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 has struck a $12 million partnership with Queensland to market the state overseas. Qantas will contribute $6 million over three years and the Queensland government will match that amount, with joint campaigns due to start later this year in several overseas markets.
According to the article, Qantas redirected funding to state tourism bodies after a breakdown in relations between Qantas CEO Alan Joyce and Tourism Australia chairman Geoff Dixon. That dispute prompted Qantas to pursue direct deals with states rather than channel funds through Tourism Australia.
The Queensland deal is smaller than Qantas's biggest recent partnership: the article says a $30 million deal with NSW’s tourism body in April remains the largest. Until the breakdown, Qantas and Tourism Australia also had a combined $44 million partnership over three years to promote Australia to overseas tourists.
No. The article reports Qantas has said it will not walk away from funding the annual 'G'day LA' event in the US, even though Tourism Australia has been involved with the event.
Queensland Tourism Minister Jann Stuckey said the partnership will focus on key markets including New Zealand, the United States, Asia and the United Kingdom, with the first joint campaigns planned to roll out later this year.
Queensland aims to boost overnight visitor spending to $30 billion within the next seven years. The state says the Qantas partnership will be a 'powerful tool' to attract more visitors from its key international markets and help reach that target.
Tourism Australia has sought alternative airline partners to make up for the lost Qantas funds, signing marketing deals with other carriers including Virgin Australia and Air China, according to the article.
Yes — the article says Qantas remains in talks with other state governments and another partnership was expected to be announced soon. For everyday investors, this signals Qantas is shifting marketing strategy toward direct state partnerships, which may affect how the company allocates marketing spend and builds routes and demand for particular markets.
Call 1300 880 160
Start a chat
Schedule a call
