Travel company AOT Group to run Territory Discoveries

Published on : Thursday, November 21, 2013

NT GovetnIn a coup for the tourism industry, the Northern Territory Government has announced that leading travel company, AOT Group, will take over the licence to operate Territory Discoveries, a government business division of Tourism NT.

 

Northern Territory Minister for Tourism Matt Conlan said the move would prevent the business from closing down.

 

“This is the best possible outcome for tourism suppliers and staff and will save Territory Discoveries,” Mr Conlan said.

 

“AOT is the largest wholesale distributor of Australia and New Zealand travel products and services in the world. This means it will be able to generate additional sales of Territory tourism product and reduce the overheads that Territory Discoveries presently incurs.

 

“In good news, the Territory Discoveries brand will be maintained by AOT along with a call centre in Alice Springs, securing the jobs of at least six employees who work there.

 

“Importantly, the licence agreement includes conditions around maintaining support for small to medium tourism business in the Territory – and in fact AOT’s track record in Queensland and New South Wales shows that sales actually increased for these small operators due to the company’s wide distribution networks.

 

“Performance measures have also been built into the agreement with AOT to ensure it meets this Government’s objectives of growing tourism in the Territory.

 

“Additional sales will benefit contracted Territory tourism sellers and help achieve the Country Liberals vision of a $2.2 billion visitor economy by 2020.”

 

Territory Discoveries was responsible for $11.6 million in gross sales of tourism product in 2012-13. It was established in 1998 and is the last government-owned tourism wholesale business in Australia.

 

Transitioning will begin next month (December), with the new arrangement to commence fully on 1 February 2014.

 

AOT will have the option to take full ownership of the operation on expiry of the agreement after three years. It purchased similar businesses from the Queensland and New South Wales governments after operating them under licence.

 

Source: Northern Territory Government

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