DAVID SHELDON Chair Australian Regional Tourism Network (ARTN inc 2001)

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1 Collaboration between the Local Government s & the Australian Regional Tourism Network (ARTN) Local Government Spend on Tourism DAVID SHELDON Chair Australian Regional Tourism Network (ARTN inc 2001)

2 The Australian Regional Tourism Network (ARTN) Advocates and Provides a National Voice; Local Governments Regional Tourism Organisations Local Tourism Associations Visitor Centres Operators

3 Other Partners and MOU s Austrade Tourism Australia State Tourism Organisations Industry Sector associations Australian Local Government Association (ALGA) MoU s with National Farmers Federation, Tourism and Transport Forum and Caravan Industry Association of Australia

4 Tourism Vital to Australia s Economic Growth The Federal Government and Deloitte report recognised, Tourism as one of five Economic drivers as we head toward Gas, Agri-business, International Education, Wealth Management and Tourism Tourism overlaps -International Education and Agri business. A triple line economic benefit.

5 The Journey Started At the 2013 Australian Regional Tourism Network Convention in Margaret River. ARTN raised the importance of Local Government and their financial contribution to the tourism industry.

6 Background In 2014 ARTN was asked to present at a Tourism Minister s Meeting (TMM) in Melbourne. While other industry associations were chasing funding for marketing an increase on the current spend. ARTN presented on the importance of Local Government and the Industry at the Coalface. ARTN was the only Association that recognized the importance of Local Government. Local Governments are involved in delivering on the supply and demand side

7 Local Governments Are A Major Player Regional Australia is 45% of the Tourism Industry Nearly 50 cents in every dollar spent in regional Australia stays in region. Over 280,000 SME s rely on Local Government Services. The Visitor Economy is worth $120b pa and growing.. You, I and the Industry directly employ over 580,000 and indirectly close on a million.

8 Local Governments Research was required. Do you know ALGA does not have a policy on Tourism..just like many local governments. ARTN approached ALGA and through this work presented at the ALGA Congress in Canberra on; The Integration of Destination Management Plans into Local Government Strategic Plans ALGA acknowledged things needed to change BUT Where was the evidenced based research?

9 The Guide to Best Practise Destination Management Regional Tourism Organisations jumped at the chance to develop the DMP to access state funding principally for marketing.. leaving Local Governments out in the cold.local Government is where the Destination Management Plan should sit. Slowly we are witnessing the shift. I ask where were local governments when the Tourism 2020 strategy was rolled out? Local Governments should have been sitting at the table.

10 So What Do Local Governments Spend On Tourism?

11 Research Project So since 2013, ARTN have been seeking to clarify local Government s spend on the tourism industry. NO National Research existed A benchmark of data was required This new research we believe will change the National Landscape and bring local governments to the table for the development of the Industry as we look towards Local Government are the largest investor in destinations.

12 How Were We Going To Collect The Evidence Based Research? Over 561 LGA s across our nation? Ensuring every LGA was contacted and offered the opportunity to contribute. ALGA and Austrade had to be a key partners. State based Local Gov t associations. TRA and Austrade didn t have the research. The selection of an out of the square consultants that had no conflict of interest.

13 This research was specifically designed to: The Research Guidelines Evaluate local government s understanding of their role in Tourism by - Assessing attitudes towards future investment in Tourism - Understanding whether Tourism is an integral part of Council s strategic planning. Measure the level of local government spending on operating visitor information centres, events, festivals and promotion, marketing and development of Tourism. Measure the level of direct employment by local government in Tourism, including Tourism and Destination marketing employees and visitor information centre staff The key to providing valid and reliable estimates of the contribution of Local government to Tourism is defining what is included or excluded from the measure. For instance investment in tourism products and community infrastructure including parks, gardens, museums, galleries, Tourist parks and airports enhances the amenity of areas for both visitors and local residents. The project team determined that Council spending on community infrastructure to be outside the scope of this study

14 Survey Response The level of response achieved - exceeded expectations The Australian Local Government Association database identified that 561 Council areas existed across all States and the Northern Territory. The Australian Capital Territory was excluded from the sample frame as the responsibilities usually handled by local government are administered by the territory government and were consequently out of the survey s scope. Each Council was sent an invitation to participate in the survey. Overall, 256 Councils or a significant 46% had responded to the survey. The distribution of response is shown in the adjoining table. The survey achieved a diverse coverage across all States and within metropolitan, regional and remote areas of Australia. In addition to ensure the survey would deliver robust and accurate estimates key regional Tourism and Capital City local government areas were identified and captured in the survey s response. * Note: A KPI was every Council was contacted and offered the opportunity to contribute.

15 Survey Response NSW VIC QLD WA SA TAS NT AUST Responses Actual Number* Response rate 46% 56% 49% 37% 51% 45% 28% 46% *Based on information provided by ALGA

16 Tourism Spending By Local Government Tourism Spending stands at $373M In 2015/16 local Government in Australia contributed $373M to the operation of visitor information centres, events and festivals and the promotion, marketing and development of Tourism. $5M Both New South Wales ($109M) and Queensland ($98M) contributed significantly to the national wide spending. $58M $29M $98M On a per capita basis, Northern Territory and Western Australia Councils spent the highest per resident at $22. $63M $109M Spending Per Resident $11M NT WA QLD TAS SA NSW VIC $10 $14 $17 $20 $20 $22 $22

17 Tourism Spending By Location Of Council Two thirds of Local Government spending on Tourism was undertaken by Councils located in regional and remote areas Councils located in regional Australia indicated that in 2015/16 they spent $220M on operation of visitor information centres, events and festivals and the promotion, marketing and development of Tourism, with $30M being spent by Councils located in Remote areas. In NSW 55% ($60M) of Tourism spending was undertaken by Councils located outside the Sydney metropolitan area, while 60% of spending in the State of Victoria was from Councils located in the regions. The proportion of regional spending was much higher in the smaller states/territories. NSW VIC QLD WA SA TAS NT Non-Metro $Million 49 Metro Remote $30M Regional $220M Metro $123M

18 Type Of Tourism Spending 35 cents of every dollar spent went to operating visitor information centres Local Government in Australia spent an estimated $130M on operating visitor information centres in 2015/16. A further $102M was spent on destination marketing which includes marketing and promotion staff and marketing materials such as maps, brochures, websites, advertising, social media, and signage. In 2015/16 $89M was spent on local events and festivals. Visitor Information Centres $130M Destination Marketing 35% 27% $102M Events and Festivals Planning, Research & Product Development Other 24% 7% 7% $27M $25M $89M

19 Summary of Key Results In 2015/16 Local Government in Australia spent an estimated $373M on the operation of visitor information centres, events, festivals, promotion, marketing and development of Tourism. Two thirds ($220M) of Local Government spending on Tourism was undertaken by Councils located in regional and remote areas. 35 cents of every dollar spent went on operating visitor information centres. Eight in 10 Councils directly employ staff that have a Tourism role. This equated to estimated total of 1,672 full-time equivalents. Employment costs for individuals employed by Councils in Tourism roles was estimated at $179M in 2015/16. This equated to 48% of Local Government spending on the operation of visitor information centres, promotion, marketing and development of Tourism. Nine in ten Councils agreed that Tourism offers future economic development opportunities for their local area.

20 Local Governments At The Coalface Now we have collected the evidenced based data. What are the next steps? ALGA to develop to an overarching tourism strategy ARTN and Local Governments to reinforce the message for a whole of government platform to work with Industry in the development of Tourism 2030 Regional dispersal. Enabling Infrastructure. Skill and training..employment. Connectivity both hardwired and satellite (NBN). Strategically aligned DMP s. Well thought out planning strengthens our regions Social License.

21 Towards 2030 The journey continues with the 2017 ARTN Convention in Canberra October - Tourism 2030 And what better location than Canberra to tackle your local MP on what they are doing for tourism as its going to be one of the Super Sector industries driving the Australian economy Together we can make a difference so keep in the loop by becoming a member of ARTN and sign up to our communications at Remember this a two way street!

22 Tourism 2030 Needs Enabling Infrastructure

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