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5249.0.55.003 - Implementation of revised international statistical standards in the Australian Tourism Satellite Account, Apr 2010  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 28/04/2010  First Issue
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CHANGES TO OUTPUTS


BACKCASTING

From the 2008-09 issue of Australian National Accounts: Tourism Satellite Account (cat. no. 5249.0), data will be presented on a TSA:RMF 2008, SNA08 and ANZSIC06 basis. The changes being implemented with these new standards will impact on the value of some key aggregates. In addition, the incorporation of revisions arising from the 2006-07 benchmark process, revisions to input series and changes to other TSA methods will impact on key tourism aggregates. To maintain the integrity of time series, level shifts will be backcast to 1997-98.


TREATMENT OF GOODS PURCHASED BY VISITORS

The previous approach in the Australian TSA was to treat the entire value of the expenditure by the visitor on goods as constituting the value of the direct relationship with the producer and therefore being reflected in tourism output. TSA:RMF 2008 recommends that only the retail margin will contribute to direct tourism output and value added. This is because in the case of retail goods, it is deemed that only the retailer has a direct relationship with the visitor and is therefore part of the tourism industry.

New tables (table 9 and table 10) present a link between the activities of visitors (tourism demand) and the productive activity attributable to tourism (tourism supply) under the new treatment of retail goods in the new TSA standard. Note that tourism output under the previous TSA standard in table 3 of the 2007-08 edition of the Australian TSA is equivalent to internal tourism consumption at basic prices in new table 9, which is now comprised of direct tourism output and the cost of goods purchased by retailers for resale to visitors.

The objective of the first three columns of new table 9 is to remove from internal tourism consumption at basic prices the following components of supply by businesses that do not have a direct relationship (i.e. direct contact) with visitors in deriving direct tourism output at basic prices in the first column:

  • The basic value of goods purchased in Australia by visitors that are domestically produced by businesses in the supply chain that are not in direct contact with the visitor. This relates specifically to goods produced by firms in the agriculture, mining and manufacturing industries.
  • Associated wholesale and transport margins, given that these services are provided by businesses in the wholesale trade and transport industries with no direct relationship with the visitor purchasing the good from the retailer.

The sum of these two components of supply is the cost to retailers of goods sold directly to visitors which will be recorded in the second column of table 9. The first component above will be recorded in the row of new table 9 corresponding with the underlying good being purchased, while the second component will be recorded against 'Other margins'.

Direct tourism output at basic prices in the first column is equal to internal tourism consumption at basic prices minus the cost to retailers of domestic goods sold directly to visitors for each tourism related product. This total will equal the total direct tourism output in table 3, which classifies direct tourism output by tourism related industry.

In the case of goods, the value of direct tourism output will comprise almost entirely the value of the retail margin, which will be recorded against the 'retail margin' row of new table 9. Note though that in the case of goods, there will be a small value recorded in direct tourism output representing goods produced by enterprises classified to the retail trade industry (e.g. souvenirs or some food products).

In the case of tourism related products which are services, direct tourism output will include the full value (at basic prices) of the service being consumed by the visitor, and will therefore equal total internal consumption at basic prices. For these products, the cost of goods purchased by retailers for resale to visitors is equal to zero.

In the case of tourism products that consist of both a good and service component (repair and maintenance, and other tourism goods and services), there will be amounts recorded against both direct tourism output and indirect tourism output in the new table 9.

Other affected tables are:
  • tables 3, 4, 5 and 7 will no longer include manufacturing industries in the list of tourism related industries, since these industries are deemed to no longer be in a direct relationship with visitors
  • revised terminology will be used in all tables to emphasise that the key aggregates (direct tourism GDP, direct tourism gross value added, direct tourism output and direct tourism employment) only relate to the direct effects of tourism consumption.


CHARACTERISTIC PRODUCTS AND INDUSTRIES

A joint project between the ABS and Statistics New Zealand developed a new standard classification of industrial activity, the Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC06). This will replace the previous classification, ANZSIC93, with a more contemporary classification system. The 2008-09 Australian TSA will be the first release on an ANZSIC06 basis. Australian TSA industry and product classifications will be revised to ensure consistency with ANZSIC06 and closer alignment with the classifications in the new international standard.

Under the new international standard for tourism statistics, core lists of tourism characteristic products and activities (industries), based on the significance of their link to tourism in the worldwide context, are recommended for implementation to facilitate international comparison. The list of tourism characteristic products is consistent with the newly revised international classification of products, namely the Central Product Classification, Version 2 (CPC V2.0). The recommended list of tourism characteristic activities (industries) is consistent and concords with the newly revised International Standard Industrial Classification, Revision 4 (ISIC Rev. 4).

ANZSIC06 was developed in response to changes in the structure and composition of the economy, changing information demands and the need to enhance compatibility with the ISIC Rev. 4.

Implementing the industry and product classifications in the new TSA standard in combination with ANZSIC06 will result in a significant change to the presentation of industry and product data in the Australian TSA.

Affected tables are:
  • tables 3, 4, 5 and 7 will contain the new classification for tourism related industries
  • tables 9 to 14 will contain the new classification for tourism related products
  • tables 6 and 8 will present direct tourism gross value added and direct tourism output, respectively, by the new ANZSIC divisional structure.

Information on the differences between ANZSIC93 and ANZSIC06 can be found in Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 - Class Change Tables, 2006 (cat. no. 1292.0.55.003).


DEFINITION OF TOURISM CONSUMPTION AND ITS DIFFERING SCOPES

The new international standard explicitly defines two concepts in relation to consumption by visitors, namely tourism expenditure and tourism consumption. Because of the different nature of market and non-market consumption, and also recognising that some countries may not have the data to estimate it, the new international standard recommends that tourism consumption should be subdivided into 'actual' and 'imputed' components.

Imputations for non-market transactions have been isolated and grouped in new table 11.


PUBLICATION TABLES AND TIME SERIES SPREADSHEETS

Available from the Downloads tab of this publication are:
  • an Adobe pdf file that includes a preview of the full set of tables that will be published in Australian National Accounts: Tourism Satellite Account (cat. no. 5249.0) on Friday 4 June 2010
  • a preview of the data cube spreadsheet that will be published in Australian National Accounts: Tourism Satellite Account(cat. no. 5249.0) on Friday 4 June 2010.


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