BUILDING BETTER BUSINESS Tourism
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- Jayson Spencer
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1 BUILDING BETTER BUSINESS Tourism SCOTT COGAR Chair
2 About Tourism GERALDTON: initial funding from City of Greater Geraldton industry-lead group to focus on growing the Tourism Economy of Geraldton and our region group made up of senior Tourism stakeholders including Tourism operators and government
3 Early members (established May 2017)
4 Why TOURISM is good for our local community TOURISTS people travelling or visiting a place for pleasure TOURISM commercial organization and operation of holidays with travel or visits to places of interest TOURISM ECONOMY production and consumption of goods and services and flow of money in a place
5 1 POPULAR ATTRACTIONS rare and/or popular Places & Experiences for Tourists Growing a successful TOURISM ECONOMY 2 SATISFIED TOURISTS majority of all Visitors needs & values are fulfilled 4 key requirements to being sustainable 3 Well Balanced REGULATION pragmatic laws, regulations & policies for Places & Visitors 4 VIABLE TOURISM ENTERPRISES most businesses achieving quadruple bottom line outcomes
6 Estimate of current economic performance Visitor economy of $148m per annum TOURISM ECONOMY of the MidWest (local region) Source: 2016/17 ABS Data Tourism Satellite Accounts Progress MidWest Tourism Cluster Report May 2017 Supports 1,545+ jobs 6.1% of local employment 62% from accommodation & food 19% from retail with abundant spare capacity to grow
7 Commercial accommodation establishments 9 Hotels (Trip Advisor) ACCOMMODATION City of Greater Geraldton Source: September Bed & Breakfast Venues (Trip Advisor) 16 Specialty Lodgings (Trip Advisor) 2 Holiday Parks (Booking.com) 107 Homes/Apartments (Airbnb) * Large ratio of unregulated room supply
8 Year Occupancy RevPAR Room Revenue HOTEL PERFORMANCE in City of Greater Geraldton (Commercial Accommodation) Source: Australian Bureau of Statistics FY11 to FY16 (Annual Survey) Broadwater Hospitality Group FY17 to FY18 (Estimate Only) FY % $ $17,867,243 FY % $ $24,475,617 FY % $ $19,771,764 FY % $ $14,950,071 FY % $ $14,536,794 FY % $ $16,087,097 FY % $ $16,075,843 FY % $ $16,105,062 Adjusting (peak) RevPAR in FY12 by 3% annually, in real terms RevPAR for FY18 possibly declined by 47% compared to FY12. The ABS data shows that regional areas of Western Australia which were previous beneficiaries from the significant boom in the resources and construction sectors have suffered some of the largest Occupancy declines across WA over recent years.
9 Annual Hotel Occupancy from FY02 to FY16 (15 Years) HOTEL OCCUPANCY in City of Greater Geraldton (Commercial Accommodation) Source: Australian Bureau of Statistics
10 Tourism GERALDTON Strategic need for Growth
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12 6 key strategies for GROWING THE BUSINESS OF TOURISM Create ONE SHOE EACH partnerships Sometimes follow, but OFTEN LEAD Base investment on PROBABILITY, not chance Leverage the most unique PULL FACTORS Empty the CAPITAL WASTE BIN Treat great opportunities like CHRISTMAS
13 KALBARRI (North) Hub & Spoke TOURISM MODEL HOUTMAN ABROLHOS ISLANDS (West) CITY OF GREATER GERALDTON (Hub) GEOTRAILS (East) Day trips from Geraldton PORT DENISON (South)
14 Butler s Destination Lifecycle Model DESTINATION LIFECYCLE City of Greater Geraldton Source: Butler (1980) Area Lifecycle Model
15 DESTINATION DEVELOPMENT the art and science of success Source: Imagination + Ideas Pty Ltd Paul Ma and Scott Cogar global significance PLACE people land attractions culture environment core fundamentals ACES access capacity economics seasonality pull factors E 3 experience entertain educate physical assets MAP monuments artefacts places destination development LAST locations amenities scale themes
16 Transforming our TOURISM ECONOMY (Multiplier Effect)
17 facilitate COMMUNITY PARTICIPATION Transforming our TOURISM ECONOMY to $200m by 2020/21 build DESTINATION CAPABILITY $200m Annually by 2020/21 enhance VISITOR EXPERIENCES Targeting 10% Annualised Growth build COLLABORATIO N & PARTNERSHIPS
18 Building collaboration and ONE SHOE EACH PARTNERSHIPS to create a sustainable industry Places Tourists Organisation (Enterprise & Regulation)
19 T incredible culture & history of this region O world class natural attractions & places BUILDING BETTER TOURISM DESTINATION PULL FACTORS (some examples only) U R I S M unique built attractions & monuments calendar of major festivals, sports & events largest city North of Perth with potential to grow as key strategic regional hub 1 of only 5 places on the planet home to both marine and terrestrial hotspots Latitude 28 South is same as Gold Coast, but with one of highest number of sunny days in Australia
20 Leverage our most unique DESTINATION PULL FACTORS to grow our Tourism Economy Abrolhos Islands Pink Lake Cruise Ships
21 Leverage our most unique DESTINATION PULL FACTORS to grow our Tourism Economy 1 Abrolhos Islands is a game changer, adding $10m annually & 50+ FTE jobs 2 Pink Lake is a huge drawcard for Chinese Tourists, our biggest inbound market 3 Cruise Ships contributed $7m and 23 FTE jobs in 2015/16 and should grow
22 Houtman Abrolhos Islands Huge Tourism Opportunity unrealised for 25+ years Day trip from Geraldton
23 World class opportunity GOING TO WASTE Economic modelling for Tourism for Houtman Abrolhos Islands suggested: Economic Return on Investment (EROI) of $10m within 5 years; and EROI of around 200% after 10 years. Over the first decade, resultant growth in Tourism was projected to: increase business revenues by over $70 million increase economic benefit by over $100 million increase direct local employment by 50+ jobs This would represent a 6%+ expansion of our current Tourism Economy.
24 TG recommends staged development of Tourism. 1 Create National Park and other defined zones: Tourism Zones Fishing and Aqua-Culture Zones Mixed Use Zones 2 Spend initial $10m on safety & essential amenities. HOUTMAN ABROLHOS ISLANDS offshore Geraldton, WA 3 Suspend new permits for operators, moorings, etc. 4 Use Case Study to develop best practice regulation. 5 Implement User Pays system to offset costs. 6 Support low impact Tourism operations in first stage. 8 KEY RECOMMENDATIONS TO DEVELOP WORLD CLASS TOURISM Source: Tourism GERALDTON 7 Utilise some existing public facilities for Tourism now. 8 Establish online induction & registration for Tourism. prioritise wireless communication, jetties, airstrip, shade, boardwalks, ground transport, potable water, toilets, signs, energy, sewage & waste management (Stage 1). Focus on areas of high use and high sensitivity first.
25 T around 2 million Visitors annually O around $7m in fees paid by Visitors annually Relevant Case Study for ABROLHOS ISLANDS TOURISM GREAT BARRIER REEF MARINE PARK (Queensland) Source: Great Barrier Reef Marine Park Authority U R I S M supports around 54,000 FTE Jobs 80% of Tourism occurs in only 7% of Marine Park commercial use mostly Tourism and Fishing Tourism is large direct contributor to recovering the cost of managing the GBRMP Visitor experiences include cruise ships, day trips by sea and air, live-aboard vessels, snorkelling, diving, semi-submersible tours, kayak tours, etc.
26 Houtman Abrolhos Islands World Class Island & Marine Experiences
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31 T established May 2017 O new Destination Development/Marketing Plan BUILDING BETTER TOURISM Tourism GERALDTON year one (examples only) U R hospitality training & staff development activities directly lobbying government for Tourism I first ever Tourism Investment Summit (May 18) S first ever Qantas Boeing 737 charter (May 18) M working with ACC & Tourism WA for ATE19
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33 Sunday 27 May 2018 historic first ever QANTAS BOEING 737 CHARTER TO GERALDTON Qantas Gate 15 Terminal 4 Perth Flight over the spectacular Houtman Abrolhos Islands Qantas Flight QF 1360 Captain Gary McKenzie
34 QANTAS BOEING 737 INAUGURAL CHARTER FLIGHT
35 CLOSING THOUGHT DISCOVERY is seeing what everybody has seen and thinking what nobody has thought Quote by Albert Szent-Gyorgy, circa ways to accelerate the journey of DISCOVERY lead, follow, or get out of the way
36 SUSTAINABLE TOURISM needs effective collaboration People Land Attractions Culture Environment Seasonality
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