10 June 08
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Dear Industry Colleagues
Further to the announcement by Qantas last week regarding the reduction of services from Japan to Cairns, TTNQ has been actively seeking input from industry and also looking at ways to minimise the effects of the announcement while maintaining our aggressive marketing activities in our key markets.
We need to move quickly to preserve as much of our Japanese business as possible. This requires the concerted cooperation of Federal, State and local government, our industry, and our people. Everyone’s support is vital if we are to successfully overcome this challenge - as we have met and overcome so many others, whether the pilots’ strike, 9/11, SARS or the Asian economic meltdown.
The four point plan we have devised requires the widest support possible. To that end, we will undertake an advocacy campaign which will highlight the economic and social impact of the Qantas Group’s decision on our industry and our community.
We have already received the backing of Tourism Minister Desley Boyle, Tourism Queensland CEO Anthony Hayes, and have briefed the Federal Member for Leichhardt Jim Turnour to canvas his support. He will now represent our views to the Government. I have also had a lengthy discussion with Tourism Australia and am comforted by the strategies they are pursuing on our (and the Australian tourism industry’s) behalf.
Harry Niihori is in Japan this week, and I look forward to updating you on the latest developments. Additionally, we will be updating our Corporate website www.tropicalaustralia.com.au/corporate with the important and ongoing progress we have made, along with any call-to-action items required. You will need to click on the “Industry Advisory” tab to access this information.
The road ahead will be difficult. However, we are confident that we have the right strategy going forward. It is time for us all to rise to the challenge.
With best regards,
Rob
TROPICAL NORTH QUEENSLAND
FOUR POINT PLAN TO ADDRESS THE LOSS OF AIR CAPACITY FROM JAPAN
Cummings Economics has undertaken initial research to determine the economic fallout from the capacity cuts announced by Qantas Group. This will cover:
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1. REVIEW JAPAN MARKET OPTIONS
Industry
a. Shore up existing Japanese business:
- Immediate market visit by a TTNQ representative to Japan to meet with wholesalers and discuss with trade on-going support for the Tropical North Queensland destination. Seek guidance from Japanese trade on the type of support they need from the destination.
- Undertake a comprehensive ITO and wholesaler communications strategy designed to keep key stakeholders informed and as comfortable as possible with new opportunities and options
- Review all marketing and advertising and promotion activities/budget in light of the new circumstances
- Reinforce TNQ’s commitment to Japan directly to in-market trade, ITO’s and Australian-based stakeholders through personal visits
- Review TTNQ Japan Mission dates and potential high level delegation (inc Minister Boyle and Cairns Regional Council Mayor Schier)
- Align Tourism Queensland and Tourism Australia’s trade marketing activities to reassure Japanese trade of TNQ’s commitment
- Engagement with education sector to understand potential ramifications
- Review impact of Japan Action Plan
b. Packaging issues – continue with current packaging options and develop new packaging opportunities through active engagement with trade:
- Work with wholesalers in western Japan on the issue of the Shimoki brochure
- Duo destination packaging for Cairns / Gold Coast and Sydney / Cairns
- International duo destination packaging for Guam / Cairns (with Continental Airlines)
- International duo destination packaging Hong Kong / Cairns (Cathay Pacific)
- Multi destination packages with Northern Territory / Cairns
Aviation
a. Preserve existing aviation access from Japan and explore potential opportunities to redress shortfall:
- Engage Qantas Group in negotiations to ameliorate impact of decision
- Investigate charter options
- Identify other potential airline opportunities
2. ACCELERATE TTNQ’S EXISTING STRATEGY TO BUILD ALTERNATIVE AND EMERGING MARKETS:
Industry
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a. In-market representatives for TNQ in China |
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Aviation
a. Meet with Chinese airlines and wholesalers to discuss new charter and scheduled service access opportunities
b. Strengthen relationship with Cathay Pacific
c. Strengthen TA/TQ/TTNQ/Cairns Ports integrated aviation activity in emerging markets
3. FUNDING OPTIONS
a. Funds are urgently sought to accelerate our scheduled marketing and aviation access activities in priority and emerging markets
b. $4million provided by State Government needs to be matched by the same Federal government contribution
c. Review current funding obligations to redirect uncommitted budgets (especially those which will require government approval)
d. Discuss with Cairns Regional Council the early introduction of the area benefit levy and/or supplementary funding
e. Industry commitment to same or increased level of in-market activity
4. BUSINESS SUPPORT
a. Extend EMDG preference for TNQ operators
b. Government assistance for businesses to plan and train staff to service alternative markets
c. Financial assistance package to allow business to maintain skilled and trained staff