SPECIAL SUBJECT REVIEW

The International Backpacker Market

Key results for YE December 2019

This report was commissioned by Destination Byron on behalf of its members to support their approach to a ‘sustainable & responsible’

visitor economy in the Byron Shire

more information email: info@destinationbyron.com.au

destinationbyron.com.au

DEFINING BACKPACKERS In this Special Subject Review, Backpackers those who spend at least 10% of their trip nights in Backpacker/Hostel accommodation and stay at least 14 nights in Australia. This definition can be consistently applied in the International Visitor Survey (IVS) over several years.

MARKET PROFILE ~ NORTH COAST REGION

MARKET PROFILE ~ BYRON SHIRE

MARKET PROFILE ~ AUSTRALIA

The top 10 markets in 2018/19 accounted for over 70% of the backpacker market.

The UK and Germany have held first and second position (respectively) for several years.

328 324 323 329312

287307 299 300

286 287 290 282

200220240260280300320340

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

Visit

ors (

000)

Visitors

26.0

m

24.2

m

26.3

m

25.2

m

23.6

m

23.6

m

27.3

m

25.3

m

24.2

m

21.6

m

21.4

m

21.0

m

20.8

m

0

10

20

30

40

200

6/07

200

7/08

200

8/09

200

9/10

201

0/11

201

1/12

201

2/13

201

3/14

201

4/15

201

5/16

201

6/17

201

7/18

201

8/19

Nig

hts (

m)

Visitor Nights in Australia

79 7581 77 76

8289 85 81 76 74 72 74

200

6/07

200

7/08

200

8/09

200

9/10

201

0/11

201

1/12

201

2/13

201

3/14

201

4/15

201

5/16

201

6/17

201

7/18

201

8/19

Nig

hts

Average Length of Stay - Australia

MARKET SIZE & CHANGE OVER TIME ~ AUSTRALIA

Over the period 2006/07 - 2018/19

§ Average 304,000 p.a. § High point 329,000 (09/10) § Low point 282,000 (18/19) § Declining at 1.3% p.a. § Market has stalled.

§ The Backpacker market is slowly declining § The year 2018/19 represented the lowest in terms of Backpacker visitors and visitor nights

to date § Overall spend in Australia is relatively stable (not considering inflation) § Spend per night has risen slightly in recent years.

Over the period 2006/07 - 2018/19

§ Average 23.9m p.a. § High point 27.3m (12/13) § Low point 20.8m (18/19) § Declining at 1.8% p.a.

Over the period 2006/07 - 2018/19

§ Average 78 nights per visit § High point 89 nights (12/13) § Low point 72 nights (17/18) § Clear downwards trend

since 12/13

$1.9

b

$1.8

b

$2.0

b

$1.9

b

$1.7

b

$1.6

b

$1.8

b

$1.6

b

$1.7

b

$1.6

b

$1.6

b

$1.6

b

$1.6

b

200

6/07

200

7/08

200

8/09

200

9/10

201

0/11

201

1/12

201

2/13

201

3/14

201

4/15

201

5/16

201

6/17

201

7/18

201

8/19

$ bi

llion

Total Expenditure in Australia5,

640

5,59

0

6,09

0

5,77

0

5,37

0

5,54

0

5,75

0

5,46

0

5,52

0

5,53

0

5,57

0

5,50

0

5,66

0

200

6/07

200

7/08

200

8/09

200

9/10

201

0/11

201

1/12

201

2/13

201

3/14

201

4/15

201

5/16

201

6/17

201

7/18

201

8/19

$

Average Spend per Visit in Australia

$71 $75 $75 $75 $71 $67 $65 $65 $69 $73 $75 $76 $77

200

6/07

200

7/08

200

8/09

200

9/10

201

0/11

201

1/12

201

2/13

201

3/14

201

4/15

201

5/16

201

6/17

201

7/18

201

8/19

$

Average spend per Night in Australia

Over the period 2006/07 - 2018/19

§ Average $1.71b § 'Flatlining' over past 4 years

Over the period 2006/07 - 2018/19

§ Average $5,615 § No growth over time. § Reduction when inflation

considered.

Over the period 2006/07 - 2018/19

§ Average $72 § Potential growth trend over

recent years but not significant.