How to build momentum in Regional Tourism – Takeaways from the Destination NSW Visitor Economy Forum.

Industry trends, projections on visitor demographics, strategies and artificial intelligence were on the agenda. Here’s the insights into market and social trends, data, and international travel projections for Australian tourism.

Katrina Denoux, an Australian Regional Tourism Ambassador & tourism academic (as well as a regional tourism operator herself) has summarised the takeaways from the day from amongst 600 other attendees, doubling down on the main areas relevant to regional tourism Australia-wide.

We heard a LOT of data, & a LOT of big ideas (some of them of futuristic nature), though all had the purpose to build momentum moving forward into progressive tourism. These insights aren’t only for the 2023/2024 summer coming up – it’s also the projections for 2024 & 2025. Learning about what’s ahead, which type of visitor is looking to travel, what their interests are, and how to promote to them.

We all agreed on the day that tourism data can feel quite esoteric to us when trying to digest in our own destinations & businesses .. and really appreciated the breaking down of it to give it some personality. And how can we use this data in our own business? Hopefully the below will help give a personality to the numbers, and momentum on how to action this forecast data.

Visitor Predictions

• We are at 80-89% in short term visitations compared to precovid levels, though the visitor demographics are somewhat different to before, with the visiting family & friends (VFR) sector still stronger. Australia is still lacking the leisure / holiday sector, who are the visitors that traditionally spend more in a destination. This leisure / holiday sector is currently only at 60% of pre-covid levels, though the good news is that it’s starting to rise.

• Current international visitors are mainly from NZ, China, South Korea, the UK & USA (Japan & Malaysian visitor numbers are still low).
• India is the most promising country looking ahead, for visitation.
• Last week, Chinese tourist group visas started being re-issued for travel into Australia, be ready for tour groups to slowly start arriving.
• The Australian dollar is at an 11 month low due to international interest rates which will be good for inbound tourism short-term (expensive air fares aside!).
• Tourism continues to be a key contributor .. $200 billion is expected by 2025. And in fact the international visitors who are coming, are spending more than what they did prior to 2019, especially once the leisure / holiday sector percentage reaches higher ground compared to VFR (visiting friends & family).

This is a prime opportunity to incorporate Affinity Experiences – a term used to identify which experiences in your region could compliment each other depending on the visitor’s motivation & personality; how to market to each & cluster the experience. And to ensure you are cross-promoting the right experiences to the personality of the type of visitor that you attract. There’ll be more on this in Katrina’s next article for ART Tourism Hub.

Who are our Future Visitors?

Fun fact – we’ll be welcoming SIX generations as of 2025 (the newbie … Generation Alpha – are ages born between 2010-2024 ie. entirely born in 21st century). The oldest of these are entering high school already, with their tech research habits influencing decision-making on their family with how they research leisure trips together.

Current tech is becoming so personalised that our travellers habitually become reliant on the fast predictive & promotive nature of them, especially the Gen Y (millennial), Gen Z and the Alpha generation.

These generations are the ones we need to be designing & marketing our upcoming experiences & products for:

• Their motivations are very visual, dynamic & socially engaged. Their consumer habits reflect this – short sharp interactions with media – and place importance and purchase habits around trust in brands & recommendations from friends & people they look up to, as well as reviews.
• Super importantly, your tourism product needs to have simplicity of purchase … any more than a couple of clicks or if it involves a big form to fill in – it can reduce the change of conversion to a booking.
• The increase of Bleisure: the traditional distinction between business and leisure travel is fading, with an uptick in the trend to combining work and leisure trips … Bleisure. Regional destinations should continue to tap into this emerging market by providing necessary infrastructure and services that cater to both business and leisure visitors.

Offering high-speed internet, co-working spaces, and flexible accommodation options can attract professionals looking to extend their stay and explore the region once their work

Artificial Intelligence, how easy is it to use in regional tourism?

This is where Artificial Intelligence can really help – various technologies can help lesson the booking time for both operator and visitor. Anyone that ahs an AirBnB or Booking.com listing will know that the recent inclusion of artificial intelligence in the auto-translation of messages between hosts & visitors is a huge help.

How can you further embrace this technology within your business? Firstly, artificial intelligence has the ability to translate into other languages immediately, and it doesn’t just have to be within the booking platform message system. Cast a wider net by translating info to potential visitors on other areas they seek information from.

Use tech such as Google maps to curate a virtual itinerary experience – which then can become an itinerary for your visitors to follow on the road to your destination. Include info like where should they stop and take photos? At what time is best to get there for the best selfie? Incorporate feedback & testimonials from clients at each pin / place on thee map. And then translate all this into other languages.

We all know it’s easy to feel overwhelmed with the idea AI. Though the advice from the Forum was to just get to know it step by step … and to learn how it can help in your own business. The ideas above are a good starting point.

Sustainability & Visitor connection

To finish off the takeaways of the Visitor Economy Forum, let’s get back to nature & nurture with Sustainability & Visitor expectations – are they more mindful now they are returning? It’s a great idea to promote real initiatives that they can really take hold of and champion as their own, in all three areas: environmental, socio-cultural, and local community economic initiatives.

1. Social license – making visitors part of the solution. By giving back – a connection for them to do, or become, when they are in the destination. For example, a contribution of the accom / tour fee ($5) goes towards a local project. Or incorporate a beach / forest cleanup / community visit.
2. Repeat visitation & increase of knowledge at a wider level – videoing and constantly sharing stories about your and your destination’s ESG impact, this will help increase the stewardship of your future visitors, educating them even before they arrive, and when they recommend onwards.
3. Think about your visitor in all 5 Senses, and maximise not only their experience once there in these ways, though how you can promote via all these senses: emotionally as well as physically.

Tips on how to use these Takeaways in your business

This article gives the opportunity to think about your tourism business going forward:

• Are you positioning your product to maximise interest to these upcoming visitor markets?
• Are you marketing in the right place? for example on dynamic online platforms
• Are you making the most of the visitor recovery .. do you have the right staff in place for international visitation coming up?
• Are you using simple artificial intelligence technologies freely available (Google Maps, chatGPT, translation tools) to enhance the visitor experience during their planning journey, as well as during their visit?
• Are you staying on top of your tourism business by connecting & learning with industry at Conventions (such as the ART Convention this week!), State Forums & Tourism Exchanges?

Author of Article

Katrina Denoux (M.Sc) feels lucky to be able to combine her two loves, travel & education as an Ambassador for Regional Tourism Australia, and her role as Learning Teaching & Innovation Manager at the International College of Management Sydney, furthering the international & domestic student experience in tourism, hospitality & event degrees & employability in Australia. She specialises in the experience economy, wellness tourism, & sustainability; as an academic professor & speaker on the international insights circuit.

Katrina is also a tourism practitioner & registered health provider with an experiential accommodation business, Villa Tropez, with award-wining heritage, nature-led venues in Europe and Australia, & has been in the wellbeing & sustainability tourism space as a leader for 20 years.