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Tourism Australia and Virgin Australia to Double Global Marketing Spend To $12M

13/12/2012

Tourism Australia and Virgin Australia are to double the value of their current marketing partnership in a bid to further support the growth of Australia’s inbound tourism market.

Under the new arrangement, the two parties will increase their current joint commitments from A$6 million to A$12 million over the next three financial years, on a range of joint marketing activities, including the promotion of major sporting and business events.

The global partnership will focus on key inbound visitor markets to Australia – the United States, New Zealand, the United Kingdom, Continental Europe and Asia.

Tourism Australia Managing Director Andrew McEvoy said the commitment of both organisations to double the value of the current Memorandum of Understanding (MoU) recognised the close working relationship and the increased significance of Virgin Australia's expanded international and domestic flight networks.

"The extension of our current deal with Virgin Australia is great news for Australian tourism and the extra funds will immediately go to good use in some of our most important inbound tourism markets," Mr McEvoy said.

“Virgin Australia has an international footprint which spans a number of Tourism Australia’s key markets, including New Zealand, the United States, Europe and the Middle East. When you add to this the airline's extensive domestic network, the benefits of strengthening our partnership are both logical and compelling.”

He added that the recent bounce back in US arrivals, up four per cent so far this year, was a significant opportunity and would also be a key focus of the additional marketing funds.

Virgin Australia Chief Executive Officer Mr Borghetti said: "Both Virgin Australia and Tourism Australia recognise the importance of tourism to Australia’s economy and are committed to promoting Australia as a world class destination.

“Thanks to our growing international operations and our recently formed alliances with four of the world’s leading airlines Air New Zealand, Delta Air Lines, Etihad Airways and Singapore Airlines, we now have the ability to access international visitors from over 400 cities around the world.

"Today's announcement will see Virgin Australia and Tourism Australia double our combined efforts to increase visitation from these markets. We will also work closely with Tourism Australia on new opportunities around major sporting, business and cultural events in Australia”, Mr Borghetti said.

The expanded arrangement will feature marketing on traditional and digital media platforms as well as event and sponsorship activities.

Tourism Australia and Virgin Australia will each contribute A$2 million annually, for the next three financial years 2012/2013, 2013/2014 and 2014/2015, equating to A$12 million in this three year period, doubling the value of the Memorandum of Understanding.

This continues Tourism Australia's growing 'partnership marketing approach', today working with more than 200 industry partners including airlines, distributors and Australian industry in its key tourism markets.

ENDS