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5249.0 - Australian National Accounts: Tourism Satellite Account, 2001-02  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 05/06/2003   
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INTRODUCTION

Tourism Satellite Account 2001-02

A Tourism Satellite Account (TSA) has been recognised internationally as the best method for measuring the economic contribution of tourism and as an important information base for the calculation of its economic effects. 'Tourism' is defined broadly in the international standards to include visitors whose primary purpose is private or government business, as well as the more familiar tourism for leisure purposes. The first official TSA for Australia was published in Australian National Accounts: Tourism Satellite Account, 1997- 98 (cat. no. 5249.0) which was released in October 2000. This was followed by an update of the key results for three additional years to 2000-01 in April 2002. This issue presents additional estimates in respect of 2001-02 as well as a number of revisions for earlier years. The TSA project receives financial support from the Department of Industry, Tourism and Resources (DITR).

The TSA is compiled using a combination of visitor expenditure data from surveys conducted by the Bureau of Tourism Research, industry data from ABS collections and supply-use relationships in the Australian system of national accounts supply and use tables. Because the required industry collections are not conducted annually, the compilation strategy is to produce a full-scale TSA 'benchmark' in those years coinciding with the availability of the industry collections (about every three years) and to extrapolate key results to other years using annual visitor expenditure data and the industry coefficients established in the latest benchmark year. The updates published in this issue have been extrapolated in this manner. Subject to the continuing availability of external funding, the next complete update of the TSA is expected to be for the financial year 2000-01, planned for release in April 2004. At this time the extrapolations will be readjusted to the new benchmark.

The emphasis in the TSA is on the measurement of tourism consumption and the size of the tourism industry, including its contribution to GDP and employment. It puts tourism on a similar footing to other industries in the national accounts. It does not measure the indirect effects of tourism consumption on other industries. This is done using economic modelling. A research paper by the Bureau of Tourism Research Tourism's Indirect Economic Effects 1997- 98 measures these indirect effects using the basic data provided in the TSA 1997- 98 and the Australian National Accounts Input-Output tables.

The estimates of Tourism consumption, output, value added and gross domestic product (GDP) presented in this publication are recorded at current prices, that is the prices prevailing in the period to which the observation relates. This means that changes in these estimates over time are a result of changes in prices as well as changes in the underlying level of economic activity (or volume). For example, the introduction of the Goods and Services Tax (GST) in July 2000 caused an increase in the current dollar value of tourism consumption and tourism GDP in 2000-01 and later years. This increase would occur even if the underlying volume of tourism services remained unchanged (Refer to Explanatory Notes for more details).


ANALYSIS OF RESULTS

KEY RESULTS

Tourism is not an industry in the traditional sense because industries are classified in accordance with the goods and services that they produce, whereas tourism depends on the status of the customer. A tourism satellite account (TSA) partitions industries into tourism and non-tourism activities so that the direct contribution of tourism to the economy can be measured on a consistent basis with 'traditional' industries. The results presented below relate to the tourism industry in 2001-02 and changes in the magnitude of tourism activity since 1997- 98.

Tourism GDP represents the total market value of Australian produced goods and services consumed by visitors after deducting the cost of goods and services used up in the process of production. Tourism accounted for $31.8 billion of total GDP in 2001-02, a decrease of $53 million, or 0.2%, since 2000-01. This represents the first annual decrease in tourism GDP since the first TSA was compiled for 1997- 98. There is little doubt that the destruction of the World Trade Center in New York on 11 September 2001 and the demise of Ansett Airlines were major factors contributing to the decline. The fall in 2001-02 follows growth of 14.3% in 2000-01, which was influenced by the introduction of the GST and the Sydney Olympic Games.

Volume estimates of the TSA are not compiled, and the growth rates in the current price estimates referred to in this analysis reflect the effects of price change. One way around this problem is to compare the tourism industry's share of GDP and other aggregates over time. The tourism industry share of GDP was 4.5% in 2001-02. This is lower than the 2000-01 share of 4.8%, because while tourism GDP decreased marginally during 2001-02, GDP for the whole economy grew by 6.5%.

TOURISM'S SHARE OF THE AUSTRALIAN ECONOMY, 2001-02

graph - TOURISM'S SHARE OF THE AUSTRALIAN ECONOMY, 2001-02


Industry gross value added measures the value of production exclusive of product taxes such as the GST. It is the preferred national accounts measure of the production of industries because it is free from distortions in prices caused by changes in tax rates or the introduction of new taxes over time. The tourism industry share of total industry gross value added for 2001-02 was 4.1% after being steady at 4.3% for all years, except 1998-99 when it was 4.4%.

Tourism industry gross value added grew by 0.6% in 2001-02, while the growth for the whole economy was 6.5%.


GROWTH IN INDUSTRY GROSS VALUE ADDED, CURRENT PRICES
graph - GROWTH IN INDUSTRY GROSS VALUE ADDED, CURRENT PRICES



Tourism also contributes significantly to employment and Australia's exports. In 2001-02 the tourism industry's share of total employment dropped slightly to 5.9%, after remaining at 6.0% since 1997- 98. Tourism contributed 11.2% of total exports of goods and services in 2001-02.

Domestic visitors generated 75.5% of tourism industry GDP in 2001-02 while international visitors generated 24.5%.


TOURISM INDUSTRY GROSS VALUE ADDED

In 2001-02, the industries which accounted for the largest share of tourism gross value added were Air and water transport (14%), Accommodation (11%), Cafes, restaurant and takeaway food outlets (10%), and Other retail trade (9%).

TOURISM GROSS VALUE ADDED, By Selected Industries

1997-98
2001-02

TOURISM GROSS VALUE ADDED ($m)
Air and water transport
3,235
3,750
Accommodation
2,388
2,929
Cafes, restaurants and takeaway food outlets
2,207
2,572
Other retail trade
1,970
2,270
All other industries
12,588
14,961
Total
22,389
26,483


SHARE OF TOURISM GROSS VALUE ADDED (%)
Air and water transport
14.5
14.2
Accommodation
10.7
11.1
Cafes, restaurants and takeaway food outlets
9.9
9.7
Other retail trade
8.8
8.6
All other industries
56.2
56.5
Total
100.0
100.0



COMPARISON WITH 'NON-TOURISM' INDUSTRIES

Tourism contributed $26.5 billion to industry gross value added in 2001-02. When compared with the traditional seventeen Australian and New Zealand Standard Industrial Classification (ANZSIC) industry divisions the gross value added of the tourism industry ranks twelfth. Tourism gross value added exceeded that of Agriculture, forestry and fishing, Communication services, Personal and other services, Electricity, gas and water supply, Accommodation, cafes and restaurants, and Cultural and recreational services.


TOURISM CONSUMPTION

Tourism consumption decreased slightly from $71.3 billion to $70.8 billion between 2000-01 and 2001-02. This was the first decrease in tourism consumption since 1997- 98.

The international visitor share of tourism consumption was 24.1% in 2001-02. Of the remainder, domestic households accounted for 64.3% and domestic business/government visitors accounted for 11.6%.

The bulk of domestic tourism was by those visitors who stayed away overnight (78%), with day visitors accounting for the remainder (22%).

In 2001-02 Long distance passenger transportation represented the largest proportion of tourism consumption at 17%, followed by Shopping, including gifts and souvenirs, and Takeaway and restaurant meals (15%) and then Accommodation services (10%).

There are some marked differences in consumption patterns by type of visitor. Long distance passenger transportation is the dominant tourism product consumed by domestic business/government and international visitors. In contrast, domestic household visitor consumption is dominated by Takeaway and restaurant meals, and Shopping.

SHARE OF TOURISM CONSUMPTION, Selected Tourism Products: By Type of Visitor, 2001-02

Households
Business/Government
International
All visitors
%
%
%
%


Long distance passenger transportation
9.1
38.7
29.0
17.3
Shopping (including gifts and souvenirs)
18.9
0.3
13.6
15.5
Takeaway and restaurant meals
19.5
7.0
7.0
15.1
Accommodation services
5.8
22.9
13.7
9.7
Food products
9.5
0.6
6.6
7.8
Fuel (petrol, diesel)
8.2
14.0
1.1
7.1
Taxi products
0.4
3.3
0.7
0.8
All other tourism products
28.6
13.2
28.4
26.7
Total
100.0
100.0
100.0
100.0



Tourism consumption decreased slightly across all sectors during 2001-02. Tourism consumption by households went from $45.9 billion to $45.5 billion, while that for domestic business/government fell marginally to $8.2 billion. International visitor consumption also decreased slightly to be $17.1 billion.

Since 1997- 98 tourism consumption has grown annually up to 2000-01 with 2000-01 showing strong growth of 10%. This growth for 2000-01 mainly reflects the impact of the GST on prices paid. Growth in domestic tourism was strongest in services, which attracted GST for the first time. Also, Recreation, culture and sporting services were particularly boosted by expenditure on tickets for the Olympics.

GROWTH IN TOURISM CONSUMPTION
graph - GROWTH IN TOURISM CONSUMPTION


INTERNATIONAL TRADE IN TOURISM

Tourism makes an important contribution to Australia's export earnings. In 2001-02, international visitors consumed $17.1 billion worth of goods and services produced by the Australian economy. This represented 11.2% of the total exports of goods and services. While tourism exports grew quite strongly between 1997- 98 and 2000-01, so did exports of other goods and services. However both tourism exports and total exports declined in 2001-02.

EXPORTS OF TOURISM GOODS AND SERVICES
1997-98
1998-99
1999-00
2000-01
2001-02

International visitor consumption ($m)
12,792
13,446
14,611
17,140
17,080
Total exports ($m)
113,744
112,025
126,034
153,511
152,357
Tourism share of exports (%)
11.2
12.0
11.6
11.2
11.2
Growth in international visitor consumption (%)
na
5.1
8.7
17.3
-0.3
Growth in total exports (%)
na
-1.5
12.5
21.8
-0.8

na - not applicable


Exports of tourism goods and services compare favourably with other Australian 'traditional' export products. For example, exports of tourism products are greater than Coal, or Iron, steel and non-ferrous metals, but less than Food and live animals.

SELECTED EXPORT COMMODITIES, Percentage of Total Exports

1997-98
1998-99
1999-00
2000-01
2001-02
%
%
%
%
%

Coal
8.4
8.3
6.6
7.1
8.8
Iron, steel, non-ferrous metals
6.3
6.2
7.0
6.6
6.3
Food and live animals
14.1
13.8
13.4
13.5
14.7
Tourism products
11.2
12.0
11.6
11.2
11.2




TOURISM EMPLOYED PERSONS

The tourism industry employed 549,000 persons in 2001-02, a marginal decrease on 2000-01. While the tourism share of total employed persons remained constant at 6.0% in each year from 1997- 98, in 2001-02 this share decreased slightly to 5.9%.

The tourism share of total employment is higher than the tourism share of industry gross value added. This is because tourism tends to be more labour intensive, on average, than other forms of economic activity. While the tourism share of employment has decreased marginally in 2001-02, the tourism share of gross value added has also decreased.

Retail trade generated the most tourism employment. Retail trade, Accommodation, and Cafes and restaurants account for more that half of the employment generated by tourism.




VISITOR NUMBERS

Domestic visitor numbers declined in 2001-02 by 4%. This was the second year of decrease since they peaked in 1999-2000. The decrease is due entirely to a decline in same day visitors of 7%, with the number of overnight visitors increasing by 2%.

GROWTH IN DOMESTIC VISITOR NUMBERS
graph - GROWTH IN DOMESTIC VISITOR NUMBERS



Short-term international visitor arrivals to Australia peaked at over 5 million in 2000-01, but declined during 2001-02 by 5%, reflecting the combined impact of the post Olympic period, world terrorism events and the demise of Ansett Airlines.

GROWTH IN INTERNATIONAL VISITOR NUMBERS

graph - GROWTH IN INTERNATIONAL VISITOR NUMBERS


NOTES

ABOUT THIS PUBLICATION

This publication presents the key results of the Tourism Satellite Account (TSA) for the years 1997-98 to 2001-02. It has been funded by the Department of Industry, Tourism and Resources.


REVISIONS IN THIS ISSUE

The economy wide national accounting aggregates for 1997-98 to 2000-01 have been revised to make them consistent with the December quarter 2002 issue of Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0).

No revisions have been made to the tourism estimates for 1997-98 to 1999-2000. At the time of the release of the 2000-01 issue of this publication, data from the Bureau of Tourism Research's (BTR) International Visitor Survey (IVS) for 2000-01 were not available. In this issue the 2000-01 IVS data have been used to revise previously published estimates, with product details of international visitor consumption for 2000-01 being published for the first time.

Visitor arrivals for 2000-01 have been revised since the previous issue of this publication, as a result of revisions to overseas arrivals and departures data compiled by ABS.

Estimates of tourism employment have been revised to incorporate updated measures that have become available for some industries for earlier years.



DATA VALUES AND ROUNDING

All values, unless otherwise indicated, are shown in Australian dollars rounded to the nearest million. Where figures have been rounded, discrepancies may occur between the sums of the component items and totals.


FORTHCOMING ISSUES

The expected release date of the next issue of this publication is April 2004. For that issue the ABS intends to introduce a full-scale TSA in respect of 2000-01. This will provide a new benchmark for subsequent years until the next full-scale TSA is compiled. It is also likely to lead to revisions to the estimates for the years prior to 2000-01.


FURTHER INFORMATION

For further information on the Tourism Satellite Account contact Dianne Bourke on Canberra 02 6252 7243.

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