Sapphire Coast Tourism Ltd Business Plan

Transcription

1 Sapphire Coast Tourism Ltd Business Plan

2 Sapphire Coast Tourism Ltd Business Plan Introduction A strategic plan was released covering the years (see SCT website). Review of this plan was deferred until the financial future of Sapphire Coast Tourism Ltd (SCT) was determined. Bega Valley Shire Council was successful in gaining government approval for a rate levy to, amongst other things, support tourism. Council has now advised that $250,000 pa will be provided to SCT for a period of 20 years. With certainty of funding resources, SCT is reviewing its 2008 strategy and has presented the results as this Business Plan. Any plan must further the constitutional objectives of the company: The objects of the Company are: (a) to identify and promote the region s compelling visitor experiences to maximise the social, cultural, environmental and economic wellbeing of the community through sustainable tourism; (b) to establish a strategic framework for tourism in the region; (c) to plan and implement branding, marketing and promotion; (d) to conduct research and provide information, advice and support to improve the range and quality of visitor experiences provided in the region; (e) to provide advice to government, industry and potential investors on opportunities, servicing, facility and infrastructure requirements and sustainability; (f) to develop partnerships and relationships with other bodies which will assist the Company to achieve object (a). See the Constitution on: 2. State of the Tourism Industry 2.1 General The Sapphire Coast is a traditional summer coast holiday recreation destination focussed on the peak Christmas and Easter holiday seasons based mainly on infrastructure at Merimbula and to a lesser extent at Bermagui, Eden and Tathra. Historically about 96% of the visitors have been sourced from the domestic tourism market with a significant number from the Victorian metropolitan and southern NSW (and ACT) regions. The Sydney market is also significant. Tourism is now over half the region s economy, supplanting the traditional resource based industries of agriculture, fisheries and forestry. The Sapphire Coast is part of the South Coast Tourism Region. In domestic tourism accounted for 92.6% of tourism expenditure in the region, inbound (international) tourism 8.4%. (Tourism Research Australia Regional Profiles). South Coast region received almost 2.8 million domestic overnight visitors - down by 1.4% on year ending March Visitors spent 10.1 million nights in the region - down by 2.0% on year ending March 10. The region received 121,500 international overnight visitors - up by 12.6%. International visitors spent over 2.2 million nights in the region - up by 18.0%. (Travel to South Coast NSW region Year ended March 2011, Tourism NSW)

3 In South Coast region Wollongong tops the international visitor nights (1.2m) with Bega Valley second at 81,000 and Eurobodalla third at 78,000. Education accounts for 1.139m visitor nights, almost all of which is to Wollongong. The international tourist (non-education) visitor nights shows a significant result for Bega Valley. (Tourism Research Australia Regional Profiles) This result is confirmed by independent advice to SCT which shows that the international visitor estimate is a statistically significant increase, better than elsewhere in NSW. 2.2 The state of Australian tourism Domestic tourism is stagnant, and inbound tourism, while projected to maintain growth at about 4%pa, is part of a world market that is increasingly competitive. The biggest growth area in tourism is outbound the number of Australians travelling overseas has increased on average 7% pa since 1999 (in 2010 it was over 14%), boosted by an appreciating Australian dollar. Domestic tourism represents about three quarters of the value of the Australian tourist industry. Many regional economies are highly dependent on this sector where tourism has supplanted traditional industries such as agriculture, forestry and fisheries. Tourism Industry Facts and Figures at a Glance - May 2011, Dept. Resources Energy and Tourism Projections relating to the propensity for Australians to travel overseas holds little comfort for a turnaround in the domestic tourism outlook.

4 Travel by Australians March 2010 Quarterly Results of the National Visitor Survey, Tourism Research Australia 2.3 Implications for SCT Tourism The plan is straight forward: defend our existing market; and assertively develop new market-relevant visitor experiences. The majority of SCT financial resources will continue to be directed to the former and our creativity directed to the latter. It is embodies in the first SCT constitutional objective and represents the best approach to the long term health of the industry in the region to at least Traditional domestic (beach holiday recreation) The prognosis for domestic tourism is a serious prospect for a region traditionally relying on the domestic market for 96% of its tourism economy. Sapphire Coast is well placed to defend its market share, particularly over competitors for the Victorian metropolitan market. It is less well placed to compete with beach destinations in central and northern NSW. Defending market share in a long term contracting market is a significant challenge. Well over 90% of the SCT budget will be directed towards supporting the traditional market. In a strategic sense the very limited organisational resources have to be directed to highly targeted marketing and activities that value-add to the limited dollars available. For example strategic placement of media stories is a far more cost effective promotional outcome than purchasing limited advertising space. Accordingly a budget allocation continues to be made available for professional media engagement assistance. A high priority is developing partnerships with tourism industry, government and regional partners with mutual interests. SCT does not have a leadership role in tourism industry business promotion. The promotion of private businesses is a matter for those businesses and their representative bodies. Circumstances will arise where that promotion overlaps with the presentation of the region as an overall compelling visitor experience. In those circumstances SCT will participate in a program as its marketing resources allow.

5 One thing that there an abundance of is requests to fund tourism promotion. There is a steady stream of requests and it dealing with them constructively and diplomatically is a time consuming process for SCT. The Board leaves itself open to the criticism of indifference in not funding these pleas when the reality is often the proposal is off-brand, off-target market and offers little long term gain for the region. The Board will continue to allocate its limited resources to outcomes that provide the most cost effective result New domestic experiences development Tourism Research Australia s report,through the looking glass: The future of domestic tourism in Australia (2008) considered a wide range of economic and demographic factors. The analysis included predictions for the range of activities people participate in while travelling. The conclusions included (p36): The overall shares of visitors participating in each activity group remain relatively unchanged between 2006 and Social activities like eating out, and visiting friends and relatives, remain the most popular activities, followed by shopping, general sightseeing, going to the beach, sports or active outdoor activities, nature-based activities, local attractions and cultural and heritage activities. The largest average annual growth is in cultural and heritage activities, forecast to increase by 1.7% per year on average between 2006 and Heritage tourism has the following features which are particularly appealing to regional social well being: It is based largely on existing infrastructure It offers tourism diversification away from the (often) heavy reliance on existing resort areas and peak seasons It provides attractions for those accommodated in existing resort areas, encouraging further length of stay It establishes heritage structures and landscapes as economic assets It engenders respect and value for the social history of communities that have been marginalised through changes to the economic base and demographic makeup. See section 4 Heritage Tourism Inbound (international tourism) The Sapphire Coast has the extraordinary good fortune to be a partner constituent (with East Gippsland and Bombala Shire) of Australia s Coastal Wilderness (ACW) National Landscape. The area has outstanding natural coastal landscape qualities. It was selected as one of the first eight sites in the Tourism Australia and Parks Australia National Landscapes Program. This Program is identifying the top 15 Australian natural/cultural experiences for international marketing to the Brand Australia target market. The National Landscapes Program can be viewed on The Sapphire Coast now keeps august company. The other 14 are Australian Alps, Greater Blue Mountains*, Green Cauldron*, Great Barrier Reef*, Daintree Wet Tropics*, Kakadu*, Red Centre*, The Kimberley, Shark Bay Ningaloo*, South West Edge (WA), Flinders Ranges, Kangaroo Island, Great Ocean Road and Tasmania*. (* World Heritage Listed)

6 SCT Board members played a key role in the establishment of ACW. SCT is a member of the ACW regional steering committee. Apart from time, the SCT contribution is a modest amount of funds for committee expenses. The value of the exposure in incalculable and the direct benefit can already be seen in the significant increase in international visitors to the area, now bringing some $11m pa to the area generating some $30m of activity in the regional economy. It is impossible to put a dollar value on our participation in ACW but it would be many multiples of our existing resources. The ever present danger is that indifference to the program at the regional level may see ACW dropped from the 15. It can be safely assumed that other regions are more than willing to take our place. Participation in ACW is not without local concern, notwithstanding the extraordinary good outcome we have at minimal cost. Questions are raised about the Wilderness brand as a deterrent to visitors. It actually aligns very well with the Brand Australia target market. This alignment is discussed in Section 5. In branding it is not the opinions expressed in debate that matters, it is how the experiences on offer appeal to the target market.

7 3. Sapphire Coast Destination Visitor Survey 12 regions from NSW applied to participate in the Tourism Research Australia program last year and SCT were one of only four successful applicants. This project was undertaken by in partnership with SCT, Bega Valley Shire Council (BVSC) and Destination NSW to gain a better understanding of visitors to the region including the motivations and satisfaction with their visit to the Sapphire Coast region. Participation in this program has given SCT the opportunity to undertake professional market research specific to our region, that we otherwise would not have access to. High quality, professional and cost effective research specifically on the Sapphire Coast is now available on our peak summer season when the survey took place. The results of the survey provide some interesting insights, benchmarks and research that can be used in future strategic tourism destination planning for the Sapphire Coast. Brief snapshot: The majority of visitors (63%) were in the family life stage The majority of visitors (62%) were aged years Half of all domestic visitors were from Vic., and 59% of Vic. visitors were from Melbourne Over 4 in 5 visitors (85%) were repeat visitors 15 points above the national benchmark. Three in five repeat visitors had visited the region outside of summer Repeat visitors stayed longer (median 8 nights) vs. first time visitors (median 5 nights) Previous experience and the internet were the main sources of information Nearly all (99%) of the visitors to the region were self-drive Relaxation and rejuvenation was an exceptionally sought after experience. 94% of all respondents sought this experience 16 points above the benchmark Nature based experiences were also very high on the agenda 76% of all respondents (compared to 68% for the benchmark) Satisfaction levels showed that visitors who dispersed to more than one location are more likely to be very satisfied than those who travel less. Close to three quarters of visitors visited more than one location during their stay in our region is a more attractive and enjoyable place when experienced as a whole rather than by an individual location On the down side, a number of functional attributes scored below the benchmark. These include the price of food in restaurants and supermarkets as expensive, comments on the poor quality of our roads, poor road signage made attractions easy to miss and local transport, entertainment, shopping, public toilets, information services, attraction and tours also received some negative comments Key recommendations of the findings include: 1. Stimulating Consumer Demand through wide variety of experiences on offer 2. Improving Product and Service Delivery through digital marketing and distribution 3. Product Development and Diversification SCT considers the survey provided a valuable snapshot of an important element of our domestic market and validated SCT s strategic focus on nature tourism and the development of a diversity of compelling tourism experiences.

8 4. Heritage Tourism SCT have used the heritage tourism outlook to prepare a heritage tourism strategy. ( %20Final%20Updated%209%20June.pdf) This was prepared by professional heritage planning consultants with the assistance of a Commonwealth TQAL grant in Development of the strategy oversight The drafting of the strategy was undertaken by a branding/planning professional overseen by a supervisory community group convened for the purpose. The group includes SCT, Council, galleries, museums, historic site managers, arts, ACW and national parks. The story identification criteria were: Consumer focused those stories that clearly deliver the experiences or products most desired by the international Experience Seeker Differentiated those stories that are most clearly different from what you can experience and hear about elsewhere Linked to wilderness those stories that reflect and embody the essence of Australia s Coastal Wilderness Connected those stories that link a number of experiences and market ready (or soon to be) products to deliver a complete story Supported those stories with strong local/ grass roots support. Culturally Inclusive those stories that incorporate both Indigenous and European culture, stories and products. The stories are: Story 1: KILLERS OF EDEN The Killers of Eden is a story that has significant potential to attract and entertain the international Experience Seeker. The stories behind the Killer Whales incorporate both Indigenous and European culture and link directly to some of the region s most popular tourism ventures. Many people whose families were involved in the story still live in the area. Story 2: IN THE SHADOW OF THE MOUNTAINS This story explores the magnetic attraction of the region s geological, natural and cultural history, the fertile valleys, rugged coastline and the magnificent mountains that created them. With links to Indigenous and Europeans stories of the three mountains Gulaga (Mt Dromedary), Mumbulla (Biamanga National Park) and Balawan (Mt Imlay) the story is supported by a number of natural and cultural heritage attractions. Story 3: MEETING OF THE WATERS The Meeting of the Waters story links both the geological and cultural history of the region to its enterprises and attractions. The warm ocean currents from the Coral Sea meet the Antarctic waters flowing up from the Bass Strait. This unique combination explains why the region has the most abundant marine life outside the Great Barrier Reef and is a mecca for marine researchers the world over. For each story tasks are set out for the promotion and communication of heritage tourism experiences designed to reach the target market, and promote the experiences related to these iconic stories. An action plan delivers each of the stories.

9 Two further stories were added to the program: The Bundian Way story The Bundian Way is an ancient trading route and pathway that runs 260km from the highest part of the continent, the Australian Alps, to the coast at Twofold Bay in Eden. Thistakes many individual sites including ceremonial places, stone arrangements, marked trees, whale places, moth gathering places and provides connections between them. Naturally Inspired The concept of Naturally Inspired seeks to embrace the region s creative cultural energy and to engage visitors to become inspired by the natural environment. The aim is to attract visitors who have an interest in nature, culture and arts and provide experiences that encourage creativity through their holidays. A range of festivals and events, art galleries and studios, markets, natural attractions, Indigenous culture and arts, and complementary visitor services experiences (food and wine and accommodation) are set out. Sapphire Coast Heritage Tourism Strategy- next stage The implementation of the strategy action plans is undertaken through the resources of the constituent organisations comprising the supervisory group. A further TQAL grant has been made to: Produce high quality authentic information suitable for posting on the Australia s Coastal Wilderness and Sapphire Coast Tourism websites. The information, including maps diagrams and photographs will be produced in a form suitable for ready adaptation for use in Visitor Information Centres, site-specific interpretation, tourism brochures, regional directional signage, media stories and personal communication devices. Provide on-site interpretative signage. Provide web based social media mechanisms for the collection, sharing (with visitors and the community) and updating heritage information related to the Heritage Strategy. Provide tourism signage to direct visitors to sites. The first task under the grant will be the preparation of 10 stories under 5 themes. This task will produce written and graphic information in a form suitable for loading onto web sites, production of brochures, production of interpretation material and provide a focus of signage and social media. These outputs will be undertaken following the completion of the 10 stories compilation task. The first task is: Theme - Marine 1. Cetaceans of the Sapphire Coast 2. Marine Richness Theme - History 3. Old Tom 4. Life in the 19 th Century

10 Theme Indigenous Heritage 5. The Bundian Way 6. Three Sacred Mountains Theme - Cultural Heritage 7. The Music of the Coastal Wilderness 8. The Art of the Coastal Wilderness Theme - Geo-heritage 9. The Geology of the Three Mountains 10. Gondwana Splits the story of the south east coast

11 5. Visitor Information Centres Introduction Visitor Information Centres (VICs) is the most difficult of the regional tourism elements that the SCT Board deals with. More Board time is directed to discussing and debating VICs than any other subject. It has been so since the inaugural meetings of the company. The community debates on the subject long preceded the current Board structure. The subject is enshrouded in legend, debate and intra-regional rivalry and no useful purpose would be served in the strategy by trying to give justice to any particular point of view held on the historic events. The strategy however has to provide a direction on the subject if the potential of tourism s value to the local economy is to be realised. Shortly after its establishment SCT published a discussion paper on the VICs issues. It attracted little comment. Current SCT resources commitment to VICs The VICs allocation was determined by direction from Bega Valley Shire Council in This is made up of: Bermagui 25 Eden 30 Bega 5 Merimbula 20 Total 80 Three of the four VICs have sought an increase in their allocation. The allocation is not of course the individual VIC budget. Other revenue is gained through membership contributions, commissions and saleable items. A hidden significant contribution to the VICs is Bega Valley Shire Council s provision of premises to three of the centres. The management arrangements vary. Eden and Bermagui are managed by Chambers of Commerce, Bega by Bega Cheese and Merimbula by SCT in the historical absence of a local management structure willing and able to manage the VIC. The SCT Board has decided to maintain this allocation for The key comment to make on the allocation is the matter of opportunity cost. Dollars spent on VICs are not spent on strategic direction marketing or promotion. Every demand met for increased VIC funding worsens this situation. This is a fundamental strategic question. What is the right balance between: servicing visitors already in the area (through the VICs), defending an increasing beleaguered market position by promotion developing new compelling visitor experiences and product to broaden the region s long term appeal?

12 The role of VICs VICs offer the human face to the visitor to the region. There is ample research to show that engagement with locals is a strong element of the visitor experience. The meet and greet function of the VIC is thus vital. A research report from the Sustainable Tourism Cooperative Research Centre (Margaret Deery 2006) was on the role played by Visitor Information Centres (VICs) in enhancing tourism yield within regional Australia. The key findings from the study were: VICs have a clear clientele with 43% of visitors being adult couples, with a secondary market of family groups (21.5%). Results also indicate that the main age group for these visitors was evenly distributed from years. 64% of visitors to the VIC regions are repeat visitors. Of these visitors, 58% have visited between 1-4 times and 42% have visited 5 times or more. Statistics further indicated that 26% of these repeat visitors have visited the VICs before. This is significant in terms of the opportunities VICs have to develop customer management strategies over time. Results show that the highest rated service attributes were the friendliness of staff and staff knowledge. As a consequence of the high levels of satisfaction and information provision, 68% of respondents stated that they would return to the region. Results indicate that information provided by the VIC influenced 18% of visitors to extend their visit in the region, varying from a few hours to 14 nights or more. Literature suggests that extended length of stay has a positive impact on tourism yield. Respondents indicating their intention to stay longer rated satisfaction with the availability of local merchandise more highly. This information suggests an avenue for further marketing of local produce. Respondents indicated that the information they gained from the VICs influenced them to participate in more activities. This is a significant indicator that the VICs are successful in promoting regional products to customers. Following access to staff knowledge and information from the VIC, 35% of respondents were encouraged to visit neighbouring regions. This provides an opportunity for the VICs to work collaboratively with other regional areas to further improve tourism yield. The key recommendation arising from this study was to train VIC staff and volunteers in promoting further, the VIC regional products, activities and attractions. The study demonstrated that VICs play an important role in enhancing the regional tourism experience through the knowledge and service by VIC staff and volunteers. To promote regional products through the display and sale of these products within the VIC. To increase the service quality of VICs to maximise visitor needs for personal service To develop a tool to assist in monitoring the performance of VICs and to allow for improvements in potential tourism yield. The findings from this research indicate that VICs are important in promoting tourism and increasing tourist spend, particularly within regional Australia. While it is difficult to quantify the actual level of increased expenditure, it is clear that VICs have a pivotal role to play in maintaining and developing tourism products and the travel experience. Implications for the SCT Business Plan The following is the SCT Business Plan position: VICs are recognised as a core tourism asset to the region that personalises the visitor experience and has the significant potential of enhancing yield and return visitation.

13 The VIC staff and volunteers are a vital resource in the VIC equation and their contribution has to be recognised and commitments continue to be made to train and familiarise them about tourism Sapphire Coast s compelling visitor experiences, products and services. VICs are best individually managed by local business representative bodies acting as cooperative local partnerships. VIC management should ensure a region-wide integrated approach is taken in the delivery of information to ensure the strength from unity. VICs have a critical role in delivering both the traditional market position of the Sapphire Coast and the emerging branding position of Australia s Coastal Wilderness and Sapphire Coast heritage. VIC management must look as far as practicable to their economic sustainability to reduce the call on the SCT Budget in the knowledge that that budget should have a significant commitment to develop the long term strategic positioning of the Sapphire Coast in the domestic and inbound tourism markets. In view of the opportunity cost pressures SCT will continue to review its involvement in VIC resourcing and management. Review discussions will continue to be undertaken in close consultation with the VIC stakeholder group established for this purpose.

14 5. Australia s Coastal Wilderness The ACW background is described in Section The ACW has produced an experiences development plan. It was earlier titled a Tourism Master Plan and the released version can be viewed on ( The plan provides for a series of actions and priorities for the ACW partners to ensure appropriate visitor facilities, services and information is delivered to the target market. The plan is also designed to encourage investment in tourism infrastructure and services. Actions that are underway as a consequence of the plan include: The development of an ACW website to sit under Work on this project is with Tourism Australia in its final stages. Work in progress draft The development of an ACW Brand Tool Kit. This project has gone through an extensive drafting process and is now being finalised by Tourism Australia. This kit will be available to all ACW partners, regional tourism industry members, national parks, councils, tourism bodies and related businesses. The kit will allow for consistency in messages, style, language and imagery to ensure that any single contribution conforms to a greater strategy to maximise the impact in the marketplace. In the Bega Valley: o o Council has committed resources to a tourism signage program which will dovetail with ACW branded experiences. The program will also dovetail with the next stage of the SCT Heritage Tourism Strategy signage component. The National Parks and Wildlife Service is seeking commercial partners to develop quality visitor accommodation on the Light to Light Walk in Ben Boyd National Park. The Service also proposes to upgrade certain heritage

15 o o o buildings in Mimosa Rocks National Park to provide visitor accommodation services. Council is now able to commit resources to the refurbishment of the landing capacity at Merimbula Airport. Increased aircraft load capacity and access to feeder destinations will be a significant factor for the ACW target market. There are private investment proposals being worked up to provide ACW related visitor infrastructure and services. There are private proposals to provide training capacity to ensure qualified tourism guides and service deliverers are available to support the ACW market. Tourism Australia Brand Research In 2010 Tourism Australia commissioned international research to test the continued relevance of the primary motivators (broken down into 7 drivers) in making a travel decision to holiday in Australia. The research focussed on our top 12 markets which cover a range of languages and cultures. The results were: 1. A very consistent picture across the markets tested. Two experiences Nature in Australia and Australian Journeys were standout winners across the markets, with a high performance across all measures. 2. Aussie Coastal lifestyle and Outback Australia also performed relatively well across the markets. 3. Nature, Journeys and Coastal are the three experiences which have the most impact when used together in terms of creating excitement. There is significant overlap in terms of those engaged in each. 4. Aboriginal Australia is seen as unique, but performs below average on all other indicators. The Cities and Food and Wine experiences perform less well. However these latter two experiences are the most closely associated with the Welcoming theme. 5. In terms of alignment with Tourism Australia s key messaging themes, the experiences are generally felt to be most closely aligned to the Nature theme, with a number also associated with Adventure, Welcoming and/or Immersion. The transformation message is less likely to be communicated by any of the experiences. 6. Compared to norms for each market, the top 3 experiences performed above average for excitement, appeal, believability and relevance. They are less strong for uniqueness and understanding. Message for SCT: Nature, Journeys and Coastal are the three experiences which have the most impact when used together in terms of creating excitement. There is significant overlap in terms of those engaged in each. This is an excellent alignment with ACW and its strategic directions. Tourism Australia Strategic Directions Tourism Australia has a strategic directions plan for the National Landscapes Program to The directions for are: Establishing and marketing the suite of 15 (maximum) National Landscapes Delivering Experience Development Strategies

16 Implementing priority projects Developing new products and services Building networks with a variety of government agencies, industries and interest groups Creating tools to assist stakeholders. Raising awareness with consumers, media and trade. Current Marketing Program A National Landscapes marketing DVD 5 7 min DVD that is informative and also inspiring. When the content is delivered in person, stakeholders tend to have a light bulb moment. This piece needs to achieve a similar response. The tone and voice should be enlightening, motivating, informative but not delivered too seriously. The music, footage, and voice over should assist in creating this effect. ATE 2011 Signage on booths for sellers to showcase they are part of National Landscapes Profiles and Itineraries Brochure distributed to Media and Buyers. Flyer where to find (including booth numbers) sellers from each Landscape 5 articles in ATE Daily Appointments with STO, RTO, and NL stakeholders Down Under Travel Bulletin Is a 6 page fortnightly trade publication communicating tourism news from "Downunder targeting international wholesalers and specialist retailers around the world who specifically promote and sell the region 1000 plus printed hard copies distributed to wholesale/retail product decision makers worldwide plus Electronic versions distributed worldwide copies to Aust based ITO's and Suppliers. TRADE Down Under Travel featured areas June: Red Centre July: Flinders Aug: Great South West Edge Sept: Green Cauldron Oct: Great Barrier Reef Nov: Australian Alps Dec: Aust Coastal Wilderness Jan: Kakadu Feb: Kimberley March: Great Ocean Road April: Greater Blue Mountains May: Kangaroo Island June: Ningaloo July: Wet Tropics Aussie Specialists Program ( features National Landscapes) Aussie Specialists are a dedicated group of retail travel agents actively selling and promoting Australia around the world. The program is designed to provide travel agents and distributors with the knowledge and skills to sell Australia more effectively and has won awards for best training program in the United Kingdom, Asia and United States of America. The program is now available in 11 languages. Globally, there are over 29,000 registered agents across more than 110 countries including the key markets of the United Kingdom, Europe, North America and Asia. Social Media the program features in TA s program which has 1.6million registered friends.

17 National Landscapes will have added 7 new language sites bringing the total to 17 Updated portal for all 15 sites 4000 hits per month on the media site for the National Landscapes Newsletter Implications for the SCT Business Plan This program is extraordinary good fortune for the region. Whilst the SCT budgetary allocation to the program is modest the commitment to the program is unequivocal. The recent statistics on increased international visitor numbers to the area is a compelling argument to maintain this focus.

18 6. Visitor Information Centres Introduction Visitor Information Centres (VICs) is the most difficult of the regional tourism elements that the SCT Board deals with. More Board time is directed to discussing and debating VICs than any other subject. It has been thus so since the SCT inaugural meetings. The community debates on the subject long preceded the current Board structure. The subject is enshrouded in legend, debate and intra-regional rivalry and no useful purpose would be served in the strategy by trying to give justice to any particular point of view held on the historical events. The strategy however has to provide a direction on the subject if the potential of tourism s value to the local economy is to be realised. Shortly after its establishment SCT published a discussion paper on the VICs issues. It attracted little comment. Current SCT resources commitment to VICs Almost all of the SCT budget is provided by Bega Valley Shire Council through the recently approved rate levy. The SCT Budget is shown below although the marketing allocation may be decreased to accommodate CPI movements in staff salaries and part time assistance to the Tourism and Marketing Manager. Figures are in thousands of dollars: Administration 122 VICs 80 Marketing 48 Total 250 The VICs allocation was determined by direction from Bega Valley Shire Council in This is made up of: Bermagui 25 Eden 30 Bega 5 Merimbula 20 Total 80 Three of the four VICs have sought an increase in their allocation. The allocation does not represent the individual VIC budget. Other revenue is gained through membership contributions, commissions and saleable items. A hidden significant contribution to the VICs is Bega Valley Shire Council s provision of premises to three of the centres. The management arrangements vary. Eden and Bermagui are managed by Chambers of Commerce, Bega by Bega Cheese and Merimbula by SCT in the historical absence of a local management structure prepared to manage the VIC.

19 Comment on resources availability The immediate observation is the very modest SCT Budget. Eurobodalla Shire Council is able to contribute $1.13m to tourism, and as a consequence, has a comparatively large VICs budget. It is noted that there is not a commensurate big difference between tourism visitation to the two Shires, indeed recent figures show a healthier growth position in inbound tourism to the Sapphire Coast. The next comment is the amount spent on SCT administration. This has been a matter of previous public criticism. The money is fully expended on the salaries and expenses of the Tourism and Marketing Manager and the Finance Officer (part time who doubles as Merimbula VIC manager). Without these resources SCT becomes a group of volunteer Board members who meet once a month with little or no capacity to service tourism on a day to day basis). The previous and current Board has not sought Director s fees or expenses. The key comment to make on the allocation is the matter of opportunity cost. Dollars spent on VICs are not spent on strategic direction marketing or promotion. Every demand met for increased VIC funding worsens this situation. This is a fundamental strategic question. What is the right balance between: servicing visitors already in the area (through the VICs), defending an expected increasing beleaguered market position by promotion developing new compelling visitor experiences and product to broaden the region s long term appeal? It is little wonder the matter is subject to so much discussion. The role of VICs VICs offer the human face to the visitor to the region. There is ample research to show that engagement with locals is a strong element of the visitor experience. The meet and greet function of the VIC is thus vital. A research report from the Sustainable Tourism Cooperative Research Centre (Margaret Deery 2006) was on the role played by Visitor Information Centres (VICs) in enhancing tourism yield within regional Australia. The key findings from the study were: VICs have a clear clientele with 43% of visitors being adult couples, with a secondary market of family groups (21.5%). Results also indicate that the main age group for these visitors was evenly distributed from years. 64% of visitors to the VIC regions are repeat visitors. Of these visitors, 58% have visited between 1-4 times and 42% have visited 5 times or more. Statistics further indicated that 26% of these repeat visitors have visited the VICs before. This is significant in terms of the opportunities VICs have to develop customer management strategies over time. Results show that the highest rated service attributes were the friendliness of staff and staff knowledge. As a consequence of the high levels of satisfaction and information provision, 68% of respondents stated that they would return to the region. Results indicate that information provided by the VIC influenced 18% of visitors to extend their visit in the region, varying from a few hours to 14 nights or more. Literature suggests that extended length of stay has a positive impact on tourism yield. Respondents indicating their intention to stay longer rated satisfaction with the availability of local merchandise more highly. This information suggests an avenue for further marketing of local produce.

20 Respondents indicated that the information they gained from the VICs influenced them to participate in more activities. This is a significant indicator that the VICs are successful in promoting regional products to customers. Following access to staff knowledge and information from the VIC, 35% of respondents were encouraged to visit neighbouring regions. This provides an opportunity for the VICs to work collaboratively with other regional areas to further improve tourism yield. The key recommendation arising from this study was to train VIC staff and volunteers in promoting further, the VIC regional products, activities and attractions. The study demonstrated that VICs play an important role in enhancing the regional tourism experience through the knowledge and service by VIC staff and volunteers. To promote regional products through the display and sale of these products within the VIC. To increase the service quality of VICs to maximise visitor needs for personal service To develop a tool to assist in monitoring the performance of VICs and to allow for improvements in potential tourism yield. The findings from this research indicate that VICs are important in promoting tourism and increasing tourist spend, particularly within regional Australia. While it is difficult to quantify the actual level of increased expenditure, it is clear that VICs have a pivotal role to play in maintaining and developing tourism products and the travel experience. Implications for the SCT Strategy The following is a recommended strategic position: VICs are recognised as a core tourism asset to the region that personalises the visitor experience and has the significant potential of enhancing yield and return visitation. The VIC staff and volunteers are a vital resource in the VIC equation and their contribution has to be recognised and commitments continue to be made to train and familiarise them about tourism Sapphire Coast s compelling visitor experiences, products and services. VICs are best individually managed by local business representative bodies acting as cooperative local partnerships. VIC management should ensure a region-wide integrated approach is taken in the delivery of information to ensure the market strength from unity. VICs have a critical role in delivering both the traditional market position of the Sapphire Coast and the emerging branding position of Australia s Coastal Wilderness and Sapphire Coast heritage. VIC management must look as far as practicable to their VIC s economic sustainability to reduce the call on the SCT Budget in the knowledge that the SCT budget must have the capacity to continue to develop the long term strategic positioning of the Sapphire Coast in the domestic and inbound tourism markets.