1. VFR Travel to Melbourne year ended December 2010 Prepared for Destination Melbourne May 2011

2. Content Section Page Introduction 3 Insights 4 Total travel 6 Domestic overnight travel 11 International overnight travel 18 Domestic daytrip travel 25 Notes 31 Page 2VFR travel to Melbourne, YE Dec 10

3. Introduction  This report analyses ‘visiting friends and relatives’ (VFR) travellers to Melbourne. The results are compared against non-VFR travel. –Some results are provided by Melbourne’s five sub-regions (i.e. ‘East’, ‘Inner’, ‘North’, ‘South’, and ‘West’)  The travel information for Melbourne is collected and reported by three separate sectors: Domestic overnight; International overnight; and Domestic daytrips. Consequently, each sector is analysed individually. –For an indication of total VFR travel to Melbourne, the report also provides information about total travel to the region (i.e. domestic overnight + international overnight + domestic daytrip).  The report is based on information from the National Visitor Survey (NVS) and International Visitor Survey (IVS) - both datasets are managed and published by Tourism Research Australia (TRA).  As overnight visitors to Melbourne may have more than one reason for visiting, the variable ‘all destination purpose of visit' has been used to give the best possible estimate of all VFR travel. This may lead to some minor double counting of visitors. ‘Main purpose of visit’ has been used for domestic daytrips.  The data used is subject to sampling variability. Users are advised to consult the data confidence tables contained in publications relevant to the datasets or otherwise available from TRA before drawing any conclusions or inferences, or taking any action, based on the data. Page 3VFR travel to Melbourne, YE Dec 10

4. Insights (1 of 2) Total travel to Melbourne in the YE Dec 10  Melbourne received 22.1 million visitors.  Visitors spent 53.8 million nights in the region.  In total, visitors spent an estimated $9.7 billion in Melbourne.  VFR represented 30.9% of visitors and 29.5% of nights in the region. Domestic overnight VFR travel to Melbourne - YE Dec 10 on YE Dec 09  Melbourne received 2.1 million VFR visitors - down by 1.3%.  VFR visitors spent 6.6 million nights in the region - down by 7.3%.  In total, VFR visitors spent an estimated $1.1 billion in Melbourne - down by 7.4%.  VFR represented 33.4% of visitors and 36.1% of nights in the region – the proportions of visitors and of nights were down by 0.5% pts and 3.0% pts respectively. Domestic overnight VFR travel to Melbourne’s sub-regions in the YE Dec 10  The ‘East’ sub-region (65.1%) had the highest proportion of VFR visitors, while ‘South’ (67.2%) had the highest % of VFR nights. Page 4 Sources: NVS and IVS YE Dec 10, TRA VFR travel to Melbourne, YE Dec 10

5. Insights (2 of 2) International VFR travel to Melbourne - YE Dec 10 on YE Dec 09  Melbourne received 459,100 VFR visitors - up by 3.0%.  VFR visitors spent 9.3 million nights in the region - up by 7.0%.  VFR represented 29.7% of visitors and 26.2% of nights in the region – the proportion of visitors was down by 1.3% pts, while the proportion of nights was up by 0.7% pts. International VFR travel to Melbourne’s sub-regions in the YE Dec 10  The ‘South’ sub-region had the highest proportion of VFR visitors (65.4%), while the ‘West’ and ‘South’ sub-regions had the highest proportion of VFR nights (37.4% each). Domestic daytrip VFR travel to Melbourne - YE Dec 10 on YE Dec 09  Melbourne received 4.3 million VFR visitors - up by 7.8%.  In total, VFR visitors spent an estimated $298 million in the region - down by 9.7%.  VFR travellers represented 30.0% of all visitors to Melbourne - up by 1.3% pts. Domestic daytrip VFR travel to Melbourne’s sub-regions in the YE Dec 10  The ‘West’ sub-region (49.0%) had the highest proportion of VFR visitors. Page 5 Sources: NVS and IVS YE Dec 10, TRA VFR travel to Melbourne, YE Dec 10

6. Total travel Travel by Australian residents and international visitors aged 15 and over. PLEASE NOTE: The results for total travel in this section should be used as an indication only. Travel information for Melbourne is collected and reported by three separate sectors: Domestic overnight; International overnight; and Domestic daytrips. Consequently, each sector should be analysed individually. Some double counting may occur as visitors may have had more than one purpose of visit. The data used is subject to sampling variability. Users are advised to consult the data confidence tables contained in publications relevant to the datasets or otherwise available from the TRA before drawing any conclusions or inferences, or taking any action, based on the data. Page 6VFR travel to Melbourne, YE Dec 10

7. Total travel to Melbourne In the YE Dec 10 Melbourne received 22.1 million visitors (64.7% were on domestic daytrips). Visitors stayed for 53.8 million nights (66.3% by international visitors). In total, visitors spent approximately $9.7 billion in Melbourne (47.9% by domestic overnight visitors). Page 7 Sources: NVS and IVS YE Dec 10, TRA & Modelled visitor expenditure in Australia’s regions YE Dec 10, TRA (1) Modelled visitor expenditure in Australia's regions (domestic overnight expenditure includes airfares and long distance transport costs, and international overnight expenditure excludes travel package costs). VFR travel to Melbourne, YE Dec 10

8. Total VFR travel to Melbourne In the YE Dec 10 Melbourne received 6.8 million VFR visitors (62.7% were on domestic daytrips). VFR visitors stayed for 15.9 million nights (58.7% by international visitors). In total, VFR visitors spent an estimated $2.5 billion in Melbourne (45.2% by international visitors). Page 8 Sources: NVS and IVS YE Dec 10, TRA (1) Based on non-modelled expenditure from the NVS and IVS (domestic overnight expenditure includes airfares and long distance transport costs, and international overnight expenditure excludes travel package costs). International expenditure relates to the WHOLE trip iin Australia by visitors who had spent at least one night in Melbourne. VFR travel to Melbourne, YE Dec 10

9. Total visitors to Melbourne and sub-regions - by Purpose of visit In the YE Dec 10 Over 3/10 (30.9%) of visitors to Melbourne travelled for the purpose of ‘visiting friends and relatives’ (VFR). ‘West’ (51.7%) had the highest proportion of VFR visitors, followed by ‘East’ (50.7%) and ‘North’ (44.0%). ‘Inner’ had the highest proportion of ‘holiday or leisure’ and ‘business’ visitors (50.3% and 19.9% respectively). ‘North’ (21.4%) had the highest proportion of ‘other’ visitors. Page 9 Sources: NVS and IVS YE Dec 10, TRA Note: Visitors may have more than one purpose for visiting Melbourne or the sub-regions. VFR travel to Melbourne, YE Dec 10

10. Total visitor nights in Melbourne and sub-regions - by Purpose of visit In the YE Dec 10 Almost 3/10 (29.5%) of nights in Melbourne were for the purpose of ‘visiting friends and relatives’ (VFR). ‘South’ (48.0%) had the highest proportion of VFR nights, followed by ‘West’ (45.1%) and ‘North’ (41.3%). ‘Inner’ had the highest proportion of ‘holiday or leisure’ and ‘business’ nights (34.0% and 17.0% respectively). ‘East’ (46.2%) had the highest proportion of ‘other’ nights. Page 10 Sources: NVS and IVS YE Dec 10, TRA VFR travel to Melbourne, YE Dec 10

11. Domestic overnight travel Travel by Australian residents aged 15 and over. PLEASE NOTE: VFR = travelling for the purpose of visiting friends and relatives. Some double counting may occur as visitors may have had more than one purpose of visit. The data used is subject to sampling variability. Users are advised to consult the data confidence tables contained in publications relevant to the datasets or otherwise available from the TRA before drawing any conclusions or inferences, or taking any action, based on the data. Page 11VFR travel to Melbourne, YE Dec 10

12. Domestic overnight travel to Melbourne In the YE Dec 10 Melbourne received 2.1 million domestic overnight VFR visitors - down by 1.3% on the YE Dec 09 and by 19.6% on the YE Dec 06. The region received 4.2 million non-VFR visitors - up by 0.8% on the YE Dec 09 and by 4.1% on the YE Dec 06. VFR visitors spent 6.6 million nights in Melbourne - down by 7.3% on the YE Dec 09 and by 23.8% on the YE Dec 06. Non-VFR visitors spent 11.6 million nights in the region - up by 5.2% on the YE Dec 09 and by 2.4% on the YE Dec 06. Page 12 Source: NVS YE Dec 10, TRA VFR travel to Melbourne, YE Dec 10

13. Average annual growth of domestic overnight VFR travel - by Selected destinations YE Dec 06 to YE Dec 10 Over the period, Melbourne experienced an average annual decline of 5.3% in domestic overnight VFR visitors. Melbourne had a higher decline than Sydney, Brisbane, Victoria and Australia. Over the period, Melbourne experienced an average annual decline of 6.6% in domestic VFR nights. Melbourne had a higher decline than Sydney, Brisbane, Victoria and Australia. Source: NVS YE Dec 10, TRA Page 13VFR travel to Melbourne, YE Dec 10

14. Origin of domestic overnight travel to Melbourne Page 14 Source: NVS YE Dec 10, TRA In the YE Dec 10 While the majority of domestic overnight VFR visitors to Melbourne came from interstate (53.5%), regional Victoria (39.7%) was the largest source market. NSW (24.1%) was the 2 nd largest source market, followed by Queensland (10.4%). As for VFR visitors, the majority of non-VFR visitors (69.2%) came from interstate. NSW (31.5%) was the largest source market, followed by regional Victoria (28.6%) and Queensland (14.3%). Nearly ¾ (72.0%) of domestic VFR nights were from interstate. NSW (28.9%) was the largest source market, followed by regional Victoria (24.8%) and Queensland (17.1%). Over ¾ (77.7%) of non-VFR nights were from interstate. As for VFR nights, NSW (31.6%) was the largest source market. Regional Victoria (20.9%) was the 2 nd largest, followed by Queensland (17.9%). Results shown in red are considered statistically unreliable and should be for internal use only VFR travel to Melbourne, YE Dec 10

15. Domestic overnight visitors to Melbourne & sub-regions - by Purpose of visit In the YE Dec 10 Over 1/3 (33.4%) of domestic overnight visitors to Melbourne travelled for the purpose of ‘visiting friends and relatives’ (VFR). ‘East’ (65.1%) had the highest proportion of domestic overnight VFR visitors, followed by ‘South’ (64.2%) and ‘West’ (60.1%). ‘Inner’ had the highest proportion of ‘holiday or leisure’ and ‘business’ visitors (41.8% and 32.8% respectively). ‘North’ (13.0%) had the highest proportion of ‘other’ visitors. Page 15 Source: NVS YE Dec 10, TRA Note: Visitors may have more than one purpose for visiting Melbourne or the sub-regions. VFR travel to Melbourne, YE Dec 10

16. Domestic visitor nights in Melbourne and sub-regions - by Purpose of visit In the YE Dec 10 Nearly 2/5 (36.1%) of domestic visitor nights in Melbourne were for the purpose of ‘visiting friends and relatives’ (VFR). ‘South’ (67.2%) had the highest proportion of domestic VFR nights, followed by ‘East’ (64.8%) and ‘West’ (63.6%). ‘Inner’ had the highest proportion of ‘holiday or leisure’ and ‘business’ nights (42.7% and 29.0% respectively). ‘North’ (11.1%) had the highest proportion of ‘other’ nights. Page 16 Source: NVS YE Dec 10, TRA VFR travel to Melbourne, YE Dec 10

17. Domestic overnight VFR travel to Melbourne - detailed VFR by Sub-region Page 17 Source: NVS YE Dec 10, TRA In the YE Dec 10 Most domestic overnight VFR travellers to Melbourne visited the ‘Inner’ sub-region (40.2% of visitors and 37.3% of nights). ‘East’ (19.5%) had the 2 nd highest proportion of visitors, while ‘South’ (19.5%) had the 2 nd highest proportion of nights. The majority of VFR visitors to Melbourne travelled for the purpose of visiting relatives (72.7% of visitors and 78.7% of nights). ‘North’ had the highest proportion of visiting relatives travellers (78.0% of visitors and 85.9% of nights). ‘Inner’ had the highest proportion of visiting friends travellers (33.8% of visitors and 27.7% of nights). Results shown in red are considered statistically unreliable and should be for internal use only VFR travel to Melbourne, YE Dec 10

18. International overnight travel Travel by international short-term visitors aged 15 and over. PLEASE NOTE: VFR = travelling for the purpose of visiting friends and relatives. Some double counting may occur as visitors may have had more than one purpose of visit. The data used is subject to sampling variability. Users are advised to consult the data confidence tables contained in publications relevant to the datasets or otherwise available from the TRA before drawing any conclusions or inferences, or taking any action, based on the data. Page 18VFR travel to Melbourne, YE Dec 10

19. International overnight travel to Melbourne In the YE Dec 10 Melbourne received 459,100 international overnight VFR visitors - up by 3.0% on the YE Dec 09 and by 29.6% on the YE Dec 06. The region received 1.1 million non-VFR visitors - up by 9.2% on the YE Dec 09 and by 8.0% on the YE Dec 06. VFR visitors spent 9.3 million nights in Melbourne - up by 7.0% on the YE Dec 09 and by 73.2% on the YE Dec 06. Non-VFR visitors spent 26.3 million nights in the region - up by 3.2% on the YE Dec 09 and by 21.4% on the YE Dec 06. Page 19 Source: IVS YE Dec 10, TRA VFR travel to Melbourne, YE Dec 10

20. Average annual growth of international VFR travel - by Selected destinations YE Dec 06 to YE Dec 10 Over the period, Melbourne experienced an average annual growth of 6.7% in international overnight VFR visitors. Melbourne had a higher growth than Sydney, Brisbane and Australia. Over the period, Melbourne experienced an average annual growth of 14.7% in international VFR nights. Melbourne had a higher growth than Sydney, Brisbane, Victoria and Australia. Source: IVS YE Dec 10, TRA Page 20VFR travel to Melbourne, YE Dec 10

21. International overnight travel to Melbourne - by Origin Page 21 Source: IVS YE Dec 10, TRA In the YE Dec 10 New Zealand (16.9%) was the largest individual source market of international overnight VFR visitors to Melbourne, followed by United Kingdom (13.8%). ‘Japan & other Asia’ (19.2%) was the largest source region. China (14.7%) was the largest individual source market of non-VFR visitors. New Zealand (13.6%) was the 2 nd largest. ‘Japan & other Asia’ (21.6%) was the largest source region. China (24.7%) was the largest individual source market of international VFR nights in Melbourne, followed by United Kingdom (11.3%). ‘Japan & other Asia’ (20.3%) was the largest source region. As for VFR nights, China (19.8%) was the largest individual source market of non-VFR visitors. India (8.2%) was the 2 nd largest. ‘Japan & other Asia’ (30.1%) was the largest source region. VFR travel to Melbourne, YE Dec 10 Results shown in red are considered statistically unreliable and should be for internal use only

22. International visitors to Melbourne and sub-regions - by Purpose of visit In the YE Dec 10 Almost 3/10 (29.7%) of international overnight visitors to Melbourne travelled for the purpose of ‘visiting friends and relatives’ (VFR). ‘South’ (65.4%) had the highest proportion of international overnight VFR visitors, followed by ‘West’ (65.2%) and ‘East’ (58.5%). ‘Inner’ had the highest proportion of ‘holiday or leisure’ and ‘business’ visitors (57.2% and 18.1% respectively). ‘East’ (16.6%) had the highest proportion of ‘education’ visitors. ‘North’ (21.3%) had the highest proportion of ‘other’ visitors. Page 22 Source: IVS YE Dec 10, TRA Note: Visitors may have more than one purpose for visiting Melbourne or the sub-regions. VFR travel to Melbourne, YE Dec 10

23. International visitor nights in Melbourne and sub-regions - by Purpose of visit In the YE Dec 10 Over ¼ (26.2%) of international visitor nights in Melbourne were for the purpose of ‘visiting friends and relatives’ (VFR). ‘South’ and ‘West’ (37.4% each) had the highest proportion of international VFR nights, followed by ‘North’ (36.6%). ‘Inner’ had the highest proportion of ‘holiday or leisure’ and ‘business’ nights (28.3% and 9.1% respectively). ‘East’ (53.0%) had the highest proportion of ‘education’ nights. ‘Inner’ and ‘West’ (8.1% each) had the highest proportion of ‘other’ nights. Page 23 Source: IVS YE Dec 10, TRA VFR travel to Melbourne, YE Dec 10

24. International overnight VFR travel to Melbourne - detailed VFR by Sub-region Page 24 Source: IVS YE Dec 10, TRA In the YE Dec 10 Most international overnight VFR travellers to Melbourne visited the ‘Inner’ sub-region (47.2% of visitors and 33.6% of nights). ‘East’ was the 2 nd most visited sub-region (22.0% of visitors and 26.3% of nights). The majority of VFR visitors to Melbourne travelled for the purpose of visiting relatives (64.1% of visitors and 77.0% of nights). ‘South’ had the highest proportion of visiting relatives travellers (75.1% of visitors and (83.7%) of nights. ‘Inner’ had the highest proportion of visiting friends travellers (34.1% of visitors and 19.4% of nights). Results shown in red are considered statistically unreliable and should be for internal use only (1) Including visitors who indicated ‘visiting an international student relative or friend studying in Australia’ VFR travel to Melbourne, YE Dec 10

25. Domestic daytrip travel Travel by Australian residents aged 15 and over. PLEASE NOTE: VFR = travelling for the (main) purpose of visiting friends and relatives. The data used is subject to sampling variability. Users are advised to consult the data confidence tables contained in publications relevant to the datasets or otherwise available from the TRA before drawing any conclusions or inferences, or taking any action, based on the data. Page 25VFR travel to Melbourne, YE Dec 10

26. Domestic daytrip travel to Melbourne In the YE Dec 10 Melbourne received nearly 4.3 million domestic daytrip VFR visitors - up by 7.8% on the YE Dec 09 and by 25.4% on the YE Dec 06. The region received 10.0 million non-VFR visitors - up by 1.2% on the YE Dec 09 and by 29.1% on the YE Dec 06. Page 26 Source: NVS YE Dec 10, TRA VFR travel to Melbourne, YE Dec 10

27. Average annual growth of domestic daytrip travel - by Selected destinations YE Dec 06 to YE Dec 10 Over the period, Melbourne experienced an average annual growth of 5.8% in domestic daytrip VFR visitors. Melbourne had a higher growth than Sydney, Victoria and Australia, but lower than Brisbane. Source: NVS YE Dec 10, TRA Page 27VFR travel to Melbourne, YE Dec 10

28. Origin of domestic daytrip travel to Melbourne Page 28 Source: NVS YE Dec 10, TRA In the YE Dec 10 While the majority of domestic daytrips VFR visitors to Melbourne came from regional Victoria (56.7%), Melbourne (41.8%) was the largest individual source market. The Peninsula (12.5%) was the 2 nd largest source market, followed by Geelong (9.0%). As for VFR visitors, the majority of non-VFR visitors (61.1%) came from regional Victoria. Melbourne (35.5%) was the largest individual source market, followed by the Peninsula (9.7%) and Gippsland (9.4%). Results shown in red are considered statistically unreliable and should be for internal use only VFR travel to Melbourne, YE Dec 10

29. Domestic daytrip visitors to Melbourne and sub-regions - by Purpose of visit In the YE Dec 10 Three tenths (30.0%) of domestic daytrip visitors to Melbourne travelled for the purpose of ‘visiting friends and relatives’ (VFR). ‘West’ (49.0%) had the highest proportion of domestic daytrip VFR visitors, followed by ‘East’ (44.7%) and ‘North’ (41.5%). ‘Inner’ had the highest proportion of ‘holiday or leisure’ and ‘business’ visitors (54.4% and 12.3% respectively). ‘North’ (23.2%) had the highest proportion of ‘other’ visitors. Page 29 Source: NVS YE Dec 10, TRA Note: Visitors may have more than one purpose for visiting Melbourne or the sub-regions. VFR travel to Melbourne, YE Dec 10

30. Domestic daytrip VFR travel to Melbourne - detailed VFR by Sub-region Page 30 Source: NVS YE Dec 10, TRA In the YE Dec 10 Most domestic daytrip VFR visitors to Melbourne visited the ‘Inner’ sub-region (27.0%). ‘West’ (21.1%) was the 2 nd most visited sub-region. The majority of VFR visitors to Melbourne travelled for the purpose of visiting relatives (61.2%). ‘South’ (67.8%) had the highest proportion of visiting relatives visitors. ‘Inner’ (46.2%) had the highest proportion of visiting friends visitors. VFR travel to Melbourne, YE Dec 10

31. Notes (1 of 2)  Definitions - –Domestic overnight trip = a trip involving a stay away from home for at least one night (but for no more than 12 months), at a place (in Australia) at least 40km from home. –Domestic overnight visitor = an Australian resident, aged 15 and over, who had taken a domestic overnight trip. –International overnight visitor = an international resident, aged 15 and over, who visited Australia (for a period of no more than 12 months) and stayed at least one night in the ‘destination’. –Domestic daytrip = a round trip for a distance of at least 50km, of a duration of at least 4 hours but not involving a night away from home (same day travel as part of overnight travel is excluded, as is routine travel such as commuting between work/school and home). –Domestic daytrip visitor = an Australian resident, aged 15 and over, who had taken a domestic daytrip. –VFR = travel for the purpose of visiting friends and relatives. –Non-VFR = travel for all purposes other than VFR (excluding any travel where purpose was not stated). –Sydney = the tourism region ‘Sydney’ (TRA regional classification). –Brisbane = the tourism region ‘Brisbane’ (TRA regional classification). –Regional Victoria = all tourism regions in Victoria other than ‘Melbourne’ (TRA regional classification). –Greater Melbourne = the tourism region ‘Melbourne’ (TRA regional classification). –Melbourne = the tourism region ‘Melbourne’ (TRA regional classification). –Melbourne’s sub-regions = ‘East’, ‘Inner’, ‘North’, ‘South’ and ‘West’. ‘East’ = Boroondara (C); Knox (C); Manningham (C); Maroondah (C); Monash (C); and Whitehorse (C). ‘Inner’ = Melbourne (C); Port Phillip (C); Stonnington (C); and Yarra (C). ‘North’= Banyule (C); Darebin (C); Hume (C); Moreland (C); and Whittlesea (C). ‘South’ = Bayside (C); Casey (C); Glen Eira (C); Greater Dandenong (C); and Kingston (C). ‘West’ = Brimbank (C); Hobsons Bay (C); Maribyrnong (C); Melton (S); Moonee Valley (C); and Wyndham (C). Page 31VFR travel to Melbourne, YE Dec 10

32. Notes (2 of 2)  Data quality, sampling variability and data confidence intervals - –As overnight visitors may have more than one reason for visiting, the variable ‘all destination purpose of visit' has been used to give the best possible estimate of all VFR travel. This may lead to some minor double counting of visitors. –The IVS and NVS are sample surveys. The results are subject to sampling variability, and therefore may differ from figures that would have been obtained if a census had been used. –Any IVS estimates below 5,000 for visitors and 500,000 for nights should be for internal use only. –Any NVS estimates below 50,000 for overnight visitors, 500,000 for nights and 200,000 for daytrips should be for internal use only.  Disclaimer: –The information in this report is presented in good faith and on the basis that neither datainsights, nor its agents or employees, are liable (whether by reason of error, omission, negligence, lack of care or otherwise) to any person for any damage or loss whatsoever which has occurred or may occur in relation to that person taking or not taking (as the case may be) action in respect of any statement, information or advice given in the report. The National Visitor Survey and the International Visitor Survey are sample surveys. As with all sample surveys, the results are subject to sampling variability, and therefore may differ from figures that would have been obtained if a census had been used. Users of the data are advised to consult data confidence tables contained in publications relevant to each survey or otherwise available from those organisations administrating or managing the surveys before drawing any conclusions or inferences, or taking any action, based on the data.  © Copyright, datainsights and Destination Melbourne, 2011. –This work is copyright. Apart from any use, as permitted under Copyright Act 1968, no part of this work may be reproduced, without written permission of datainsights or Destination Melbourne. Page 32VFR travel to Melbourne, YE Dec 10