Investment in Australian tourism marketing pays dividends, a report commissioned by Tourism Accommodation Australia has revealed with a boost in spending of just $10 million worth an extra $240-$300 million to the economy.
In one of the first quantitative assessments of the impact of marketing spend on tourism numbers and the knock-on effect to the economy, the report reveals that every $1 million spent on international marketing resulted in a $16 million boost to the local tourism industry and broader economy.
The report, by Webber Quantitative Consulting, measured a range of economic outcomes based on tourism marketing expenditure over the past several years with results showing the direct impact on inbound tourism numbers, spending and employment in the tourism accommodation sector.
TAA managing director, Roger Powell, said the results showed that “advocacy pays”.
“There has been considerable debate over the impact of tourism marketing and its ability to drive greater visitor numbers and foreign income, and these figures make it clear that the investment in tourism marketing has a significant direct impact on the hotel sector and an even larger benefit for the wider economy through the multiplier effect,” Powell said.
“The research shows clearly that by increasing marketing and promotion of Australia that there is a substantial return on investment in terms of foreign revenue, Australian jobs and Government Tax receipts.”
The report acknowledged the challenges of the high Australian dollar and the the trend of visitors spending less each day but staying longer.
However, the report also acknowledged there was a point of diminishing return on marketing investment.
“The marginal estimates suggest that if Tourism Australia were to increase it’s spending on marketing and promotion by a further AU$10m then the wider benefits to the Australian economy, which includes tourism multiplier effects, would be in the order of AU$240m to AU$300m,” the report concluded.
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