TOURISM VICTORIA

Economic Contribution of Tourism to

Victoria 2007-2008

Tourism is a significant economic driver for Victoria. Tourism was estimated to be worth $15.8 billion to
Victoria’s economy and employ approximately184,800 people in 2007-2008.

Sustainable Tourism Cooperative Research Centre (STCRC) has

provided Tourism Victoria with an estimate of tourism’s Tourism 's Direct and Indirect Contribution to
economic contribution to Victoria for 2007-2008. This analysis Victoria's Gross State Product (GSP)
provides an update of the STCRC estimates for 2006-07. 16.0 7.0%
15.8
The STCRC prepares Tourism Satellite Accounts (TSA) for each 15.8

Gross State Product ($b)

Australian state and territory that is reconciled to the National 6.5%

Gross State Product

15.6

(% of State total)
TSA produced by the Australian Bureau of Statistics (ABS). TSA
are best estimates based on the internationally recognised and 15.4
accepted methodology. 6.0%
15.2 15.1
The TSA includes measures for the economic contribution of
tourism to Gross Value Added (GVA), Gross State Product 15.0
5.5%
(GSP) and employment. It also provides information about
14.8
tourism consumption and output regarding the composition of
the tourism industry and its interaction with other industries. 14.6 5.0%
2006-2007 2007-2008
Gross State Product ($b) Gross State Product (%of State total)
GROSS STATE PRODUCT (GSP)
Tourism directly contributes $8.6 billion to the Victorian
economy and accounts for 3.2% of GSP.
GROSS VALUE ADDED (GVA)
Every conventional industry depends directly or indirectly upon
The true contribution of tourism to the Victorian economy is
spending by travellers, although the links may not immediately
best measured by GVA. The Victorian tourism industry
be apparent. The benefits of the tourism dollar are spread well
directly accounted for $7.2 billion, or 3.0% of total industry
beyond the hotel lobby, filtering through to the petrol pump,
GVA for all industries in Victoria during 2007-2008.
the corner store and even the local mechanic. This flow on is
referred to as the indirect economic contribution of tourism.
Accommodation had the largest share in tourism GVA (12.5%),
followed by other retail trade (10.7%), air and water transport
Tourism indirectly contributes an additional $7.2 billion to the
(9.6%), education (9.4%) and cafés, restaurants and food outlets
Victorian economy. Therefore, tourism is worth $15.8 billion in
(9.3%).
total or 5.9% of total Victorian GSP.
Indirectly, tourism contributed an additional $6.8 billion to GVA
The Victorian tourism industry’s total (direct and indirect)
in Victoria. Therefore, tourism is worth $14.0 billion in total or
contribution to the State economy has grown1 for Gross State
5.8% of total Victorian GVA.
Product (GSP) over the period 2006-07 and 2007-08.

As highlighted in the following chart, tourism is currently worth
$15.8 billion to Victoria’s economy, or 5.9% of total Victorian
GSP. This represents a 4.4% increase from $15.1 billion,
however a slight decline in share from 6.1% in 2006-07.
1
The model for each period used slightly different statistical techniques and
therefore there are some small analytical limitations in comparing 2006-07 and
2007-08.
Gross Value Added (GVA) has grown over the period 2006-07
and 2007-08.
As highlighted in the chart below, tourism is currently worth
$14.0 billion in GVA, or 5.8% of total Victorian GVA. This
represents a 4.4% increase from $13.4 billion, with share
remaining at 5.8%.
 TOURISM VICTORIA

Economic Contribution of Tourism to

Victoria 2007-2008

TOURISM AND EMPLOYMENT

Tourism 's Direct and Indirect Contribution to
Victoria's Gross Value Added (GVA) In 2007-2008, tourism consumption directly generated
14.1 14.0 7.0% approximately 105,300 jobs in Victoria or 4.0% of total
14.0 employment in the state.
6.5%
13.9
Gross Value Added ($b)

13.8 Gross Value Added Looking at the distribution of tourism jobs across Victorian
6.0% (% of State total) industries, the retail trade (24.2%) accounted for the largest
13.7
share of direct tourism employment, followed by
13.6 5.5%
accommodation (12.6%) and cafes and restaurants (10.2%).
13.5 13.4
5.0%
13.4
Direct Contribution to Em ploym ent
13.3 2007-2008
4.5%
Air and wat er Clubs, pub s,
13.2 t averns and bars,
t ransport,
5.2% 4.5%
13.1 4.0%
2006-2007 2007-2008 Road transport
Retail trade,
and moto r vehicle
Gross Value Added ($b) Gross Value Added (%of St at e t ot al) 24.2%
hiring,
5.3%

Victoria’s share of the Australian Tourism Industry has M anuf act uring,
8.4%
remained steady for the period 2006-2007 to 2007-08.

Victoria's Share of the Australian 2006-07 2007-08

Tourism Industry Educat ion,

9.1%
Accommo dation,
Tourism Gross Value Added ($m) 22.3% 22.3%
12.6 %
Tourism Gross State Product ($m) 22.1% 22.1% Cafés and
rest aurant s,
10.2 %

Tourism indirectly contributes an additional 79,500 jobs to the

Victorian economy.

Therefore tourism creates approximately 184,800 jobs in total

or 7.1% of employment in Victoria.

Tourism’s share of total employment (7.1%) was higher than

tourism’s share of industry GVA (5.8%) because tourism is
more labour intensive than many other industries.

As highlighted in the following chart, the number of persons

employed in the Victorian tourism industry in 2007-08 was
184.800 in total, or 7.1% of total employment in Victoria. This
was an 3.1% increase from 179,200 jobs and 7.0% in 2006-07.

Restaurant - St Kilda
 TOURISM VICTORIA

Economic Contribution of Tourism to

Victoria 2007-2008

according to the types of goods or services they sell, such as

textiles, petroleum, education or restaurant services.

Victoria's Tourism Jobs Tourism is actually a demand-oriented concept. Anyone can

186 (direct & indirect) 8.0%
184.8 buy a t-shirt, a tank of petrol, attend a conference or buy a
185
meal, but it is only when the purchaser is travelling, away from
184
7.5%
his/her normal residential area, does that spending become part
183
Employment (000s)

of the tourism industry.

(% of State total)
Employment

182

181 7.0% Therefore, unlike traditional supply side industries, it’s the
180 status of the purchaser of the goods and services (rather than
179.2
179
the producer) that defines a tourism transaction.
6.5%
178
A tourist or visitor is defined as any person travelling for
177
business or leisure, but not people travelling as part of a
176 6.0%
permanent migration or regular commuting. In Australia,
2006-2007 2007-2008
Employment (000s) Employment (%of State tot al)
using Australian Bureau of Statistics (ABS) and Tourism
Research Australia (TRA) definitions, a domestic tourist is a
person travelling at least 40km each way overnight or at
least 25km each way on a day trip.
Victoria’s share of Australian tourism employment remained
steady at 21.1% 2007-2008.
Victorian tourism Gross State Product (GSP) represents
MORE INFORMATION the total market value (taxes less subsides) of goods and
For more detail on the methodology and results please refer to services used in Victoria, after subtracting the cost of
the full report, “Tourism within States and Territories”, 2007- production.
2008 which can be found at:
http://www.crctourism.com.au/BookShop/BookDetail.aspx?d Victorian tourism Gross Value Added (GVA) measures the
=684 value of tourism gross output at basic prices by all industries
which supply tourism products, less the value of the inputs
Tourism’s contribution to the Australian Economy 1997-98 used in producing these tourism products. Direct tourism
to 2007-08, Tourism Research Australia, Canberra is GVA is directly comparable with the GVA of ‘conventional’
another useful reference.
industries such as agriculture and manufacturing and should
http://www.tra.australia.com/content/documents/Economic%
be used for comparison purposes.
20Analysis/Tourism%20Business/Tourisms_contribution_199
7-98%20to%202007-08_FINAL.pdf

Sources:
DEFINITIONS “Tourism within States and Territories”, Sustainable
The Tourism Industry: Tourism is an unconventional industry. Tourism Cooperative Research Centre, November 2009.
Industries are conventionally defined on the supply side, that is, “Tourism Satellite Account 2006-07: Victoria”, Sustainable
Tourism Cooperative Research Centre, November 2008.
 TOURISM VICTORIA

Economic Contribution of Tourism to

Victoria 2007-2008

Updated by Tourism Victoria, November 2009