The Value of Grey Tourism: Maximising the Benefits for Queensland - Queensland Parliament

Queensland Parliamentary Library

The Value of Grey Tourism:
Maximising the Benefits for
Queensland

With Queensland’s international tourism markets affected by
overseas events such as terrorism and economic downturns, it is
becoming more important for tourism operators to identify and
target domestic niche markets. This Research Brief discusses
grey tourism, travel undertaken by individuals 60 years or older,
and its benefits for Queensland. Methods of maximising these
benefits are identified.

                                              Lyndel Bates
                         Research Brief No 2004/04

Queensland Parliamentary Library
                    Research Publications and Resources Section
Ms Karen Sampford, Director                                                (07) 3406 7116
Ms Renee Giskes, Acting Senior Parliamentary Research Officer (07) 3406 7241

About the author:
Ms Lyndel Bates is the Senior Research Officer for the Parliamentary Travelsafe Committee of
the Queensland Parliament.

© Queensland Parliamentary Library, 2004
ISSN 1443-7902
ISBN 0 7345 2886 8
APRIL 2004

Copyright protects this publication. Except for purposes permitted by the Copyright Act
1968, reproduction by whatever means is prohibited, other than by Members of the
Queensland Parliament in the course of their official duties, without the prior written
permission of the Clerk of the Parliament on behalf of the Parliament of Queensland.

Inquiries should be addressed to:
Director, Research Publications & Resources
Queensland Parliamentary Library
Parliament House
George Street, Brisbane QLD 4000
Ms Karen Sampford. (Tel: 07 3406 7116)
Email: Karen.Sampford@parliament.qld.gov.au

Information about Research Publications can be found on the Internet at:
http://www.parliament.qld.gov.au/Parlib/Publications/publications.htm

CONTENTS

EXECUTIVE SUMMARY .......................................................................................

1    INTRODUCTION.............................................................................................1

    1.1   TOURISM IN QUEENSLAND .............................................................................2

     1.1.1      How does Queensland benefit from tourism?........................................2

    1.2   WHY ARE NICHE MARKETS IMPORTANT? .......................................................3

2    GREY TOURISM .............................................................................................4

    2.1   HOW IS A GREY TOURIST DEFINED?................................................................4

    2.2   WHAT IS THE GREY TOURISM MARKET? .........................................................4

     2.2.1      Who is a grey tourist? ............................................................................5

     2.2.2      What are the different types of grey tourist? .........................................6

     2.2.3      How is the market changing?.................................................................8

     2.2.4      Why do seniors travel? ..........................................................................8

3    BENEFITS OF GREY TOURISM..................................................................9

    3.1   WHAT ARE THE BENEFITS FOR GREY TOURISTS? ............................................9

    3.2   WHAT ARE THE BENEFITS FOR QUEENSLAND?.............................................10

     3.2.1      Holiday length......................................................................................10

     3.2.2      Holidaying in off-peak periods ............................................................10

     3.2.3      Travel to regional areas........................................................................11

4    BARRIERS TO GREY TOURISM...............................................................11

    4.1   WHAT PERSONAL BARRIERS ARE THERE?.....................................................12

     4.1.1      Finances ...............................................................................................12

     4.1.2      Health and age .....................................................................................12

     4.1.3      Time constraints and family responsibilities .......................................13

     4.1.4      Lack of travelling companion ..............................................................14

4.2    WHAT TOURISM ORGANISATION BARRIERS ARE THERE?.............................. 14

    4.3    WHAT GOVERNMENT BARRIERS ARE THERE?............................................... 15

      4.3.1      What do governments do to encourage grey tourism? ........................ 16

5     WHAT CAN ORGANISATIONS DO TO ATTRACT GREY TOURISTS? ...... 17

6     CONCLUSION ............................................................................................... 18

RECENT QPL RESEARCH PUBLICATIONS 2004........................................ 19

The Value of Grey Tourism: Maximising the Benefits for Queensland

EXECUTIVE SUMMARY
Tourism supports significant numbers of jobs and contributes to a number of
industries including accommodation, food and drink, airfares, shopping and fuel in
Queensland (pages 2-3). With international tourism markets affected by global
events, domestic niche markets offer opportunities for Queensland organisations.
Grey tourism is one type of domestic niche market (page 3).
Grey tourism refers to travellers aged 60 years or older (page 4). This group is
expected to increase significantly from 3.3 million Australians in 2002 to 5.9
million by 2021 (page 5). Research suggests that 80% of the individuals within this
group want to travel now or in the near future (page 5).
Grey tourists travel for a number of reasons including rest and relaxation, nostalgia,
social interaction, education, escape, adventure, maintaining health and well-being,
status as well as mental or physical stimulation. Younger seniors are more likely to
travel for pleasure while older seniors are more interested in visiting relatives and
friends (pages 8-9).
Seniors who travel are likely to have increased life satisfaction, happy memories
and socialising opportunities as well as a sense of accomplishment and
achievement. Travel also provides some seniors with their desired lifestyle
(pages 9-10).
Queensland is likely to benefit from this market segment because seniors take
longer holidays, holiday in off-peak periods and travel in regional areas (pages 10-
11). Seniors therefore have a greater opportunity to spend money in Queensland, as
well as regional areas. Grey tourism may help organisations earn a more regular
income. It offers opportunities to organisations that provide tourism goods and
services.
Seniors may be discouraged from travelling by personal circumstances (cost,
health, age, time constraints, family responsibilities, lack of a travelling
companion) (pages 11-14), tourism organisations (high charges, lack of
information) (pages 14-15) and governments (unsafe and insecure environments)
(page 15). Organisations can attract grey tourists by pricing goods and services
correctly and providing useful facilities, information and positive experiences
(page 17).
Governments can encourage grey tourism by introducing polices, providing travel
concessions and writing travel guides aimed at grey tourists. The Queensland
Government has used all of these techniques (page 16).

The Value of Grey Tourism: Maximising the Benefits for Queensland                          Page 1

1    INTRODUCTION

This Research Brief is designed to provide the reader with an introduction to the
advantages of grey tourism for Queensland. The Brief provides an overview of the
importance of tourism to the Queensland economy as well as highlighting the
importance of exploiting niche markets. The grey tourism market is described,
benefits of grey tourism outlined, and barriers discussed before outlining strategies
identified by research to increase grey tourism.

Tourism is important within the Australian economy. In 2001-02, tourists used
$70.8 billion of goods and services. Of this, domestic tourists consumed 75.9%
while international tourists consumed the remaining 24.1%.1

Tourism is not a single industry but rather a collection of spending by a group of
certain people on a variety of goods and services.2 The goods and services
consumed by tourists include accommodation, food services, transport, attractions,
retail, finance and telecommunications.3

Tourism Queensland defines a tourist as an individual travelling at least 40
kilometres from their place of residence for a period of less than twelve months.
The purposes of the trip can be a holiday, leisure, visiting friends or relatives, an
event or festival, business reasons, a conference, shopping, medical or educational
reasons.4

Demographic changes are likely to affect strongly the domestic tourism market in
Australia for the next two decades. Within the next 10 years, baby boomers are
likely to increase their domestic travel. After this time, as they age and reduce their
travel, there is likely to be a corresponding downturn in the domestic tourism
market.5

1
    Australian Bureau of Statistics, Australian National Accounts: Tourism Satellite Account,
    catalogue 5249.0, 2003, pp 6-7.

2
    Australian Bureau of Statistics, Australian National Accounts: Tourism Satellite Account, p 5.

3
    Tourism Queensland, Fact Sheet – Tourism and the Economy, Tourism Queensland, Brisbane,
    2002, p 1.

4
    Tourism Queensland, Fact Sheet – Tourism and the Economy, p 1.

5
    Tourism Forecasting Council, Tourism Forecasting Council – December 2003 Forecasts, No
    17, Department of Industry, Tourism and Resources, Canberra, 2004, p 38.

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1.1 TOURISM IN QUEENSLAND

Tourism is important for Queensland. In 1998-99, tourists spent $14.6 billion in
Queensland. Domestic tourists spent $9.1 billion, international tourists spent $3.5
billion, and day visitors spent $2.0 billion.6 Most of Queensland’s tourists (90%) in
2003 came from the domestic market.7

1.1.1    How does Queensland benefit from tourism?

Queensland’s economy benefits from domestic and international visitors. Tourism
is directly responsible for employment opportunities and contributes significantly
to the income of some industries.

Tourism employs 9.3% (over 150,000 people) of all people employed in
Queensland. Tourism accounts for 7.3% of people in a full-time position and
14.7% of individuals in a part-time position in Queensland.8

For every 167 domestic visitors or 65 international visitors to Queensland, one job
is created.9 Approximately 80% of full-time tourism positions exist because of
expenditure by individuals travelling for leisure, recreation/holiday purposes or for
visiting friends and relatives. The remaining full-time positions rely on expenditure
by individuals travelling for business or other reasons.10

The four areas that benefited most from tourism expenditure in Queensland in
1998-99 were accommodation, food and drink (36.0% of tourism expenditure),

6
     Queensland Treasury in Tourism Queensland, Annual Report 2002-2003, Tourism Queensland,
     Brisbane, 2003, p 10, www.tq.com.au, downloaded 5 March 2004.

7
     Tourism Queensland, Tourism Facts and Figures, Tourism Queensland, Brisbane, 2004, p 1,
     www.tq.com.au, downloaded 18 March 2004.

8
     Office of Economic and Statistical Research, The Contribution of International and Domestic
     Visitor Expenditure to the Queensland Regional Economies: 1998-99, Queensland Treasury,
     Brisbane, 2002, p 9, www.oesr.qld.gov.au, downloaded 10 March 2004.

9
     Queensland Treasury in Tourism Queensland, Annual Report 2002-2003, p 10.

10
     Office of Economic and Statistical Research, The Contribution of International and Domestic
     Visitor Expenditure to the Queensland Economy: 1998-99, Queensland Treasury, Brisbane,
     2001, p 10, www.oesr.qld.gov.au, downloaded 5 March 2004.

The Value of Grey Tourism: Maximising the Benefits for Queensland                       Page 3

airfares (15.6%), shopping (15.1%) and fuel (8.2%).11 These four categories
accounted for nearly 75% of total tourism expenditure.

1.2 WHY ARE NICHE MARKETS IMPORTANT?

Global events strongly influence the international tourism market. Since the
destruction of the twin towers and the collapse of Ansett in September 2001,
Australia’s international tourism industry has suffered a downturn.12 After
beginning to improve, further global events including the second Gulf War and the
Severe Acute Respiratory Syndrome epidemic led to a further downturn in
international visitors. Although the number of visitors and the nights they stay in
Australia is gradually increasing, visitor numbers and visitor nights are still below
September 2001 levels.

International visitors to Queensland also declined in this period from 2.05 million
in the year ended September 2001 to 1.83 million in the year ended September
2003.13 International visitor nights also fell in this period from 27.8 million to 26.3
million. This is an average annual decline of 5.6% and 2.6% respectively. Despite
the number of international visitors to Queensland continuing to fall, international
visitor nights increased between September 2002 and September 2003. This means
that fewer people are visiting Queensland but those who visit are staying for longer
periods.

To reduce the negative effects of a fall in international tourists due to
circumstances beyond individual, business or government control, tourist operators
can diversify and target domestic niche markets. The Tourism Queensland website
has fact sheets and special interest reports available on a number of niche tourism
markets including grey, wine, golf, gay and lesbian, dive, food and international
backpackers.14 This brief will concentrate on domestic grey tourism in detail.

11
     Office of Economic and Statistical Research, The Contribution of International and Domestic
     Visitor Expenditure to the Queensland Economy: 1998-99, p 15.

12
     Tourism Queensland, International Visitor Survey, Tourism Queensland, Brisbane, 2003, p 1
     www.tq.com.au, downloaded 5 March 2004.

13
     Tourism Queensland, International Visitor Survey, p 4.

14
     Tourism Queensland, Special Interest Reports and Fact Sheets, Tourism Queensland, Brisbane,
     2004, www.tq.com.au, downloaded 5 March 2004.

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2    GREY TOURISM

Grey tourism is a specific niche market that caters towards older travellers. A
number of other terms also refer to this group including senior, mature, woopies
(well-off older people) and prime lifers.15

2.1 HOW IS A GREY TOURIST DEFINED?

Tourism Queensland states that the general definition of a grey tourist is an
individual aged 60 or over.16 The selection of 60 years appears arbitrary.
Traditionally, individuals aged 65 years or older have been classified as senior;
however, the age has fallen over time to as low as 50 years in some cases.17 This
Research Brief will define a grey tourist as 60 years or older, consistent with the
Tourism Queensland definition.

2.2 WHAT IS THE GREY TOURISM MARKET?

As the Australian population ages over time, the grey tourist will become a larger
market for tourism operators. The ageing of the population has resulted from a
combination of reduced birth rates and improved health services.18

Seniors are expected to increase as a proportion of the population. The Australian
Bureau of Statistics estimates that 17% of the Australian population was 60 years
or over in 2002 with a projected rise to 25% of the population by 2021.19 Over the
same time individuals aged under 15 will fall from approximately 20% to 16%.

15
     R J Callan, & L Bowan, ‘Selecting a hotel and determining salient quality attributes: A
     preliminary study of mature British travellers’, International Journal of Tourism Research,
     Vol 2, 2000, p 97.

16
     Tourism Queensland, Grey Tourism (Seniors),             Tourism    Queensland,   Brisbane,
     www.tq.com.au, downloaded 9 March 2004.

17
     Lago & Poffley; Hughes in Callan, & Bowan, p. 97.

18
     Australian Bureau of Statistics in J Kim, S Wei & H Ruys, ‘Segmenting the market of west
     Australian senior tourists using an artificial neural network’, Tourism Management, Vol 24,
     2003, p 25.

19
     Australian Bureau of Statistics, Population Projections Australia 2002 to 2101, Catalogue
     3222.0, Australian Bureau of Statistics, Canberra, 2003, p 81.

The Value of Grey Tourism: Maximising the Benefits for Queensland                            Page 5

Not only will people over the age of 60 increase as a proportion of Australia’s
population, they will also increase in absolute numbers. In 2002, there were
3.3 million individuals aged 60 or over; by 2021 this figure is estimated to increase
to 5.9 million.20 As the number of seniors increases, businesses have the
opportunity to benefit from providing goods and services to this group.21

Tourism organisations are particularly likely to benefit because research indicates
that 80% of seniors desire to travel immediately or in the near future.22 This means
that, using the figures above, approximately 2.7 million seniors would like to travel
now or shortly. This will increase to approximately 4.7 million by 2021. In 1998,
75% of seniors travelled.23

By 2021, the number of older people living in Queensland is projected to increase
by 110.2%.24 Seniors are more likely to travel intrastate rather than interstate or
overseas.25 This makes Queensland seniors an important target market for
Queensland organisations.

2.2.1 Who is a grey tourist?

Table 1 describes the basic characteristics of the grey tourist in Australia. From the
table, most grey tourists appear to be females aged between 65 and 74 in a married
or defacto partnership.

20
     Australian Bureau of Statistics, Population Projections Australia 2002 to 2101, p 81.

21
     H Ruys & S Wei, ‘Seniors tourism’, Special Interest Tourism, N Douglas, N Douglas & R
     Derrett, (eds), John Wiley and Sons, Brisbane, p 410.

22
     B Golik, Not Over the Hill: Just Enjoying the View, Office of Ageing, Brisbane, 1999, p 61.

23
     Golik, p 60.

24
     Office of Economic and Statistical Research, Population Projections to 2051: Queensland and
     Statistical Divisions, Queensland Treasury, Brisbane, 2003, p 4.

25
     ACNielsen in B Prideaux, S Wei & H Ruys, ‘The senior drive tour market in Australia’,
     Journal of Vacation Marketing, 7(3), 2001, p 211.

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Table 1: Characteristics of the grey tourists

             Characteristic                              Percentage

             Male                                          45.2%

             Female                                        54.8%

             Aged under 65                                 24.4%

             Aged 65 to 74                                 43.6%

             Aged 75+                                       32%

             Married/defacto                               59.5%

             Separated/divorced                            7.9%

             Widowed                                       27.1%

             Never married                                 5.5%

             Employed (aged 60 to 64)                      31.5%

             Employed (aged 65+)                           5.7%

Source: Golik, J. 1999, Not Over the Hill: Just Enjoying the View, Office of
Ageing, Brisbane, p. 61.

2.2.2    What are the different types of grey tourist?

Although Table 1 describes the grey tourism market as homogeneous, the seniors
travel market has many sub-groups.26 Demographic, geographic, psychographic or
behavioural characteristics can be used to identify these sub-groups.27

Australian research identified four distinct groups, Vacationers, Livewires,
Explorers and Homebodies, within grey tourism. Of all seniors, 26.5% are
vacationers, 28.1% are livewires, 21.5% are explorers and 23.9% are homebodies.
Vacationers, Livewires and Explorers prefer different types of holidays. As the
Homebodies name suggests, this group is less motivated to travel.28 Table 2

26
     Gustin & Weaver in Callan & Bowman, p 100.

27
     Ruys & Wei, p 417.

28
     Golik, pp 73-75.

The Value of Grey Tourism: Maximising the Benefits for Queensland               Page 7

identifies the differences between these groups. By being aware of these
differences, tourism operators can create products and services most appropriate
for each sub-market.

Table 2: Motivations for each grey tourism market segment
  Vacationers             Livewires           Explorers              Home Bodies
     (26.5%)               (28.1%)             (21.5%)                 (23.9%)
• Are enjoying • Are enjoying • Are the most                        • Are cautious
    later life            ‘living it up’      extroverted             and hesitant
                                              grey tourist            travellers
• Want to travel • Are keen to • Crave                   new        • Lack       the
    to new places         have        new     experiences             motivation to
    while health          experiences         and meeting             travel
    permits                                   new people
• Do not want • Want to meet • Do not travel                        •   Most      travel
    to put travel         new      people     to be with                will be to visit
    off                   and socialise       family       or           family       and
                                              friends                   relatives
• Generally          • Like to tell • Do not seek                   •   Are          not
    have a partner        others about        comfortable or            interested in
                          their               familiar                  meeting new
                          experiences         locations                 people
• Want a break • Want                       • Want to be            •   Do not desire
    from routine          continuous          active      and           new
    and          are      personal            involved                  experiences
    prepared      to      growth       and
    pay for this          development
• Like to spend • Seek                self- • Seek personal         •   See no need
    time       with       fulfilment          growth      and           for personal
    family      and                           development               growth     and
    friends                                                             enrichment
• Value comfort • Value comfort
    and security
                     • Like to spend
                          time        with
                          family       and
                          friends

Source: Golik, J. 1999, Not Over the Hill: Just Enjoying the View, Office of
Ageing, Brisbane, pp 73-75.

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2.2.3    How is the market changing?

The grey tourism market is in the process of change. From 2006, baby boomers
(individuals born between 1946 and 1965) will begin to turn 60.29 Significant
differences between current seniors and baby boomer seniors are likely, including
the level of disposable income, health and priorities.

Baby boomers are likely to have greater levels of disposable income than previous
generations because of greater access to private superannuation and fewer
dependents.30 Later retirement or partial retirement involving part-time work will
also improve their disposable income. Additionally, the increase in the number of
working women in the baby boomer generation may lead to a greater number of
prosperous couples as they benefit from separately accumulated superannuation.31

Baby boomers have also had access to more advanced health care techniques
compared to earlier generations. As a result, they may be healthier and able to
undertake more travel, travel for longer periods and later in their life.32

Throughout their entire lives, baby boomers have undertaken more travel than
previous generations. This trend is likely to continue as they age and become grey
tourists.33

The differences between baby boomer seniors and previous seniors will create
challenges and opportunities for businesses and investors who supply goods and
services to this market. Baby boomers are likely to demand higher levels of
service, be interested in a greater range of tourism experiences and have greater
concern for the environment.34

2.2.4    Why do seniors travel?

Seniors travel for a range of reasons including rest and relaxation, nostalgia, social
interaction, learning, escape, adventure, maintaining health and well-being, and

29
     Golik, p 62.

30
     Prideaux, Wei, & Ruys, p 211.

31
     Golik, pp 65-66.

32
     Golik, p 65.

33
     Golik, p 66.

34
     Prideaux, Wei & Ruys, p 211.

The Value of Grey Tourism: Maximising the Benefits for Queensland                      Page 9

gaining status from others as well as mental or physical stimulation.35 It may also
replace the social contact and mental stimulation individuals previously received at
work. 36

Research indicates that younger seniors travel for pleasure while older seniors
travel to visit family and friends. However, there is a strong overlap between these
areas with many seniors combining both elements on one trip.37

3    BENEFITS OF GREY TOURISM

Travel by seniors benefits both the tourist and Queensland. Targeted promotion to
this niche market will increase the benefits for both groups.

3.1 WHAT ARE THE BENEFITS FOR GREY TOURISTS?

Governments are increasingly integrating leisure activities into aged care in the
belief there are health and psychological benefits for older people.38 Participation in
leisure activities increases life satisfaction and is essential for the well-being of
retirees.39

Research conducted with seniors in Western Australia concluded that grey tourists
who planned trips felt a sense of accomplishment. Those who dealt with
uncertainty while holidaying experienced a sense of achievement after the
completion of the trip.40 Travelling also provided some seniors with their desired
lifestyle.

Other benefits include happy memories and the opportunity to socialise. Grey
tourists increase their desirable memories after interacting with friendly and caring

35
     L Huang & T Hsien-Tang, ‘The study of senior traveller behaviour in Taiwan’, Tourism
     Management, Vol 24, 2003, p 562.

36
     Golik, pp 68-70.

37
     Golik, p 64.

38
     Ruys & Wei, p 408.

39
     V Yanne-McEwen, ‘Golden times for golden agers: Selling holidays as lifestyle for the over
     50s’, Journal of Communication, 50(3), 2000, p 83.

40
     F Lobo & J Carlsen, ‘Tourism operators’, The Age Friendly Guidelines Project, The Western
     Australian Department for Community Development, Seniors Interests, Perth, 2002, pp 69-70.

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staff and taking part in unique experiences. The opportunity to socialise increases
satisfaction with the trip.41

3.2 WHAT ARE THE BENEFITS FOR QUEENSLAND?

Encouraging grey tourists to travel in Queensland will benefit the state’s economy.
Seniors take longer trips than their younger counterparts, desire to travel in off-
peak periods and take trips to regional and rural areas.

3.2.1     Holiday length

Seniors who have no work or family commitments are able to enjoy longer
holidays.42 Travellers under 60 years spent an average of 4.1 nights in Queensland,
while the average length of holiday for those over the age of 60 years was 7.4
nights.43

The longer stay of grey tourists provides an opportunity for providers of tourism
goods and services in Queensland, particularly those associated with the
accommodation industry. Even when travelling to visit family and friends, grey
tourists prefer to stay in commercial accommodation.44

3.2.2     Holidaying in off-peak periods

The same reasons that enable grey tourists to travel for longer periods enable them
to holiday in off-peak periods. Without dependents or work commitments, most
seniors are able, and in some cases prefer, to travel in off-peak periods.45 Research
indicates that Australian seniors prefer to travel in the cooler months and outside
school holiday periods.46 Seniors may prefer to holiday in off-peak periods as they

41
     Lobo & Carlsen, p 71.

42
     Golik, p 64.

43
     Bureau of Tourism Research in Tourism Queensland, Grey Tourism (Seniors), p 4.

44
     Environmentrics in Ruys & Wei, p 419.

45
     Callan & Bowman, p 98.

46
     Prideaux, Wei & Ruys p 217.

The Value of Grey Tourism: Maximising the Benefits for Queensland                     Page 11

save money through off-peak discounts, avoid crowds, can holiday at a more
leisurely pace and can be more selective about climate.47

For many organisations, tourism is a seasonal business. By targeting products at
grey tourists, particularly during off-peak periods, organisations may be able to
reduce the highs and lows in their trading and create a more stable income.48

3.2.3 Travel to regional areas

Tourism does not occur equally throughout the state. Three regions within
Queensland, the Gold Coast, Tropical North Queensland and the Sunshine Coast,
rely on tourism far more than the remaining regions within the state.49 While the
most popular destinations for grey tourists are the Gold Coast and Brisbane, the
increasing size of the grey tourism market may create opportunities for businesses
in regional areas.

The Outback and Darling Downs regions are responsible for only 2.6% and 3.5%
of the goods and services produced by Queensland for tourism.50 However, seniors
are the largest proportion of all domestic travellers to the Outback (23%) and the
Darling Downs (21%) regions.51 Therefore, these regions are heavily reliant on
grey tourism.

4    BARRIERS TO GREY TOURISM

Several problems may discourage seniors from travelling. Barriers can result from
personal circumstances, tourism organisations and government.52

47
     Golik, p 64.

48
     Golik, p 64.

49
     Office of Economic and Statistical Research, The Contribution of International and Domestic
     Visitor Expenditure to the Queensland Regional Economies: 1998-99, p 11.

50
     Office of Economic and Statistical Research, The Contribution of International and Domestic
     Visitor Expenditure to the Queensland Regional Economies: 1998-99, p 13.

51
     Bureau of Tourism Research in Tourism Queensland. Grey Tourism (Seniors), p 1.

52
     Huang & Hsien-Tang, p 563.

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4.1 WHAT PERSONAL BARRIERS ARE THERE?

There are many personal circumstances that affect the ability of seniors to travel.
These include finances, health, age, time constraints, family responsibilities and
lack of a travelling companion.53

4.1.1     Finances

A senior’s level of income has a strong impact on whether they will travel and how
much they will spend on their trip.54 However, older Australians have higher levels
of discretionary income than the average Australian.55 This may result from having
fewer financial commitments such as mortgages. Nearly 80% of seniors own their
own home.56 Compared with mature singles, mature couples have higher levels of
disposable income.

Grey tourists are prepared to spend larger amounts of their discretionary income on
holidays than other groups.57 Younger people choose to spend this money
accumulating consumer goods.

Outside economic events may affect the ability of seniors to travel. Some seniors
may retire or reduce their working hours earlier than expected because of
redundancies or other events.58 This may prevent or limit the type of trips some
seniors may take.

4.1.2     Health and age

An individual’s ability to spend time away from their familiar environment is an
important factor in making holiday related decisions.59 However, health and age

53
     Golik, pp 66-68; Huang & Hsien-Tang, p 563.

54
     A Fleischer & A Pizam, ‘Tourism constraints among Israeli seniors’, Annals of Tourism
     Research, 29(1), 2002, p 112.

55
     Ruys & Wei, p 412.

56
     Golik, p 61.

57
     Golik, p 62.

58
     Ruys & Wei, p 413.

59
     Fleischer & Pizam, p 112.

The Value of Grey Tourism: Maximising the Benefits for Queensland             Page 13

does not necessarily have to be a barrier to travelling. In some cases it may
encourage seniors to ‘do it while they can’.

As individuals age, health concerns are likely to increase.60 Tourism organisations
may be able to use health and age concerns to promote travel to this market
segment. Seniors believe travel maintains their health and well-being as well as
their mental abilities.61

Older seniors are more concerned about health than younger seniors. Limiting
activities for health reasons may not occur until an individual is 80 years or older.62
This allows 20 years of active travel by seniors.

Over 25% of seniors will be affected by a moderate or severe disability while over
20% will experience a mild disability. Approximately 50% of seniors will remain
unaffected by a disability.63 Disabilities do not preclude travel but may require
more careful selection of tourism related goods and services to ensure they are
suitable. For instance, seniors with mobility limitations in the United Kingdom
actively seek hotels with ramps and lifts.64

4.1.3 Time constraints and family responsibilities

Time factors may limit a senior’s ability to travel. For instance they may still work,
either in a full-time or part-time capacity, have other commitments or not want to
have their normal routine interrupted.65

Other changes in society such as increasing numbers of single parent and dual
income families create pressure on grandparents. In these and other situations,
seniors may provide informal childcare. The shift away from the
institutionalisation of individuals with impairment may also require seniors to
provide care to other family members such as spouses, siblings and parents.66

60
     Fleischer & Pizam, p 112.

61
     Golik, p 67.

62
     Pedersen in Ruys & Wei, p 413.

63
     Golik, p 68.

64
     Callan & Bowman, p 109.

65
     Fleischer & Pizam, p 112.

66
     Golik, p 67.

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Tourism organisations that recognise some seniors still require a rest from their
busy lives and daily routine may be able to provide tailored tourism services for
individuals in this group.67

4.1.4     Lack of travelling companion

The lack of a companion may limit the enjoyment some seniors feel while
travelling.68 However, others believe travelling will provide an opportunity for
companionship.69 Some single seniors will deliberately look for opportunities to
travel as part of an organised tour. Others are prepared to travel alone.70

The needs of single travellers are not always meet by tourism organisations in a
sensitive manner. For instance, many accommodation suppliers charge a single
room supplement.71 Research undertaken in the United Kingdom indicated that
seniors were unhappy with this charge.72

4.2 WHAT TOURISM ORGANISATION BARRIERS ARE THERE?

Some tourism organisations have barriers that limit the ability of grey tourists to
use their goods or services. These include cost considerations and a lack of
information.73

Many tourism service providers recognise that seniors are seeking a product that is
value for money and offer discounted services to this group.74 Offering discounts
attracts business, builds good will and creates a welcoming environment.75

67
     Golik, p 67.

68
     Fleischer & Pizam, p 112.

69
     Ruys & Wei, p 414.

70
     Ruys & Wei, p 414.

71
     Ruys & Wei, p 414.

72
     Callan & Bowman, p 109.

73
     Huang & Hsien-Tang, p 563.

74
     Ruys, & Wei, p 413.

75
     Golik, p 72.

The Value of Grey Tourism: Maximising the Benefits for Queensland              Page 15

Grey tourists spend more time planning their travel than other age groups and
frequently use word-of-mouth information to make decisions.76 Organisations
should provide seniors with as much information as possible to allow them to plan
their trip. Seniors particularly value personal communication with representatives
of organisations.77 Research in the United Kingdom identified the need for more
mature-specific information in advertising and promotion campaigns.78

Seniors in Western Australia identified the need for organisations to be clean, and
provide healthy meals and friendly staff. Grey tourists regard these as increasing
the safety aspects and enjoyment of the holiday.79

4.3 WHAT GOVERNMENT BARRIERS ARE THERE?

Governments can play a role in reducing travel barriers for grey tourists. The
benefits of this are twofold; they are promoting a healthy activity for their own
seniors and stimulating the local economy. Governments should provide a safe
environment for and ensure the security of grey tourists.80

Research in Western Australia identified the importance of governments providing
suitable facilities for senior travellers with impairment. This included improving
access to public buildings and placing hand rails in toilets.81

Seniors also seek information regarding health facilities available at their holiday
destination. Governments providing this information will make grey tourists more
comfortable about travelling away from their local health services.82

Grey tourists perceive Australia as a secure destination for travel.83 This is likely to
encourage domestic tourists to travel locally as well as encouraging seniors from
overseas to travel to Australia.

76
     Golik, p 64; p 111.

77
     Golik, p 110.

78
     Callan & Bowman p 110.

79
     Lobo & Carlsen, p 67.

80
     Huang & Hsien-Tang, p 563.

81
     Lobo & Carlsen, p 67.

82
     Golik, p 67.

83
     Tourism Queensland, Grey Tourism (Seniors), p 5.

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4.3.1     What do governments do to encourage grey tourism?

Governments encourage grey tourism by introducing policies, providing travel
concessions and writing travel guides aimed at senior tourists.84 The Queensland
Government has used all three strategies.

One policy that encourages maximising the benefits of the seniors market is the
Queensland Government’s Growing Tourism Strategy. This strategy was launched
in May 2001. The progress report and future directions document highlights the
grey tourism market as a key opportunity for both domestic and international
tourism in Queensland.85

All states in Australia and the Northern Territory introduced the Seniors Card
Tourism Scheme in 1999.86 This card provides seniors with access to a range of
concessions. The Seniors Card is a non-means tested discount card.87 The aim of
this scheme is to increase seniors’ participation in domestic travel.88 Research
indicates that 80% of Australian seniors have this card and want to use it while on
holiday.89

The state and territory governments also initiated Get up and Go, a travel guide
targeted at seniors. All Seniors Cards schemes assist Get up and Go. Newsagents
sell the publication for $4.95 and it is also available by mail order.90 This was the
first travel guide aimed at Australian seniors.91

84
     Ruys & Wei, p 419.

85
     Department of Tourism, Racing and Fair Trading, Growing Tourism in the Smart State:
     Progress Report 2002-2003 and Future Directions 2003-2004, Department of Tourism, Racing
     and Fair Trading, Brisbane, 2003, p 16.

86
     Tourism Queensland, Grey Tourism (Seniors), p 5.

87
     Golik, p 72.

88
     Tourism Queensland, Grey Tourism (Seniors), p 5.

89
     Golik, p 72.

90
     Department of Communities, Get Up & Go Travel Guide, Department of Communities,
     Brisbane, 2004, www.families.qld.gov.au, downloaded 11 March 2004.

91
     Ruys & Wei, p 419.

The Value of Grey Tourism: Maximising the Benefits for Queensland           Page 17

5    WHAT CAN ORGANISATIONS DO TO ATTRACT GREY
     TOURISTS?

Research has identified steps organisations can take to attract, and retain, grey
tourists. These include pricing goods and services correctly, and providing useful
facilities, information and positive experiences as well as recognising the different
market segments within grey tourism.

Seniors appreciate a product or service that is value for money. Low prices and
discounting is not enough for this market.92

Facilities should be clean, well-maintained and secure.93 It is important to provide
facilities designed with the mature traveller in mind such as ramps and handle
bars.94 Information regarding these facilities should be provided to seniors to
reassure them.95 Seniors seem to prefer written, governmental or personal
information sources rather than radio, internet, travel expos or frequent flyer
sources.96

Providing a positive experience to seniors will help organisations promote
themselves by word-of-mouth.97 Organisations can create this feeling by
emphasising service, staff attitude and behaviour.98

The research highlights that grey tourists are not a homogeneous group.
Organisations need to design products and services that attract the different sub-
markets within grey tourism.99

92
     Callan. & Bowman, p 110.

93
     Ruys & Wei, p 420.

94
     Callan & Bowman, p 110.

95
     Golik, p 81.

96
     Golik, p 109.

97
     Golik, p 111.

98
     Callan & Bowman, p 110.

99
     Callan & Bowman, p 110.

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6   CONCLUSION

A grey tourist is an individual 60 years or over travelling more than 40 kilometres
from their place of residence for less than 12 months. This market is in the process
of change and will increase significantly in the near future as baby boomers begin
to reach 60 years. Baby boomer grey tourists are likely to have a higher disposable
income than previous generations. This creates opportunities for organisations in
Queensland to provide goods and services to this group. Provided personal,
organisational and government barriers are overcome, grey tourism will provide
benefits for both grey travellers and Queensland.

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