5249.0 - Australian National Accounts: Tourism Satellite Account, 2013-14 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 17/12/2014   
   Page tools: Print Print Page Print all pages in this productPrint All


ANALYSIS OF RESULTS


Tourism is not an industry or product in international statistical standards but it is commonly considered an industry by tourism researchers and economic analysts. In the Australian Tourism Satellite Account (TSA), the direct contribution of the tourism industry to the Australian economy has been measured using the demand generated by visitors and the supply of tourism products by domestic producers.

The diagram below is presented to give users a graphical depiction of the flow of tourism consumption through the Australian economy in 2013-14. What the diagram highlights is that unlike traditional ANZSIC industries in the Australian National Accounts, tourism is not measured by the output of a single industry, but rather from the demand side, i,e the activities of visitors. It is the products that visitors consume that define what it is that the tourism industry economy produces. That is, the diagram shows how the value of internal tourism consumption (as measured by the sum of international and tourism consumption in purchasers prices, ie. the price the visitor pays) is disaggregated to either form part of tourism gross value added and tourism Gross Domestic Product (GDP) or it is excluded as it either forms part of the second round, indirect effects of tourism or the output was not domestically produced.


Flow Chart: Flow of tourism consumption through the Australian economy.





Each of the aggregates shown in the diagram are defined briefly below along with a summary of the 2013-14 results for those aggregates. Other key measures included in the TSA are also highlighted including international trade in tourism, tourism employed persons, tourism hours worked and gross value added per tourism hour worked. Unless otherwise stated, the estimates are in current price terms.

Graph Image for Selected tourism aggregates

Internal tourism consumption is the total value of goods and services consumed by both resident and non-resident visitors within Australia. It is measured in purchasers' prices (the price paid by the tourism consumer). From 2012-13 to 2013-14 internal tourism consumption increased by 3.7% from $109,341m to $113,343m. Net taxes on tourism products includes all net taxes on tourism consumption, including tourism net taxes on tourism products (which in the case of goods, only includes net taxes attributable to retail trade activities) and net taxes on indirect tourism output (i.e. net taxes attributable to the non-retail margins on goods). Only tourism net taxes on tourism products are included in Tourism GDP, which in 2013-14 increased by 3.9% from $3,409m to $3,544m in current price terms.

Imported goods and services consumed by visitors are not part of domestic production by Australian industries. The cost to retailers of imported goods sold directly to visitors increased by 4.8% from $7,233m in 2012-13 to $7,580m in 2013-14. Over the same period, internal tourism consumption at basic prices (internal tourism consumption at purchaser prices less imports and net taxes on tourism products) increased by 3.5% to $96,727m.

In the case of retail goods purchased by visitors, only the retail margin contributes to direct tourism output, value added and Gross Domestic Product (GDP). This is because it is deemed that only the retailer has a direct relationship with the visitor and is therefore part of the tourism industry. Direct tourism output is therefore equal to internal tourism consumption at basic prices less the cost to retailers of domestic goods sold directly to visitors. From 2012-13 to 2013-14, direct tourism output increased by 3.4% to $78,482m.

When producing tourism goods and services Australian businesses use goods and services produced and supplied by other businesses. These are known as intermediate inputs and increased by 3.5% from $37,287m in 2012-13 to $38,582m in 2013-14.


DIRECT TOURISM GROSS VALUE ADDED

Direct tourism gross value added is equal to the value of tourism output at basic prices minus the value of tourism intermediate consumption at purchaser's prices. Basic prices valuation of output removes the distortion caused by variations in the incidence of product taxes and subsidies across the output of individual industries.

From 2012-13 to 2013-14 direct tourism gross value added at basic prices increased by 3.4% to $39,900m. Gross value added for all industries increased by 4.1% to $1,481,508m over the same period. Tourism share of gross value added remained stable at 2.7% in 2013-14. It should be noted that gross value added for all industries includes both tourism and non-tourism value added.

Graph Image for Growth in industry, gross value added, current prices


DIRECT TOURISM GROSS DOMESTIC PRODUCT

Direct tourism GDP is calculated by adding tourism net taxes on products to direct tourism gross value added. In the case of goods, tourism net taxes on products will only include the net taxes attributable to retail trade activities. From 2012-13 to 2013-14 direct tourism GDP increased by 3.4% to $43,443m, whereas GDP for the Australian economy grew by 4.1% over the same period.

In 2013-14 the tourism share of GDP slightly decreased to 2.7%, down from 2.8% in 2012-13. Over the length of the TSA time series (1997-98 to 2013-14), tourism's share of GDP reached a peak of 3.5% in 2000-01. While the peak in 2000-01 was heavily impacted by price increases in tourism services, resulting from the introduction of the GST and the volume impact of the Olympic Games, the overall trend of declining share has continued over a long period.

Direct tourism GDP is also calculated by type of visitor, i.e. the contribution of domestic visitors (also split by households and business and government visitors) and international visitors. In 2013-14, household visitors contributed 60.0%, down slightly from 60.2% in 2012-13. International visitors contributed 26.3%, down slightly from 26.4% in 2012-13. The contribution of business and government visitors to direct tourism GDP increased from 13.5% in 2012-13 to 13.7% in 2013-14.


COMPONENTS OF TOURISM INDUSTRY GROSS VALUE ADDED

Accommodation; Air, water and other transport; Other retail trade; and Cafes, restaurants and takeaway food services continue to be the most significant tourism related industries. Combined, these industries account for 56.7% of direct tourism gross value added in 2013-14.

From 2012-13 to 2013-14, direct tourism gross value added increased by $1,304m (3.4%) to $39,900m, driven by solid growth across a number of tourism related industries. The tourism related industries representing the largest contributors to the increase in tourism gross value added in this period were: Cafes, restaurants and takeaway food services (up $237m, 5.7%); Air, water and other transport (up $195m, 3.5%); Education and training (up $193m, 7.8%); Ownership of dwellings (up $183m, 5.4%); and Other retail trade (up $180m, 3.5%).

Graph Image for Contribution to tourism value added, selected industry divisions

The figure below compares the contribution to tourism gross value added by selected industry divisions between 1997-98 (the beginning of the TSA time series) and 2013-14. In 2013-14, the following industry divisions were the most significant contributors to tourism gross value added: Accommodation and Food Services (34.9%); Transport, postal and warehousing (20.6%); Retail trade (14.0%); Ownership of dwellings (8.9%); and Education and training (6.7%).
    Graph Image for Growth in tourism value added, selected tourism related industries


    COMPONENTS OF TOURISM CONSUMPTION

    For 2013-14, domestic tourism consumption represented 76.0% of total tourism consumption, whereas international consumption represented 24.0%.

    Internal tourism consumption increased by 3.7% to $113,343m in 2013-14. Since 2012-13, domestic tourism consumption increased by 3.5% to $86,168m while international tourism consumption increased by 4.1% from $26,101m to $27,176m in 2013-14.

    Graph Image for Growth in domestic and international tourism consumption




    In terms of tourism related products, the major contributors to the increase in domestic tourism consumption in this period were Takeaway and restaurant meals (up $818m, 5.9%); Fuel (up $557m, 5.6%); Long distance passenger transport (up $428m, 3.7%) and Alcoholic beverages and other beverages (up $240m, 6.7%). Reduced levels of domestic tourism consumption were only recorded for purchases of Motor vehicles, caravans, boats etc (down $25m, -1.4% from 2012-13).

    Domestic tourism consumption by Household and Business/ Government

    The $2,728m increase in domestic tourism consumption in 2012-13 consisted of a $3,095m (4.7%) increase in consumption by households and a $366m (-2.6%) decrease in consumption by business and government. The fall in business and government consumption was mainly attributed to falls in consumption of: Accommodation (down $316m, -8.4%); Long distance passenger transportation (down $168m, -3.8%); and Takeaway and restaurant meals (down $136m, -7.4%). The contribution of domestic business/government tourism consumption to total internal tourism consumption decreased from 13.4% in 2011-12 to 12.6% in 2012-13.

    Changes in household disposable income are considered a key indicator of household consumption behaviour. The graph below presents a comparison of growth in household disposable income and household tourism consumption since 2004-05.

    Graph Image for Growth in household tourism consumption and disposable income


    Domestic tourism consumption by Same day and Overnight visitors

    The $2,928m increase in domestic tourism consumption in 2013-14 consisted of a $2,049m (3.0%) increase in consumption by households and a $880m (6.2%) increase in consumption by business and government. The contribution of domestic business/government tourism consumption to total internal tourism consumption increased from 12.9% in 2012-13 to 13.3% in 2013-14.

    Changes in household disposable income are considered a key indicator of household consumption behaviour. The graph below presents a comparison of growth in household disposable income and household tourism consumption since 2005-06.


    Graph Image for Growth in same day and overnight domestic consumption
    In terms of tourism related products, the major contributors to total tourism consumption in 2013-14 were Takeaway and restaurant meals, Long distance passenger transportation, Shopping, gifts and souvenirs and Accommodation services. Combined, these products contributed 54.9% of total tourism consumption in 2013-14.

    In 2013-14, the major contributor to domestic household consumption was again Takeaway and restaurant meals ($12,885m, or 18.1% of total domestic household consumption), while for domestic business/government visitors, Long distance passenger transportation ($4,688m) was again the major contributor to domestic business/government consumption (accounting for 31.2% of total domestic/government consumption ). In the case of international visitors, Long distance passenger transportation was also the major contributor to international visitor consumption in 2013-14 ($4,943m, or 18.2% of total international visitor consumption).


    SHARE OF TOURISM CONSUMPTION, selected tourism products, by type of visitor: 2013-14

    Households
    Business/ government
    International
    All visitors
    %
    %
    %
    %

    Long distance passenger transportation
    10.4
    31.2
    18.2
    15.0
    Takeaway and restaurant meals
    18.1
    12.5
    10.7
    15.6
    Shopping, gifts and souvenirs
    15.2
    -
    12.8
    12.6
    Accommodation services
    8.1
    23.7
    14.4
    11.7
    Fuel (petrol, diesel)
    12.2
    12.2
    2.0
    9.7
    Food products
    7.5
    2.1
    8.3
    7.0
    Alcoholic beverages and other beverages
    4.6
    3.3
    4.6
    4.5
    Imputed and actual rent on dwellings
    5.4
    -
    3.3
    4.1
    All other tourism products
    18.6
    15.0
    25.7
    19.8
    Total
    100.0
    100.0
    100.0
    100.0

    - nil or rounded to zero (including null cells)



    INTERNATIONAL TRADE IN TOURISM

    Tourism exports are domestically produced goods and services consumed by international visitors to Australia. Tourism imports are consumption of overseas produced goods and services by Australians on overseas trips. Since 2005-06 tourism imports have exceeded tourism exports, resulting in deficits in the tourism balance of trade (tourism exports less tourism imports). In 2013-14 the deficit totalled $7,695m, the highest deficit since the series began in 1997-98.

    Graph Image for International trade in tourism



    Despite the trade deficit, tourism makes an important contribution to Australia's total export earnings. Whilst the contribution of tourism to total exports has fallen from 10.2% in 2005-06 to 8.2% in 2013-14, in current price terms the value of these exports (international visitor consumption) has grown from $19,167m to $27,176m over the same period.

    TOURISM EMPLOYED PERSONS

    Tourism is an important source of employment in Australia, accounting for 4.6% of total employed persons in the economy in 2013-14. Tourism's share of total employment is greater than its share of gross value added (2.7%). This is because tourism tends to be more labour-intensive than, on average, other forms of economic activity. The tourism industry employed 534,000 persons in 2013-14, a decrease of 5,600 (down 1.0%) on 2012-13. This compares with an increase of 0.8% in total employed persons in the Australian economy (which are inclusive of tourism and non-tourism employed persons).

    Whilst tourism gross value added in current prices increased for all tourism and connected industries in 2013-14 tourism employment for a number of these industries fell. This was the result of falls in Labour Force industry level employed persons (i.e. inclusive of tourism and non-tourism employed persons). In other words, employment in industries serving visitors fell relative to total employment by all industries in the economy.

      Graph Image for Selected industries, as a percentage of total employed persons 2013-14



      In 2013-14, 45.6% of total tourism employed persons were part-time. This compares with the economy wide proportion of part-time workers of 30.0%. This equates to tourism contributing 7.0% of total part-time employed persons in 2013-14. Only four other industries had a higher share of total part-time employed persons in 2013-14.

      Graph Image for Selected industries, as a percentage of full-time and part-time employed persons 2013-14

      In 2013-14, tourism had 290,300 full-time employed persons, which accounted for 54.4% of tourism employment. Tourism had a lower relative share of full-time employed persons (3.6%) than twelve other industries (out of a total of nineteen industries).


      Graph Image for Selected industries, as a percentage of male and female employed persons 2013-14


      This publication also presents a split of tourism employed persons into male and female workers. In 2013-14, females accounted for 286,200 tourism employed persons, or 53.6% of the tourism workforce. Tourism accounted for 5.4% of total female workers in 2013-14. In 2013-14, males accounted for 247,800 of tourism's employed persons (46.4% of tourism workforce), or 4.0% of total male employment.

      TOURISM HOURS WORKED

      In 2013-14, total tourism hours worked fell marginally by 0.4%, compared with an increase of 1.1% for the economy as a whole.

      Indexes of gross value added (in volume terms) per hour worked are used in the Australian National Accounts are a proxy measure of an industry's labour productivity. From 2012-13 to 2013-14, tourism gross value added per hour worked was relatively stable with a fall of 0.1%. This compared to an increase in gross value added per hour worked of 1.5% for all industries in the economy.


      VISITOR NUMBERS

      In 2013-14, domestic visitor numbers as measured by the number of tourism trips increased by 0.5% to 244.3 million trips.

      Same day domestic visitors in 2013-14 decreased by 1.6%. Despite this, average consumption by same day visitors increased by 3.4% from $115.6 in 2012-13 to $119.5 in 2013-14. The increase in tourism consumption by overnight domestic visitors (up 4.1%) was the result of an increase in the number of visitors (up 5.1%) which more than offset a small decline in average consumption by overnight visitors per trip (from $848.0 in 2012-13 to $839.7 in 2013-14, a decline of 0.1%). [Note that changes to same day and overnight visitor consumption in 2013-14 may have in part been effected by compositional changes in the sampling methodology used by Tourism Research Australia. From January 2014, mobile phone numbers were added to fixed phone numbers in the National Visitor Survey methodology frame].

      Graph Image for Growth in same day and overnight visitors



      The increase in international tourism consumption in 2013-14 (up 4.1%) was the net result of a solid increase in the number of visitors (up 8.1%) combined with a decrease in average consumption by international visitors (down 3.7%). The growth in international visitor numbers to Australia was the strongest since 2003-04, when international visitors to Australia were up 8.6% over the previous financial year. The overall increase in the number of international visitors to Australia in 2013-14 was driven by gains in the number of visitors from China (up 12.2%), Malaysia (up 25.1%), New Zealand (up 4.3%) and Singapore (up 15.4%).

      Overall, International visitors to Australia spent an average of $4,079.9 per trip in 2013-14.

      Graph Image for Growth in international and domestic visitor numbers



      The number of Australians travelling overseas grew by 6.5% in 2013-14, with the growth driven by increased number of Australians visiting the Indonesia, Singapore, New Zealand and Malaysia.

      Cumulatively, in the five years since 2008-09, the numbers of Australians travelling overseas increased by 3.145m (from 5.834m in 2008-09 to 8.979m in 2013-14) or 53.9%.

      While Australians outbound tourism consumption is excluded from tourism consumption and tourism GDP, that part of the trip which is spent domestically before or after the trip, or on Australian resident airline carriers, is included in domestic tourism consumption. The strong growth in the number of Australians taking overseas tourism trips in the past decade has seen the contribution of domestic outbound tourism consumption rise from 6.5% of domestic overnight expenditure in 2005-06 to 10.0% in 2013-14.
        Graph Image for Growth in Australian resident departures and the Trade Weighted Index