TOURISM WESTERN AUSTRALIA

MARKETING FORUM 2016

INDONESIA

PRESENTED BY:

Stanly Mangindaan – Country

Manager

APRIL 2016

An introduction

Stanly MangindaanCountry Manager Indonesia - Tourism Western Australia

Level 48, Wisma 46, Kota BNI Jl. Jend. Sudirman Kav. 1, Jakarta Pusat JAKARTA INDONESIA 10220

Office: +62 21 574 8834

Stanly.Mangindaan@westernaustralia.com

WA Head Office Contact :Tom UpsonInternational Market Manager - Tourism Western AustraliaTom.Upson@westernaustralia.com

Agenda

1. Market Analysis, Insight & Opportunity

2. Target Market

3. Market Strategy – Aviation

4. Market Strategy – Consumer & PR

5. Market Strategy – Trade

6. How to win the Market

7. Discussions

Indonesia Outlook

• More than 250 million people (4th largest population in the world)

• Estimated by 2030 expected to be the world’s 7th largest economy**.

• Java island where 141 million people or 60% of the population reside. And Jakarta is the capital city.

• GDP $ 888.5 Billion*, projected growth 5% (2014) 5.5% (2016)***

• World’s largest Muslim country

• The biggest economy in South East Asia and ASEAN countries

• Archipelago nation of 17,000+ islands stretching 5,150km

Source: *World Bank, ** McKinsey, ***Bloomberg

Aviation Analysis – Indonesia Visitor to Western Australia

Source: Aviation Team Tourism Australia, Indonesia Aviation Analysis

YE: Year Ending. YOY: Year on Year

Garuda Indonesia was the preferred carrier with 49% market share. This is followed by:•Indonesia AirAsia (23%); and•Singapore Airlines (10%).

Nearly half of visitors travelled to WA for the purpose of holiday (45%) and a quarter for VFR (24%), followed by travel for business (15%) and education (11%).

Inbound visitors fell by 7% in 2015.

Key Outbound Destination – Indonesia Visitor

Source: Tourism Economics

Indonesia Visitors to Western AustraliaYear on Year Change

Source: Tourism Research Australia, International Visitor Survey

YE: Year Ending. YOY: Year on Year

9.2%

-0.5%

7.0%

21.1%

4.3%

-7.6%

12.8%

-9.7%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

YE Sep.'08

YE Sep.'09

YE Sep.'10

YE Sep.'11

YE Sep.'12

YE Sep.'13

YE Sep.'14

YE Sep.'15

Vis

ito

rs

YO

Y %

ch

an

ge

% Change (year on year) Visitors

Indonesia Visitors to Western AustraliaSeasonality

Source: Department of Immigration and Border Protection (State of Intended Residence: WA, Category of Traveller: Short Term

Visitor Arrival)

YE: Year Ending

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Octo

ber

No

vem

be

r

De

cem

be

r

Ja

nu

ary

Fe

bru

ary

Ma

rch

Apri

l

Ma

y

Ju

ne

Ju

ly

Aug

ust

Sep

tem

be

r

Mo

nth

ly A

rriv

als

YE Sep-13 YE Sep-14 YE Sep-15

Indonesia Visitors - Purpose of VisitYear Ending September 2015

Source: Tourism Research Australia, International Visitor Survey

YE: Year Ending. YOY: Year on Year

% of visitors to Australia / Western Australia

46%

40%

9%12%

7%

31%

46%

8% 7%

14%

Holiday/leisure VFR Business Education Employment

Australia Western Australia

Market Situation

Key Players Market Review

2013-2014 International Tourism Board has booming and continue to increase until 2015.

• Global & International Tourism Board expansion their marketing activities with brand positioning campaign

• STOs started to sell specific segment and thematic destination with Key Trade partners, Airlines and Corporates.

• Airlines Travel Exhibition push major promotion for tickets, FITs, seasonal holiday packages.

# International Tourism Board

# State Tourism Organization

Market Insight

Strength

• Short flight duration (4 hours direct)• Integrated Australia Experience• Whole range of Holiday packages

(i.e. City Sightseeing, Islands, Outdoor activities, etc.)

• New Perth Development

Weakness

• Not BIG +heavy in marketing campaign(less Ads & PR Engagement)

• Minor of localization content marketing• Unrecognized brand preposition

(under shadow by other Australia destination)

Opportunity

• Growth of FIT market • B2B market for new sales target

(MICE, Corporates, Partnerships)• New destination concept• Online Engagement (Digital trend & Social

media)

Threat

• International Tourism Board invest big campaign in Indonesia

• STOs individuals promotions• Currency Fluctuation/Difference • Higher Price or Expensive Package

NegativePositive

Today

Future

SWOT analysis based on the market review and situation in local market

MARKET OPPORTUNITY

• Indonesian visitors will be able to apply for a three-year multiple-entry visa – up from one year now – and from 2017 all Indonesian citizens will be able to lodge their visa applications online

• Jakarta is the main source market for Australia, with a population of 10.187 million. The city has the highest concentration of people able to afford travel, as well as the best connectivity with both non-stop services and direct services to Australia. Maintaining focus on key cities - Jakarta and Surabaya as secondary with a population of 2.765 million

• Groups/families tend to travel during peak season when the major holidays such as school, Lebaran and Christmas holidays. The lead time is three to four weeks prior to the peak season. FITs travel more during the off peak months and have a shorter lead time than group travelers

• There is a shift towards F.I.T., with most consumers still choosing to book flights through agents.

• Increased new product and variations of program, to target middle segment consumer.

• Mobile Digital & Social media has a huge impact in raising awareness of travel destinations and demands

• WA is considered the nearest Western travel destination – we need to leverage closest Australian gateway and time zone

• Perth still considered an expensive destination compared to other states and destinations

Target Market

Where to Play

Focus our marketing effort on the segments of

greatest opportunity.

FIT’s/

families

Visiting

friends &

relatives

(VFR)

Incentive

Groups

Who are they?

Age : 25 – 55 yo

Segment : SES A – B+

Professional, Entrepreneur,

Retiree, Family, Student

• Self Drive FIT

• Special interest group –

culinary, cycling/diving,

photography

2015/16 MARKETING ACTIVITIES

Print Ads

Digital Banner Ads

Product Training

Travel Event

Consumer Campaign

2015/16 MARKETING ACTIVITIES

WA.com – Bahasa Indonesia Language

April 2016 Market: Indonesia

2015/16 MARKETING ACTIVITIES

Travel Fair Roadshow

Airlines Travel Fair

2015/16 MARKETING ACTIVITIES

Trade Promotion

Special Package EDM / Newsletter FF Program

Indonesia Market StrategiesAviation

• Co-campaign with Garuda Indonesia and TA focusing WA product via digital media, print ad, radio & travel fair events

• Partner with Garuda Indonesia & SQ with focus on the destination of Perth via FF program as well thru EDM (newsletter) databases.

• Tactical Promo to promote special fare during low seasons• Develop co-marketing with AirAsia Indonesia (Digital

Campaign, Media, Ads)• Work with DSD Indonesia on opportunities to market WA

through industries such as education and agriculture

Industry Opportunity

1. Special rate to push on certain low seasons or specific period (based on market situation)

2. Free gift/discount voucher or special merchandise on Travel Fair 2016 – 2017

(GA: 2x, SQ: 2x, AA: 1x)

3. Boarding Pass Added Value for Airlines Loyalty members or consumer programs

Indonesia Market StrategiesConsumer & PR Media

• Create consumer promotion activities that attract awareness by leveraging marketing channel such as digital, print, PR or media

• Build Twitter, Facebook WA Indonesia to drive attention and communication thru digital trends direct to consumers

• Highlights WA via bloggers and social media influencers to expose major WA events – MRGE, PIAF, etc.

• Key focused Media Familiarization Trip to exposure about ‘New Perth’ (Elizabeth Quay, Airport, hotels, etc.) on the ‘Just another day’ brand theming

• Marketing with Non Traditional Partners to market WA - E.g.: Banks, OTAs. also partner with TA.

Industry Opportunity

1. Supporting different rate level for several type of consumer/communities2. Involving in digital content to align with social media3. FOC for media familiarization trip project for news coverage/exposure4. Supporting information with promotion material (brochures, media releases, etc)5. Co-Campaign in Consumer Ads – Promotion Materials

Indonesia Market StrategiesTrade

• Trade Partners famil for Jakarta Agents, Surabaya Consortium Trade, Incentive agents.

• Tactical co-op campaigns for Perth with KDP Partners to package and express WA opportunities, leveraging TA campaigns

• Increase product/packages availability and promotion content in Travel Fair/Exhibition via Travel agents

• WA Roadshow Mission 2016 in Indonesia (TBC) November – to Jakarta and Surabaya

• Support retail travel agents through new ‘Just another day’ collateral - WA brochures/travel guide, banners etc. Increasing the awareness of WA.

• Leverage local content of WA.com Bahasa Indonesia to provide information & specific product selling to consumer via Holidays Deal.

• Focusing on Trade Training to Tier 1 & Tier 2 Travel agents

Industry Opportunity

1. Supporting different rate level for several type of consumer2. Involving in Product Update to Trade partners for information3. FOC for Trade familiarization project..4. Holidays Deal on WA.com – Bahasa Indonesia site

THANK YOU

Q & A SESSION