Inbound Tourism
What is Inbound Tourism?
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Inbound tourism covers all international tourist traffic entering a country. It is also known as 'export tourism' (Australia is the export), recognising the contribution of international tourism to the export economy.

Inbound tourism is big business in Australia. During 2003, 4.7 million international visitors spent approximately $20 billion on Australian goods and services - which represents more than 11 per cent of Australia's total export earnings. The export value of Australian tourism products exceeds the export value of our coal, iron ore, steel and non-ferrous metals. The Tourism Forecasting Council (TFC) predicts that international visitor arrivals will reach 8.6 million by 2013 while the flow on benefits to the Australian economy in export earnings is expected to reach $27.9 billion.

Where to Start
As with any business decision, before you begin to market to inbound travellers, it is important to do some research and planning. You will need to:

  • Understand the travel distribution system and its rate structure
  • Research international markets to establish who will use your products
  • Recognise the different travel styles of inbound tourists
  • Develop a marketing plan to target international visitors through a range of media and distribution channels, and
  • Seek advice from your Local, Regional and State tourism offices.

Inbound vs Domestic
International tourists usually travel for longer and spend more money than domestic travellers, averaging $2,467 per trip compared to $530 per trip for domestic travellers according to recent research.

Although inbound markets are expected to increase, domestic tourism will continue to dominate Australia's tourism industry. The vast majority of Australian operators concentrate on marketing their product domestically and then market to international consumers once they have secured a foothold at home.

Detecting the Differences
While marketing your product to international tourists has many benefits, there are a number of differences between domestic and international tourism markets including:


Overseas consumers, particularly long haul travellers, may have limited knowledge of Australia

Marketing costs are higher overseas;

  • International markets vary considerably from country to country both in terms of travellers' needs and the structure of the travel distribution system
  • Itineraries are generally more complex than domestic itineraries
  • Selling travel products to the international travel trade usually requires a commitment to their pricing and commission structures over a long period of time
  • Language and cultural differences create additional challenges for both marketing and product delivery
  • Entering and establishing your business in the international market is a long term investment and it may take several years to recoup costs.

Know the Competition
It is important to understand that overseas markets are very competitive, often more so than the domestic market. Not only are you competing against companies that provide similar products, you are also competing against other international destinations. Therefore, it is recommended that you take a different approach to international marketing using different distribution channels and promotional media.

Limited consumer knowledge of Australia may lead to new promotional messages for your product that highlight the unique benefits of the destination and distinguish it from the rest of the world.

In the international arena, selling your region and educating travellers about your destination and its attributes is often the first step in selling your product.

Why Export Tourism?
Australia is one of the most desirable tourist destinations in the world and is number one on the list of 'dream destinations' for many international travellers. Export tourism allows tourism operators to diversify their markets and access new areas of business that may balance out regular domestic business patterns.

Benefits of Inbound Tourism
There are many benefits to export tourism including:

  • International travel patterns are not focused around weekends and may level out seasonality problems
  • Spreading risk across a range of international markets can minimise the impact of any changes in the domestic or a single international travel market
  • International travel market is growing and consumers from many overseas countries have expressed a high desire and intent to visit Australia
  • Inbound distribution networks open up new forms of distribution and give millions of potential travellers around the world easy access to your product
  • International travellers are generally higher yield and spend, on average, three times more than domestic travellers on each trip
  • Lead times are generally longer, allowing better business planning
  • Opportunity to meet people from a range of cultures and backgrounds and be an ambassador for your country can be extremely rewarding.
 
 
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