Business
Virgin Partners With Tourism Australia
Virgin Australia is partnering with Tourism Australia in the latter’s effort to beef up its tourism campaign for the country. The partnership came after Qantas cut of its financial support for the tourism body.
Tourism Australia and Virgin have announced that they would focus on increasing key inbound visitors the country. These would mainly be tourists coming from New Zealand, Asia, mainland Europe and the US.
The partnership would run for three years and would be worth $12 million. The original deal between the two organizations was $6 million, which was signed last May.
Andrew McEvoy expressed confidence with the partnership, saying it is “both logical and compelling.” McEvoy is currently the managing director of Tourism Australia.
Virgin Australia chief executive John Borghetti, meanwhile, said the partnership recognizes how important tourism is to Australia’s economy. He emphasized that Virgin is committed to promoting the country as a world-class tourism destination.
Qantas, Virgin’s fiercest rival, cut off its 40-year partnership with the tourism body last November because of a potential conflict of interest. Current Tourism Australia chairman Geoff Dixon was Qantas chief executive from 2001 to 2008.
The marketing partnership was worth $50 million. It also left the tourism body without its biggest contributor. Over the last three years alone, Qantas provided some $44 million worth of funding for Tourism Australia’s promotional campaigns.
Fortunately for the tourism body, Virgin Australia was quick to step in.