Qantas thumbs nose at Tourism Australia in Qld deal
In the biggest deal since it set aside $15 million for NSW in April, Qantas will contribute $6 million to market Queensland to foreign tourists over three years, which will be matched by the state.
The decision to allocate funds to the states rather than Tourism Australia follows a breakdown in relations between Qantas boss Alan Joyce and his predecessor, Geoff Dixon, late last year. Mr Joyce has demanded his former mentor step aside as Tourism Australia chairman or dissociate himself from a group of high-profile investors who had been agitating for a change in strategic direction at Qantas last year.
The group has since sold its small stake in Qantas for a tidy profit.
Qantas remains in talks with other state governments about funding for tourism marketing, and another partnership is expected to be announced next week. But the $30 million deal with NSW's tourism body in April will remain its largest.
Tourism Australia has been making up for the loss of funds from Qantas by signing marketing deals with other airlines, including Virgin Australia and most recently, Air China.
Qantas and Queensland's tourism body are finalising details for the first joint campaigns under the new deal, which are set to begin later this year in a number of overseas markets.
Queensland Tourism Minister Jann Stuckey said the the partnership with Qantas would help attract more visitors from the state's key markets, including New Zealand, the US, Asia and the UK.
The state wants to boost overnight visitor spending to $30 billion within the next seven years, and Ms Stuckey said the latest deal would be a "powerful tool" for attracting more visitors to the state.
Until the breakdown in relations, Qantas and Tourism Australia had a $44 million partnership over three years to promote the country to overseas tourists.
However, Qantas has said it would not walk away from its funding of the annual "G'day LA" event in the US, despite the fact that Tourism Australia was involved.
Frequently Asked Questions about this Article…
Qantas struck a $12 million deal with Queensland to promote the state overseas. Qantas will contribute $6 million over three years and the Queensland government will match that $6 million, funding joint marketing campaigns.
According to the article, Qantas shifted funds to state tourism bodies after a breakdown in relations between Qantas CEO Alan Joyce and former Qantas boss Geoff Dixon, who was serving as Tourism Australia chairman. Mr Joyce demanded Mr Dixon step aside or dissociate himself from a group of investors, prompting Qantas to pursue direct deals with states.
Tourism Australia has been signing marketing deals with other airlines to replace the lost Qantas funding. The article notes partnerships with Virgin Australia and, most recently, Air China.
Yes. The article says Qantas remains in talks with other state governments about tourism marketing funding, with another partnership expected to be announced soon. Earlier in the year Qantas put aside funds for NSW, and the article notes a significant NSW deal in April that remains its largest.
Qantas and Queensland are finalising details and the first joint campaigns are set to begin later this year. The campaigns will target key markets such as New Zealand, the United States, Asia and the United Kingdom.
Queensland’s tourism minister said the partnership will help attract more visitors from key markets and support the state’s goal of boosting overnight visitor spending to $30 billion within the next seven years.
For investors, the move shows Qantas is re-directing marketing spend into direct state partnerships rather than national bodies, which could affect how the airline markets its routes and demand recovery. The article also notes a group of high-profile investors who had agitated over Qantas strategy sold a small stake for a profit, highlighting investor interest in the company’s strategic direction.
No. The article states Qantas has said it will not walk away from funding the annual "G'day LA" event in the US, even though Tourism Australia is involved, indicating Qantas will still participate in some Tourism Australia-related activities.
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