BACKPACKERS

In reply to the Hon. T.J. STEPHENS (13 September 2011) (First Session).

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women): I am advised:

1. Backpacker numbers to South Australia have fallen from 99,000 (year ending 30 June 2010) to 88,000 (year ending 30 June 2011)—a drop of 11 per cent.

Due to both global and local issues, New South Wales, Queensland and the Northern Territory have also recorded similar declines over the past 12 months.

Research by the Australian Tourism Export Council, Tourism Australia and industry partners released in May 2011 shows that the backpacker industry across Australia is facing challenging times due to:

The high Australian dollar;

Lagging effects from the 'global financial crisis' in 2009 and the economic situation in Europe/America.

Increased competition from other areas such Africa, Asia and South America; and

Queensland floods and Cyclone Yasi disrupting the 'natural flow' of backpackers around Australia

2. South Australian Tourism Commission (SATC) Offices in the United Kingdom, Germany and France have budgeted to run four marketing campaigns in 2011-12 to target youth and adventure travellers.

In 2011-12 SATC will work with South Australian tourism operators to increase the amount of content featured in local backpacker publications such as TNT Magazine, Base City Guides, Nomads Travel Guide and Detour Magazine, and to run travel agent familiarisation visits and trade training evenings in Sydney and Melbourne.

SATC are currently in discussions with trade partners regarding a multi country campaign in the United Kingdom, Germany, France and Italy targeting the working holiday/youth market.

3. Under the South Australian Tourism Plan 2009-14, South Australia is targeting a high yielding domestic segment (primarily in Melbourne and Sydney) and also the market segment identified as high yielding International Experience Seekers.

SATC expects the majority of tourism growth to come from high spending visitors from the Eastern seaboard, as well as international visitors.

For the year ending 30 September 2011, total travel expenditure in South Australia was $4.7 billion (up 6.9 per cent on a year ago). Nationally, expenditure grew by 0.9 per cent over the same period.