(triumphant music)
(triumphant music)

- [David] Hi, I'm David Smith, manager of strategic research
- [David] Hi, I'm David Smith, manager of strategic research

and analysis with Tourism Research Australia.
and analysis with Tourism Research Australia.

We're actually a small but important part of Austrade
We're actually a small but important part of Austrade

and that job is to provide national leadership
and that job is to provide national leadership

in tourism statistics.
in tourism statistics.

Turning to Austrade more generally,
Turning to Austrade more generally,

our goal is to boost national prosperity,
our goal is to boost national prosperity,

supporting the objectives of Australian
supporting the objectives of Australian

businesses seeking export opportunities
businesses seeking export opportunities

and facilitating more direct investment.
and facilitating more direct investment.

By international standards Australia
By international standards Australia

is still a very small country.
is still a very small country.

What I say geographically, we have a small, spread out
What I say geographically, we have a small, spread out

population and we're always challenged by the
population and we're always challenged by the

economic powerhouses of Europe, Asia and North America.
economic powerhouses of Europe, Asia and North America.

But, as I'm sure you'll agree,
But, as I'm sure you'll agree,

we're also a very smart country.
we're also a very smart country.

In a more connected and competitive world the service
In a more connected and competitive world the service

we offer are critical in bringing international
we offer are critical in bringing international

business to Australia's door and strengthening
business to Australia's door and strengthening

Australia's business environment,
Australia's business environment,

and that's what is appealing about our challenge.
and that's what is appealing about our challenge.

For the SME's involved our challenge is attractive
For the SME's involved our challenge is attractive

in three important ways.
in three important ways.

First, it offers the opportunity for innovation.
First, it offers the opportunity for innovation.

Second, it has a very strong commercial potential.
Second, it has a very strong commercial potential.

Finally, you can make a real difference to our
Finally, you can make a real difference to our

tourism investment and policy environment.
tourism investment and policy environment.

There are of course many positive associations with tourism,
There are of course many positive associations with tourism,

but at it's core, tourism is a very serious business.
but at it's core, tourism is a very serious business.

To put this in perspective, it's our largest
To put this in perspective, it's our largest

service export by far, and currently it accounts
service export by far, and currently it accounts

for one in 20 Australian jobs.
for one in 20 Australian jobs.

That figure stretches out to almost one in 12 when you
That figure stretches out to almost one in 12 when you

factor in indirect effects of tourism.
factor in indirect effects of tourism.

It's also out performing most other sectors of the economy.
It's also out performing most other sectors of the economy.

In fact Deloitte called it one of Australia's
In fact Deloitte called it one of Australia's

super gross sectors, it will drive new jobs and help
super gross sectors, it will drive new jobs and help

diversify our economy in the future.
diversify our economy in the future.

This performance is fueled by a strong
This performance is fueled by a strong

investment pipeline, helping domestic demand,
investment pipeline, helping domestic demand,

and rapid international growth in competitive numbers.
and rapid international growth in competitive numbers.

Which is coming off the back of a surge in global middle
Which is coming off the back of a surge in global middle

classes, open sky arrangements and falling air fares.
classes, open sky arrangements and falling air fares.

To thrive in this changing, challenging and growing
To thrive in this changing, challenging and growing

environment you need evidence insights
environment you need evidence insights

to support informed decision making.
to support informed decision making.

This is particularly the case for investors.
This is particularly the case for investors.

For example, the cost of constructing a new resort or
For example, the cost of constructing a new resort or

five-star hotel can nearly run into the hundreds of millions
five-star hotel can nearly run into the hundreds of millions

of dollars, and even if you're building a casino you
of dollars, and even if you're building a casino you

don't want to gamble on where to invest future growth
don't want to gamble on where to invest future growth

prospects of your local competition.
prospects of your local competition.

But our data isn't always suited to the needs of these
But our data isn't always suited to the needs of these

clients, many of them are based over seas
clients, many of them are based over seas

and lack that important local knowledge.
and lack that important local knowledge.

We do have some very good demand
We do have some very good demand

site measures from our various tourism surveys.
site measures from our various tourism surveys.

This includes the National Visitor Survey covering
This includes the National Visitor Survey covering

around 120,000 Australians each year.
around 120,000 Australians each year.

And there's Internal Visitor Survey of around 40,000
And there's Internal Visitor Survey of around 40,000

departing over seas tourists.
departing over seas tourists.

Both of these surveys are long running, well regarded
Both of these surveys are long running, well regarded

data collections, but our supply site measures on
data collections, but our supply site measures on

accomodation, labour, transport and investment only
accomodation, labour, transport and investment only

reflect a subset of the visitor economy and fail
reflect a subset of the visitor economy and fail

to capture the growing impacts of digital disruption.
to capture the growing impacts of digital disruption.

In other words, the Air BnB, the Deliveroos,
In other words, the Air BnB, the Deliveroos,

the Ubers and the Airtaskers of this world,
the Ubers and the Airtaskers of this world,

plus the various platforms from which they operate.
plus the various platforms from which they operate.

Also, much the data is produced
Also, much the data is produced

lacks granularity and timeliness.
lacks granularity and timeliness.

In fact it's essential to informed decision making in 2019,
In fact it's essential to informed decision making in 2019,

and that's not going to go away soon,
and that's not going to go away soon,

demand and expectations for this level
demand and expectations for this level

of detail will only increase in the future.
of detail will only increase in the future.

These shortcomings also hamper the work of policy markers
These shortcomings also hamper the work of policy markers

and planners, for example, the Australian government
and planners, for example, the Australian government

overseas long term tourism policies to better match
overseas long term tourism policies to better match

demand with supply though periods of rapid growth.
demand with supply though periods of rapid growth.

This includes the current tourism 2020 strategy
This includes the current tourism 2020 strategy

and new long-term strategy beyond 2020;
and new long-term strategy beyond 2020;

which is currently undergoing public consultation.
which is currently undergoing public consultation.

In implementing these strategies, government
In implementing these strategies, government

wants a more detailed and accurate data on tourism
wants a more detailed and accurate data on tourism

performance across Australia so they can see how industries
performance across Australia so they can see how industries

tracking against these strategic goals.
tracking against these strategic goals.

This will even make target interventions
This will even make target interventions

and deliver better policy outcomes.
and deliver better policy outcomes.

It also includes the monitoring of the growing impact
It also includes the monitoring of the growing impact

of sharing economy providers onto additional sectors.
of sharing economy providers onto additional sectors.

For instance, there's a growth of Air BnB's in our cities
For instance, there's a growth of Air BnB's in our cities

cannibalising business from the big providers
cannibalising business from the big providers

or is it providing a complementary service for example.
or is it providing a complementary service for example.

Perhaps opening up more trouble for Australians
Perhaps opening up more trouble for Australians

and helping the accommodations take the better cope
and helping the accommodations take the better cope

with periods of peak demand and providing a more
with periods of peak demand and providing a more

customised accommodation experiences.
customised accommodation experiences.

Operators also are seeking access to better data.
Operators also are seeking access to better data.

They need to stay to monitor their performance
They need to stay to monitor their performance

relative to their peers, to identify areas of improvement,
relative to their peers, to identify areas of improvement,

and to give them the confidence to expand their operations.
and to give them the confidence to expand their operations.

There's also a keen interest in better
There's also a keen interest in better

measuring the impact of major events.
measuring the impact of major events.

So just to recap, we have a situation where government,
So just to recap, we have a situation where government,

industry and operators have a thirst for more data
industry and operators have a thirst for more data

for a range of very different, but very important purposes.
for a range of very different, but very important purposes.

In today's world of big data that's becoming more
In today's world of big data that's becoming more

of a expectation than an aspiration.
of a expectation than an aspiration.

But the reality is a lack of accessible data means you
But the reality is a lack of accessible data means you

only get to see part of the story, and that skews the
only get to see part of the story, and that skews the

decision making process as well as slowing it down.
decision making process as well as slowing it down.

Our challenge tackles these sort of issues head on.
Our challenge tackles these sort of issues head on.

If you remember nothing else from this presentation,
If you remember nothing else from this presentation,

I would like you to take away three key words.
I would like you to take away three key words.

The first word is integration.
The first word is integration.

That means integrating big data from various transactional
That means integrating big data from various transactional

systems with conventional data, such as surveys,
systems with conventional data, such as surveys,

or integration supply slide data with demand slide data,
or integration supply slide data with demand slide data,

or bringing in new data on infrastructure or investments,
or bringing in new data on infrastructure or investments,

and population growth to create richer data sets that can
and population growth to create richer data sets that can

be analysed in detailed geographically and temporally.
be analysed in detailed geographically and temporally.

So the challenge here will be identifying
So the challenge here will be identifying

and unlocking new data sources, and finding ways to work
and unlocking new data sources, and finding ways to work

with the owners of this data so we can
with the owners of this data so we can

draw out their full potential.
draw out their full potential.

There will also need to be some hard
There will also need to be some hard

known judgements around the cost of acquiring data,
known judgements around the cost of acquiring data,

privacy concerns and the data reliability.
privacy concerns and the data reliability.

These will be key outcomes of the feasibility stage.
These will be key outcomes of the feasibility stage.

Word number two is intelligence, So that's supplying
Word number two is intelligence, So that's supplying

advance analytics to these integrated data sets
advance analytics to these integrated data sets

to look at the relationship between demand and supply
to look at the relationship between demand and supply

to produce meaningful metrics for industry and government.
to produce meaningful metrics for industry and government.

So these are things like identifying areas
So these are things like identifying areas

of pent up or growing demand, Identifying the range
of pent up or growing demand, Identifying the range

of offerings in the area, and some predictions
of offerings in the area, and some predictions

around future growth prospects.
around future growth prospects.

The third word is insights, so these are the insights
The third word is insights, so these are the insights

that come from integrating data and applying a layer
that come from integrating data and applying a layer

of intelligence for investors this includes
of intelligence for investors this includes

telling them who competitors are in a particular
telling them who competitors are in a particular

location; telling them how their competition is
location; telling them how their competition is

performing; and telling them what these competitors
performing; and telling them what these competitors

are offering their target markets.
are offering their target markets.

This will enable investors to make better choices
This will enable investors to make better choices

around particular sights knowing a bit more
around particular sights knowing a bit more

about their competition will also help them in shaping
about their competition will also help them in shaping

their particular offering so that they can
their particular offering so that they can

find their own niche in this market.
find their own niche in this market.

And just as importantly, it's about complementary
And just as importantly, it's about complementary

activities not just competitors.
activities not just competitors.

So if you are looking to invest in a hotel,
So if you are looking to invest in a hotel,

then the fact that there's a large entertainment
then the fact that there's a large entertainment

precinct near by or major tourists attraction
precinct near by or major tourists attraction

under construction, then that could be
under construction, then that could be

a real game changer in the projects viability.
a real game changer in the projects viability.

Now this is an ambitious challenge naturally comes
Now this is an ambitious challenge naturally comes

with some risks, we're very cognizant of this and we'll
with some risks, we're very cognizant of this and we'll

be addressing risk with a two-pronged approach.
be addressing risk with a two-pronged approach.

Firstly during the feasibility stage, we would expect
Firstly during the feasibility stage, we would expect

the successful SME to work closely with myself and
the successful SME to work closely with myself and

colleagues at Tourism Research Australia.
colleagues at Tourism Research Australia.

To draw on their extensive experience in measuring tourism
To draw on their extensive experience in measuring tourism

and working with big data such as
and working with big data such as

credit card and mobile phone data.
credit card and mobile phone data.

That's really important as you'll need
That's really important as you'll need

sophisticated and clever algorithms to identify and extract
sophisticated and clever algorithms to identify and extract

tourism activity from the masses of data generated
tourism activity from the masses of data generated

by these various sources.
by these various sources.

At this stage it's also important
At this stage it's also important

to note that we expect this product to evolve over time
to note that we expect this product to evolve over time

as we gain access to new or better data.
as we gain access to new or better data.

So version one of what's produced might only look
So version one of what's produced might only look

at the accommodations sector for example,
at the accommodations sector for example,

but it will still be a valuable product.
but it will still be a valuable product.

Eventually though, we'd like to see it expanded
Eventually though, we'd like to see it expanded

to include other parts of visitor economy and consider
to include other parts of visitor economy and consider

broader resident populations as well as visitors.
broader resident populations as well as visitors.

Secondly, we recognise that to be successful
Secondly, we recognise that to be successful

the end product needs commercial appeal.
the end product needs commercial appeal.

That's why Austrade will collaborate and consult
That's why Austrade will collaborate and consult

within the industry, as well as drawing on the skills
within the industry, as well as drawing on the skills

of investment specialists to reach out to clients
of investment specialists to reach out to clients

both in Australia and overseas.
both in Australia and overseas.

This will help the SME to better understand clients
This will help the SME to better understand clients

expectations and requirements and includes things
expectations and requirements and includes things

like the way they'd like their day delivered.
like the way they'd like their day delivered.

The metrics they consider to be the most important
The metrics they consider to be the most important

for their business needs and providing something
for their business needs and providing something

that they can relate to and that's easy
that they can relate to and that's easy

to use and to understand.
to use and to understand.

So thank you all for listening
So thank you all for listening

and if you do have any questions please contact me
and if you do have any questions please contact me

by the details on your screen.
by the details on your screen.

(triumphant music)
(triumphant music)