TOURI$M INVE$TMENT

Sam Friend

If you’re not a billionaire  

What about a pool in NYC’s East River?  

Crowdfunding

•  +pool raised over $250k •  3000+ backers – <$100 p.p. •  30 days – almost $10k per day •  Pozible.com – Australian made •  Kickstarter.com – US import

Crowdfunding Tips

1.  Emotion driven to engage people 2.  Exclusivity for funders 3.  Align with publicity & social

media 4.  What projects have worked

Collaborative Consumption

Social Enterprise

14,321,079 4,296,324 1,455,429

What about me?

 

Not so investable

1.  74% tourism SME motivated by lifestyle (1)

2.  High input costs - Not scalable 3.  Low margin  

More investable

1.  Business driven 2.  Service business with high

recurring income => scalable 3.  Differentiated => high margin 4.  Growing market

Gvt - Market to Asia (2)(3)(4)

•  Gvt $46m on $9B “spend” (0.5%) •  OTA $1.3B on $20B “sales” (6.5%) ACTION Ø  Increase Gvt spend $500m p.a

Gvt - Market to Asia (5)(3)

•  $500m => $8.5B extra “spend” p.a •  DOUBLE Asian spend vs 6% •  +40% Australian inbound vs 6% BUT Ø Where’s the $500m p.a come from?

Show me the money! (6)

1.  Car Manufacturing Industry –  ~ $500M funding p.a –  Creates ¼ value of tourism –  Employs 20% less jobs

$250m

Show me the money! (7)

2.  Apply GST to outbound ozzies –  ~ $30B spend ~50% pre-trip –  GST = $1.5B!!!

$250m

$250m

TA Asian Credentials? (8)

BOARD CEO INT MKT

Asian heritage = 0

Mentions of Asia in Bio = 0

Who can help us?(9)(10)(11)

Columbia University

1993 -> 2008 Olympic Games

Yang Lan TV 200m 5x WWW 200m 25x

Quiz ?  Lived in China ? Korea & China invest $7b in Oz ? Oz vs China basketball tournament Thanks J  

Sources  1.  Na-onal  Tourism  Investment  Strategy  Research  Report,  AEC  Group  

(2006)    2.  Tourism  Australia  unveils  new  marke-ng  push  in  Asia,  Andrew  McEvoy,  

press  release,  17  August  2012  3.  Interna-onal  Visitors  in  Australia,  June  Quarter  (2013),  Tourism  

Research  Australia  4.  Priceline  Group  2012  Annual  Return  5.  Measuring  the  return  from  Australian  tourism  marke-ng  investment  in  

Asia  (2008)  /  Nada  Kulendran,  Larry  Dwyer  6.  End  of  the  road  for  handouts  to  an  ailing  industry,  9  November  2013,  

The  Australian,  Paul  Kelly  7.  Tourism  investment  in  Australia  (2010):  a  scoping  study  /  Driml,  Sally  et  

al.  8.  www.tourism.australia.com/about-­‐us/our-­‐organisa-on.aspx    9.  'China's  Oprah  Winfrey'  Yang  Lan  signs  deal  with  Hollywood  agent,  28  

March  2009,  Telegraph  UK,  Caroline  Hedley  10.  www.forbes.com/global/2000/1127/0324146a.html    11.  www.quantcast.com/oprah.com/geo