ROI on tourism marketing is $16m for every $1m spent, claims a hotel association report

TAAEvery $1 million ploughed into marketing Australia to the world generates an additional $16m in spend by overseas tourists and creates an additional 89 jobs, according to research released today.

The findings were contained in a report commissioned by the Tourism Accommodation Australia (TAA), an association which represents hotels across the country, and carried out by research firm Webber Quantitive Consulting.

The study, titled Estimates of the Return on Marketing Investment for Australian Inbound Tourism, concluded that hotels alone receive an extra $4.5m from visitors for every $1m spent promoting the country. The report comes after a Commission of Audit suggested slashing tourism funding by half, although the government decided to leave Tourism Australia’s budget untouched in the budget.

The figures demonstrate the importance of at least maintaining marketing budgets and prove that high profile promotional campaigns drive demand, the TAA said.

“There has been considerable debate over the impact of tourism marketing and its ability to drive greater visitor numbers and foreign income,” TAA managing director Rodger Powell said. “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.”

Powell said the ROI findings were particularly timely given the hotel sector is poised for its largest expansion in 20 years.

“This will create thousands of jobs in the construction and operation phases but for the projects to come to fruition the growth in visitor numbers generated in the past four years needs to continue and aggressive tactical unbound marketing and promotion is required,” he said.

Steve Jones


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