WA inks $7m deal to join Qantas tourism push
The airline announced on Wednesday that it had signed a $7.65 million deal with the West Australian government to market the state overseas and within Australia.
The funding contributions will be split between the airline and the state over three years.
Qantas has inked similar marketing deals with NSW, Queensland and the Northern Territory, and plans to sign up Victoria, South Australia and Tasmania.
The airline's decision to funnel money to the states and territories rather than the country's peak tourism body, Tourism Australia, follows the breakdown in the once close relationship between Mr Joyce and Mr Dixon 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.
Despite the group selling its small stake in Qantas in January for a tidy profit, neither the airline nor Mr Dixon and Tourism Australia have shown any sign of backing down.
Mr Joyce said the latest marketing deal would deliver large windfalls for Western Australia, particularly in encouraging foreigners to visit.
The agreement will focus on potential visitors from Britain, the US and Singapore, as well as domestic tourists.
WA Tourism Minister Liza Harvey said the deal would play an important role in the state's bid to increase the value of tourism in Western Australia from $7.5 billion to $12 billion by 2020.
The agreement will include international marketing campaigns.
So far, the states and territories have signed joint marketing deals totalling $56 million - about half of which is from the airline.
The largest agreement has been a $30 million deal between Qantas and NSW.
Tourism Australia has been making up for the loss of funds from Qantas by signing marketing deals with other airlines, including Virgin Australia, Etihad, Air New Zealand and Chinese carriers.
Frequently Asked Questions about this Article…
Qantas has signed a A$7.65 million marketing agreement with the Western Australian government to promote the state both overseas and within Australia. The funding will be shared between Qantas and the state over a three‑year period.
According to the article, Qantas shifted its marketing spend to states and territories after a breakdown in the previously close relationship between Qantas CEO Alan Joyce and former mentor Geoff Dixon, who was Tourism Australia chairman. The airline decided to funnel money directly to states rather than the national peak body.
The Western Australia agreement will focus on potential visitors from Britain, the United States and Singapore, as well as domestic Australian tourists, and it will include international marketing campaigns.
The WA deal is one of several state marketing partnerships. Qantas has already signed similar agreements with New South Wales, Queensland and the Northern Territory, plans to sign Victoria, South Australia and Tasmania, and so far the states and territories have signed joint marketing deals totalling A$56 million.
The article states Qantas has poured millions into promoting states and territories, bringing the total it has devoted to publicising the states and territories to about A$28 million since the dispute between Alan Joyce and Geoff Dixon.
Western Australia aims to increase the value of tourism from A$7.5 billion to A$12 billion by 2020. WA Tourism Minister Liza Harvey said the Qantas marketing deal will play an important role in that bid, particularly by encouraging more international visitors.
The article reports Tourism Australia has been making up for the loss of funds from Qantas by signing marketing deals with other airlines, including Virgin Australia, Etihad, Air New Zealand and various Chinese carriers.
So far, about half of the A$56 million in joint state and territory marketing deals has come from the airline. For the WA agreement specifically, the funding contributions are being split between Qantas and the state and will be paid over three years.
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