Taking off: The depreciation of the Australian dollar has boosted inbound tourist numbers

The Tourism industry is becoming increasingly important for Australia's economy. Industry revenue is projected to grow by an annualised 3.4% over the five years through 2017-18, to reach $129.5 billion. Revenue is calculated based on total expenditure on tourism products and services by both local and international tourists. Domestic tourism accounts for around three-quarters of industry activity, although international tourism represents the fastest growing market for industry operators. Over the past five years, historically cheap international airfares and a weaker Australian dollar have driven strong growth in inbound visitor numbers...read more.

Industry Statistics & Market Size
Revenue
$130bn
Annual Growth 13-18
3.4%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
600,078
Businesses
113,916
Market Share of Companies

Industry Threats & Opportunities

  • Increasing international tourist numbers have driven growth over the past five years
  • Chinese tourists each spend more on average than other international visitors
  • International tourism will become increasingly important over the next five years

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    Industry Report - Industry Investment Chapter

    The Tourism industry has a moderate level of capital intensity. In 2017-18, for every dollar invested in capital, an estimated $3.06 is spent on wages. Many large players in the industry have substantial capital requirements. For example, major airlines have large fleets of aircraft. Although airlines tend to own the majority of their planes, they usually lease a portion of their fleet to reduce depreciation costs. Scenic and sightseeing transport providers also have high depreciation costs, as they require vehicles such as buses and boats to run tours. Other capital requirements relate to the purchase of computer equipment for administrative functions. This increases the capital intensity of the Tourism industry...purchase to read more.

    Additional Insights for the Tourism Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tourism Industry are

  • Ability to quickly adopt new technology
  • Proximity to key attractions
  • Access to a multiskilled and flexible workforce

    • IBISWorld analysts also discuss how external factors such as Total visitor nights and International travel to Australia in the Tourism industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Tourism Industry?

    Industry firms mainly provide services to international and domestic visitors on trips shorter than one year. Visitors include those travelling for work-related purposes, such as conferences, and for leisure and personal reasons, such as visiting friends and relatives.

    Industry Products
  • Retailing
  • Transport
  • Accommodation
  • Takeaway and restaurant meals
  • Recreation
    • Industry Activities
  • Travel agent service provision
  • Tour operation
  • Accommodation provision
  • Domestic air service provision
  • International air service provision
  • Cafe and restaurant operation
  • Hiring out motor vehicles
  • Pub and tavern operation
  • Club operation
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Total visitor nights
  • International travel to Australia
  • International travel by Australians
  • Consumer sentiment index
  • US dollars per Australian dollar

    • Current Performance
  • International travel trends
  • Domestic travel trends
  • Profit and participation
  • Technological change
  • Chart: Revenue Growth

    • Industry Outlook
  • Landing down under
  • Technology and consumer preferences
  • Future opportunities and challenges
  • Table: Tourism Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tourism Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Consumers

    • Key Selling Industries
  • Accommodation and Food Services
  • Casinos
  • Gyms and Fitness Centres
  • Integrated Logistics
  • Performing Arts Venues
  • Travel Agency and Tour Arrangement Services
  • Zoological and Botanical Gardens

    • Products & Services
  • Transport
  • Takeaway and restaurant meals
  • Retailing
  • Other
  • Accommodation
  • Recreation
  • Chart: Tourism Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Domestic households
  • International travellers
  • Domestic businesses and government
  • Chart: Major Market Segmentation for the Tourism Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tourism

    • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tourism Industry

    • Industry Globalization

    Major Companies

    Qantas Airways Limited,
  • Table: Qantas Airways Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Tourism Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Tourism Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Codesharing
  • An agreement between two or more carriers to share the same flight but with tickets sold under different flight codes.
    • Management Agreement
  • Contract agreements with hotel building owners to manage a hotel on their behalf with guaranteed returns to owner and manager.
    • Tariff
  • A full schedule of fees for the use of accommodation amenities. It includes a disclosure of room rates and other rate information such as taxes and fees.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Tourism market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tourism:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tourism market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tourism, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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