PORT STEPHENS TOURISM PLAN 2010

Transcription

1 PORT STEPHENS TOURISM PLAN 2010 Diagnostic Report PROGRESSING TOURISM IN PORT STEPHENS PREPARED BY JENNY RAND & ASSOCIATES / DAIN SIMPSON ASSOCIATES FUNDED BY INDUSTRY & INVESTMENT NSW, PORT STEPHENS COUNCIL, PORT STEPHENS TOURISM LIMITED C O U N C I L

2 TABLE OF CONTENTS 1. INTRODUCTION Background Study Tasks Structure of the Tourism Plan Use of This Plan Abbreviations used in this Plan PORT STEPHENS Overview Tourism Industry ACCESS Access Road Access Air Services Airport Transfers Rail & Coach Access Local Ground Transport Cycle ways Boat Access Directions Forward VISITATION Visitation to the North Coast and Hunter Regions Visitation to LGA s within the North Coast and Hunter Regions Market Outlook & Forecasts Port Stephens Visitor Profile Comparison of Visitor Profiles North Coast & Hunter Markets Attracted to Port Stephens Directions Forward ATTRACTION & ACTIVITY BASE Regional Attractions An Overview Attraction & Activity Base of Port Stephens Issues Opportunities to Expand the Product and Attraction Base ACCOMMODATION BASE Accommodation Base Possible Additions and Changes to Supply Performance Issues with the Accommodation Sector Sustainable Environmental Practices Accommodation Opportunities CONFERENCES & MEETINGS Venues Support Infrastructure Competitive Environment The Market Outlook and Opportunities for Port Stephens

3 8. EVENTS Events in Port Stephens The Event Framework Issues Directions Forward VISITOR FACILITIES & INFRASTRUCTURE Signage Public Toilets Parks, Gardens, Reserves, Playgrounds & Picnic Facilities Walking Trails & Cycle Ways Marine Infrastructure Dining and Shopping INFORMATION Overview Information Services & Infrastructure in Port Stephens Issues Raised by the Tourism Sector Impact of Technology Changes in Information Delivery Directions Forward LOCALITIES, TOWNS & VILLAGES The Potential Nelson Bay Shoal Bay Fingal Bay Anna Bay One Mile Bob's Farm Tilligerry Peninsula Karuah Raymond Terrace Rural West Seaham Hinton STRUCTURE & MANAGEMENT OF TOURISM Overview Key Players Other Players Membership of the RTO Issues Observations MANAGEMENT STRUCTURES OVERVIEW Management Structures Case Study Examples Funding Observations MARKETING PORT STEPHENS Overview Source Markets Annual Marketing Plan Activities & Funding Issues Directions Forward

4 15. MOVING FORWARD Current Position Key Activities Medium to Long Term Objective Division of Responsibilities Changes Required Product & Destination Development Market Development

5 1. INTRODUCTION 1.1 Background Tourism is a significant industry for Port Stephens, with the LGA attracting in the order of 617,000 domestic and 27,000 international overnight visitors per year as well as 612,000 domestic day trippers. These visitors spend an estimated $377.3 million per annum within the area with 1,574 people directly employed in the tourism sector. (Tourism Research Australia, Port Stephens Shire Tourism Profile 2007). Tourism in Port Stephens is considered to be a mature industry, with established markets, a strong accommodation and attraction base and well developed support infrastructure and services. The Lower Hunter Regional Plan has identified the Nelson Bay area as a Tourism Development node for the Hunter Region. Likewise the Port Stephens Economic Development Strategy identifies tourism as a significant economic activity for the LGA and a potential growth sector. The Economic Development Strategy recommends that a long term strategic approach to tourism development is adopted. Port Stephens Council has been an active player in the tourism industry for more than 30 years, as an owner and manager of tourism assets, service provider, marketer and coordinator. Council owns and operates the Nelson Bay Visitor Information Centre and employs professional tourism staff to coordinate the development, marketing and promotion of the tourism industry. Since 1997, Council has had in place a joint venture agreement with Port Stephens Tourism Limited (PSTL) to market and promote Port Stephens regionally, nationally and internationally. PSTL is the peak body for tourism within the LGA. PSTL is a membership base organisation with over 200 members drawn from the accommodation, attraction, tour, retail, entertainment and business sectors. The joint venture agreement has been in place for 12 years, and has been very successful in establishing Port Stephens as a destination in its own right. Over the past 12 years there have been substantial structural changes in both the tourism industry and the marketplace. Divisions have emerged within the local tourism industry, with these heightened by the contraction of the industry as a direct result of the global financial crisis. Both Council and PSTL recognise that it is time to reassess the status of the industry and set the directions and framework for moving forward. Funds have been provided by Port Stephens Council, PSTL and the Department of Industry and Investment to undertake a detailed assessment of the tourism industry within Port Stephens and formulate a strategic plan to take the industry forward. Jenny Rand & Associates in conjunction with Dain Simpson Associates have been commissioned to prepare the Tourism Plan. 1.2 Study Tasks Key tasks undertaken in the preparation of the Tourism Strategy included: Visits to Port Stephens LGA and surrounding areas to assess the tourism product and infrastructure (accommodation, attractions, activities, experiences, signage, information services) available and how the individual localities and products within the LGA present. Market assessment identifying and building a profile of the visitors who are coming to the area demographic characteristics, trip characteristics, needs and expectations. Discussions and workshops with a range of organisations and individuals including: 4

6 - Port Stephens Councillors and Council officers. - Port Stephens Tourism Limited - Industry groups and associations - Community groups and associations - Local tourism and business operators attractions, accommodation, retail businesses. - Licensed Clubs - Worimi Land Council - Newcastle Airport - Government Departments Tourism New South Wales, Department of Industry and Investment, Department of Environment, Climate Change and Water (National Parks), Marine Parks Authority and the Department of Lands. - Forum of Regional Tourism Organisations (FORTO), Hunter and Mid North Coast RTOs 1.3 Structure of the Tourism Plan The Port Stephens Tourism Plan is presented in two volumes, a Diagnostic Report and an Action Plan. The Diagnostic Report (this document) explores the current status of tourism in the LGA in relation to: The product base of the area accommodation, attractions, events etc. The services and infrastructure available to support tourism. The markets attracted to the area. The presentation of localities, towns and villages. The issues facing the tourism industry. The development and marketing opportunities available. Management, marketing and promotion of tourism within the LGA. The Action Plan provides the strategies and actions needed to facilitate the development and marketing of tourism. 1.4 Use of This Plan The Port Stephens Tourism Plan contains relatively detailed information on the issues facing the LGA and the product and market development opportunities available. It is suggested that the Plan be used as follows: As input into determining Government and Council directions and planning policies. The Action Plan becomes the working document for Port Stephens Council and Port Stephens Tourism Limited. Resource material sections of the Diagnostic Report and the Action Plan be 'cut and pasted' to form: Briefing material for individual projects / project teams Input into grant applications and funding submissions Submissions to Government, Local Members of Parliament and other organisations when seeking assistance to implement the projects identified in the Plan. 5

7 1.5 Abbreviations used in this Plan ABS CCIA DECCW DII FIT FORTO MPA PSC PSTL RTA RTO STDW TNSW TXA OBX VFR Australian Bureau of Statistics Caravan and Camping Industry Association Department of Environment, Climate Change and Water (National Parks) NSW Department of Industry and Investment Free Independent Traveller Forum of Regional Tourism Organisations Marine Parks Authority Port Stephens Council Port Stephens Tourism Limited Roads and Traffic Authority Regional Tourism Organisation State Tourism Data Warehouse (TNSW Data Base) Tourism New South Wales Tourism Exchange Australia Open Booking Exchange Visiting Friends and Relatives 6

8 2. PORT STEPHENS 2.1 Overview Location & Description Port Stephens LGA is located approximately 200 kilometres north of Sydney. Geographically it lies within the Hunter Valley and marks the beginning of the NSW North Coast. The LGA covers an area of approximately 850 square kilometres. The LGA is bounded by the Hunter River to the south, the Karuah River and Port Stephens to the north and the Paterson River to the west. The Port Stephens water body lies wholly within the LGA. Port Stephens shares boundaries with Newcastle City to the south, Maitland City to the west, Dungog and Gloucester Shires to the north west and Great Lakes Shire to the north. Port Stephens can be divided into five broad areas: Tomaree Peninsula forms the southern headland and part of the southern foreshore of Port Stephens. Within the peninsula there are three settlements: Salamander Bay Soldiers Point, Corlette Nelson Bay Shoal Bay Fingal Bay and Anna Bay One Mile Beach Boat Harbour, with these areas separated by tracts of wetlands, bushland and forests, much of which is incorporated in National Parks and Conservation Areas. The Tomaree Peninsula is the main tourist destination in the LGA with tourism focussed on Nelson Bay. Tilligerry Peninsula located to the west of the Tomaree Peninsula. Most of the central and southern parts of the Peninsula are incorporated in the Tilligerry State Conservation Area. Settlement is concentrated along the northern shores of the Peninsula, at Lemon Tree Passage, Tanilba Bay and Mallabula. Lemon Tree Passage is the main destination for visitors. Rural East The central area of the LGA, extending from the northern foreshore of the Hunter River through to Medowie. Newcastle Airport and the RAAF base are located at Williamtown at the southern end of the LGA, with Williamtown and Tomago developing as a significant employment zone within the Lower Hunter Region. Medowie to the north is primarily a rural residential area. There is a small cluster of commercial tourist attractions at Salt Ash, at the gateway to both the Tomaree and Tilligerry Peninsulas. This area borders the Stockton sand dunes with Lavis Lane being an important access point for recreational vehicles. Central Corridor focused on the Pacific Highway. Raymond Terrace Heatherbrae forms the southern gateway to the LGA, with Karuah, located at the mouth of the Karuah River, being the northern gateway. Raymond Terrace is a historic river town, established at the confluence of the Hunter and William Rivers. Today it is the administrative and commercial centre of Port Stephens and is designated at a future regional centre within the Lower Hunter. Rural West incorporates the rich farming land to the west of Raymond Terrace and the Williams River, with grazing being the main activity. Seaham on the Williams River and Hinton on the Paterson River are the larger of the two villages in this area. Population Port Stephens has a population of approximately 65,000. Population is concentrated on the Tomaree Peninsula and in the Raymond Terrace area. 37.0% of the LGA's population (22,389 people at the 2006 Census) resides on the Tomaree Peninsula, with 20.6% residing in the Corlette Nelson Bay Shoal Bay Fingal Bay area. 8.9% of the LGA's population live in the Soldiers Point Salamander Bay area, with 7.5% in the Anna Bay One Mile Beach Boat Harbour area. The Raymond Terrace area has a population of around 7

9 13,400 (22.2% of the LGA population). 19.8% of the population resides in the rural eastern area, mostly in the Medowie area (13.9%) with small settlements in the south at Fullerton Cove and Fern Bay. 7.7% of the population resides in the rural west, with 1.4% in the Karuah area. Port Stephens is a growth area, with the population forecast to increase to 117,746 by Growth will be concentrated in Raymond Terrace (31,150 people), and on the Tomaree Peninsula (40,328 people). (Lower Hunter Regional Strategy). Land Use & Economic Base Port Stephens is primarily a rural area, with more than 95% of the LGA being farming land, National Park, State Conservation Area and State Forest. Port Stephens has a diverse economic base with the main industries being tourism, defence government, manufacturing and agriculture. Fishing and oyster cultivation are also significant activities. The largest single employers are the RAAF Base and the Tomago Aluminium Smelter. The Williamtown Aerospace Centre, being developed around the RAAF Base and Newcastle Airport, will become a key economic driver for the Hunter Region. Other significant industrial business parks are located at Tomago and Heatherbrae, and at Taylors Beach on the Tomago Peninsula. Raymond Terrace is the administrative and commercial centre of the LGA, with a concentration of government and commercial service providers. Raymond Terrace is a sub regional retail centre, with the centre set to grow into a regional centre. The other major shopping precinct is at Salamander Bay on the Tomaree Peninsula, with a modern shopping mall anchored by a discount department store and major supermarket. Nelson Bay is a district centre, with a concentration of service providers, small retail outlets and cafes and restaurants. 2.2 Tourism Industry Background The tourism industry in Port Stephens dates back to the early 1900's with the development of small fishing settlements on the Tomaree Peninsula. The 'occupation' of the area by the Americans during World War 11 put the region on the 'map' with the area becoming popular in the post war period. Holiday cottages were established, and the area was popular with campers. Improvements to the Pacific Highway in the 1970s' resulted in the area 'booming' with the development of caravan parks, motels and holiday apartments, concentrated along the waterfront areas of Nelson Bay and Shoal Bay. The area also became popular with retirees, attracted primarily by the scenic beauty of the area, relaxed lifestyle and the fishing. Tourism activity in the area increased significantly in the 1980's with the opening of a number of resorts Peppers Anchorage, Horizons Golf Resort, Roche Racquet Resort and the Marina Resort, and the marinas at Nelson Bay and Corlette (Anchorage). The last 15 years has seen substantial growth in holiday and serviced apartments, the opening of the Shoal Bay Resort, the emergence of B&Bs and the development of a strong land and marine based tour and cruise industry. The Tomaree National Park was declared in 1984 and substantially expanded in The Port Stephens Great Lakes Marine Park was gazetted in 2005 and is the largest marine park in NSW. The Worimi Conservation Lands, which incorporates Stockton Bight and sand dunes, is the most recent addition to the Parks system. Port Stephens Council has always played an active role in the tourism industry. Since 1965 Council has supported the tourism industry financially, initially through the TOPS association and more recently through PSTL. In 1997 tourism was restructured, with TOPs being replaced by Port Stephens Tourism Limited (PSTL) as the peak body for the Port Stephens tourism sector. Council and PSTL entered into a 8

10 joint venture to market and promote Port Stephens. This marketing alliance has been very effective in establishing Port Stephens as tourist destination in its own right. The Tourism Sector Today Tourism is one of the main industries in Port Stephens LGA and the main economic activity on the Tomaree Peninsula. The area attracts in the order of 617,000 domestic and 27,000 international overnight visitors and 612,000 domestic day trippers per year. These visitors spend an estimated $377.3 million per annum within Port Stephens with 1,574 people directly employed in the tourism sector. (Tourism Australia Port Stephens Tourism Profile 2007). The commercial tourism product and infrastructure in the LGA includes: Extensive range of visitor accommodation: 37 resorts, hotels, motels, apartment hotels and serviced apartment, providing in the order of 1,600 1,800 rooms and apartments. 17 caravan with 1,560 tourist sites and 430 cabins. Possibly holiday rental properties and holiday homes and apartments. Back packer, farmstay and B&B properties. Established marine tourism sector including dolphin and whale watching cruises, charter boats, game and sports fishing charters, boat and equipment hire. A strong adventure and activity based sector including 4WD, para sailing, jet boat, jet skis, camel safaris, horse riding, sea kayaking, surfing and diving operators. Tourist and heritage attractions. Main Attractions The main attractions of Port Stephens LGA are the Port itself and the spectacular bay and coastal scenery the Blue Water Paradise the white sandy beaches and the aqua blue, crystal clear waters. The area is known for: Pristine, uncrowded beaches The Stockton sand dunes Dolphins and koalas Sports and game fishing Both the Tomaree Headland and Stockton sand dunes are iconic features. The area is also building its profile as a destination for whale watching. Challenges facing the Tourism Sector Although well established, the industry faces a number of challenges. These include: A changing market Significant structural changes are occurring in the domestic market place. These changes are the result of a combination of factors including the increasing sophistication and global orientation of the consumer, changing work and leisure practices, changing ethnicity particularly in the capital city markets, the impact of discount airfares, rising fuel prices and more recently, the global economic downturn. In Port Stephens the impact of structural changes is evident in the changes that are occurring in the traditional family holiday market. Strong contraction of the international market in response to the global financial crisis. At present, the international market is highly volatile, with a marked decrease in long haul travel world wide. Tourism Australia and Tourism New South Wales are working through strategies to address this 9

11 situation and to re build the international sector in the medium to longer term. Port Stephens will need to take these strategies into consideration in building its international markets. Seasonality, with strong summer school holiday peaks and low off season visitation in the coastal locations. Development of events and off season packaging are being used to build visitation during the shoulder and off peak seasons and have had some impact on occupancy rates. There are opportunities to further build visitation by niche marketing to the smaller special interest and activity based markets, with the activity rather than the location being the key driver. New technologies are significantly changing how consumers receive information, plan and purchase travel. Mobile digital applications are increasing and within 5 years most travellers are likely to have access to the internet while travelling. These changes need to be factored into how Port Stephens delivers its visitor information services in the future. Aging infrastructure particularly in the accommodation sector, with some of the product becoming less competitive and no longer meeting visitor needs and expectations. The area's ability to attract high yield markets is constrained by limited product at the 'top end' of the market and limited infrastructure to accommodate the business event market (conferences, meetings etc). Coupled with this is the lack of destination management. The emphasis for the last years has been on the marketing and promotion of Port Stephens, with limited time and resources allocated to ensure that the product, infrastructure and services needed to support the industry are in place. Growth pressures the need to release land for residential and industrial development to meet the forecast growth in demand for housing, land and employment in the Lower Hunter Region. This has implications for use of areas (eg capacity of beaches and parks, car parking etc), environmental impacts and impacts on the visual amenity of the area. The environment and the visual amenity of the area underpin the tourism sector with the need to protect these assets being essential to the long term sustainability of the tourism industry. Marked differences in the tourism industry across the LGA, with individual localities having different markets as well as differences in the scale of operations and level of professionalism. The Tomaree and Tilligerry peninsulas are established destination areas, which primarily attract holiday and leisure visitors. In contrast, the Raymond Terrace area is oriented primarily to highway traffic but also services business travellers and sports event related travellers. The dynamics of tourism in the small towns and villages, such as Karuah and Seaham are different again. Each area needs a different approach, which is difficult to accommodate with the current structure and available resources. The role of key stakeholders in particular the 'blurred' lines between Port Stephens Tourism and Council in relation to the operation of the Visitor Information Centre, provision of information and visitor services and the marketing and promotion of the LGA. The industry is becoming increasingly disenchanted with both parties, with some of the current practices also impacting negatively on destination development and management and service delivery. Opposition from some segments of the community to tourism and/or development. Emerging Opportunities Balancing these challenges are a number of emerging opportunities, including: Expansion of Newcastle airport opening up the opportunity for growth in interstate and potentially, international markets (both group and FIT) as well as the business events and sporting markets. Industrial and business park development in the southern areas of Port Stephens (Williamtown, Tomago, Heatherbrae etc) and in adjoining areas (eg Kooragang Island, the Hunter River industrial 10

12 estates, and the Thornton area), with a resultant increase in business and work related travel and the potential to grow the Business Events sector. Increased residential development, both within Port Stephens LGA and in surrounding areas, particularly in the Lower Hunter and Central Coast. This should translate into increased demand for the recreational, tourism and lifestyle products available in Port Stephens LGA. Specific developments, such as large mobile home parks in the Fullerton area, will stimulate the VFR market. Focus by Newcastle City on building the business events, entertainment and sporting markets, with the accommodation properties in the Raymond Terrace area already benefiting from growth in these markets. There is opportunity to work with Newcastle as part of a marketing alliance to build visitation to Port Stephens. Growth in non traditional markets including grandparent travel, touring caravans and campervan markets (both domestic and international) and activity and special interest based markets (eg surfing tours, 4WD clubs, water sports etc). The potential of the internet and other digital applications for cost effective delivery of information, marketing and promotion, and reservations and sales. These issues and opportunities are addressed in the following sections of this report. 11

13 3. ACCESS 3.1 Access Being located on the Pacific Highway just north of the junction of the F3 Freeway and New England Highway, Port Stephens is within easy driving distance of Sydney and readily accessible from the Hunter Valley. Raymond Terrace is located approximately 200 kilometres north of Sydney and 25 kilometres north west of Newcastle, with the main tourist destination, Nelson Bay being approximately 250 kilometres north of Sydney and 40 kilometres north east of Newcastle. Daily coach services operate between Sydney and Nelson Bay, with the long haul interstate coaches prepared to drop off and pick up passengers at Heatherbrae. Port Stephens can be accessed by rail to Newcastle, with coach services to Nelson Bay, Raymond Terrace and Lemon Tree Passage. Port Stephens, through Newcastle Airport, is accessible by direct air services from Sydney, Canberra, Melbourne, Brisbane and the Gold Coast. Port Stephens can also be accessed by boat, with the Port popular with the recreational cruising market. Around 5.34 million people reside within a 2.5 to 3 hour drive of Nelson Bay. In addition, Newcastle Airport provides access to an interstate market of around 6.45 million people. Port Stephens is also easily accessed from Central NSW (Dubbo area) and the southern and south eastern parts of the New England North West Region Table 3.1 Population readily accessible to Port Stephens Region Population Lower Hunter # 442,000 Upper Hunter 55,000 Central Coast 300,000 Great Lakes 33,000 Taree 45,200 Sydney 4,500,000 Total 2.5 hours drive 5,342,200 Dubbo 40,300 Mudgee 8,200 Gunnedah Quirindi Narrabri 34,000 Tamworth 57,000 Armidale Uralla Walcha 25,200 Melbourne Brisbane Gold Coast Canberra 3,700,000 1,920, , ,000 Total Interstate 6,455,000 Source: ABS 2006 Census # Excludes Port Stephens 3.2 Road Access Port Stephens is located on the Pacific Highway. The Pacific Highway (F3 Motorway) is a National Highway (NH 1), that links Sydney via the North Coast of NSW to Brisbane. According to the RTA, the Highway carries in the order of 40,000 45,000 vehicles per day in the vicinity of Hexham Bridge. Heatherbrae is a very popular transit stop for Highway travellers, particularly for south bound travellers. The New England Highway intersects with the F3 Motorway at Beresfield approximately 12 kilometres south west of Raymond Terrace. The New England Highway is also a major interstate route, linking Sydney and Brisbane via the Hunter Valley and the New England Region. The New England Highway provides Port 12

14 Stephens with access to the Gunnedah, Narrabri and Tamworth areas. Residents of these areas have traditionally holidayed in the Port Macquarie area, however Port Stephens is marginally closer to Gunnedah and Narrabri, with the drive being far easier and safer than the Oxley Highway from Tamworth to Port Macquarie. Port Stephens also has the advantage of being close to Newcastle and within a few hours of Sydney, offering a coastal holiday with the opportunity for city experiences. The growth of coal mining and gas exploration in the Gunnedah Basin is resulting in an influx of miners and mine related workers, some of whom have come from the southern NSW and Queensland coal fields. There is potential to target these workers, positioning Port Stephens as a weekend short breaks destination. The Hunter is well connected to Central NSW, via the Golden Highway, with residents of Central NSW being an established market for the coastal destinations of the Lower Hunter and Central Coast. Dubbo is an easy 4.5 hours drive from Port Stephens. Dubbo has a population of around 40,000 and is the main regional centre for around 120,000 people (Dubbo City Council estimate of the retail catchment population). To the north, Port Stephens is the start of Thunderbolts Way. Thunderbolts Way connects the Pacific Highway at Twelve Mile (between Raymond Terrace and Karuah), through Gloucester, Walcha and Uralla to the Gwydir Highway at Inverell, with links north to southern Queensland. Thunderbolts Way is a designated State Touring Route (TR 2). While the route was designed primarily to draw north bound touring traffic off the Pacific Highway, it has become the 'short cut' between Sydney / Newcastle and Armidale. Armidale is less than 4 hours drive from Nelson Bay and is potentially a market for Port Stephens. Pacific Coast Touring Route The Pacific Coast Touring Route extends from Sydney to Far North Queensland. The route is being promoted by Tourism Australia to international visitors, with visitors encouraged to hire / buy vehicles (including campervans) and travel the route. Port Stephens is featured as one of the destinations along the route, with Port Stephens included in six of the nine suggested touring itineraries. This route encourages travellers to work their way north through the Central Coast, coastal areas of Lake Macquarie, to Newcastle and onto Port Stephens. There is no signage in either Newcastle nor along the Pacific Highway that would enable these travellers to find Port Stephens. This is discussed further in Section 9.1. Once international flights / access to international visitors are in place at Newcastle Airport, the Airport needs to be incorporated into the Pacific Coast Touring Route as an entry / exit node. Consideration should be given to providing for campervan / mobile home rentals at the Airport. Access to Raymond Terrace, Karuah & the Rural West Raymond Terrace is located just off the Pacific Highway, with access to the Highway on the northern and southern edges of town. Karuah, 30 kilometres north of Raymond Terrace, has also been by passed. Under the proposed Highway upgrade, both Raymond Terrace and Heatherbrae will ultimately be bypassed, with Port Stephens facing the challenge of how to draw travellers off the Highway. Raymond Terrace is located approximately 25 kilometres north west of Newcastle, with the town being very accessible to the Hunter River and Kooragang Island industrial areas and business parks, and to the large institutions and facilities (eg Newcastle University, Mater Hospital, Sandgate Cemetery) in the western suburbs of Newcastle City. Raymond Terrace also has good road links to Maitland (15 20 minutes drive) and to the industrial areas at Thornton and Beresfield (5 10 minutes drive) and will be within 15 minutes drive of the proposed Hunter Economic Zone. Raymond Terrace is a node for the network of local and regional roads that feed into the LGA from the west and north west. These roads link through to Maitland, Dungog and Gloucester LGAs, and to the Barrington Ranges (Barrington Tops). Hinton is located on the Osterley Road while Seaham is accessed from Seaham and Newline Roads, with links onto Clarence Town and Dungog to the north and on to Stroud and Gloucester to the north east. Most of the roads in the west of the Shire are narrow rural roads 13

15 that are scenically attractive and suitable for tourist drives. Access to the Coastal Destinations There are three access roads linking the coastal destinations to the Pacific Highway Tomago Road and Richardson Road for north bound traffic and Medowie Road for south bound traffic. Richardson Road attracts the most traffic, with the road being in better condition than the other two. Richardson Road is the RTA's preferred access route to the area. Tomago Road is narrow and in poor condition. All three roads link with Nelson Bay Road, which provides access to the Tomaree Peninsula. While a section of Nelson Bay Road has been upgraded to a dual carriageway divided road, most of the road is single lane in both directions, with limited opportunities to overtake. The speed limit varies between 80 and 100 kilometres. The road becomes congested at peak times. There are a number of areas along the road corridor (eg Salt Ash) that not particularly attractive and do not reflect or reinforce the quality of the coastal environment. Nelson Bay Road forms part of the link road between the coastal destinations and Newcastle, and further south to the suburbs on the eastern side of Lake Macquarie. The section of road between Newcastle Airport and the intersection with Industrial Drive at Mayfield North, is being upgraded to improve access from Newcastle to the Airport. This will strengthen the relationship (physical and perceived) between Newcastle and the Airport. The Tilligerry Peninsula is accessed via Lemon Tree Passage Road, off the Nelson Bay Road. This road is in reasonable condition and is an attractive drive. Lemon Tree Passage is located approximately 33 kilometres from Raymond Terrace and 42 kilometres from Nelson Bay. Approximate travelling distances and times to Nelson Bay from potential source markets are summarised in Table 3.2. Table 3.2 Accessibility to Source Markets Travelling to Nelson Bay Centre Distance (km) Travelling Time (hrs)* Day Trip & Short Breaks Sydney CBD Central Coast Lake Macquarie Newcastle Maitland Cessnock Singleton Muswellbrook Regional NSW within 4 5 hours drive Dubbo Mudgee Gunnedah Tamworth Armidale * Approximate distance and travelling time Local Road Network 250 km 150 km 85 km 60 km 70 km 90 km 115 km 160 km 420 km 350 km 350 km 320 km 340 km hours 1.5 hours 1 hour mins 50 mins 1 hour 1.1 hours hours 4.5 hours hours hours 3.5 hours 3.5 hours The local road network and parking areas in the Nelson Bay Shoal Bay area do not have the capacity to cater for the volume of traffic generated during peak periods and for the events held in Nelson Bay. Council is working to resolve these issues. 14

16 Directional Signage There are issues with signage to the coastal destinations from both the Pacific Highway and Newcastle, with these issues addressed in Section Air Services Newcastle Airport is located at Williamtown in Port Stephens LGA, adjacent to the RAAF base. The Airport is approximately 40km south west of Nelson Bay and 18km east of Raymond Terrace. The Airport is a joint venture between Port Stephens and Newcastle City. It is one of the busiest regional airports in Australia, with the airport currently serviced by 6 carriers: Jetstar Virgin Blue QantasLink Aeropelican Brindabella Airlines Norfolk Air There are 126 return flights per week into the airport (252 movements), with 55 return flights per week to Brisbane (Jetstar, Virgin and Qantaslink), 33 return flights to Sydney (Aeropelican), 21 to Melbourne (Jetstar and Virgin), 16 to Canberra (Brindabella) and one to Norfolk Island (Norfolk Air). In 2009 the Airport had a through put of approximately 1.2 million passengers, with the number of passengers having increased by 440% over the past four years. The number of incoming and outgoing passengers is approximately equal. The market is relatively evenly split between business, VFR and tourism / leisure travel. Most of the leisure travel coming into the Airport is for the Hunter with events (eg concerts, NSW Golf Open, Surfest) being a major driver. Conferences and meetings (Hunter focused) are a significant component of the business travel market. Newcastle Airport is undergoing a $17m upgrade, which includes extending the apron to take larger planes, doubling the size of the terminal with the terminal to have customs facilities, extending the car parking (900 additional spaces) and improving the road network. The upgrade is expected to be completed by mid The Airport will have a capacity of 4 million passengers per annum. Newcastle Airport is being positioned as a secondary airport for low cost domestic and international carriers. Newcastle Airport is seeking to establish links to Asia and is looking to establish a route to Kuala Lumpur to connect with Asia Air, to provide access to the Asian low cost carrier network, as well as connections to London. International flights to New Zealand, Fiji and Asia are planned to commence in The domestic network is also being expanded. In mid 2010, capacity is expected to increase on the existing Melbourne and Gold Coast routes, and on the Brisbane route in Flights to Perth, Adelaide, Hobart and Darwin are programmed to commence in 2010/11, with flight to Cairns, Mackay and the Sunshine Coast possibly commencing in 2011 (subject to a favourable feasibility assessment). By 2014 the Airport is forecasting that there could potentially be an extra 23 flights per week on the Melbourne, Brisbane and Gold Coast routes (296,608 additional passengers), plus 47 flights per week on the 7 new domestic routes (606,112 passengers) and 15 international flights per week to New Zealand (8 return flights per week), Fiji (3 / week), Bali (2 / week) and Kuala Lumpur (2 / week). These forecasts are dependent on a range of factors, including the airlines moving to the larger planes and obtaining approvals to operate. The GFC may have put the timing back. 15

17 Table 3.3 Forecast Flights and Passengers Newcastle Airport, 2014 Origin / Destination Return Flights / Week Estimated No Passengers (70% load capacity) Growth on existing routes: Melbourne Gold Coast Brisbane Total Potential new domestic growth Perth Adelaide Hobart Darwin Cairns Mackay Maroochydore Total Possible international flights Auckland Christchurch Nadi, Fiji Denpasar, Bali Kuala Lumpur, Malaysia Total ,856 90,272 64, , ,544 90,272 90,272 38,688 64,480 77,376 64, ,112 33,324 11,779 13,617 8,106 5,441 72,267 Total New Flights ,987 TOTAL PASSENGERS 2,124,987 Source: Newcastle Airport Implications for Port Stephens The main implications of the expansion of air services for Port Stephens are: Port Stephens and operators will need to align their marketing strategies, in both the National and International markets, to the market development being undertaken by the Airlines to build passengers on the new routes. There will be a need for increased public relations style marketing through the Airline magazines and loyalty programs as well as in the new markets. In addition to access to increased holiday travellers, national coverage will enable Port Stephens to target national conferences and meetings and national sporting carnivals (eg All Schools National events). If the costs of flying out of Newcastle (flights, parking, less traffic congestion etc) are lower than flying out of Sydney, there is likely to be an increase in the number of people from the northern suburbs of Sydney, the Central Coast and other areas who will chose to fly out Newcastle. The motels in Karuah and Raymond Terrace are already seeing an increase in people from Great Lakes, Taree and the Upper Hunter staying overnight in Port Stephens before flying out. This year a number of State school sporting teams also flew out of Newcastle rather than Sydney. This is a market opportunity for accommodation in Raymond Terrace and Karuah. As services increase there will be a need for the hotel that is proposed for the Airport Business Park. Once Newcastle Airport commences international operations, its main market is likely to be outbound travel from residents of the Hunter, Central Coast, the northern suburbs of Sydney and lower North Coast areas, with primary destinations being New Zealand, Fiji, and Bali. New Zealand has the potential to expand as an inbound market for Port Stephens. PSTL / Marketing Coordinator has already spent some years working this market. New opportunities could potentially be created if an 16

18 Asian low cost carrier, such as Air Asia, adopts Newcastle as an alternative to Sydney for bringing in Asian inbound travellers (eg Singapore, Malaysia, Vietnam). Newcastle Airport will become an increasingly important gateway into the LGA. As such, Port Stephens will need to ensure that information on the LGA is available at the Airport. Consideration should also be given to including funds for Airport advertising in the marketing and promotional budget. Most of the prime advertising spaces have already been leased by Hunter Tourism. Council will need to ensure that there is effective motivational and directional signage on the routes to and from the Airport. 3.4 Airport Transfers Newcastle Airport is approximately 40 kilometres from Nelson Bay (15 20 minute drive) and 18 kilometres from Raymond Terrace. There are 5 rental car companies based at the Airport, with a range of vehicles available for hire. Port Stephens Coaches operates regular services between Newcastle and the Tomaree Peninsula via the Airport. From Monday to Saturday, Hunter Valley Coaches provides a limited service between Lemon Tree Passage, Raymond Terrace and Newcastle via the Airport. There is a shuttle bus operator based in Port Stephens as well as shuttle bus services to the Central Coast, Newcastle, Upper Hunter and Forster Tuncurry. The Airport is currently reviewing the licensing arrangements for these operators. The Airport is serviced by Newcastle Taxis. Port Stephens destinations are designated 'out of area' and incur a return fee. This doubles the cost of an already expensive taxi fare. This issue needs to be addressed as part of the licensing review that is being undertaken. A number of Port Stephens accommodation properties provide courtesy bus services to and from the Airport. 3.5 Rail & Coach Access Port Stephens can be accessed by rail to Newcastle (or to Maitland), with Port Stephens Coaches providing regular connecting services to the Tomaree Peninsula. Hunter Valley Coaches provides a less frequent service to Lemon Tree Passage via Raymond Terrace, with this service operating six days per week. The long haul interstate coaches will set down and pick up at Heatherbrae, with services to Lemon Tree. Passage and the Tomaree Peninsula provided by Hunter Valley Coaches and Port Stephens Coaches, respectively. Port Stephens Coaches operates a daily coach service between Sydney and the Tomaree Peninsula, via Raymond Terrace. This service is used primarily by Port Stephens residents and VFR travellers, rather than tourists. It would be an ideal service for back packers, however most back packers are travelling on either rail passes and/or Oz Experience or Greyhound Passes and do not want to pay the extra fare. Both Oz Experience and Greyhound will set down and pick up at Heatherbrae (has to be pre booked). The Greyhound service also goes into Newcastle. Both back packer hostels in Port Stephens have courtesy buses and will pick up and drop off at Newcastle or Raymond Terrace, however prefer guests to use the Port Stephens Coach service if possible. 3.6 Local Ground Transport The dispersed nature of the LGA is a challenge. Although local bus services operate within and between centres, the service between the different localities is time consuming and not ideal for travellers. Having two different coach operators and limited services to the Tilligerry Peninsula is not conducive to travel by public transport between the Tomaree and Tilligerry Peninsulas. 17

19 Within the Tomaree Peninsula, a number of the larger accommodation properties and the licensed Clubs have courtesy coaches. Some of the accommodation properties will provide transfers to and from the Airport. A number of accommodation operators have bicycles available for guest use, with bicycle hire also available. 3.7 Cycle ways Cycle tourism is a strong growth market, particularly internationally. There are a number of international tour operators who special in cycle tours, including tours to Australia. There are also an increasing number of Europeans (mainly Germans) undertaking FIT cycling holidays in Australia. Long distance cycling routes are being identified in various parts of Australia. Port Stephens is relatively flat and would be ideal for cycling. A possible touring route would start at Newcastle Station, use the Ferry to cross to Stockton then head north to Nelson Bay, crossing by ferry to Tea Gardens then heading north to the Myall Lakes, Forster and onto Taree. While sections of the Nelson Bay Road are currently not suitable for cycling, this opportunity should be taken into consideration when the road is upgraded. Locally, cycling is popular with visitors, with many visitors, particularly families and those staying in caravan parks, bringing their bicycles with them. Bike hire is available at Shoal Bay. According to the VIC staff, visitors frequently ask about cycle ways, with visitors looking for a foreshore ride and off road / mountain bike trails. Port Stephens Shire has around 50km of cycle ways. Most of the cycle ways are however short and designed to link residential areas to town centres and schools. There is a shared pedestrian cycleway from Corlette to Nelson Bay and from Nelson Bay Marina to Fingal Head which these routes popular with visitors for recreational cycling. Part of the route between Shoal Bay and Fingal is on the road, which is not particularly desirable for families with younger children. Both backpacker hostels provide cycles for guest use. There is a partial cycle way along Gan Gan Road between Anna Bay and One Mile. The accommodation properties in the One Mile Beach Middle Rock area would like to see the cycleway extended to provide safe access to Anna Bay and Birubi Beach. They would also like to see a cycle way to Nelson Bay. There is a cycle way (11km) from Raymond Terrace to Medowie via Grahamstown Dam. This is a pleasant ride along the Dam foreshore. The cycleway is not however promoted and is rarely used by visitors. 3.8 Boat Access Boating and fishing are very popular activities on Port Stephens. A small survey undertaken by the Waterway Authority found that around 70% of boats on the waterway were trailer boats. Of the trailer boats, around 40% came from Port Stephens LGA, 20% from Newcastle, 23% from the Hunter and 17% from Sydney. During holiday periods there is a much higher proportion of out of area boats. Boat access infrastructure includes boat ramps, public wharves and jetties and marinas. There are 9 ramps on the Tomaree Peninsula, 3 of which are ocean ramps, with 6 bay ramps. Of these 6, the ramps at Little Beach and Soldiers Point are regional facilities, with Little Beach being the most used ramp in the LGA. There are 4 ramps on the Tilligerry Peninsula, of which the Lemon Tree Passage ramp is the most used. The other ramps are local ramps that can only be used at high tide. There is also a ramp at Karuah, with this ramp currently being upgraded. The Little Beach ramp becomes very congested on weekends and during school holidays. The ramp at Soldiers Point has recently been upgraded to take some of the pressure off Little Beach. Both Karuah and Lemon Tree Passage ramps are more accessible to the regional community than Little Beach. Once these facilities are upgraded, they should be promoted to the regional boating and fishing communities. Due to currents, Karuah has a reputation for being dangerous and for this reason is often avoided. The new ramp design addresses this issue and will provide a safe launching area. On completion of the ramp 18

20 consideration should be given to seeking coverage in the regional press to ensure that boat owners and fishermen are aware of the new facilities. Boating and fishing clubs in the Region should also be notified. There is a regional boat ramp at Kings Park in Raymond Terrace which is used for power boating and water skiing. There are a number of local boat ramps along the Williams River including two ramps at Seaham. There are 3 public wharves (Nelson Bay, Salamander Bay and Karuah) and 6 jetties on the southern shore of Port Stephens. A regular ferry service operates between Nelson Bay and Tea Gardens. On request, ferries will pick up groups from the Karuah Jetty. There are public wharves at Raymond Terrace and Hinton. Both wharves are located across the road from pubs (Junction Inn at Raymond Terrace and Victoria Hotel at Hinton). Provided that boats can tie up, there is the potential to promote both hotels as destinations for boats cruising on the Hunter and Williams Rivers. There is potential to develop a boat 'touring route' around Port Stephens (the waterway). The Anchorage Marina has moorings available for short term use for people wanting to dine in the nearby restaurant. Similar facilities for boats to tie up need to be provided at Lemon Tree Passage and Karuah. Lemon Tree Passage needs a jetty or floating pontoon to enable boats to call into the area and use the marina facilities, park and visit the shops. There are 4 marinas servicing the southern shore or the Bay, plus Cove Marine which provides a hardstand storage facility for up to 70 boats. Combined, the Port Stephens marinas provide around 350 berths of which around 75 80% are permanently leased, with the remainder available for transient use. The majority of the berths are leased by people who reside outside of the Port Stephens LGA. Port Stephens is popular with the recreational cruising market. 3.9 Directions Forward Opportunities To target the Central West, Gunnedah Basin, Tamworth and Armidale, capitalising on the road links between Port Stephens and these localities. To take advantage of the advertising and information distribution opportunities at the Airport. To increase penetration of the interstate markets, aligning Port Stephens' marketing focus to that of the Airlines. Once flights are established to most States, target National amateur and school sporting events and work with Newcastle Convention Bureau to target national association meetings, with the area positioned as a lower cost, attractive alternative to Sydney. Position Raymond Terrace and Karuah as accommodation options for out of area travellers who have early morning flights. Position Raymond Terrace as a cost effective venue for sporting teams to run training camps before flying out. Put in place market development strategies to capitalise on each of the international routes that are being opened up. Once international flights are established incorporate Newcastle Airport as a node on the Pacific Coast Touring Route. Explore the possibility of introducing a local back packer bus pass for travel to and from Newcastle and Raymond Terrace and within the local area. 19

21 Develop a boat touring route around Port Stephens. Work with adjoining LGAs to develop a long distance coastal cycle touring route. Position the boat ramps at Lemon Tree Passage and Karuah as regional facilities and promote these ramps to the regional boating and fishing markets, including the clubs. Promote the pubs as Raymond Terrace and Hinton to boat users on the Hunter River and as a day trip for to people with trailer boats who are staying in other areas of the LGA. Issues to be Addressed Nelson Bay Road need for ongoing improvements to the road and, where possible, initiatives to improve the presentation of properties / areas along the corridor and to establish a cycleway. To resolve traffic and parking issues in the Nelson Bay area. Pacific Highway by pass Council needs to be actively involved in the planning process to ensure that effective signage is put in place to encourage travellers to continue to break their journey in Heatherbrae / Raymond Terrace. As part of this, consideration should be given to acquiring strategic sites for future bill boards. Locality and directional signage from both the Pacific Highway corridor and Newcastle need to be improved (see Section 9.1). Cycle ways there is a need for an integrated cycleway network on the Tomaree Peninsula. To put in place the infrastructure and/or change regulations to enable boats to tie up at Lemon Tree Passage, Karuah and other locations around the Bay, to facilitate on water touring. Similar conditions are also needed at Raymond Terrace and Karuah. Some form of jetty or floating pontoon is needed at Lemon Tree Passage. 20

22 4. VISITATION This chapter explores visitation to Port Stephens and the surrounding region. 4.1 Visitation to the North Coast and Hunter Regions Port Stephens is part of the North Coast Tourism Region. Port Stephens also shares boundaries with the Hunter Tourism Region, with some of its visitor markets closely aligned to those of the Hunter. The North Coast Region incorporates 8 LGA's and extends from Port Stephens in the south to Coffs Harbour in the north. The main centres within the region are Taree, Port Macquarie and Coffs Harbour, with Coffs Harbour, Port Macquarie, Forster Tuncurry and the Tomaree Peninsula of Port Stephens being the main visitor destinations. The North Coast is primarily a coastal holiday destination. Travel within the Region is concentrated north south along the Pacific Highway. The Hunter Tourism Region incorporates 9 LGA's and extends from Newcastle and Lake Macquarie on the coast, to the Upper Hunter Shire in the west. It also includes Dungog and Gloucester Shires along the southern and eastern sides of the Barrington Ranges. Visitation in the Hunter is concentrated in the Lower Hunter sub region with the main destinations and attractions being Newcastle, Wine Country (focussed on the Pokolbin area) and Barrington Tops. Travel in the Hunter Region is concentrated north south along the Pacific Highway and east west along the New England Highway with both routes primarily being transit corridors. For the year ending June 2009, the North Coast Region attracted an estimated 3 million domestic and 159,000 international visitors who stayed one or more nights in the Region and 3.08 million day trippers. In the same period, the Hunter attracted million domestic overnight visitors, 110,200 overnight international visitors and 4.33 million day trippers. (TNSW Regional Profiles). Visitor and trip characteristics for both regions are summarised below. The summaries are based on the Regional Profiles for the Year Ending June 2009, published by Tourism New South Wales. These profiles combine data from the National and International Visitor Surveys conducted by Tourism Australia. Data is provided for the financial years through to References to 2009 in the following sections are for the YE June Domestic Overnight Visitors The number of domestic overnight visitors to the North Coast has remained relatively constant for the last 5 years ( ), fluctuating between 3 and 3.2 million visitors. The number of nights spent in the region has fluctuated between 11.6 and 12.8 million, with the average length of stay over the 5 years, ranging from 3.7 to 4 nights. The Hunter Region has averaged around 2 million domestic overnight visitors per year, with visitation increasing from 2005 to 2007 and then declining in 2008 with a further decline in The number of nights spent in the region has fluctuated between 5.748m in 2006 down to 4.989m in The average length of stay in the Hunter is significantly lower than the length of stay on the North Coast, ranging from 2.5 to 2.7 nights. Over the past 12 months, both Regions experienced a decline in the number of visits and visitor nights, with this attributable to the impacts of the global financial crisis. During the same period, the number of overnight trips taken domestically by Australians fell by 7.1%. 21

23 Table 4.1 Domestic Overnight Visitation to the North Coast and Hunter Regions North Coast Overnight Visits ('000) Nights Spent ('000) Av Stay (nights) Year Ending June ,200 12, ,100 11, ,200 12, ,200 12, ,000 11, % change Visits % change Nights Hunter Region Overnight Visits ('000) Nights Spent ('000) Av Stay (nights) 1,971 5, % 9.4% 2,097 5, % 10.3% 2,119 5, % 3.8% 2,071 5, % 7.1% 1,895 4, % change Visits 8.4% % change Nights 12.1% Source: Tourism NSW Regional Profiles Mid North Coast and Hunter Regions 1.0% 7.4% 2.3% 6.7% 8.5% 12.2% Source of Visitors In 2009 intrastate visitors accounted for 83.2% of visitors to the North Coast and 81.3% of nights spent in the Region. Sydney was the main source of visitors, accounting for 39% of visits and 43.1% of visitor nights. Sydney visitors stayed marginally longer in the region (3.9 nights) than visitors from other areas of NSW (3.7 nights). Over the past 5 years, the proportion of visitors from Sydney has been gradually trending upwards, while the proportion of visitors from regional NSW has declined marginally. In 2009, travellers from interstate accounted for 16.8% of visits and 18.6% of nights, with interstate visitors staying on average 4.3 nights. Queensland is the main source of interstate visitors accounting for 11.8% of visitors and 11.7% of visitor nights. The Hunter Region also draws primarily from Sydney (41.5% of visits) and regional NSW (43.4% of visitors). The proportion of visitors from Sydney has remained relatively constant over the past 5 yeas. Visitors from Sydney have the shortest length of say, averaging 2.2 nights in In 2009 interstate visitors accounted for 14.9% of visitors and 17.3% of nights, staying an average of 4.8 nights in the region. From 2005 to 2006 the number of interstate visitors to the Hunter Region increased by 45.8%, with a 62.5% increase in the number of Queensland visitors and a 37.8% increase in visitors from Victoria. There was also a corresponding increase in nights spent in the Region, with nights generated by Queenslanders increasing by 40.9% while nights from Victorians increased by 61.5%. Since 2006, the interstate market has fallen with a steady decline in both visits and nights spent in the Hunter. While there has been some growth in the Victorian market, the number of visitors from Queensland and the other States has fallen significantly. This is somewhat surprising given the growth in interstate flights into Newcastle Airport. Table 4.2 Origin of Visitors to the North Coast and Hunter Regions Source of Visitors North Coast Sydney Regional NSW Total Intrastate Year Ending June % 46.9% 84.2% 38.9% 45.5% 84.4% 39.5% 44.5% 83.9% 30.7% 45.5% 76.2% 39.0% 44.2% 83.3% Queensland Other Interstate Total Interstate 8.2% 7.6% 15.8% 9.9% 7.7% 17.6% 8.6% 7.5% 16.1% 8.8% 6.0% 14.8% 11.8% 5.0% 16.8% 22

24 Source of Visitors Hunter Region Sydney Regional NSW Total Intrastate Year Ending June % 43.5% 84.6% 39.6% 39.3% 78.9% 40.3% 42.2% 82.5% 41.6% 42.5% 84.1% 41.5% 43.6% 85.1% Queensland Victoria Other Interstate Total Interstate 7.2% 4.4% 3.8% 15.4% 11.0% 5.7% 4.4% 21.2% Source: Tourism NSW Regional Profiles Mid North Coast and Hunter Regions 6.8% 5.9% 4.7% 17.4% 8.1% 4.2% 3.5% 15.8% 7.1% 5.1% 2.7% 14.9% Purpose of Visit The North Coast is primarily a holiday destination, with holiday and leisure travellers accounting for 58.5% of visits and generating 67.8% of nights. In contrast, the majority of travellers to the Hunter are visiting friends and relatives (41.2% of visits and 30% of nights). Overnight visitors to the Hunter, particularly the holiday leisure and visiting friends and relatives (VFR) markets are a potential day trip markets for Port Stephens. Table 4.3 Purpose of Visit Purpose Holiday / Leisure VFR Business Other North Coast Hunter Visits Nights Av Stay Visits Nights Av Stay 58.5% 67.8% % 36.8% % 24.7% % 39.0% % 4.9% % 17.3% % 2.1% % 6.9% 3.9 Source: Tourism NSW Regional Profiles Mid North Coast and Hunter Regions In terms of numbers, the North Coast attracts 2.4 times more holiday / leisure travellers than the Hunter and around 10% more people visiting friends and relatives. The total number of nights spent generated by holiday and leisure travellers to the North Coast is 4.3 times more than holiday and leisure nights spent in the Hunter. Nights spent by VFR travellers on the North Coast is 1.5 times higher than the Hunter. The Hunter has a stronger business and conference market, attracting 15% more business travellers than the North Coast, with 34% more business generated nights. Over the past 5 years, the number of nights spent by VFR and business travellers to the North Coast has fallen by just over 20%, while the number of nights spent by holiday and leisure travellers has increased marginally (0.6%). In the Hunter, there has been strong growth in the business travel market (visits up 15.8%, nights up 24.7%) with a decline in the number of holiday / leisure travellers and the VFR market. Accommodation Used In 2009, staying with friends and relatives was the most popular form of accommodation used in both the North Coast and Hunter Regions, accounting for 34.7% and 41.9%, respectively of visitor nights. Staying in caravan parks was the next most popular type of accommodation on the North Coast (18.7% of nights) followed by rented holiday houses and apartments (16.7% of nights). In the Hunter 13% of nights were spent in hotels, motels and guesthouses of less than 4 star standard, with 8.6% of nights in 4 and 5 star hotels motels and guesthouses. Over the past 5 years there has been an 11.3% increase in the number of nights spent in caravan parks on the North Coast, while nights spent in rental accommodation has fallen by 10.8%. In the Hunter, there has been a 21.3% increase in nights spent in 4 5 star hotel, motel and guesthouse accommodation and a 34.1% 23

25 decline in nights spent in budget and mid range (<4 star) properties. This reflects the significant increase in 4 5 star properties in the Hunter Region (primarily in Newcastle and Cessnock) as well as a shift in the market towards higher quality accommodation. Transport Used Around 90% of visitors to the North Coast travel by private vehicle, with 5.1% travelling by air and 1.9% by rental car. In the Hunter 84.7% travel by car, 9% by plane and 3.5% by rail. Over the past 5 years there has been an increase in air travel, with the number of visitors travelling by air increasing by 66.4% in the Hunter and 44.9% for the North Coast. In the Hunter, the number of train travellers has declined from 5.7% to 3.5%. Activities Undertaken Dining out (undertaken by 54.5% of visitors) and going to the beach (47.1%) are the two most popular activities undertaken in the North Coast Region, followed by general sight seeing at around 30%. In the Hunter the most popular activities are dining out (48.9%), general sight seeing (around 20%) going to pubs, clubs and discos (around 20%) and shopping. These figures indicate the importance of having dining guides and tourist drives available for visitors. Travel Mindsets Travel mindsets refers to the type of experience that travellers are seeking as well as their travel patterns. In 2008 there was a break in data, changing from Travel Segments to Travel Mindsets, The groupings however very similar. The mindset data for 2009 is a 2 year aggregate, and applies only to holiday and leisure travellers. The North Coast primarily attracts Compatriots (families) and Wanderers (primarily the grey nomads), followed by Pampadours. The Hunter mainly attracts Wanderers and Pampadours, followed by Peer Group travellers, with the Region not attracting many families. The proportion of True Travellers attracted to both regions is low, possibly reflecting the product available. Table 4.4 Traveller Mindsets Mindset North Coast Hunter Pampadours want luxury Compatriots mainly families True Travellers seek depth of experience Peer Group Travellers fun experiences with friends Wanderers take time to explore & discover Other 20% 29% 6% 16% 27% 6% 25% 11% 9% 18% 32% 11% Source: Tourism NSW Regional Profiles Mid North Coast and Hunter Regions Over the past 5 years there appears to have been growth in the Pampadour / Luxury and Wanderers markets in both regions. The type of visitors attracted to the area varies seasonally, with travel by Compatriots concentrated in the school holiday periods, with Wanderers primarily travelling outside of school holiday periods. Age Profile Visitors aged 35 to 44 years (20.4%) was the largest group of travellers to the North Coast, followed by people aged 45 to 54 years (19.1%). The situation was reversed in the Hunter with 20.2% of visitors aged 45 to 54 years with 19.4% being 35 to 44 years. These age groups relate approximately to Generation X and the younger Baby Boomers. 24

26 Expenditure In YE June 2009 domestic overnight visitors spent an estimated $1.4 billion in the North Coast, spending on average, $114 per visitor per night. During the same period, visitors spent an estimated $769 million in the Hunter Region, with an average spend of $154 per visitor per night. The average spend in the Hunter was 35% higher than the spend on the North Coast International Overnight Visitors Data on international visitors is taken from the International Visitor Survey as summarised in the Regional Profiles. Due to the smaller numbers of visitors, the data should be regarded as indicative only. North Coast Region In the year ending June 2009, the North Coast Region attracted 159,000 international visitors who stayed one or more nights in the Region. These visitors stayed an average of 5.4 nights and spent 895,000 nights in the Region. In the past 5 years, the number of international visitors to the North Coast has increased by 11.3%. From 2005 to 2008 there was steady growth in the number of international visitors to the Region, followed by a 4.1% decline in the past 12 months. The Global Financial Crisis resulted in a 1.4% decrease the number of international visitors coming to Australia over the past 12 months (YE June 2009). Hunter Region In 2009 the Hunter Region attracted 110,000 international visitors, with these visitors spending 1.554m nights in the Region. The average length of stay was 14.1 nights. Visitation to the Region has increased by 11.1% over the past 5 years, with growth from 2005 to 2007, peaking at 118,000 visitors, followed by a 7.5% decline in 2008, and recovery in 2009 (up 0.9%). Table 4.5 Overnight International Visitation to the North Coast and Hunter Regions North Coast Overnight Visits Nights Spent Av Stay (nights) Year Ending June ,000 na 145, , ,000 1,006, , , , , % change Visits % change Nights Hunter Region Overnight Visits ('000) Nights Spent ('000) Av Stay (nights) 99,000 1,396, % 108,000 1,225, % 13.4% 118,000 1,483, % 10.6% 109,000 1,604, % 3.8% 110,000 1,554, % change Visits 9.1% % change Nights 12.2% Source: Tourism NSW Regional Profiles Mid North Coast and Hunter Regions 9.3% 21.1% 7.6% 5.1% 0.9% 3.1% Origin of Visitors North Coast In 2009, western markets accounted for 86.2% of international visitors to the North Coast, with the main markets being the United Kingdom (29.4%), followed by Germany (9.9%), North America (8.7%) and New Zealand (8.3%). 9.5% of visitors were from Asia, with China being the largest Asian market (2.6%) followed by Japan (1.6%) and Korea (1.2%). The Indian Market accounted for 0.9% (1,431 visitors) of international visitors. 25

27 From 2006 to 2009 the strongest growth markets (in terms of total increase) were Germany (3,416 visitors, China (3,264), United Kingdom (2,666), and Switzerland (1,519). Percentage wise the strongest growth was seen in the Taiwanese (up 558%), Chinese (373%) and Indian markets (147%), however these markets were growing from very small bases. From 2006 to 2009, the New Zealand, Korean, Singaporean and Thai markets all declined. Table 4.5 Country of Origin of International Visitors to the North Coast Country of Origin Western Markets United Kingdom Germany United States New Zealand Canada Scandinavia Switzerland France Netherlands Other Europe Total Western Asian Markets China Hong Kong Japan Korea India Singapore Malaysia Taiwan Thailand Indonesia Other Asia Total Asia Change No % No % No % % 8.5% 8.9% 11.5% 5.2% 4.4% 2.9% 2.7% 3.3% 7.2% 85.0% 0.6% 0.6% 1.6% 2.9% 0.4% 1.5% 0.5% 0.1% 0.4% 0.1% 1.2% 9.9% % 9.9% 8.7% 8.3% 5.4% 4.8% 3.6% 3.3% 3.2% 9.6% 86.2% 2.6% 0.3% 1.6% 1.2% 0.9% 0.9% 0.7% 0.6% 0.2% 0.1% 0.5% 9.6% % 27.7% 7.2% 20.9% 13.9% 19.6% 36.1% 34.0% 6.3% 46.2% 11.2% 375.2% 45.2% 9.7% 54.6% 146.7% 34.2% 53.5% 557.9%.45.2% 9.7% 54.3% 6.3% Middle East / Africa % % % Other Countries % % % Source: Tourism NSW Regional Profiles Mid North Coast and Hunter Regions Hunter The majority of visitors to the Hunter in 2009 were also from the UK (27.1%), with New Zealand ranking second (12.2%) followed by North America (10.0%). Germany was the largest of the European markets (excluding the UK). 15.1% of visitors came from Asia, with China being the main market (3.1%), followed by Taiwan (1.8%), Japan (1.7%) and Korea (1.5%). The Indian market accounted for 0.5% of international visitors. From 2006 to 2009, the Asian market grew from 8.5% of international visitors to the Hunter, to 15.1%, with most of the growth being in the Chinese (4494 additional visitors) and the Taiwanese (2572 additional visitors) markets. China showed the strongest absolute and percentage growth of all markets. (Note: both China and Taiwan are growing from a very small base). In the Western markets, the North American and UK markets grew by 14.4% and 10.0% respectively. The New Zealand (up 3.9%) and Canadian (up 2%) markets also showed some growth. The German, Scandinavian and Other European markets fell, with Germany declining by 18.4%. 26

28 Table 4.7 Country of Origin of International Visitors to the Hunter Country of Origin Western Markets United Kingdom Germany United States New Zealand Canada Scandinavia Other Europe Total Western Asian Markets China Hong Kong Japan Korea India Singapore Malaysia Taiwan Thailand Other Asia Total Asia Change No % No % No % % 9.0% 11.6% 11.5% 5.7% 4.5% 18.1% 87.2% 0.3% 0.7% 2.1% 1.5% 0.3% 1.9% 0.5% 0.2% 0.1% 0.9% 8.5% % 6.7% 12.1% 10.9% 5.3% 3.9% 11.9% 77.9% 3.1% 1.0% 1.7% 1.5% 0.5% 1.3% 1.2% 1.8% 0.9% 2.1% 15.1% % 18.4% 14.4% 3.9% 2.0% 5.0% 27.9% 2.0% % 56.7% 11.2% 9.7% 82.8% 25.0% 163.2% 886.9% 886.9% 192.4% 98.7% Middle East / Africa % % % Other Countries % % % Purpose of Visit In 2009, the majority of international visitors to the North Coast were on holidays (82.3%), with 14.8% visiting friends and relatives and 1.9% travelling for business. These percentages have remained relatively consistent over the past 5 years. The Hunter has a lower proportion of holiday visitors (59%) and a higher proportion of VFR (22.9%) and business (10.5%) travellers. The volume of VFR traffic has fallen over the past 5 years, while business travel has increased. Accommodation Used In 2009, 32.3% of international visitors to the North Coast stayed with friends and relatives. Backpacker / hostels were the next most popular form of accommodation (13.3%) followed by caravan parks (12.4%). Over the past 5 years, staying with friends and relatives has been the most popular form of accommodation, generally followed by backpacker / hostels. In three of the 5 years, caravan parks ranked third, with holiday flats and apartments and motels, each ranking third once. In the Hunter, staying with friends and relative was the most popular accommodation in 2005 and 2006, with this then being replaced by rental holiday homes and apartments. In YE June 2009, 39.9% of international visitors stayed in rental accommodation (note 49.5% in 2008), with 28.4% staying with friends and relatives. Other accommodation used includes staying at educational institutions, back packer hostels and home stay. Expenditure International visitors spent an estimated $58m in the North Coast and $125m in the Hunter in the YE June The average expenditure per visitor per night on the North Coast was $67, with the average in the 27

29 Hunter being $80 per night. The average spend per international visitor in both Regions is considerably lower than that of domestic overnight visitors. Implications for Port Stephens In comparison to the domestic overnight market, the international overnight visitor market is very small, accounting for 5% of total overnight visitors on the North Coast and 5.5% of overnight visitors in the Hunter. The Western markets are the main generators of visitors for both Regions, with the UK market being the largest market. The UK is the only international market that accounts for more than 1% of overnight visitors in both Regions (1.5% on the North Coast and 2.2% for the Hunter). The Asian market is showing strong growth in the Hunter Region (albeit from a very small base), up 98.5% in the past 4 years, with the strongest growth being in the Chinese market. Asian visitation to the North Coast Region only increased by 6.3% in the past 4 years. The Indian market, which is being targeted by Port Stephens, is very small, generating only 1,431 visitors to the North Coast and 795 to the Hunter in There is a large Indian community at Woolgoolga, just north of Coffs Harbour, and it is likely that a significant proportion of the Indian travel to the North Coast is Woolgoolga related VFR. In comparison to the domestic market, international visitors are spending considerably less per night than domestic visitors Domestic Day Trippers In 2009, there were 3.08 million day trips undertaken to and within the North Coast Region, with million day trips to the Hunter. In both regions, the number of day trips increased from 2005 to 2008, then declined in 2009, primarily due to economic conditions. Table 4.8 Domestic Day Trip Visitation to the North Coast and Hunter Regions Day Trippers North Coast ('000) Hunter ('000) Year Ending June ,552 3,238 4,049 3,337 4,258 3,384 4,572 3,080 4,330 % change North Coast 10.7% % change Hunter 14.0% Source: Tourism NSW Regional Profiles Mid North Coast and Hunter Regions 3.1% 5.2% 1.4% 7.4% 9.0% 5.3% The majority of day trips in each Region are leisure trips, accounting for 59% of North Coast trips and 46% of Hunter trips. Visiting friends and relatives ranks second with 23.7% of trips to the North Coast and 32.5% of Hunter trips. The Hunter also has a strong business market (13.9% of trips). Around half the day trippers in both Regions dined out. Visiting friends and relatives ranked second, accounting for 33.2% of activities undertaken by day trippers to the North Coast and 44.5% of day trippers to the Hunter. Other popular activities were shopping for pleasure, going to the beach and general sight seeing. The average expenditure per day tripper was $114 in the North Coast and $101 in the Hunter. 28

30 Table 4.9 Characteristics of Day Trippers, YE June 2009 Characteristics North Coast Hunter Purpose of Visit Holiday / Leisure Visiting Friends & Relatives Business 59.0% 23.7% 6.6% 44.6% 32.5% 13.9% Main Activities Undertaken Dining Out Visiting Friends & Relatives Shopping for Pleasure Sight Seeing Going to the Beach Expenditure Total spent in region Average spend per visitor Implications for Port Stephens 50.4% 33.2% 28.6% 18.1% 20.8% $350m $ % 44.5% 23.6% 15.2% 8.6% $435m $101 It is important to market to residents of the surrounding area, encouraging visitation to Port Stephens as a day trip, and also to bring their VFR visitors to Port Stephens International Day Trippers Statistics are not available on the size or characteristics of international day trippers visiting Port Stephens. The international day trip market is a significant market for a number of the tour and attraction operators. It is recommended that the Tourism Unit in conjunction with PSTL work with PSTL members to try and quantify the size and characteristics of this market. 4.2 Visitation to LGA s within the North Coast and Hunter Regions Tourism Research Australia has prepared visitation profiles for individual LGAs for the year ending June These profiles are derived from the National Visitor and International Visitors Survey data and are based on the average visitation to the LGA over the past 3 4 years. Due to small sample sizes, data on international overnight visitors and domestic day trippers is not published for some LGAs. Information is not available on day trips undertaken by international visitors. In 2007, Port Stephens was the 3 rd most visited LGA in the North Coast Region, ranking behind Coffs Harbour and Port Macquarie. Port Stephens attracted an estimated 617,000 domestic overnight visitors, 27,000 international overnight visitors and 612,000 day trippers. Domestic overnight visitors spent million nights in the LGA, with international visitors spending 123,000 nights. Within the North Coast Region, domestic overnight visitors to Port Stephens had the highest average daily spend ($141 per visitor), with average expenditure by international visitors ($100 per visitor) ranking 2 nd in the Region. In the Hunter Region, Newcastle was the most visited LGA, attracting 903,000 domestic and 59,000 international overnight visitors and 1.959m day trippers. Cessnock ranked second with 322,000 domestic and 29,000 international overnight visitors and 543,000 day trippers. Domestic overnight visitors to Cessnock spent an average of $246 per day. Day trippers spent on average $120 per day in Cessnock, with expenditure by international visitors being lower at $94 per day. 29

31 LGA Table 4.10 Visitation to LGAs within the North Coast & Hunter Regions North Coast Bellingen Coffs Harbour Great Lakes Kempsey Nambucca Port Macquarie Port Stephens Taree Hunter Cessnock Dungog Gloucester Lake Macquarie Maitland Muswellbrook Newcastle Singleton Upper Hunter Visits ('000) Domestic Overnight Visitors International Overnight Visitors Dom Day Average Daily Spend Nights ('000) Trips % of Region 2.6% 23.3% 15.1% 9.4% 3.9% 20.8% 18.2% 6.8% 15.2% 3.5% 4.9% 10.4% 7.1% 4.2% 42.6% 6.8% 5.4% Source: Tourism Research Australia LGA Profiles, YE June % of Region 2.4% 21.6% 15.0% 11.2% 4.0% 21.1% 19.2% 5.6% 13.4% 3.3% 6.0% 12.6% 6.8% 3.8% 43.7% 6.1% 4.4% Av Stay Nights Visits ('000) Nights ('000) Av Stay Nights np np np np 9 np np 59 np np np np np np 102 np np 1066 np np np np np np 11.0 np np 18.0 np np np np np np Domestic O'night $ 56 $123 $115 $ 58 $ 90 $107 $141 $ 57 $246 $137 $ 86 $ 53 $123 $ 94 $111 $135 $101 Overseas Visitors np $ 53 $ 57 $ 94 np $ 65 $100 $108 $94 np np $99 np np $69 np np Day Trippers $ 79 $145 $ 72 $ 80 np $127 $ 99 $106 $120 $ 43 np $100 $ 85 np $ 96 $ 84 np 30

32 4.3 Market Outlook & Forecasts The Global Financial Crisis has had a significant impact on the tourism sector, with Tourism Research Australia (TRA) estimating that the industry has contracted by 3.5%. In 2009, international visitors to Australia fell by 1.4%, while the number of domestic visitor nights fell by 5.4%. TRA expects a modest recovery in 2010 with international arrivals forecast to increase by 4.4% and domestic nights to increase by 2.3%. From 2010 to 2013 the domestic market is expected to decline by 0.4% per annum, with slight growth (0.5% pa) forecast for International arrivals are forecast to increase by 3.5% per annum. The forecast growth rates for the main international markets attracted to the North Coast and Hunter area are: Table 4.11 Market United Kingdom North America New Zealand Germany Canada China South Korea India Forecast Annual Growth Rates Main International Markets Forecast Annual Growth Rate % 2.8% 2.1% 4.8% 1.6% 1.3% 1.2% 2.8% 1.9% 4.2% 11.5% 9.1% 8.1% 2.4% 16.5% 13.1% China is forecast to account for 13.7% of total additional visitor arrivals generated from 2010 to 2018, with New Zealand ranking second (12.5%), followed by the United Kingdom (8.8%) and the United States (.77%). India is forecast to rank 7 th accounting for 5.5% of additional arrivals. By 2018 the Indian market is forecast to grow to 459,000 arrivals per annum. 4.4 Port Stephens Visitor Profile The Port Stephens Tourism Profile provides a broad overview of the scale and characteristics of visitation to the LGA. According to the Tourism Profile for the YE June 2007: Domestic Overnight Visitors Port Stephens attracted in the order of 617,000 domestic overnight visitors, with these visitors spending around million nights in the LGA. Visitors stayed an average of 3.9 nights, with 23% of visitors staying one night, 27% staying 2 nights, 24% staying 3 4 nights, 19% staying 5 9 nights and 7% staying 10+ nights. Visitors spent on average $141 per person per night while in the LGA. 90% of visitors were from NSW with 60% coming from Sydney and 30% from Regional NSW. Interstate visitors account for 10% of visits with Melbourne being the main interstate market. Holiday and leisure travellers accounted for 73% of visits. Visiting friends and relatives accounted for 21% of visits, with 26% of visitors staying with friends and relatives. Business travel was very low, accounting for only 4% of trips. 31

33 30% of visitors stayed in hotels, resorts and motels, while 19% rented holiday houses, apartments and 13% stayed in caravan parks. 94% of visitors travelled to Port Stephens by car with only 1% travelling by air. Given the proximity of Newcastle Airport, the percentage of air travellers is lower than expected. The main activities undertaken by visitors to Port Stephens were dining out (58%), going to the beach (55%), driving and walking around (40%), visiting friends and relatives (33%), shopping for pleasure (31%) and going to pubs and clubs (27%). For 85% of visitors, Port Stephens was the main destination with 15% of visitors staying in the LGA as part of a multi destination trip. 13% of visitors to Port Stephens were aged years (Generation Y), 39% were aged years (Generation X), with 31% being years (Baby Boomers) and 17% being 65+ years of age. 37% of visitors were families with children, 28% were younger midlife singles and couples, 13% were older working couples with 23% being retirees. 32% of visitors were travelling as a family with children, 32% as couples, 23% with friends or relatives and 10% alone. International Overnight Visitors In 2007 Port Stephens attracted 27,000 international visitors, with these visitors staying 123,000 nights in the area. 55% of international visitors to Port Stephens were repeat visitors. 28% of international visitors came from the United Kingdom, with 12% from New Zealand and 8% from Germany. 83% of international visitors were holiday leisure travellers, with 13% visiting friends and relatives and 3% travelling for business. 44% of visitors stayed in hotel, motel or resort accommodation, with 19% staying in caravan parks, 17% with friends and relatives and 9% at back packer hostels. Only 4% rented holiday houses or flats. The most popular activities undertaken by international visitors were dining out (86%), going to the beach (83%), shopping for pleasure (66%), whale and/or dolphin watching, (45%), going to pubs and clubs (41%) and visiting National Parks and State Forests (32%). The average length of stay was 3.5 nights, with 32% staying 1 night, 23% staying 2 nights, 18% staying 3 4 nights, 18% staying 5 9 nights and 9% staying 10+ nights. 14% of international visitors were aged years, 36% were years, 37% were years with 7% being 65+ years. 44% were travelling as adult couples, with 35% being unaccompanied, and 11% travelling with friends or relatives. Only 9% were travelling with children. Domestic Day Trippers In 2007 Port Stephens attracted an estimated 612,000 day trippers, of which 63% were leisure travellers, 25% were visiting friends and relatives and 12% were travelling for other reasons. 56% were aged years, with 32% being years and 13% being

34 35% were younger midlife couples and singles, 31% were families with children, 11% were older working couples and 22% were retired. The most popular activities undertaken were dining out (47%), going to the beach (35%), visiting friends and relatives (29%) and walking and driving around (23%). The different market segments attracted to Port Stephens are discussed in Section Comparison of Visitor Profiles North Coast & Hunter A comparison of visitor and trip characteristics of Port Stephens with the most visited destinations in the North Coast and Hunter Regions is given in the following tables. The main findings from this comparison were: Domestic Market Port Stephens visitor markets are more closely aligned with the North Coast than the Hunter Region. Port Stephens is highly dependent on the Sydney market, with low penetration of the regional NSW and Interstate markets. Port Stephens has a relatively narrow market base and is highly dependent on holiday and leisure travellers. The LGA is more popular with the family market, particularly families with young children, and with retirees, and marginally less popular with the market segments that are likely to have more disposable income. Port Stephens does not appear to be capitalising effectively on Newcastle Airport. International Overnight Visitors Port Stephens appears to attract a different mix of international visitors to Hunter and North Coast, with a higher propensity for repeat visitors, adult couples and visitors staying 3+ nights in the area. Back packers appear to be by passing the LGA, possibly due to limited accommodation and/or the coach services north which depart from Newcastle. Visitors from western countries are the primary markets for both the North Coast and Hunter Regions Domestic Overnight Visitors Origin of Visitors NSW is the main source of visitors for each of the LGAs, with Port Stephens and Great Lakes having the highest proportion (around 90%) of intrastate visitors. Port Stephens, Cessnock, Lake Macquarie and Great Lakes are dependent on the Sydney market for around 60% of their visitation. Given the proximity of Port Stephens to the Hunter and Central Coast regions, and the road links to Central NSW (Golden Highway) and the New England North West Region (New England Highway and Thunderbolts Way), the proportion of visitors from Regional NSW is lower than expected. Port Stephens penetration of the interstate market (10% of visitors) is also very low, given the proximity to Newcastle Airport. 33

35 LGA Origin of Domestic Overnight Visitors % of visits NSW Interstate Sydney Regional NSW Port Stephens 90% 10% 60% 30% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 71% 82% 91% 77% 81% 86% 29% 18% 9% 23% 19% 14% 34% 44% 58% 43% 60% 60% 37% 38% 33% 33% 21% 26% NSW Average 68% 32% 35% 33% Source: Tourism Research Australia Tourism Profiles Regional Areas 2007 Main Purpose of Visit Cessnock, Port Stephens and Great Lakes Shire are highly dependent on holiday and leisure travellers, with these travellers accounting for 73% of travellers to Port Stephens. Holiday and leisure travel is highly discretionary, and as such these LGAs are likely to be more vulnerable in tough economic conditions. Newcastle, Coffs Harbour and Port Macquarie have reasonable business travel sectors which helps to under pin the viability of their accommodation sectors. LGA Main Purpose of Visit % of visits Holiday VFR Business Other Port Stephens 73% 21% 4% 2% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 51% 54% 72% 22% 85% 42% 28% 31% 22% 53% 7% 49% 14% 11% 3% 19% 4% np 7% 5% 3% 5% 4% np NSW Average 42% 37% 18% 6% Source: Tourism Research Australia Tourism Profiles Regional Areas 2007 VFR = Visiting Friends and Relatives np = Not Published Type and Duration of Trip Port Stephens has the highest proportion of destination based travellers, reflecting in part the distance from the Pacific Highway to the main tourist areas. It is likely that most of the transit (multi destination visits) in the LGA are concentrated along the Highway corridor at Raymond Terrace and Karuah. The coastal areas of Port Stephens do not have the benefit of transit traffic and impulse stops, nor does it appear that the area is tapping effectively into the touring market. The data also indicates the importance of having effective motivational and directional signage along the Pacific Highway corridor. 74% of trips to Port Stephens are short breaks (1 to 4 nights). The duration of trips to Port Stephens is similar to the other coastal destinations. LGA Sole Duration of Visit (nights) Destination Port Stephens 85% 23% 27% 24% 19% 7% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 64% 70% 81% 81% 81% 81% 33% 28% 21% 40% 31% 30% 22% 23% 26% 28% 42% 36% 22% 24% 29% 21% 23% 16% 18% 19% 18% 8% np 14% 5% 6% 5% 3% np 4% NSW Average 86% 29% 27% 24% 15% 5% Source: Tourism Research Australia Tourism Profiles Regional Areas

36 Accommodation Port Stephens has the highest proportion of visitors staying in rented holiday houses and apartments (19%) and the second highest proportion of visitors staying in caravan parks (13%). The apartment statistic is interesting because both Coffs Harbour and Port Macquarie have large apartment complexes, however these are managed and promoted as 'resorts'. LGA Accommodation Used Hotel, Motel, Rented House / Caravan Park Friends / Other Resort Apartment / Camping Relatives Port Stephens 30% 19% 13% 26% 10% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 47% 36% 23% 34% 46% 14% 6% 12% 17% 2% 11% 8% 11% 11% 19% 3% 12% 11% 29% 30% 26% 57% 21% 55% 6% 10% 16% 4% 15% 12% NSW Average 36% 6% 8% 42% 14% Source: Tourism Australia Tourism Profiles Regional Areas 2007 Other includes caravan / camping in non commercial areas and houseboats Transport Used The majority of visitors to all LGAs travel by private car. Only 1% of visitors to Port Stephens arrive by air. In contrast, 5% of visitors to Cessnock and 2% to Lake Macquarie travel by air. While Lake Macquarie's visitation is probably VFR related, visitors to Cessnock are likely to be leisure travellers and/or conference delegates. Newcastle is also drawing visitors through the Airport, many of whom are likely to be business travellers, conference delegates and sporting and event attendees. With the interstate air services available through the Airport, there is opportunity for Port Stephens to build the interstate markets. LGA Transport Used Private Car Air Other Port Stephens 94% 1% 5% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 86% 91% 95% 78% 87% 88% 9% 4% 1% 11% 5% 2% 5% 5% 4% 11% 8% 10% NSW Average 78% 15% 8% Source: Tourism Australia Tourism Profiles Regional Areas 2007 Activities Undertaken Dining out, going to the beach and undertaking walks and drives are very popular activities with visitors to Port Stephens. These figures indicate the importance of having the information and infrastructure in place to support these activities. LGA Dining Out Beach Drives / VFR Shop Clubs Winery Walks Pubs Port Stephens 58% 55% 40% 33% 31% 27% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock 58% 57% 52% 52% 60% 48% 45% 56% 23% 34% 35% 35% 24% 33% 42% 42% 34% 58% 31% 34% 34% 23% 26% 26% 28% 29% 28% 23% 24% 62% Lake Macquarie 41% 28% 20% 55% 24% 24% NSW Average 52% 24% 27% 45% 27% 25% 3% Source: Tourism Australia Tourism Profiles Regional Areas

37 Age Profile of Visitors Although the age profiles in each of the LGAs are similar, it appears that Port Stephens attracts less of the Baby Boomer generation and slightly more of Generation X and Seniors. As a generalisation, these generations are less affluent, with lower disposable income, than the Baby Boomer generation. LGA Age of Visitors years (Gen Y) years (Gen X) years (Baby Boomers 65+ years (Seniors) Port Stephens 13% 39% 31% 17% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 14% 13% 15% 19% 9% 12% 37% 36% 36% 38% 42% 40% 37% 36% 35% 32% 36% 34% 12% 16% 13% 11% 13% 19% NSW Average 16% 37% 34% 13% Source: Tourism Research Australia Tourism Profiles Regional Areas 2007 Lifecycle Group The lifecycle stage of visitors to Port Stephens is similar to those of Coffs Harbour, Port Macquarie and Great Lakes, with Port Stephens attracting slightly more families with younger (pre school aged) children and slightly less families with older children. LGA Young Midlife Parents with youngest child Older Single Couple < 6 years 6+ years Working Retired Port Stephens 16% 12% 17% 20% 13% 23% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 18% 14% 17% 23% 11% 13% 11% 12% 13% 14% 21% 16% 14% 14% 14% 14% 12% 16% 23% 22% 23% 18% 22% 17% 14% 15% 13% 14% 15% 14% NSW Average 19% 13% 13% 22% 15% 18% Source: Tourism Australia Tourism Profiles Regional Areas 2007 Travel Party Port Stephens attracts a higher proportion of families with children than the other LGAs, with the area also being popular with adult couples. Port Stephens does not attract a lot of visitors travelling alone, possibly reflecting the limited size of the business sector. LGA Travel Party Alone Adult Couple Family + Friends / other children Relatives Port Stephens 10% 32% 32% 23% 3% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 17% 14% 9% 31% 10% 14% 33% 35% 33% 29% 42% 32% 25% 27% 29% 20% 12% 27% 19% 19% 26% 14% 28% 21% 6% 4% 3% 6% 7% 6% NSW Average 25% 28% 21% 20% 6% Source: Tourism Australia Tourism Profiles Regional Areas % 23% 19% 17% 19% 24% 36

38 4.5.2 International Overnight Visitors Repeat Visitation and Purpose of Visit 55% of international visitors to Port Stephens are repeat visitors with this proportion being considerable higher than repeat visitor to other LGA's in the North Coast Region. It is also higher than the average for the State. Port Stephens needs to investigate this percentage as it means that there are only 12,150 'new' international visitors each year staying in the LGA. Lake Macquarie also has a very high proportion of repeat visitors, however these visitors appear to be mainly VFR travellers. LGA Repeat Visitor Purpose of Visit Holiday VFR Business Other Port Stephens 55% 83% 13% 3% 1% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 36% 37% 47% 49% 49% 76% 90% 88% 86% 50% 85% 29% 7% 9% 15% 30% 7% 62% 1% 11% 4% 3% 2% 11% 4% NSW Average 51% 58% 25% 15% 10% Source: Tourism Australia Tourism Profiles Regional Areas 2007 Origin of Visitors Main Source Countries Western markets are the primary source of international visitors to each of the LGAs, with the United Kingdom being the most significant market, followed by New Zealand and the United States. LGA UK Germany Other New Zealand USA Canada Europe Port Stephens 28% 8% 8% 12% Coffs Harbour Port Macquarie Great Lakes Newcastle 30% 32% 29% 22% 10% 11% 8% 10% 11% 14% 11% 15% 10% 6% Cessnock Lake Macquarie 26% 30% 9% 13% 22% 13% NSW Average 15% 4% 4% 13% 10% 3% Source: Tourism Australia Tourism Profiles Regional Areas 2007 Accommodation Used Compared to other coastal LGAs, Port Stephens had a higher proportion of international visitors staying in hotel, motel and resort accommodation. This may reflect either a different market demographic to other areas or limited availability of back packer / hostel accommodation, with these travellers staying in other types of accommodation when in the area. International visitors have a low propensity to rent holiday houses and apartments, possibly due to their relatively short stay in the area (most holiday rentals have a minimum stay) and/or the fact that they may not be travelling with linen. LGA Hotel Motel Resort Rented House / Unit Caravan Park Friends / Relatives Back Packers Other Port Stephens 44% 4% 19% 17% 9% 7% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 38% 30% 35% 22% 62% 10% 3% 2% 6% 3% 20% 24% 31% 8% 10% 16% 8% 11% 15% 36% 7% 63% 27% 30% 17% 21% 6% 4% 3% 8% 12% 11% NSW Average 58% 6% 3% 29% 12% 6% Source: Tourism Australia Tourism Profiles Regional Areas

39 Age Profile Port Stephens appears to attract an older demographic than Coffs Harbour and Port Macquarie. It is possible that the younger back packer market is by passing the LGA. LGA Age of Visitors years (Gen Y) years (Gen X) years (Baby Boomers 65+ years (Seniors) Port Stephens 14% 36% 37% 12% Coffs Harbour Port Macquarie Newcastle Cessnock 31% 31% 32% 9% 35% 40% 40% 41% 26% 22% 23% 43% 8% 7% 4% 7% Great Lakes Lake Macquarie 51% 38% 39% 49% 10% 13% NSW Average 17% 43% 32% 7% Source: Tourism Australia Tourism Profiles Regional Areas 2007 Travel Party LGA Travel Party Alone Adult Couple Family + Friends / other children Relatives Port Stephens 35% 44% 9% 11% 1% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 46% 42% 38% 60% 36% 39% 36% 39% 46% 20% 48% 46% 6% 5% 6% 6% 12% 13% 16% 12% 9% 14% 1% 3% 1% 1% NSW Average 50% 26% 9% 10% 5% Source: Tourism Australia Tourism Profiles Regional Areas 2007 Duration of Visit Newcastle and Lake Macquarie attract the highest proportion of international visitors staying 3 or more nights. These are primarily VFR travellers plus some educational related travel associated with the University of Newcastle. In the holiday and leisure market, international visitors tend to stay longer in Port Stephens than they do in Coffs Harbour, Port Macquarie and Great Lakes. LGA Duration of Visit (nights) Port Stephens 32% 23% 18% 18% 9% Coffs Harbour Port Macquarie Newcastle Cessnock 51% 44% 24% 38% 18% 24% 17% 35% 14% 15% 16% 18% 11% 12% 19% 5% 6% 5% 24% 5% Great Lakes Lake Macquarie 74% 28% 9% 14% 17% 59% NSW Average 5% 14% 24% 25% 31% Source: Tourism Australia Tourism Profiles Regional Areas Domestic Day Trips Port Stephens Shire attracted an estimated 612,000 domestic day trips in Main Purpose of Visit The majority of day trips to Port Stephens are leisure related, with the LGA having a small business trip market. 38

40 LGA Main Purpose of Visit % of visits Holiday VFR Business / Other Port Stephens 63% 25% 12% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 53% 53% 60% 40% 70% 44% 25% 25% 27% 33% 23% 46% 22% 23% 14% 27% 7% 10% NSW Average 52% 29% 19% Source: Tourism Research Australia Tourism Profiles Regional Areas 2007 VFR = Visiting Friends and Relatives Age Profile Port Stephens appears to attract less day trips from retires than the other destinations on the North Coast. LGA Age of Day Trippers years years 65+ Port Stephens 56% 32% 13% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 52% 50% 53% 56% 42% 53% 31% 27% 30% 30% 35% 34% 17% 23% 31% 14% 22% 13% NSW Average 53% 31% 15% Source: Tourism Australia Tourism Profiles Regional Areas 2007 Lifecycle Stage LGA Younger Midlife Singles + Couples Lifecycle Stage Parents with Older Working Children Older Non working Port Stephens 35% 31% 11% 22% Coffs Harbour Port Macquarie Great Lakes Newcastle Cessnock Lake Macquarie 31% 26% 34% 34% 25% 24% 34% 30% 30% 35% 29% 42% 19% 9% 13% 12% 15% 10% 26% 34% 22% 19% 31% 24% NSW Average 32% 35% 12% 21% Source: Tourism Research Australia Tourism Profiles Regional Areas Markets Attracted to Port Stephens The following information on the different markets attracted to Port Stephens is qualitative and based on observations provided by the Visitor Information Centre Staff and local accommodation, tour and attraction operators. Port Stephens attracts a very diverse range of markets, with the market mix varying quite significantly in the different localities. The primary and secondary markets for each locality are summarised in Table 4.12 and discussed below. 39

41 Table 4.12 Primary and Secondary Markets Locality Primary Markets Secondary / Minor Markets Nelson Bay Shoal Bay Fingal Bay Soldiers Point Anna Bay One Mile Boat Harbour Stockton Dunes Tilligerry Peninsula Raymond Terrace Heatherbrae Motto Farm Karuah Seaham Hinton Families holiday makers concentrated in school holiday periods Couples short breaks and holiday markets warmer months and weekends Retirees off season Visiting friends and relatives (VFR) International groups primarily day visitors participating in dolphin watching activities Day trippers Hunter Families / holiday makers Retirees VFR Families holiday makers Couples short breaks and holiday markets warmer months and weekends International groups day visitors sand dune activities Day trippers Families / holiday makers Retirees Highway travellers RAAF Business and work related travellers Monday to Thursday nights, drawn from the western suburbs of Newcastle, the new industrial areas at the end of F3 Freeway (Beresfield Thornton) and the Williamtown and Tomago areas. Highway travellers (motels) Retirees (caravan park) Passing traffic enroute to Dungog Water skiers Day trips often visited in conjunction with Morpeth Conferences & meetings Business related travel Domestic tour groups primarily retirees visiting mid week International Tour Groups International travellers FIT self drive Activity based groups and individuals including golfers, anglers, boating, diving enthusiasts Event attendees Day trippers Sydney & Central Coast Boating enthusiasts Fishing clubs / social groups of anglers Fishing enthusiasts Retirees off season Visiting friends and relatives (VFR) 4WD clubs and enthusiasts Back packers Boating and fishing enthusiasts Surfers Touring vans & motorhomes Boating & fishing enthusiasts Day trippers from other parts of the LGA and Hunter Region Car Clubs Sporting groups & sporting event attendees Small conference & meetings VFR Overflow from Newcastle and Maitland cities Event visitors for Dungog Shire Water skiers Touring vans & motorhomes Airport travellers (staying the night before flying out of Newcastle airport).overflow from coastal areas in peak times Airport travellers Fishing & Boating enthusiasts Day trippers VFR Bird watchers Touring Vans & motorhomes For the majority of market segments, Port Stephens draws primarily from the Sydney, Hunter and Central Coast Regions. 40

42 Table 4.13 Origin of Market Segments Market Segment Primary Source Secondary Source Family holiday market Sydney northern and north western Hunter, Central Coast apartments & resorts suburbs Family holiday market camping & caravans Sydney western and south western suburbs Central Coast Central NSW Dubbo & surrounds Hunter Couples / short breaks Sydney Hunter, Central Coast Interstate packages Retirees / Grey Nomads Sydney Central Coast Hunter, Regional NSW, Interstate long haul touring trips Conferences & meetings Hunter Sydney, Central Coast Coach tour groups Central Coast Sydney, Hunter, Lower North Coast Water skiers, wake boarders Lower Hunter primarily Newcastle Upper Hunter, Central Coast Occasionally Sydney & Taree Anglers / Fishing Clubs Hunter Sydney, Central Coast 4WD Enthusiasts / Clubs Sydney western and south western Cental Coast, Upper Hunter suburbs, Lower Hunter Boating (power / cruising) Hunter Sydney, Central Coast Sailing Hunter Sydney, Central Coast, Touring Yachts Surfers Hunter Central Coast, Sydney, North Coast often as part of touring surfing trip Golfers Hunter Cental Coast, Sydney Sport Hunter Sydney & Regional NSW School Excursions Hunter Domestic Holiday & Leisure Markets Family Holiday Market The domestic holiday market is the primary market for the Tomaree and Tilligerry Peninsulas and the caravan parks at Karuah. Sydney is the main source of visitors, with Port Stephens primarily drawing from the northern and north western suburbs for the more up market accommodation, and from the western and south western suburbs for mid range accommodation and camping / caravans. The area is also popular with holiday makers from the Central Coast and Hunter Valley, in particular with coal miners. The area attracts some visitors from Central NSW, primarily from the Dubbo area and also from the southern end of the New England North West region Liverpool Plains and Gunnedah area. The road links to Central NSW (Golden Highway) and the NE NW Region (New England Highway and Thunderbolts Way), provide the opportunity to build visitation from these areas. Visitation from families with school aged children is concentrated in the school holidays, peaking over Christmas. There is a high level of repeat visitation, with families booking from year to year. Over the past decade, the length of stay has been decreasing, from 3 to 4 weeks down to 7 to 10 days. Price, the age of the children and activities interested in tend to determine where people stay in the area. Boating enthusiasts and people interested in fishing are more likely to stay around the foreshores of the Bay, close to areas where they can launch their boats. Soldiers Point, Lemon Tree Passage and Karuah are popular with the boating and fishing markets, particularly those with younger children who want to avoid congestion in the Nelson Shoal Fingal Bay areas. People interested in surfing are more likely to stay at One Mile and Anna Bay. The bay beaches are popular with families with pre school aged, with this market often travelling in the shoulder season, particularly February, to take advantage of the shoulder season pricing and packages. Polarisation of the market is occurring. At one end there is a shift towards higher standard self contained accommodation houses, apartments and cabins in caravan parks. At the other end of the market, there has been strong increase in the number of families camping, both in caravan parks and along Stockton Beach. Stockton Beach is attracting an increasing number of large social and family groups interested in 41

43 4WD and using quad bikes. These groups, which are coming mainly out of the Hunter and the western and south western suburbs of Sydney, are becoming an issue for the area. There is also a growing trend for a number of families to holiday together (often sharing a house to spread costs) and for families to be accompanied by grand parents. As such they are seeking larger properties with 4 5 bedrooms. Short Breaks Family Market This is primarily a week end market coming out of the Lower Hunter and Sydney regions. Travel is concentrated in the warmer months, from October through to Easter. Travel is often impulsive with a very short lead time, and is highly dependent on the weather and weather forecast for the weekend. This market tends to stay in caravan parks, with cabins being popular. Adult Couples Holiday and Short Break Markets There is strong demand for up market accommodation over the Christmas New Year period and at Easter from adult couples taking a short holiday generally 5 7 days. The area also attracts the short break / weekend escape markets and the romance markets, as well as groups of couples. The Tomaree Peninsular (particularly the Nelson Shoal Bay area) is popular with this market, with the market generally looking for quality accommodation, preferably with water views within walking distance of restaurants, cafes etc. This market has a relatively short booking lead time and will generally surf the web looking for deals. Retiree Market The retiree holiday market tends to visit outside of school holiday periods. This market includes both destination based travellers coming to Port Stephens to fish, boat, play golf and/or just relax, and the touring market, with Port Stephens being one a number of locations visited. In the past the Victorian market was quite strong in winter, however this market has declined significantly in recent years. The retiree market primarily travels as couples, couples with a friend or small groups of couples. For those staying more than 1 2 nights, self contained accommodation (apartments, caravan park cabins) is preferred. The market is generally price conscious. Visiting Friends & Relatives (VFR) The VFR market is an important market for local businesses. While it is difficult to promote to this market, initiatives that can be undertaken include: Ensuring that activities and events in Port Stephens are included in the 'What's On' guides in the local and regional media. Placing articles about the different activities on offer in the LGA in the local and regional media in the lead up to school holidays. Local papers often have a feature article and discount coupons. Producing a 'holiday activities' guide that can be distributed locally in shopping centres, through libraries, schools, pre schools etc. 42

44 Car based Touring The coastal areas of Port Stephens attract some touring travellers, primarily those on an extended trip who have the time to turn off the Highway and come into the area and explore. These visitors generally stay 1 2 nights. It appears that the area is more likely to attract south bound travellers, who look to spend a couple of days relaxing before heading on to Sydney. Caravan park cabins are very popular with this market. North bound travellers will often break their journey in Raymond Terrace or Karuah, either for a meal break or to stay overnight if they have left Sydney late in the afternoon. North bound touring travellers generally do not visit the coastal areas of the LGA, possibly due to the proximity of Port Stephens to Sydney (visit another time for a weekend) and the distance off the Highway with the need to 'back track' along the same road. Many travellers just starting their touring trip want to put distance between themselves and home, with Forster Tuncurry Myall Lakes often seen as the 'starting place' for the holiday. Touring Caravans and Motorhomes The touring campervan and motor home market is a relatively small market for Port Stephens. Most caravans, campervans and motorhomes are self contained and travellers generally stay in a mix of commercial parks and 'free' areas such as rest areas and car parks (particularly those with attractive outlooks riverside, parks etc). Caravan parks tend to be used when travellers are staying in an area for a few nights and/or when they need to charge batteries, use a dump point and/or do laundry. Port Stephens does not have a high profile amongst this market. This is partly due to its close proximity to Sydney (too early to set up camp), and partly due to the lack of 'free' camping sites. The distance of the coastal destinations off the Highway is also a deterrent. The touring market coming into the Tomaree and Tilligerry peninsulas have generally made the decision to stay at least one night in the area, realising that they are likely to have to stay in a commercial caravan park. The coastal area is attracting an increasing number of international travellers (see Section 4.6.6) arriving in rented campervans and motorhomes. These visitors have generally come via Newcastle and are following the Pacific Coast Touring Route. Raymond Terrace and Karuah are seeing an increase in the number of vans staying overnight, with these vans coming in late and leaving early. There is also an occasional van at Seaham Business and Work Related Travel Markets Business and work related travel markets are important mid week markets for accommodation in Raymond Terrace. The Raymond Terrace motels draw from: Business travellers to the local area Raymond Terrace CBD and the Heatherbrae industrial estate. Industrial and commercial areas of Tomago and Williamtown, with the RAAF base being a significant generator of room nights. Businesses and institutions in the Mayfield Jesmond Sandgate Hexham corridor, including industrial and business parks, Mater Hospital, St Joseph's Home and the University. Business parks at the end of the F3 Freeway in the Beresfield and Thornton areas. Construction projects in the surrounding region with 'workers' looking for budget to mid range accommodation with access to facilities. Air travellers over nighting in Raymond Terrace before flying out from Newcastle Airport. (Note: Karuah also attracts this market). Raymond Terrace is currently benefiting from the accommodation shortage in Newcastle. Newcastle properties are running at high occupancy rates which is enabling properties, particularly in the CBD, to 43

45 charge premium rates. This has filtered through to the suburban motels, with the motels running at reasonably strong occupancy rates with relatively high tariffs. For business and work related travellers looking for mid range, reasonably priced accommodation the Raymond Terrace Motto Farm Motels are a viable option. The Raymond Terrace motels are dated, and their competitiveness will be eroded by new properties coming into the market in the surrounding area. There are a number of accommodation properties mooted for Newcastle with 4 properties likely to come on line in the CBD, with properties also under construction in Mayfield and Wallsend, with a motel proposed at Stockton. There is also provision for a business class hotel in the Newcastle Airport Business Park. As an emerging regional centre, Raymond Terrace should be looking at options to encourage the development of a business class hotel. Consideration should to be given to producing a dining out and services guide for Raymond Terrace, with this available from the accommodation properties and possibly at the Airport. It is a project that the Business Association could take on. As most business travellers are travelling with internet access on via telephone or lap top, consideration should also be given to having a Raymond Terrace website, with a dining guide available on the site. Business and work related travellers should also be viewed as a potential future holiday / leisure market for the Tomaree and Tilligerry Peninsulas, with promotional material on display in the accommodation properties. Due to distance from the main employment centres, business and work related travel is only a minor market for accommodation on the Tomaree and Tilligerry peninsulas. This is unlikely to change Conference and Meetings Market When the first up market resort properties (Peppers and Horizons) opened in Port Stephens, the area quickly developed a profile as a conference destination, proving very popular for corporate meetings out Sydney and for small, high end conferences, such as professional associations. The Sir Francis Drake Motel at Raymond Terrace also built conference and meeting facilities and was very successful in attracting midmarket conferences and meetings from the surrounding area. Over the past 20 years the competitiveness of the area, particularly at the top end of the market, has been eroded, firstly by the up market resort development in the Pokolbin area and more recently by the quality hotel development in Newcastle. Newcastle City has established a Convention Bureau which has been very successful at marketing the City as a conference and meetings destination. Port Stephens is still attracting a range of smaller meetings, most of which are drawn from the surrounding area. Given the conference and meeting facilities available in the LGA, the area is under performing in this market. The conference and meetings market is discussed in more detail in Chapter Group and Volume Markets Coach Tour Groups Coach tour groups are a mid week market for Port Stephens, with the area attracting both day and overnight tour groups. These groups are a low yield volume market. Coach tour groups can be used by accommodation properties to reduce seasonality and are also a reasonably good market for clubs and as a 'filler' for the marine tour operators. Most of the day tour groups are from the surrounding region and include tours organised by Licensed Clubs, groups such as Probus and View Clubs, groups from nursing homes and retirement villages and 44

46 groups with special needs / disabilities. Some of these groups just picnic and sight see in the area, while some include a visit to Fighter World, and/or a dolphin or whale tour. Some groups take the ferry across to Tea Gardens where they are met by the coach. Overnight groups include both charter groups (ie the coach is charted by a club or organisation) and tours organised by coach companies. This market generally travels mid week outside of school holiday periods. Tours take a number of forms they can be destination based (eg 3 5 days in Port Stephens), inclusion of Port Stephens as part of a longer tour and hub and spoke style tours where the group stays in a central location and undertakes day tours to different locations. A number of coach companies in metropolitan Sydney, on the Central Coast and in regional NSW regularly organise tours. There are also a number of companies that organise and promote tours to the seniors market. In the past Newcastle was popular for hub and spoke style tours, however high accommodation occupancy rates and tariffs has displaced this market. This market now seems to be focussed further north in the Forster Tuncurry area. Raymond Terrace would be an ideal location for hub and spoke style tours, with the town having suitable accommodation, licensed clubs and ready access to a variety of destinations Nelson Bay, Newcastle, Barrington Ranges, Pokolbin vineyards and Maitland Morpeth. Heatherbrae, and to a less extent Karuah, are both popular meal stops for the long haul coach market, with coach tour groups occasionally over nighting in the Raymond Terrace area. Karuah also attracts the occasional coach tour group, generally as part of a combined boat coach tour. One of the ferries /charter boats picks up the coach tour passengers at Karuah and takes them across to Tea Gardens, or sometimes to one of the jetties on the southern shore of Port Stephens (Lemon Tree, Soldiers Point or Nelson Bay) where they are met by the coach. Within the coach tour market, the main opportunities are: Direct marketing to organisations and groups (eg licensed clubs, retirement homes, Councils with community buses, Probus Clubs) within the surrounding region that have access to buses and/or are likely to charter coaches, promoting Port Stephens for day trips and short tours. Target the coach operators that are already bringing tours into the surrounding region seeking to incorporate localities within Port Stephens into their tour itineraries. Direct marketing Port Stephens to coach companies in Sydney, the surrounding region and in regional NSW that organise tour trips. Working with the coach companies from the surrounding region to organise tours to relevant events held in Port Stephens. Encourage a motel in the Raymond Terrace area to investigate the possibility of working with a coach company or one of the tour operators who target the seniors market, to establish a 5 7 day program using Raymond Terrace as a base. Sports Market Port Stephens Council has in place a Sports Tourism Marketing Plan. Council has been targeting non elite sports that have high participation rates. The LGA has an extensive range of quality sporting facilities with the area having the capacity to cater for: Major regional and State carnivals for field sports primarily rugby and soccer Rowing, power boating, water skiing and wakeboarding competitions on the Hunter and Williams Rivers at Raymond Terrace Sailing (smaller classes) at Grahamstown Dam as well as sailing on the Bay. Horse sports in the Raymond Terrace area. Marine sports Port Stephens 45

47 Golf tournaments Bowls tournaments Raymond Terrace, Tomaree and Tillegerry Peninsulas Tennis tournaments Raymond Terrace Surf events surfing, paddling, surf life saving There is also potential to hold long distance and endurance events, such as marathons. Opportunities to build sports related tourism include: Growing existing sporting events. Working with local sporting clubs and groups to bid to host carnivals and sports development programs. Targeting sporting associations (regional, state and national) and the Hunter Academy of Sport to hold carnivals, sports development programs, camps and clinics in Port Stephens. Developing tournament / competition circuits to capitalise on other events in the region. For example, linking the main golf events in the sub region, to encourage competitors to stay in the region and compete in a number of events. Packaging sporting activities for promotion to external clubs. Golf and bowls are ideal for packaging, however their may be opportunities for other sports. Targeting 'foot loose' sporting events that could be hosted in Port Stephens these could include triathlons, marathons, long distance cycle races etc. Target the pre trip training camp for sporting teams flying out of Newcastle Airport. The sporting event market is discussed in Chapter 7. School Excursions The school excursion market is a small market for Port Stephens, with most of the attractions and activities available in the area not directly relevant to the curriculum. This will change as the Murrook Cultural Centre develops, with the Centre having the potential to become popular with the school market. The Tailor Made Barramundi Farm will also be ideal for the school excursion market. The school excursion market is becoming increasing difficult to attract. Over the past decade the number of excursions undertaken has declined. The decline is attributed to a combination of factors including the requirement for teachers to prepare and submit risk assessments for every excursion, rising costs with excursions becoming too expensive, increased teacher work loads and increasing pressure for secondary students not to miss classes. The challenge with this market lies in packaging and selling 'excursion programs'. The school market is very time consuming to target. Schools are 'bombarded' with fliers and promotional material from areas trying to attract excursions. The most effective way of attracting the market is to visit the schools and talk to the teachers. The number of sales calls that can be done in a day is limited. In addition, teachers need to visit the area prior to the excursion (Departmental policy) and prepare risk assessments. Given the level of competition for the school excursion market, Port Stephens would need to tailor its promotions to the specific needs of this market including: Ensuring that the attractions and activities that are promoted meet curriculum needs and are pitched at the right level for school students. 46

48 Making it 'easier' for the teachers, with operators preparing a risk assessment to Departmental standards Hosting the pre excursion trips made by teachers to the area. Having a page on the Port Stephens Tourism website designed for the education market. Car Clubs Car clubs are currently a very small market for Port Stephens LGA. Lemon Tree Passage hosts the Tilligerry Motorama which brings car clubs into the area. The car club market is potentially large. There are over 3,000 registered car clubs in Australia, with clubs including vintage, veteran, classic and custom car clubs, model based clubs (eg Austin Club), locality based clubs and activity based clubs. In NSW alone there are 216 clubs (26,000) members of the Australian Historic Motor Federation, and 234 member clubs of the Classic Car Club of Australia. Car Clubs have a strong social focus, with people essentially getting together to have a good time with their cars. Activities undertaken by clubs include: Day trips and tours Rallies Shine Show Expos Swap Meets Events hire a venue and organises races, skills competitions etc Scavenger hunts and navigational challenges Sub groups within the clubs also organise activities amongst themselves; for example, a group of 8 10 may organise a weekend away, which is independent of the club s official trip program, but is still covered by the club s insurance. Most clubs set up a tour subcommittee to develop the tour program for the year. Destinations are generally determined 12 to 18 months in advance. Tours are typically designed in two main formats: Meet at a specified location and then tour as a group to the destination. The tour to and from the destination forms part of the organised trip itinerary. Meet at the destination, with activities and trips organised from this base. Within Port Stephens LGA, Raymond Terrace is an ideal location for the latter type of trip. Raymond Terrace as a base, is easy to access. The network of rural roads in the western area of the Shire, linking through to Maitland, Dungog and Stroud Gloucester are ideal for car club activities. These roads have low traffic volumes and minimal truck traffic and traverse very scenically attractive country side. There are a number of destinations and attractions that will also appeal to this market Morpeth, Victoria Hotel at Hinton, Paterson, wineries and Hotel at Gresford, the picnic area and historic pub at Clarence Town and the lagoon at Seaham. In addition, there is the opportunity to take a run to Nelson Bay, Newcastle and/or the Pokolbin area Special Interest & Activity Based Markets Port Stephens attracts a range of overnight visitors and day trippers who come into the area to pursue a specific interest of undertake an activity. The larger of these visitor markets include: Water skiers and wake boarders Anglers recreation, sports and game fishing 47

49 Boating enthusiasts 4WD clubs and enthusiasts Surfers Golfers Water Skiers & Wake Boarders The water skiing and wake boarding enthusiasts are a weekend market for Raymond Terrace and to a lesser extent Seaham, with most visitors being day trippers. Until 2006, the Williams River was the focal point for water skiing and wake boarding in the Lower Hunter Region, with activities undertaken on the River at Clarence Town, Seaham and Raymond Terrace. The area attracted skiers mainly from the Hunter Valley and Central Coast, with the occasional ski boat from Sydney and the Taree area. As a result of bank erosion, speed limits and no wake zones have been introduced at various locations along the River. This has focused tow activities at Raymond Terrace. Congestion is emerging as a significant issue. The Waterways Authority has advised that it would like to see power boating and tow activities relocated elsewhere, in particular wake boarding which the Authority does not consider sustainable given the condition of the river banks. If Tillegra Dam proceeds, the Waterways Authority has indicated it would be ideal for the relocation of these activities off the Williams River. Competitive water skiing and water ski training on the Williams River have already been scaled back. A tournament training site has been developed at Myuna Bay on Lake Macquarie, with most training programs now undertaken at this site. Water ski clubs in the area tend to use Myuna Bay more so than the Williams River. Given the above factors, the opportunity to build this market appears limited. In the short to medium terms, there may be potential to host a high profile ski / wake board event or target State or National titles. Fishing Port Stephens is an established fishing destination, which is widely known amongst both dedicated anglers and the recreational fishing market. The area offers a range of fishing environments and experiences blue water game fishing, reef, bay, estuary, river, rock and beach fishing, and has a well developed charter boat and charter fishing sector. Port Stephens has two major fishing tournaments each year as well as a number of smaller competitions. The fishing markets attracted to the area include: Hard core, dedicated anglers either bringing their own boats to the area or going out on the game and sports fishing charter boats. Tournament competitors coming into Port Stephens to compete. Fishing clubs most fishing clubs have a program of social and competitive fishing trips, most of which are held on weekends. While traditionally these have been 'male only' trips, clubs have begun to include a number of family trips as part of their annual calendar. Most family trips involve camping. Due to their proximity to boat ramps, Soldiers Point and Halifax Caravan Parks are popular with the fishing club market. Social groups groups of friends (generally fishing enthusiasts) who go away together on fishing trips. The priorities are generally fishing and drinking. Trips are flexible they may charter a fishing boat, take their own boats or go beach fishing. Stockton Beach is popular with groups looking to camp, fish off the beach and party. 48

50 Families visiting the area to fish, or participating in fishing as one of the activities undertaken while in the area. Some bring boats, with others go rock and/or beach fishing. The emphasis is more on spending time together and having fun rather than catching a fish. Retirees often a couple or a few 'mates' who put the boat in for a fish. The boat ramps at Karuah and Lemon Tree Passage are popular with retirees and the recreational fishing market from the Hunter region as they are quicker to access than the Tomaree Peninsula ramps and are generally less congested. With the improvements to the Karuah ramp, there is opportunity to grow this market and take pressure off the ramps on the Tomaree Peninsula. The National Recreational and Indigenous Fishing Survey undertaken in 2001 estimated that there were just under 1 million active anglers in NSW, with almost half (48.3%) residing in the Sydney region. The Hunter ranked next with 13.8% of anglers (131,350) followed by the Mid North Coast with 7.5% (74,500). Around 5.6% of anglers in NSW belonged to fishing clubs, with around 5% of anglers participating regularly in tournaments. There is opportunity to build the fishing market to the area. 4WD The Stockton Sand Dunes are a popular attraction for 4WD enthusiasts, with the dunes known nationally amongst the 4WD community. The 4WD markets attracted to the area include: Hard core 4 WD enthusiasts looking for 'excitement' on the dunes and beach. 4WD clubs with Stockton popular for camping trips and also to 'teach' beach and dune driving, often as a precursor to a long haul trip through Central Australia or to Fraser Island. Beginners Owners of 4WD and 'soft roaders' who want to try their vehicle off road and experience the 'freedom' of driving along a beach. Outdoor recreationalists using their vehicle to access the beach, for fishing, surfing etc. There is an increasing number of visitors bring quad bikes into the area. There are a number of 4WD tour and Tag Along operators servicing the dunes with these operators primarily targeting the beginners market. These operators promote 'responsible' use of the area. The 4WD clubs also promote responsible use of the area. Most clubs have a 'tread lightly' policy and are aware that continued access to the area is largely dependent on behaviour and the impact on the environment. There are eighty 4WD Clubs in NSW registered with 4WD NSW. Of these, 36 clubs are Sydney based, with 12 clubs in the Hunter, 4 on the Central Coast and 1 in Tamworth. Club membership is dominated by families, followed by 'empty nesters'. Most Clubs organise at least one trip per month, with the larger clubs offering at least one trip per week. The trip calendar is generally set months ahead. In addition, Club members can organise trips amongst themselves, with these trips then registered with the Club for insurance purposes. Trip programs typically include a mix of extended trips (eg Simpson Desert), shorter trips (up to 14 days), weekend/short breaks (2 4 days) and day trips, with trips graded in terms of difficulty. The number of vehicles participating on a trip is usually capped, with 6 10 vehicles for a difficult trip with 'tight' trails and up to 30 vehicles for 'easy' trips. Camping is the preferred form of accommodation, although not the only form of accommodation used. The Hunter Region is popular for 4WD trips, with Clubs in Sydney, Central Coast and Hunter Region organising both day trips and 2 3 day touring trips to the Region. In addition to the Stockton dunes, the other high profile 4WD areas in the area are: Barrington Tops with the Barrington Trail considered a 'must do' trail. Chichester State Forest 49

51 Massey Creek State Forest the Newcastle 4WD Club has a 4WD park in the Forest Watagans National Park and surrounding State Forests While there is potential to grow the 4WD market, the future of 4 wheel driving in the area needs to be determined before proceeding. If access is to be limited, the priority should be given to licensed 4WD and tag along tour operators, followed by the 4WD clubs. Boating Boating is one of the main activities undertaken in Port Stephens LGA, with the area being popular for a range of recreational and competitive activities. Recreational boating accounts for around 90% of the market. The Port offers a spectacularly attractive safe boating environment with good support infrastructure. Boating is also popular on the Williams and Hunter Rivers at Raymond Terrace, with sailing undertaken both in the Port and on the Grahamstown Dam (small classes). Boating markets attracted to Port Stephens LGA include: Marina markets boat that are moored permanently at marinas many of these boats are owned by residents from outside of the LGA primarily from the Hunter, Central Coast and Sydney. Owners, often accompanied by families and friends are a regular market for the area. Cruising market ocean going yachts and cruisers that call into Port Stephens as part of tour along the east coast. This is a transient market that uses temporary marina berths and moorings. The 'long term' live aboard market is a generally a low yield market preferring to stay on their boat and occasionally dine out and/or visit a club or pub. In contrast the higher end crewed boats tend to be more 'party boats' for the owner and their friends and relatives, and as such can make a significant contribution to the local economy, particularly if guests stay in onshore accommodation and just go out on the boat during the day. Tournament market boats coming into Port Stephens to compete in events such as 'Sail Port Stephens' and the trailer boat fishing competition. Recreational boating trailer boats this is the bulk of the boating market and includes day trippers and holiday makers who launch their boats at the various ramps throughout the LGA. Activities undertaken by this market include cruising / sight seeing, tow activities (biscuits, water skiing, wake boarding etc) and fishing. Sailing both competitive and recreational. The Grahamstown Sailing & Aquatic Club operates sailing on the Grahamstown Dam. The Club is primarily involved in a 'Sailability' Program which provides an introduction to sailing for people of all abilities, specialising in sailing for the disabled. From Wednesday to Friday the Club runs sailing classes for schools and special needs groups, with sailing competitions on Saturday mornings. The Club also runs sailing programs during school holidays. Visitors can bring their own sailing boat to the Dam, however the boats have to be inspected by Club Officials before they can be launched. The up grading of boat ramps throughout the LGA will improve safety and reduce congestion. In peak times, the boat ramps on the Tomaree Peninsula become very congested with holiday makers competing with locals and day trippers for access and parking. A considerable proportion of day trippers come from the Hunter and Central Coast areas and, with the upgrading of the Karuah ramp and improvements in facilities at Lemon Tree Passage, there is potential to encourage day trippers to use these ramps (which are quicker to access), to take pressure off the Tomaree Peninsula ramps. There is potential to develop a boat 'touring' route around the bay, encouraging boaters to call in at various locations Soldiers Point, Lemon Tree Passage, Karuah etc. There is also potential to promote the Williams and Hunter Rivers to holiday makers with trailer boats who are staying in the coastal 50

52 destinations, to encourage them to take the boat across to Raymond Terrace for the day and explore the Williams and Hunter Rivers. Surfing Port Stephens has number of surf beaches and breaks (Zenith, Box Beach, Fly Roads, Samurai, One Mile, Birubi and Stockton) that are well known amongst the surfing community. These breaks are featured in directories such as Wave Finder. While the area primarily attracts surfers from the local area and Lower Hunter, it does draw from further afield if the surf is 'pumping'. Surf tour companies that operate along the NSW coast occasionally surf the Port Stephens breaks, generally on route north from Newcastle. Tourism NSW has recently released its 'Surf Tourism Action Plan' for NSW. The Plan aims to consolidate and grow surf travel, surf events and surf based activities (eg learn to surf schools) over the next 3 years. The Plan has identified an evolving 'surf route' that links Newcastle, Port Macquarie, Coffs Harbour and Byron Bay, and is looking to 'formalise' this route and position it as a 'must do' route for hard core and recreational surfers, targeting both the domestic and international markets. Port Stephens should seek to be included on this route, with the Port Stephens 'product' incorporating the variety of surfing breaks, the Stockton Dune adventure based activities and the back packer accommodation in the Anna Bay One Mile Beach area. The Action Plan also looks to build on the Merewether Beach National Surf Reserve and the Surfest tournament in Newcastle and the Australian Surfing Festival In Port Macquarie. Advice should be sought on whether any of the surf breaks in Port Stephens are possible candidates for inclusion in a surf reserve. Consideration should also be given to how to promote Port Stephens at surfing tournaments and carnivals in the surrounding regions. Events Port Stephens is looking at options for a surf event in the area and, given the interest by TNSW in this market, it may be an opportune time to proceed with this. TNSW has launched ' as a guide to surfing destinations in NSW. Fingal Beach is the only beach in Port Stephens featured on the site. Rather than positioning the Beach for dedicated surfers, it is promoted as a family beach and 'nipper haven', both of which are instant 'turn offs' to the surfing market. This needs to be addressed, with the information 'revamped' to pitch the surf breaks in the area to the dedicated surfing market, as well as provide information on the accommodation in the area and adventure based tour activities. Golf Port Stephens is well known amongst golfers for its four quality courses (Nelson Bay, Pacific Dunes, Horizons and Newcastle), with golfers coming into the LGA to play and compete in tournaments. Events The events held in Port Stephens bring more than 50,000 visitors per annum into the LGA. Events are discussed in Chapter 8. 51

53 4.6.6 International The number of international visitors staying overnight in Port Stephens is very low, estimated at around 27,000 visitors per annum (4.2% of visitors who stay one or more nights in the LGA). The market includes: FIT self drive visitors who have hired cars / campervans and are exploring the region. There is a small, but increasing number of international visitors who are following the Pacific Coast Touring Route. The majority of these visitors are from the UK and Europe. Back packers generally those who have acquired a car. Most have come out of Newcastle and are travelling north. The majority of back packer are from the UK and Europe. Groups a couple of the accommodation properties have built a small Korean market that stays overnight in the area. With the travel scandals in Korea followed by the GFC, this market has virtually collapsed. VFR Business travel associated with the Defence and aerospace industries. Port Stephens has been successful in building the Asian day trip group markets. In the mid 1990's the Japanese market dominated, with this then replaced by the Korean market. There was also growth in groups coming out of Singapore and, to a lesser extent, Malaysia and Taiwan. The scandal in Korea coupled with the SARS impacted significantly on the Asian market. The growth in low cost air services in Asia (Air Asia) has also significantly impacted on travel patterns. China is currently the main growth market for the day trip groups. There has also been growth in the Indian market, however this market is being impacted on by the negative publicity generated in India by the recent spate of attacks on Indian students. 4.7 Directions Forward Domestic Market Continue to focus on Sydney as the main source market. Explore options for increasing visitation form the intrastate market that is readily accessible to Port Stephens Central Coast, Hunter Region, as well as Central NSW (Dubbo and Mudgee areas), Gunnedah Basin, Tamworth and Armidale area. Where relevant, work with Thunderbolts Way and Golden Highway committees. Establish a marketing alliance with the Newcastle Convention Bureau to grow business event tourism to the sub region. Capitalise on the opportunities afforded by Newcastle Airport for access to new markets aligning interstate marketing to the routes being opened up by Newcastle and also positioning the area to attract national conferences and meetings and sporting events. Build the special interest and activity based markets, to reduce the dependence on the seasonal holiday maker. Continue to develop sporting and event based markets. Work with the smaller localities to develop day trip markets from with Port Stephens and the surrounding region. 52

54 International Market Market to ethnic communities within Australia (eg Indian and Chinese communities) to tap into the international VFR market. Continue to develop international markets to support those operators with a strong international business base. Align international marketing to international routes being opened up by Newcastle Airport. Continue to support the Pacific Coast Touring Route. 53

55 5. ATTRACTION & ACTIVITY BASE The attraction base and the activities that can be undertaken form the backbone of the tourism industry. Attractions and activities have a major influence on trip behaviour, providing a reason for visiting an area and/or in encouraging people to stay longer. Attractions can be broadly classified as: Iconic Attractions High profile attractions and activities that draw visitors into the area, including attractions/activities the tourist makes the purpose of their trip (anchors) and attractions/activities that tourists perceive that they 'must see' when in the area. Local Attractions These are the 'filler' attractions that people may visit or participate in while they are in the area. They play no or a minimal role in the decision to visit the area. The propensity to visit attractions depends on the type and purpose of the trip. Through traffic (transit market), particularly repeat visitors, have a lower propensity to visit attractions than the touring and destination markets. The transit market generally has a limited time frame and tends to 'program' visits to attractions into their trip itinerary. They are more likely to visit the higher profile attractions or attractions that they have a specific interest in. These travellers are less likely to deviate from their route. For this market, the attractions in Port Stephens are competing with other locations within the North Coast and Hunter Regions and along the Pacific Highway corridor. A decision to visit will come down to whether the traveller perceives the attractions / activities offered by Port Stephens are sufficiently unique or 'superior' to warrant the 100km round trip off the Highway. The decision on whether or not to visit the coastal areas of Port Stephens is likely to be made at the trip planning stage indicating the importance of a motivational website. Touring travellers generally allow more time to explore an area and are interested in the range of attractions and activities on offer. This market has a stronger likelihood of setting up a 'base' to explore the surrounding area. The coach tour and school excursion markets have a very high propensity to visit attractions. The attractions are however incorporated into the trip itinerary at the trip planning stage, with the itinerary being relatively inflexible. There is no 'impulse' visitation to local attractions. The propensity of destination based visitors to visit attractions depends primarily on their reason for visiting the area and the amount of 'free' time that they have and the weather conditions they are experiencing. Business travellers, for example, are less likely to visit attractions than holiday markets and people visiting friends and relatives (VFR). Cost will also be an issue. As one indoor attraction commented, sunshine is my main competitor, when it is cloudy or wet, my numbers increase. 5.1 Regional Attractions An Overview The attraction and activity base in Port Stephens needs to be considered in the context of the attraction base of the surrounding region. In particular, how the products, activities and experiences offered in Port Stephens: Complement and strengthen other attractions in the region. Compare to other parts of the region are they competitive. Differentiates the LGA from other parts of the region. North Coast The higher profile attractions within the North Coast Region, and the activities and images strongly associated with the Region include: 54

56 Attractions Beaches & waterways National Parks Rivers & rural hinterlands Activities: Beach activities Surfing Fishing Boating Touring / exploring Images: Beaches, headlands, spectacular coastal scenery National Parks Marinas, yachts, boats Soft adventure activities water and land based Marine animals corals, fish, whales / scuba divers / snorkelling Sunrise at the beach Alfresco dining / sea food / cocktails by the beach Resorts coastal living Wildlife typically koalas Shopping boutiques & lifestyle Visitation within the North Coast Region is strongly oriented towards coastal destinations with the beaches and the waterways being the main attractions. Many of the coastal activities and experiences offered by Port Stephens are available in other coastal localities. Touring and sight seeing are popular, with trips to other coastal towns and villages, into the hinterland areas and to National Parks. Port Stephens does not have the depth of National Park, rural and hinterland product offered by the other LGA s within the North Coast region. Port Stephens main points of difference are: Stockton Sand Dunes and the activities that can be undertake on the dunes. The quad bike tours have a very high profile in the market place. Port Stephens shear size and beauty of the waterway (Great Lakes shares the waterway). 'Dolphin Capital of Australia resident dolphin pod / dolphin watching. (also promoted by Great Lakes, further north Yamba and Iluka promote their resident dolphin pod). Hunter The Hunter Region is very strongly associated with wine, with vineyards, wineries and wining and dining dominating the promotional material. Other attractions and images that are identified with the Region include: Barrington Tops Newcastle / Hunter Foreshore and Newcastle Coast / Nobbys Fine dining / fireside dining Fresh produce / harvest produce Rural scenery / horse riding Heritage often Morpeth or Maitland 55

57 Port Stephens complements rather than duplicates the product base of the Hunter offering pristine waterways and a range of soft adventure and water based activities. 5.2 Attraction & Activity Base of Port Stephens Existing Attractions The main attraction of Port Stephens is the spectacular bay and coastal scenery the Blue Water Paradise the white sandy beaches and the aqua blue, crystal clear waters. Port Stephens is approximately 2.5 times the size of Sydney Harbour, extending from the entrance at Tomaree, 24 kilometres inland to the mouth of the Karuah River. Consumers primarily perceive the Tomaree Peninsula to be 'Port Stephens' with the area known for its beaches, marinas, bottle nosed dolphins, fishing and sand dunes. The Tomaree Peninsula has welldeveloped marine cruise and soft adventure based tour sectors that provide access to the natural environment. Consumer awareness of the Tilligerry Peninsula is significantly lower, with koalas being the main attraction associated with this area. Karuah is known for its oysters. Raymond Terrace is not associated with any particular attraction or activity, being known primarily because of its location on the Highway. The attractions and activities available in the Port Stephens are summarised in the following Tables. Table 5.1 Main Attractions by Locality Locality Port Stephens (waterbody) Nelson Bay Shoal Bay Corlette Fingal Bay Salamander Bay Soldiers Point Anna Bay One Mile Boat Harbour Bobs Farm Attractions Scenery beauty of the Bay / blue clear waters. Port Stephens Great Lakes Marine Park Cruise & Charter Operators Ferry to Tea Gardens Marine Life Dolphin, Whales, Turtles Off Shore Islands / Gould s Petrel Tomaree National Park Tomaree Lookout, Walking Tracks, Heritage Bay Beaches Sandy Point, Bagnalls, Dutchman s Bay, Nelson Bay, Little Beach, Shoal Bay Ocean Beaches Zenith, Wreck, Box, Fly Rods Inner Light House Cottage & Tea Rooms Shopping Nelson Bay, Shoal Bay, Salamander Bay Marinas d Albora Nelson Bay, Anchorage Corlette Native Flora Gardens Fly Point Gan Gan Look Out Toboggan Hill Park Community Arts Centre Fingal Beach Tomaree National Park Fingal Island Bay Beaches Sunset, Wanda, Soldiers Point Marina Holberts Oyster Farm Stockton Sand Dunes / Worimi Conservation Lands Sygna Shipwreck Ocean Beaches Samurai, One Mile, Birubi, Stockton Tomaree National Park Boat Harbour David Grahams Golf Complex Sahara Horse Trails Wonganella Winery Murray s Brewery and Port Stephens Winery Australian Shark & Ray Centre Farm Gate produce outlets Nelson Bay Go Karts 56

58 Salt Ash Medowie Tilligerry Peninsula Williamtown Raymond Terrace Heatherbrae Tomago Karuah Seaham Hinton Dizzyland Oakvale Farm & Fauna World Medowie Macadamias Farm gate produce outlets Tilligerry Habitat Centre Koalas Tanilba House Lemon Tree Passage Marina Lemon Tree Passage Lookout Mangrove Board Walk & Tilligerry Koala Walk Fighter World Museum / RAAF Base Murrook Cultural Centre / Djapa Bush Tucker Monarch Historical Museum Grahamtown Dam Shopping sub regional centre Riverside Park / Roalyn Park Hunter Region Botanic Gardens Port Stephens Art Gallery (Council Chambers) Slab Cottage Museum Tomago House & Chapel Oyster Farms Oyster sales Karuah River Seaham Swamp Nature Reserve, Bird Hide, Seaham Park, Tom's Cottage Water Bird Hot Spot Williams River Historic Pub Riverside Park & Jetty Historic Cemetery Historic oval Table 5.2 Activities that can be undertaken in Part Stephens Activity Whale & Dolphin Watching Surfing Boating Jet Skis / Jet Boats Sailing Fishing Diving Parasailing / Wind Sports Water skiing / Wakeboard Kayaking Sand Boarding 4WD Tours 4WD FIT Quad Bikes Horse Riding Camel Rides Go Karting Skirmish Cycling Location / Product / Service 7 cruise operators Ocean Beaches Two surf schools / board hire Port Stephens, Karuah River, Ocean Boat hires & charters Marinas Raymond Terrace Hunter & William Rivers Jet Boat Operator Jet Ski Hire Port Stephens Grahamtown Dam Game, Sports, Boat, Reef, Estuarine, Rock, Shore Fishing Charters, Guides & Tuition Marine Park Dive Operators Pro Dive, Feet First Dive Parasailing Wind Surfing, Wave Surfing, Kite Boarding Williams / Hunter Rivers Port Stephens sea kayaking Stockton Sand Dunes Tours Stockton Beach & Dunes Escorted, Tag a Long, Safaris Stockton Beach & Sand Dunes, Karuah State Forest Stockton Sand Dunes FIT Tours Stockton Sand Dunes Sahara Trails, Rambling Sands Oakfield Ranch Port Stephens Go Karts Laser Skirmish Cycle ways / Bicycle hire 57

59 Golf Nelson Bay Golf Club, Le Meilleur Horizons, Pacific Dunes, Newcastle Lemon Tree Passage, Raymond Terrace David Graham s Golf Complex Bowls Nelson Bay, Soldiers Point, Lemon Tree Passage, Raymond Terrace, Fingal Bay Bowling Salamander Super Strike, Raymond Terrace Walking Trails Tomaree Headland Tilligerry Habitat, Tilligerry Koala Walk, Mangrove Board Walk Food & Wine Brewery, Wineries (3) Oysters Salamander Bay & Karuah Medowie Macadamias Farm Gate outlets mushrooms, figs, avocado, fruit & vegetables Farm Gate Outlets Bobs Farm, Salt Ash, Medowie Koala Viewing Oakvale Farm, Tilligerry Habitat Centre, Tilligerry Koala Walk Pampering Spa & beauty treatments New Attractions / Changes to Existing Attractions New attractions being developed or proposed for Port Stephens include: Tailor Made Fish Farms Tailor Made Fish Farms is a commercial aquaculture enterprise located near the Australian Shark and Ray Centre at Bob's Farm. Tailor Made specialises in Barramundi farming and has developed an integrated farming system which incorporates hydroponic vegetable crops as a byproduct. The Farm is operational and supplies fish to the Sydney restaurant market. The operator is in the process of building a visitor interpretative centre and will be conducting farm tours. The Farm will be open to the public, and will be specifically targeting groups and school excursions. A retired teacher has been employed to develop and service the education market. Fresh fish will be available for sale at the visitors centre, with the centre also having a small eatery specialising in fish and chips. The Farm is expected to open to the public in early This is expected to be a quality attraction for the area. Murrook Cultural Centre At present, the Murrook Cultural Centres offers indigenous cultural activities for pre booked groups. The Centre has found it difficult to accommodate FIT visitors as it does not always have the staff on site to demonstrate spear and boomerang throwing. The Centre is considering the feasibility of having staff with these skills employed on weekends, to provide activities for the day trip and visitor markets. Murrook is proposing to introduce an entertainment and events program. The gardens surrounding the Centre are also to be developed as an attraction and will feature bush tucker and healing plants. The on going development of the Centre is subject to funding. Worimi Sand Dune Tours the Worimi Land Council owns part of the high dune area at Stockton Beach. The entrance to this area is very close to Murrook. The Worimi Land Council has established a company to operate the Sand Dune Tours, with the company to operate out of Murrook (separate shed adjacent to the café). The Tour company has acquired a Hummer for 4WD tours and quad bikes. A quad bike sand dune tour program is being developed, with the tour to incorporate an interpretive tour with talks at key sites followed by 'free riding' on the dunes before returning to Murrook. The tour company is proposing to target the cruise ship market out of Newcastle, picking up guests in the Hummer and bringing them to Murrook. While Murrook and the Sand Dune Tours are separate businesses, they need to be positioned as an integrated product in the marketplace. Cultural / Arts Trail Council's Cultural Officer is exploring options to develop a cultural / arts trail in the LGA. 58

60 5.3 Issues The main issues with the attraction sector are: Poor presentation of key attractions. National Park / State Conservation Area product limited and not well presented. The future of the tour sector. Imbalance between commercial and 'free' products and activities and limited development and management of non commercial assets and activities. Standard of the commercial attractions. Directions forward for the Marine Park These issues are discussed below. Presentation of the Key Attractions Port Stephens three highest profile attractions are Birubi Beach Stockton sand dunes, Tomaree Headland and the Nelson Bay Boat Harbour and foreshore area, with most visitors to the area visiting these areas at some stage during their stay. All international and domestic tour groups visit the Nelson Bay Boat Harbour area with a high proportion of international visitors also taking sand dune tours. The Birubi Beach car park is often the first introduction to Port Stephens for international visitors. There are plans prepared for upgrading the Nelson Bay Foreshore area. The presentation of the Biribu Beach area and foreshore reserve on the Tomaree Headland is very poor, with the problems being: Birubi Beach / Stockton Sand Dunes There is no sense of arrival, in the area, with the Gan Gan Road corridor (from Nelson Bay Road to James Paterson Street) not being particularly attractive. There is no signage at the turnoff for the dunes. The access to the area is via a residential street that is narrow and not particularly attractive. It does not have the capacity to accommodate coaches and the volume of traffic generated at peak times. This issue is being addressed with access for tour groups being relocated. Land degradation along the access road and around the car park and surf club areas, with areas of severe erosion and weed infestation. Graffiti, vandalism and litter. The surf club is building is old and presents very poorly, with limited facilities for visitors. The external showers are not well maintained, with algal growth on the walls. Picnic furniture is in poor condition and due for replacement. 59

61 60

62 Tomaree Headland Reserve The Reserve extends along the foreshore from the end of the Shoal Bay urban area to the entrance to Tomaree Lodge. The access road to the Headland runs through the middle of the reserve. Along its southern side, the reserve abuts the Tomaree National Park. Erosion along the side of the road, around the boat ramp and the picnic facilities. In a couple of places, the soil has been washed out from under the concrete slabs, with the slabs being suspended. This is potentially an OH&S issue. Picnic facilities, fencing and toilets are all in poor condition and need to be replaced. The toilet block is very prominently located with the block having been vandalised. Litter and rubbish the area is used for a dumping ground, with the rubbish sometimes staying for days before it is cleaned up. Weed infestation. Limited parking. The parking area is not sealed or marked, with visitor parking haphazardly, particularly in peak times. Coaches, particularly the large coaches, find it difficult to turn around. The management of both areas has been neglected for decades. The Birubi Stockton Bight area has been 'on hold' for a number of years while the ownership of the area was resolved. Ownership of large sections of Stockton Bight has now been transferred to the Worimi Local Aboriginal Land Council, with much of the area now incorporated in the 'Worimi Conservation Lands'. The Worimi Conservation Lands include the Worimi National Park, Worimi State Conservation Area and the Worimi Regional Park. Part of the area has been designated for recreational vehicle use. Parts of the Worimi Conservation Lands have recently been leased to National Parks (DECCC), with National Parks to manage the land on behalf of the Worimi. There are a number of parcels of land at the eastern end of the Bight, around the surf club and along Gan Gan Road that remain vested in the Crown, with Council being the Trustee for the area around the surf club. Council is proposing to redevelop the Club House. The Department of Lands has also called for expressions of interest from developers for a parcel of crown land on the western side of Gan Gan Road, that abuts the Worimi Lands. There appears to be minimal communication between National Parks, Council and the Department of Lands, with the agencies acting independently. This approach is not likely to deliver the best outcome for the area. The Stockton Bight is one of the few areas in close proximity to Sydney that has the potential to become a world class attraction. To achieve this, the area will need quality visitor facilities as well as quality tour and activity based product. An integrated plan and shared vision for the area is required with this involving all participating agencies and landowners. 61

63 Land tenure is also the part of the problem on the Tomaree Peninsula, with the reserve being Crown Land, that is being managed by Council. A joint approach, and access to funds are needed to resolve access and parking issues and upgrade the presentation of the area. National Parks and Conservation Areas Significant tracts of land in Port Stephens are under the control of the Department of Environment, Climate Change and Water (National Parks). These areas include: Tomaree National Park 'Worimi Conservation Lands Tilligerry State Conservation Area Medowie State Conservation Area Karuah State Conservation Area The Tilligerry SCA is managed to protect water resources and is closed to the public. There are limited visitors facilities in the Tomaree National Park with no facilities in the Medowie or Karuah State Conservation Areas. Tomaree National Park incorporates much of the Tomaree Headland and extends south along the coast to Birubi Point. Visitor facilities in the Park are limited. Walking trails, interpretation and a lookout has been developed on the Tomaree Headland, with the walking trails being used by over 100,000 visitors per year. Vehicle access is available to Box Beach. Other than a few information shelters, there are no visitor facilities in other areas of the Park. Access has been very limited, a legacy from Hunter Water not wanting any disturbance of wetlands or aquifers in the area. National Parks have funding to develop walking trails in the Park over the next 2 3 years. From a tourism perspective the Park has the potential to be a very significant attraction for Port Stephens and the surrounding region. With its spectacular coastal scenery it would be an ideal location for a coastal walk. Both ends of the National Park can be accessed by public transport and there is camping and other accommodation available at One Mile Beach. The development of the walk would also provide the opportunity for short walks for visitors accessing the Park locations along the coast Fingal, One Mile, Boat Harbour, Fisherman's Bay. A number of the headlands in the Park are very popular with visitors for whale watching. A designated whale watching area, similar to that provided by National Parks at Kurnell, would strengthen the whale watching product in the area. There is also significant opportunity to provide tour product to Fingal Island. Consideration should also be given to providing a number of short walking trails in the Tilligerry State Conservation Area. There are a number of areas adjacent to Lemon Tree Passage Road that would be ideal for a board walk to interpret the wetlands. There are also a number of areas where there are prolific wildflowers in spring that could also be show cased to visitors. Short, interpretative walking trails in this Park would complement and strengthen the habitat product already available in the area. These actions would have no impact on the wetlands or aquifers in the area. The Future of the Tour Sector Tours. cruises and charter operations form a significant part of the attraction and activity base of Port Stephens. This sector in Port Stephens is well developed, with Port Stephens possibly having the largest number of tour operators of any destination outside of Sydney. The positioning, marketing and promotion of Port Stephens is highly geared towards tour and activity based products and experiences. This is a potential risk for the destination. The operating environment for tour operators is far more difficult than for accommodation operators, with the sector being more exposed to economic conditions and to the effectiveness of the marketing and 62

64 promotion undertaken. The market available for tours is relatively limited, with not all visitors taking tours. First time visitors are more likely to take a tour, than repeat visitors. Due to cost, visitors may only decide to undertake one tour / activity during their stay. Other than for activities such as diving, fishing and golf, repeat patronage is generally low. As such, the type of visitor attracted to the area is important. If the area targets markets that have a lower propensity to participate in tour activities, then the tour operators suffer. For accommodation operators, repeat, longer stay visitors are the most cost effective market to target. In contrast most tour operators need a high turnover of first time visitors. The different needs of the two sectors are a factor in the tension relating to the marketing directions and priorities of PSTL. Most of the tour operators are dependent on access to either the Stockton Sand Dunes or the Marine Park. Both assets are managed by Agencies for which tourism is not a core activity. A moratorium is already in place on licenses to operate in the Worimi Conservation Lands, until the Plan of Management is completed. It is highly likely that the Plan of Management will limit the number and type of operations, and that the licenses will be tendered. Adventure based activities without some form of education interpretative component may not be approved. At this stage, there are no restriction on the number of permits issued by the MPA, however if the tour activities are shown to be having a negative impact on the habitat or the marine life, caps or restrictions could be introduced. It is important that operators adopt environmentally sustainable practices and work closely with the MPA to achieve the best outcomes for the area. There is also a planning issue that has the potential to have significant impacts on the marine tour operators. It is understood that while Council requires marine tour operators to have development approval, the need for a DA is disputed by operators. It appears that only one of the operators has sought DA approval. If operators are deemed to be operating 'illegally' then they will not be able to apply for a MPA permit. This issue needs to be resolved. There are reportedly operators who are interested in setting up tour and activity based marine businesses in Port Stephens however are reluctant to make an investment while the matter remains unresolved. Imbalance between Commercial and 'Free' Activities The information available on Port Stephens and the marketing and promotion is focused on member businesses and driven by commissionable product. The website is almost completely devoted to commercial activities and attractions. This needs to be balanced with information on non commercial activities that can be undertaken bushwalking, cycling, snorkelling, touring / sight seeing, picnicking etc. The non commercial activities available in the LGA need to be developed and promoted. This should be part of the product development and destination management role of the Tourism Unit. Standard of the Commercial Attractions The product and experience offered by most of the man made attractions (eg Oakvale Farm, Dizzyland, Australian Shark and Ray Centre, Murrook) is less sophisticated than the market would generally expect. These attractions are at best 'average' although the operators are enthusiastic and know their business. They are under managed and possibly under capitalised. Improvements needed include: Improved presentation of exhibits Professional signage Sense or arrival and a sense of experience. These attractions are generally clean and with basic landscaping and presentation of exhibits. They lack that quality which makes for a memorable experience. 63

65 5.4 Opportunities to Expand the Product and Attraction Base Possible opportunities to expand the product and attraction base include: Murrook Cultural Centre there is strong demand from the international market for indigenous product. There is potential to develop Murrook into a significant product for Port Stephens and the surrounding region. Signature coastal walk through the Tomaree National Park from Tomaree Headland to Birubi Point. Tour to Fingal Island, departing from Fingal Bay. Scenic drives and touring routes encouraging visitors to explore different parts of the LGA the surrounding region. Mambo Wetlands possibility of a board walk through the wetlands with interpretation and bird hides. Local produce / harvest trail linking farm gate outlets, seafood products, wineries and the brewery. Mountain bike trails in the Karuah State Forest or National Park or in the Medowie or Karuah State Conservation Areas. Establishing a high quality adventure play ground at Lemon Tree Passage and possibly at Fingal Bay. Wetland and wildflower boardwalks in the Tilligerry State Conservation Area. Further development of the Tilligerry Habitat Centre at Tanilba Bay. Developing boat touring routes Port Stephens and in the Hunter Williams Rivers. Clustering of activities that to appeal to special interest markets for example the bird watching market Goulds Petrel, Broughton Island, Mambo Wetlands, Roalyn Park at Raymond Terrace and the Seaham Swamp Nature Reserve. 64

66 6.1 Accommodation Base 6. ACCOMMODATION BASE There is no directory that lists all accommodation available in Port Stephens LGA. The Port Stephens Visitor Centre has information on properties that are members of PSTL. The accommodation listings on the State Tourism Data Warehouse is not comprehensive, nor are the listings in the NRMA (AAA) Accommodation Guide. The data provided in Tables 6.1, 6.2 and 6.4 has been compiled from a range of sources and may not be completely accurate. There is also some confusion with the classification of properties, with a number of properties listed under different categories in different data bases. In addition, for some data bases, Port Stephens includes properties on both sides of the Port, with Raymond Terrace either not listed, or listed under Newcastle or Hunter. The Australian Bureau of Statistics, Tourist Accommodation Survey collects data from 25 hotel, motel and serviced apartment properties, 14 caravan parks and 8 holiday letting agents from within the LGA. Based on the ABS data and the properties listed in various accommodation directories, the accommodation base in Port Stephens LGA includes: Resorts, hotels, motels, apartment hotels and serviced apartments 37 properties. The ABS surveys 25 of these properties, with the 25 surveyed providing around 1,600 rooms. When all properties are included, there is probably in the order of 1,800 rooms / apartments. Caravan Parks 17 parks plus camping available at Melaleuca Backpackers. The ABS surveys 14 parks, with these parks providing around 1,560 tourist sites (1,400 powered sites and 160 unpowered sites) and 430 cabins, and also have around 700 on site holiday vans. Holiday rental properties apartments and houses The ABS surveys 8 letting agents, with these agents having between 1,300 1,400 active properties on their books. Based on an internet search it is likely that there are around 1, holiday letting properties managed by letting agents and a further that are privately let, through accommodation booking websites. Holiday homes and apartments At the 2006 Census there were 4737 unoccupied dwellings in the urban areas on the Tomaree and Tilligerry Peninsulas. Possibly around 2,000 of these properties are let for holiday rentals (see above). A significant proportion of the remainder are likely to be holiday homes and apartments that are used on an occasional basis. Bed & Breakfast & farm stay properties there appears to be around 30 B&Bs in the LGA and 2 3 farm stay properties. Back Packer 2 hostels, plus two properties with budget bunk house and unit accommodation. Accommodation is concentrated on the Tomaree Peninsula, with most of the resort, apartment and motel accommodation located in the Nelson Bay Shoal Bay area. There is also resort apartment accommodation at Corlette, Salamander and Soldiers Bay, with these properties located in residential areas. There is a secondary cluster of small resorts and back packer accommodation in the Anna Bay One Mile area. There is a distinct difference in the character of the accommodation between Anna Bay and the bayside suburbs. Nelson and Shoal Bay are urban centres, with a concentration of medium density apartments. In contrast the properties in the Anna Bay One Mile area are smaller, low density, 'eco' style properties with interesting architecture and bush settings. Rental accommodation (houses and apartments) are spread throughout the Peninsula, from Soldiers Point through to Fingal Bay and in the Anna Bay Boat Harbour area. There are also 11 caravan parks (over 1900 tourist sites) on the Tomaree Peninsula, with parks located at Fingal Bay, Shoal Bay, Nelson 65

67 Bay, Soldiers Point (2), Anna Bay (2), Biribu Beach (1), One Mile Beach (2) and Fenninghams Island. The two parks at Anna Bay and at Fenninghams Island are predominantly longer term residential parks with limited tourist accommodation. On the Tilligerry Peninsula accommodation is concentrated at Lemon Tree Passage, and includes a large caravan park, small motel, a few B&B s and possibly holiday homes and apartments. Karuah has three small motels, one very small caravan park and a larger resort style park on the Karuah River. The motels and small caravan park were established more than 30 years ago to service the highway traffic that used to flow through the town. Raymond Terrace has 5 motels, 2 caravan parks, a B&B and a few pub hotels that provide accommodation. There is also a caravan park at Tomago. The motels mainly service highway traffic, business and work related travellers and visitors coming into the area for sport, social functions etc. The caravan parks are primarily long term residential parks with limited tourist facilities. Resorts, Apartment Hotels & Serviced Apartments The are 16 'resort' and serviced apartment properties in Port Stephens, all of which are located on the Tomaree Peninsula. There are also a number of apartment complexes, such as the Shoal Bay Beach Club Apartments, that will provide cleaning and other services on a fee for service basis. The new Armana Resort is the newest up market accommodation in the LGA with the property having recently been rated 5 star. Six of the properties are 4.5 star rated by AAA with one property self rated at 4.5 star. These properties provide around 830 apartments. There are also three 4 star properties, providing 97 apartments. (Note: star ratings are a guide only) Table 6.1 Hotels and Resorts Property Location Affiliation Star Rating Rooms / Apts The Landmark Nelson Bay apts Nelson Bay Breeze Resort Nelson Bay apts Marina Resort Nelson Bay rooms Mantra Aqua Resort Nelson Bay Stella apts Oaks Lure Apartments Nelson Bay Oaks H&R apts Cote d'azur Nelson Bay 4.5 # 54 apts Armana Resort Nelson Bay 5 11 suites Shoal Bay Resort & Spa Shoal Bay apts Peppers Anchorage Corlette Stella rooms Oaks Pacific Blue Salamander Bay Oaks H&R apts/34 rms Le Meilleur Horizons Golf Resort Salamander Bay Le Meilleur 4 27 apts Colonial Ridge Resort Salamander Bay apts All Seasons Salamander Shores Soldiers Point All Seasons rooms Samurai Beach Resort One Mile Beach 4 31 cottages O'Carrolyns One Mile Beach cottages Wanderer's Retreat One Mile Beach cottages Source: Compiled from TNSW visitnsw.com, TotalTravel, Property & Accommodation Websites # Self rated Many of the apartment properties are strata titled, with the units in individual ownership and operated under a management agreement. There are a number of issues with these properties, including: Withdrawal of apartments from the management agreement, or not entering into a new agreement once the original management contract has expired. People buying the units as an investment in the short to medium term, with the expectation to retire to the unit in the longer term. 66

68 Apartments being taken out of the management pool and let privately or placed with another managing agent. The management company has no control over guests in these apartments. Conflict between permanent residents and visitors, with the two groups having different needs and expectations. As the number of units under a management contract declines, the viability of the operation can be compromised. Motels, Hotel Motels, Pub Hotels There are 18 motels, 2 hotels with motel rooms and 3 pub hotels that provide accommodation. The rooms available in the pub hotels fluctuate, depending on demand for permanent and semi permanent accommodation. Most of the motels are older, traditional style properties, with a number being ripe for redevelopment. There is one 4 star property and nine 3.5 star properties. Only 5 of the properties have the capacity to accommodate a coach tour group (>25 rooms), with three of these properties being located at Raymond Terrace. Table 6.2 Motel and Hotel / Motel Accommodation Property Location Affiliation Star Rooms Rating Peninsula Motor Inn & Apts Nelson Bay 4 27 rms / 13 apts Nelson Lodge Motel Nelson Bay Nelson Towers Motel Nelson Bay Dolphins Motel Nelson Bay Admiral Nelson Motel Nelson Bay Golden Chain Port Stephens Motor Lodge Nelson Bay 3 17 Seabreeze Hotel Nelson Bay Central Motel Nelson Bay nr Corlette Palms Corlette 3 13 Santa Catalina Motel Shoal Bay nr Lemon Tree Passage Motel LTP Haven Country Life Motel Karuah Budget Karuah Motor Inn Karuah 3 14 Sally's Motel Karuah nr 8 Colonial Terrace Motor Inn Raymond Terrace Sir Francis Drake Raymond Terrace C' Comfort Motto Farm Motel Raymond Terrace nr 80 Sleepy Hill Motor Inn Raymond Terrace 3 30 Kingston Motel Raymond Terrace nr 12 Junction Inn Raymond Terrace Pub The Palms Hotel Raymond Terrace Pub Clare Castle Hotel Raymond Terrace Pub Bull & Bush Hotel / Motel Medowie nr Source: NRMA Accommodation Directory, Tourism NSW nr = not rated Only four of the motel properties are members of National chains. A number of the motels, particularly in the Raymond Terrace area, are tired and in need of major refurbishment. The market has shifted with travellers increasingly seeking star properties. 67

69 Holiday Houses & Apartments Holiday houses and apartments can be broadly defined as properties that are not permanently occupied or available for residential lettings (6+ month leases). They include properties which are used by the owner and their friends and relatives for holidays and short stays in the area, and those that are available for short term holiday lettings. The ABS, through the Census Data, provides information on the total number of private dwellings (house, apartments etc) and the number of occupied and unoccupied dwellings at the time of the Census. Unoccupied dwellings includes holiday properties, plus those that are vacant eg for sale, for demolition etc. As holiday lettings account for the majority of unoccupied properties, the Census data provides an indication of the number of holiday properties in the area. At the 2006 Census there were 4,304 unoccupied properties in the urban localities on the Tomaree Peninsula and 433 properties on the Tilligerry Peninsula. 53.7% of unoccupied dwellings were located in the Nelson Bay Shoal Bay area, with some of these dwelling being new apartments for sale. Table 6.3 Unoccupied Private Dwellings Census 2006 Urban Locality Nelson Bay Shoal Bay Fingal Bay Corlette Salamander Bay Soldier Point Anna Bay Boat Harbour Total Tomaree Total Private Dwellings Unoccupied Dwellings Unoccupied as % of Total Dwellings 42.1% 39.1% 22.5% 17.8% 42.2% 22.3% 33.8% % of Unoccupied Dwellings 53.7% 9.2% 7.0% 7.8% 7.5% 5.7% 90.0% Tilligerry Urban Areas % 9.1% Total Urban Localities % 100% Source: Australian Bureau of Statistics 2006 Census Based on internet searches of the holiday property portfolios of the real estate and holiday letting agents in the area, and of the main accommodation directories (eg total travel, stayz), there appears to be around 2,000 apartments and houses available for holiday rentals in Port Stephens. Of these, around 1,450 1,500 properties are listed with real estate and holiday letting agents, with around listed privately on accommodation directory websites. The ABS, as part of their Tourist Accommodation Survey, surveys 8 letting agents in the area, with these agents managing in the order of 1,300 holiday rental properties. Winnings Properties is the largest managing agent with over 500 properties on their books. Around 98% of holiday rental properties are located on the Tomaree Peninsula, with around half being in the Nelson Bay Shoal Bay area. There appears to be around holiday rental properties on the Tilligerry Peninsula, with no holiday rental properties listed for Karuah or Raymond Terrace. According to letting agents, rental properties in Shoal Bay, Nelson Bay and Fingal Bay generally rent first, with Anna Bay and Boat Harbour beginning to increase in popularity. In holiday times, houses are more popular than apartments. The preference is for properties with water views and/or in close proximity to the beach. Waterfront properties in Soldiers Point and Salamander will 'sell', however properties not located near the water are difficult to rent. The market is becoming increasingly demanding, wanting modern accommodation, equipped with flat screen televisions, play station / Wi etc. Many of the holiday letting properties in the area are older with dated furnishings, fittings and equipment. These properties are more difficult to rent out. Good properties generally achieve around 50 60% occupancy, however most properties achieve around 20 25%. 68

70 Caravan Parks There are 17 licensed caravan parks in Port Stephens LGA, plus a camping area at the Melaleuca Surfside Back Packer Hostel. These parks provide over 2,400 sites of which around 40 45% are available for tourists. 12 of the parks are on the Tomaree Peninsula, with one at Lemon Tree Passage, two at Karuah, two at Raymond Terrace and one at Tomago. Port Stephens Council operates four Parks under the brand of 'Port Stephens Holiday Parks'. Eight of the Parks are primarily residential parks with a high proportion of permanently occupied 'long term' sites, and a limited number of tourist sites and/or cabins. Most of the Parks also cater for holiday vans which are located permanently on site. The caravan parks on free hold land appear to have the highest proportion of long term sites and holiday vans. Only 7 of the Parks are listed by CCIA as being capable of accommodating a large motorhome. The majority of the parks have a black water dump point. Overall, the Parks in the LGA are of a relatively high standard with one 4.5 star Park (Discovery Park at Lemon Tree Passage) and 7 four star parks. Most of the 'tourist' parks provide quality visitor facilities, with the parks being well maintained and well presented. A number of the parks run Kids Clubs during the school holidays. During January, the larger tourist parks can have upwards of 1,000 visitors staying onsite. The four major franchise chains, Big4, Family Parks of Australia, Top Tourist Parks and Discovery Parks are represented in the LGA. Most of the Parks in the LGA are members of the Caravan and Camping Industry Association and are listed in the CCIA Holiday and Touring Guide and on the CCIA website. Trends in the Caravan Park Sector According to operators, the caravan park market is changing, with trends including: Resurgence in the popularity of camping, particularly in the past months, possibly as a result of the economic downturn. This is a 4 star camping market, bringing a lot of equipment and 'comfort' with them. Increase in the 'grey nomad' market towing camper trailers as opposed to caravans. Strong preference, particularly amongst the touring van market, for drive through sites. Strong demand for cabins, particularly the larger, more up market cabins that have separate bedrooms. Increased expectation that there will be activities available for children. The holiday market in particular is looking for 'resort' style parks. 69

71 Table 6.4 Caravan Park Accommodation Port Stephens LGA Park Location Affiliation Rating Total sites Tourist Sites Ens Pwd Un Pwd Total Tourist Sites as % of total sites Cabins Other Fingal Bay Fingal Bay % 33 Shoal Bay Shoal Bay % 36 5 tents Halifax Nelson Bay % 32 Soldiers Point Holiday Park Soldiers Point % 33 Big 4 Soldiers Point Holiday Park Soldiers Point Big % units One Mile Holiday Park One Mile Beach TTP % 32 Middle Rock Holiday Resort One Mile Beach % 23 Melaleuca Surfside Backpackers One Mile Beach Basic Primitive camping Bays Holiday Park Anna Bay FPA % 8 2 bunk houses Emerald Tiki Caravan Park Anna Bay Mainly permanent Birubi Beach Holiday Park Anna Bay % 28 Island Leisure Village Fenninghams Is % 6 Discovery Holiday Park LT Passage Discovery % 21 Karuah Caravan Park Karuah % 4 8 on site van Big 4 Karuah Jetty Holiday Village Karuah Big % 15 Pacific Gardens Caravan Park Raymond Terrace Bellhaven Caravan Park Raymond Terrace % 19 Tomago Van Village Tomago % on site vans TTP Tourist Parks of Australia FPA = Family Parks of Australia Source: NRMA Accommodation Directory, Caravan & Camping Industry Australia Holiday & Caravan Park Guide 70

72 Bed & Breakfast (B&B) & Farm Stay Properties Based on properties listed in the Yellow Pages and an internet search, there appears to be around 30 B&B and 3 farm stay properties in the LGA. 22 of the properties are located in the urban areas of the Tomaree Peninsula, at Nelson Bay (4), Shoal Bay (3), Corlette (5), Salamander Bay (3), Soldier Point (4) and Anna Bay (4). The other B&Bs are located at Lemon Tree Passage (1), North Cove (1), Salt Ash (1), Seaham (1) and Raymond Terrace (2). Backpacker Hostels There are two backpacker hostels at One Mile Beach, the Samuria Beach Bungalows which is YHA affiliated and Melaleuca Surfside Backpackers. Both properties provide attractive timber cottages in bushland settings. Melaleuca also has a camping ground, which is popular with the international campervan touring market. Bunkhouse and lodge style accommodation as available at two of the caravan parks, with Sahara Farm Stay also having backpacker style rooms. 6.2 Possible Additions and Changes to Supply Possible additions to the accommodation stock in Port Stephens includes: West Diggers Nelson Bay Future development plans for the Club include hotel and hotel apartment accommodation, possibly rooms of star standard. Resort Anna Bay. Possibly 154 apartments. The site will require a rezoning. Murrook Accommodation for school groups. This could be camping or 'onsite' tents initially, moving to bunkhouse accommodation. Samurai Beach Resort 6 additional units plus café, bar and conference room. The Resort has approval for 86 rooms, of which only 33 have been developed. Additional rooms will be added as demand warrants. Former Army site, Gan Gan Road. The preliminary development concept for this site includes resortstyle accommodation. Karuah Jetty Big 4 Caravan Park Increasing the number of cabins from 18 to 30 over the next 4 years, and expanding the recreational facilities to include a tennis court and jumping pillow. 6.3 Performance The Australian Bureau of Statistics (ABS) publishes monthly performance statistics on a Local Government Area (LGA) basis for Hotels, motels, guesthouses and serviced apartments with ensuite facilities. Caravan Parks, with more than 15 tourist sites Holiday lettings apartments and houses that are commercially managed. Hotels, Motels, Guesthouses and Serviced Apartments The ABS statistics relate to hotel, motel, guesthouse and serviced apartment properties that have ensuite facilities and 15 or more guest rooms. The performance data for the calender years 2004 to 2008 and for the first 6 months of 2009 are summarised in Table 6.5. In June 2009, there were 23 properties surveyed, 71

73 with these properties providing 1,479 rooms. In 2008, 4 additional properties were added to the data base, increasing the average number of rooms available by 45.5%. In 2008, there were 290,360 visitors who stayed in hotel, motel, guesthouse and serviced apartment accommodation in Port Stephens LGA, with these visitors generating 293,932 room nights and 668,849 guest nights. Takings from accommodation were in the order of $ million, with around 700 people employed in the 25 properties surveyed. The main findings are summarised below: Guest Arrivals From 2004 to 2008, the number of guest arrivals increased by 47.7%, with most of the increase being in the 12 months from 2007 to 2008 (45.5% increase). The increase in guest arrivals is directly comparable to the increase in the number of rooms surveyed, indicating no real growth in arrivals. Guest arrivals in the first half of 2009 were down 6.6% on the same period Guest Nights The number of guest nights spent in Port Stephens LGA increase by 54.8% from 2004 to 2008, with most of the growth occurring from 2007 to 2008 with a 50.3% increase in nights spent in the LHA. The increase in nights in , was higher than the increase in rooms, indicating some growth in the length of stay. Nights spent in the area in the first 6 months of 2009 were down 6.3% on the same period in Rooms Sold The number of room nights sold has increased each year since 2004, with an overall increase of 55%. The strongest growth (43.9%) occurred in the 12 months to 2008, in line with the increase in the number of rooms surveyed. Average Length of Stay The average length of stay in 2008 was 2.3 nights, marginally higher than the 2.2 nights achieved in The average length of stay is longer (2.4 nights) in the warmer months (December and March quarters) and lower in winter (2.1 nights in the September quarter). The average length of stay in the first two quarters of 2009, was marginally lower than in the same quarters in Persons per Room the average number of visitors per room was 2.3, with a higher density (2.4) in the warmer months. Occupancy Rates From 2004 to 2007 the average occupancy rate increased marginally, from 49.8% to 51.4%, declining to 50.9% in (Note: in the 2 years prior to 2004, the occupancy rates were 51.8% and 51.1% respectively). In all years, the occupancy rates in the March quarter have sat between 60 and 63%, with the December quarter occupancy ranging from 52% to 56%. Occupancy rates during colder months (June and September quarters) have ranged between 41% and 45%. The monthly occupancy rates are given in Table 6.6. Visitation is highly seasonal, with a very concentrated January peak (around 70%) and very low occupancy rates in the colder months (36% 42%). Over the past 5 years occupancy rates from January through to October have remained relatively consistent (minimal or no growth), with performance appearing to have improved marginally in November and December (shoulder periods). Marketing needs to focus on building shoulder and low season occupancy rates. 72

74 Table 6.5 Performance of Hotels, Motels and Guesthouses Quarter Est Rooms Room Room Guest Guest Av. Persons Takings Av Room Nights Occ. Nights Arrivals Stay / Room $'000 Rate 2004 March % $ 7,818 $ June % $ 4,825 $ September % $ 4,487 $ December % $ 6,596 $ Total % $ 23,726 $ March % $ 7,809 $ June % $ 4,806 $ September % $ 4,849 $ December % $ 6,787 $ Total % $ 24,251 $ March % $ 8,121 $ June % $ 5,362 $ September % $ 5,083 $ December % $ 7,314 $ Total % $ 25,880 $ March % $ 9,513 $ June % $ 5,830 $ September % $ 5,626 $ December % $ 9,280 $ Total % $ 30,249 $ March % $ 13,496 $ June % $ 8,273 $ September % $ 9,424 $ December % $ 14,192 $ Total % $ 45,385 $ ytd March % $ 12,697 $ June % $ 8,475 $ % change % 50.5% 53.8% 2.1% 54.8% 47.7% 4.7% 0.6% 91.3% 24.4% % 45.4% 43.9% 1.1% 50.3% 45.5% 3.3% 4.4% 50.0% 4.3% 6months % 6.3% 6.7% 6.3% 6.6% 2.7% 3.9% Source: Australian Bureau of Statistics: Tourist Accommodation NSW

75 Table 6.6 Port Stephens Shire Average Monthly Occupancy Rates Month January February March April May June 73.0% 60.5% 52.6% 50.5% 39.2% 38.5% 68.5% 58.3% 54.5% 48.0% 38.1% 40.1% 70.0% 59.1% 58.8% 51.2% 38.9% 36.5% 70.1% 58.4% 56.9% 51.7% 40.9% 41.5% 70.7% 57.1% 52.9% 56.2% 42.2% 36.5% 63.2% 51.7% 49.6% 54.7% 39.8% 34.5% July August September October November December 40.5% 37.5% 48.3% 52.7% 50.9% 53.1% 39.7% 38.7% 47.3% 56.3% 56.9% 55.9% 39.0% 40.1% 46.5% 55.5% 54.2% 56.9% 41.4% 39.8% 53.6% 52.2% 55.3% 56.5% 36.9% 38.6% 51.9% 53.9% 56.5% 58.8% Annual 49.8% 49.7% 50.6% 51.4% 50.9% Source: Australian Bureau of Statistics: Tourist Accommodation NSW As a 'rule of thumb', occupancy rates in excess of 65% indicate the need for additional accommodation. This rate is only achieved in January, with the area being over supplied with accommodation for the remainder of the year. Takings from Accommodation In 2008 total takings from accommodation was $ million, up 91.3% on 2005, with a 50% increase in takings in the last 12 months. Average Room Rate The average room rate per occupied room per night has increased each year, from $ in 2004 to $ in Rates fluctuate seasonally. In 2008, the achieved rates in the December and March quarters were $ and $ respectively, declining to $ in the September quarter and to $ in the June quarter. The achieved rate for total rooms available was $78.53 in Comparison with other LGA's Table 6.7 provides a comparison of the performance of the hotel, motel and serviced apartment sector in Port Stephens with the performance of properties in Newcastle City and the larger LGAs within the Coast Region, for The performance comparison for the January to June period for 2008 and 2009 given in Table 6.8. The main findings for 2008 are: Port Stephens had 25.7% of the rooms available for sale in the North Coast Region. It attracted 22.7% of guest arrivals and 26.2% of guest nights, and sold 24.5% of the rooms and achieved 29.5% of the revenue generated by the accommodation. These figures indicate that Port Stephens is attracting slightly less than its 'fair share' of guest arrivals and rooms sold, but is attracting slightly more of its fair share in terms of guest nights and takings from accommodation. Newcastle City had by far the highest room occupancy rate achieving 74.7%, compared to 50.9% achieved in Port Stephens. Properties in both Coffs Harbour and Port Macquarie averaged higher occupancy rates than Port Stephens, 60.6% and 58.0% respectively. Port Stephens and all other LGAs on the North Coast performed below the regional average of 53.1%. Port Stephens has the longest average length of stay in the Region, 2.3 nights, compared to the regional average of 2.0 nights. Port Stephens achieved the highest takings from accommodation ($45.38m) and the highest average rate per occupied room ($154.21). Newcastle achieved $142.21, while the average for the North Coast was $ For rates achieved for total rooms, Port Stephens ($78.53) ranked second in the 74

76 region, behind Port Macquarie ($79.40). Newcastle City had by far the best rate, $ per room per night. In the first 6 months of 2009, Port Stephens experienced larger percentage falls in room sales, room occupancy and takings, than the other LGAs in the North Coast Region. Newcastle achieved very high occupancy rates year round, with the slowest month being January (66.9%). This reflects the diverse market base of the City business travellers, conference delegates, event attendees, holiday and leisure travellers, sporting competitors etc. Seasonality is a significant issue in all LGA's in the North Coast Region. Coffs Harbour achieved the highest occupancy rates in the Region, with seasonality not being as pronounced in Coffs Harbour as it is in other LGAs. Coffs Harbour appears to have been successful in building its shoulder season visitation. Port Macquarie ranked second, followed by Port Stephens. Occupancy rates in Great Lakes Shire were very low. 75

77 Table 6.7 Comparison of Performance, Hotels, Motels & Guest Houses Newcastle City & North Coast LGAs 2008 LGA Est Rooms Guest Arrivals Room Nights Sold Guest Nights Room Occupancy Av Stay Nights Takings Achieved Room Rates Occupied Rm Total rooms Port Stephens % 2.3 $45.38m $ $ Newcastle % 1.9 $ 43.05m $ $ Coffs Harbour Great Lakes Kempsey Port Macquarie Taree % 42.4% 43.8% 58.0% 46.4% $ 39.12m $ 12.00m $ 5.04m $ 37.29m $ 9.14m $ $ $ $ $ $ $ $ $ $ North Coast % 2.0 $155.26m $ $ PS as % of Region 14.9% 25.7% 22.7% 24.5% 26.2% 29.2% Table 6.8 Comparison of Performance Percentage Change Jan June 2008 to Jan to June 2009 LGA Rooms Available Guest Arrivals Room Nights Sold Guest Nights Room Occupancy Takings Rate / Occ Room Rate Total Rooms Port Stephens 0.4% 6.6% 6.3% 6.3% 6.7% 2.7% 3.9% 3.1% Newcastle 2.0% 2.5% 7.4% 8.4% 9.2% 0.5% 7.4% 2.5% Coffs Harbour Great Lakes Kempsey Port Macquarie Taree 0.1% 5.3% 4.9% 2.8% 2.3% 3.1% 2.0% 6.2% 4.5% 7.6% 2.2% 3.1% 3.0% 3.5% 3.3% 1.0% 6.7% 0.7% 3.4% 5.1% 2.3% 8.9% 2.0% 0.7% 1.0% 1.0% 2.5% 1.9% 1.3% 1.2% 3.3% 5.4% 5.0% 2.3% 2.1% 0.9% 3.3% 7.2% 1.6% 1.0% North Coast 0.7% 3.9% 2.5% 0.3% 1.8% 1.1% 1.5% 0.4% Table 6.9 Comparison Monthly Room Occupancy Rate 2008 LGA Jan Feb March April May June July August Sept Oct Nov Dec Year Port Stephens Newcastle Coffs Harbour Great Lakes Kempsey Port Macquarie Taree North Coast

78 Holiday Rental Accommodation Apartments and Houses The ABS surveys 8 letting agents, with these agents having between 1,300 and 1,400 properties listed for holiday rentals. The number of properties available has been relatively static for the past 4 years. (Table 6.10) Lettings In 2008, there were 31,355 holiday lettings, with lettings being 12.4% down on the number of lettings in In 2005 there were 35,756 lettings, with the number of lettings declining in 2006, with a further decline to 24,541 lettings in While the number of lettings recovered strongly in 2008, lettings for the first 6 month of 2009 were down 12.4% on the same period in Nights Spent In 2008, there were 168,569 nights in which dwellings were occupied. The average length of stay was 5.4 nights. Unit Occupancy Rates In 2008, the occupancy rate for holiday rental properties was 34.7%, down 10.1% from Occupancy is seasonal, with the highest rates achieved in January (59.8% in 2008) and December (46.8%). Over the past 4 years, monthly occupancy rates in winter have fluctuated between 14% and 30%. Table 6.11 Months Occupancy Holiday Lettings Port Stephens LGA January 74.4% 61.5% 53.9% 59.8% 71.1% February 47.1% 35.8% 30.9% 41.2% 45.2% March 44.6% 30.1% 23.9% 37.0% 35.3% April 41.1% 36.7% 25.7% 28.7% 41.4% May 32.6% 20.3% 16.1% 21.9% 27.6% June 33.3% 20.8% 14.1% 20.7% 26.4% July 29.2% 26.4% 26.4% 30.2% August 27.1% 19.9% 19.9% 23.3% September 36.9% 27.5% 27.5% 33.6% October 24.5% 30.4% 32.0% 36.6% November 27.5% 30.4% 28.6% 33.0% December 44.6% 48.6% 53.8% 46.8% Annual 38.5% 32.5% 29.5% 34.7% Source: Australian Bureau of Statistics: Tourist Accommodation NSW Comparison to other LGAs Of the properties surveyed by the ABS in 2008, holiday rental properties in Port Stephens accounted for 38% of holiday rental properties on the North Coast. Port Stephens attracted 28.8% of lettings within the Region and 34.0% of nights, with these figures being less than 'fair share'. The annual occupancy rate in Port Stephens was 34.7%, which was below the regional average of 37.8%. Coffs Harbour achieved the highest occupancy rate, 48.5%, however it has less than a quarter the number of rental properties. The average length of stay in Port Stephens was 5.4 nights compared to the regional average of 4.4 nights. Port Stephens also achieved the highest average rate per occupied property per night, $ compared to $ for the North Coast Region and $ for Coffs Harbour. In the first 6 months of 2009, the number of holiday property lettings in Port Stephens was up 1.3% over the same period 2008, with Coffs Harbour being the only other LGA in the region to experience growth 77

79 (13.5%). Regionally, the number of lettings was down by 17.1%, with lettings in Port Macquarie down 48.2% while Great Lakes was down 43.4%. Over the same periods, nights spent in holiday rental properties in Port Stephens were up 8.3% on 2008, well ahead of the regional average of 2.6%. Both Port Macquarie and Great Lakes experienced significant decreases, with nights spent down 21.7% and 27.3% respectively. In Port Stephens average takings were down 5.2%, while achieved rates per night per occupied dwelling fell by 12.5%, with rates across the region falling by 3.4%. Coffs Harbour was the best 'performer' achieving the highest rate in the region, $122.73, with rates being up 18.6% over the same period in

80 6.10 Performance of Holiday Rental Accommodation Port Stephens March June September December Total March June September December Total March June September December Total March June September December Total March June No. Dwellings No. Lettings No. Nights Booked Occupancy 55.7% 35.7% 31.0% 32.2% 38.5% 42.7% 25.9% 24.6% 36.5% 32.5% 36.4% 18.6% 24.6% 38.2% 34.7% 46.1% 23.7% 29.0% 38.8% 34.7% Av. Stay Nights Takings $6,628,520 $2,098,370 $1, $4,639,225 $15,289,928 $5,046,040 $2,977,502 $3,044,135 $5,108,160 $16,175,837 $5,610,755 $2,245,027 $3,044,135 $6, $17,575,894 $8,324,086 $2,974,270 $3,892,023 $6,673,977 $22,466,725 Av. Rate Occupied Unit/Night $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Av. Rate Total Dwelling/ Night % 31.8% $8,028,913 $2,677,672 $ $ $68.94 $24.23 % change % 12.4% 9.5% 10.1% 3.3% 47.5% 62.9% 46.5% Source: Australian Bureau of Statistics: Tourist Accommodation NSW $55.14 $17.18 $15.53 $38.86 $31.53 $41.23 $25.78 $25.97 $42.69 $33.98 $45.91 $17.89 $25.97 $52.99 $35.71 $65.01 $25.01 $32.50 $61.51 $

81 6.12 Comparison Holiday Lettings North Coast 2008 LGA No. Dwellings No. Lettings No. Nights Booked Occupancy Av. Stay Nights Takings ($) Av. Rate Occupied Unit/Night Av. Rate Total Dwelling/ Night Coffs Harbour % $ $ Great Lakes % $ $ Port Macquarie % $ $ Kempsey % $ $ Port Stephens % $ $ North Coast Region % $ $ Source: Australian Bureau of Statistics: Tourist Accommodation NSW Comparison of Performance January to June 2008 to 2009 LGA No. Dwellings No. Lettings No. Nights Booked Occupancy Av. Stay Nights Takings ($) Av. Rate Occupied Unit/Night Coffs Harbour 2.3% 13.5% 14.5% 17.1% 0.8% 35.7% 18.6% 38.9% Great Lakes 5.6% 43.4% 27.3% 22.9% 28.5% 31.8% 6.2% 27.7% Port Macquarie 24.0% 48.2% 21.7% 3.1% 51.2% 39.5% 22.8% 20.4% Kempsey 0.7% 29.1% 0.7% 0.0% 40.0% 5.8% 6.6% 6.6% Port Stephens 7.1% 1.3% 8.3% 16.6% 7.0% 5.2% 12.5% 2.0% North Coast Region 7.1% 17.1% 2.6% 10.4% 23.8% 0.9% 3.4% 6.6% Source: Australian Bureau of Statistics: Tourist Accommodation NSW Av. Rate Total Dwelling/ Night 80

82 Caravan Parks The ABS data for Port Stephens Shire is collected from 14 caravan parks. The ABS provides data on the site mix (long term permanent sites, sites occupied by holiday vans, powered and sites and cabins), site occupancy and takings from accommodation. Long term permanent sites are not included in this analysis. Site Mix As at June 2009, there were 2,739 'tourist' sites, of which 55.1% were powered, 5.5% unpowered, with 14.8% occupied by cabins and units and 24.6% by holiday vans. From 2005 to 2008 (calender years) the number of powered sites available for tourists fell by 20.8%. At the same time there was a significant increase in the number of holiday vans (up 111.2%), with the number of cabins and un powered sites also increasing. From 2007 to 2008 there was a decline in the number of sites occupied by long term residents and it appears some of the holiday vans may have been put onto these sites. (Table 6.14) Table 6.14 Site Mix & Performance Port Stephens Caravan Parks (6mths) % change Establishments % Total Tourist Sites % Site Mix: Cabins Powered Sites Unpowered Holiday Vans Site Occupancy: All Sites Pwd / Unpwd 14.1% 68.6% 4.7% 12.7% 60.6% 51.2% 14.4% 68.5% 5.4% 11.7% 62.8% 53.1% 15.0% 64.6% 5.5% 14.9% 64.3% 52.9% 16.0% 52.3% 6.0% 25.7% 70.3% 51.5% 14.8% 55.1% 5.5% 24.6% 74.0% 59.2% 17.9% 20.8% 32.7% 111.2% Sites sold 15.9% 20.5% Av Takings / Occupied Site $22.64 $22.33 $21.65 $22.64 $ % Source: Australian Bureau of Statistics: Tourist Accommodation NSW Table 6.15 provides a comparison of the site mix and performance of the caravan park sector in Port Stephens with that of other LGAs within the North Coast Region. The comparison is for In terms of tourist sites available in the Region, Port Stephens ranks third behind Great Lakes Shire (3,452 sites) and Coffs Harbour (2,904 sites). In its site mix, Port Stephens has the highest proportion of holiday vans, being more than double that available in all other LGAs except Taree. Port Stephens has a lower proportion of cabins, powered and unpowered sites, with unpowered sites in particular being very low. Site Occupancy In 2008, Port Stephens achieved the highest site occupancy rate within the region, 71.9% for all sites, compared to the regional average of 58%. Parks in Coffs Harbour averaged 57%, with Port Macquarie and Great Lakes achieving 51% and 59% respectively. The higher proportion of holiday vans in Port Stephens contributes to the high occupancy rates. Excluding sites occupied by holiday vans and cabins, Port Stephens achieved 51.5% occupancy of its powered and unpowered sites, which was significantly higher than the regional average of 42% (see Table 6.15). From 2005 to 2008, the occupancy rate for total sites in Port Stephens increased, from 60.6% to 70.3%, increasing to 74% in the first six months of 2009, buoyed by the increase in number of sites occupied by permanent holiday vans. Over this same period, the number of sites sold increased by 15.9%. The occupancy rate achieved in the first 6 months of 2009 was higher again, at 74.0%. (Table 6.16) 81

83 Over the 4 years, there was a 20.5% reduction in the number of powered and unpowered sites sold in Port Stephens. The reduction in the number of sites available has enabled the site occupancy rate to remain relatively constant, 51% to 53%. (Table 6.17) Seasonality Monthly Site Occupancy Rates Demand for caravan parks is highly seasonal, with a very strong and concentrated peak in January. In January the parks are operating at or close to capacity, with total site occupancy being 91.7% in January 2008, with 85.2% occupancy of powered and unpowered sites. In winter, the occupancy rates for powered and unpowered sites is low, fluctuating around 35% for the winter months in Occupancy rates for powered and unpowered sites in winter have decreased over the past 4 years. Over the same period, there has been growth in the shoulder season occupancy rates. Monthly occupancy rates in January and February 2009 were lower than for the same period in 2008, however the rates from March through to June were higher. This may be due in part to changes in travel behaviour as a result of the economic downturn, with people postponing their Christmas holidays in 2009, waiting to see what was happening. There has also been a shift to people taking lower cost holidays holidaying outside of peak periods and an increase in the number of campers. Table 6.16 Monthly Site Occupancy Rates All Sites Port Stephens Caravan Parks Month January February March April May June 79.6% 70.6% 67.9% 64.1% 59.3% 59.2% 81.8% 72.1% 68.0% 67.0% 58.9% 57.9% 85.8% 75.2% 71.4% 71.5% 62.4% 60.1% 91.7% 79.0% 76.5% 68.6% 63.9% 62.9% 88.1% 76.8% 73.6% 74.7% 65.7% 65.1% July August September October November December 58.8% 58.6% 64.0% 62.7% 62.4% 64.1% 56.6% 56.4% 62.0% 67.6% 66.0% 69.3% 56.6% 56.4% 62.0% 67.6% 66.0% 69.3% 62.1% 63.0% 68.4% 73.8% 71.2% 76.7% Annual Average 64.4% 65.5% 67.1% 71.9% Source: Australian Bureau of Statistics: Tourist Accommodation NSW Table 6.17 Monthly Site Occupancy Rates Powered and Unpowered Sites Port Stephens Caravan Parks Month January February March April May June 72.1% 59.7% 56.1% 50.7% 44.1% 44.0% 75.8% 62.9% 57.5% 56.3% 44.1% 42.6% 80.0% 65.8% 60.6% 53.1% 38.1% 34.2% 85.2% 67.0% 58.2% 45.5% 37.4% 35.6% 80.0% 48.5% 59.7% 54.9% 47.7% 39.9% July August September October November December 44.0% 43.7% 51.0% 49.3% 48.9% 51.3% 40.9% 40.6% 48.2% 56.0% 53.8% 58.3% 40.9% 40.6% 48.2% 56.0% 53.8% 58.3% 34.5% 36.2% 45.5% 57.2% 52.9% 62.0% Annual Average 51.2% 53.1% 52.9% 51.5% Source: Australian Bureau of Statistics: Tourist Accommodation NSW Seasonality is an issue throughout the North Coast Region, with strong January peaks and low occupancy at other times. (see tables 6.18 and 6.19) 82

84 Table 6.15 Comparison of Caravan Park Performance North Coast Region 2008 Port Stephens Bellingen Coffs Harbour Great Lakes Kempsey Port Nambucca Taree North Coast Macquarie Establishments Total Tourist Sites Site Mix: Cabins Powered Sites Unpowered Holiday Vans 16.0% 52.3% 6.0% 25.7% 18.9% 57.8% 15.5% 7.8% 16.9% 60.8% 18.3% 4.0% 16.2% 56.9% 14.4% 12.5% 19.5% 64.9% 11.5% 3.3% 21.3% 58.4% 15.3% 4.9% 19.5% 64.9% 10.1% 5.5% 19.5% 61.6% 11.8% 19.5% 17.3% 58.9% 13.9% 10.0% Site Occupancy All Sites Pwd / Unpwd 71.9% 51.5% 46% 26% 57% 46% 59% 43% Av Takings / Occupied Site $22.64 $25.33 $27.70 $19.99 $30.02 $28.19 $24.27 $24.79 $ % 29% 51% 34% 59% 45% 60% 46% 58% 42% 83

85 Table 6.18 Comparison of Site Occupancy Rates, All Sites North Coast 2008 Month Port Stephens Bellingen Coffs Harbour Great Lakes Kempsey Port Macquarie January 91.7% 54% 73% 80% 68% 67% February 79.0% 43% 51% 63% 38% 49% March 76.5% 47% 55% 62% 42% 51% April 68.6% 38% 52% 59% 44% 47% May 63.9% 37% 50% 55% 38% 45% June 62.9% 35% 51% 54% 35% 45% July 62.1% 43% 57% 50% 32% 49% August 63.0% 59% 57% 50% 30% 48% September 68.4% 59% 59% 53% 36% 51% October 73.8% 45% 59% 60% 37% 56% November 71.2% 43% % 32% 51% December 76.7% 43% 65% 63% 42% 55% Nambucca Taree North Coast Annual Average 71.9% 45.5% 57% 59% 40% 51% 59% 60% 58% Source: Australian Bureau of Statistics: Tourist Accommodation NSW Table 6.19 Comparison of Occupancy Rates of Powered & Unpowered sites North Coast Region 2008 Month Port Stephens Bellingen Coffs Harbour Great Lakes Kempsey Port Macquarie January 85.2% 36% 66% 71% 63% 55% February 67.0% 23% 42% 50% 29% 33% March 58.2% 26% 44% 46% 32% 34% April 45.5% 14% 40% 43% 35% 29% May 37.4% 12% 38% 38% 27% 25% June 35.6% 10% 39% 37% 23% 26% July 34.5% 23% 47% 29% 20% 30% August 36.2% 45% 47% 29% 18% 29% September 45.5% 44% 48% 33% 25% 33% October 57.2% 26% 45% 45% 26% 40% November 52.9% 23% 39% 42% 20% 34% December 62.0% 23% 53% 49% 32% 38% 70% 59% 61% 58% 51% 52% 59% 50% 61% 64% 56% 57% 76% 60% 64% 59% 57% 57% 55% 54% 58% 63% 58% 65% 76% 58% 59% 56% 52% 51% 52% 53% 56% 60% 58% 62% Nambucca Taree North Coast Annual Average 51.5% 26% 46% 43% 29% 34% 45% 46% 41% Source: Australian Bureau of Statistics: Tourist Accommodation NSW % 48% 47% 44% 35% 36% 45% 46% 48% 51% 41% 43% 68% 48% 50% 44% 42% 41% 38% 37% 42% 49% 44% 52% 66% 45% 44% 38% 34% 34% 34% 35% 39% 44% 39% 47% 84

86 Takings from Accommodation From 2005 to 2008, total takings from caravan park accommodation increased by 15.9% to $15.9 million. In 2008, the average achieved rate per occupied site per night was $ (Note: the figure appears low as it includes sites occupied by Holiday Vans which pay a minimal site rental when not in use). This rate was the second lowest in the North Coast Region, with Great Lakes having the lowest rate at $ The Kempsey caravan parks achieved the highest rate, $30.02 per site, with the regional average being $ The low rate in Port Stephens is surprising given the proportion of cabins and holiday vans which are higher yielding and the very low proportion of unpowered sites, which are lower yielding. The rate achieved in 2008 was the same as that achieved in 2005, with rates being marginally lower in 2006 and The rate for the first 6 months of 2009 was marginally higher ($23.61), however was still below the regional average ($24.97) for this period. Main Findings Although the ABS figures are somewhat 'questionable' as they rely on the accuracy of information provided by operators, the figures do indicate that: There has been a decline in the demand for powered and unpowered sites over the past 4 years. The rate achieved per occupied site is low and has shown no growth in the past 4 years. During this period, there has been a change in the mix of accommodation provided. The change should have increased the achieved rates. Seasonality is a significant issue. While there has been some improvement in the shoulder season performance, the performance in winter is poor, particularly for powered and unpowered sites. 6.4 Issues with the Accommodation Sector Tomaree Peninsula Oversupply of rooms and apartments for 11 months of the year. Seasonality is a significant issue A significant proportion of the accommodation stock, mainly motel rooms and holiday rentals are older style properties that are tired and dated in design and fitout. These will become increasingly difficult to 'sell'. (Note: most of the caravan parks are well maintained and presented). Allied to this, a number of the hotel and resort properties are part of national or international groups. As the properties are smaller and not 'cash cows', they are not priorities for refurbishment. Managers at these properties are also rotated regularly. The market is becoming increasingly sophisticated and demanding in their expectations. Many of the properties in the area do not meet needs and expectations. Conflict between residents and visitors, due to different aspirations and behaviours. Security issues resulting from high vacancy rates, and a turn over of occupants. 85

87 Tilligerry Peninsula The area is under supplied with motel rooms Raymond Terrace Much of the motel product is tired and in need of modernisation and refurbishment. As Raymond Terrace develops, as a regional centre there will be increased demand for star standard, town centre accommodation. Karuah Motel product is tired and in need of modernisation and refurbishment. 6.5 Sustainable Environmental Practices Environmental sustainability is becoming an increasingly important issue that needs to be addressed by tourism operators. With significant increases in the costs of electricity, gas, water and waste disposal, green is becoming the new black. Initiatives that are starting to be introduced by accommodation properties to reduce both operating costs and carbon foot prints include: On site power generation (with surplus power being sold back to the grid). Use of energy efficient light bulbs and appliances. Reduction in water and gas use through more efficient shower heads and toilet cisterns and other usage saving devices. Recycling of grey water and the use of rainwater tanks. Introduction of occupancy based air conditioning systems. Paperless offices. Elimination of plastic bottles for toiletries. Purchasing food produced in the immediate surrounding area. Use of non hazardous chemicals. Composting of organic wastes for use in gardens. While PSTL currently has a sustainability policy, it will need to play a more active role in encouraging sustainable environmental practices amongst operators. Members will be looking to PSTL to provide education and information in this area. 6.6 Accommodation Opportunities While the Tomaree Peninsula is over suppled with accommodation, some of the accommodation stock (particularly motels and holiday rentals) is tired, dated and becoming increasingly difficult to sell. The market is becoming more sophisticated and demanding. There will remain a need for new quality accommodation in the area, with the preference being for the Shoal Bay and Nelson Bay areas. Other opportunities include: Low rise quality eco style resort, in the Anna Bay One Mile area. Additional motel rooms in Lemon Tree Passage, preferably through the expansion of the existing motel. Airport Hotel medium to longer term CBD Hotel Raymond Terrace medium to longer term 86

88 7. CONFERENCES & MEETINGS Port Stephens has a small conference and meetings market. When Peppers Anchorage and Horizon Golf Resort first opened, the area had a very high profile as a conference and meetings destination. The success of the properties stimulated interest and confidence in conference hotels and resorts which contributed to investment in this style of property in the region surrounding Sydney and also in coastal destinations. As new properties came on line and the facilities at Peppers and Horizons became dated, Port Stephens largely lost its market profile. 7.1 Venues The main venues used for conferences and meetings in Port Stephens are summarised below. Table 7.1 Conference and Meeting Venues in Port Stephens Venue Location Capacity of Largest Room Room Configuration & Capacity Theatre Banquet Venues with Accommodation Shoal Bay Spa & Resort 4.5* 201 apartments Shoal Bay large room divisible into three rooms 120, 90, 80 theatre style Boardroom 16 board room style 9 villas each able to accommodate 20 board room style Marina Resort 3.5* 44 rooms Le Meilleur Horizons 4.5* 27 apartments Nelson Bay large room divisible into two rooms each 100 theatre style Boardroom 30 theatre/18 boardroom Salamander Bay large room divisible into two rooms 120, 60 theatre style Boardroom 20 board room style Marque for banquets up to 650 Salamander Bay Three rooms 150, theatre Boardroom 12 board room style Corlette rooms 140, 70 theatre style each divisible into 2 2x70, 2 x 30 Salamander Bay meeting room 140 theatre style All Seasons Hotel 3.5* 90 rooms Peppers Anchorage 4.5* 80 rooms Oaks Pacific Blue 4.5* 176 apts / 34 rms Shoal Bay Holiday Park 3 Shoal Bay meeting room 70 theatre style 4* 44 cabins Aqua Blue Resort Nelson Bay 14 board 1 board room 14 board room style 49 apartments room Motto Farm Motel Raymond Terrace rooms, each 140 theatre style 80 rooms Sir Francis Drake Raymond Terrace rooms 60, 20,14 theatre 3.5* 40 rooms O Carrollyns One Mile Beach 30 I meeting room 30 theatre style 3.5* 9 bungalows Venues without Accommodation Nelson Bay Diggers Nelson Bay Auditorium + 1 meeting room Nelson Bay Golf Club Nelson Bay Auditorium Nelson Bay Bowling Club Nelson Bay rooms 330, 90,70 smaller room divisible into two 30, 20 theatre Lemon Tree Passage Bowling Club Lemon Tree Passage Auditorium + large room 200 divisible into 3 120, 50, 50 RT Bowling Club Raymond Terrace Auditorium 200+ Board room 18 Murrook Williamtown large room Cruising Venues Moonshadow Nelson Bay Three Boats capacities 300, theatre style Imagine Nelson Bay theatre style 87

89 Venues with Accommodation Port Stephens has 11 accommodation properties that have in house conference and meeting rooms, 9 of which are on the Tomaree Peninsula with two in Raymond Terrace. Shoal Bay Spa and Resort is the main conference hotel, with state of the art conference and meeting facilities for up to 300 delegates. The capacity to cater for a 300 delegate conference depends on the number and capacity of break out rooms required and the conference program (whether there is time to change the plenary room to breakout rooms and vice versa). The Resort is ideal for smaller meetings up to 200 delegates, with the property having 9 villas that can be used for small meeting and breakout rooms. The lack of breakout rooms to support the main conference space is also an issue with the facilities at Horizons and the Marina Resort, with these properties only having one meeting room. Horizons can erect a marquee on the lawn terrace to provide function space (maximum capacity 650 guests). All Seasons Salamander Shores Hotel and Peppers Anchorage can both cater for meetings of around and have the breakout rooms to support them. The main issue with these 4 venues is their age, with the facilities being tired. The Shoal Holiday Park offers a lay back experience with guests staying in cabin accommodation. O Carrollyns is ideal for small meetings looking for a retreat venue. The two motels at Raymond Terrace are mid range venues that attract small meetings from businesses and organisations located in the western suburbs of Newcastle and the industrial areas at Heatherbrae, Tomago and Williamtown as well as RAAF meeting business. The Sir Francis Drake is the more popular venue. Motto Farm lost its market base as the property was very run down. It is however under new management and currently being renovated. Licensed Clubs The majority of the Licensed Clubs in Port Stephens have an auditorium/function room, with a number of the clubs also having a board room and/or meeting room. The Diggers Club at Nelson Bay is undergoing a major refurbishment and will provide a large auditorium for 600 theatre style and possibly another smaller meeting room. The Club will not have breakout rooms, which will limit its ability to attract conferences. The Club is proposing to develop onsite accommodation and is also exploring the feasibility of developing a 2,000 seat conference and entertainment venue at some time in the future. The Nelson Bay Bowling Club has quality meeting rooms with the Club able to accommodate 330 theatre style. The Club has the breakout rooms to support this size conference, with accommodation available within a few minutes walk of the Club. The Bowling Clubs at Lemon Tree Passage and Raymond Terrace are mid market venues that primarily cater for local and regional meetings. The LTP Bowling Club has an auditorium which can cater for 350 theatre style with another large room that can be subdivided into three small meeting break out rooms. While the Club receives enquiries for conferences and multi day meetings, there is not sufficient accommodation in the area to accommodate this business, with the motel only having 11 rooms. The Club does not have any audio visual equipment. Other Venues The Murrook Cultural Centre at Williamtown has a large auditorium which can accommodate around 300 for a meeting. The room is basic and not air conditioned, with onsite catering available. The nearest accommodation is minutes drive from the Centre. Murrook attracts the occasional meeting, primarily from Government and Welfare organisations. Port Stephens also has a number of floating venues, with Moonshadow (3 boats) and Imagine Cruises able to cater for on board meetings. The vessels plus a number of other cruise operations (eg Tamboi Queen) are ideal for functions and tours for conferences held in the area. For functions Moonshadow can accommodate on one vessel, and has a combine capacity of around depending on the dining set up. Imagine is ideal for smaller groups, up to 60 delegates. 88

90 7.2 Support Infrastructure Depending on the type of conference, factors (in addition to venue size and characteristics), taken into consideration by conference organisers in selecting a location and venue include: Venue management and the level of service provided by the venue conference organisers prefer venues with professional management, with rooms and equipment set up and technical and support staff on site to assist. Accommodation availability, quality and location in relation to the conference / meeting venue. There are some conferences (eg training seminars) which require the meeting rooms, accommodation and dining facilities to be in one complex. Most conference organisers prefer the accommodation to be at or within easy walking distance of the venue, with the preference being for 4 to 4.5 star accommodation. Ground transport if accommodation and venues used by the conference are not within walking distance, the logistics and costs of transporting delegates becomes an issue. Location and access for larger conferences air access for delegates will be an important consideration. Capacity and frequency of service are the main considerations as organisers often need to fly speakers in and out on a half day turn around. Access to equipment electronic whiteboards, power point projectors etc. Hiring in equipment, particularly if it has to be brought from out of town, can be cost prohibitive. Opportunities for pre and post conference tours, partner programs, technical tours and conference activities. Opportunities for themed functions, off site dinners etc. Professional Conference Organiser while most conferences bring in a conference organiser, some will look to use a local service. Sponsorship Conference organisers look to reduce costs by attracting local sponsorship. Local Councils and local clubs and organisations are often asked to sponsor a dinner or conference activity, assist with transport and/or set up costs and waive venue hire fees. Port Stephens has this infrastructure in place on the Tomaree Peninsula. In addition it can offer a superb setting and wide range of soft adventure based team building activities, tours, golf (4 championship courses) and dining and entertainment options. The Tomaree area can accommodate conferences up to 300 delegates for conferences requiring in house accommodation, up to 330 delegates for conferences requiring access to break out rooms but not requiring in house accommodation and will be able to accommodate conferences and meetings up to 600 delegates provided that there is no requirement for break out rooms (Note: these type of conferences are rare). One issue that needs to be addressed is access from the airport. While it is possible to organise coach or mini coach transfers, the taxi fare for individuals to the Tomaree Peninsula is very expensive. Lemon Tree Passage does not have the accommodation to support conferences and meetings involving over night stays. All conference and meeting equipment also needs to be brought into the Club. Raymond Terrace has the facilities and supporting infrastructure for mid market day and residential style small meetings but does not have the capacity to accommodate conferences requiring breakout rooms. 89

91 7.3 Competitive Environment The conference and meetings market is highly competitive. Locally, Port Stephens is primarily competing with Newcastle and Hunter Wine Country. For the market that will drive out of Sydney, Port Stephens is competing with venues in the Hunter, Central Coast, Blue Mountains, Southern Highlands and Illawarra areas. For organisations looking to meet on the NSW North Coast, Port Stephens is competing primarily with venues in Port Macquarie and Coffs Harbour as well as the new resort venues at Kingscliff on the far North Coast. Newcastle City Newcastle City has more than 20 venues that provide purpose built, quality conference, meeting and functions facilities, with 9 of these venues being waterfront. Eleven venues have on site star hotel and/or hotel apartment accommodation. There are 4 hotels / serviced apartments projects under construction that will come on line within the next months adding to the supply of conference and meeting venues available. There are 5 venues in Newcastle that can accommodate over 1,000 delegates, the largest of which is the Entertainment Centre with the capacity for 6,200 delegates theatre style. Only one of these larger venues, Wests Leagues Club, has on site accommodation. Newcastle City has an active Convention Bureau that has been successful in attracting large conferences and meetings to the City. The Bureau handles around inquiries per year from organisations looking to hold conferences and meetings in the City and surrounding area. This is in addition to the business that contacts venues directly. Most of the larger venues and hotels have dedicated sales and marketing staff who actively target the market. The Bureau is membership based, and has members from Newcastle, Hunter Wine Country, Port Stephens and Lake Macquarie. It runs a successful Ambassador program where it works with academic, business and professional institutions and organisations to bring conferences into Newcastle. Hunter Wine Country Hunter Wine Country (centred on Pokolbin) offers an extensive range of conference and meeting facilities, including 15 hotel resort properties with purpose built conference meeting rooms. There are also a range of stand alone function and meeting venues at the various wineries, restaurants and licensed clubs in the area. The area can accommodate conferences of delegates. The area has just over 2,000 accommodation rooms, with a further 11 properties proposed or under construction. If these properties all proceed (which is unlikely) they will provide additional conference and meeting rooms, plus around 500 additional hotels rooms and up to 1,200 villas. Wine Country primarily targets small to medium size corporate and association conferences and meetings as well as the incentive business market. The area is attracting an increasing number of tour groups of conference delegates (primarily international) who are attending conferences in Sydney and visit the Hunter as a day trip as part of the conference program, and/or as a pre or post conferences tour. Hunter Wine Country has a Convention Bureau as part of its Tourism Association. The Convention Bureau functions solely as a service, handling enquiries received from organisations looking to hold conferences in the area. It also organises the conference tour programs for conferences being held in Sydney. The Bureau does not have the budget or resources to chase business. 90

92 7.4 The Market Port Stephens The market attracted to venues in Port Stephens includes: Tomaree Peninsula: Corporate meetings and training seminars these are main residential meetings involving 1 3 night stays. Corporate business is coming primarily from the Lower Hunter and Sydney. Government agency meetings both internal and inter agency meetings. This is more a mid range market and includes both day and meetings involving overnight stays. Smaller associations. Conferences and meetings are primarily a mid week market. The market has been seriously affected by the global financial crisis. Peppers amalgamation into the Stella marketing network has also affected the local market, as the property no longer has dedicated sales staff. Peppers also has to compete internally with a range properties, some of which are lower cost venues. Horizons is in a similar position. Lemon Tree Passage The meeting market is small with the LTP Bowling Club attracting the occasional day meeting from businesses in the Williamtown Tomago area and occasionally from the industrial estates along the Hunter River. Murrook Murrook primarily attracts day meetings from Government Agencies, welfare organisations and indigenous groups, that are looking for a budget venue that is readily accessible to Newcastle and Port Stephens. Some of these meetings involve delegates or speakers that fly in through Newcastle Airport. Raymond Terrace Raymond Terrace attracts both day meetings and residential workshops and training sessions. Most of the groups are small, around delegates, with the occasional group of Most business is generated locally from the Raymond Terrace area, Tomago, Williamtown and businesses from the western suburbs of Newcastle. Newcastle & Wine Country Newcastle City has concentrated on building new business for the area. The City has focussed on building the association market, primarily targeting organisations that have links or themes associated with the City. It has been very successful in building the academic and research markets attracting State, National and international conferences and meetings. As air services to the region expand, the City will be very well placed to build both the National and International professional and academic association markets. It will also become a viable alternative to Sydney for national corporate meetings, offering a similar standard product but at more competitive rates. At present Newcastle is experiencing accommodation capacity constraints. This mitigates against building the corporate market which has a relatively short booking lead time (as opposed to the Association market which generally locks in dates 1 to 5 years ahead). Most of the hotels in Newcastle are targeting the small corporate meetings market, primarily out of Sydney. This is direct competition to Port Stephens. Newcastle is located closer to Sydney. The properties are also newer and more closely orientated to the needs of the business market. Most properties have dedicated sales and marketing staff, either in house or through the chain, that are very active in the market. Hunter Wine Country is positioned as an up market incentive based conference destination. It primarily attracts corporate business, professional associations and associations that have a strong social networking focus in which recreational activities are important. Companies often perceive the destination as a reward for staff. It is also popular as a retreat location for executive meetings, strategic planning seminars etc. 91

93 7.5 Outlook and Opportunities for Port Stephens The conference and meetings market to the Lower Hunter region will continue to grow, with Newcastle positioned to become the leading conference destination outside of Sydney. As air services expand into Adelaide, Perth, Hobart and Darwin, Newcastle will be ideally positioned to target National conferences (particularly those that rotate between the States) offering a cost competitive alternative to Sydney. Newcastle can offer both a city and beach experience (without the congestion of Sydney) with ready access to the Hunter wineries. Likewise the expansion of air services will open up the market for Hunter Wine Country, particularly for corporate business from companies that have interstate offices. Both Newcastle and Hunter Wine Country have the venues, infrastructure and resources in place to grow their markets. In addition to the activities of the Newcastle Convention Bureau, most of the venues in both areas have sales and marketing teams working to build business. In contrast, Port Stephens does not have the same depth of product or the resources. While PSTL has a Business Events marketing group, this group does not have the resources to compete head on with either Newcastle or Wine Country. The opportunities for Port Stephens (primarily the Tomaree properties) lie in: Establishing a marketing relationship with Newcastle, with Port Stephens being one of the subregional destinations that Newcastle promotes. The advantages that Port Stephens would bring to the mix are additional themes in relation to its defence and aeronautical sectors and the Marine Park. It would also provides Newcastle with a coastal resort destination as well as a destination for team building conferences and meetings that are looking for outdoor and soft adventure activities. For the international market, Port Stephens also provides the opportunity for dolphin and wildlife / koala viewing. Establishing Port Stephens as a pre and post conference tour destination and also as a day trip destination for conference delegates and partner programs. Targeting the regional conference and meetings market drawing from the Hunter Valley (including the mines) and the Central Coast. Within the Region, the Newcastle CBD venues and the Wine Country Resorts are perceived as being up market, expensive destinations. Newcastle also has a reputation of being booked out with accommodation being difficult to find (particularly for groups) and over priced. There is opportunity for Port Stephens to position itself as a mid priced destination that offers a range of 3.4 to 4.5 star reasonably priced venues. It also offers a beach / resort experience rather than the city experience of Newcastle. The other local market is the regional meetings market, in which organisations (eg, banks and financial institutions, retail chains, employment agencies, government agencies, local government etc) bring together their employees from throughout the area for briefings, training etc. Port Stephens is potentially a cost effective and attractive location for these type of meetings. Organisers are generally looking for more mid range, reasonably priced venues, particularly for training and sales workshops and seminar. Targeting regional functions there are a range of organisations that hold annual Christmas and/or end of financial year functions, as well as functions as rewards for staff performance. Due to drink drive and employer responsibility considerations, companies sometimes hold their functions at venues with accommodation and book rooms for staff (incentive / reward). Port Stephens properties are ideal for this type of business. 92

94 8. EVENTS Events form part of the attraction and activity base of Port Stephens and contribute to building visitation, reducing seasonality and increasing the profile of the area in the marketplace. For nearly 11 months of the year the tourism sector in Port Stephens operates with excess capacity, with events being one of the tools that can be used to address this. 8.1 Events in Port Stephens The main events for each locality within Port Stephens are summarised in the following Table. While the scale of events between the Tomaree Peninsula and the other localities in the LGA is very different, the visitation generated by the events in these localities is just as important to the local business communities as the major events are on the Tomaree Peninsula. Table 8.1 Main Events by Locality Port Stephens LGA. Event Timing Estimated Attendance Tomaree Peninsula New Years Eve at the Marina New Years Eve 5,000+ Nautilus Boat Insurance Interclub Game Feb March 200+ boats, 1000 anglers + family & friends Fishing Tournament 14 days Club Marine Trailerboat Sports Fishing Tournament March 1 weekend 400+ boats, 1500 competitors + family & friends spectators Sail Port Stephens April 1 week boats 750+ competitors + family & friends Port Stephens Golf Cup May 6 days Up to 240 competitors Triathlon NSW Club Championships May 1 day 500+ Blue Water Country Music Festival June 4 days 20,000 30,000 Port Stephens Classic Golf Tournament August 6 days Up to 240 competitors Shoal Bay Jazz & Wine Festival September 1 day Celtic Festival Sept 1 weekend Port Stephens Whale Festival Sept / Oct 1 week Tastes of the Bay Food, Wine & Jazz Nov 1 weekend 9,000 10,000 Air Show Biennial 1 day 15,000+ Raymond Terrace RT Open Tennis Tournament Easter 3 days 500+ RT Junior Open Tennis March 2 days 500+ Tilligerry Peninsula Tilligerry Arts Show & Festival Nov 1 weekend Tilligerry Motorama Car Show May 1weekend cars Karuah Timber & Oyster Festival March 1 weekend Karuah River of Music Blue Grass Festival May 1 weekend visitors Karuah Fun Run May 1 day Attendance figures are estimates provided by the Event Organisers / local community groups Tomaree Peninsula The Tomaree Peninsula hosts 12 significant events each year, plus the Airshow, which is expected to become a biennial event. These events bring 50,000+ visitors per year into the area, many of whom stay one or more nights. There are also a diverse range of small events markets, entertainment, bowls tournaments and sporting activities that generate visitation. 93

95 With more than 2,500 rooms in the area, the Tomaree Peninsula has the accommodation capacity to cater for large events. The ability to grow the event sector is however limited by the scale and capacity of the venues and locations available, and the physical ability of the area to accommodate large numbers of people. For large events, access and parking are major issues. The strongest potential lies in growing water based events (surf carnivals, surfing tournaments, wind and kite surfing competitions, boating and fishing etc) as the land based venue and support infrastructure requirements are relatively limited. Likewise, golf and bowls tournaments bring visitors into the area without creating significant logistical problems. Raymond Terrace While Raymond Terrace does not have a major tourism event, it regularly hosts a range of large sporting, equestrian, motorcycle, boating and water skiing events, including two high profile tennis tournaments and at least one State or National power boating event each year. The Business Association is exploring options to value add to existing activities and develop a signature event and/or a program of smaller events for the town. The town has the space and infrastructure to cater for large day events and for medium sized weekend and longer stay events. Tilligerry Peninsula The main event on the Tilligerry Peninsula is the Annual Arts Show and Festival. This is a local community event which is similar in format to other events in the region rides, stalls and entertainment. The potential to grow the event in its current format is limited. The Tilligerry Motorama car show is growing in popularity each year, with cars from all over NSW coming into Lemon Tree Passage for the event. There is a motorhome club (20 rigs) booked in for the show in The event is recognised by vintage and veteran car clubs and associations and is included in the annual Shannon calendar of car events. This event has the potential to grow quite significantly and to be used as the impetus for growing the car club rally market. Lemon Tree Passage also hosts an annual darts tournament, which is attracting an increasing number of competitors. The caravan park is working with the Bowling Club to grow this event. The Tilligerry Peninsula has a number of areas that are ideal for outdoor events MacCann Park, the foreshore reserve adjacent to Cook Parade and the sporting complex at Mallabula, with the Bowling Club having a large auditorium for event functions. The limited supply of accommodation is the main constraint to growing the event market. One option for the Motorama would be allow temporary event based camping on MacCann Park or at the sporting complex (showers, toilets etc are available). Karuah Karuah has three main events each year, the Timber & Oyster Festival, River of Music and the Fun Run, as well as a number of small events such as the Car Boot Sale (200+ visitors), Arts & Craft Sale, Carols by Torch Light (500+) and the annual Garage Sale. The River of Music and the Fun Run are growing in popularity and have the potential to become more significant events. The Music Festival could out grow the accommodation available in the town, with the need to use the oval (or other open space area) for event related camping. The Timber and Oyster Festival is tired and needs to be revamped. The oysters need to become a more significant feature of the event. Once the boat ramp is upgraded, the Chamber is considering running some form of fishing competition. The community needs advice and assistance, particularly with marketing and promotion, to take its events to the next level. 94

96 8.2 The Event Framework The benefits of a strong program of events has been recognised in a number of the strategic plans prepared for the LGA and individual localities, with the need to build events, both for social and economic development purposes, forming part of the strategic actions. The Council Plan sets the direction for developing both community and tourism events. For cultural events (primarily local community events), Council s objective is to increase the range of Council sponsored or supported events in the LGA from 12 to 21. Funds and resources have been allocated to achieve this. Under Economic Sustainability, one of the objectives includes boosting Port Stephens tourism industries by broadening the market base, including diversification through events. There are three sections in Council currently involved in building the events sector: Economic Development Unit the Unit is responsible for developing both tourism and community events. Through Events Port Stephens, the Unit is implementing the Tomaree Events Strategy which focuses on growing major events that have the potential to generate significant economic benefit for the LGA. The Unit is also working with locality based groups to implement their Community Economic Development Plans, which include strategies relating to event development. Business Port Stephens / Council also supports Nelson Bay Town Centre Management, which organises a number of Nelson Bay events and has the development of events as one its strategic directions. Recreation Services The Unit has formulated and is implementing a Sports Tourism Marketing Plan to attract sporting events to the LGA. Community Services As part of Council s Cultural Sustainability directions, funding and resources have been allocated to grow cultural events within the LGA. Council has an event calendar on its website, however the calendar has very few events listed and does not appear to be being used by local organisations to list their event. A number of tourism and business operators organise events to build visitation. While most of these events are small and targeted (eg the events organised by Murrays Brewery and Oaks Pacific Blue Resort), there are a number of events organised by d Albora Marina that bring significant numbers of visitors into Nelson Bay. A number of tourism operators were involved in the development of the Tomaree Events Strategy and are supporting its implementation. A group of tourism operators is also responsible for organising the Whale Festival. Port Stephens Tourism Limited (PSTL) has played a minor role in the events sector, There are no actions relating to events in the PSTL Strategic Plan. In the annual Marketing Plan prepared by PSTL and adopted by the Joint Venture Committee, PSTL undertakes to assist with the promotion of all local events (irrespective of whether or not they are members of PSTL) but not to provide resources for events, leaving this role to Events Port Stephens. Under the Plan, PSTL is committed to include all events on the tourism website and wherever possible promote events in relevant campaigns (note: Council / Tourism Unit not PSTL owns and maintains the website, with PSTL not involved in promotional activities). PSTL occasionally provides small sponsorship grants ($1,000 $1,500) to events. These grants appear to be made on an ad hoc basis without reference to Events Port Stephens or to any evaluation of the best use of its sponsorship funds. The Tourism Unit has not been involved in the preparation of Council s various event strategies. The Unit maintains an Event Calendar on the tourism website. The calendar is not comprehensive, with very few non Tomaree events listed. Two significant events for the area, Sail Port Stephens and the Triathlon, are not listed on the major events page, nor is the next Airshow event listed. The website needs to be expanded to include some form of banner or flashing alert of forthcoming events with a link to event website. The level of support provided by the Tourism Unit in promoting events appears to be variable with some event organisers advising that they had received some assistance, while others (primarily nonmembers of PSTL) have received no support. Given that events are designed primarily to build visitation, 95

97 the Tourism Unit should be playing a far more active and supportive role as part of its destination management responsibilities. The core elements of the various strategic plans advocating the development of events are summarised below. Tomaree Events Strategy The Tomaree Events Strategy was prepared in 2007 to provide a framework to grow the events sector on the Tomaree Peninsula, with the primary objective being to build visitation outside of the peak holiday periods. The study confirmed that Port Stephens had the potential to significantly grow the events sector. The Study recommended strategies to: Generate economic and social benefits for the community by growing existing events and developing new events, including growing sports and business events markets. Build industry and community partnerships, developing the skill base in event planning and management. Develop integrated and effective systems in relation to the event approval process. Improve the infrastructure and support available for events. As a result of this Strategy, Events Port Stephens was established within the Economic and Tourism Unit, and an Event Coordinator appointed. The Coordinator s position is jointly funded by Council and the Department of Industry and Investment. Events Port Stephens is in the process of implementing many of the recommendations of the Strategy with the focus being to put in place the framework, systems and support mechanisms needed to assist event organisers with the planning and approval process and to provide logistical support. In developing events, the Unit is focussing on events that bring 500+ visitors into the area who will stay 3 or more nights, and generate, or have the potential to generate, $500,000+ for the local area. The events have to be run professionally and be self funding or have the potential to become self funding. Events Port Stephens is planning to build a number of the existing events on the Tomaree Peninsula into a series of activity based high profile events, and to then progressively add new events under this branding. The first event being developed is Sail Port Stephens, with this being the pilot for the program. Other events will include Fish Port Stephens, Golf Port Stephens and Surf Port Stephens and possibly Cycle Port Stephens. Opportunities for building on this theme include: Wind surfing, wave surfing and kite events, with these events often being held in winter and spring due to the strong prevailing winds. Water skiing, wakeboarding and power boating events at Raymond Terrace. Scuba diving a Dive Port Stephens Underwater Photographic Competition. Bowls utilising all the major bowling clubs in the LGA Raymond Terrace, Lemon Tree Passage, Soldiers Point and Nelson Bay. This could include both traditional bowls and barefoot bowls events. Events Port Stephens is also providing support and assistance to the Whale Festival. Neither Events Port Stephens nor Council are not looking to own events. While Council has some funds that can be used for events, the emphasis is on providing support and in kind assistance (eg garbage removal, cleaning etc) rather than cash. 96

98 Sports Tourism Marketing Plan The objective of the Sports Tourism Marketing Plan is to use the quality sporting facilities and infrastructure in the LGA to attract a diversity of sporting events to generate direct economic benefits and positive marketing outcomes for Port Stephens. The Plan focuses on targeting non elite sports that have high participation rates, for example, school and amateur association based regional and State carnivals. Target markets identified by the Plan include: Field based sports Equestrian sports Beach / surf life saving sports Sailing Tennis The Recreation Services Unit actively bids for sporting events, with Council providing sponsorship for the larger events that bring visitors into the area. The Recreation Services Units needs to work closely with Events Ports Stephens and the Tourism Unit to ensure that the area achieves maximum benefits from the events attracted. There may also be opportunities to grow some of the sporting events into signature events for the LGA. Cultural Plan The development of a strong community events program is one of the four key directions of Council s Cultural Plan, with the event related strategies and actions including: Providing professional support to community groups involved in events. Develop resources, including an Event Ready toolkit to ensure that Port Stephens is event ready. Provide support with event planning. Explore opportunities for Council to provide in kind support and sponsorship for events. Develop signature events for each locality. There is considerable cross over between the actions proposed in the Cultural Plan with the framework, systems and support mechanisms that are being developed by Events Port Stephens. Maximum benefits will be achieved by both units working together. There will be a number of community events that have the potential to become significant events for the LGA. Ideally, both units should be involved in determining the longer term strategic directions and development strategies for these events, with Community Services working with the event organisers to grow the event and put in place a professional management structure, with the event transferring to Events Port Stephens when it is at the stage to go to the next level (ie move from a community to a tourism event). Council has allocated $60,000 per annum ($20,000 per ward) for the development of cultural events and activities. Nelson Bay Community Economic Development Plan The Nelson Bay Community Economic Development Plan recognises that events and tourism are crucial to the economic sustainability of the Nelson Bay CBD and surrounds. It has, as one of its 4 key actions, the need to develop a coordinated approach to events in Nelson Bay. Nelson Bay Town Management Inc Strategic Plan Nelson Bay Town Centre Management (NBTCM) has as one of its growth strategies, to identify and develop events and activities for the mutual benefit of the area. NBTCM organises the Blue Water Country Music Festival, Tastes of the Bay and Carols by the Bay. 97

99 Port Stephens Tourism Marketing Plan / Joint Venture Committee Position The position adopted in the Tourism Marketing Plan is to not allocate resources for event marketing or promotion, however all events will be listed on the Port Stephens Tourism website and that PSTL would assist in event promotion where possible. (Note: there is no reference to the Tourism Unit). 8.3 Issues Event related issues that have emerged during this study include: The development of events and the event strategies have taken place largely independently of the Tourism Unit. As such the strategies focus primarily on event development, with limited consideration of marketing and promotion, public relations / media exposure opportunities, and value adding and packaging. Perception that the Tourism Unit is not interested in events. It appears that for some events the Tourism Unit has provided no or minimal support as the people / businesses / organisations associated with the events were not members of PSTL. Confusion amongst community groups and event organisers regarding the structure of events at Council level should they be approaching Events Ports Stephens, Business Port Stephens (community economic events), Cultural Services or Recreation Services. Perception that Events Port Stephens was set up and resourced to run events in the LGA and therefore should be playing a more far active leadership and organisational role, rather than leaving it to under resourced and volunteer organisations, or to private operators. Lack of a major event venue on the Tomaree Peninsula. This is seen as a constraint to attracting the large entertainment style events that are driving visitation in Newcastle and Hunter Wine Country. The key issue is how many venues can the Region support. Rather than focusing on what is not available, or trying to duplicate what is already available elsewhere (and potentially splitting or weakening the market) the emphasis should be on capitalising on the assets that are available in the LGA to attract and host events. Lack of a strategic framework / policy for funding and sponsorship of events. For community events, the application process is considered to be daunting and onerous. Two event calendars, neither of which are comprehensive, nor provide the best format for publicising the events. For most events no or minimal mechanisms in place to collect data (eg for future direct marketing) or monitor results. A number of events are very similar to events in the surrounding area, rather than be original or innovative. Some events are also tired and need to be either revamped or phased out. The need to lodge a development application for some events (no clear policy on which events require a DA). The length of time involved in the approval process is also of concern. Volunteer burn out particularly in the smaller communities. 98

100 Nelson Bay Parking and access are major issues for large events held in Nelson Bay. A traffic management plan needs to be put in place with the plan addressing parking for event organisers and participants (eg stall holders, entertainers), parking for attendees (possibly park and ride arrangements), coach access and parking, and maintain access for residents and businesses. There is no area within the town centre to run events, with some traders opposing road closures. As a result, events are usually held on the foreshore, which significantly reduces the flow on benefits to the retail community. Reluctance by many operators and businesses in Nelson Bay to support events. Events are primarily designed to build visitation and drive business. If support from the business community is not forthcoming, then Council and other event organisers need to re evaluate whether they should continue to provide funds and/or resources. Tilligerry Peninsula Accommodation capacity constraints which limit the ability to grow events, particularly the Motorama. This can be addressed by provision of temporary camping. Need for temporary event signage / banners on Nelson Bay Road / Richardson Road to raise awareness. Need to revitalise the Tilligerry Festival. Karuah Volunteer burn out. Whether building events is the right strategy to concentrate on for growing visitation could limited resources be better employed? Need for temporary event signage on the Pacific Highway on either side of the Karuah by bass. Need to revamp the Timber and Oyster Festival. Accommodation capacity constraints. Raymond Terrace No quality promotional material / information on Raymond Terrace is available to use in bidding for events or providing to event attendees. Need / desire for a signature event for the Town. 8.4 Directions Forward The establishment of Events Port Stephens and the framework and systems being put in place to support and build the event sector will provide Port Stephens with a very solid platform for moving forward. The Event Co ordinator s position needs to become a full time, permanent appointment. Major Events The current strategy in relation to building the major events is supported. The emphasis should be on: 99

101 Marine events Port Stephens has a natural advantage in that it has a spectacularly beautiful setting, large water body that is clean, protected and safe, and good marine infrastructure and services. In addition, these events generally do not require a large land based foot print. Working with sporting / activity based associations preferably at State or National level and with commercial event promoters, to host State / National and/or high profile events. These events come ready made, enabling the focus to be on building participation and value adding. Sports and family focused events these type of events generate more room nights and activity based expenditure, and there is a far lower risk of anti social behaviour. Sports Events The principals of the Sports Tourism Plan are sound, with Port Stephens ideally located to attract a range of regional and State events. Once air services to all States are established, the LGA will be well positioned to target National tournaments and carnivals. Newcastle Airport is seeing growth in the number of junior State sports teams flying out Newcastle rather than Sydney and there is opportunity to market Port Stephens / Raymond Terrace as a cost effective training base for State teams before they fly out. The Sporting Tourism Plan is in draft format and needs to be expanded, completed and adopted by Council. Opportunities to support and capitalise on sporting events include: Collate information packs / produce information fliers (pdf format) for sporting event organisers to distribute to competitors and officials and/or put on their websites. Ensure that the Port Stephens Tourism Website address (once the information base is comprehensive), is given to the association / organiser to include on their website and on all correspondence. Provide an accommodation booking service. Put together a range of special deal promotions discount / added value vouchers. Provide local information guide / packs for distribution to all competitors where to eat, services pertinent to the sport (eg physio), attractions and activities etc. To maximise benefits from sporting events, the Recreation Services Unit needs to work with Events Port Stephens and the Tourism Unit. Local / Community Events While the local events held at Karuah and Lemon Tree Passage are small by comparison to the Tomaree events, they are very important to the local business communities. Two of the events, the Karuah River of Music and the Tilligerry Motorama have the potential to grow into significant events, and outgrow the accommodation available in the area. The markets for both these events will camp, and provision needs to be made to permit event related temporary camping at one of the local reserves. Any changes required to the planning controls should be initiated in the short term to enable the organisers to plan for growth. At present, the limited supply of accommodation is limiting the vision and forward planning of these events ie can t afford to get much bigger. There is also potential to grow the Karuah fun run, positioning it as a regional event. The Timber and Oyster and Tilligerry Festivals needs to be assessed to determine whether they can be revitalised and if they have the potential to develop as tourism events. For community events that have the potential to grow into significant tourism events, it would be desirable for the Cultural Services Officer to work with Events Port Stephens to formulate a strategic 100

102 directions / growth plan for the event. Community services should work with the organisers to grow the event and put it on a professional footing, with the event then transferring to Event Port Stephens when it is ready to go to the next stage. Involvement of the Tourism Unit As part of its destination management and market development roles, the Tourism Unit needs to play a far more active role in supporting events. The areas where the Unit could be involved are: Providing information for inclusion in the bid / event prospectus documents. Event planning providing input and advice from a tourism perspective identifying the opportunities to grow visitation and attract media coverage of the area, as well as business opportunities for tourism businesses. Coordinating accommodation bookings. Collating the information (electronic information fliers / brochure) for the event organisers to distribute / put on their websites for competitors and officials. A pro forma should be developed for each locality, with this up dated and tailored to individual events. Where required, providing information for inclusion in sample bags for distribution to competitors. Communication link with the tourism industry to ensure that operators are geared up for the event, and encouraging and coordinating the industry to provide promotional deals and packages (eg deals to encourage visitors to stay and extra night, or to come to back within 3 months). Coordinating promotional offers that can be distributed to competitors. Providing advice and assistance in event marketing and promotion, including suggestions and contacts for publicity. Where the opportunity presents, the Tourism Unit should organise media coverage and famils. Where the opportunity exists works with coach companies to package the event to bring visitors into the area. Promoting the event through the VIC and the Port Stephens website. Providing advice and assistance with data base development (for event marketing) and event monitoring. Suggestions for Additional Events Race Port Stephens build up a program of long distance / endurance style races, for example open water swimming (3 10km races), marathons, cycling, audax, iron man, kayaking / canoeing (could be undertaken on the Hunter River Maitland to Raymond Terrace), adventure racing. Develop an ultra race/s. There are a number of high profile endurance races (eg the Comrades Marathon and Marathon des Sables in Africa and the Ultraman World Championships in Hawaii) that draw hard core competitors from all over the world. Stockton Beach lends itself to a gruelling marathon or some form of dune dash. Target the wind sports events wind surfing, wave surfing, kite boarding. Lantern festival evening festival with entertainment, food stalls and a floating lantern parade down the River at Raymond Terrace. 101

103 Coordinate events, eg various bowls tournaments, to encourage people to stay longer in the area to compete in a number of events. Explore the possibility of developing events in Port Stephens in the lead up to or as a follow on from events in the Hunter. For example, runners in Sydney use the Sutherland to Surf race as a training run for the City to Surf. If there is no Masters or Veteran Games in the Hunter Region, explore the feasibility of building an event. Develop workshop / clinic style events in which high profile experts are brought in to run a series of workshops and field trips dive photography, bird photography, golf clinics. The Sturt Contemporary Craft summer and winter schools in Mittagong and the Textile Forum in Orange are examples of this style of event. 102

104 9. VISITOR FACILITIES & INFRASTRUCTURE Facilities, services and infrastructure needed to support tourism include: Signage Public toilets Parks, gardens and reserves / picnic facilities Walking tracks Cycleways Marine Infrastructure Dining and Shopping 9.1 Signage Signage plays a very significant role in how an area presents. It also forms part of the visitor information services network and is a significant marketing and promotional tool. To be effective, Port Stephens needs a comprehensive, integrated family of signs which are strategically located. The signage needs to include: Motivational and promotional signage to raise the profile of the area, develop brand / image recognition and to make travellers aware of the area and the attractions and facilities on offer. Operators sometimes erect large advertising signs along the highway corridor on the approaches into town. These can be effective if well designed (eg quality images) and maintained. In many instances however these signs are just visual pollution. Gateway signs important in creating a sense of arrival and making a visitor feel welcome. Gateway signs also help to create and re inforce an image or brand for the area. Ideally gateway signs should be integrated with landscaping to create a feature. The quality and the originality of the signs forms part of a visitor's first impression of the area. The relevance of, and need for, community signs at the gateway arrival points (eg Tidy Towns, Healthy Communities, Service Club signs etc) is questionable and needs to be addressed. Directional signage primary purpose is to ensure that travellers can find their way easily. Directional signage also provides re assurance and re inforces the motivational signage by creating the perception that the area has a lot to offer. Information signs on arrival in a new area, visitors frequently look for a roadside map so that they can get their bearings. They also look for the Visitor Information Centre i signs. Service signs international symbols for public toilets, accommodation, parking etc. Fingerboard signs are not as effective as the symbols. Interpretive signage / information this is particularly important at attractions and in gateway towns, as it provides the link between the town and the surrounding attraction/s. Advertising / shopping centre signage shop fronts, awning, footpath contributes to the atmosphere, vitality and presentation of a centre. Tourist / scenic drives signs / route markers Signage is a significant issue in Port Stephens, particularly signage along the Pacific Highway. It is recognised that Council has endeavoured to address issue. Summarised below are some of the signage issues and suggested improvements. These are 'first impression' observations and are not comprehensive. Signage issues in each of the localities are discussed in Chapter 11. The LGA needs a full signage audit, with the audit undertaken from the perspective of a first time visitor to the area. 103

105 Motivational and Promotional Signs Port Stephens has a large billboard on the Pacific Highway just north of the Hexham Bridge. Being on the eastern side of the road, the sign is not well positioned to attract the attention of north bound traffic. A more ideal location would be the site occupied by the Marketplace bill board or close by. Consideration should be given to a new sign if a suitable site becomes available. The proposed by pass will change travel patterns, with the challenge being to draw travellers off the Highway into Heatherbrae Raymond Terrace and possibly (depending on exit ramp locations) to the coastal areas of Port Stephens. Council / Raymond Terrace Business Association / PSTL should be looking to secure an appropriate site (or sites) for future signs, with this possibly being part of the negotiations with the RTA / Highway Upgrade Project Manager. Gateway Signage Port Stephens Council has in place themed, coordinated gateways signs at the entrance to the LGA and to each of the towns, villages and localities. Overall, the town, village and locality signs are very effective. In most cases, the scale fits well with the scale of the road and the visual corridor. The only issues are that the area around most of the signs is not maintained, with weeds obscuring the bottom panel (Port Stephens) and, from a distance, the 'o' in Port appears to be graffiti. Some of the signs are starting to age and may need to be replaced in the next few years. Budgets should be set aside for this purpose. The gateway entry sign on Pacific Highway just north of Hexham Bridge is not effective. It is the wrong scale for the location, being far too small (Note comparison to the size of the billboards and RTA signs in the area). The angle at which the sign has been placed (perpendicular rather than angled slightly towards the traffic) also reduces the impact. The Port Stephens panel on the bottom is difficult to read due to its positioning at the bottom of the sign, with the panel obscured by weeds. The relevance of the community directory signs and the tidy town signs at the entrance to some of the towns is questionable, with the signs being old and rusted and presenting very poorly. All community and advertising signs in the gateway corridors, that present poorly or are out of date should be removed or replaced. If not already in place, a condition should be include in all development approvals for signs, requiring that they be kept in good condition with a mechanism that enables Council to remove them if they don't comply. Directional Signage Locality and directional signage along the Pacific Highway corridor and from Newcastle, particularly for north bound traffic is exceptionally poor. The branding and all of the marketing undertaken is of 'Port Stephens. Travellers, both domestic and international, are looking for directions to Port Stephen. The only sign to Port Stephens is near Slaters Creek on the M3 Motorway, with the sign stating 'Port Stephens use Pacific Highway 20km ahead'. After seeing this sign, travellers looking for Port Stephens would be looking out for more signs to 'Port Stephens'. After crossing the Hexham Bridge there is a large RTA sign with towns and distances. Port Stephens is not included on this sign. In other areas a significant off highway destination is generally shown in brackets on the locality / distance sign. The 'Raymond Terrace Next Exit' sign just south of the Masonite round about is hidden behind trees and is difficult to see. Raymond Terrace is not included on the Barrington Tops exit sign. Just north of the roundabout, there is no listing for Port Stephens or Nelson Bay on the locality / distance sign. The Raymond Terrace Nelson Bay Exit sign, 1 km south of the Richardson Road exit is located up a bank and obscured by trees, with the Nelson Bay sign at the exit also obscured by trees. There is no brown tourist signage to either the Tomaree National Park (note precedence set by Barrington Tops National Park sign) or to the Stockton Sand Dunes. Given the significance of the sand dunes, they should be sign posted (both to assist travellers and to raise awareness). 104

106 While the RTA has resisted providing signage to Port Stephens (as there is no locality called Port Stephens), there has been a precedence on the M3 Motorway with signs to Lake Macquarie East and Lake Macquarie West. Similar signs, to 'Port Stephens South' and 'Port Stephens North', should be considered. The other precedence is on the Hume Highway on the approaches to Goulburn, where all villages accessed from Goulburn are listed, with the instruction to take the Goulburn exit. A similar sign, listing the main coastal destinations, should be considered for the Richardson Road exit. The existing signs for Nelson Bay should also include the official 'i' sign plus the distance. There is also a need for a locality (ie, Medowie, Nelson Bay, Shoal Bay, Anna Bay, Soldiers Point etc) and distance sign on Richardson Road, to provide reassurance for travellers. It is the same situation coming south with a lack of effective directional signs on the Medowie and Richardson Road exits. There is minimal directional signage to Port Stephens from Newcastle or from the feeder roads coming north from Lake Macquarie. The Pacific Coast Touring Route (which is being marketed internationally to the FIT self drive / campervan travellers) encourages travellers to visit Newcastle and then head north to Port Stephens. Without a GPS or good map, these travellers would not find 'Port Stephens' with the current signage. The directional signs through the central area of the LGA are relatively good, however signage is needed to the Stockton Sand Dunes. (Note: with the increased use of GPS systems, the need for directional signage will decrease). Information 'i' Signs / Directories Other than on the Mid North Coast Region information centres sign on the Pacific Highway just north of the Hunter River Bridge, there are minimal 'i' signs to the information centre at Nelson Bay. The 'i' sign should be included as a small icon on all signs to Nelson Bay. There should also be directional signage to the VIC from the intersection of Nelson Bay Road and Port Stephens Drive, at other key intersections on Nelson Bay Road, at the entry into Nelson Bay (Stockton Street) and at other key intersections (Stockton & Church Streets and Church and Government Road). There should also be signs from Shoal Bay and from Salamander Bay / Soldiers Point. The small fingerboard sign on he corner of Stockton and Church Street is barely visible. Information directories are also needed at key locations. This is discussed further in Section Facility & Service Signs It is recommended that the international symbols for facilities (eg toilets, picnic areas, boat ramps, accommodation etc) be used in all new facility signage and to replace the blue fingerboard signs when they are due for renewal. Interpretative Signage Interpretative signage throughout the LGA is relatively limited. The interpretative material in the bird hide at Seaham is excellent. Likewise most of the National Parks interpretative shelters in the Tomaree National Park are informative. Some of the interpretive signs in the King Street precinct in Raymond Terrace have been vandalised and need to be repaired. There is a need for interpretative displays / information for the Stockton Sand Dunes and the Worimi Conservation Lands at Birubi Beach, with the existing interpretative panels in the small park in Ocean Street, repaired or removed. There is also need for interpretative signage for the Marine Park at Nelson Bay and at other key locations around the Bay. Consideration should be given to erecting interpretive material on whales at the more popular shore based whale watching areas. 105

107 Tourist Route Signs There are a number of very old tourist route marker signs at various locations within the LGA. If these routes are still being promoted, then the route markers need to be updated. If not, then the markers need to be removed. Event Signs Infrastructure need to be put in place in gateway locations to display temporary signs and/or banners to advertise markets and events. Commercial / Advertising / Shopping Centre Signs Many of the signs on the Tomaree Peninsula and at Karuah are out of date and/or are in very poor condition. Council / Tourism Unit needs to work with the business organisations and directly with the businesses that are advertising on the signs to upgrade or remove the signs. Quality, coordinated signage can significantly improve the presentation of a shopping centre or locality and contribute to the atmosphere of the area. Signage needs to be addressed, with signage guide lines provided for main street / beautification programs. 9.2 Public Toilets The majority of public toilets on the Tomaree Peninsula are well past their use by dates and need either major refurbishment or replacing. Council is aware of this issue and is allocating funds to improve facilities. If replacing, consideration should be given to the design aesthetics and location of any new building. Most of the existing toilet buildings are very prominently located and detract from the amenity of the area. For toilets being refurbished, consideration should be given to modernising their appearance and providing landscaping or screening to improve their presentation. 9.3 Parks, Gardens, Reserves, Playgrounds & Picnic Facilities Parks, gardens and reserves are an integral part of the visitor infrastructure and the attraction base of the area. Parks, gardens, reserves etc contribute to tourism in a number of ways: Influences the visitor's first impressions and perceptions of an area. A quality, well presented park will often encourage travellers to stop and take a break, with repeat travellers often planning to take a break at a particular park along their route (eg Longworth Park at Karuah. Can become an attraction in its own right with visitors coming into the area specifically to patronise the park etc. Become part of the attraction and activity base of the area (eg for walking, cycling, picnicking etc) as well as a venue for entertainment and activities. Provide access to the foreshore / protect views. Parks and reserves are particularly important in areas where visitors are staying in apartments and units where there is limited open space. Within Port Stephens, most of the parks and reserves used by visitors in Raymond Terrace, at Lemon Tree Passage, Karuah, Seaham, Hinton, Fingal Bay and at Boat Harbour present well. A lot of the infrastructure and facilities in the foreshore parks and reserves along the bay foreshore from Soldiers Point through to Tomaree Headland is due for replacement, with many of the areas not presenting well. As discussed in Section 5.2, the most poorly presented reserves in the LGA are Biribu Beach and the bay side reserve 106

108 between Shoal Bay and the Tomaree Headland, with the Nelson Bay foreshore also needing significant improvement. Issues and opportunities with some of the parks and reserves that are popular with visitors are summarised in the following Table. The list is based on 'first impressions' and is not comprehensive. 107

109 Table 9.1 Opportunities and Issues with Parks, Gardens & Reserves used by Visitors in Port Stephens Location Park / Reserve Observations Opportunities Issues to be Addressed Nelson Bay Nelson Bay Maintenance & presentation (Council Foreshore already working on this) Shoal Bay Gan Gan Lookout Foreshore Reserve opposite shopping centre Foreshore Reserve to east of boat ramp Very popular overcrowded at peak times Should be a show piece for Nelson Bay Parking & congestion are major issues Only area near town centre suitable for events No visual connection with dolphins and whales no link with 'Dolphin Capital' positioning Superb view Under promoted Spectacular view Dinghies add to the character of the area should be retained Park furniture poorly coordinated and placed New picnic shelters are attractive and have minimal visual impact Toilet block very poorly placed dominates entrance into Shoal Bay if it is to remain needs an exterior make over KD Winning Sign needs to be removed makes minimal / no contribution to visitor information services High use area Gateway to the Tomaree National Park & Tomaree Headland Should be an icon but instead is one of the most poorly presented reserves in the LGA Parking area is too small, and difficult for coaches to access and manoeuvre National Parks Interpretation is good Interpretation of Marine Park Sculpture Walk marine creatures Waterplay area eg Townsville / The Entrance Views & orientation Implementation of a landscape plan for area Part of a boat tour of PS tie up and visit shops, eateries and bars. Iconic attraction for the LGA and for National Parks Signature coastal walk to Birubi Poor presentation vandalised / litter Trees growing up to obscure view Adhoc un coordinated approach to the provision of visitor facilities Visual impact of the toilet block KD Winning Blue Water Wonderland sign Picnic facilities & infrastructure need to be refurbished or replaced Toilet block needs to be demolished if replaced locate off the foreshore in a less prominent location needs to service headland car park as well Land degradation / erosion Weed infestation 108

110 Location Park / Reserve Observations Opportunities Issues to be Addressed Fingal Bay Foreshore Surf / beach events Need for infrastructure for events Reserve (power, water etc). One Mile Beach Fisherman's Bay Birubi Beach / Stockton Sand Dunes Beach Reserve Foreshore Reserve Reserve end of Ocean Avenue / Fitzroy Street Surf Lifesaving Club Precinct Better condition than most of the parks & reserves in the area Redevelopment of surf club has not maximised opportunities minimal consideration given to enhancing the capacity of the area to cater for major surf / beach events Tuckeroo trees used in car park landscaping should become theme for landscaping in the area Need for a pedestrian link between the beach and shops use Tuckeroos to create an avenue of trees & provide a visual link Cycleway should finish at shops Need bike racks at beach & at shops to chain up bikes Well known surf beach high profile with surfing community Area being abused possibly a party spot litter, vandalism Continue to expand / improve playground For the area to reinforce the eco / alternative / surf character of the area more of a bush / natural environment than the foreshore reserves along the Bay Need for an integrated landscape plan for reserve and town centre Improve appearance of toilet block Anti social behaviour this could be addressed by installing a gate on Hannah Road and closing the area at night. Land degradation partially caused by vehicles on the grass Very poorly maintained area Part of a coastal walk Toilets needs to be replaced Land degradation & weed infestation Access / parking area / facilities for beach users Redevelop as part of the redevelopment of Toilets in poor condition Area presents very poorly the Birubi Beach precinct Visitor facilities need to be replaced Interpretation panels due for replacement Very high use area attracting both international and domestic visitors one of the first places that international visitors to the Shire experience Gateway to Stockton Dunes world class feature should be an icon Area presents very poorly similar level of neglect and abuse as Tomaree Headland Reserve at Shoal Bay Need for quality visitor centre and facilities to interpret dunes, indigenous culture, ship wrecks etc Proposed redevelopment of Club House not capitalising on opportunities Gateway location quality attraction for the area world class interpretative facilities and visitor centre Multiple land owners responsibility for land management split between a number of agencies Lack of shared vision and coordinated management approach Facilities in very poor condition past their use by date Vandalism and graffiti Land degradation / weed infestation Traffic and parking congestion 109

111 Location Park / Reserve Observations Opportunities Issues to be Addressed Lemon Tree Foreshore Reserve Passage Cook Parade Raymond Terrace Bettle Park Very popular park Conflict between recreational park use and boat ramp users potential safety issues with positioning of visitor facilities in relation to access roads Playground facilities are at capacity in peak times need for additional facilities. No link with, or signage to the Mangrove Board Walk / Tilligerry Creek Koala Walk No where for visiting boats to tie up high tidal range with mud flats at low tide Koala theme of area not carried through in Park Forms part of the entrance corridor into Raymond Terrace. The open space corridor between Speedy Lock Lane and Kinross Park presents well Bettle Parks needs the same or a higher standard of presentation. Regional destination people (eg families, grand parents) with pre & primary school aged children an alternative to the more congested areas on the Tomaree Peninsula need for expanded playground & cycle ways Group picnic area eg local and regional sporting clubs, disability groups etc Boat tour activity node Gateway entry statement for Raymond Terrace Provide information directory for Raymond Terrace and LGA. Poor placement of facilities / design of parking area and internal road system Playground too small Need for a jetty or floating pontoon for boats to pull in Links between reserve and foreshore trail Condition and presentation of the Plane restoration could be used to generate publicity for Raymond Terrace.(are there other planes being retired that could also be placed here) Riverside Park One of the few places where people towing caravans can pull up and access toilets. Facilities are used by the touring van market. Aeroplane well known amongst the older domestic market. Park presents poorly. Presents well, very attractive Under utilised as a tourism asset. Could be used to draw visitors down main street Caravans / long rigs needs to be able to park. Not integrated with other foreshore open space areas Use to attract caravans and motorhomes into Raymond Terrace. Will need to provide long rig parking in town centre / riverside area for market to stop. Establish a foreshore reserve with walking / cycling trail to link Riverside Park to Kings Park and linking across to Roalyn Park alternatively, develop link along King Street historic precinct with landscaping etc. Provide facilities for boats to tie up, use park, Junction Inn for dining and explore main street (and Kings Street precinct if done up). Community / service club signs need to be removed Directory needs to be replaced. General appearance should be an entry statement Parking for caravans / long rigs etc Presentation of southern end of reserve (near boat ramp) needs to be improved. 110

112 Location Park / Reserve Observations Opportunities Issues to be Addressed Roalyn Park Water bird hot spot could be positioned as a waterbird sanctuary Popular with families with young children Not well linked with surrounding area Part of an integrated foreshore open space area used to extend length of stay in town Internal path system not designed to integrate with surrounding area. Seaham Boomerang Park Seaham Park Seaham Swamp Nature Reserve Being used by touring van / motor home market for overnight camping Good views Longer term projects once foreshore & Bettle Park addressed Presenting very well Shelter shed will be ideal for small groups when renovated Not linked to Seaham Swamp Nature Reserve or river Low key presence to Seaham Road nothing to encourage travellers to stop Walking trails not well maintained no directions to bird hide from entrance off Seaham Road Bird Hide and reserve area along East Seaham Road frontage is a quality asset very well presented Morning and dusk area alive with water birds spectacular sight Bird watching market in conjunction with Seaham Lookout Arboretum / Urban forest Explore opportunity to access small swamp to the east of the park as a wetland water feature for the park. Develop walking trail link to Seaham Nature Reserve / Tom's Cottage Bird watching market Coach tour market Day trip market from other areas of LGA Walking track / circuit around swamp with bird hides & possibly interpretation Reserve entrance & car park in Newline Road not signposted from William Bailey Rd Access to Nature Reserve / River Walking trails not linked, well maintained or signposted no directions to Tom's Cottage where track divides. Weed infestation need for bush regeneration 111

113 Location Park / Reserve Observations Opportunities Issues to be Addressed Karuah Memorial Park Area of park adjacent to Highway presents well. Need to improve facilities and presentation around boat ramp and area to west of the boat ramp. Vacant boat shed ideal location for gallery, eatery and boat / canoe hire. Regional boat ramp marketed to regional resident, fishing and boating clubs Commercial / tourist use of the boat shed Changing the perception of Karuah being a dangerous/difficult place to launch a boat Longworth Park Karuah Wetlands Very popular with Highway travellers. Need to continue to maintain to a high standard Remove community directory not an appropriate location. Signs on oyster farms adjacent to park need to be painted improve visual impact when viewed from the Bridge Adjoining Oyster Sheds & leases point of interest and a difference to other parks in the LGA Park ideal for groups eg coach tour groups (but access road is steep) Wharf infrastructure linkage opportunities Board walk does not go any where no access to wetlands to north of Franklin Street No interpretation Attractive highway transit stop pleasant place to stop / great place for kids. Develop pedestrian link to town centre encourage travellers to get takeaway and eat it in the Park. Include on PS boat touring route Opportunity to capitalise on oyster industry interpret oyster farming in the area, direct sales Wetlands walk through area to north of Franklin Street with link back to Memorial Park Poor presentation of adjoining oyster lease could be an attraction if better presented. Extending the board walk Providing interpretation Need to link to other reserves Sign difficult to see from Highway Area between start of walk & Karuah Centre not well presented 112

114 9.4 Walking Trails & Cycle Ways When on holidays, people often want to get out and about to leave their car and walk or cycle. Holidays are also a time for many people to decide to start a 'get fit' program. Walking and cycling are also no cost activities and a good way for visitors to explore the area. Families, and an increasing number of couples, travel with bikes. Some of the holiday homes and accommodation establishment also have bicycles available for guests. From a tourism perspective, the main opportunities for walking trails and cycle ways are: Tomaree Peninsula Long distance cycling route from Newcastle to Taree via the Tomaree Peninsula this is a long term possibility, with provision for cycling included in the progressive upgrade of Nelson Bay Road. Foreshore shared pedestrian cycleway extending from Soldiers Point to Shoal Bay and onto Fingal Bay, with the highest priority being from Bagnalls Beach to Shoal Bay. Coastal Walk from Tomaree Headland to Birubu Beach through the Tomaree National Park. Completion of the Anna Bay to One Mile Beach shared pedestrian cycleway and extension to Birubi Beach. Cycle track from Anna Bay / One Mile Beach to Nelson Bay. Raymond Terrace Shared pedestrian cycleway linking Riverside Park, Kings Park and Roalyn Park. Seaham Walking trail from Seaham Park to Tom's Cottage, with a loop around the swamp, connecting to the bird hide on the East Seaham Road. 9.5 Marine Infrastructure The marine infrastructure is discussed in Section In addition to the plans for the Nelson Bay Marina, the main priorities from a tourism perspective are: To provide the facilities and support infrastructure needed for the Lemon Tree Passage and Karuah Boat Ramps to become regional facilities. Jetty or floating pontoon at Lemon Tree Passage. To encourage boat touring on Port Stephens and on the Hunter / Williams Rivers, with a number of 'nodes' where visitors can moor and get out and explore, go to a café, restaurant etc. 9.6 Dining and Shopping Dining out and shopping for pleasure are two of the most popular activities undertaken by visitors. The shopping opportunities in Port Stephens are relatively limited. While the shopping malls at Salamander Bay and Raymond Terrace will meet the day to day needs of visitors, they do not provide a shopping 'experience'. The shops on the Nelson Bay marina and at Shoal Bay are resort and lifestyle focused and are popular with visitors. 113

115 The shopping experience provided by the Nelson Bay town centre is at best 'average'. Trading hours are an issue, particularly off season when businesses close early and don't open past lunchtime on Saturdays. The town centre needs a modern supermarket. The dining sector is developing. There is a concentration of eateries and bars in Nelson Bay, with the marina eateries being the more popular with visitors. Shoal Bay is emerging as a café dining precinct. The clubs are very popular, particularly for family meals. Dining options in Fingal Bay and Anna Bay One Mile are limited. The Junction Inn at Raymond Terrace provides an attractive modern eatery. There are no halal or kosher restaurants in the LGA., nor does the area have the dining and entertainment services generally sort by the Indian market. 114

116 10. INFORMATION 10.1 Overview Information services are an integral part of the tourism infrastructure. These services incorporate significantly more than just answering an inquiry or handing out a brochure. They are the communication link between the locality, the tourist trade and the visitor. Information services support the area s marketing and promotion and provide a direct service to both the tourism trade and visitors. Most importantly these services make a visitor feel welcome in the area and ensure that they are aware of the area s products and services. Visitor information services encompass: Visitor information centres (VIC's) and information outlets (manned and unmanned). Information delivery systems telephone, fax, Internet/ , mail. Print based and digital information brochures, maps, guides, videos, web sites, pod casts etc. The point of contact for the trade and potential consumers supporting marketing and promotional activities. Databases. Sign posting directional and promotional. The visitor information services provided by an area need to operate both externally and internally at the international, national, regional and local levels. They also need to meet the needs of the travel trade and visitors, to integrate with and support sales and marketing activities and to link visitors with products. Services that need to be provided include: Services to the Travel Trade Servicing trade inquiries including TNSW, North Coast RTO, travel wholesalers and agents etc. Media inquiries Collating data State Tourism Data Warehouse input and maintenance of the data base Trade briefings Hosting familiarisation programs Developing and supplying information kits Website development and maintenance Services to Local Operators Communication link between the trade and the operators Production & distribution of information on behalf of operators Monitoring trends dissemination of statistics and data Feedback on activities that could impact on business Advice and assistance Services to Potential Visitors Responding to telephone, fax, inquiries Providing and distributing information Accommodation / tour bookings Liaison between potential customers and operators 115

117 Services to Visitors in the Area Walk in inquiries accommodation, things to see and do, where to eat, road conditions etc Itinerary planning Distributing information Sourcing / referring accommodation Table 10.1 Summary of information services that need to be provided ν Important / necessary to provide 1 Desirable to provide FOR THE TRAVEL TRADE Service International National/State Regional Local Computerised database ν ν ν ν Website & Linkages ν ν ν ν Destination Promotional Material ν ν ν 1 Product Promotional Brochures 1 ν ν Point of Contact ν ν ν ν Sales calls / briefings ν ν ν FOR CONSUMERS Service International National/State Regional Local Point of Contact ν ν ν ν Computerised database ν ν ν ν Website & Linkages ν ν ν ν Destination Promotional Material ν ν ν 1 Product Brochures 1 ν ν VIC ν ν Information bays/maps ν ν Sign Posting ν ν Booking Service / Sales ν ν ν ν 10.2 Information Services & Infrastructure in Port Stephens Responsibility for Information Delivery Port Stephens Council is the primary coordinator and provider of information services in Port Stephens. The Tourism Unit is responsible for the operation of the Nelson Bay Visitor Centre and for handling trade and consumer enquiries. Until recently the Tourism Unit primarily provided information on PSTL member operators and businesses and did not represent non member businesses. While PSTL is primarily responsible for providing information for its members, with this function undertaken by the Tourism Unit on behalf of PSTL. PSTL also operates a website (serviced by the Tourism Unit) that members can log on to for information and up dates. Operators who are not members of PSTL do not receive information from either the Tourism Unit or PSTL. There is also no information going out to the Business organisations or to businesses that are not members of PSTL. 116

118 Council operates a Level 3 information outlet through the Telecentre at Raymond Terrace. There are also Level 3 centres at Salamander Village Bottle Shop and in the Tilligerry Habitat Centre at Tanilba Bay. Information services are also provided by: Newcastle Airport information and booking service in the arrivals area. Karuah Working Together information outlet at Karuah. DECCC Visitor Centre for National Parks and Marine Parks located approximately 100m from the Nelson Bay VIC. Nelson Bay Visitor Information Centre The Nelson Bay Visitor Information Centre (VIC) is located in Victoria Parade, Nelson Bay, adjacent to the entrance to the Nelson Bay Marina. The VIC is Level 1 accredited. The Centre operates with both salaried staff and volunteers, with around 15 volunteers on the books. The public area of the Centre is divided into three main sections, the service counter, brochure and display area and a small retail area with television screens with information on tour products and timetables. There are two internet kiosks in the VIC, and there is WiFi access in proximity to the Centre. Cards for the WiFi access can be purchased at the Centre, however this service is not promoted. There is no space in the Centre for visitors to sit down and use their own lap tops to access information. A few 5 minute parking spaces are available in Victoria Parade outside the front door of VIC. This space is popular with local residents who use it to access the automatic teller. Metered car parking is also available in the marina car park adjacent to the Centre and along sections of Victoria Parade. Coach parking is available adjacent to the Centre, however time limits apply. Other than the coach spaces, there is no parking for caravans and cars towing trailers. While parking for cars is generally not an issue (other than resistance to having to pay) mid week outside of school holiday periods, the area can become very congested on weekends, public holidays and during school holidays. The VIC can also become congested during these times with people queuing for information, to make bookings and to purchase 4WD beach access permits. In 2008/09 the door counter at the Centre recorded 145,165 visitors. The number of visitors has declined by 26% over the past 5 years, decreasing from an average of 538 visitors per day to 398. The Centre also handled 19,611 telephone enquiries in 2008/9, with 53% of these calls being for general information, 36.5% accommodation enquiries and 10% being business calls. Information is not available on the number of enquiries that the Centre responds to. In 2008/9 there were 362,363 hits on the Port Stephens tourism website. From 2004/5 to 2007/8 the number of website hits increased by 260% to peak at 693,733. In 2008/9 the number of hits fell by 47.8%. This is of concern and needs to be investigated. Door Count Av per day Telephone Av per day Web Hits Av per day 2004/5 2005/6 2006/7 2007/8 2008/9 % change 04/5 08/9 196, , , , % , , , , , % 708 1,029 1,543 1, Sales and bookings at the Centre are also down, with sales falling by 14.9% over the past 5 years. The value of tour bookings declined by 14% from 2004/5 to 2006/7 and has grown marginally in both years since 2006/7, with the value being down 12.5% on 2004/5. During the same period, on line accommodation bookings have fallen by 20.9%, with a corresponding decrease in the number of nights booked ( 18.3%) and the value of the accommodation bookings ( 13.8%). 117

119 Factors that are possibly contributing to the decline in enquiries and bookings include: Widespread use of the internet to research information the number of people travelling with laptops and mobile phones with internet access is also increasing. Significant increase in the number of people booking accommodation on line through the accommodation booking websites or direct to operators, with the belief that they will get the best deal. Some operators are listing lower rates on accommodation booking websites than they are on the Port Stephens tourism site. An increasing number of people are travelling with a GPS or using the GPS capability of their mobile phone. There is minimal directional signage to the VIC in Nelson Bay or on the Tomaree Peninsula, with the signs that are available on the roundabouts not being highly visible. Information Outlets There are three Level 3 accredited centres in the LGA plus an information outlet in the Karuah Centre in Karuah. The Raymond Terrace outlet is located in the Telecentre, with the centre open Monday to Friday during business hours. The information is well presented and maintained. The Telecentre staff have produced a number of information fliers on the Raymond Terrace area to meet demand for information on the local area. The Internet is available for visitors to use (fee for service), and staff will also look up information for visitors. The information available from the Tilligerry Habitat Centre is very limited and not well displayed. The Centre advises that it averages around 3 5 visitors per day seeking information, with demand being mainly for a map and brochure on the local area. The Centre produces a map which it sells for $2. The Information outlet in the Salamander Bottle shop was not inspected as the bottle shop was not open when the consultants were in the area. While there is an i sign on Soldiers Point Road, there is no signage on the bottle shop that indicates that this is the information outlet. The Karuah Centre is well located on the entry into Karuah. The Centre is manned by volunteers. It stocks a good range of brochures for both Port Stephens and Great Lakes as well brochures for other areas along the Pacific Highway. The Centre also has maps and publications as well as a limited range of local produce for sale. Although not in its area, Great Lakes supports the centre and provides brochures etc. The Centre would like to become Level 3 accredited. Airport Information Centre Newcastle Airport has an information centre and booking office at the Airport. The airport is currently handling around 1.2 million passengers per year which is forecast to increase to 4 million. The Airport charges operators a fee to display and distribute their brochures. While some Port Stephens operators have taken advantage of this service, the majority of brochures relate to Hunter product. Information Bays & Directories Information bays with maps and directories are often located at the gateway entry points, to enable visitors to stop and get their bearings. There are only 4 directories that are readily visible in Port Stephens LGA: 118

120 Bettle Park Raymond Terrace this directory is in very poor condition with most of it unreadable. It was interesting to observe a number of caravans and drivers pull up at the park and get out and try to read the map. Ideally the directory should be replaced, with this possibly being a project that the Chamber or one of the Service Clubs could take on. Karuah There are information directories on both sides of the Highway adjacent to the Bridge, in Memorial and Longworth Parks. These directories provide a map of Karuah with points of interest, a map of the surrounding region, a local business directory and a list of suggested day tours from Karuah. Shoal Bay Foreshore Reserve there is a very dated directory in the foreshore reserve at the entrance to Shoal bay (near the intersection of Shoal Bay Road and Government Road). The directory has a map promoting Port Stephens Blue Water Wonderland and an advertisement for one of the local real estate agents. This sign is out of place and providing minimal benefit (other than for the advertiser) There is a need for information directories at the main gateways into the LGA and on the approaches to the towns. Suggested locations include: Pacific Highway just north of the Hunter River Bridge to service north bound traffic. Raymond Terrace replace the map in Bettle Park. Salt Ash possibly in the service centre (Paul s Corner) or park at the Richardson Rd Nelson Bay Road intersection or, for the Tilligerry Peninsula, along Lemon Tree Passage Road. On Nelson Bay Road, to the west of the intersection with Port Stephens Drive this should be a large directory with sufficient parking to pull up with a caravan. The directory should be lit at night. Other possible locations include: Pacific Highway for south bound traffic possible in the rest area adjacent to the Medowie Road turnoff. Somewhere near the boat ramp / sporting fields in Raymond Terrace, accessible to travellers on the Seaham Road. On Nelson Bay Road near the southern entrance to the LGA (Fullerton Cove area). Road coming out of the Airport, so that travellers in rental cars can pull over and get their bearings. Websites Websites are now the first source of information used by consumers in researching destinations. Most holiday searches generally start with a location or destination. The two main sites that are likely to be used by domestic travellers, particularly intra state residents are the Port Stephens Tourism site and the TNSW site visitnsw.com. If searching under North Coast NSW, the two key sites are likely to be the TNSW visitnsw site and the North Coast RTO site which directs viewers back to the Port Stephens Tourism site. As the first port of call for information on a destination, the website has to sell the destination the home page needs to capture interest and encourage viewers to spend time exploring the site. The website is well optimised and loads quickly. The first impression of the home page is that this is a commercial site set up to sell rather than being a site that motivates by bombarding the visual senses. Likewise going into most of the pages, the first thing that appears is the selection boxes rather than a motivational page. A good comparison is the Great Lakes site, which has a motivational page as the lead in to the selection page. 119

121 The site is not well set up to browse or provide the information that visitors are generally interested in. The selection boxes are somewhat confusing for someone who wants a complete list. Other issues with the site include: Accommodation have to enter a date before accommodation will list and then only the properties that have vacancies on those dates are listed. If All is ticked there is no logical grouping of the accommodation in terms of type or star rating. There is no accommodation listed for Raymond Terrace and only one caravan park listed for Karuah. Things To Do page only lists the commercial tour and activity based products there is no reference to free activities bush walking, cycling, snorkelling, picnic spots etc. The Coffs Harbour, Port Macquarie and Great Lakes sites all have a range of commercial and free activities things that people expect to do on holidays, activities that can be enjoyed by the whole family without having to keep putting their hand in their pocket. Attractions page only lists commercial attractions The site does not include information on the scenic beauty of the area enjoy the sunrises and sunsets, nor on the National Parks, beaches, the Port etc. Conference Page the page is of minimal assistance to conference organisers. There is no link to the conference planner, nor a summary of the venues available and their capacities. Most of the information provided in the introduction to each of the conference venue and service providers is not relevant to the very basic information that the viewer needs venue capacity, accommodation etc. For most of the venues, the viewer has to go through a number of pages just to pull out the basic information needed. Shopping this page works on the assumption that the viewer knows what type of shop they want to visit. It doesn t position the shopping centres (Nelson Bay, Salamander, Raymond Terrace etc) as destinations, nor does it promote the more alternative shopping the farm gate outlets in the central area of the Shire, the seafood and oysters, the local markets etc. Entertainment there is no listing of the entertainment available for the week. This should be put in each week as the lead in page for the venue listings. Our Region the information is very limited and Tomaree Peninsula focused. There is a limited description on Tilligerry and no mention of Raymond Terrace of the western areas of the LGA. There needs to be a page on each of the towns and villages that have something to offer as well as suggested touring routes. No information on the activities that people can do in the area and where they can do them and the infrastructure available to support them sailing, boating, water skiing, fishing, snorkelling, cycling, scenic drives, bird watching, koala viewing. Most of these activities are primarily free but provide the lead in to tour and charter operators and equipment hire etc, if people want to take it further. The main issues with this site are: Some of the descriptions about the area are inaccurate not capturing what the area is like. The information available is not comprehensive for example only 25 self contained properties are included, when there are over a thousand in the area. Raymond Terrace has only one B&B accommodation property listed, with no properties listed for Karuah. Properties and businesses listed in the wrong categories. 120

122 This website draws from the State Tourism Data Warehouse data base, which is the same data base that Tourism Australia draws on, and which the travel wholesale industry use. The information needs to be both accurate and comprehensive. The Tourism Unit staff need to spend time to improve the information on the area. Print Material While the VIC carries product brochure of members, the information available is relatively limited. The types of information that is missing includes: A good map of the area at present the VIC is distributing a commercially produced map that is dominated by advertisements, and promotes the location of the advertiser s business. It is also Tomaree focussed. Activity based information bush walks, cycle trails, fishing guide, activities with kids, 4WD areas etc. While staff have some of this information on sheets that they will photocopy, it is not on display in the Centre. Brochures / maps for Raymond Terrace, Tilligerry Peninsula and Karuah. Scenic drives, touring routes and trails (eg a farm gate trail) A good map of the Port a map used to be produced by the Waterways Authority but is now out of print. An around the Bay boat touring trail could be incorporated in the map, encouraging boaters to visit Lemon Tree Passage, Karuah etc. This map should also include information on boating on the Williams and Hunter Rivers at Raymond Terrace. Product Planners, Information Kits & Special Interest Fliers / Brochures As discussed in Section 4.6 there are opportunities to build the niche, special interest and group markets, primarily through direct marketing. The Tourism Unit has put together two product planners International Planner and a Conference Planner. Additional kits are needed. To be effective, the information available on the LGA needs to be tailored specifically for each target group. For example: The schools kit needs to have detailed information on schools programs that can be undertaken in the Shire and surrounding area, with these programs linked directly to the school curriculum. Risk assessments also need to be provided The coach kit needs to have suggested itineraries, event programs, information on accommodation that can hold a coach group etc. Fishing kit fishing map of the area, information on species, access, regulations etc 4WD / Soft Roading Stockton plus other 4WD areas and routes in the surrounding region, caravan parks and camping areas, references to maps that cover the area, information on Beach Permits, driving tips etc While the Information kits do not need to be glossy publications, they do need to be well designed and formatted and targeted to the information needs of the specific market segment. 121

123 10.3 Issues Raised by the Tourism Sector Issues raised by the tourism industry in relation to the information services in Port Stephens are summarised below. Most of the comments related to the VIC. Some of these issues are perceptions expressed by tourism operators, with the perception possibly being different from reality. If this is the case, then it points to a communication issue between the Centre and the tourism sector. Location of the Nelson Bay VIC, with most operators believing that it needs to be located out of town. This is discussed below. The VIC is not accessible to people towing caravans and trailers. The VIC is a Council asset paid for by rate payers, however PSTL dictates what goes on there. Information provided by the Centre is not comprehensive the practice of only providing information on PSTL members has come at the expense of providing comprehensive information to consumers and the trade. It was considered that staff were too focused on making sure that they do not provide information on non member products rather than focussing on meeting the needs of the customers. Customers expect that all information about an area will be available at an accredited VIC. There are a number of brochures and maps in circulation in the area. This has arisen because the VIC has refused to carry maps and publications that include non member businesses. Consequently, none of these publications are comprehensive, which is confusing for visitors and not professional. The member only policy has resulted in some good publications not being able to be displayed. The Centre staff are too sales focused and not information / customer service focused. The focus needs to be on promoting and motivating, not telling visitors to look at the screen and come back with a selection. Staff in the VIC are not familiar with all the products and services in the area. This is particularly the case with the volunteers. Unless a consumer asks for a business by name, the staff generally only suggest the ones that they are familiar with. There is a need for staff to undertake more famils and product training. VIC staff stay behind the counter rather than come out an engage visitors. The Counter is a barrier to communication. The setup costs for operators to take full advantage of the listing opportunities on the Port Stephens website is considered a barrier for small business. The tour booking service run by the VIC is duplicating and competing with a service provided by two commercial operators. The Tourism Unit are not adequately supporting the Level 3 Centres and discouraging other localities / businesses from applying to become Level 3 accredited. Issues with the Book Easy System for example it cannot accommodate places with a minimum stay requirement, nor does it work effectively for letting agents. The number of bookings that most operators are getting from the VIC / book easy system is minimal and not covering the cost of membership and being on the system. The VIC is not open in the evenings during peak season. 122

124 Location of the VIC Most of the operators are of the opinion that the VIC is poorly located and should be relocated out of town. The preferred option was to establish a Gateway Centre on the former sporting field on the corner of Nelson Bay Road and Port Stephens Drive. This was identified as the preferred location as it would service all visitors to the Tomaree Peninsula, be able to provide adequate car and coach parking, be purpose built and include interpretative displays on the area. The Centre would also be the track head for the Stockton Dunes, with coaches and tour participants meeting tour operators at the VIC rather than in the carpark at Birubi Beach. The other location suggested was Paul s Corner at the intersection of Nelson Bay Road and Richardson Road. There is need for information to be available both at the entrance to the Tomaree Peninsula and in Nelson Bay at the Marina. Possible options to meet this need include: Retain the existing VIC but supplement with a large Information Bay located near the intersection of Nelson Bay Road and Port Stephens Drive. The Information Bay would provide a directory of accommodation properties as well as contact details (web address and phone numbers) for the Port Stephens website and the VIC. Retain the existing Centre, establish an information bay on Nelson Bay Road and have a demountable VIC set up at the information bay during peak periods. Establish a new Gateway Visitor Centre on Nelson Bay Road on the approaches into Tomeree and provide an information directory at the Marina. Establish a new Gateway VIC and continue to operate the existing VIC or have a shop front or information booth at the Marina. Cost will be a major consideration and it is unlikely that Council would have the funds to establish a Gateway Centre. There may be some opportunity to offset costs by some form of joint venture with a developer or private operator. Another factor to take into consideration is that digital technology is changing how information is being sourced and travel booked, and as such the level of demand for VIC services may decline significantly in future years. The other unknown factor is the likely length of tenure that the VIC will have in its current location. The local officer from the Department of Lands advised that the land occupied by the VIC may be needed in the future as part of the re development of the Nelson Bay foreshore area. This should be investigated prior to Council disposing of the land that it owns on Nelson Bay Road, in case there is a need to hold the site for a future VIC Impact of Technology Changes in Information Delivery Over the past decade, the internet and digital technology has significantly changed the way that consumers source information, select destinations and products, and book travel. The recent introduction of 'smart phones' and GPS systems, and the widespread use of MP3 players is further changing these dynamics, particularly amongst the younger generations (primarily Generations X and Y). The changes that are occurring and the implications for information services in Port Stephens are discussed below. Internet The internet is now the primary tool used to source travel information. bookings have outpaced all other types of internet retail sales. World wide, on line travel In 1998, 16% of Australian households had internet access. By this has increased to 64%, with 67% of households in metropolitan areas having internet access and 57% in non metropolitan areas. In 123

125 December 2008, Australia had 7.9 million active internet subscribers, of which 6.6 million were households and 1.3 million were businesses. Just under 84% of internet connections are now broadband (compared to 16% in ). Increased reliability, faster speed, greater capacity to perform tasks and a reduction in cost are key factors in the broadband take up rate. 21% of broadband connections are wireless, with wireless subscriptions set to increase as the speed and coverage improve. 25% of Australians also access the internet through internetenabled mobile phones. Australians have embraced the internet with 89% of people now accessing the internet at least once a week. Of these, 55% use the internet on average more than once a day. People access the internet from a range of sources home, educational institution, workforce, internet cafes etc. A survey of Internet use undertaken by Nielsen in February 2008 found that the main activities performed on the Internet were s (98%), banking (72%), checking news, sport and weather (72%), paying bills (66%) and sourcing maps and directions (62%). Ways of using the internet and technology to access and disseminate information are continually evolving. More recent additions include: Google Maps maps, satellite images, photographic images, routes, directions, distances and travelling times. Trip Itinerary planning programs. Pod casts which can be down loaded onto MP3 players, smart phones and other hand held digital devices User generated content (blogs) both on websites and through the networking sites. Social networking sites such as Facebook, Myspace, Bebo, Twitter etc. Combined, the two most popular sites, Facebook and Myspace, have over 170 million active users world wide. It is estimated that one in two Australians use social networking sites and hold, on average, membership of 2 3 different sites. Travel specific networking sites such as Trip Wotif, Virtual Tourist, Lonely Planet Thorn Tree and Trip Advisor. These sites not only advertise destinations, accommodation, attractions, tours, events etc, they also provide forums where travellers can discuss their experiences providing a digital word of mouth referral system. Travel directories and booking systems. Mobile Telephones Mobile telephones are being increasingly used to access information. In 2006, the majority of Australians, aged 14+ years owned mobile phones, with the ownership being: Age Mobile Phone Ownership % % % % % (Source: Department of Broadband, Communications & Digital Economy) 124

126 'Smart Phones' (the Apple 'I' phone, 3G and Next G enabled phones) and Blackberries are the new generation of mobile telephones. These devices have operating systems that provide the ability to add applications. These applications include internet access web browsing, , diary organiser, navigation (GPS), media (music, photos, video) and access to documents (eg word, pdf, excel files). More than 50% of mobile phones in the market are now 3G or Next G connected, with 25% of Australians already accessing the internet through their mobile phone. In 2008 Smart Phones accounted for 23% of handset sales in Australia, with Smart Phone sales forecast to increase by 28.7% per annum over the next 4 years. Within 5 years the majority of mobile phones in Australia will be application based. From a tourism perspective, Smart Phones are being used in a number of ways including: Navigation with phones being GPS enabled (satellite positioning) or having GPS assist (triangulates position from communication towers). Internet access to source information and book travel, while travelling. Map applications (eg Google Maps). Map applications downloaded to mobile phones increased by 144% in the Audio information and tours information and tours can be down loaded from the internet. The information is GPS coded so that when the traveller passes a specific point, information is provided in audio form. Listening Posts locations (eg bus stops) which broadcast to mobile telephones (similar to the audio tour concept) there is a pilot program currently underway in Queensland. Transfer of information and images between phones. Tourism NSW has recently launched a dedicated mobile telephone information service (m.visitnsw.com) which enables mobile phones to access the STDW data base. (Another reason why it is important for the data on the STDW site to be comprehensive) GPS Systems In 1996, the USA granted permission for civilian access to its navigation satellites. This was followed by 9 years of development, with the launch of portable GPS vehicle navigation devices in Sales of devices have grown exponentially, with an estimated 0.75 million vehicle navigation devices sold in Australia in Sales for the first 6 months of 2009 were 35% up on the same period 2008, with sales in excess of 1 million devices forecast for the year. In addition most new mobile phones, digital cameras, laptops and PDAs are GPS enabled. The introduction of GPS devices is resulting in a decline in the number of requests for directions and, to a lesser extent, maps at VICs. Implications for VICs The role and function of VICs are changing, and will continue to change as new technologies emerge and travel by younger generations increases. Currently it is the older Baby Boomer and Seniors markets that are more likely to seek out a VIC for information. Changes that are occurring in the demand for information include: Reduction in requests for simple directions and an increase in the number of requests for more detailed information. 125

127 Customers are far more knowledgeable about the destination, often coming into a VIC with printouts from the internet. They often have attractions and activities in mind and ask for assistance with itinerary planning as well as reassurance that what is shown on the internet is accurate. Decline in bookings through the VIC booking systems while the number of website hits and pages accessed has increased substantially as consumers research information, the actual bookings are being made on the accommodation booking websites (eg WOTIF) or directly with the property (either via on line booking facilities or over the phone) rather than on VIC websites. On the trade side, some tourist associations are reporting a decline in membership as operators do not see value in their membership as most bookings and enquiries are coming via the internet. Changes that are being made at VICs to capitalise on the digital technology market include: Availability of internet terminals in the VIC VICs as WiFi hotspots Data being increasingly stored and available digitally Quality websites, with the web address being the main call to action in promotional material. Investigations into and introduction of downloadable applications and information IT training for staff, including training in data base development and applications, and e.marketing Increase in resources allocated to data base development, electronic marketing and website monitoring and maintenance 10.5 Directions Forward The immediate priorities are: To ensure that the information on the LGA is comprehensive and accurate. To ensure that the data on the Port Stephens website and that entered into the STDW data base is comprehensive and accurate. Note: The new Tourism Australia Tourism Exchange Australia and Open Booking Exchange Program (TXA OBX) draws on the Australian Tourism Data Warehouse data base, which in turn draws on the NSW STDW data base. As such it is important that information on Port Stephens in the data base is accurate, comprehensive and kept up to date. This should be followed by: Further developing and improving the website addressing the shortcomings outlined in Section Checking the accuracy and comprehensiveness of the information on Port Stephens on other popular travel websites. This needs to be on going. Developing a strategy / program to capitalise on the opportunities afforded by the internet and digital technology. This may require changes to the staff structure and the skill base at the VIC. Reviewing staff and volunteer induction and training programs and putting in place a famils program for staff and volunteers. Ideally the volunteer program should be phased out and possibly be replaced with a trainee program that draws on Government subsidies for funding. Improving and expanding the range of information available for visitors including a quality map, activity based information, and brochures / maps for each of the smaller localities. Review the information provided to tourism operators and businesses in the LGA. There is basic information that all operators should receive. PSTL may chose to provide more comprehensive information to members. 126

128 Review of the Level 3 Centres, to ensure that there are L3 outlets in strategic locations, that these outlets are set up to display the information professionally, and that the outlets receive adequate support and training from the Tourism Unit. Information directories need to be erected in strategic locations on the gateway into the LGA and in key locations on the approaches to the different localities. Council also needs to address the issue of location of the VIC. If it is to remain in its current position, then consideration should be given to a large information bay on Nelson Bay Road at the gateway to the Tomaree urban areas. Given the changes needed, it is recommended that Council continues to operate the VIC. Once the information services are operating to the standard required, Council could consider contracting out the management of the Centre. The management rights could be contracted to PSTL or another business or organisation. As part of the contract, the service provider would need to meet a set of requirements and performance criteria, including the requirement to represent all operators. 127

129 11. LOCALITIES, TOWNS & VILLAGES 11.1 The Potential Each of the localities, towns and villages within Port Stephens forms part of the product base of the area and has a role to play in building visitation and contributing to the visitor experience. In the east and the north of the LGA, the main attractions are the spectacular beauty of the Port and the coastline and the quality of the natural environment, while to the west it is the rivers and the rural scenery. Regrettably, in the east, the quality of the natural environment is not reflected in the quality of the built environment. This is particularly the case on the Tomaree Peninsula and along the Nelson Bay Road corridor, where the quality of the urban planning and design and the standard of development over the past 50 years has generally been low, with limited vision for the area. Council is endeavouring to address this through the Futures 2030 Strategy and other studies that are underway. For tourism, the dispersed settlement pattern in the LGA is a significant attribute. Firstly, it provides a marked contrast to the urban agglomerations along the Central Coast, Lake Macquarie and Newcastle coastlines, and marks the beginning of the North Coast. This is strengthened by Port Stephens location at the end of the Hawkesbury sandstone country, creating the impression that you are finally out of Sydney. Secondly, there is potential to establish each locality within the LGA as a destination and/or attraction in its own right, each with its own character and with something different to offer. Each of the areas is already attracting different markets, and this can be further developed to diversify and strengthen the market base of the area, reducing the dependency on holiday makers. In addition, the diversity of the different centres can be promoted as part of the attraction base of the area, encouraging visitors to move between areas and explore (eg a holiday maker with a boat staying at Shoal Bay can be encouraged to bring the boat across to Raymond Terrace and spend the day exploring the river, water skiing, go to the Hinton pub etc). This is similar to the approach adopted in the Northern Rivers region where the emphasis has been to differentiate the coast and hinterland areas, with the hinterland positioned as an attraction and as a day trip destination. This has been very successful, with the hinterland now becoming a destination in its own right, with the development of small eco style lodges, retreats and health spas. The raw assets are in place within Port Stephens to achieve this. In addition, much of the existing development in the main tourist areas is ripe for redevelopment, which provides the opportunity to influence the design outcomes. Likewise, the pressure for new development to accommodate population growth over the next 20 years, provides the opportunity to effect change. There is already differentiation between the areas. This needs to be formally recognised and consolidated into a 'vision, with the framework put in place to enable the vision to be realised. The points of difference, character and themes that are already evident are summarised below: Nelson Bay Shoal Bay Built urban environment medium density, with the density likely to be increased as older style housing is redeveloped. Lifestyle area Nelson Bay Marina, Shoal Bay shopping centre boutique shops, cafes and restaurants and bars. Activity node and meeting place. Nelson Bay focal point for the Bay activities. Fingal Bay Family holiday destination neat, tidy, safe. 128

130 Anna Bay One Mile The bushland area (former Gan Gan Army base and the Tomaree National Park) provides separation between the highly urbanised bay side environment and the more laid back beach style of the Anna Bay One Mile Beach area. This separation needs to be retained, with any development of the former Army Base being completely screened from the road, in particular the Gan Gan Road, with the Gan Gan Road retained as a 'forest' drive. Surf / beach culture Soft adventure / adventure 'Alternative' style accommodation eco lodges, back packers, Samurai Resort low rise, low impact developments in a bushland setting. Village atmosphere in town centre Bushlands Headlands and beaches Sand dunes Bobs Farm Local produce / farm gate outlets Wineries / brewery Attractions Shark and Ray, Barramundi Farm, Tilligerry Peninsula A 'village in a habitat' Tilligerry Conservation Area wetlands, wildflowers and forests providing the separation from the low standard, poorly presented development in the Salt Ash area. Koalas with this reinforced by the Tilligerry Habitat Centre, the Tilligerry Koala Walk and koala warning signs. Bush setting. Quiet, safe, protected Landscaping of the new housing development along Lemon Tree Passage Road, reinforcing the native habitat and wildflowers in the area. Tanilba House and Avenue of Allies Gates Karuah Karuah River, access to the upper reaches of Port Stephens Oysters Karuah Jetty Backdrop of the National Park, State Forest and Nature Reserves Karuah still needs to make the transition from a highway focused town to a river focused town. Raymond Terrace Service Centre / shopping centre Remnants of the historic river port / Kings Street Precinct Hunter & Williams Rivers Parks, Reserves, Gardens tree lined streets Quality developments Junction Inn & Kings Terrace Gateway to the rural west 129

131 Seaham Bird sanctuary Williams River Hinton Small, historic rural village Paterson River Historic pub, cemetery & bridge Rural scenery Proximity to Morpeth The potential of the different localities, towns and villages and their suggested positioning from a tourism perspective are outlined below. Issues that need to be addressed and suggested improvements and changes are also identified. (Note: Some of these issues have been raised in earlier sections of this report) Nelson Bay Nelson Bay is the main visitor destination in Port Stephens, with the town identified as a tourism town in the Lower Hunter Regional Plan. The town is the focal point for tourism in the area, with visitors coming into Nelson Bay for a variety of reasons to shop and dine, for entertainment, to access the marine tours and cruises, for information, to go to the beach and to enjoy the atmosphere. The marina, is the main attraction and activity node, bringing together shopping, dining and entertainment in a waterfront setting. While the town thrives during the summer school holidays, it struggles throughout the remainder of the year. Retailers are in the difficult position of balancing their merchandise mix to meet the day to day needs of the local community, while trying to attract the more lucrative tourism dollar. Some of the businesses do not present well, with customer service levels being low. The predominance of commercial businesses also creates dead spots in the centre. While visitors generally make their way from the waterfront into the town centre, there is not a lot on offer in the centre, to attract expenditure, encourage visitors to stay longer or generate repeat visitation. On subsequent visits to the area, unless they specifically need to visit a shop / business in the town centre, visitors are more likely to go directly to the waterfront or to Shoal Bay, for their pleasure shopping and dining and to the Salamander Shopping Centre for other shopping. Traffic congestion and parking are significant problems at peak times, with conflict between through traffic trying to access other areas of the peninsula and destination based traffic, as well as the volume of people trying to visit the town. There are also issues for the coach market, with no adequate provision for coach parking. These issues are being addressed by Council, with Nelson Bay Town Centre Management also endeavouring to improve trading performance. From a tourism perspective the main issues with the Centre are: Overall presentation of the area lack of vision and coordination. There are no design guidelines in relation to aesthetics, resulting in less than optimal outcomes for the centre. Parking while metered parking has been introduced on the waterfront to encourage vehicle turnover, the time limits bear no relationship to how people use the area. The time limit does not provide visitors with sufficient time to take a tour and to then dine or shop in the area. As it is people arrive back from marine tours to find that they have been booked. A simple solution to this problem would be to be able to buy a parking ticket for x number of hours (with the number of hours exceeding that available from a parking meter) when purchasing the cruise ticket a half day cruise 130

132 may entitle the visitor to be able to purchase a 6 hour ticket, with the time and date stamped on the ticket. Inadequate provisions for tourist coaches. Coaches need to be able to drop off and pick up passengers and also have somewhere to park while the group is on tour. No sense of arrival to the town the entry corridor along Stockton Street is not attractive. While there are dolphin / whale sculptures on the two roundabouts (intersections of Stockton Street with Church Street and Dowling Streets), these are the only visual reference to the positioning as the dolphin capital of Australian. There are no visual connections between the entry corridor and the waterfront, nor are there and strong visual cues at the Church Street Donald Street intersection or the Stockton Street Dowling Street roundabout that draw visitors into the town centre. In fact the town centre when viewed from these intersections does not appear attractive or vibrant there is nothing to attract attention or to stimulate interest (we ve got to have a look down there). Very poor directional and informational signage, including lack of visibility of signs to the Visitor Information Centre. The poor presentation of the waterfront (this is discussed in Section 5.3). Difficulties in accessing the VIC, particularly in peak times and lack of parking for caravans and cars towing trailers (see Section 10.2). Limited space for events and activities (see Section 8.3). There are significant divisions in Nelson Bay, between the town centre traders and the waterfront and between the different business, tourism and community groups. There appears to be a culture of blame and excuses on why things are not happening rather than taking the initiative to make them happen. If the town is going to move forward, the traders need to be working together, with Council taking a strong leadership role to raise the standard in the area Shoal Bay Shoal Bay is a popular activity node with visitors congregating both in the cafes in the shopping centre and on the beach. While improvements are occurring along the foreshore reserve opposite the shopping centre, the area would benefit from a coordinated approach. The toilet block is very poorly located and if it is to remain, needs to an exterior makeover. Signage in the area also needs to be up dated. The parcel of vacant crown land on the corner Shoal Bay and Government Roads, functions as a parking area for the shopping centre and the beach. Should this land be developed, consideration will need to be given to providing adequate parking in the area Fingal Bay Fingal Bay is very popular with the family market, with the area being relatively quiet and safe. The beach and island are spectacular, with this area being one of the most scenically attractive parts of the LGA. The area presents as clean and neat but lacks vibrancy. The new development with retail shops in Market Street should provide a more lifestyle focus for the area. Consideration should also be given to corridor tree planting, extending the Tuckeroos planted at the Surf Club along the foreshore area and then up Boulder Road to Market Street. The toilet block in the park needs a face lift. There may be an opportunity is to operate tours to Fingal Island, off the beach at Fingal. 131

133 11.5 Anna Bay One Mile Anna Bay One Mile Beach area has a beach surf culture atmosphere, with the tourist accommodation being eco style with small cabins in a bushland setting and caravan parks. The main attractions are: Stockton Bight (Birubi Beach and Stockton sand dunes) by far the main attraction (see Sections 5.2 and 5.3). One Mile Beach and Samurai Beach with One Mile being well known as a surfing beach. Tomaree National Park the headlands in the area are popular for walking and shore based whale watching. Boat Harbour protected bay with an ocean boat ramp. There is also a boat ramp at Fishermans Bay Presentation Gan Gan Road The drive along Gan Gan Road from Nelson Bay is very attractive, with the forests and wetlands providing a marked contrast to the suburbs on the northern end of the Tomaree Peninsula and sets the tone for the One Mile Beach area. It is very important to retain this drive, with any development on the former Army Camp site, set well back and effectively screened from Gan Gan Road. Access to the area from Nelson Bay Road via the southern end of Gan Gan Road is not as attractive. It would benefit from corridor tree planting (melaleucas trees) and the removal of out of date and/or poorly presented signs. To date, most of the development has occurred by way of feeder roads radiating from Gan Gan Road, rather than strip development along the Road. The actual urban interface with the Road is relatively limited and as such can be effectively managed. Strip development should be avoided with the road corridor protected and landscaped. The Melaleuca trees are a feature of the area and it is suggested that they be adopted as the feature street tree for the area, extending the clump of Melaleucas adjacent to Essington Way Callaghan St. There is a need for signage to the Stockton sand dunes at both the intersections of Gan Gan and Nelson Bay Roads, with good clear directional and advance warning signs at the entrance to the dunes. The current signs are not effective or attractive. Gan Gan Road it is important to protect this corridor to provide separation between the Anna Bay- One Mile area and the Nelson Bay area. Melaleuca Trees have been used effectively to screen development from the Gan Gan Road corridor. 132

134 Anna Bay Town Centre The Anna Bay shopping centre has the advantage of being quite compact with a village feel. It does not present well, lacking coordination and landscaping. Given the small size of the centre, the appearance and atmosphere could be changed quickly and effectively with a town centre beautification program. Design guidelines and/or a DCP also need to be formulated for the area to provide the framework for future development. Birubi Beach Stockton Sand Dunes The Stockton Sand Dunes are one of the main attractions of Port Stephens and are the most significant point of difference between Port Stephens and other NSW coastal destinations. The dunes also have a high profile in the marketplace. The Stockton product is being sold successfully in the international market place, with the area often the first stop for international visitors in the LGA. It is also the focal point for adventure based tourism activities in the LGA. As discussed in Section 5.3, this area presents very poorly, suffering from land degradation, graffiti and vandalism, with the facilities and infrastructure being well past their use by date. The area also suffers from significant access and parking problems. A joint Interagency Council approach to the resolution of issues and the redevelopment of the area to provide world class visitor facilities and interpretation is required. Boat Harbour The area presents well. There is opportunity to formalise and improve the headland walks. One Mile Beach Car Park The One Mile Beach access and car park area is attractive with mature trees on the flat, flanked by bushland. The area is however being degraded by anti social behaviour. Consideration should be given to installing a gate at the entrance and locking the area at night. The adjoining caravan park operator should be approached to manage the gate. Tomaree National Park & Adjoining Reserves The Tomaree National Park and foreshore reserves are one of the main features of the area, with the headlands being very popular for walking and shore based whale watching. In the Fishermans Bay Anna Bay area the interface between the Park and the urban areas is poor with weed infestation and the dumping of rubbish being problems. The interpretative shelter provided at Fishermans Bay is good, however the area around it and the toilet block is very degraded. The interpretation on the walk way near Birubi Point (off Ocean Avenue) needs to be replaced, as do the toilet blocks and picnic facilities in this area. A designated whale watching area should be identified, with the area having interpretive material on whales, similar to that provided in the Botany Bay National Park at Kurnell. Toilet block at Fishermans Bay needs replacing Information Plaques at Birubi Point need replacing 133