Financing International Tourism Businesses

› Financing your tourism business, Pg. 3

› how we could help your tourism business, Pg. 4

› customers we've helped, Pg. 5

› preparing your business for international growth, Pg. 6

› and resources and support available to help you. Pg. 8

Grow your tourism business with Export Finance AustraliaWe are the Government's export credit agency, helping Australian exporters for more than 60 years. With our long and proud history, we are an integral part of Australia's international trade focus, supporting tourism businesses, jobs, and the community.

We support the innovators, the ambitious, and the game changers. Working with banks, other government agencies, and our partners, we provide loans and guarantees to enable Australian businesses to take on export-related opportunities.

Tourism operators providing services to international visitors

Wineries with cellar doors selling to international visitors

Businesses in tourism supply chain

Equipment manufacturers contracted by tourism operators

This guide will help you understand:

Examples of tourism businesses we could support:

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Export Finance Australia

We're here to help with financeWe're supporting Australian tourism businesses like Creswick Woollen Mills, Adrenalin Snorkel and Dive, and Eco Structures.

Our finance solutions have enabled them to grow their international tourism businesses.

Whether you need finance to increase your capacity, take on more bookings, or simply need a cashflow boost, Export Finance Australia could help.

Call us on 1800 093 724

We wanted to set up the café earlier and quicker… Export Finance Australia gave us the flexibility to do that.

Boaz Herszfeld Executive Director

Creswick Woollen Mills

Export Finance Australia

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Export Finance Australia

How we could help your tourism businessFinancing business growth is a challenge faced by many tourism businesses. The upfront costs associated with increasing customer demand or expansion can put pressure on your cashflow, potentially impacting other aspects of your business.

If you’re a business that provides tourism services directly, or through a supply chain to international tourists, we could help you.

We could help finance costs associated with:

Your tourism business is unique, which is why we provide a range of finance solutions which could suit your needs:

“ We deliver experiences in Australia for international visitors, am I an exporter?”

Yes, you are. Inbound covers all international tourist traffic entering a country. Although tourists enjoy their experience within Australia, they pay for services using foreign currency.

Export Contract LoanA flexible loan structure tailored for your business

Small Business Export LoanFast, unsecured loan to support a new export opportunity

Export Line of CreditA line of credit that can be drawn and repaid multiple times

› Working capital support › purchasing equipment or assets › increasing capacity › business expansion › expanding international tourism offering.

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Export Finance Australia

Customers we’ve helpedCreswick Woollen Mills

NeedFinance to improve facilities as part of mill enhancement project.

SolutionOur Small Business Export Loan helped Creswick build a new café to attract more visitors and boost sales.

Creswick Woollen Mills manufactures products made from natural fibres. Their mill generates revenue from international tourists, hosting over 140,000 visitors each year.

Adrenalin Snorkel and Dive

NeedFinance to expand operations and meet growing international visitor demand.

SolutionOur Export Contract Loan helped Adrenalin Snorkel and Dive purchase a bigger boat to increase capacity and meet additional demands.

Adrenalin Snorkel and Dive offers ECO-Certified day and overnight snorkeling and scuba diving adventures on the Great Barrier Reef.

Eco Structures

NeedFinance to purchase materials and meet product delivery deadlines.

SolutionWe provided a Small Business Export Loan to help Eco Structures take on additional orders and drive further growth in their international sales.

Eco Structures manufactures and sells luxury glamping tents for retreats and holiday parks.

Export Finance Australia

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Export Finance Australia

Preparing your business for international growthBefore you start growing your international tourism business, get a clear understanding of where your domestic business operations stand. By undertaking an audit on your current business strategy, you’ll know what resources you need for your international visitor growth – and be able to identify any funding gaps.

A key consideration when growing your international visitor numbers is whether you have a viable market. Your international visitor growth strategy should align with your overall business plan, outline your international objectives and action plan, and include your budget, operational model and any distribution channel partners you may have.

Learn how our finance options could help your tourism business.

Create a cashflow forecastA cashflow forecast helps you find out if your tourism business can cover its running costs when targeting new international markets, and identify any periods when you will have more cash going out than coming in. You can then decide if you need finance to cover funding gaps.

Build your creditworthinessA cornerstone of building your business’ credit profile is to establish strong financial systems, so it is simpler to get finance when the time comes. Taking steps to grow your international visitor business may mean taking on more financial risks, making it harder to secure financing through your bank. Developing a good relationship with your accountant or financial advisor will help you understand your financial position.

Develop strong financial systems for your tourism businessEnsure you have a robust international growth strategy that includes your financial resources, foreign exchange rate considerations, and the sustainability of your budget:

› use a reliable accounting system › build a strong relationship with your business banker by keeping

them informed of any developments in your business › consider an accounting firm that has experience working with

tourism businesses › if you have a financial adviser, ask them to review your growth

strategy regularly.

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Key steps you should consider:

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Export Finance Australia

The Export Finance Australia loan means we can maintain our lead in the area of reef education. Like a tree, if a business isn’t growing, it’s dying. So standing still isn’t an option. Their support means we can take the next step to grow the business.

Paul Crocombe Director

Adrenalin Snorkel and Dive

For more than 30 years, family-owned dive and snorkel tour operator, Adrenalin Snorkel and Dive have been delighting tourists with trips to Townsville’s extraordinary reef and the Yongala wreck.

Increase in visitor demand To meet growing international visitor demand, Paul Crocombe, Director at Adrenalin Snorkel and Dive, decided the business needed to purchase a third, larger vessel. A bigger boat would allow him to take 35 people out at a time instead of 21. It would also provide a more comfortable trip to the reef in rougher conditions, reducing the number of cancelled trips.

With three boats, the company could also operate three trips at once – one for reef day-trippers, another for Yongala wreck dives, and a third for multi-day diving tours. But despite a profitable business and long track record in tourism, finding funds for the new boat proved to be another challenge.

“Banks are very reluctant to lend money on boats,” said Paul, “and even more so for tourism.”

Financing their business growth That's where we can help – with a range of finance solutions for Australian businesses that provide tourism services to international visitors.

After discovering us through a business coaching program, Paul applied for a loan and proved that he had enough international visitor demand and the marketing skills to grow his business successfully.

We provided Adrenalin Snorkel and Dive with a $575K loan to support the purchase of a third vessel.

Case Study: Adrenalin Snorkel and DiveOur loan helped Townsville tourism business Sun City Watersports Pty Ltd (trading as Adrenalin Snorkel and Dive) purchase a larger vessel to support growing international tourist demand.

Export Finance Australia

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Support available

Export Finance Australia

The Australian government’s export credit agency, providing finance solutions to Australian exporters, including tourism businesses.

Visit exportfinance.gov.au Call 1800 093 724 Email info@exportfinance.gov.au

Austrade

The Australian Government’s trade and investment agency, providing you with practical advice, support, and insight into many of the countries to which you’re looking to attract visitors from. Austrade provides information and advice to assist Australian companies to reduce the time, cost, and risk associated with growing your international business, as well as Export Market Development Grants (EMDG) to support your export growth.

Visit austrade.gov.au

Australian Tourism Export CouncilATEC is the peak industry body representing Australia’s $43 billion tourism export sector.

Representing more than 1000 members across Australia including large national and multinational companies as well as small and medium-sized enterprises, ATEC’s support includes B2B opportunities, industry advocacy and development, education and business capacity building, local and national networking events, and conferences.

Visit tourism.australia.com

Tourism Australia

The Australian Government agency responsible for international visitors to Australia, both for leisure and business events.

Tourism Australia’s activities include advertising, public relations and media programs, trade shows and programs for the tourism industry, consumer promotions, online communications, and consumer research.

Visit atec.net.au

Want more information? We’ve developed a range of export-related eBooks:

• Accessing Export-Related Finance• Developing Your Export Strategy• Protecting Your Intellectual (IP) Property Overseas

Visit: exportfinance.gov.au/ebooks

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Export Finance Australia

Discover how Export Finance Australia could help your business take on the world.As Australia’s export credit agency, we offer options by working with your bank to provide supplementary finance, or support when your bank may be unable to help.

To find out more about how we could help your business, go to exportfinance.gov.au or call 1800 093 724.

This information is of a general nature and has been prepared without taking account of your business needs, financial situation or objectives. The information does not comprise advice or a recommendation. You should consider seeking independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances. While Export Finance Australia endeavours to ensure this information is accurate and current at the time of publication, Export Finance Australia makes no representation or warranty as to its reliability, accuracy or completeness. To the maximum extent permitted by law, Export Finance Australia will not be liable to you or any other person for any loss or damage suffered or incurred by any person arising from any act, or failure to act, on the basis of any information or opinions contained in this document.