The research estimates that for every incremental $1M spent on international tourism marketing that up to $16M in spend is generated by foreign tourists and 89 additional jobs created.
The report – “Estimates of the Return on Marketing Investment for Australian Inbound Tourism” – was produced by industry researchers, Webber Quantitative Consulting, for Tourism Accommodation Australia (TAA).
The report estimates that a $10M increase in the inbound marketing and promotional budget would increase visitor numbers by up to 72,500, increase tourist expenditure by between $130M to $160M, and increase the number of tourism and hospitality jobs by over 1,800.
Webber estimates that between A$36M and $45M of the increase in tourism spend would go to the accommodation sector.
In releasing the report, Tourism Accommodation Australia (TAA) Managing Director, Rodger Powell, said that the report highlighted the benefits that Paul Hogan and other tourism ambassadors can play in driving demand.
“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,” said Mr Powell.
“The US Government’s funding of Brand USA through contributions from visa charges raises $180 million annually, which is then matched dollar for dollar by the industry, with the resulting $360 million in tourism marketing having a very tangible effect on American tourism. Inbound arrivals to the US grew by over three million in the year from 2012 to 2013, and Australian arrivals into the US have recorded double digit percentage growth annually since Brand USA was established.”
