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Disclaimer Neither Urban Enterprise Pty. Ltd. nor any member or employee of Urban Enterprise Pty. Ltd. takes responsibility in any way whatsoever to any person or organisation (other than that for which this report has been prepared) in respect of the information set out in this report, including any errors or omissions therein. In the course of our preparation of this report, projections have been prepared on the basis of assumptions and methodology which have been described in the report. It is possible that some of the assumptions underlying the projections may change. Nevertheless, the professional judgement of the members and employees of Urban Enterprise Pty. Ltd. have been applied in making these assumptions, such that they constitute an understandable basis for estimates and projections. Beyond this, to the extent that the assumptions do not materialise, the estimates and projections of achievable results may vary.
C ONTENTS I
4.4. RELATIONSHIP WITH LTAS
27
INTRODUCTION
I
4.5. INDUSTRY MEM BERSHIP
27
CURRENT SITUATION
I
4.6. ROLES AND RESPONSIBILITIES
28
RESEARCH FINDINGS
I
4.7. TRAITS OF SUCCESSFUL RTOS
30
4.8. SUM MARY OF RECO M MENDATIONS
31
EXECUTIVE SUMMARY
REGIONAL TOURISM ORGANISATION RECOMMENDATIONS
1. INTRODUCTION
II
1
1.1. BACKGRO UND
1
1.2. TOURISM TASM ANIA’S REGIONAL TOURISM INITIATIVE
1
2. CURRENT SITUATION
3
2.1. INTRODUCTION
3
2.2. OVERVIEW OF TOURISM ORGANISATIONS
3
2.3. STRENGTHS AND WEAKNESSES
7
3. REGIONAL TOURISM ORGANISATION RESEARCH
8
FIGURES FIGURE 1 GEELONG OTWAY TOURISM ORGANISATIONAL STRUCTURE
13
FIGURE 2 RTO SERVICES
19
FIGURE 3 RTO FUNDING SOURCES
20
FIGURE 4 AVERAGE RTO EXPENDITURE SUMMARY
20
TABLES TABLE 1 CRADLE COAST AUTHORITY PERFORMANCE
5
3.1. INTRODUCTION
8
TABLE 2 COUNCIL PERFORMANCE
6
3.2. KEY FINDINGS
8
TABLE 3 LOCAL TOURISM ASSOCIATION PERFORMANCE
6
3.3. REGIONAL TOURISM ORGANISATION CASE STUDIES
9
TABLE 4 RTOS WITH MORE THAN 100 MEMBERS
18
TABLE 5 RTO STRATEGIC DIRECTIONS
19
TABLE 6 STAFF AND VOLUNTEERS: 2007-10
20 21
3.4. RTO STRUCTURE EXAMPLES
16
3.5. REGIONAL TOURISM ORGANISATION SUR VEY RESULTS
18
TABLE 7 VIC STAFFING AND FUNDING
22
TABLE 8 RESPONSIBILITY COMPARISON: CRADLE COAST AUTHORITY V.
4. REGIONAL TOURISM ORGANISATION OPTIONS 4.1. INTRODUCTION
22
4.2. CRADLE COAST AUTHORITY AS THE RTO
23
4.3. TOURISM INDUSTRY BOARD
25
RTO
23
TABLE 9 CRADLE COAST TOURISM BUSINESSES
25
CRADLE COAST AUTH ORITY
DECEMBER 2011
E XECUTIVE S UMMARY INTR ODU C TI ON This report provides research and options for consideration to implement Tourism
Another weakness is the Cradle Coast Authority’s lack of direct interaction and accountability to industry, which needs to be addressed if it is to assume the RTO role as defined by Tourism Tasmania.
Tasmania’s Regional Tourism Initiative, and specifically the introduction of a Regional Tourism Organisation (RTO) for the Cradle Coast.
RESE ARC H F IND ING S
This report includes a summary of the current situation and its strengths and weaknesses
The review of case studies and the results of a recent survey of Victorian RTOs identified
identified including case studies, survey analysis and options to inform discussions
the following success factors with regard to RTO structures and governance:
regarding the structure of the Regional Tourism Organisation and its position within tourism governance. A number of case studies and research from Victoria has been used to inform the study as there are a number of well-established RTOs in Victoria which provide examples of
•
industry, council and LTA. •
Regular communication with members is seen as an important factor in RTO success;
successful RTO structures. •
C U RRENT SI TU AT IO N The analysis of the current tourism organisations active within the Cradle Coast includes:
The most successful Tourism Boards include a mix of representatives, including
Memberships and their relationship to LTA memberships vary, and are generally structured to suit the region and its industries;
•
Roles identified as being important for RTOs across the case studies and survey include:
•
Tourism Tasmania;
•
Cradle Coast Authority;
•
Cooperative marketing campaigns;
•
Local Government; and,
•
Keeping the local industry up to date with tourism trends and issues;
•
Local Tourism Associations.
•
Representing industry to government
•
Developing Sound strategic plans for the region
The strengths of the region’s tourism governance are the existing RTO role fulfilled by the Cradle Coast Authority, the clear direction provided by Tourism Tasmania, and the support given to tourism by Local Government and from within the industry.
•
success of RTOs in the case study: this has a significant impact on the staffing and budget of RTOs.
One of the key weaknesses of the region is the inefficient use of resources and energy particularly with regard to the numerous Local Tourism Associations and Visitor Information Centres.
The management of visitor information services was seen as a key aspect of the
•
Increasing yield and visitor dispersal throughout a region are seen as key roles of an RTO.
CRADLE COAST AUTH ORITY DECEMBER 2011
i
REG ION AL TOU R I SM OR GAN I SA TI ON
AREAS OF RESPONSIBILITY
REC OMMEND AT ION S
Based on the research undertaken to inform this discussion paper, plus Tourism
The assumption that the Cradle Coast Authority transitions into the RTO role defined by
considered by the RTO:
Tourism Tasmania in the Regional Tourism Initiative is based on the support for the
Tasmania’s Regional Tourism Initiative, provides the following list of responsibilities to be
Authority from the local industry, and the guidelines provided by Tourism Tasmania
•
Regional Tourism Planning
indicate that support for an additional regional body is unlikely.
•
Marketing
A number of options for the structure of the RTO and its relationship with industry have
•
Product and Infrastructure Development
the following recommendations for the organisational structure of the Cradle Coast
•
Advocacy
Authority:
•
Industry Development
TOURISM BOARD STRUCTURE, GOVERNANCE AND MEMBERSHIP
•
Visitor Information Services
•
•
Events Bidding
been considered; these are reviewed in section 4. The analysis of the options provides
That the relationship between the existing Cradle Coast Authority and the new tourism organisation and its tourism industry board be based on the example of the Cradle Coast Natural Resource Management team (NRM). NRM is included within the Cradle Coast Authority organisational structure, but also reports to a board comprising of a mix stakeholders involved in natural resource management.
•
The number of board members on other RTOs included in the research section range from 9 to 18. A tourism industry board of 7-9 members is recommended, representing a range of tourism industry skills.
•
Tourism Tasmania has stipulated that they must have one representative on the Tourism Board. Consideration should be given to a further 2 members from Local Government, reflecting the expectation that they will continue to provide funding and have a role in regional tourism development and governance.
•
It is important to consider the relationship of the RTO to the LTAs, with respect to each organisation’s roles and responsibilities, and their involvement with RTO activities and initiatives.
•
The option most likely to provide higher levels of industry membership is a flat fee for basic services, with other services provided on a user pays basis.
ii
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
1. I NTRODUCTION 1.1. BAC KGR OU ND
As broadly defined by Tourism Tasmania, the RTOs will1: •
This paper complements the research and findings undertaken in the Cradle Coast State
develop and market the region and will be accountable to the industry and key
of the Region Report by providing research, analysis and options relating to tourism
stakeholders.
governance in the Cradle Coast, and the specifically the formation of a Regional Tourism Organisation.
•
•
A review of the existing tourism organisations that form the region’s governance
Analysis of the strengths and weaknesses of this structure;
•
A review of relevant data from a recent survey of Victorian Regional Tourism
Set the strategic direction for their region and identify annual priorities and work with regional stakeholders to align resources to achieving shared goals.
structure; •
They must engender greater levels of engagement and industry participation in cooperative marketing activities and delivery of visitor services.
The report includes: •
Be Industry–Led with the autonomy to plan and deliver programs that effectively
•
Will develop a regional marketing plan and deliver regional marketing programs that attract participation from industry
Organisations;
Tourism Tasmania is supporting the development of RTOs through linking funding for marketing and development priorities to the RTOs.
•
Case studies of Regional Tourism Organisations; and,
•
Potential options for consideration when forming a Regional Tourism Organisation for the Cradle Coast.
1.2.1. CONSIDERATIONS FOR THE CRADLE COAST AUTHORITY Although the Cradle Coast Authority is currently fulfilling many of the roles and responsibilities of an RTO, a central objective of the Regional Tourism Initiative is that the
1.2. TOU R IS M T A SMAN I A’ S RE G ION AL TOU RI SM IN IT IAT IVE
new RTOs are substantially led and guided by the region’s tourism industry. Currently, the Cradle Coast Authority board has one of its 8 members representing the
This report was instigated to inform part of the Cradle Coast’s response to Tourism
region’s tourism industry. If the Cradle Coast Authority is to meet the requirements of an
Tasmania’s Regional Tourism Initiative. This initiative is based on the findings of a review
RTO under the Regional Tourism Initiative a new tourism industry board is required.
of regional tourism undertaken by KPMG in 2010, and the key element is implementing a
Another consideration for the Cradle Coast Authority is the introduction of a membership
new structure based on four Regional Tourism Organisations covering the state. The
base, to promote strong linkages with the region’s tourism operators. The Authority is
local government areas that comprise the Cradle Coast forms one of these areas and a
currently funded directly by its 9 constituent councils, and this in conjunction with the
Regional Tourism Organisation (RTO) is required for the region.
solitary tourism industry board member indicates that it does not meet the industry led and responsive requirements of the Regional Initiative.
1
Regional Tourism Initiative: FAQ’s CRADLE COAST AUTH ORITY DECEMBER 2011
1
The Cradle Coast State of the Region Report also highlights the need to rationalise the number of Visitor Information Centres (VICs) and Local Tourism Associations (LTAs) to ensure that the resources allocated to tourism in the region are used efficiently and effectively. There are at least 15 LTAs operating in various modes, and 8 year-round accredited VICs in the Cradle Coast. The number of LTAs also impacts on the ability of an RTO to coordinate and communicate effectively with industry.
2
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
2.
C URRENT S ITUATION
2.2. OVERV IEW OF TOU R IS M ORG AN I SAT I ON S 2.2.1. TOURISM TASMANIA Tourism Tasmania’s role is to grow the tourism industry in the state through marketing
2.1. INTR ODU C TI ON
and development programs, delivered in conjunction with industry.
This section provides an overview of the current structure and responsibilities of tourism
organisation encompasses both the domestic and international tourism markets.
organisations operating within the Cradle Coast. Industry perspectives and survey results
The objectives of Tourism Tasmania are listed as2:
are based on processes implemented to develop the Cradle Coast State of the Region Report.
•
The role of the
Create new knowledge and understanding for industry and stakeholders about tourism through research, analysis and insights;
2.1.1. KEY FINDINGS
•
effective, consistent action with those who can make a difference;
The analysis of the current tourism organisations active within the Cradle Coast includes: •
Tourism Tasmania;
•
Cradle Coast Authority;
•
Local Government; and,
•
Local Tourism Associations.
Address the barriers to conversion and travel to Tasmania by identifying and taking
•
Establish, articulate and maintain the brand and brand values, particularly through creative and innovative marketing;
The strengths of the region are the existing RTO role fulfilled by the Cradle Coast
•
Achieve alignment of Tasmania’s tourism product, experiences and infrastructure to match market expectations of the brand.
Tourism Tasmania has outlined their role in regional tourism as including: •
Providing regional tourism funding;
tourism by Local Government and from within the industry. The coordinated approach by
•
Engaging with stakeholders to help create quality strategic regional tourism plans;
the Cradle Coast Authority and Tourism Tasmania is a strength in the region.
•
Having representation on each regional Tourism Board;
One of the key weaknesses of the region is the inefficient use of resources and energy
•
Facilitating access to information to support decision making at the regional level;
•
Encouraging partnerships and collaboration including quarterly cross regional
Authority, the clear direction provided by Tourism Tasmania, and the support given to
particularly with regard to the numerous Local Tourism Associations and Visitor Information Centres in operation which duplicate services in the North West.
discussions;
Another weakness is the Cradle Coast Authority’s lack of direct interaction and accountability to industry, which needs to be addressed if it is to assume the RTO role as
•
defined by Tourism Tasmania.
Supporting solutions across tiers of government as well as across State Government;
•
Facilitating alignment with state-wide planning, goals and marketing initiatives;
•
Providing leveraging opportunities with Tourism Tasmania’s own programs.
2
http://www.tourism.tas.gov.au/about_us CRADLE COAST AUTH ORITY DECEMBER 2011
3
INDUSTRY PERSPECTIVES: RESPONSIBILITIES
ZONE MARKETING
Respondents to the Cradle Coast Tourism Business Survey clearly indicated that Tourism
Tourism Tasmania introduced the Zone Marketing program in 2009, with the major
Tasmania should be responsible for interstate and international marketing, and visitor
purpose of cooperative marketing with support provided by Tasmanian Government
market and industry research.
funding. 5 zones were introduced in the state; the Cradle Coast region was represented
There was less clarity in product development, training, and business development: Tourism Tasmania and the Cradle Coast Authority received similar levels of support for these responsibilities. It is possible that these are joint responsibilities, for example:
by both the Western Wilderness and the North West Coast Zones. After a review by Deloitte in 2011, Tourism Tasmania has decided to terminate the Zone Marketing program and is moving to 4 RTOs to deliver regional marketing.
industry training may be developed by Tourism Tasmania and the Cradle Coast Authority
During the consultation process, the issues with Zone Marketing identified by the industry
has responsibility for regional awareness and providing opportunities to participate in
representatives were that the program was too focused on Hobart and Launceston, and
training.
that operators on the border of regions had to decide which zone they aligned with, or participate in both zone marketing campaigns.
INDUSTRY SERVICES
The Cradle Coast Authority has had a major role in Zone Marketing Group programs in
Tourism Tasmania provides a range of services to the tourism industry, including3:
the region. As the Project Manager for both the Western Wilderness and North West
•
Advice on starting a tourism business;
Coast zones, the Authority has managed promotional, administrative and planning for the
•
Advice on investing in tourism businesses;
•
Product and skills development, particularly in developing visitor experiences, online
zones from 2008/09 on. In addition, the Cradle Coast Authority has taken responsibility for the distribution and preparation of visitor guides and marketing prospectuses for both regions4.
skills and presence and events development; 2.2.2. CRADLE COAST AUTHORITY •
Marketing through the Discover Tasmania website, the TigerTOUR database the Visiting Journalist Program, international marketing initiatives and Zone Marketing Groups;
•
Links to wholesale tourism distribution partners;
•
Business grants and funding; and,
•
Tourism market research.
The Cradle Coast Authority was created by the nine Councils in the West and North West of Tasmania to co-ordinate projects and resolve issues that impact across the entire region. In addition to the support for Zone Marketing initiatives outlined above, they summarise their role in supporting the region’s tourism industry as: The Cradle Coast Authority is responsible for creating local, regional and state partnerships, and implementing strategies to ensure the region maximises its tourism potential. It also facilitates private
Tourism Tasmania has three regional Co-ordinators of Industry Development, who have a
investment through strategic development of key areas including
role in ensuring that the industry has knowledge of these services within their region.
infrastructure, planning, market research and training5.
They also collaborate with operators, regional and local tourism associations and local government on destination and product development projects.
The Cradle Coast Authority reports to an eight member board, one of these members represents the tourism industry.
4 3
Tourism Tasmania: Summary of Services for the Tourism Industry
4
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
5
Cradle Coast Authority: Annual Report 2010-11 Cradle Coast Tourism Contacts, June 2011
The Cradle Coast Authority and its tourism arm are funded by the nine member councils,
2.2.3.
Tourism Tasmania, industry via zone marketing programs and grants for Local, State and
LOCAL GOVERNMENT
The 9 councils that comprise the Cradle Coast are:
Federal Governments.
•
Burnie City Council;
•
Central Coast Council;
•
Circular Head Council;
•
Devonport City Council;
•
Kentish Council;
•
King Island Council;
As indicated in Table 1, there is a degree of ambivalence from industry towards the
•
Latrobe Council;
Cradle Coast Authority: in most categories relating to performance assessed in the
•
Waratah-Wynyard Council;
•
West Coast Council.
INDUSTRY PERSPECTIVES: RESPONSIBILITIES
In responses to the Tourism Business Survey, the Cradle Coast tourism industry identified intrastate marketing, and industry networking and communication as responsibilities that should be undertaken by the Cradle Coast Authority. Tourism Tasmania and the Cradle Coast Authority received similar levels of support for product development, training, and business development. INDUSTRY PERSPECTIVES: PERFORMANCE
Tourism Business Surveys neither satisfied or unsatisfied was the most frequent response.
King Island Council is the only one of the nine that does not operate or fund a Visitor TABLE 1 CRADLE COAST AUTHORITY PERFORMANCE
Information Centre: Circular Head Council provides funding for a Visitor Information Centre, but the Circular Head Tourism Association is responsible for its management.
Very Satisfied
Satisfied
Neither
Unsatisfied
Very Unsatisfied
Destination marketing
14%
29%
27%
18%
12%
Industry development
5%
25%
34%
23%
13%
Industry workshops and training opportunities
12%
27%
36%
20%
5%
Tourism strategy development
11%
30%
38%
11%
11%
Local Government responsibility is events management, development and marketing: and
Industry networking opportunities
13%
33%
35%
16%
3%
there were an equivalent number of responses that this should be undertaken by the
Access to business development tools
3%
31%
40%
24%
2%
Online & Social Media Communications
14%
27%
34%
14%
12%
Visitor and industry research
10%
23%
49%
11%
7%
Circular Head and King Island Councils do not have a tourism officer or manager member listed in their organisational summaries6; Waratah-Wynyard have recently advertised for a Tourism Officer. INDUSTRY PERSPECTIVES: RESPONSIBILITIES
The only responsibility that respondents to the survey indicated that they see as being a
Cradle Coast Authority. The provision of visitor information services was another area that received support as a Local Government responsibility, although LTAs received marginally more support than Local Government.
Source: Cradle Coast Tourism Business Survey, 2011. 6
Based on Cradle Coast Tourism Contacts, and Council websites. CRADLE COAST AUTH ORITY DECEMBER 2011
5
INDUSTRY PERSPECTIVES: PERFORMANCE
The area of Council performance that the Cradle Coast tourism operators are most satisfied with is Event Management, which is also an area seen as a Council responsibility as discussed above.
In most aspects of Council performance the
INDUSTRY PERSPECTIVES: RESPONSIBILITIES
The only responsibility that received a substantial level of support as a LTA responsibility
responses included significant amounts of Neither and Very Unsatisfied.
in the Tourism Business Survey was visitor information services.
TABLE 2 COUNCIL PERFORMANCE
INDUSTRY PERSPECTIVES: PERFORMANCE
Respondents were generally satisfied with the performance of their LTA, as indicated by Very Satisfied
Satisfied
Neither
Unsatisfied
Very Unsatisfied
Destination Marketing
9%
22%
28%
11%
30%
Industry Development
3%
11%
34%
15%
36%
Online & Social Media Communications
10%
16%
26%
15%
33%
Industry Communication
10%
10%
36%
16%
28%
Event Management
5%
32%
27%
11%
24%
Table 3. The only area that received a substantial number of Very Unsatisfied results was Research, which is only received 7% of responses that it should be an undertaken by
Source: Cradle Coast Tourism Business Survey, 2011.
2.2.4. LOCAL TOURISM ASSOCIATIONS The Cradle Coast Region has at least 15 Local Tourism Associations, in a variety of forms and interests. The prominent LTAs are listed in Appendix A. It is important for the newly formed RTO for the Cradle Coast region to consider how this
LTAs. TABLE 3 LOCAL TOURISM ASSOCIATION PERFORMANCE Very Satisfied
Satisfied
Neither
Unsatisfied
Very Unsatisfied tisfied Unsa
Visitor servicing
16%
35%
27%
12%
10%
Public relations and communications
20%
29%
27%
10%
14%
Local visitor guide or map
37%
22%
22%
6%
12%
Industry networking functions
12%
31%
33%
14%
10%
Familiarisation tours
15%
19%
35%
13%
19%
Research
2%
21%
36%
7%
33%
number of LTAs impacts on its ability to communicate and respond to industry. There are a number of successful LTAs in the region, and the RTO needs to consider how to ensure that the industry members who have built strong associations are not disenfranchised while creating a workable number of broadly representative LTAs. The State of the Region Report highlights that the West Coast has experienced the weakest performance in tourism in recent years. Whilst some of this is the result of changing visitor patterns in Tasmania, the lack of a well-coordinated Local Tourism Association is preventing coordinated action to curb the decline in tourism. Tourism Tasmania and the Cradle Coast Authority are working with the West Coast tourism industry to address this issue.
6
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
Source: Cradle Coast Tourism Business Survey, 2011.
WEAKNESSES
2.3. STREN GTH S A ND W EAKNE SSE S
A key weakness for the region is the Cradle Coast Authority is not currently led and STRENGTHS
informed directly by industry, a key consideration in the establishment of RTOs under
The Cradle Coast Authority has been acting as an RTO for the region and has over the
Tourism Tasmania’s Regional Tourism Initiative.
past four years taken responsibility for the Zone Marketing Group’s work. By having an
The number of LTAs a weakness in the region is, as this:
organisation ready to respond to the RTO role defined by Tourism Tasmania, the region’s tourism industry is in a position to successfully transition into the new governance
•
Hampers communication and negotiation with industry across the region;
structure.
•
Reduces the efficiency of the use of the resources allocated to tourism;
The number of Councils that support the Cradle Coast Authority, currently operate VICs
•
Makes clearly defined roles difficult, as each LTA has its own format and strategic
and have staff members to support their municipality’s tourism indicates a willingness to
direction; and,
provide resources to the industry. The number of LTAs in the region also suggests a level of engagement in broader regional objectives by tourism operators.
•
Tourism Tasmania has provided a clear framework and expectations regarding the
There is also too many VICs in the region, as all councils except King Island operate a
definition of roles for RTOs.
centre. Fewer VICs in key locations with broad cross-regional support may provide better
The capacity of Tourism Tasmania Coordinator of Industry Development and the Cradle
Adds complexity to forming industry representative committees and forums.
outcomes for Cradle Coast’s tourism industry.
Coast Authority to cooperate in promoting and developing tourism in the region is
The lack of a LTA representing the West Coast is also an issue for promoting tourism in
strength; it is important to ensure this continues under the new structure. Given the new
that municipality
RTO is to be the conduit between industry and Tourism Tasmania, it is important to promote regular communication between the two organisations.
Co-ordinator of Industry Development, who both have responsibility for product and
The number of tourism businesses in the region is significant, with over 750 businesses across the region according to the Cradle Coast Authority database.
There is an overlap in the goals of the Cradle Coast Authority and Tourism Tasmania’s destination development.
This provides an
excellent base on which to develop larger and more effective LTAs.
CRADLE COAST AUTH ORITY DECEMBER 2011
7
R EGIONAL T OURISM O RGANISATION R ESEARCH
3.
3.1. INTR ODU C TI ON
RTO BEST PRACTICE
To inform the discussions about forming a Regional Tourism Organisation in the Cradle
The findings also generally correlate with research into best practice regional tourism
Coast, this section presents three case studies of successful Victorian RTOs, and the
management undertaken in 2010, based on case studies. This research found that
results of a recent survey of Victorian RTOs.
effective RTOs7:
3.2. KEY F IND IN GS •
The case studies indicate that the most successful Tourism Boards include a mix of representatives, including industry, council and LTA.
•
Regular communication with members is seen as an important factor in RTO
role of the organisation in tourism; •
in business and tourism;
•
have longevity of people in executive positions and plan for succession;
structured to suit the region and its industries;
•
exhibit transparency and accountability in their decision-making;
Roles identified as being important for RTOs across the case studies and survey
•
develop effective partnerships with state or territory tourism organisations, local
include:
•
have developed effective Board structures with members with professional expertise
have established clear roles and responsibilities for their Board members;
Memberships and their relationship to LTA memberships vary, and are generally
•
have established a clear vision and identified the important values that underpin the
•
success; •
•
•
Cooperative marketing campaigns;
•
Keeping the local industry up to date with tourism trends and issues;
•
Representing industry to government
•
Developing sound strategic plans for the region
government/s, business groups and their community; •
foster a good level of cooperation amongst local and regional tourism and business operators;
•
coordinate and train local operators (e.g. service quality excellence, cooperative marketing initiatives); and
•
integrate with other RTOs in their broader region.
The management of VIC services was seen as a key aspect of the success of RTOs in the case study: this has a significant impact on the staffing and budget of RTOs.
•
Increasing yield and visitor dispersal throughout a region are seen as key roles of an RTO.
7
Sustainable Regional Tourism Destinations: Best Practice for Management, Development and Marketing - Sustainable Tourism CRC, 2010.
8
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
3.3. REG ION AL TOU R I SM OR GAN I SA TI ON C A SE STU D IES
There are eight local tourism associations (LTAs) aligned to Mornington Peninsula Tourism. They include geographical associations: •
Beachside Tourism;
3.3.1. INTRODUCTION
•
Frankston Tourism;
The following section presents case studies of Mornington Peninsula Tourism, Geelong
•
Hinterland Tourism Association; and,
•
Northern Mornington Peninsula Tourism;
Otway Tourism and Destination Melbourne to provide insight into successful Regional Tourism Organisations in Victoria which are well established. The case studies provide an overview of each region, their current organisational structure and will outline the key success factors which have led to strong performance over the years.
And sector based associations: •
Mornington Peninsula Golf Tourism;
•
Mornington Peninsula Gourmet;
RTOs through information available on the internet, and through interviews with CEOs
•
Mornington Peninsula Spa Association;
and senior staff to gain their perspectives on what have been important elements of the
•
Mornington Peninsula Vignerons Association;
METHODOLOGY
The case studies have been prepared by developing an understanding of each of the
success of their organisations. Mornington Peninsula Tourism is responsible for the operation of the region’s Visitor 3.3.2. MORNINGTON PENINSULA TOURISM
Information Centre (VIC), and they are located in the same building. This makes them visible to industry, and signals an approachability and open door policy. The co-location of
ORGANISATIONAL STRUCTURE
Mornington Peninsula Tourism is a special committee of the Mornington Peninsula Shire under Victoria’s Local Government Act, and a business division within the Shire’s Economic Development Unit. Mornington Peninsula Tourism is also an official Tourism
staff ensures that skills and tasks are shared, resulting in a strong understanding of how the region operates by both the VIC and Mornington Peninsula Tourism staff. This colocation also provides for streamlined direct marketing, visitor conversion, and prompt evaluation of marketing initiatives.
Victoria regional campaign committee, meaning that they receive State Government
The Shire provides funds for the staff and building; all other expenses are funded by the
funding to support their initiatives.
tourism industry.
Mornington Peninsula Tourism is responsible for cooperative marketing in partnership with the local tourism industry. It also has a role in ensuring the provision of quality
TOURISM BOARD
tourism experiences and visitor satisfaction. To fulfil this role they work closely with its
The Executive Officer of Mornington Peninsula Tourism reports to the manager of the
member businesses.
Economic Development Unit within the Mornington Peninsula Shire and also to the
Membership includes food and wine establishments, travel and touring companies, golf courses, attractions such as marine and water based activities, nature experiences, art, heritage and culture.
Mornington Peninsula Board of Management. The full board meets every two months and its role is to offer strategic advice and direction to Mornington Peninsula Tourism. There is a smaller elected executive board of seven representatives who meet on a monthly basis. The elected members of the Board of Management include: •
One per LTA; CRADLE COAST AUTH ORITY DECEMBER 2011
9
•
A representative from the Mornington Peninsula Shire
•
A representative from the Frankston City Council;
•
A representative from Parks Victoria; and,
•
Three skills based positions to provide a range of industry representation.
$675; and members can either be a Networking member or an Associate member. Networking members must be a financial member of an LTA. The Official Visitor Guide, Map, print and online advertising opportunities are at an additional cost above the membership fees. ROLES AND RESPONSIBILITIES
The mix of local government, LTA and sector specific representation is seen as a strength
Mornington Peninsula Tourism provides the following services to the region’s tourism
of the board.
industry:
COMMUNICATION
•
which are linked directly to ticketing and booking;
Mornington Peninsula Tourism provides regular communication to its members, through a •
variety of channels, including: •
Almost daily communication is made with members.
rooms, rates and availability online through Bookeasy, Room Manager/ResOnline;
member only section on their website where they can download all documents
•
•
•
•
Linking businesses together to create packages to further enhance the tourism experience on the peninsula;
Actively communicates to members via staff representation at LTA meetings, regular emails, newsletters and other industry forums;
Coordinates and designs print media editorial, tactical print advertising and online emarketing opportunities in-house;
Coordinate inclusive monthly networking events at no cost to members. These are held at a member business and they regularly attract between 60 and 100 members;
Assists members with industry skill development and building professionalism including training and tools to assist accommodation operators in managing their
They have access to a
relevant to the membership;
Creates strategic cooperative marketing campaigns for the Mornington Peninsula
•
Develops printed materials – Official Guide for Visitors, Official Touring Map, Trade and Group Touring Guide;
STAFF
The Mornington Peninsula Tourism team comprises eight staff members, this includes: •
The Executive Officer;
•
Three marketing staff responsible for all of the design of print media, print advertising and online marketing opportunities; and
•
•
Organises familiarisation tours and liaison for industry, trade and media;
•
Develops marketing partnerships with Melbourne and neighbouring regions to promote overnight linked touring;
•
Partners with LTAs and members to develop events to increase off-peak visitation;
•
Visitor Statistics and Reporting: reporting on visitor trends, business health and
Four staff responsible for all bookings.
service standards as well as measuring customer satisfaction. They have an independently produced ‘Health of Tourism’ economic impact survey and ‘Tourism
There are also 40 volunteers involved in the operation of the VIC.
Indicators Report’ that are both conducted annually; MEMBERSHIP STRUCTURE
Mornington Peninsula Tourism has approximately 400 members. There are three membership levels; basic, active online and marketing and fees ranging from $125 to
10
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
•
Offers buy-in opportunities with varying participation costs to make it easier for all business sizes to commit to an array of marketing projects;
•
Provides mentoring, start up advice sessions for new businesses and formal
•
workshops linked to state-wide training priorities; and •
success, and they regularly participate in the Victorian Tourism Awards each year. They were winners and Hall of Fame recipients in 2011 for specialised tourism
Works with Tourism Audit Services, a tourism audit business, to benchmark the
services, as well as winners in the Australian Tourism awards in 2010. They also
delivery of services by MPT member businesses. •
actively assist the region’s businesses with their submissions, and deliver Tourism Excellence (Tourism Victoria program) workshops;
Operates the Mornington Peninsula Visitor Information Centre in Dromana, which includes: •
Retailing gifts & souvenirs; locally produced where possible;
•
Operates an online booking service for members for events, attractions, tours and packages;
•
Continuous improvement is an important aspect of Mornington Peninsula Tourism’s
•
The sub regional areas are clearly defined and marketed for their unique tourism assets;
•
Their marketing campaigns are linked directly to ticketing and booking; and
•
They manage an effective regional website with online booking capability.
Has a booking team of four staff that prepare over 9,000 accommodation quotes per year and book almost 9,000 room nights per year;
KEY SUCCESS FACTORS
Mornington Peninsula Tourism identifies the following as factors in their success as an RTO: •
Strong leadership and longevity of staff members;
•
A cohesive, well networked and mature industry. As a result they understand and participate in marketing activity and research, this in turn delivers results for the industry and the destination;
•
The integration of the VIC with Mornington Peninsula Tourism works very well and makes for a more engaged industry. This enables Mornington Peninsula Tourism to assess the impact of their marketing through the visitation to the visitor centre, they can use the volunteer workforce, and the industry has one location to visit both visitor services and marketing;
•
Research is undertaken annually, to examine the health of their tourism industry, businesses, service standards and customer satisfaction. This provides support for ongoing council funding of their services, promotes their work to their member base and educates the community about the importance of the tourism industry to the Mornington Peninsula.
CRADLE COAST AUTH ORITY DECEMBER 2011
11
3.3.3. GEELONG OTWAY TOURISM ORGANISATIONAL STRUCTURE
Geelong Otway Tourism marketing is funded through membership fees and direct contribution from industry. Geelong Otway Tourism
see one of its strengths as the
differentiated promotion of the region in key markets: resources are pooled to market internationally as part of the Great Southern Touring Route, and domestic activities as
Formed in 1993, Geelong Otway Tourism was one of the first regional tourism bodies in
part of Great Ocean Road Marketing and Melbourne and Surrounds.
Victoria. It resulted from the amalgamation of six municipalities to create the City of Greater Geelong, which funds staffing, accommodation and general operations.
Geelong Otway Tourism is the main force driving the Great Southern Touring Route and the Great Ocean Road programs. Alongside Shipwreck Coast Tourism, they have been
Geelong Otway Tourism has a memorandum of understanding with each of the municipalities within its region; Surf Coast Shire, Colac Otway Shire, Golden Plains Shire and the Borough of Queenscliffe. These MOUs include the financial agreement, and define obligations of Geelong Otway Tourism and the Councils: each council has
able to dramatically increase the profile of the Great Ocean Road in the international and domestic markets. These marketing programs have helped the region to achieve enormous growth in tourism, making a substantial economic and social contribution to the Geelong Otway region.
negotiated different levels of service and financial support. BOARD STRUCTURE
Geelong Otway Tourism is an incorporated association with a board of 12 members: four are Councillors and eight represent the industry. Four of the industry representatives are from the LTAs, invariably the chairperson from each association. The remaining four members are skills based positions such as marketing, finance or managing a particular attraction or business. The board meets every two months. COMMUNICATION
Geelong Otway Tourism communicates with its stakeholders through: •
Quarterly catch ups with the relevant councilor and chairman of each LTA;
•
They have regular communication with all of the board members and therefore all of the LTAs.
•
They have reporting systems in place to ensure members are up to date on actions and strategies;
Source- Geelong Otway Tourism Board Induction Manual
•
Geelong Otway Tourism presents an annual progress report to each of the councils, which examines the yearly performance and outlines goals for the forthcoming year;
Geelong Otway Tourism is associated with four LTAs: Tourism Geelong, Bellarine Tourism, Otways Tourism and Surf Coast Tourism. These relationships are also specified through MOUs, which have a similar scope to those with the councils.
•
Statistics on tourism in the region are regularly distributed to each of the Councils;
•
Geelong Otway Tourism is In the process of setting up an industry website that will be integrated with social media channels.
12
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
STAFF
Geelong Otway Tourism has 14 staff members, plus 115 volunteers within the region’s Visitor Information Centres. FIGURE 1 GEELONG OTWAY TOURISM ORGANISATIONAL STRUCTURE
Executive Director
Deputy Executive Director
Source- Geelong Otway Tourism Board Induction Manual MEMBERSHIP STRUCTURE
Geelong Otway Tourism has over 1,100 members, representing all aspects of the tourism industry in the region. They have a three tiered member structure: •
Friends of Tourism for individuals, volunteers, non for profit groups;
•
Associate Membership for small businesses who indirectly benefit fr and,
•
Direct Tourism Businesses for small, large or corporate tourism businesses.
KEY SUCCESS FACTORS
3.3.4. DESTINATION MELBOURNE
Geelong Otway Tourism sees the following as key factors in their success as an RTO: ORGANISATIONAL STRUCTURE
•
Strong board administration and composition with a skills based board and an even representation across all regional areas;
•
Through the employment of a business manager, they can ensure that there is strong communication structures in place, that accountability is maintained and that the organisation is running efficiently;
•
Destination Melbourne is the regional tourism organisation responsible for marketing Melbourne. Although vastly different to the Cradle Coast being based in a capital city, they provide contrast to the traditional RTOs in the previous sections. The organisation is ten years old and commenced as a publishing house producing visitor guides for Melbourne, which provide financial sustainability. They are a not for profit
Transparent and open communication between board members, local government,
company limited by guarantee and they have no member base. Their aim is to build the
LTAs and the local industry;
capacity of the industry, provide leadership and advocacy that engages business, government and community and entices people to visit Melbourne.
•
Developing and maintaining industry partnerships at local, state and national levels.
•
Provide cost-effective and integrated marketing campaigns through integration with
BOARD STRUCTURE
Tourism Victoria and Tourism Australia programs, and incorporating local tourism
The Destination Melbourne board has 12 skills and industry based members, who
association activities;
nominate through an expression of interest process. The board has three sub
•
Strong visitor services network with regular communication and networking between centres to ensure strong product knowledge and professional service delivery;
•
these sub committees meet on a regular basis and include a Destination Melbourne staff member. The Chairperson of each sub-committee is responsible for updating the rest of
A high level of self-sufficiency for it’s marketing income. Geelong Otway Tourism
the board members on any challenges, opportunities or developments that have occurred
does not rely heavily on government funding, rather on membership income,
since the previous board meeting. Quarterly reports on Destination Melbourne’s
industry and sponsorship support which leaves them less vulnerable to changes in
performance are provided to the board by the CEO.
local government. In 2006/07, 93% of the marketing budget was sourced from industry contributions8. •
committees; Marketing and Communications, Finance and Risk and Strategy. Each of
The success of this board structure is the representation of individuals from all facets of the industry and the balance they strike between the industry and skills representation.
They operate a successful business events unit. Business Events Geelong is an industry leader in attracting events and conferences in Australia, and have won
COMMUNICATION
numerous State and National awards. A key to their success is the ongoing
Destination Melbourne believes that a key factor in its success as an RTO is the regular
collaboration with the peak industry bodies such as the Melbourne Convention and
communication to their stakeholders. They have a database of nearly 2,000 industry
Visitors Bureau and Business Events Victoria.
contacts, who they engage with through various channels on a regular basis. This provides Destination Melbourne with the opportunity to connect with stakeholders and provide them with information about the tourism industry, marketing opportunities, industry development opportunities, information on upcoming events and messages from the CEO.
8
Donovan, R. (2008) ‘Best Practice Review; Geelong Otway Tourism 2006–07’, Insight Communications, Camperdown.
14
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
Destination Melbourne extensively uses new media to communicate, including email newsletters, twitter, a blog on their website and Facebook. These communication channels enable them to develop the Melbourne tourism industry community and helps build their reputation as leaders in the industry. PARTNERING WITH LOCAL GOVERNMENT
Although they are not affiliated with Councils, Destination Melbourne recognises the role that Local Government plays in supporting the visitor experience. Their independence enables them to work closely with metropolitan councils throughout Melbourne on
FUNDING SOURCES
Unlike most RTOs, Destination Melbourne does not rely on membership subscriptions or government funding: nearly 90% of their revenue comes through providing marketing and industry development programs. KEY SUCCESS FACTORS
Destination Melbourne sees the key factors in their success as: •
officer;
developing tourism. Since 2002, Destination Melbourne has offered local councils and trader groups opportunities to participate in their marketing and industry development programs at a heavily subsided rate.
•
A sound strategic plan;
•
Clear communication to stakeholders and the wider tourism industry of their key successes and various marketing opportunities, carried out through newsletters,
A recent initiative by Destination Melbourne is the development of the Visiting Friends and Relatives Campaign. The campaign offers council partners a marketing opportunity to raise awareness of tourism and product in their municipality. The project has a variety of
blogs, Twitter and Facebook; •
This only further encourages industry buy-in;
of the campaign is to build community pride in residents. The brand “Discover Your Own •
influence over visitor behaviour and that if they are educated, intra regional dispersal can be influenced and they can support the visitor experience for people visiting their friends and relatives.
Regular industry familiarisation tours and industry development sessions which engage not only the Melbourne industry, but the tourism industry in regional Victoria.
elements including communication toolkits, print, digital and video. The overarching goal Backyard” was built on the understanding that the host (the resident) has the greatest
Strong leadership; a dynamic, enthusiastic and well networked chief executive
Successful engagement of many stakeholders not traditionally thought of as being a part of tourism, such as through the Visiting Friends and Relatives program
•
Provide an information booklet through their website for those interested in engaging with the tourism industry;
ORGANISATIONAL STRUCTURE
•
interests within the industry and are provided with opportunities to attend networking events, conferences and forums as well as encouraged to sit on boards and committees. Destination Melbourne understands the importance of providing opportunities for staff development, and also the benefits to the organisation of the increased visibility within the
Advocating for the tourism industry and its value to the social and economic prosperity of local communities.
Destination Melbourne has 13 staff members. Staff are encouraged to pursue their •
Development of the Melbourne Tourism Industry Leadership Program which helps foster those new to the tourism industry and further promotes and enhances the Destination Melbourne brand.
tourism community.
CRADLE COAST AUTH ORITY DECEMBER 2011
15
3.4. RTO ST RU C TU RE EX AMPLE S 3.4.1. TOURISM BOARDS
•
1 member to represent the unincorporated RTO members
NORTHERN RIVERS TOURISM, NSW
10 Members12: DAYLESFORD MACEDON RANGES TOURISM, VIC
The Daylesford Macedon Ranges Tourism Board consists of 12 members9: •
4 representing each of the Councils within the region
•
7 independent representatives, representing industry
•
A non-voting member from Tourism Victoria
•
8 industry representatives
•
1 from Department of Environment and Climate Change (NSW National Parks)
•
The CEO of Northern Rivers Tourism
RIVERINA REGIONAL TOURISM, NSW
The 9 board members are industry positions, and are drawn from across the region. NORTH EAST VICTORIA TOURISM BOARD
Board members are sourced through advertising for applicants13.
This board includes 6 local government areas, and at 18 members is the largest board included in this overview10. The members are: •
7 from industry
•
6 representing each of the Councils
•
3 representing the management boards of each of the alpine resorts in the area
•
Tourism Victoria
•
Parks Victoria
YARRA VALLEY REGIONAL TOURISM ASSO CIATION
The Yarra Valley Regional Tourism Association web-site states that they have “a Committee of Management which is voted in annually at the Annual General Meeting; its primary function is to act on behalf of its members”14. This indicates an industry representative board. EXPERIENCE PERTH
Experience Perth, the Perth Region Tourism Organisation is overseen by a skill- based board consisting of representatives from the tourism industry15.
OUTBACK REGIONAL TOURISM ORGANISATION, NSW:
13 members11: •
8 from Local Government
•
2 from LTAs
•
1 from National Parks and Wildlife Service
•
1 from industry
3.4.2. MEMBERSHIP PERTH REGIONAL TOURISM ORGANISATION
Two levels of membership, Gold - $250, and Silver - $150. Both levels of membership receive basic member rights, a website listing on Experience Perth, marketing opportunities, newsletters and voting and board membership right. Gold membership
12 9
http://www.dmrtourism.com.au/about-us 10 http://www.nevt.com.au/home/About-NEVTi.html 11 http://www.corporate.outbacknsw.com/about.html
16
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
http://www.northernriverstourism.com.au/?page=board http://www.visitriverina.com.au/index.cfm/page/248 14 http://www.visityarravalley.com.au/pages/yarra-valley-regional-tourism-association/ 15 http://www.experienceperth.com/docs/publications/prto-membership-prospectus-2011-12.pdf 13
increases the marketing provision, including enhanced Experience Perth website listing,
•
product updates in the newsletter and priority participation in other marketing opportunities15.
Associate Membership for businesses or individuals that support tourism, but are not directly involved in the industry - $220 per year.
•
Partnership Membership for members of other Northern Territory RTOs that do not have a registered office in the Top End region - $110 per year
YARRA RANGES BUSINESS AND TOURISM, VIC
Membership prospectuses are broken into categories such as accommodation, attractions, wineries, retail/restaurant/service, conference/wedding venue and Farm Gate
•
Interstate Membership for members of interstate RTOs that do not have a registered office in the Top End region - $110 per year
operations16. Fees are based on the type and size of the business, and range from $275 for Farm Gate and retail/restaurant operations to $1,375 for a large accommodation or attraction business. When applying for RTO membership, applicants also select one of the 3 LTAs in the region to also be a member of. NORTH EAST VICTORIA TOURISM
This Regional Tourism Organisation does not have direct industry membership; it offers free industry newsletter and professional development opportunities17.
Income is
generated directly from industry mainly through cooperative marketing campaigns. SOUTH COAST REGIONAL TOURISM ASSO CIATION, NSW
Membership of this RTO is $50 per year plus GST for businesses and individuals, and can either be paid in conjunction with LTA membership fees or invoiced to the prospective member directly18. Town association membership is $200 per year plus GST, and for municipality association’s membership is $1,000 per year plus GST. Membership
does
not
include
collaborative
marketing
initiatives,
development
opportunities and corporate website tools: these are provided at a discount to members. TOURISM TOP END, NORTHERN TERRITORY
Tourism Top End is the RTO based in Darwin. They offer four levels of membership19: •
Full Membership for businesses offering a primary tourism product (eg: Tour Operator, Accommodation, Attraction, Travel Agent) - $440 per year.
16
yrbt.com.au www.nevt.com.au 18 corporate.southcoast.net.au 19 http://www.tourismtopend.com.au/pages/become-a-member/ 17
CRADLE COAST AUTH ORITY DECEMBER 2011
17
3.5. REG ION AL TOU R I SM OR GAN I SA TI ON SU RVEY
TABLE 4 RTOS WITH MORE THAN 100 MEMBERS
RESU LT S
% RTOs
Max
Average
Median
JanJan-09
58%
1,052
360
270
This section provides a summary of relevant result of a recent survey of Victorian RTOs. The
JanJan-10
58%
1,026
374
300
survey was open to all regional Tourism Boards, campaign committees, regional tourism
JanJan-11
62%
1,033
362
275
3.5.1. INTRODUCTION
organisations and regional tourism associations in Victoria. MEMBERSHIP FEE METHODOLOGY
A link to the survey was emailed to 27 RTOs in Victoria during October 2011. The 19 survey responses received were then collated and analysed. All information collected from the
Of the RTOs that indicated that they have members, 69% indicated that they charged an annual fee.
surveys was obtained in confidence with all information aggregated and no reference to
A third of the RTOs with members have a flat fee, the rest offer member options: options
individual results was made.
range from $95, up to $1,900. Some RTOs calculate member fees on a sliding scale, mostly
The survey data relates to the 2010/2011 financial year. Were applicable, comparisons are made with the 2007/08 financial year when a similar survey was carried out across Victoria.
dependent on the size and type of business: all member benefits are the same regardless of fee. Others offer a number of different fee options and benefits, ranging from basic benefits such as VIC brochure display, website listing or invites to networking functions through to marketing and industry development benefits.
3.5.2. MEMBERSHIP The RTOs that have a membership base have significant variation in the percentage of their NUMBER OF MEMBERS
budget generated through membership fees, from 5% to 50%, with an average of 18%.
Approximately 60% of the RTOs included in the survey indicated that they had membership base of more than 100 during the 2010/11 financial year. On average, these memberships
3.5.3. STRATEGY AND PLANNING
comprised:
Only one respondent to the RTO survey indicated that they did not have a tourism strategy. Of the RTOs that develop a strategy, a majority of them indicated that they review it annually
•
78% were Businesses;
•
12% were from Local Tourism Associations;
•
9% were from Local Government; and,
Table 5 provides a summary of what the RTOs saw as their main strategic directions, and
•
The remaining 1% were private individuals.
therefore their roles in developing tourism in their region.
There is one large RTO in Victoria, with over 1,000 members, the next largest has approximately 450 members. Table 4 indicates that member numbers have been relatively stable over the past two years.
(61%): the next most common period was three years (28%).
just over 20% of RTOs that do not currently offer accommodation booking are considering it,
TABLE 5 RTO STRATEGIC DIRECTIONS
but none are considering tours and attractions. Strategic Direction
%Responses %Responses
Facilitate industry growth and development
88.9%
Increase yield
77.8%
Attract visitors
72.2%
Increase visitor dispersal
72.2%
Facilitate industry leadership
72.2%
Development of a sustainable tourism industry
66.7%
Although none of the 74% of RTOs that currently undertake market research see it as an important aspect of their role, 59% of those who are not currently providing this service are considering offering it. Events management and bidding are not activities of many Victorian RTOs, although events bidding is being considered by 39% of those not currently offering the service. FIGURE 2 RTO SERVICES Currently Provided Provided
Importance 20 - Top 3
Importance Importance 21 - Relative
Considering 22 Providing
Marketing
95%
63%
67%
0%
Production of marketing collateral
90%
21%
24%
0%
Market research
74%
0%
0%
59%
Provide marketing buy-in opportunities
79%
16%
20%
36%
Tourism product and infrastructure development and planning
68%
26%
38%
24%
Service Product development
61.1%
Infrastructure investment attraction
44.4%
An interesting aspect of this is that more RTOs identified increasing yield as an important direction than attracting visitors. It is also of note that as many RTOs saw visitor dispersal as important as attracting visitors.
Member training and advice
79%
21%
27%
36%
3.5.4. SERVICES
Maintenance of the organisation's website
90%
16%
18%
0%
Marketing was highlighted as one of the main services provided by the Victorian RTOs, with
Professional development opportunities
90%
26%
29%
73%
all but one respondent indicating that they provide this service; it is also seen as the most
Industry leadership opportunities
63%
21%
33%
21%
important service. Cooperative marketing is a significant subset of the marketing activity, with
Networking opportunities
84%
11%
13%
49%
approximately 85% of RTOs indicating that they undertake these campaigns.
Familiarisation tours
84%
0%
0%
0%
Provide lobby power for members
68%
11%
15%
0%
While most RTOs produce marketing collateral, networking opportunities and familiarisation
Operate Visitor Information Centre/s
21%
11%
50%
0%
tours they were not viewed by many as important aspects of the service they provide.
Accommodation Booking Service
26%
11%
40%
21%
Of the 68% of respondents that provide product and infrastructure development and planning,
Tours and activities Booking Service
26%
0%
0%
0%
38% indicated that it was an important aspect of their service provision. Also of note is that
Coordinate the Official Visitor Guide
63%
0%
0%
42%
although only 21% operate VICs, half of those see it as an important aspect of their service
Manage events within your region
16%
0%
0%
18%
delivery.
Bid for business events
21%
0%
0%
39%
All of the RTOs that operate VICs also provide accommodation and tours and attractions
Liaison with local, state and federal gov’ts
68%
21%
31%
0%
booking services; one RTO that does not operate a VIC operates both types of booking service. The provision of accommodation booking was seen as important by 40% of those who provide it, yet none identified tours and attractions booking as important. Also of note,
20
Based on the request in the survey for RTOs to identify their 3 most important services. Relative Importance is the percentage of those who provide a service who identified it as important. 22 Percentage of those not currently providing the service. 21
CRADLE COAST AUTH ORITY OCTOBER 2011
19
FIGURE 3 RTO FUNDING SOURCES 3.5.5. ORGANISATIONAL SUMMARY Souvenirs
0.30%
The survey indicates that RTOs in Victoria are incorporated associations (66.7%) followed by
Accom & Tour Bookings
0.40%
a company limited by guarantee (27.8%). The remaining 5.6% are Special Committees of
Sponsorship
Council operating under the Victorian Local Government Act: actions taken by these
Other
LEGAL FOUNDATION
committees are in effect actions of the council.
These are analogous to the Special
3.30% 4.10%
Membership
Committees of Council that operate under Section 24 of the Local Government Act in
8.30%
Grants
Tasmania.
10.30%
Cooperative Marketing STAFF AND VOLUNTEERS
State Government
On average, each RTO had 4.7 employees and 31.7 volunteers in 2011. There has not been
Local Government
significant change in staff levels over the past 4 years, as indicated in Table 6. The data does
16.90% 17.80% 38.50% 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
indicate that there has been an increase in volunteers at RTOs over the 4 year period. TABLE 6 STAFF AND VOLUNTEERS: 2007-10
EXPENDITURE
Staff
On average, most RTOs spend most of their funding on marketing and wages; together these
Volunteers
items account for almost 70% of RTO expenditure.
2007
2011
2007
2011
Average
5
4.7
23.25
31.7
Median
3.5
4
5.5
16.5
Maximum
15
14
100
110
FIGURE 4 AVERAGE RTO EXPENDITURE SUMMARY
Merchandise
0.10%
Professional Development
0.60%
LTA
0.40%
VIC RTO FUNDING
Based on the survey results, annual RTO funding in Victoria ranges from $140,000 to $3.2m,
Product Development
with an average of just over $1m.
Industry Development
The survey also indicates that almost half of RTO funding is sourced from local and state governments. Marketing initiatives that are supported by industry funding also generate a significant amount of income for RTOs. Also of note is that on average memberships only generate 8% of RTO funding: even when only RTOs with memberships of over 100 are considered the average funding is only 14%.
20
REGIONAL TOURISM ORGANISATIONS DI SCU SSI ON PAPER
0.80%
Other
2.10% 2.80% 9.90%
Administration
13.80%
Wages
25.90%
Marketing
43.60% 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
3.5.6. VISITOR INFORMATION CENTRES Approximately 21% of RTOs indicated that they operate Visitor Information Centres: responsibility for these centres have a significant impact on the size of the RTO, as shown in Table 7. TABLE 7 VIC STAFFING AND FUNDING Overall
With VIC
Without VIC
Ave. Staff
4.7
9.7
3.3
Ave. Volunteers
31.7
63.8
10.3
Ave. Annual Funding
$1.02m
$3.2m
$600,000
The number of staff and volunteers is largely dependent on whether the RTO operates a Visitor Information Centre. These RTOs have almost 6 times the number of volunteers and three times the staff members. There is also a significant impact on the RTO budget through the operation of a VIC: on average RTOs that operate VICs have an additional $2.6m in funding. Only two RTOs who operate VICs provided information on their expenditure: they estimated that 12% or 13% of their expenditure was allocated to the VIC.
CRADLE COAST AUTH ORITY OCTOBER 2011
21
4.
R EGIONAL T OURISM O RGANISATION O PTIONS
4.1. INTR ODU C TI ON
4.1.1. SUMMARY OF RECOMMENDATIONS
This section provides options and recommendations for the structure of an RTO for the
The recommended model for the RTO is:
Cradle Coast region, based on the assumption that the Cradle Coast Authority will assume the role. This assumption is based on the support from the region’s tourism industry for the Cradle Coast Authority as highlighted din the State of the Region Report, and Tourism Tasmania’
•
required Tourism Tasmania representative; •
Members of an Interim Tourism Board, to operate in the first year of the RTO, should be sought by expression of interest, and then the Interim Tourism Board
position that there should not be new layers of governance created that do not benefit the
decides the ongoing progress;
industry. The options considered relate to how the Cradle Coast Authority can meet the RTO
A Tourism Board of 7-9 members, representing a mix of industry skills, plus a the
•
The RTO should consult and negotiate with LTAs to ensure engagement with RTO initiatives and activities
requirements as set out Tourism Tasmania’s Regional Tourism Initiative, particularly: •
The organisation structure;
•
RTO fees should be standard, to encourage higher levels of membership
•
A tourism industry specific board;
•
The RTO should have responsibility for the following activities:
•
The RTO’s relationship with members and LTAs; and,
•
Provide leadership in securing large tourism events for the region
•
Other roles for an RTO that should be considered.
•
Product and infrastructure development (including development facilitation)
•
Research (visitors, industry)
•
Industry development (including networking and training)
•
External marketing (Tasmania and Interstate)
•
Communication
•
Coordinate Visitor Information Services in the region, to provide the most benefit to the tourism industry from the resources available
22
REGIONAL TOURISM ORGANISATIONS D ISCUSSION PAPER
4.2. C RADLE C O A ST AU TH OR ITY A S TH E R TO
TABLE 8 RESPONSIBILITY COMPARISON: CRADLE COAST AUTHORITY V. RTO
There is broad support for the Cradle Coast Authority to transition into the RTO role defined in Tourism Tasmania’s Regional Tourism Initiative: as noted in industry consultation, “if it ain’t broke don’t fix it”. The options discussed in this paper assume that
Cradle Coast Authority
RTO RTO
the Cradle Coast Authority will fill the RTO role.
Intrastate marketing
30%
22%
Tourism Tasmania have stated that they would not support adding to the existing number
Interstate marketing
21%
12%
of organisations and layers of governance, and that there needs be less fragmentation in
International marketing
regional tourism. The purpose of this is to increase the value of the output from regional
Product development
tourism through co-ordinated resources and actions. As the Cradle Coast Authority is an existing and highly regarded organisation, there is a strong basis to the assumption that
3%
8%
29%
13%
Industry networking and communication
30%
21%
Visitor information services
13%
19%
Training
29%
16%
they will transition into the role defined in the Regional Tourism Initiative.
Business development tools and advice
34%
13%
The results of the Cradle Coast Tourism Business Survey also imply that industry
Events management, development and marketing
24%
20%
supports this position. Table 8 compares the percentage of respondents that identified
Visitor Markets and industry research
23%
11%
the Cradle Coast and an unspecified RTO as their preferences of responsibility for regional tourism activities. In 8 of the 10 activities included in the survey question, there
Source: Cradle Coast Tourism Business Survey, 2011
was a stronger preference for the Cradle Coast Authority: the two activities that an RTO received more preferences, research and visitor information services are not activities
4.2.1. ORGANISATIONAL MODEL
typically undertaken by RTOs.
Cradle Coast Natural Resource Management (NRM) provides the organisational model
Based on the assumption that the Cradle Coast Authority will assume the role of the RTO with the implementation of the Regional Tourism Initiative, the Cradle Coast Authority needs to address aspects of the requirements set out by Tourism Tasmania. These are:
that will enable the tourism functions carried out by the organisation to be guided by a separate, industry specific board whilst continuing to be part of the Cradle Coast Organisation. NRM has a similar role to an RTO, if ‘natural resources’ was replaced by ‘tourism’ in the quote from their website below this would be an adequate description for a regional tourism body:
•
An industry board;
•
Direct input from industry;
•
To have strong engagement in the region via LTAs; and
•
To improve the outcomes generated by the resources allocated to tourism in the
A not-for-profit organisation,
Cradle Coast NRM fosters collaborative
management of our region’s natural resources by government, industry, private enterprise, Aboriginal and community groups through the provision of information, resources and technical support.23
region, which are discussed in the Other Roles and Responsibilities section.
23
http://www.cradlecoastnrm.com/business.html CRADLE COAST AUTH ORITY OCTOBER 2011
23
NRM has a nine member board and 14 staff members.
The criteria for committee
•
24
membership are : •
Capacity to adequately represent the whole geographic region;
•
Capacity, skills and expertise to fulfil the roles of a Regional Natural Resource
workplan. The Cradle Coast Authority would then be responsible for the day to day operation of these plans and strategies; •
management; •
The Tourism Board may approve new
positions, approve changes to position descriptions and confirm employment
Membership to provide a balance of natural resource management interests in the region and gender, and to contain appropriate expertise on natural resource
RTO staff would be employed by the Cradle Coast Authority, to limit the reproduction of administration services.
Management Committee; •
Approving the Regional Tourism Plan, and the RTO’s Business Plan and annual
advertising. •
Tourism initiatives proposed by the RTO, such as marketing campaigns, seminars and development opportunities would be approved by the Tourism Board: this may be based on the cost of the initiative.
Committee to include representation from the Aboriginal community, State and local government, community and conservation interests, industry, and land managers,
•
including public land managers;
4.2.3. RTO FUNDING
The majority of members will be non-State Government members.
Currently, the financial contribution of the Cradle Coast Authority’s nine member Councils
The staff members are funded by State and Federal Government, and are most are funded on a project basis. One position is also partially funded by the West Coast Council.
includes funding for one tourism staff member.
Other funds for tourism staff and
initiatives are sourced from Tourism Tasmania, industry via the Zone Marketing Groups, and other local, state and Commonwealth Governments through grants programs and fee for service projects. The Council funding for the Cradle Coast Authority also provides for
The NRM example provides a basis for the RTO: it can be operationally aligned with the Cradle Coast Authority, and receive strategic direction from an industry representative Tourism Board within the existing structure of the Authority. 4.2.2. MANAGEMENT RESPONSIBILITIES The responsibilities of both the Tourism Board and the Cradle Coast Authority for the RTO will need to be detailed as part of the process of establishing the new organisation. At a basic level, the Tourism Board would be responsible for setting strategy and confirming major initiatives of the RTO, while the Cradle Coast Authority would be responsible for the day to day management and administration. Although the details of this arrangement require further discussion, the role of the Tourism Board may include:
the administration support for the tourism team. The RTO funding can be expected to be drawn from: •
Ongoing support from Local Government;
•
Ongoing support from State Government;
•
Project specific funding and grants from all tiers of Government;
•
Membership fees; and
•
Industry paying for RTO services, such as cooperative marketing, professional development, and industry networking events.
The results of the Victorian RTO survey indicate that approximately two thirds of RTO funding is received from Local Government, State Government, and Cooperative Marketing. It is also of note that although co-operative marketing campaigns are responsible for generating 17% of RTO funding, it comprises 40% of expenditure,
24
Tasmanian Natural Resource Management Framework, Dept. Of Primary Industries, Water and Environment, 2002 24
REGIONAL TOURISM ORGANISATIONS D ISCUSSION PAPER
highlighting the importance of Government funding to their ongoing viability.
The financial implications of the options in the following sections will need to be
Some Tourism Boards also have a Director from outside the tourism industry, but have
considered as the preferred RTO structure takes shape, particularly following
extensive experience in a field that is allied to the Organisation’s aims, such as marketing.
determination of the roles and responsibilities of the RTO and the LTAs, and the structure TABLE 9 CRADLE COAST TOURISM BUSINESSES
of industry fees.
4.3. TOU R IS M INDU S TRY BOA RD Tourism Tasmania require that the RTO be guided by a Tourism Board that is
Accom
Attract ’s
Event
Food
Hire
Retail
Tours
2
1
4
44
2
4
62
8
4
2
72
5
2
2
52
14
4
230
Latrobe
21
16
councils: one Tourism Board member will represent Tourism Tasmania, but will not have
Kentish
36
20
Devonport
32
19
1
Central Coast
25
14
4
Sub Region 1 Total
114
69
5
8
16
Burnie
19
11
1
3
5
WaratahWaratah-Wynyard
36
11
1
1
6
3
Circular Head
45
14
1
1
4
10
Sub Region 2 Total
100
36
3
5
15
13
3
4
2
The Cradle Coast Authority’s board has one member representing the region’s tourism industry; this position should be maintained, and also be a member of the Tourism Board to provide ongoing interaction between the two boards.
Total
Sub Region 1
representative of the local industry, the mix of industry skills and stakeholders, such as voting rights.
Transport
6
Sub Region 2
4.3.1. TOURISM BOARD SIZE The case studies presented in sections 3.3 and 3.4 have Tourism Boards of between 9 and 18 members.
The considerations to be balanced in determining the number of
Tourism Board members are to have enough members to provide adequate representation of the region’s tourism stakeholders, and not having too many members, making meeting organisation difficult and reducing decision making efficiency.
Sub Region 3: King Island
17
3
The minimum Tourism Board size recommended in 7 and 13 is the largest that should be
Sub Region 4: West Coast
61
14
considered by the RTO. This will ensure a range of industry and regional sectors can be
Total
292
122
2
2
8
16
35
39 1
59 75
1
173 31
12
1
88
41
6
522
represented without it becoming cumbersome. Source: Cradle Coast Authority
TOURISM BOARD COMPOSITION
Generally, there a four groups that comprise RTO Tourism Board membership:
The issue with the development of a regionally representative Tourism Board is that there are 9 Councils and 19 LTAs in the region: not all of these can be represented without it becoming unwieldy. Table 9 indicates the location and industry sectors of the tourism
•
LTA representatives;
•
Local Government representatives;
•
Representatives from government agencies, such as Parks and Wildlife Services,
purposes: sub-regions are not recommended to only provide organisation of the region
arts and tourism; and,
into geographical clusters, and would have no other purpose.
Industry skill based representatives.
The Cradle Coast Authority’s board includes 2 directors nominated by the participating
•
businesses within the Cradle Coast region, based on the Authority’s database. This table also includes a possible arrangement of Councils into Sub-Regions for discussion
Councils and another nominated by Council General Managers: this may be replicated in CRADLE COAST AUTH ORITY OCTOBER 2011
25
the Tourism Board if Councils are to be represented.
The basis for Council having
Tourism Board representation is on the expectation that they will continue to have a significant role in the region’s tourism, through funding the RTO and Visitor Information
•
1 from Sub Region 3;
•
2 members representing industry sectors not included in the 6 regional representatives.
Centres, supporting development, and through the roles of Tourism Officers. To provide a mix of both regions and sectors, the industry representative members could be comprised of:
The sub-regions would not have any organisation or authority attached to them, but would only be for the purposes of provided a structure to Tourism Board selections. Geelong Otway Tourism identified their Tourism Board as one of the reasons for their
OPTION 1: INDUSTRY SKILLS TOURISM BOARD
success as an RTO, particularly its regional representation and industry skills.
The Tourism Board would be comprised of 7 to 9 members with skills, representing a range of tourism sectors and related functions, plus the Tourism Tasmania representative.
OPTION 3: SECTOR REPRESENTATION
A further option would be to include 2 Council representatives. The advantages of this
11 members in total:
Tourism Board structure is that representatives can be selected that have significance
•
2 council representatives
region, including:
•
1 from Tourism Tasmania, and
•
Marketing;
•
8 industry members:
•
Business development;
•
2 accommodation representatives;
•
Finance;
•
1 attraction and event representative;
•
Hospitality;
•
2 members representing the rest of the industry;
•
Management;
•
1 member from an allied industry, such as marketing or development;
•
Development and industry training; and,
•
2 members selected to ensure broad regional representation
•
Government partnerships and funding submissions.
experience in specific areas of tourism, that can be harnessed to the benefit of the entire
This Tourism Board structure is similar to the Destination Melbourne board, where the balance of industry and skills representatives is seen as a strength.
RECOMMENDATION
The first option, an industry skills Tourism Board, is recommended for the Cradle Coast RTO.
This structure provides the RTO with the opportunity to have a range of
knowledgeable and successful industry figures leading the strategic development of the OPTION 2: REGIONAL REPRESENTATION
region. This option is the one that squarely aligns with the intent of the Regional Tourism
12 members in total:
Initiative.
•
2 council representatives
Given the expanse of the Cradle Coast, providing representation across the region should
•
1 from Tourism Tasmania;
•
2 from Sub Regions 1, 2 and 4; 26
REGIONAL TOURISM ORGANISATIONS D ISCUSSION PAPER
be the secondary consideration when selecting Tourism Board members: for example, if two people from market backgrounds were contending for a position, one from an area not represented on the Tourism Board would be preferable.
It is recommended that an Interim Tourism Board be appointed for the first year, with the
Board members. One of the roles for the Tourism Board in the first year would be to
purpose of establishing the operating and governance of the RTO, including:
establish the ongoing procedure for selecting board members.
•
Tourism Board structure;
•
Ongoing Tourism Board members selection processes;
•
Membership fees and structures; and,
•
Roles and responsibilities.
4.3.3. THE CHAIRPERSON There are two broad options for determining the chair of the industry board, either select a Tourism Board and then identify the chair, or appoint a Tourism Board member specifically to the chair. If the chair is to be appointed specifically to the role, the RTO may call for expressions of
4.3.2. OPTIONS FOR APPOINTING TOURISM BOARD MEMBERS The case studies included in sections 3.3 and 3.4 provide three options for determining the individuals that fill positions on Tourism Boards. The methods employed will be related to the composition of the Tourism Board, as discussed in the previous section. OPTION 1: SECTOR OR REGIONAL NOMINATIONS
The sectors or sub-regions that have been allocated a Tourism Board representative nominate their preferred member: the method for determining who is nominated is left to those to be represented. OPTION 2: EXPRESSIONS OF INTEREST
A call for expressions of interest to fill Tourism Board positions, which may be specifically to represent industry and/or a sub-regions could be distributed through the LTAs and other tourism information services. Guidelines would be developed to ensure that the industry Tourism Board members represented a broad range of the tourism industry. OPTION 3: DIRECTOR ELECTIONS
interest, or if there is an outstanding candidate, approach them directly.
One
consideration is if the chair is to be approached directly, there may be an expectation that it will be a paid position. RECOMMENDATION
Depending on the available resources, and knowledge of suitable people to act as the chair, consideration should be given to approaching somebody directly to be the inaugural chair. The person approached to be the chair should ideally have widespread respect within the tourism industry, have experience in tourism governance, and provide a figurehead for the industry in the Cradle Coast region.
4.4. RELAT I ONSH IP W IT H LTA S There are 19 LTAs operating within the Cradle Coast Region. It is important to for the RTO to promote strong and viable sub-regional representation from the LTAs. To do this, the RTO will need to work with the region’s LTAs to discuss and confirm their respective roles and responsibilities and work with local communities, local governments and the industry to strengthen and help improve their overall performance.
Members of the RTO and/or LTAs may be given the opportunity to elect their board
Any change to the current arrangement for LTAs needs to be inclusive, to ensure the
representatives, typically at RTO Annual General Meetings.
industry members who have committed time and resources to creating successful LTAs are included in the new associations.
RECOMMENDATION
For the first year Interim Tourism Board, expressions of interest would be sought for
4.5. INDU S TRY MEMBE R SH IP
positions. An independent panel of three, appointed by Tourism Tasmania and the Cradle
There are two main aspects to consider with industry membership, the requirement for the
Coast Authority, should consider and make recommendations as to the initial Tourism
RTO to be lead by and responsive to the needs of industry and membership fees as a source of income. Membership models should offer value for industry and create CRADLE COAST AUTH ORITY OCTOBER 2011
27
connections between organisations25. The examples provided in section 3.4.2 indicates
events were embedded in an annual fee, industry satisfaction with these activities would
the range of membership options currently employed by RTOs, and can be broadly
not be as apparent.
summarised as being: OPTION 1: FLAT FEE
A flat fee for membership, with a user pays approach for additional services. OPTION 2: FEE BASED ON INDUSTRY SIZE
A tiered structure, based on business type and size.
The structure of memberships and fees should be an initial consideration of the Interim Tourism Board. 4.5.1. LTA AND RTO FEES In addition to determining the RTO membership fee structure, the relationship between RTO and LTA fees needs further consideration, particularly following the definition of the roles and responsibilities of the organisations and the budget requirements of the RTO becomes apparent.
OPTION 4: FEE BASED ON SERVICE
A tiered structure, based on the level of service and support from the RTO.
The Regional Tourism framework being implemented by Tourism Tasmania is to make tourism more efficient, and the discussion of roles and responsibilities in section 4.6
Based on the assumption that the funding currently provided to the Cradle Coast Authority
indicates that as the responsibilities of RTO and LTAs need to be complimentary, and not
for tourism purposes will continue the first aspect of industry membership, industry
compete for funding and/or responsibilities, the fee structure should be reinforce this to
leadership and responsiveness, should be the primary consideration.
industry.
RECOMMENDATION
The model that is most likely to provide the greatest level of membership is Option 1, with a basic level of service provided for a flat fee, such as the structure of the South Coast Regional Tourism Association, summarised on page 16. This fee should be for the minimum range of services, such as newsletters, voting rights if applicable, and priority access to marketing campaigns and other RTO services. Due to the number of LTAs in the area that members are already paying fees for services to, initially a minimal approach is recommended.
The variation in fees and roles of the LTAs indicates that at least in the short term, the flat fee structure recommended in the previous section is the most readily implementable. The membership fee should be determined when the business model for the new entity is developed. The fee mechanism used by the South Coast Regional Tourism Organisation is worth consideration, as it provides flexibility for potential members. The $50 flat membership fee can be paid directly to the RTO, or members can choose to include the additional $50 fee when paying their LTA fee26.
This membership structure enables the RTO to negotiate directly with prominent tourism
4.6. ROLE S AND RE SP ON SIB IL IT IE S
attractors in the region, to ensure that the icons are highlighted, and draw visitors in to
The Regional Tourism Initiative identifies the role of an RTO as co-ordinating their
investigate other tourism offerings in the region.
region’s marketing, governance and industry development activities. In addition, Tourism
Also, the user pays model for services provides feedback to the RTO through the
Tasmania27 will not support an RTO that:
businesses’ willingness to support activities financially. If disparate activities such as
•
marketing campaigns, website promotion, professional development and networking
should reduce the number of organisations delivering tourism services. This will 26
25
Tourism Tasmania: Regional Tourism Framework. 28
REGIONAL TOURISM ORGANISATIONS D ISCUSSION PAPER
Adds another layer of governance without adding value. Fundamentally the RTO
27
http://corporate.southcoast.net.au/opportunities-for-individual-and-business-members/ Tourism Tasmania: Regional Tourism Framework.
•
include taking on the current role of the Zone Marketing Groups that will not
need to define the LTAs that align with the RTO, and are engaged in the process of
continue to exist outside of the RTO.
strategic tourism planning.
Fragments regional tourism funding. The RTO should aim to aggregate funding to ensure more effective outcomes for all stakeholders, at least by ensuring the
•
4.6.2. MARKETING
relevant stakeholders have agreed on their objectives and coordinated the timing
Marketing is a core role for the RTOs within the Regional Tourism Initiative and for RTOs
and delivery of actions against these, effectively leveraging each funding pool.
in general. As Tourism Tasmania transitions from the Zone Marketing Groups, the RTOs will play an important role in regional promotion through cooperative marketing
Fails to clarify and align roles and responsibilities with stakeholders for the key functions identified in the regional tourism plans. These three requirements of an
campaigns. The RTO will be primarily focused on interstate and intrastate marketing, with Tourism Tasmania being responsible for international marketing.
RTO lead to the need to have clear roles and responsibilities for both the RTO and the region’s LTAs: as noted previously, the diverse and numerous LTAs within the
In addition, the production of regional visitor guides, overarching regional tourism
Cradle Coast region may make this a complex process. The roles for the RTO and
websites and coordinating sub-regional initiatives will be central to the RTOs
LTAs need to be complimentary.
responsibilities.
The businesses that responded to the survey conducted into the state of tourism in the Cradle Coast region identified that the primary responsibilities for an RTO should be 'Business development tools and advice', 'Intrastate marketing' and 'Industry networking 28
and communication' , and LTAs was ‘visitor information services”.
4.6.3. PRODUCT AND INFRASTRUCTURE DEVELOPMENT The State of the Region Report provides indication that there is a need for increased investment in tourism product within the Cradle Coast region, and that a co-ordinated investment and marketing approach should be considered to improve the visitation and
The following sections provide an overview of the roles and responsibilities that are
yield. This provides the basis for recommending a role for the RTO in product and
typically attributed to an RTO.
infrastructure development, and in investment facilitation.
4.6.1. REGIONAL TOURISM PLANNING
As noted in section 3.5, 68% of Victorian RTOs indicated that they have a role in product and infrastructure development for their region.
Under the Regional Tourism Initiative, RTOs must produce a Regional Tourism Plan that reflects the destination management approach, and will be an early priority for the newly
The key components of product and infrastructure development include:
established RTO.
•
Lobbying for public investment in tourism infrastructure;
Destination Management Plans are “organised around defined visitor destination, each
•
Undertaking product audits and gap analysis;
management needs”29.
•
Providing tourism research data and analysis to support and promote investment;
The need to approach the range of distinct destinations within the Cradle Coast region in
•
Prioritising major tourism investment projects across the region.
with its own natural and unique tourism assets, and unique development, marketing and
a destination management approach to a Regional Tourism Plan further supports the 4.6.4. ADVOCACY 28
Cradle Coast Tourism Business Survey results, combination of RTO and Cradle Coast Authority results for “Identify which organisation should have primary responsibility for the following areas of tourism destination management?” 29 A National Framework for Best Practice Destination Management Planning, 2007. Dept. Resources, Energy and Tourism
As the organisation representing a significant portion of the state’s tourism industry and product, the RTO will have a role in advocating on behalf of the region, through its links
CRADLE COAST AUTH ORITY OCTOBER 2011
29
with Tourism Tasmania and also with other Federal and State Government agencies that
as all Councils could continue funding VICs in the region through the RTO, even if it was
may impact on the region.
not located in their municipality. If the number of VICs was reduced in the region, the financial savings could be redirected to other Visitor Information Services requiring more
4.6.5. INDUSTRY DEVELOPMENT The RTO’s role in industry development may include providing awareness and access to
resources, which may include internet presence, smart phone applications or updating marketing collateral.
development opportunities presented by Tourism Tasmania, organising industry tours and
As discussed in section 3.3.2, Mornington Peninsula Tourism regard their operation of the
seminars to promote best practice, industry networking events and facilitating the delivery
VIC as an important factor in their success, as it provides a direct link to visitors to the
of industry training, such as hospitality qualifications.
region, and provides industry with an opportunity to access the organisation.
4.6.6. COMMUNICATION AND NETWORKING
4.6.8. EVENTS BIDDING
The RTOs position as the link between Tourism Tasmania and their region’s LTAs and
The recent survey of Victorian RTOs, included in section 3.5, indicates that although only
tourism stakeholders makes communication an important aspect of the RTOs role.
21% bid for events in their region, a significant proportion of RTOs are considering taking
Regular communication and updates to industry was identified as a key aspect of the
a role in this area. The reason for interest in this area is that a coordinated, regional
success of the RTO case studies in section 3.3.
approach that combines the available resources. In addition, by consolidating the bidding
Communication should include data on the region’s tourism performance from the Tasmanian Visitor Survey and Tourism Research Australia, as well as policy and strategic initiatives that may impact on the region.
for events within the RTO, the possibility of multiple bids within the region in minimised, and bidding expertise can be developed through regular bidding by the area responsible, in comparison to infrequent bidding by disparate organisations.
4.6.7. VISITOR INFORMATION SERVICES As discussed in the Cradle Coast State of the Region Report, there is a need to review
4.7. TRA IT S OF SU C C ES S FU L RT O S
the Visitor Information Services provided in the Cradle Coast region, to ensure that the
Section 3.3 provides insight into what RTOs see as the key factors in their success, and
maximum benefit be obtained from the resources allocated to tourism. This is also an
are should be included as key elements of the new body’s operations. The recurrent
outcome expected by Tourism Tasmania of the Regional Tourism Plan, which is to be
factors leading to success include:
produced by the RTO.
•
Consumption of visitor information has changed significantly in the past 10 years and it is essential that resources and effort are linked to demand and visitor needs. A review of the provision of online visitor information services, walk in VICs, collateral and the need
important channel; •
•
Partnerships with key regional and tourism stakeholders, including all tiers of government; and
30
accredited VIC . If a review of Visitor Information Services finds that there are too many VICs in the region, the RTO is the most likely body to coordinate the streamlined service,
The recognition of the different attributes of the different sub-regions aligned with the RTO;
for smart phone based information should be considered. Currently, each Council in the Cradle Coast, except King Island, funds and operates an
Regular communication with industry, with use of new media as an increasingly
•
Being visible, to ensure industry is aware of the RTO’s role in the promotion and development of tourism within their region.
30
The Circular Head VIC is funded by Council, but operated by the LTA. 30
REGIONAL TOURISM ORGANISATIONS D ISCUSSION PAPER
4.8. SU MM ARY O F REC O MMENDAT I ONS RTO Attribute
Recommendation
1. Organisational Structure and relationship to the CCA
Reasoning
As per the CCA Natural Resource Management model
The NRM’s strategic alignment to a board, and operational alignment to the Cradle Coast Authority provides an existing and functioning template for the RTO.
7-9 Tourism Board Members
1 from Tourism Tasmania, and 8 to represent the skills applicable to the tourism industry.
2. Tourism Board No. No. of Tourism Board Members
Council membership on the Tourism Board is also an option, given their ongoing involvement in tourism. The Tourism Tasmania representative is a requirement of the Regional Tourism Initiative.
Chair
Interim Tourism Board
Approach someone specifically to be the inaugural chair of the RTO board
Ensure that the Interim Tourism Board is chaired by somebody with the skills and experience to establish a successful RTO, provide industry leadership and be a figurehead for the organisation.
Install an Interim Tourism Board to confirm the organisational and governance structures of the RTO over its year of operation.
Enables the formation of a Tourism Board from industry to determine the RTO governance systems and organisational structure over the first year. A committee including CCA and Tourism Tasmania selects Interim Tourism Board members by expression of interest. The Interim Tourism Board will determine the ongoing process.
4. Member Fees
A flat fee, with user pays for additional services.
Encourages increased RTO membership. Enables negotiation of the RTOs relationship with the region’s iconic tourism businesses and products, to ensure their commitment to RTO activities. Provides feedback to the RTO on industry satisfaction and needs.
5. Roles and Responsibilities
Regional Tourism Planning Marketing
These RTO responsibilities should be considered as they will ensure that the RTO meets Tourism Tasmania expectations regarding effective use of resources, and provide leadership and governance for the region’s tourism industry.
Product and Infrastructure Development Advocacy Industry Development Communication and Networking Visitor Information Services Events Bidding
CRADLE COAST AUTH ORITY OCTOBER 2011
31
APPENDIX A CRADLE CO AST LTAS The following list of LTAs has been provided by the Cradle Coast Authority, and is used as the basis for the discussion of LTAs in this document: Burnie Tourism Association Circular Head Tourism Association Kentish Council Economic Development Committee Cradle Mountain Tourism Association King Island Tourism Caves to Canyon Tourism Association Inc Waratah Wynyard Tourism Special Committee Latrobe and Port Sorrell Tourist Association Destination Strahan (not currently functioning) Project Queenstown – Tourism Sub-Committee Wilmot Tourism & Progress Association Sheffield Inc. Railton & District Development Association Wilmot Area Action Group Discover Strahan Tullah Progress Association Rosebery Development Association Inc. West Coast Heritage
32
REGIONAL TOURISM ORGANISATIONS D ISCUSSION PAPER