels before additional freight capacity decisions are executed.

Bio, Hans van Pel Hans has extensive public and private sector leadership experience, including recovery and crisis management experience gained in both sectors through the COVID-19 perio

International Air Freigh

Hans is a strong decision maker and negotiator with signi cant strategy, communications and business development experience. In his most recent role Hans led, as CEO, recovery of Launceston Airport in a role that is also part of the Melbourne Airport Senior Leadership Team

Airfreight remains heavily dependent on decisions to resume global, international air travel. The Federal government International Air Freight Mechanism program remains to help secure space and manage increasing airfreight cost at a time to increased demand and reduced supply capacity Air freight has always been more expensive compared to sea freight with a multiple of 12 times being a solid comparison.

Recent reports, as a result of the increases in sea freight rates has seen that multiple drop to 6 times, and airfreight pricing has also increased as demand outstrips supply and as international airline operators have been impacted by pandemic travel restrictions.

Hans, like Michael has led a bunch of other stu in Australia and in Asia.

An airline example to consider. Prior to COVID-19 Cathay Paci c carried more than 150,000 passengers per month between Australia and Hong Kong on 344 return ights. In March this year the airline operated just 30 return ights transporting fewer than 400 passengers

Need help? Alistair, Michel and Hans are here to do just tha

Cathay Paci c, like many international airlines has been signi cantly impacted through the pandemic crisis. Fewer aircraft are available and they will generate better earnings from carrying passengers, not freight only The majority of cargo own around the world is on passenger aircraft. With much reduced supply, airfreight rates are higher, the just in time option for airfreight (and sea freight) is e ectively gone. High value, perishable exporters and other

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organisations reliant on airfreight solutions are advised to plan their logistics needs well ahead of time.

The 2020-21 summer saw much reduced airfreight capacity with very little international air travel. The 2021-22 summer is likely to see a further reduction in airfreight capacity as a smaller international airline eet is redirected to recovering passenger markets elsewhere around the world.

There is a likelihood that other countries will open before Australia reopens international borders, impacting available air capacity Conditions around an Australian border when it does open, eg quarantine requirements, will impact inbound demand the return of passenger aircraft capacity. Demand success and the opening of other global markets ahead of Australia will also present a risk that aircraft will be available in much smaller numbers when Australia does resume international air travel.

Consumer con dence in the ability to travel is a major factor in the restoration of long haul passenger services that provide additional freight space.

Sea Freigh Most conversations in this area begin with the phrase “I have never seen it as bad as this” The level of stress in international ocean freight is signi cant on many levels and is a global situation.

To put it quite simply, world trade volumes have increased and demand, combined with pandemic measures has seen much congestion throughout global logistics markets Demand is a re ection, primarily of increases in e-commerce that post pandemic may share shift back, at least in part, to brick and mortar outlets New freight capacity is not entering the market when needed.

Demand levels are being assessed to determine long term future demand models, which impact decisions to acquire and build new vessel and port capacity Industrial action, port congestion, equipment imbalances and competing world trade lanes has seen equipment shortages and space restrictions on all countries, Australia is impacted heavily.

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Congestion in ports has seen shipping schedules change with load omissions, short shipments and roll over at transhipment ports becoming a daily event.

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Over the last 12 months, the pain has been felt considerably by importers with constant delays particularly from Asian. This has been compounded with rapidly increasing freight pricing.

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Importers should now look to import inventories in greater volumes to minimise disruption, decisions which will have wider business impact factors.

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Exporters are being restricted to the number of containers allocated to them on certain trade lanes. Ports in various countries are being restricted or even removed from vessel calls due to congestion issues.

Our usually safe and reliable trade between Australia and New Zealand is one of the worst hit with ships often departing leaving behind large volumes of containers just to try to recover schedule integrity.

These challenges produce an upward trend of freight charges as the market becomes more and more constrained. The impact on business is becoming worse and it can genuinely threaten recovery and jobs.

A airs of State recommends the fo owing • Long term forecasting and planning is essential – inform your freight forwarder, shipping line representative and transport provider of shipment as early as possible • Forecast with your freight forwarder your next year in export and import planning • Do not rely on “just in time shipping”. Delays for export and import cargoes have to be planned and expected. Direct shipping lanes are over-booked, and expected departure date delays could be as long as four week • Consider ordering early and holding more stock at your premises or external warehouse. Whilst this is understandably di cult in relation to cash ow and additional cost of storage, the balance between having stock on hand to minimise freight impact should now be considered.

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• Expect increases in freight costs. At present, export and import freight charges are changing regularly, upward

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• During peak import times, rates can change fortnightly. and this could impact margins from traditional quotation timelines • Be aware of the free time conditions for use of your container during packing or unpacking. With shortages of equipment, the shipping lines are not as agreeable to free time extensions Victorian and Tasmanian businesses are reporting that ongoing freight issues will impact jobs, post pandemic recovery, price in ation and con dence.

New export market diversi cation and new import sourcing channels, not just as a result of the China geopolitical issues, are being impacted with di culties in securing e ective cost to market solutions

China Trading Australia's relations with China are amongst our most important foreign policy issues. China is maintaining rapid economic growth making the country a key trading and investment partner for Australia. China’s success is increasing Beijing con dence in asserting its position in regional and global a airs.

Since the 1980s China and Australia have built up a range of common bilateral and regional interests, including strong economic ties most recently formalised with the ChinaAustralia Free Trade Agreement (ChAFTA), which entered into force on 20 December 2015.

China views individual bilateral relations in the context of wider global issues. For example, Australia’s alliance with the US means that Australia's relations with China are linked to the health of the US-China relationship China has blocked timber exports from Victoria and well as Queensland, South Australia and Tasmania. Australian coal, barley, beef, concentre, sugar, wine and lobster have su ered a similar fate

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There's been no change to the Government's response to China's imposition of trade restrictions since diplomatic relations became more di cult, some rhetoric suggest that China will use its market power to leverage change from Australia

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Market diversi cation is now more important than ever. Other countries are stirring, ready to replace Australian exports to China wherever they can, whenever they can

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Overall Australia trade data does not look that bad.

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As the pandemic was spreading across the world, Australia and China relationship uctuations impacted heavily on some exporters, on the visitor economy and on the international education sector as a whole.

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But the latest trade data shows China's trade restrictions do not pose an immediate threat to Australia's economy From a broader macroeconomic perspective overall market disruption is minimal. Hard data doesn't lie. The latest gures should provide the Government with con dence and some time to work on relations with the nation's biggest trading partner.

It has taken many years to establish many export channels to China. Most businesses don’t want to decouple from China.

But it’s a challenge they may have to face, particularly when face to face market engagement remains impossible

Facts on Asia today & tomorrow McKinsey and Company recently produced an interesting perspective on their view on how Asia’s standing and importance is changing McKinsey claims that the economies of Asia are now larger than the rest of the world combined. Asian markets trade more now within the continent than with the rest of the world combined 210 of the world’s 500 largest companies are Asian, Asia accounts for half of the world’s 2.2 billion internet users and Asia is home to half of the world’s 3.2 billion middle class population.

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By 2030 Asia is forecast to be home to 65% of the global middle class and account for nearly 40% of global consumption. Consumption growth continues as an important factor in overall Asia economic growth.

Digitisation across the Asian economy’s signi cant, with around half of the Asian gross domestic product forecast to be derived from the digital economy.

Asia, and its many di erent markets and cultures are important to Australia’s market exports and imports. Many long standing supply lanes and trading relationships are disrupted and much market diversi cation is being sought.

More change, collaboration and innovation. Are we ready

Migration and a new Salary Theme On May 31, 2021 The Age newspaper reported that under the federal government’s skilled visa program, employer-sponsored visas will be lifted to 23,500 from 22,000, the regional visa will be expanded by 17 per cent to 13,150 positions and an extra 1,000 visas will be available through the skilled independent visa.

The Federal government has cut the number of people on its global talent and business investment schemes. These changes to the various skilled visa programs are being made as the country faces a net exodus of people.

Government is communicating that variation in the make-up of the skilled migration scheme to deal with economic issues are possible and that such changes can be worked through with government and through migration agents.

The Age, and other entities have reported that a ‘‘normal’’ level of migration is not expected until 2024-25. This timeline coincides with many forecasts on the return to pre-COVID levels of international passenger travel to and from Australia, which is unlikely to commence in any signi cance until midlate 2022 Migration is adding to the issue of resource availability, selected increases in skilled remuneration and some overall di cult decisions for leaders and remuneration committees.

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The annual salary guide from recruitment rm Hays shows that circa 67% of employees will increase salaries in their next review, up from 45% over the last review period.

Employers are reporting an increases the range of 3% but circa 12% of Australian employers are indicating increases greater than 3% to meet growing demand for skilled resource, employee attraction and employee retention.

Sectors such as property, technology in di erent parts of Australia, are pointing to sizeable increases for certain roles.

E orts to entice domestic migration are high in certain scenarios, particularly with regard to regional dispersal demand, and subsequent growing regional infrastructure commitments. Supply of regional housing may become an issue for some destinations.

Need help with any of this?

Need help? Alistair, Michel and Hans are here to do just that, or we might be able to point you in the right direction

Long term resource planning and cost uctuations should be part of shorter term recruitment and workforce policy decisions.

Two straight years of negative net migration will be impactful, with fewer people shopping, buying homes and taking skilled jobs some organisations are already struggling to ll. Returning Australians and a number of temporary visa holders in Australia prior to the pandemic has helped but the halt of migration will have an impact across the economy.

Give us a call……we are here to help and we can certainly add more advice in future editions of Letter from Melbourne

However other money is remaining in the domestic market.

Traditional spend by Australians travelling to international destinations outweighs spend from international visitors coming to Australia by more than $50 billion according to Hobart based economist Saul Eslake.

This is helping (along with stimulus and low interest rates) to drive strong growth across a range of sectors in our economy. It is also why business in these growing sectors is looking at future retention of new business levels and being able to maximise returns from current demand increases in a world where supply chain networks are impacting negatively

ICT Strategy, Digital Transformation & Cyber Security A message for A airs of State customers. With ICT strategy and digital transformation so important and current we are

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combining the work of A airs of State with our Strategic Executive Solutions rm The rise of digital will impact the future of work, the future of consumer behaviour and multiple business and government decisions. It is important to understand this in detail as part of future business and organisational planning Strategic Executive Solutions Pty Ltd is an Australian owned and Victorian headquartered Management Consulting and Professional Services organisation, specialising in the deployment of senior consultants in roles where they will work closely with teams of client personnel to identify and to achieve organisational goals, through the strategic alignment of objectives with current and emerging technology capabilities Strategic Executive Solutions was established in Melbourne in 1999 and it has remained committed to the Victorian marketplace. In Melbourne we have approximately our clients include • Australian Geospatial Intelligence Organisatio • Bendigo Health • Melbourne Sports Physician SUBSCRIBE NO

• Royal District Nursing Service (RDNS • The Salvation Arm

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• Country Fire Authority and the Metropolitan Fire Brigad • Department of Justic

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• Department of Human Service

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• Department of Defenc In all cases we o er Strategic and Tactical advice for the implementation of systems and solutions. With a broad range of capabilities including • Strategy and Advisory • Project, Program and Portfolio Management • Architecture and Solution Services, • Business Analysis, and • Cyber Securit

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What does government and industry and digital transformation actually mean Digital transformation highlights a major challenge for governments and for industry as they move to develop digital platforms to support core service delivery There is a huge strategic opportunity for governments to develop deep ecosystems around these platforms and build large provider economies, o ering citizens innovative features and driving true digital transformation Part of digital transformation is the creation of rich real-time data from government and industry platforms. For example, this real-time data ow could be the key to future regulation and operations, giving decision makers instant insight into how markets are operating and consumers full transparency to make choices We have already seen the power of this thinking with the Australian Tax O ce’s single-touch payroll platform. The platform integrates with all the major accounting software packages, enabling pre- lling of forms and radically streamlining tax payments It was the real-time data from this platform that guided the national cabinet’s early response to COVID-19 The core policy issue for governments is where do they play This was highlighted in 2015 by one of the best thinkers about the impact of virtualisation on the broader economy, Boston Consulting Group’s Philip Evans. His and Patrick Forth’s Borges’ Map: Navigating a World of Digital Disruption is “a must-read for anyone wanting a strategic framework to think about how next phase of digital is likely to play out” Evans highlighted that government is both a steward of this new system and a potential provider/player. The critical issue, he says, is to understand what part of the stack government wants to play on A simple but frustrating example, playing out in NSW. There is clear consumer and system bene t if everyone can tap the parking data platform that the sensors and meters throw out.

Transport Minister Andrew Constance has claimed looking for parking costs us an average of 130 days of our life

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The practical issue is that if councils are left to their own devices, consumers will need to download a bunch of apps, thwarting take-up and frustrations.

A NSW app outcome is to develop an open data platform everyone can play on. But in the meantime, the industry is split, with claims of government monopolisation. Planning, analysis and mapping is key to developing any system and this solution is being keenly watched by other states, the big councils and major parking venues such as sports arenas, universities and shopping malls The design of digital infrastructure will increasingly be a critical policy issue for governments, as well as a source of major business opportunities For example with both the federal and NSW governments mandating electronic invoicing from next year, core private business systems will be integrated into government According to Deloitte Economic, it costs businesses about $30 to process a paper invoice and $27 for an emailed PDF invoice, so the embrace by big government of e-invoicing is going to inevitably follow More than 1.2 billion invoices are exchanged in Australia annually, 90 per cent manually A airs of State and Strategic Executive Solutions can help with digital transformation. Experience, knowledge and overall long term strategy is key. Public and private sector leaders need to understand much more, not less, about digital take-up in their organisations.

What is happening, what could be happening and at what speed can we move, remembering that speed of deployment and decision making is a choice and an outcome We would argue that for many companies and government organisations, this is a real strategy moment Digital is here to stay

Long Term Models and Return to Work

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We will dig into this more in later issues. LTM and WFH are long term models and work from home. What does it mean and why are there consultancy and business transformation and business restructure projects in these areas starting out at frantic pace What is the plan? How is this linked to digital transformation, to the way we work and to pro tability and operational e ciency?

Lets highlight this section with information from Deloitte Economics on workforce return to Melbourne’s CBD. Central Melbourne will have fewer workers than before the pandemic for at least another four years, despite signs the city’s economy is showing signs of recovery A report for the city council has revealed the CBD economy will take at least another three years to return to its prepandemic strength Recovery from the worst of 2020 has already begun with the economy growing by $6 billion this year The return of workers to central Melbourne will continue to be slow, the research by Deloitte Access Economics found The data showed that an estimated 189,100 workers a day would return to the city over the course of 2021 – about 56 per cent of the total workforce And even by 2025, 332,600 workers were predicted to be working in the city each day, still 19,700 fewer than 2019 levels This highlights more challenging facing public and private sector leaders.

Is change now required in long term operating models that factor value creation or revision, a di erent operating structure, market diversi cation, M&A, workforce skill development, changes in management Much the same applies to WFH solutions, what is the plan to create organisational optimum e ciencies whilst maintaining and developing workforce skill, wellbeing, retention and succession

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Are you ready, is anyone really ready to do this well? Has, or is the work being done to nd how WFH and a revised LTM interact In the likely event the answer to that is no, it may p[ay to consult an advisor before funding is committed to organisational, workforce and digital solutions that do not comply with the most e ective Long Term Model

Nominate your Super Beneficiary A very good reminder this month as Hans changed employment status. Did you know that your super isn’t automatically treated as part of your will if you pass away? It is usually managed separately by the super fund trustee What does this mean and how does this a ect you If you unexpectedly pass away and have not nominated a bene ciary, your family will need to complete the paperwork to gain access to your super funds. However, if you have a bene ciary nominated, they will have the ability to manage how your super money is distributed There are two main types of bene ciary nominations • Non-binding: your nomination is considered, but the trustee still has the nal say about how your super money is distributed • Binding: the trustee must pay your super according to the way you’ve speci ed, provided your nomination is valid.

Some binding nominations only last three years, then they become non-binding We encourage you to login and review your super with your respective provider and nominate a bene ciary if you don’t have one nominated. If you’ve previously made a bene ciary nomination, it is also a good idea to review it every so often – especially if your circumstances have changed

Tasmania With Hans van Pelt having signi cant recent experience as the Access Director for the Tasmanian government, being a current director at the Launceston Chamber of Commerce and as the

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CEO of Launceston Airport through the COVID-19 pandemic we are keen to expand our business model into the Apple Isle Hans resides in Launceston as well as Melbourne Premier Gutwein’s Liberal government has just been re-elected with a majority for a third consecutive term. The government has managed the COVID-19 pandemic well, with di cult decisions across a range of factors including the closure of the state border.

The Tasmania economy, as reported by Commsec, had become the leading state economy in the period pre-COVID. All macroeconomic factors were performing well and the Tasmanian trade and visitor economies were booming Tasmania has begun the important recovery period. Many of the challenges described in this edition of the Letter from Melbourne impact Tasmania greatly and we look forward to doing our bit to helping recover Tasmania as a whole and, to do what we can for the North of Tasmania, an incredible part of the country with much potential and so many reasons to visit for a short or a long stay Speaking of visit, Derby in Tasmania. As a sign of what happens when communities work together to create demand this is one incredible story, published in The Australian on June 18 2021 Six years ago, Derby was a two-pub town of 173 people where you’d be lucky to stumble across a decent pie. Nothing much had happened there since the tin mine closed in 1948. With an unemployment rate north of 20 per cent, when the national gure was south of seven, it was a dirt-poor town in Australia’s least a uent state. The median weekly household income was just $556, $882 below the national average. With a median age of 58, its residents were, on average, two decades older than the rest of the country.

Then came the resurrection.

In 2015, just before the last Census, the rst in a series of highquality mountain bike trails was quietly opened by the council in the stunning rain-forested hills above Derby. Word spread that they’d created something special and cyclists began arriving from the mainland. Things started to snowball. More trails were built. In 2017 Derby hosted a leg of the Enduro World Series, a premier mountain bike event in which the

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world’s 50 best riders were competing. These elite riders voted Derby the best trail in the world. Cyclists started ying in from around the globe Four years later it has blossomed and Derby now has the zing and the vigour of a bustling alpine ski village. It’s been a raging success. Derby is now the sort of place where young folk happily spend their gap year, a great story that resonates what Tasmania has become this decade.

Destination Access Plan Also for another issue and particularly important for tourism and visitor economy recovery. Hans was part of a team that did so well with an e ective destination action and demand generation plan that saw signi cant increases in the Tasmania visitor economy Tasmania is a great case study and example of creating year round demand appeal.

Collaboratively Tasmania highlighted a range of strategies, stakeholders, events and regions to e ectively build a brand that generated demand and which, to date, has seen a strong post pandemic recovery The work, for further domestic and international visitor demand recovery and generation is to combine and overlap key target market demand generation activities. Tourism demand, investment attraction, trade, migration, international education and visitation to reconnect with friends and family can be combined as it is often sourced from the same cities and regions.

It does work and, it balances out necessary inbound and outbound demand that in turn delivers optimum airplane capacity levels and travel and freight cost price structures

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Other News and loose ends…..

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• Between January and March 2021 destinations around the world welcomed 180 million fewer international arrivals compared to the rst quarter of last year. Asia and the Paci c continued to su er the lowest levels of activity with a 94% drop in international arrivals over this three-month perio

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12 July 2021

• A very positive development in Australia’s economic recovery is the increases in consumer spending and business investment. In turn, that is helping business to strengthen balance sheets and con rm investment decisions on machinery, equipment and a range of other assets to further drive recovery. Stimulus induced business investment has been reported at 4% growth for the March quarter.

• Andrew Forrest has joined Atlassian co-founder Mike Cannon-Brookes in the Sun Cable project that aims to power Singapore from a solar farm in the Northern Territory.. The project should position Australia, Singapore and other ASEAN markets as world leaders in intercontinental transmission of renewable electricity • Exxon Mobil Corp. and Royal Dutch Shell PLC su ered legal defeats as part of pressure on the oil industry to address concerns about climate change. A Dutch court found that Shell is partially responsible for climate change, and ordered the company to reduce its carbon emissions. Hours later in the U.S., an investor with sustainable development goal focus won at least two seats on Exxon’s board, a move could require Exxon to alter its fossil-fuel focused strategy • Thailand has begun a mass vaccination drive with the target of vaccinating 70% of its residents by the end of the year to prepare the tourism reliant nation for a wider reopening from next year. Thailand plans to administer about 500,000 shots per day from June 7, well ahead of the average 100,000 daily average vaccine shots administered to date. Sound familiar?

• Sport, such a motivation for so many and none better than the Ash Barty Wimbledon win and, in NZ the victory by NZ Cricket as the inaugural world test champions.

• A sing of things to come? A real-life conversation with a friend on the content for a large new house build. Under active consideration is the placement of no (zero) large screen TVs. This family currently owns six large screen tv units but considers personal devices will su ce. Is this a sign of things to come, or already here!?

Its OK not to be OK

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Re ecting how globally we are dealing with similar issues a touching Letter from Manila, published in Singapore’s Strait Times provides a comparable analogy that we would like to share It is OK not to be OK, especially in the situation we now have.

The scars in our collective psyche will remain long after the pandemic has passed. There is no vaccine that can magically prop up our mental health, but help exists It is OK to seek help, it works and it is not a sign of weakness or instability. Giving voice to quiet despair can be the rst step to healing.

We are always here for a chat to share our thoughts and actions in this space. It is OK

A Final Thought - Maintain Focus In a 1996 advertisement for what is now an outdated technology, visitors to a zoo are busily trying to focus their fancy SLR cameras to photograph a fast-paced primate.

While they try to get their equipment focussed, the primate instead whips out a Kodak disposable camera and takes a photo of the visitors instead… the slow-movers lost their opportunity…..as did Kodak in years to follow It’s all about focus. Right now there is much blame, much asscovering, much opinion and much expert advice, which is often di ering on the same topic We need to focus on moving on. Private and public sector entities more than ever need to create partnerships to deliver social and economic recovery Individually public and private sector entities are unlikely to have the skills and the breadth of vision across multiple parts of the economy and the community to come up with the best next steps.

The public and private sector together creates the best experience and capability, the best focus on the things that should be prioritised and done Collectively we can better focus on creating the best recovery strategies as we collectively start the all important next 12 month recovery period

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We are here to help where we can, or to point you in the right direction when we can’t.

Till next month, Best regard Alistair, Michael and Hans

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