A new arrangement between Tourism Australia and Virgin Australia will see an up in the spending of advertising money to support the Australian tourism market. As a part of this arrangement, their current joint commitment of A$6 million will double to A$12 Million over the next three financial years. Included as a part of this agreement are increase in the spending on promotion of major sporting events, business events and other marketing activities.
The four key inbound markets for tourism Australia Continental Europe, Asia, The UK and New Zealand are going to be the major areas where this increased focus will be mostly on. Andrew McEvoy, Managing Director of Tourism Australia stressed that the doubling of the current spending arrangement as per the MoU is an appreciation of the ongoing relationship of the two organisations and the growing domestic and international flight network of Virgin Australia.
Virgin Australia certainly has one of the largest flight networks in the world and many of the destinations that they service are in New Zealand, the United States, Europe and the Middle-East, all of them being prime locations for Australia’s inbound tourism industry. Add to that the excellent domestic network that the airline has and immediately the significance of the co-operation is understood.
Mr. McEvoy also mentioned that the extension and expansion of the current arrangement means the generation of additional funds which will be immediately used in a number of the most important inbound markets for Australia’s tourism industry. The increase in US footfall this year, up 4% since the last year is a major opportunity and will continue to be a major destination where the newly mobilised funds will be channelised.
Making his statement on the occasion, Mr. Borghetti, CEO of Virgin Australia mentioned that both Tourism Australia and Virgin Australia realises the huge importance tourism has to the economy of the country. As such they are both committed to showcase Australia as a major tourist destination in the global scene. He added that over the last few months Virgin Australia has been able to forge alliances with four of the largest airlines in the world – Air New Zealand, Delta Airlines, Etihad Airways and Singapore Airlines. This has placed them in a position where they can access travellers from up to 400 cities in the world.
The arrangements that were made today will see both organisations partnering to focus more on these destinations, ensuring more visits from travellers. Additionally major sporting, business and cultural events will be targeted as opportunities to promote Australia’s tourism industry.
This expanded arrangement will see both organisations contributing A$2 million annually for the next three financial years and spending the money on traditional and digital marketing channels as well as around event and other sponsorships.