Name and date of act or regulation
South Australian Tourism Commission Act 1993
(1) The Commission must, on or before 30 September in every year, forward to the Minister a report on the Commission's operations for the preceding financial year.
(2) The report must contain—
(a) the audited statements of account of the Commission for the preceding financial year; and
(b) a report on—
(i) the state of tourism and the tourism industry in the State; and
(ii) the Commission's plans and the extent to which they have been implemented; and
(iii) the extent to which the Commission met the targets set in the performance agreement for the preceding financial year; and
(c) any other information required by or under the provisions of this Act or any other Act.
(3) The Minister must, within 12 sitting days after receiving a report under this section, have copies of the report laid before both Houses of Parliament.
(i) the state of tourism and the tourism industry in the state
Tourism is an economic priority for both South Australia and the Marshall Liberal Government. The sector makes strong direct and indirect contributions to jobs and economic prosperity in South Australia.
Tourism is the lifeblood of our State and transcends across many sectors. Its impact can be felt across cafes, restaurants, retail establishments, accommodation providers, transport services, bars, tour companies, the arts and events - across metropolitan and regional South Australia. It encourages future investment in education, real estate and in many instances migration, all critical to growing the State’s economy.
Our sector is represented by 18,000 tourism businesses and tourism jobs have grown by 5,000 since 2013. This means we are also well on our way to growing tourism jobs by 10,000 by 2020.Tourism is especially important to regional economies – 41% of visitor expenditure occurs in regional areas, well above their 23% share of population.
Gross State Product in South Australia grew by 8%, while tourism grew by 28%. Tourism outpaced the overall South Australian economy in other key economic measures including Consumption, Output and Gross Value Added.
We have experienced unprecedented growth in visitor expenditure with our visitor economy at a record $6.7 billion. Our visitor numbers are breaking records, with the year ending March 2018 welcoming 6.9 million international and domestic visitors.
In 2017-18, the South Australian Tourism Commission (SATC) has been focused on delivering a range of projects and initiatives, all fueling the road to our 2020 target of $8 bn in tourism expenditure.
Our marketing focus continues to be on key markets like the United Kingdom, United States, New Zealand and Germany, as well as on emerging markets like China. Chinese travellers are the fastest growing inbound market for South Australia, with 57,000 visitors spending a record $415 million. A key initiative that has delivered strong results in the Chinese market has been signing of Huang Xiaoming as our Tourism Ambassador. Feedback from our operators has been extremely positive and many are reporting an increase in enquiries and bookings directly because of the Huang Xiaoming phenomenon.
Food and drink are amongst our State’s best assets and we’re constantly seeking ways to stimulate the appetite for SA. Our investment in MasterChef SA Week has served as a strong showcase of South Australian produce, talent and innovation. The show achieved an average nightly audience of 1.16 million viewers (including TV, online and catch-up TV views) with a total TV audience reach of 5.2 million equating to 23% of the Australian population. The impact it will have on international audiences is still to be measured.
To capitalise on our investment in MasterChef, Celebrity Chef and MasterChef Australia judge, Gary Mehigan has been signed on as a South Australian Tourism ambassador. As part of his role, Gary will be involved in campaigns to be rolled out both interstate and internationally. This initiative forms part of an ongoing strategy to promote the State as the country’s premier food and drink destination.
Digital marketing is a strong focus for us and recent results speak volumes about our successes in this area. Our Facebook audience has grown to over 1.3 million fans ranking second among Australian State Tourism Organisations and our consumer website southaustralia.com has recorded 5.4 million visits, an increase of 43 percent on the previous year. Of these visits, there have been 433,213 leads generated to South Australian tourism operators and trade partner websites. These statistics highlight how relevant content and the right digital strategy is making real time impact for operators and partners.
Direct air access continues to be a focus and as of June 2018, international flights to Adelaide were at 46 per week-. This equates to around 12,000 international seats to Adelaide each week. Air New Zealand has confirmed that from November 2018 all flights between Adelaide and Auckland will be operated using the new Dreamliner aircraft. We are also working closely with Adelaide Airport and are committed to explore the possibility of bringing a new US carrier service to Adelaide. China Southern Airlines has also announced plans to increase flights to between five and seven flights per week from October 2018 to February 2019 and maintaining five flights a week on an ongoing basis thereafter.
Domestically, Jetstar introduced direct flights between Adelaide and Hobart, operating three weekly return flights between the South Australian and Tasmanian capitals from November 2017. FlyPelican introduced a new service between Newcastle (NSW) and Adelaide operating three weekly flights each week – the first regular airline service between the two cities.
A Regional Visitor Strategy identifying strengths and future growth potential has been launched in 2018, outlining opportunities to grow South Australia’s regional visitor economy by $1 billion and create 1000 new jobs.
A South Australian Cruise Ship Strategy 2020 has been developed by SATC to ensure our State continues to be a national leader and destination of choice by cruise lines visiting Australia. The 2017-18 cruise ship season commenced on 14 October 2017 and concluded on 30 March 2018 with a record 65 cruise ship visits with a total of 150,612 passengers and crew. This included 37 ship visits to Adelaide (including four overnight visits), 19 ship visits to Kangaroo Island (Penneshaw) and nine ship visits to Port Lincoln. In the coming season South Australia is expecting a record 86 cruise ship visits including 46 to Port Adelaide, 30 to Kangaroo Island and 14 to Port Lincoln - welcoming up to 180,000 passengers and crew.
Events, both leisure and business continue to be a strong focus for the tourism sector. As of December 2017, the economic impact delivered by key leisure events reached $396 million. The SATC’s managed events have achieved great results for our State. The 2018 Santos Tour Down Under attracted a record 46,000 visitors from interstate and overseas who travelled specifically to South Australia for the event, generating an economic impact of $63.7 million, creating the equivalent of 774 full time jobs.
The 2018 Adelaide 500 event was the largest since 2015. More than 273,000 event-goers poured through the gates to celebrate 20 years of the event in Adelaide. This event, which fills our hotel rooms in the Mad March period combined with the recent developments at The Bend Motorsport Park, is a strong testament to our motorsport credentials.
The 2018 Tasting Australia event saw nearly 5,000 interstate and almost 3,000 international guests experiencing the leading South Australian festival celebrating our State’s amazing food and wine scene. The interstate and international visitation amounted to just over 41,000 room nights, with more than 54,000 people experiencing the free festival hub in Victoria Square. The 2017 Credit Union Christmas Pageant saw 330,000 people line the streets to kick off the festive season. The Adelaide Fashion Festival continued to provide a platform to South Australian designers to showcase their skills to the world while generating an estimated PR value of $19 million.
The Bid Fund initiative has also been a major contributor to the tourism sector – with almost $695 million economic benefit to South Australia.
Through the Leisure Events Bid Fund, South Australia has secured 54 leisure events with an estimated economic benefit of $245 million. Among these event wins were significant sporting events, like the ISPS Handa Women’s Australian Open being held in South Australia until 2020 and the ICC World T20 men’s semi-final in 2020.
The Convention Bid Fund has successfully secured more than 70 major conventions to South Australia since it began, attracting over 90,000 delegates and contributing nearly $450 million in economic benefit to the State. Events secured include the World Congress on Medical Physics and Biomedical Engineering conference for 2024 with over 2500 delegates. Adelaide beat four other contenders in Japan, Argentina, Columbia and Mexico to win this important conference which has great synergies for us - bringing together artificial intelligence, proton therapy and big data for improved health care among other things.
The SATC is committed to growing the visitor economy, growing jobs and driving demand for South Australia. We will continue to work with the State Government and our industry partners and operators to grow tourism to $8 billion and deliver an additional 10,000 jobs by 2020.
(ii) the Commission's plans and the extent to which they have been implemented
This information is outlined throughout this Annual Report and in part iii below.
(iii) the extent to which the Commission met the targets set in the performance agreement for the preceding financial year
To view the SATC’s Board Performance Agreement and the report on the SATC’s progress against the objectives outlined in the agreement, visit its corporate website.