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Trade

Jetts exports 24/7 fitness to UK, Europe

THE Australian pioneers of the round-the-clock gym with no lock-in contracts, Jetts is launching in the United Kingdom and has just opened its first company-owned club in the Netherlands.

Jetts has a further three clubs on track to open in the next six months, marking an export milestone for the group  just seven years after it launched its first club on the Gold Coast. 

Joining Jetts with more than 20 years experience in the industry, Kenny McAndrew has been appointed to head up operations in the UK and join the existing European Jetts team based in Holland.

Jetts’ commitment to evolving its model to suit local conditions was marked by Jetts executive director, Adrian McFedries, relocating to the Netherlands to start building a foundation for Europe.

“Members have embraced the Jetts brand with open arms and we are excited to be providing even more members the freedom to workout on their own terms,” Jetts CEO Martin Oliver said.

“Jetts has a proud history of being a game changer in the fitness industry with our no lock-in contract, 24/7 offer. Our complete focus is on creating the most customer-centric offer in the market, and we recognised Europe and the UK as a market where we can make waves.”

The expansion into Europe and Jetts launch in the UK is the result of two years of research and planning, with the decision to first move into the Netherlands based on a number of factors.

“Sixtreen percent of the population in the Netherlands are members of a commercial gym compared to 13 percent in Australia, so the pool of potential customers is quite large,” Mr Oliver said.

“The Dutch industry is still dominated by older underinvested chains with a traditional fitness model of big clubs, lock-in contracts and limited opening hours, so we see a strong need for a very customer-centric offer,” he said.

“Our work in New Zealand has taught us what it takes to be successful in a new country, so we’re applying a similar approach as we march into Europe. The product and value proposition has to be right, but the team on the ground is equally important.”

Both Mr Oliver and Mr McAndrew possess a strong understanding of the UK market, having worked together during Mr Oliver’s time as managing director of Cannons Health Clubs.

“We are fortunate to have a great leader in Kenny and a dedicated European and UK team who are passionate about the brand and what we stand for,” Mr Oliver said.

“Coupled with a depth of understanding of the product and the market from the Australian support team, this will be the key to our success internationally.”

Mr Oliver said Jetts’ success domestically was driven by the ongoing strong demand from customers for a gym that provides a high standard of customer service, and great value for money. Since opening their first club on the Gold Coast in 2007, the group has opened 250 clubs across Australia, New Zealand, the Netherlands and is now moving into the UK.

The group currently has more than 250,000 members.  Further international expansion is planned for the Australian-owned brand, with an entry into Asia in mid to late 2015.

“Europe, the UK and Asia provides Jetts with long term growth options but we will take a ‘one club, one country at a time’ approach to international expansion,” Mr Oliver said.

“We know our business model works but we have no ambition to be racing around the globe expanding for the sake of growth. When we look back in 20 years’ time, we want to see that we inspired people to live a better life through our brand, and international expansion plays a big part in seeing that vision come to reality.”

www.jetts.com.au

www.facebook.com/jettsfitness

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Aust. tourism ‘exports’ reach record $30 billion

  • Trade

AUSTRALIA’s tourism industries continue to grow, in spite of the restrictive Australian dollar, reaching $30 billion throughout last year with eight key markets recording record arrivals.

Trade and Investment Minister Andrew Robb this month welcomed the release of International Visitor Survey data showing tourism exports had climbed to more than $30 billion a year. 

Tourism Research Australia’s International Visitor Survey for the year ending June 2014 revealed record arrivals from eight of Australia’s key markets: New Zealand, USA, China, Singapore, Malaysia, Hong Kong, India and Germany.

Mr Robb said these figures come at a time when there is a reported $20 billion worth of prospective investment in new Australian tourism infrastructure at the high-quality end of the market.

“Tourism Australia has received record levels of funding, tourism is a national investment priority, the Passenger Movement Charge has been frozen and the Carbon Tax has been abolished,” Mr Robb said.

“Tourism is one of our great strengths and, under the Abbott Government, the industry is finally receiving the attention it deserves. We are pursuing an aggressive investment agenda to ensure we develop the infrastructure required to cater for the growing international demand,” Mr Robb said.

He said the Federal Government was also providing $43 million for a new Tourism Demand-Driver Infrastructure Programme; $10 million in new funding for the Australia-China Approved Destination Status (ADS) scheme; and $2 million to support the staging of Australia Week in China (AWIC) again in 2016.

Tourism Research Australia’s International Visitor Survey is available at www.tra.gov.au

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Milestones reached on Korea free trade

  • Trade

THE Australian Parliament is moving swiftly on implementing the Korea-Australia Free Trade Agreement (KAFTA), with the report from the Joint Standing Committee on Treaties (JSCOT) tabled last week.

Trade and Investment Minister, Andrew Robb, responded promptly to the recommendation to proceed with binding treaty action and the Federal Government introduced ‘implementing customs’ legislation into Parliament on September 4. 

“This brings the entry into force of KAFTA, and the many benefits it offers, one step closer,” Mr Robb said. “JSCOT’s review has clearly recognised the benefit of KAFTA to Australian business and to the Australian economy.”

South Korea is Australia’s third-largest export market and fourth-largest trading partner, with bilateral trade worth $32 billion in 2013.

“KAFTA is a world-class, comprehensive agreement that substantially liberalises our trade and supports investment with a major market,” Mr Robb said.

KAFTA will significantly boost Australia’s position in this major market where competitors like the United States, European Union and ASEAN countries are already benefitting from preferential access.

“Both governments are working towards entry into force before the end of 2014, so that businesses in both countries can enjoy the benefits as soon as possible,” Mr Robb said.

KAFTA is also being reviewed by the Senate Foreign Affairs, Defence and Trade References Committee, which is due to report within one month of the tabling of the JSCOT report.

More information:

Korea-Australia Free Trade Agreement (KAFTA)

South Korea

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Exports on the rise to main Asian trading partners

THE Australian Bureau of Statistics Trade in Goods and Services most recent data shows that Australian exports have increased 11 percent from last year with resources exports increasing 19 percent.

Australia experienced four consecutive months of surpluses including a $900 million surplus in March, before experiencing a trade deficit in April of just $122 million and a minor fall in exports of just 1.5 percent in April. This underpins Australia’s strong economic position according to Federal Trade Minister Andrew Robb. 

“Australia’s position has strengthened over a sustained period of months and minerals and ore exports in particular are continuing to experience significant growth,” Mr Robb said.

“Australia has also increased exports across ASEAN nations and North Asia and the conclusion of the Korean and Japanese Free Trade Agreements will provide even greater opportunities to facilitate trade relationships for Australian exporters.

“Australia’s exports to the United States experienced a modest year on year increase to reach $794 million in a sign of steady confidence from the United States – which remains Australia’s largest source of foreign direct investment and long-term trading partner,” he said.

Other major export gains year on year included:

Exports to ASEAN nations were up 35.2 percent to $2.4 billion.

Exports to China increasing 25.4 percent to $9.1 billion.

Exports to Japan increased 8.3 percent to $3.9 billion.

Exports to Thailand increased 48.3 percent to $427 million.

Exports to Singapore increased 117.5 percent to $807 million.

Exports to Vietnam increased 95.4 percent to $299 million.

Services exports increased 10 percent to approach the $5 billion mark.

Metals exports increased 7.7 percent to $1 billion while machinery exports rose by 10 per cent to $782 million.

Imports rose 6.6 percent to $28.6 billion driven by a rise in imports of consumption goods, intermediate goods and services.

Exports to Europe and India have experienced a decrease.

www.dfat.gov.au

www.trademinister.gov.au

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Noodle Box finds flavour in Saudi Arabia

MELBOURNE-headquartered fast food franchise Noodle Box has opened its first restaurant in the Middle East, beginning its expansion from Riyadh, Saudi Arabia.

The Riyadh site is the first of four Noodle Boxes to open in the region this year, as part of a wider five-year, 65 restaurant deal struck with master franchisee Himmah Foods. 

Well-established Himmah Foods, a subsidiary of Al Himmah Group, is set to bring the Noodle Box brand to the Middle East in a major way.

“Himmah Foods is constantly searching for premium concepts with an added value that can cater to the growing and young population of the region and their changing lifestyles,” business leader Dr Abdulaziz Albabtain said.

“Noodle Box is a proven concept, which has emerged in Australia. We both have a shared vision towards the region and are working closely together to enhance the Asian food  segment in the region,” he said.

Noodle Box CEO Ian Martin said big things were on the horizon for the brand and franchises in the region.

Following the opening of its first restaurant in Riyadh, in June, a further three were planned to open in the Kingdom of Saudi Arabia (KSA) within the course of 2014.

A roll-out plan will follow this over the next three years that will see the brand open 65 restaurants across Gulf Cooperation Council (GCC) regions.

“Noodle Box is delighted to have partnered with Al Himmah Group to open the first of many Noodle Box restaurants in the region,” Mr Martin said.

“We believe Noodle Box’s authentic, Asian street food, cooked in an open wok kitchen and served in a relaxed restaurant environment will be a hit with the guests.”

www.noodlebox.com.au

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Australia’s exports to China exceeded $100 billion in 2013

NEW trade and services data showing Australia’s goods and services exports to China exceeded $100 billion in 2013 highlights the Australian Government’s urgency in pursuing a Free Trade Agreement with the world’s second biggest economy.

China is now clearly Australia’s major trading partner, with two-way trade in goods and services with China surpassing $150 billion in 2013. 

The data released by the Australian Bureau of Statistics (ABS), combined with earlier ABS merchandise trade data, showed these  two significant milestones with China were achieved in 2013 – and more good news was that Japan was Australia’s second largest export market, purchasing $50 billion in good and services.

Australia’s exports to China were valued more precisely at $102 billion in 2013, according to the ABS, an increase of $22 billion (28 percent) on 2012.  China accounted for almost a third of Australia’s total goods and services exports.

Japan was our second largest export market followed by Republic of Korea ($21 billion), the United States ($16 billion) and India ($11 billion).

According to Trade Minister Andrew Robb, the Abbott Government’s successful conclusion of new bilateral trade agreements with both Korea and Japan and commitment to also quickly finalise an FTA with China, can help drive these trade and investment relationships to a new level.

Mr Robb said Australia’s two-way trade in goods and services with China was valued at $151 billion – up $25 billion or 20 percent on last year.  China accounted for almost one quarter of Australia’s total trade.

China was also Australia’s largest import source in 2013 with $49 billion (up 6 percent on last year), accounting for 15 percent of total imports. 

Australia’s next largest import markets were the US ($39 billion), Japan ($21 billion), Singapore ($18 billion), and Thailand ($14 billion).

The ABS services trade release shows the US was Australia’s largest two-way services trading partner ($18 billion) in 2013, followed by the UK ($10 billion) and China ($9 billion).

China was Australia’s major services export market for services with $7 billion in 2013, up nine percent and mainly driven by travel services. Education-related travel services were $4 billion and recreational travel services were $2 billion in 2013.

The US was Australia’s major import source for services with $12 billion in 2013, up 14 percent.

Mr Robb said Australia has an enviable reputation across a wide array of services and opening up new opportunities for our services exporters in major emerging markets in the Asia Pacific is a particular focus of this government.

www.dfat.gov.au/trade

 

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Korea-Australia FTA promises $650m a year

AUSTRALIA's new free trade agreement with South Korea is likely to add about $650 million a year to the national economy once it comes into full force.

That is the estimate of independent modelling commissioned by the Federal Government, which also shows the Korea-Australia Free Trade Agreement will create at least 15,000 jobs between 2015 and 2030.

In 2015 the modelling shows job gains of 1750, with average gains of 1000 in each and every year out to 2030. The government's modelling also shows the KAFTA will add $650 million dollars to the Australian economy annually.

Agricultural exports to South Korea are expected to be 73 percent higher after 15 years of trading, as a result of the FTA, and overall exports to South Korea will be 25 percent higher.

Trade and Investment Minister Andrew Robb and his South Korean counterpart, the Minister for Trade, Industry and Energy Yoon Sang-jick, formally signed the Korea-Australia Free Trade Agreement (KAFTA) in Seoul in early April.

This comes on the back of the successful conclusion of negotiations for an Economic Partnership Agreement with Japan, Australia's  second biggest trading partner.

"The government's swift conclusion of these historic agreements sends a strong signal that Australia is indeed open for business," Mr Robb said.

"With one in five Australian jobs linked to trade, these agreements are good for the economy, good for growth and good for job creation," Mr Robb said.

"Building stronger trading relationships in Asia is critical to Australia's economic future.  Signing KAFTA today takes us closer to realising our goal of finalising FTAs with our major North Asian partners – China, Japan and South Korea – which together account for 37 per cent of Australia's overall trade and two-thirds of our total goods exports," Mr Robb said.

South Korea is Australia's fourth-largest trading partner, with bilateral trade worth $32 billion in 2012.

KAFTA will significantly boost Australia's position in this major market where competitors like the United States, European Union and ASEAN countries are already benefitting from preferential access.

When KAFTA starts, 84 percent of Australia's exports, by value, to South Korea will enter duty free, rising to 99.8 percent on full implementation of the agreement. There will also be significant new market openings in services and investment.

Mr Robb said he expected KAFTA to be in force by the end of this year.

The full text of the Korea-Australia FTA can be accessed on the Department of Foreign Affairs and Trade website: www.dfat.gov.au/fta/kafta/

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