Authors Todd Denham Paul Fleckney Fiona Dunn Reviewed By Mike Ruzzene Š Copyright, Urban Enterprise Pty Ltd, August 2008. This work is copyright. Apart from any use as permitted under Copyright Act 1963, no part may be reproduced without written permission of Urban Enterprise Pty Ltd.
Document Information Filename
CC SOR DRAFT report 20111209
Version
2.0
Last Saved
20 December 2011 2:07 PM
Last Printed
20 December 2011 2:52 PM
File Size
628 kb
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 EXECUTIVE SUMMARY
I
INTRODUCTION
I
TOURISM MARKET ANALYSIS
I
TOURISM PRODUCT AND EXPERIENCES
I
3.5. CRADLE COAST EXPER IENCES
32
4. REGIONAL MARKETING
35
4.1. OVERVIEW
35
5. TOURISM GOVERNANCE
38
REGIONAL MARKETING
II
5.1. INTRODUCTION
38
TOURISM GOVERNANCE
II
5.2. SUM MARY OF FINDINGS
38
ISSUES AND OPPORTUNITIES
II
5.3. TOURISM RESPONSIBILITIES
40
5.4. TOURISM ORGANISATIONS
40
RECOMMENDED ACTIONS
1. INTRODUCTION
III
1
6. ISSUES AND OPPORTUNITIES
47
1.1. PROJECT OVERVIEW
1
6.1. INTRODUCTION
47
1.2. THE CRADLE COAST R EGION
1
6.2. PRODUCT DEVELOPMENT
47
1.3. METHODOLOGY
2
6.3. SEASONALITY
47
4
6.4. REGIONAL ACCESSIBILITY
48
2.1. CONTEXT
4
6.5. RATIONALISATION OF TOURISM ORGANISATIONS AND SERVICES
2.2. TRENDS IN AUSTRALIAN TO URISM
5
2. TOURISM MARKET ANALYSIS
2.3. TASMANIAN TO URISM TRENDS
6
2.4. CRADLE COAST TOUR ISM TRENDS
10
2.5. TOURING ROUTES
17
2.6. MARKET PERCEPTIONS
18
2.7. TOURISM M ARKET PROJECTIONS AND FORECASTS
20
3. TOURISM PRODUCT AND EXPERIENCES
48 6.6. REGIONAL MARKETING
49
6.7. RECOM MENDED ACTIONS
49
APPENDIX A TOURISM BUSINESS SURVEY RESULTS
22
3.1. INTRODUCTION
22
3.2. SUM MARY
22
3.3. PRODUCT AUDIT
23
3.4. PRODUCT DEVELOPMENT AND INVESTMENT
27
URBAN ENTERPRISE PTY LTD OCTOBER 2011
50
FIGURES
TABLES
FIGURE 1 10 YEAR VISITATION TRENDS
4
TABLE 1 NATIONAL TOURISM TRENDS 2000-2010
5
FIGURE 2 OVERSEAS TRAVEL BY AUSTRALIANS 2005-11
5
TABLE 2 TASMANIAN TOURISM TRENDS 2007-2011
6
FIGURE 3 VISITOR TYPES: AVERAGE 2008-11
6
TABLE 3 TOURIST INFORMATION SOURCES PRE-ARRIVAL
FIGURE 4 TASMANIAN TRAVEL DESTINATIONS 2005-11
7
TABLE 4 VISITOR NIGHTS BY TOWN, 2008-09 TO 2010-11
12
FIGURE 5 VISITOR YIELD 2008-2011
7
TABLE 5 KING ISLAND VISITATION BY ORIGIN STATE 2005-11
13
FIGURE 6 VISITOR ACTIVITIES IN TASMANIA
8
TABLE 6 ROOM OCCUPANCY RATES
16
FIGURE 7 ACCOMMODATION CHOICES – TASMANIA 2010/11
8
TABLE 7 TREND AND POTENTIAL GROWTH 2010-2020
20
9
FIGURE 8 CRADLE COAST BUSINESS ONLINE PRESENCE
9
TABLE 8 KEY PRODUCT STRENGTHS
22
FIGURE 9 CRADLE COAST VISITATION 2001-2011
11
TABLE 9 REGIONAL FOOD OFFER
25
FIGURE 10 NORTH WEST VISITATION 2001-2011
11
TABLE 10 ACCOMMODATION PROVISION
26
FIGURE 11 NORTH WEST VISITATION 2001-2011
11
TABLE 11 TOP 10 ACCOMMODATION LOCATIONS
26
FIGURE 12 VISITORS BY STATE: 2010-11
12
TABLE 12 TOURISM BUSINESS INVESTMENT
29
FIGURE 13 AVERAGE VISITORS MONTH RETURNED FROM TRIP
13
TABLE 13 BARRIERS TO INVESTMENT
30
FIGURE 14 AVERAGE VISITOR STAY – TASMANIAN REGIONS
14
TABLE 14 ACCOMMODATION PROVISION: 2002 AND 2011
31
FIGURE 15 CRADLE COAST VISITOR ACTIVITIES
14
TABLE 15 DESTINATION MANAGEMENT- PRIMARY RESPONSIBILITIES
40
FIGURE 16 REASONS FOR VISITING - OVERNIGHT 2007-11
15
TABLE 16 CRADLE COAST AUTHORITY PERFORMANCE
43
FIGURE 17 ACCOMMODATION USE
15
TABLE 17 CO UNCIL PERFORMANCE
44
FIGURE 18 TOURING ROUTE VISITORS
17
TABLE 18 LOCAL TOURISM ASSOCIATION PERFORMANCE
45
FIGURE 19 TOURING ROUTE VISITOR NIGHTS
17
FIGURE 20 VISITOR MARKET CHANGES 2006-2011
18
FIGURE 21 CRADLE COAST VISITATION PROJECTIONS 2011-2020
20
FIGURE 22 INCOME CHANGE 2010/11 TO 2011/12
21
FIGURE 23 CRADLE COAST PRODUCT PROFILE
24
FIGURE 24 REGIONAL PRODUCT PROFILE
24
FIGURE 25 PRIVATE INVESTMENT IN TOURISM
27
FIGURE 26 KING ISLAND PRODUCT
34
FIGURE 27 MARKETING SPEND
36
FIGURE 28 CRADLE COAST AUTHORITY MARKETING AWARENESS
43
FIGURE 29 COUNCIL MARKETING AWARENESS
44
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
E XECUTIVE S UMMARY INTR ODU C TI ON The purpose of this report is to provide an overview of the state of the tourism industry in the
The North West has a different visitation profile than the West Coast, as its greater resident population and high quality road access and proximity to Launceston provide it with substantial daytrip and visiting friends and relatives market in addition to the holiday makers
Cradle Coast region, which comprises the Councils of Burnie, Central Coast, Circular Head, Devonport, Kentish, King Island, Latrobe, Waratah-Wynyard and West Coast.
BUSINESS PERFORMANCE AND CONFIDENCE
The investigation is based on an overview of the region’s tourism market trends in the context
The Tourism Business Survey indicates that half of the Cradle Coast region’s tourism
of both Australia and Tasmania, review of key tourism documents, an audit of products and
operators expect that their income will increase in 2011/12. Businesses also predict that the
experiences and wide ranging consultation with the region’s tourism stakeholders.
two most significant regional tourism markets, intrastate and interstate, will increase over the
Consultation included: •
local government and industry workshops;
•
Individual meetings with stakeholders; and,
•
A survey of tourism businesses.
next five years. This indicates that although visitation has declined, the industry maintains a positive outlook.
T OU R IS M P R O DU C T A N D EX PE R IE N C ES The tourism product and experience audits identified that the region has a very strong nature
TOU R IS M M ARKE T ANAL Y SI S The Australian tourism industry experienced increased international visitation and expenditure in the year ending June 2011, although there was a significant decline in domestic tourism. The major decline has been in visitor nights by Australians, which was below 2005 levels in the year to June 2011. Data indicates that increasing outbound international travel by Australians is one reason for this: a trend linked to the strong exchange
based offer, with nature based nodes activity nodes at Cradle Mountain, the West Coast and the Tarkine region. The West Coast has a diverse suite of products and experiences that relate to the vast wilderness in the region, with other product strengths relating to the convict and mining history. The low supply of productive agricultural land on the West Coast means there is limited local produce to be offered, although the seafood industry based at Strahan may provide opportunities for tourism related development
rate. The Tasmanian travel data also represents mixed results, with declines in key indicators
The North West also has strong nature based products, which may be added to if the
but with steady growth in expenditure between 2007-08 and 2010-11.
proposal for an improved access and new products and experiences in the Tarkine
The Cradle Coast region has experienced a decline in its tourism market over the past decade, particularly in the West Coast. The tourism trends in Tasmania indicate that the
eventuates. Another key strength of this region is its local produce, which also supports a strong food and dining offer in the region.
visitation is moving towards shorter higher yielding stays, with a reduction in the number of
The largest tourism development currently approved in the Cradle Coast region is the golf
people undertaking extended tours of the state. This change in Tasmanian visitation has
course at Cape Wickham on King Island. This may provide support for further investment into
most notably impacted on the West Coast, which is predominantly an overnight destination
tourism product on the island, initially in accommodation and food provision. Other possible
due to its remote location.
developments in the region include a 5-star hotel in Burnie, a restaurant and accommodation
CRADLE COAST AUTHORITY OCTOBER 2011
i
in Strahan, a new glass bottom boat to operate out of Stanley, 3 star and backpackers
•
accommodation in Smithton and investment into the Devonport Airport. Most of the accommodation provided in the region is in camping venues, with a capacity of
the Zone Marketing Groups was a positive one; and’ •
over 7,500 sites. In addition there are over 4,700 bed spaces in hotels and motels in the region. Devonport and Strahan are the largest accommodation centres; both offer an accommodation capacity of over 1,000 bed spaces excluding camping.
Overall, industry thought that the move to a Regional Tourism Organisation in place of
There is a belief that there are too many Local Tourism Associations and Visitor Information Centres in the region, particularly in the North West.
The Tourism Business Survey provided an indication of what organisations should be responsible for in the development of tourism in the region:
Available data on accommodation provision, and the information provided in the Tourism Business Survey both indicate that the level of investment in tourism over the past decade
TOURISM TASMANIA:
has not been sufficient to drive increased length of visitor stay. As businesses identify visitor
•
demand as the most significant barrier to business growth, and investment is a factor in
and visitor markets and industry research.
stimulating increased visitation, strategic and coordinated product development and marketing may be required to address this situation.
REG ION AL MAR KET I NG
Interstate and international marketing, product development, business development,
CRADLE COAST AUTHORITY:
•
Intrastate marketing, product development, networking, training, business development tools and advice, and events.
The restructure of Tourism Tasmania’s regional operations recommends the North West and the West Coast be affiliated with the one Regional Tourism Organisation, rather than in separate Zone Marketing Groups.
LOCAL GOVERNMENT:
•
Events
The Tourism Business Survey indicates that the highest proportion of their marketing spend is allocated to cooperative campaigns, therefore the structure of regional marketing is an
LOCAL TOURISM ASSOCIATIONS:
important consideration.
•
Visitor Information Services
The other complexities with regional marketing structure are how Cradle Mountain and King Island are aligned. Cradle Mountain sits across the two regions, with most visitors entering in
IS SU E S AND OPPOR TU NIT IE S
the North West, but the product has more in common with the West Coast. Visitors to King
The consultation and research into the Cradle Coast region’s tourism industry has identified
Island are mainly Victorians, and the local operators indicate that they may compete more
these issues and opportunities:
with the North West than complement it.
TOU R IS M GOVE RNA NC E
•
Facilitating investment in tourism product, both new and existing;
•
Identifying strategies to either promote winter visitation or reduce the impact of the low visitation on business viability;
The review of tourism governance in the Cradle Coast region indicates that: •
Most operators indicated that they thought that the Cradle Coast Authority had
•
improvement was their direct relationships with industry;
Reducing the impact of the remoteness, real or perceived, on tourism in the region, and particularly the West Coast;
performed well in supporting the region’s tourism industry. The main area identified for •
Reviewing and rationalising the organisations and resources allocated to tourism to ensure the most value and benefit can be obtained;
ii
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
•
Determining how to best market the region; as a whole or as the North West and the West Coast, and also consider how Cradle Mountain and King Island align within these regions.
REC OMMENDED AC TI ONS In order to address the issues and opportunities identified in this report, the following actions are recommended: •
Agreement on a Governance roles and responsibilities. This will ensure that there is no overlap in responsibilities by Governance organisations and that there are clear roles for the RTO, LTAs Local Government and Tourism Tasmania.
•
Tourism Product Development and Opportunities Plan: Plan A study which takes the product audit of this report and identifies investment opportunities across the region targeted to gaps in provision and demand and preferences of future visitor markets.
This will
ensure that product and experiences in the region have currency for future markets. •
Marketing, Communications and Product Awareness Plan. There is need for a plan for Cradle Coast region which clearly identifies key market segments for future focus, media which should be used to target markets and product and destinations which should be the focus of external marketing. This plan should also support and promote the recommendations of the Tourism Product Development and Opportunities Plan.
•
Review of visitor information services: 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 for smart phone based information should be considered.
CRADLE COAST AUTHORITY OCTOBER 2011
iii
1. I NTRODUCTION 1.1. PROJ EC T OVERV IEW
1.2. TH E C RADLE C OA ST REG I ON
This report examines the state of tourism in the Cradle Coast region, which encompasses
The Cradle Coast region includes two of Tourism Tasmania’s marketing zones, the North
nine municipalities: Burnie, Central Coast, Circular Head, Devonport, Kentish, King
West and the West Coast. The West Coast is analogous to the West Coast Council, and
Island, Latrobe, Waratah-Wynyard and West Coast.
the North West is the 8 other Councils of the Cradle Coast Authority.
The report is an investigation into the state of tourism in the Cradle Coast region, and
This report includes comparison and analysis of the two areas, and also of Cradle
responds to the following circumstances:
Mountain as a separate entity, as it spans both regions. Although Cradle Mountain is
•
Recent negative growth experienced within the Cradle Coast region due to a number of external factors including, changes in travel patterns as a result of the high Australian dollar, the emergence of discount airlines and general economic uncertainty impacting decisions to spend disposable income; and
•
The new state-wide approach to tourism as outlined in Tourism Tasmania’s 2010 Review of Regional Tourism, which is encouraging a stronger regional focus and the establishment of effective Regional Tourism Organisations (RTO’s). The Cradle Coast region is keen to gain an insight into the current state of tourism in order to inform and support this direction.
Specifically, this report includes: •
A review of the current state of tourism in the region;
•
Analysis of the regional visitor profile, current regional performance, visitation growth forecasts and examining emerging markets;
•
Insights into the confidence of the region’s tourism operator’s perspectives;
•
A regional experience and product audit;
•
An examination into the structure of the regional industry; and
•
Indentifying future project opportunities.
generally included in the West Coast marketing material, as it aligns with the wilderness attributes of that region, it is also connected to the North West. One of the entry points to the Mountain for travellers from Devonport or Launceston is via Sheffield in the Kentish municipality, and also through the Mole Creek area: both of these access points are in the North West. One significant difference between the North West and the West Coast is the resident population: the 2006 census found just over 5,000 living in the West Coast compared to over 90,000 in the North West. This difference has impacts on tourism in the two regions, as the North West has a greater Visiting Friends and Relatives market, and also greater local population to draw on to support businesses such as food and attractions. As this report considers whether the North West and the West Coast should continue to be marketed independently, it is also an opportunity to consider how Cradle Mountain, an iconic tourism destination, aligns with these regions. When considering the products and experiences on offer in the Cradle Coast region, Cradle Mountain is analysed separately to the regions.
The data available from Tourism Tasmania and Tourism Research
Australia includes Cradle Mountain in the North West.
CRADLE COAST AUTHORITY OCTOBER 2011
1
1.3. METH ODO LO GY
•
Motivations Research: Appeal Triggers And Motivations For Tourism In Tasmania (Tourism Tasmania, 2011)
1.3.1. CONSULTATION
•
Business Case For Seed Funding Support (Food Connections Tasmania, 2011)
A series of consultation processes and workshops have been undertaken to inform the
•
Mountain Bike Tourism Market Profile For Tasmania (Inspiring Place, 2008)
•
Cradle Coast Regional Tourism Development Plan 2012/2018: Rationale
•
Tarkine Tourism Development Strategy (CCA, 2008)
•
Tarkine Aboriginal Tourism Plan (CCA, 2009)
•
From Source To Sensation: Tasmania’s Cradle Coast Food And Beverage
development of this State of the Region Report, including: •
•
Industry and local government workshops conducted with: •
9 representatives at Queenstown
•
13 representatives at Burnie
•
14 representatives at Strahan
•
10 representatives at Wynyard, and
•
13 representatives at Devonport
•
Living In A Wild World: Cradle Coast Mining Heritage Experience Strategy 2006-2009 (Housego)
Individual meetings and phone interviews with a range of stakeholders, including
•
Circular Head Tourism Association Annual Report 2010-11
private enterprise, Local Tourism Associations and Visitor Information Centre staff;
•
Assessment of Potential Experience Projects for the Stanley Tourism Precinct
Tourism Tasmania and, •
Strategy 2005-08 (Redinca)
A tourism business survey, completed by 118 businesses.
(Inspiring Place, 2006) •
identify the key themes for tourism in the Cradle Coast region, including opportunities for growth and obstacles for further development of the tourism industry. 1.3.2. STRATEGIC DOCUMENT REVIEW
•
Waratah-Wynyard Draft Tourism Plan 2011-2020
•
Somerset – Options Paper
•
Host Community Perceptions Of The Social Impacts Of Tourism In Tasmanian
A review of tourism strategies for the region has been undertaken to support the development of this report, including: •
Local Food And Wine Experience: Assessment Of A Potential Experience Project For The Stanley Tourism Precinct (Inspiring Place, 2006)
The information collected across these three forms of consultation was summarised to
Communities: Kentish Community (Victoria University) •
Mount Roland: Developing a Destination (Kentish Shire, 2010)
Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan 2011-2013
•
Regional Tourism Review: The Way Forward (KPMG, 2010)
1.3.3. OVERVIEW OF DATA SOURCES
•
Regional Initiative Framework (Tourism Tasmania, 2011)
There are three surveys that provide data on tourism in the Cradle Coast region and Tasmania that has been analysed throughout this report: the Tasmanian Visitor Survey carried out by Tourism Tasmania, and two surveys undertaken by Tourism Research
2
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
Australia, the National and International Visitor Surveys. Each of these surveys covers different aspects of tourism, as noted below.
NATIONAL VISITOR SURVEY (NVS)
Tourism Research Australia is responsible for conducting the National Visitor Survey.
The data used in this report is up to the year ending June 2011: this was the most recently
120,000 Australian residents are interviewed annually about their travel for the NVS,
published tourism data by both Tourism Research Australia and Tourism Tasmania when
capturing interstate and intrastate visitation.
the analysis of tourism trends was undertaken.
visitor destinations, origins, activities, nights spent, travel methods, activities and
The information NVS provides includes
expenditure. Respondents can identify Dorset as a destination in the survey. TASMANIAN VISITOR SURVEY (TVS)
The TVS survey captures visitors entering Tasmania via scheduled air and sea services,
INTERNATIONAL VISITOR SURVEY (IVS)
and therefore excludes intrastate visitors, and charter flights. The TVS provides greater
Tourism Research Australia also conducts the International Visitor Survey. The IVS is
detail on the visitors to Tasmania than the other surveys, including niche markets, and
conducted in the departure lounges of 8 international airports in
key tourism attractors in the state. There is some indication that there are regular charter flights to the golf courses in Bridport, which would not be captured in the TVS even though they are interstate and/or international visitors.
Australia: Sydney, Melbourne, Brisbane, Cairns, Perth, Adelaide, Darwin and the Gold Cost. 40,000 departing tourists are interviewed about their time in Australia. Respondents can identify the North West and the West Coast as places visited in the survey.
CRADLE COAST AUTHORITY OCTOBER 2011
3
2.
T OURISM M ARKET A NALYSIS
2.1. C ONTEX T
FIGURE 1 10 YEAR VISITATION TRENDS
A brief overview of trends in the national and state tourism markets provides context for recent trends in the Cradle Coast region’s tourism. The three charts in Figure 1 use the Year ending June 2001 to act as a base to index visitation to Australia, Tasmania and the Cradle Coast region over the past decade. In all three markets, changes in visitation to Tasmania are reflected in changes in visitation to the Cradle Coast region. Although the changes in international visitation to Tasmania are reflected in the Cradle Coast region’s tourism data since 2006, the region did not benefit from the large increase
Australia
Year Ending
in visitors to the state between the years ending June 2003 and June 2006. Of note is that
Overnight visitors to both Cradle Coast region and Tasmania outperformed the rest of the
Cradle Coast
June 2001
June 2002
June 2003
June 2004
June 2005
June 2006
June 2007
June 2008
June 2009
June 2010
June 2011
June 2001
June 2002
June 2003
June 2004
June 2005
June 2006
June 2007
June 2008
June 2009
June 2010
June 2011
June 2003
June 2004
June 2005
1.40
both the Cradle Coast region and Tasmania received an increase in visitation in the last year much greater than the slight increase in international visitation to Australia.
Tasmania
1.60 1.40 1.20 International 1.00 Visitors 0.80 0.60 0.40 0.20 0.00
1.20
Overnight
1.00
Visitors
0.80
country for most of the last decade, except for a decline in the overnight stays in the
0.60
region in the years ending June 2010 and 2011. There were notable peaks in people
0.40 0.20
staying overnight in region during the years ending June 2003 and 2007.
0.00
Overall daytrips in Australia are essentially the same for the year ending June 2011 as they were in the year ending June 2001: the Australian population has increased by 20% in this past decade indicating that the daytrip market overall has lost market share. The
1.20
Cradle Coast region and Tasmanian statistics for daytrips closely correlate, and declined
1.00
noticeably in the year ending June 2011. Day Trips
0.80 0.60 0.40 0.20 0.00 June 2001
June 2002
June 2006
Source: TRA: NVS and IVS, Year Ending June 2001 to June 2011
4
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
June 2007
June 2008
June 2009
June 2010
June 2011
2.2. TRENDS IN AU STR A LI AN T OU R IS M
TABLE 1 NATIONAL TOURISM TRENDS 2000-2010
In 2008–09, tourism accounted for 2.6% of Australia’s Gross Domestic Product and directly employed almost half a million people or 4.5% of the labour force. Tourism is
Indicator
2005
2008
2009
2010
%Growth 2005 -2010
Australia’s largest services export industry, generating around $24 billion in exports. The
International visitor arrivals (million)
5.05
5.16
5.17
5.44
7.72%
International visitor expenditure ($’s billion)
21.6
26.9
26.2
26.3
21.76%
Domestic Domestic visitor nights (million)
275
271
257
259
-5.82%
Domestic visitor expenditure ($’s billion)
42.9
47.2
47.8
46.2
7.69%
Day Trip expenditure ($’s billion)
16.1
19.1
18.6
18.3
13.66%
Total tourism expenditure ($’s billion)
80.6
93.2
92.6
90.8
12.66%
industry has a significant impact in regional Australia, with 46% of expenditure occurring in these areas1. As shown in Table 1, total expenditure on tourism in Australia increased by almost 13% between 2005 and 2010: the RBA provides an inflation estimate of 16% for this time period, indicating a decline in expenditure in real terms2. Positively, there has been as increase in international expenditure in the last year, of 5%. Of concern is the decline in domestic tourism expenditure between 2008 and 2010, particularly overnight expenditure. Total domestic visitor nights are less than in 2005, even though the total population has grown by 14% since the 2006 census3.
Source: IVS, NVS
One of the reasons put forward for the decline in overnight and daytrips taken by Figure 2 highlights the
increase in overseas travel by Australians, which has increased by over 50% since 2005. More notable is the increase in overseas holidays by Tasmanians: it has more than doubled since 2005, and increased by more than 25% in the last two years. For most
FIGURE 2 OVERSEAS TRAVEL BY AUSTRALIANS 2005-11 7.0m
100,000 90,000
6.0m
80,000
people the Cradle Coast region is not a day trip destination, and the decline in overnight Tasmanians, choosing to holiday overseas. Roy Morgan Research tracks the holiday intentions of Australians for the following 2
Tasmania (RHS)
Australia (LHS)
50,000
3.0m
40,000
years, and the results support the finding that there is an increased preference for overseas holidays by Australians. Between 2001 and 2011 the number of Australians who would like to holiday in Australia over next two years has fallen from 83% to 77% whereas those who want to travel overseas has risen from 43% to 47% over the same period.
70,000 60,000
4.0m
Australia
visitors depicted in Figure 1 may be due to the increased number of Australians, and
5.0m
30,000
2.0m
20,000 1.0m
10,000
0.0m
2005
2006
2007
2008
2009
2010
2011
Year Ending March
Source: National Visitor Survey 1
Tourism Research Australia: National Tourism Indicators 2010-11 Snapshot http://www.rba.gov.au/calculator/ 3 ABS - 2006 Census QuickStats : Australia, Population Clock (2011) 2
CRADLE COAST AUTHORITY OCTOBER 2011
5
Tasmania
Australians is the increased number of overseas holidays.
2.3. TA SMAN I AN T OU R I SM TREND S TABLE 2 TASMANIAN TOURISM TRENDS 2007-2011
2.3.1. OVERVIEW Tasmanian visitor statistics for the year ending June 2011 indicates an overall visitation decrease of 2%, and a 5% decrease in visitor nights in the State over the year ending
Indicator
20072007-2008
20082008-2009
20092009-2010
20102010-2011
Average growth 20082008-2011
June 2010. Positively, there was an 11% increase of international visitation to Tasmania,
International visitor arrivals
155,900
149,500
134,500
149,900
-1.3%
International visitor expenditure ($’s million)
258
268
263
257
-0.1%
Interstate visitor arrivals
744,300
773,900
786,800
774,600
1.3%
1.23
1.22
1.28
1.32
2.4%
5.29
5.28
5.55
5.11
-1.1%
691
698
724
711
0.9%
6.19
6.20
6.47
6.03
-0.9%
2.18
2.19
2.27
2.29
1.6%
and a 3% increase in tourism expenditure. This decline in visitor numbers and increased expenditure provides an increased yield per visitor, with an average spend per night in the 4
state increasing by 9%, and the average spend per visitor increasing by 5% . As indicated by Table 2 total visitation to Tasmania was lower in 2010-11 than in any year since 2007-08, mainly due to the number of day trips taken in the state. The decline in
Interstate visitor expenditure ($’s million)
the number of day trips taken in Tasmania between the year ending June 2010 and June 2011 was over 400,000, just under 10%. On the positive side, interstate arrivals have
Intrastate day and overnight visitors (million)
increased by 1.3% a year over this period. There has also been a large increase in visitors to Tasmania from China and Hong Kong since 2008-09, and as of 2010-11 this was the second largest visitor market behind the UK5. The growth in the Chinese market is recognised as a key opportunity for growth in Tasmanian tourism6.
Intrastate expenditure ($’s million) million) Total visitation
As shown in Figure 3, Tasmania receives a lower proportion of the visiting friends and
Total tourism expenditure
relatives market than Australia overall: this may be attributed to there being less people to
($’s million)
visit in Tasmania than other states. If visiting friends and relatives is removed from the
Source: Tasmanian Tourism Snapshot – June 2011, June 2010, June 2009 (Tourism Tasmania)
data set, the analysis indicates that Tasmania’s proportions of holiday and business visitors are equivalent to those for the rest of the country.
FIGURE 3 VISITOR TYPES: AVERAGE 2008-11 Holiday or leisure
Tasmania
Australia
6%
6% 18% 44%
Visiting friends and relatives
21% 45%
Business
32%
28%
4
Tourism Tasmania, Tasmanian Tourism Snapshot: Year ending June 2011 Tasmanian Tourism Snapshot – June 2011, June 2010 (Tourism Tasmania), International Visitor Survey (TRA, 2011) 6 Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan, 011-2013. 5
6
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
Source: National Visitor Survey, International Visitor Survey, Tasmanian Visitor Survey.
Other
2.3.2. DEPARTURES
2.3.3. VISITOR YIELD
Since 2005 Tasmanians have increased their travel out of the state, to both interstate and
The average expenditure of visitors to Tasmania has increase by almost 8% since the
international destinations, and have decreased their overnight travel within the State, as
year ending June 2008, as depicted in Figure 5. This is an important result, as even
shown in Figure 4. Tasmanians have more than doubled their international departures
though the number of visitors has decreased over this time period, total expenditure on
since 2006, as discussed in section 2.2.
tourism in the state has increased, as shown in Table 2.
After increasing between 2005 and 2007,
interstate departures have remained relatively stable at approximately 650,000 per year.
Expenditure by holidaying visitors increased by 12.6% over the four year period included in Figure 5, rising from an average of $2,157 to $2,429. This is the highest yield for visitor
FIGURE 4 TASMANIAN TRAVEL DESTINATIONS 2005-11
types to Tasmania.
1,400,000
The lowest yielding sector was the visiting friends and relatives
market, which is to be expected.
1,200,000
FIGURE 5 VISITOR YIELD 2008-2011
Tasmania 1,000,000
$2,000 800,000
Interstate
$1,800
600,000
$1,600 $1,400
400,000
$1,200
200,000
International $1,000
2005
2006
2007
2008
2009
2010
2011
$800 $600
Source: NVS
Overnight visitation within the state has decreased by almost 15% since the 2008 peak of 1.15 million. As discussed later in 2.4.3, approximately 40% of overnight visitors to the Cradle Coast region are Tasmanians, which indicates the impact of this decline on the
$400 $200 $0 Year Ending June
2008
2009
2010
2011
region. Source: Tasmanian Visitor Survey
The Tourism 21 strategy identifies the high Australian dollar and the relative cost of air fares to Tasmania as two factors in these tourism trends7.
7
Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan, 011-2013.
CRADLE COAST AUTHORITY OCTOBER 2011
7
2.3.4. VISITOR ACTIVITIES The most frequently activities undertaken by visitors to Tasmania include Visit historic sites and attractions, browse at markets, visit national parks and visit craft shops, as shown in Figure 6.
2.3.5. ACCOMMODATION PREFERENCES Figure 7 shows the accommodation chosen by visitors to. Tasmania between July 2010 and June 2011. Luxury hotels are the most popular type of accommodation used by visitors followed closely by friend’s and relative’s homes. Camping and caravanning is also popular;
FIGURE 6 VISITOR ACTIVITIES IN TASMANIA Data from the Tasmanian Hospitality Association indicates that hotel occupancy rates Number of Visitors
450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
decreased from 71.8% in 2008/09 to 69.6% in 2010/11. Membership requires at least 5 rooms, therefore excluding the significant number of bed and breakfasts operating in the State. FIGURE 7 ACCOMMODATION CHOICES – TASMANIA 2010/11 300000 250000 200000 150000 100000 50000
Source: Tasmanian Visitor Survey 0
Activities that are experiencing growth include galleries, museums, wineries, short bushwalks and golf. This highlights a change in experience preferences for visitors to Tasmania, and is also likely to reflect growth in new types of tourism product aimed at higher yielding cultural experience seeker markets. Roy Morgan Research provides insight into the special interest markets that are most likely to consider a Tasmanian holiday. Arts tourism (28%), Spa and wellness (25%), heritage (23%), adventure (22%), fishing/hunting (22%) and Farm Stay (22%) and ecotourism (21%) were the special interest areas that had a response higher than the rate that holiday makers overall indicated an interest in visiting Tasmania (19%)8.
8
Roy Morgan Research 2011,
8
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
Source; Tasmanian Visitor Survey
2.3.6. TOURISM INFORMATION AND BOOKING SOURCES
TABLE 3 TOURIST INFORMATION SOURCES PRE-ARRIVAL
As part of the Tasmanian Visitor Survey, respondents are asked where they source their
July 2010 June 2011
%Increase 2007--08 to 2007 20102010-11
%Visitors
Websites with Tasmanian travel travel information
367,400
6%
41%
tourism information prior to arrival in the state, with the most recent results included in Table 3. The need to increase the number of operators providing online booking services was identified as an issue in the Tourism 21 strategy9. This data provides two important insights into the most effective methods of providing potential visitors with information: •
Web-sites and word-of-mouth are two of the most important sources of information.
•
Traditional methods of providing tourist information about Tasmania are declining in importance, particularly printed information such as travel and guide books, brochures, magazines and newspapers.
Although not as dominant in terms of total figures, the percentage of bookings made via
Airline
345,300
15%
39%
Word of mouth
305,300
7%
34%
No other information used prior
258,400
10%
29%
Travel/guide books
176,400
-23%
20%
Online only travel provider
171,700
18%
19%
Brochures
159,600
-26%
18%
Travel Agent Agent
159,100
-14%
18%
Source: Tasmanian Visitor Survey
the internet for Tasmanian holidays also increased by 25% between 2007-08 and 201011, and can be expected to increase as more providers establish online booking
FIGURE 8 CRADLE COAST BUSINESS ONLINE PRESENCE
processes10. Also of note is the decline in the use of Travel Agents from 2007-08 to 201011. The main methods of online marketing employed by businesses in the region are websites, online booking systems and Facebook, as shown in Figure 8.59% of businesses had their own website or were represented in other websites in 2010/11. About a third of businesses also indicated that the used online booking system; in the
59%
Website Online booking system
35%
33%
year to June 2011 total bookings made through online methods, such as Wotif and Stayz, increased by over 10%, and was used by 17% of all visitors to the state11.
Blogging
4%
6%
YouTube
7%
Source: Cradle Coast Tourism Business Survey, 2011. 9
Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan, 011-2013. 10 The data includes transport, accommodation or activities, attractions booked prior to entering the state. 11 TVS: Table 8, Bookings Methods Before Entering Tasmania.
CRADLE COAST AUTHORITY OCTOBER 2011
9
2.4. C RADLE C O A ST TO U RI SM T RENDS 2.4.1. SUMMARY There has been a decline in the Cradle Coast region’s tourism industry, with total
Other findings of the market analysis include: •
particularly in the West Coast;
visitation 18% less in the year ending June 2011 than in the year ending June 2001. The decline has been greater in the West Coast than in the North West: one reason for
•
•
Overnight market, while the North West has a substantial amount of day trips. The market analysis data also provides some insight into visitation to King Island that indicates its ongoing relationship with the rest of the North West should be considered.
Average length of stay for visitors to the Cradle Coast region has remained relatively stable. North West visitors stay longer than West Coast visitors
this is that the West Coast does not have significant daytrip and Visiting Friends and Relatives markets to sustain visitation. The West Coast is predominantly a Domestic
Tourism to the Cradle Coast region is more seasonal than Tasmania as a whole,
Visitor activities are relatively similar in both regions, with natural attractions and history and heritage prominent.
•
The main accommodation use difference between the North West and the West Coast is the higher use of Friends and Relatives Property in the North West.
The visitation data also highlights that there is significant difference between visitation to
Overall, most visitors use hotels and motels.
the Cradle Coast region during summer and winter: a factor identified as restricting business growth and sustainability during the consultation process.
•
Holiday makers on the Cradle Coast region’s touring routes have declined since 2007/08: there has also been a decrease in vehicle hire over this period.
The most important market for both the North West and the West Coast is Tasmanian visitors, providing over 40% of overnight visitation plus daytrips to both regions. New
•
More respondents to the Tourism Business Survey indicated that international and
South Wales and Victoria also provide substantial numbers of visitors to both regions.
interstate markets had increased over the past five years. Approximately 40% of
Overseas visitation provides about 10% of overnight visitors to the North West, and
businesses indicated that intrastate visitors had increased, and another 40% that
between 10% and 15% for the West Coast: for all of Tasmania internationals account for
they had decreased, indicating mixed performance in this market.
about 6% of overnight visitors. According to the Tasmanian Visitor Survey, total visitor nights by non-Tasmanians in the Cradle Coast region has declined significantly; by 9.3% in the West Coast and 8.5% in the North West. The only two towns to have more visitor nights in the year to June 2011 than in the year to June 2008 were Sheffield and Zeehan. The National Visitor Survey data for domestic overnight trips indicates that visitors to the island are predominantly from Victoria, although the high degree of variation in the data indicates that it is indicative of visitation to the island at best.
10
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
FIGURE 10 NORTH WEST VISITATION 2001-2011
2.4.2. VISITATION Visitation to the Cradle Coast region in all three tourism market sectors captured by the Tourism Research Australia surveys declined between the year ending June 2001 and the year ending June 2011, as shown in Figure 9.
1,600,000 Total 1,200,000 Daytrips
The changes in visitation between the years ending June 2001 and 2011 are:
800,000
•
A total reduction in visitation by 18%;
400,000
•
A reduction in overnight visitors by 9%;
•
A 23% reduction in day trips; and,
•
A 19% reduction in international visitation.
Domestic Overnight
International 0 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: IVS, NVS
Visitation fell in 2008, which may be due to the Global F Financial Crisis. After recovering in 2009, total visitation fell significantly in the 2010 2010-11 year.
The West Coast visitation peaked noticeably in 2003 and 2007; the North West also peaked in visitation in these years, but not as distinctly. FIGURE 11 NORTH WEST VISITATION 2001-2011
FIGURE 9 CRADLE COAST VISITATION 2001-2011
400,000
West Coast
1,800,000 1,600,000
300,000
1,400,000
Total Total
1,200,000 1,000,000
Daytrips
200,000 Domestic Overnight
800,000 600,000
Domestic Overnight
100,000 Daytrips
400,000 200,000
International
International
0
0 2001 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2011
Source: IVS, NVS
Source: IVS, NVS
A significant difference between the North West and the West Coast is the
2.4.3. VISITOR MARKETS
number of Day Trips to each region.
Tasmanians account for over 40% of overnight visitors to both the West Coast and North
The remoteness and the small loc local
population of the West Coast indicate that it is unlikely to be a significant day trip
West, with NSW and Victoria providing an additional 20% of visitation vi in each area.
destination.
CRADLE COAST AUTHORITY OCTOBER 2011
11
The market profiles for North West and West Coast from an international visitor
North West that passed through without stopping over the three years, which may indicate
perspective are markedly different. Visitation to North West is relatively dispersed across
a reduction in yield over this period. Those passing thorough the West Coast without
Europe (43.9%), Asia (25.1%) and the rest of the world (31.0%). In contrast, international
stopping reduced marginally over this period.
visitation to the West Coast region is heavily concentrated from Europe (63.6%), with significantly lower market shares from Asia (15.6%) and the rest of the world (20.5%)12. Neither region appears to be capturing the full benefit of the emerging Chinese market: China is now the second biggest international market for Tasmania as a whole equating to 12.2% of all international visitors. In contrast, the Chinese market share in the North West and West Coast regions are relatively low at 9.2% and 8.1% respectively12 FIGURE 12 VISITORS BY STATE: 2010-11 50.0% North West
West Coast
40.0% 30.0% 20.0% 10.0% 0.0% NSW
VIC
TAS
Other
Source: NVS, year ending June 2011.
2.4.4. VISITORS BY DESTINATION Only two destinations included in the Tasmanian Visitor Survey13 have experienced an increase in nights spent by visitors since 2008-09, Zeehan and Sheffield. Overall, visitation to both the West Coast and the North West has decreased over the past three years. Also of concern is that there was a more than 13% increase in visitors to the
12
IVS, 2011 Note that TVS only includes visitors arriving in Tasmania via scheduled air and sea voyages – it excludes intrastate holidays, plus visitors entering the state via chartered flights or other private means. King Island visitation is not captured in the TVS.
13
12
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
TABLE 4 VISITOR NIGHTS BY TOWN, 2008-09 TO 2010-11 Town/ Region
20082008-2009
20092009-2010
20102010-2011
% Change 2008200809 to 20102010-11 23.8%
Zeehan
20,600
22,100
25,500
Strahan
231,100
230,500
223,700
-3.2%
Queenstown
77,100
62,600
44,200
-42.7%
Tullah
9,200
7,000
6,200
-32.6% -20.0%
Rosebery
10,000
16,200
8,000
WEST COAST
386,400
378,100
350,300
-9.3%
Cradle Mountain
228,400
205,600
208,400
-8.8%
Latrobe
38,500
33,700
32,700
-15.1%
Sheffield
33,700
40,200
36,000
6.8%
Devonport
280,300
258,000
259,300
-7.5%
Ulverstone
101,700
64,500
73,900
-27.3%
Burnie
113,500
150,500
106,700
-6.0%
Wynyard
78,200
76,300
69,500
-11.1%
Stanley
74,900
75,400
60,300
-19.5%
Smithton
31,100
21,500
34,900
12.2%
Arthur River
11,600
8,800
10,900
-6.0%
NORTH WEST
1,099,800
1,035,600
1,006,400
-8.5%
TOTAL
1,486,200
1,413,700 1,413,700
1,356,700
--8.7%
Source: TVS (2011)
2.4.5. KING ISLAND
2.4.6. SEASONALITY
Unlike the rest of the destinations in the region, the majority of domestic overnight visitors
The high degree of seasonality in Tasmanian tourism was noted as an issue facing the
to King Island are from Victoria rather than Tasmania, as shown in Table 5: although
industry in Tourism 2116. It was also the most frequently identified restraint to tourism
given the small sample size this data is indicative at best. The day trip and international
growth in the Cradle Coast Tourism Business Survey, with 20% of responses, and was
visitation are both too small to be reliable14.
identified by approximately half of the respondents to a TICT survey as an issue for the industry17. The summary of visitor trends across years from 1998 to 2011 highlights the
TABLE 5 KING ISLAND VISITATION BY ORIGIN STATE 2005-11
tourism market seasonality in the region, particularly in comparison to Tasmania, and more notably to tourism in Australia. Of note, only 3% of overnight visitors to the West
Year Ending June
NSW
2005 2006
Vic
Qld
SA
WA
9,000 2,000
4,000
2007
9,000
2008
3,000
4,000
1,000
1,000
1,000
2009
Tas
NT
Total
Coast returned from their trip in August over this period.
3,000
12,000
3,000
14,000
2,000
11,000
5,000
7,000
3,000
3,000
14%
7,000
12%
15,000
10%
2010
3,000
2,000
2,000
2011
2,000
8,000
Total
6,000
34,000
4000
4,000
1,000
19,000
%Total Visitors
9%
49%
6%
6%
1%
28%
3,000
ACT
1,000
3,000 1,000 0%
69,000
1%
FIGURE 13 AVERAGE VISITORS MONTH RETURNED FROM TRIP Tasmania
North West
West Coast
Australia
16%
8% 6% 4%
Source: NVS, Domestic Overnight Trips 2%
King Island has direct services from Melbourne, and indicates that consideration should
0%
be given to the Island as a distinct tourism destination rather than part of the North West or Cradle Coast regions. There are also direct flights to King Island from Wynyard and Devonport15.In discussions with representatives of the King Island tourism industry they indicated a belief that they competed with the North West for visitors rather than offered a complementary product.
14
TRA: International Visitor Survey 15 http://www.discovertasmania.com/__data/assets/pdf_file/0005/15845/Whole_Island_Map_TR.pdf
Source: National Visitor Survey: Overnight Visitors 1998-2011]
16 Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan, 011-2013. 17 TICT Industry Sentiment Survey Results. Winter Qtr: Jun-Aug 2011
CRADLE COAST AUTHORITY OCTOBER 2011
13
2.4.7. LENGTH OF STAY
2.4.8. VISITOR ACTIVITIES
Figure 14 shows the change in the average visitor length of stay in each of Tasmania’s
Figure 15 depicts the top 10 activities undertaken by visitors to the North West and West
seven tourism regions. The data indicates that:
Coast.
•
The West Coast region has consistently experienced the lowest average length of
Nature based and history and heritage activities feature strongly in both regions though
stay at around 2.2 nights per trip. Conversely, the North West region has one of the
are more dominant in West Coast18.
highest average length of stay at about 3.7 nights; •
Both West Coast and North West regions showed little change over the period. In
FIGURE 15 CRADLE COAST VISITOR ACTIVITIES
contrast, Hobart and surrounds experienced a 13% jump in average length of stay
North West
West Coast
100%
and the Southern region saw a 52% increase.
90% 80%
FIGURE 14 AVERAGE VISITOR STAY – TASMANIAN REGIONS
70% 6.0
60% 50%
5.0
Visitor Nights
40% 4.0
30% 20%
3.0
10% 2.0
0%
1.0 0.0 2009
2010
2011
West Coast
North West
Hobart and surrounds
Southern
East Coast
Northern
Launceston and Tamar Valley
Source: NVS, IVS: July 2010 to June 2011
The Perceptions of Tasmania’s North West Survey of 2011 found that wilderness, local food and wine, the coast and historic sites were the most frequent attributes that survey
Source: TVS, 2011
respondents associated with the region.
18
The Restaurants/Cafes and Shopping categories are a standard tourist activity, that would be undertaken by most tourists regardless of location, and so are not referred to in the analysis.
14
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
2.4.9. REASONS FOR VISITING
2.4.10. ACCOMMODATION
The predominant reason for visiting either the North West or the West Coast between
For both the West Coast and the North West hotels, resorts, motels and motor inns were
2007 and 2011 was for holidays, which accounted for 71% in the North West and 86% in
the dominant form of accommodation used by visitors. The major differences in
the West Coast.
accommodation use were:
FIGURE 16 REASONS FOR VISITING - OVERNIGHT 2007-11 July 2007 June 2008
July 2008 June 2009
July 2009 June 2010
July 2010 June 2011
Average 20072007-11
•
Approximately double the percentage of visitors to the North West stayed in a friend’s or relative’s property;
•
A higher proportion of visitors to the North West stayed in guesthouses and B&Bs; very few West Coast visitors used this type of accommodation;
Northwest Holiday
200,800
213,100
196,900
186,000
199,200
Vis. Friends & Relatives
41,300
47,000
48,000
46,100
45,600
Business & Employment
22,500
20,300
26,100
26,500
23,850
Conferences & Seminars
3,100
3,500
4,500
2,600
3,425
Total Overnight
274,100
292,400
284,200
272,600
280,825
Total Visited
406,200
417,600
414,800
411,500
412,525
West Coast
•
Caravans and camping, and staying in their own property were significantly higher for visitors to the West Coast.
FIGURE 17 ACCOMMODATION USE North West
West Coast
45% Holiday
152,700
152,300
143,700
127,800
144,125
Vis. Friends & Relatives
11,000
11,400
12,800
10,400
11,400
Business & Employment
7,400
5,900
6,700
7,000
6,750
Conferences & Seminars
1,000
2,900
2,500
2,200
2,150
Total Overnight
175,700
176,700
170,100
151,600
168,525
Total Visited
203,700
205,800
194,900
177,000
195,350
Source: TVS: Table 1c – Places Stayed Overnight
40% 35% 30% 25% 20% 15% 10%
The Visiting Friends and Relatives and Business (VFR) and Employment markets are much greater in the North West, both proportionally and absolutely. In the North West VFR generates 16% of overnight visitation, but only 7% in the West Coast: this can be attributed to a much higher population of people to visit in the North West.
5% 0% Hotel resort Guest house Rented house Caravan park motel or motor or B&B apartment flat or commercial Inn or unit camping ground
Friends or relatives property
Own property Caravan or (e.g. holiday camping near house) road or on private property
Source; NVS, IVS: July 2010 to June 2011
This data correlates to the reasons for visiting included 2.4.9, where the much higher VFR visitation translates to an increased number of people staying in friends or relatives property.
CRADLE COAST AUTHORITY OCTOBER 2011
15
2.4.11. ROOM OCCUPANCY RATES
TABLE 6 ROOM OCCUPANCY RATES
Table 6 provides a summary of data included in a recent Tasmanian Hospitality Ave. Annual Occupancy
Association media release, which indicates the decline in accommodation performance in
Yield
Tasmania, and the North West in particular over the past year. The occupancy rate in the July ‘10
July ‘11
July ‘10
July ‘11
South
79.11
79.02
102.73
98.3
North
66.64
66.38
78.27
72.44
North West
52.66
50.51
45.19
41.01
Tasmania
70.54
69.62
78.67
78.55
North West region fell by over 2% in comparison the year ending July 2010, and the yield per room was $4 lower in July 2011 than in the corresponding month in the previous year.
Source: Source: Tasmanian Hospitality Association –Media Release, 19 Aug. 2011
,
16
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
2.5. TOU R ING ROU TES Country, and The Great Nature Trail. Although these touring routes are included on the
FIGURE 18 TOURING ROUTE VISITORS
Discover Tasmania website, they do not form part of the Zone Marketing Group
West Coast Wilderness
Cradle Country
Great Nature Trail
campaigns.
WCW %Return
CC %Return
GNT %Return
Between the years ending June 2008 and June 2011, the total number of car and campervan rentals in Tasmania for holiday purposes has decreased, from 251,700 to
300,000
238,000. Although it represents less than 10% of the total rentals, there has been as
250,000
period.
90% 80%
No., Visitors
substantial increase in campervan and motorhome rentals, from 13,500 to 20,500, in this
100%
350,000
2.5.1. VISITATION
70% 60%
200,000
50% 150,000
40% 30%
100,000
20%
The amount of nights spent by holiday visitors has decreased for each of the three trails,
50,000
as shown in Figure 18; the decline is most noticeable for the year ending June 2010. The
10%
0
total touring route visitors to Tasmania has also decreased by 9% over this 4 year period,
0% July 2007 - June 2008 July 2008 - June 2009
from 453,500 in 2007/08 to 423,500 in 2010/11. There has also been a marginal decline in visitors returning to Tasmania that tour the
%Return Visitors
There are three touring routes through the region: the Western Wilderness, Cradle
July 2009 - June 2010 July 2010 - June 2011
FIGURE 19 TOURING ROUTE VISITOR NIGHTS
West Coast Wilderness route, for the other routes the proportion of return visitors on the touring routes has remained approximately the same.
West Coast Wilderness
Cradle Country
Great Nature Trail
WCW Ave. Nights
CC Ave. Nights
GNT Ave. Nights
700,000
2.5.2. VISITOR NIGHTS
5.0 4.5
600,000
the four years to June 2011 .Figure 19 indicates that the nights spent on the Great Nature Trail and the West Coast Wilderness routes have declined, while Cradle Country has experienced increased nights. Average visitor nights have remained steady on the West Coast Wilderness and Cradle Country routes. The Great Nature Trail has the highest average visitor nights, and has been decreasing after a decline in 2008-09.
Total Visitor NIghts
19
500,000
3.5 3.0
400,000
2.5 300,000
2.0 1.5
200,000
1.0 100,000
0.5
0
0.0 July 2007 - June 2008
July 2008 - June 2009
July 2009 - June 2010
July 2010 - June 2011
Source: TVS: Touring Route Profiles Table 2 and 4: Holiday Visitor Nights, Table 5: Profile of Touring Route Visitors 19
The 2010-11 figure is slightly up on the previous year, but most of the growth is due to a leap in visitor nights on the Huon Trail (164,400 to 306,000)
CRADLE COAST AUTHORITY OCTOBER 2011
17
AVerage Visitor Nights
4.0
Total touring route holiday visitor nights in Tasmania has remained relatively stable over
2.6. MARKE T PERC EPT I O NS during winter 2011, and over half reported that their advance bookings were also down on
2.6.1. TOURISM BUSINESS SURVEYS
previous years20.
According to the survey results, on average the patrons of Cradle Coast region’s tourism businesses consisted of:
2.6.2. CONSULTATION OUTCOMES
•
64% were visitors to the region;
Anecdotal evidence gathered from the consultation phase largely supported the
•
39% of interstate visitors came from Victoria, 21% from NSW, and 18% from
•
Queensland; •
quantitative data. In particular, the following key trends were observed: Overall, Tasmania has held up reasonably well in the face of significant macroeconomic challenges such as the high Australian dollar and the fallout from
12% were international visitors, with United Kingdom, Japan, France, Malaysia and
the global financial crisis;
Indonesia being the most important markets. As shown in Figure 20, half of businesses identified that visitation from within Tasmania
•
The Cradle Coast region, and in particular the West Coast subregion, has experienced a greater and more prolonged downturn than Tasmania as a whole;
had increased over the past 5 years, and almost twice as many reported an increase than reported a decrease. For interstate visitation, 40% of businesses indicated an increase,
•
The Cradle Coast region has failed to capitalise on the growth of the short break
while 41% believed visitation had decreased over the past 5 years in the Cradle Coast
market on the back of the increasing availability of low cost airfares to Hobart and
region. The international visitation results were fairly evenly spread, with slightly less
Launceston;
indicating that visitation had decreased than remained the same or increased.
•
Visitation and occupancy has fallen across the region but yields have been more resilient and have increased in some places;
FIGURE 20 VISITOR MARKET CHANGES 2006-2011 Increased International
Remained the same 36%
Decreased
36%
29%
•
Average length of stay in the region has generally been perceived to have decreased over the last few years ;
•
The Asian, and especially the Chinese, market is perceived to be small but growing in the region;
Interstate
Intrastrate
40%
49%
19%
41%
26%
•
The predominant demographic of visitors to the region are older couples and, if anything, visitors are getting older.
25%
In addition, the following observations were made with regards to changes to the region’s Source: Cradle Coast Authority Tourism Business Survey
Tourism Industry Council Tasmania’s most recent survey of the industry indicates that
tourism market: •
There has been a significant decline in the touring market which has impacted on destinations that are largely reliant on self-drive visitors (for example, Strahan);
over 60% of the tourism businesses in the Cradle Coast region had been down on budget
20
TICT Industry Sentiment Survey Results. Winter Qtr: Jun-Aug 2011
•
The business/ corporate market has continued to be strong in most areas;
•
The premium accommodation sector has generally performed well over the last few years whereas there has been a significant observable decline at the mid-range level;
•
There has been a noticeable increase in demand for self-contained accommodation;
•
At the budget end, there has been a growth in campervans and other recreational vehicles (RVs) while budget accommodation has not performed well;
•
The cruise ship market is growing and represents a significant growth opportunity for the future;
•
There is a perception that Tasmania is increasingly being regarded by visitors and prospective visitors as an expensive destination;
•
Visitors are becoming more savvy and are demanding more for their money;
•
South and Western Australia potentially represent significant untapped markets.
CRADLE COAST AUTHORITY OCTOBER 2011
19
2.7. TOU R IS M M ARKE T P ROJ EC TI ON S AND F OREC A ST S Figure 21 extrapolates the existing market share (Trend) visitation for the Cradle Coast
2.7.1. TASMANIAN TOURISM POTENTIAL
region to 2020 using:
Tourism 21: 2010-2013, the Tourism Tasmania and Tourism Industry Council Tasmania joint strategic business plan proposes the following goals: •
1.1% increase in market share of interstate trips,
•
1.1% increase in market share of international trips and
•
12% increase in intrastate overnight and day trips.
•
Average regional share of Tasmanian visitation from 2005 to 2010 (calendar year);
•
Tasmania ABS population growth rates to project increased day trips;
•
Tasmanian
and Australian ABS population growth rates to project overnight
visitation; and, •
Overseas arrivals from the May 2011 Tourism Forecasting Committee, and existing Tasmanian and the regional market share for international visitation.
FIGURE 21 CRADLE COAST VISITATION PROJECTIONS 2011-
The tourism potential for growth in Tasmanian market share outlined in Tourism 21 is then
2020
added to provide the Tourism Potential projection in Figure 21.
1,200,000
This method of extrapolation indicates that the most growth in visitation in the region will Day Trips Actual
1,000,000
be provided by day trips, and overnight visitation.
The projected increases are
summarised in the table below.
Trend
800,000
Tourism Potential Overnight Actual
600,000
Trend
Tourism Potential
400,000
International - Actual 200,000
Trend
Tourism Potential
0 2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Source: TVS, NVS, IVS, Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan 2011-2013,
20
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
TABLE 7 TREND AND POTENTIAL GROWTH 2010-2020 Day Trips
Overnight
International
%increase - Trend
114%
102%
164%
%Increase - Potential
125%
130%
185%
Source: TVS, NVS, IVS, Tourism 21: The Tasmanian Government & Tasmanian Tourism Industry Joint Strategic Business Plan 2011-2013,
the respondents, over 60% indicated an expectation that they would be under budget, and
2.7.2. TOURISM BUSINESS EXPECTATIONS Businesses were also asked to estimate the expected change in gross business income for the 2011/12 Financial Year compare to 2010/11.
only 10% indicated a performance better than budgeted21. CONSULTATION FINDINGS
Consultation with the region’s tourism operators indicates the following expectations of
FIGURE 22 INCOME CHANGE 2010/11 TO 2011/12
the future performance of the industry: •
There is a general sense that tourism is performing poorly in the region, especially during the winter months, and in the West Coast;
24%
•
Expectations for the next 12 months are that tourism performance will be stable although winter bookings will continue to drop off raising the threat of some destinations becoming seasonal towns in the near future;
16%
16%
•
particularly those within the North West;
12%
• 8%
Prospects for attractions were generally more positive than for accommodation,
8%
Several interviewees believe there are opportunities for future growth particularly with product targeted to emerging and growing markets, such as China. They also
7%
acknowledge the difficulties presented by a challenging global and national
5%
economic situation: pricing reviews and cost reduction strategies will be important
4%
maintain competitiveness; •
• Source: Cradle Coast Authority Tourism Business Survey
Almost half of businesses in the Cradle Coast region estimated that their gross business
Participants were generally confident about the future of Burnie and Devonport as their role as regional hubs continues to develop and grow;
31% or more 21% - 30% - 11% - 20% - 1% - 10% - No Change 1% - 10% - 11% - 20% - 21% - 30% - 31% or more - Decrease Decrease Decrease Decrease Increase Increase Increase - Increase
There is a feeling from some participants that local operators are not ready to meet the demands of emerging markets, for example, Asian visitors;
•
There is a sense of renewed confidence in King Island as a result of the forthcoming golf course development at Cape Wickham.
income would increase in 2011/12, with over one-third of businesses expecting an increase in income between 1% and 20%. 36% of businesses expected their gross income to decrease in the 2011/12 Financial Year, with 24% of businesses expecting a decrease in income between 1% and 20%. The TICT survey of business sentiment found that overall, tourism business confidence in Tasmania is low, with over 50% of respondents indicating a somewhat or very negative outlook for the Tasmanian tourism industry. Also, approximately 70% of respondents indentified visitor demand as one of the three biggest constraints to business growth. Of 21
TICT Industry Sentiment Survey Results: Winter Qtr. Jun. – Aug.2011
CRADLE COAST AUTHORITY OCTOBER 2011
21
3.
T OURISM P RODUCT A ND E XPERIENCES
3.1. INTR ODU C TI ON
TABLE 8 KEY PRODUCT STRENGTHS
This section provides an overview of the region’s product and experience audits to identify
Product
Tasmania
North West
West Coast
The product and experience audits are quantitative; the purpose of section 3.5.4: Cradle
Natural Scenery
Primary
Primary
Primary
Coast Destinations is to make a qualitative assessment of the audit data to assess the
Wildlife
Primary
Primary
Primary
NatureNature-based Recreation
Primary
Primary
Primary
History and Heritage
Primary
Secondary
Secondary
Arts and Culture
Secondary
Secondary
Secondary
Food and Wine
Secondary
Primary
Emerging
Festivals and Events Events
Emerging
Emerging
Emerging
Indigenous Tourism
Emerging
Emerging
Spa and Wellness
Emerging
Adventure To Tourism
Emerging
the key attractions in the region and the tourism products that support these attractions.
locations within the study region that are significant tourism destinations. The outcome of this analysis is to identify and consider proposals for both: •
Destinations within the region that can become significant tourism destinations, and
•
Products that may increase visitation to the major sites for visitation in the region.
3.2. SU MM ARY •
Both North West and West Coast sub regions highlight their natural attractions as key product and experience strengths;
•
Food and wine is a primary strength of the North West, but is emerging on the West Coast;
•
There are significantly more food and dining establishments in the North West than on the West Coast, which is due to the local produce and greater residential market to service;
•
Tourism developments at Cape Wickham and the Tarkine may drive increased visitation to the region;
•
Devonport has the largest accommodation capacity in the region, although Strahan has the most if camping facilities are excluded;
•
The audits identified Cradle Mountain, Strahan, Stanley, Devonport and King Island as distinct tourism destinations within the region; and,
•
There has been a lack of new product and accommodation development in the region over the past decade.
•
The experience audit provided support to the findings of the product audit; that nature based was the primary strength of the region, and food and wine is a strength
•
There appears to be an interlinked decline in both tourism investment and visitor demand in some locations within the region.
22
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
of the North West.
3.3. PRODU C T AU DIT A product audit was undertaken within the Cradle Coast region, the aim of which is to examine the current tourism product offer within the region to identify key strengths and
The categories used for the product and experience audits are: ADVENTURE & NATURE BASED
Product relating to bushwalking, fishing, lookouts, falls wilderness walks, kayaking, caves, river cruises etc.
gaps. FESTIVALS & EVENTS
The audit was compiled through web based research via a number of local, regional and
Regional, local and community events
state websites. The audit was then reviewed by the region’s tourism industry representatives online to refine the data collected. The product and experience audit has
ART & CULTURE
been broadly divided into the following sub categories in order to highlight the product and
Art galleries, theatre or performing arts, cultural centre, artists’ workshops.
experience strengths of the region. Accommodation and Food and Wine are analysed separately as they are mainly supporting the attraction of tourists to the region rather than attractions in their own right.
GOLF
Golf courses HISTORY & HERITAGE
Historical landmarks, walks, museums. INDIGENOUS
Indigenous tour operator or cultural centres. TOURING
A touring route or tour operator that tours around a location WILDLIFE
Wildlife tours, parks or trails. SPA & WELLNESS
Day spas, wellness centres. FOOD & WINE
Restaurants, café’s, produce markets, cellar doors, farm gates. ACCOMMODATION
Accommodation is examined by type, the number of establishments and the total capacity.
CRADLE COAST AUTHORITY OCTOBER 2011
23
3.3.1. PRODUCT PROFILE
FIGURE 23 CRADLE COAST PRODUCT PROFILE
REGION OVERVIEW
The product audit demonstrates that the region’s core product strengths are nature,
169
adventure and walking. This accounts for 39% of all products in the area, and is the most significant product in both the North West and West Coast. History and Heritage, Local Produce, Festivals & Events and Art & Culture were also highlighted in the product audit. There was only one indigenous tourism product identified in the audit, the Tiagarra
52
48
Aboriginal Culture Centre and Museum in Devonport. Other indigenous sites, and the rich
47
43 28
26
Wildlife
Touring
cultural heritage of the region, were referred to in the consultation process and there is a plan for the development of indigenous tourism within the Tarkine. There were 16 golf courses identified in the region, but many of these courses are only 9
Nature/ Adventure/ Walking
History & Heritage
Local Produce
Festivals & Events
Art & Culture
19
Golf
3
1
Spa & Wellness
Indigenous
holes: to be considered by tourists clubs should provide at least 18 holes. NORTH WEST
FIGURE 24 REGIONAL PRODUCT PROFILE
Within the North West nature based, adventure and walking is a strength of this region, accounting for 35% of all product. Local Produce the North West is considered a primary strength, with wineries, farm gates and King Island beef and dairy. Much of the food and
North West
West Coast
Cradle Mountain
120
wine product is contained within Stanley (59%) of which seafood based product is a key feature; this is followed by Burnie (32%).
100
Other frequently cited categories in the North West are History and Heritage, Festivals and Events, Art & Culture and Wildlife. WEST COAST
80
60
Nature based, adventure and walking product is a key strength across the West Coast representing 40% of all product as highlighted in Figure 23 – there are a smaller number of
40
operators in the West Coast, and therefore fewer responses to the survey.. 20
CRADLE MOUNTAIN
The product at Cradle Mountain is predominantly nature based, with some supporting product in the History and Heritage, Art & Culture, Wildlife, Touring and Spa categories.
24
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
0 Nature Adv Wlkg
History & Heritage
Festivals & Events
Local Produce
Art & Culture
Wildlife
Touring
Golf
Spa & Wellness
Indigenous
Accommodation Audit
3.3.2. DINING AND FOOD Industry consultation indicated that food and wine product is considered differently in each
ACCOMMODATION OVERVIEW
sub region. Food and Wine is not viewed as a key strength in the West Coast primarily
Table 10 summarises the accommodation businesses in the Cradle Coast region, and
relating to issues with obtaining fresh produce in the area and also the ability to get
includes businesses by accommodation type, number of properties, total capacity and
access to fresh seafood due to the fishing quotas. This is highlighted in Table 9, where
sub-region.
the North West has 18 restaurants to the 7 identified in the West Coast.
The audit found 362 properties within the region, with a total capacity to accommodate up
There is also a much greater population to support a variety of dining and food offers in
to 16,238 people; the majority of accommodation establishments are located in the North
the North West, which is particularly evident in the higher numbers of Bakeries and Cafes
West (79%).
and Restaurants in the region.
The main accommodation type is self contained which accounts for 51% of all properties, most of which are small one or two bedroom properties.
TABLE 9 REGIONAL FOOD OFFER
Although caravan and holiday parks account for only 10% of all properties, they account Location
Bakery Café
Clubs/ RSL
Hotel
R’rant R’rant
Bar/Bistro Bar/Bistro
T/away
TOTAL
West Coast
6
2
8
7
3
4
30
North West
24
2
3
18
3
3
53
Cradle Mountain
1
3
3
TOTAL
31
28
9
for 47% of the total accommodation capacity in the region. The size of the camping segment of the market reflects the key product strengths of adventure, nature based
4
11
7
7
90
product and experiences. The majority of the camping accommodation is in the North West, were over half the capacity is in this sector, while it accounts for only a quarter in the West Coast. Generally the accommodation across the region is within the 3 ½ to 4 star range with limited 4 ½ to 5 star accommodation to cater for the high end market. This gap does restrict the region in terms of its ability to attract international markets, in particular the US
Source: Cradle Coast Tourism Industry, via Google Docs
and UK. In the West Coast 44% of the total capacity is within hotels and motels. Of note, attendees at industry workshops indicated that accommodation operating at the higher end of the market was faring much better than the budget providers. Although many of the caravan and holiday parks do cater for backpackers with several establishments offering affordable dormitory style accommodation, there are limited properties (2% of total properties) that are marketed exclusively to this market.
CRADLE COAST AUTHORITY OCTOBER 2011
25
MAJOR ACCOMMODATION LOCATIONS
TABLE 10
ACCOMMODATION PROVISION
Table 11 lists the ten locations within the region that have the greatest accommodation capacity. These 10 locations are home to 58% of accommodation establishments in the
North West
West Coast
Total
region, and provide 71% of the total accommodation capacity22. No.
Devonport has the most accommodation, which can be attributed to its position as a
Capacity
No.
Capacity
No.
Total
Ave. Capacity 16.3
regional hub, and similarly with Burnie which has the third most. Strahan has the second
Self contained
143
2,122
40
865
183
2,987
most accommodation in the region, and the most non-camping accommodation, and
B&B/Guest House
59
440
6
86
65
526
8.1
Caravan/ Holiday Park
30
5,955
7
1,195
36
7,560
210
Cradle Mountain is fourth, highlighting its position as an iconic tourism destination. Strahan also has the most establishments in the Cradle Coast region, with 49. Of these establishments 32 are self contained unit types, and represent only 32% of the total accommodation capacity of the town.
Hotel/Motel
49
2,603
20
2,115
69
4,718
68.4
Backpacker
6
359
2
306
8
665
83.1
TOTAL
287
11,479
75
4,759
362
16,238
44.9
Stanley has the second most number of
establishments with 39: 23 are self-contained and a further 10 are backpackers and represent 35% of the total capacity. TABLE 11 TOP 10 ACCOMMODATION LOCATIONS Hotels, Self cont. B&Bs
Camping
Hostels etc.
22
Capacity refers to the maximum number of guests an establishment can accommodate
26
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
Total
Locations
No.
Capacity
No.
Capacity
No.
Total
Devonport
29
1042
6
1576
35
2618
Strahan
42
1175
3
694
45
1869
Burnie
20
739
2
454
22
1193
Cradle Mountain
5
733
1
410
6
1143
Queenstown
16
907
1
225
17
1132
Port Sorell
8
192
3
921
11
1113
Ulverstone
14
394
3
546
17
940
Stanley
38
370
1
295
39
665
Wynyard
12
239
2
321
14
560
Somerset
4
96
1
254
5
350
3.4. PRODU C T DEVEL OP MENT AND INVE ST MENT enhance the quality of the offer, attract return visitation and to meet the demands of 3.4.1. INTRODUCTION
changing market expectations23.
After growing substantially between 2001 and 2006, tourism investment in Australia declined in 2007, particularly in comparison to total private investment, as shown in Figure
3.4.2. DEVELOPMENTS AND OPPORTUNITIES
25.
Several opportunities for growing the region’s tourism industry were raised in the industry workshops, including:
FIGURE 25 PRIVATE INVESTMENT IN TOURISM
•
Derive wider economic development benefits to the region from the Spirit of Tasmania;
•
Promote the regional airports’ as providers of ready access to the region. For example, promote Wynyard as the gateway to the Tarkine and investigate potential for connecting flights from Melbourne to Wynyard on to Strahan to access the short break market;
•
Continue to attract, and increase the benefits derived from cruise ships in the region;
•
Maximise the potential of the region’s under-utilised and underexposed assets, including Lake St Clair and the region’s coastline.
Several proposals for new developments and investment were highlighted during the consultation processes undertaken during the development of this report. These include Source: ABS and ACCESS Economics, reproduced from the Jackson Report: Informing the Long Term Tourism Strategy, 2009
Research into tourism investment published in 2010 found that those within Tasmania’s tourism industry saw the levels of investment in product and infrastructure to be detrimental to the future of the industry, particularly that: •
•
a 5-star hotel in Burnie, a restaurant and accommodation in Strahan, a new glass bottom boat to operate out of Stanley, and 3-star and backpacker’s accommodation in Smithton. Tasports are also making a significant investment in Devonport Airport. In addition to these opportunities, several specific development opportunities have been identified, as detailed in the following sections.
There was a need to develop new, and refurbish older accommodation provision in
THE TARKINE
the state; and,
The Tarkine, located in the north west of Tasmania, is the largest rainforest in Australia,
Improved road links between attractions may improve the prospects of the industry.
During the consultation undertaken in this research into tourism investment, Tasmanian
and also has a significant amount of Aboriginal sites. There have been regular attempts to increase both the level of protection and land area included in the Tarkine’s ArthurPieman Conservation Area.
respondents also noted the importance of ongoing investment in tourism product, to 23
Tourism Investment in Australia: A Scoping Study, Sustainable Tourism CRC
CRADLE COAST AUTHORITY OCTOBER 2011
27
The road access through the region is currently limited to the gravel roads to Corinna and
•
Driving
Arthur River, The Tasmanian Government has considered the development of a tourist road through the region, at a cost of over $20 million. Most recently, a development proposal was lodged with the Federal Environment Minister in 2011 24 .
The road
industry
development
through
education,
staff
development
and
communication; •
Marketing, promotion and branding.
development is supported by the Tourism Industry Council of Tasmania “as an adventure
The Tarkine Tourism Development Strategy is accompanied by the Tarkine Aboriginal
and nature-based tourism hub” 25 . There are also proposals to introduce open cut tin
Tourism Plan, which explores options for the future development of Aboriginal tourism in
mines in the Tarkine, which are currently under consideration by the federal Minister for
the region. The report stipulates that any proposed experiences need to be authentic and
the Environment.
driven by the Aboriginal community.
The Corrinna community are also seeking funding to develop a multi-day walking track through the Tarkine region. This will provide another iconic walking experience in the
CAPE WICKHAM GOLF COURSE
region, to complement the Overland Track that takes in Cradle Mountain and Lake St.
King Island Council recently approved a major golf course development at Cape
Clair.
Wickham, at the northern point of the Island. The development is to cover 84 hectares, and is expected to cost between $5 million and $10 million, and the proposal includes an
The Cradle Coast Authority completed a tourism development strategy in 2008, to 26
8 unit eco-lodge27.
promote the unique natural and cultural heritage of the Tarkine . The development strategy recommends that targeted investment is required to improve access, visitor
With only 8 units included in the development, it is likely that golfing visitors will create
information, provide a range of accommodation, quality food and wine experiences and
demand for accommodation on the island in excess of the development’s provision.
increase opportunities for visitors to connect with the wilderness. One of the key
The Tasmanian Visitors Survey indicates that golfing tourists provide a higher yield than
recommendations from this strategy is the development of a Tarkine brand, as the Tarkine
the average: golfers spent 37% more on average than other Tasmanian visitors between
is not an officially recognised geographical area and spans the jurisdictions of three
July 2010 and June 2011. Tourism Research Australia data indicates that golfing tourists
separate municipalities. The report also includes a list of specific recommendations and
frequently dine out, go to beaches, visit state and national parks. These two pieces of
actions relating to:
information indicate the overall benefits of the development to King Island.
•
Improving access, infrastructure and product at key entry points and along major corridors;
MOUNT ROLAND
Mount Roland is located in Kentish Shire, south of Sheffield. Kentish commissioned a
•
Developing regional linkages through the use of signage;
•
Improving coordination between the various land managers and other relevant
developing the mountain as a tourism destination. The three options that were identified
authorities;
as the most promising were:
Developing product around tracks and trails, aboriginal heritage and adventure
•
An adventure tourism hub;
•
A must-see destination for recreational campers, including fully self-contained
•
sports;
report in 2010, Mount Roland: Developing a Destination, to identify opportunities for
campers 24
http://www.abc.net.au/news/2011-11-24/20111124-tarkine-road-back-on-the-board/3692772 http://www.tict.com.au/tict-policy/the-tarkine 26 Tarkine Tourism Development Strategy (CCA, 2008) 25
28
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
27
http://www.themercury.com.au/article/2011/10/21/270361_sport-news.html
•
The data indicates that 4% of Cradle Coast tourism businesses in the region constructed
A world-class mountain biking and family cycling park
Further recommendations assessed for product development included walking tracks; lookouts, interpretation and a cable car ride to the top.
a new building in 2011, at an average cost of $108,046. Significantly, three of the five new buildings identified in the survey cost less than $12,000, the other two were over $200,000.
3.4.3. CRADLE COAST TOURISM BUSINESSES - INVESTMENT IN
The survey respondents’ intention to develop new buildings in 2012 is
approximately the same as in 2011. Almost a quarter of the businesses indicated that they had undertaken a refurbishment in
BUILDINGS The Cradle Coast Tourism Business Survey’s findings on building construction and refurbishment projects are included in Table 12, with recent survey results from the Mornington Peninsula included for comparison.
2011, and a further 15% intend to do so in 2012. Four of the 27 refurbishment projects in 2011 were $90,000 or above, while 13 were valued at $10,000 or less. Although the number of refurbishment projects intended for 2012 is less than in 2011, the estimated value of the planned projects is approximately 65% higher. The comparison with Mornington Peninsula businesses indicates the low levels of
TABLE 12 TOURISM BUSINESS INVESTMENT
investment in the region, both in terms of the proportion of businesses making investment Cradle Coast Region
Mornington Peninsula
2011
2010-11
Current Year
4%
12%
Next Year
5%
11%
Current Year
23%
25%
Next Year
15%
30%
Average Spend –
Current Year
$108,046
$295,471
New Building
Next Year
$93,333
$175,273
Average Spend –
Current Year
$33,241
$108,938
Refurbishment Refurbishment
Next Year
$54,889
$52,089
Bldg Permits
%Appl
10%
14%
Survey Year
and particularly the value of the investment.
%New Building
%Refurbishment %Refurbishment
Source: Cradle Coast Tourism Business Survey, Mornington Peninsula Health of Tourism
CRADLE COAST AUTHORITY OCTOBER 2011
29
3.4.4. BARRIERS TO INVESTMENT
TABLE 13 BARRIERS TO INVESTMENT Cradle Coast Tourism Business Survey: Survey:
Tourism Investment In Australia:
Business Growth Constraints
Tasmanian Responses Responses, nses,
(% of responses)
Barriers to Investment
Visitor Demand – 21%
The industry is predominantly small operators, doing it for “love of the industry” rather than just profit.
Expense of marketing campaigns - 15%
Lower returns than other investment options
Seasonality – 14%
Seasonality – November to April peak.
Obtaining finance – 10%
Complexity and length of government approval processes for development
Government Regulation – 9%
Remoteness and access from the mainland
Labour costs – 6%
Lack of State Government funding and support for tourism
Lack of or poor marketing and promotion – 4%
Community resistance to tourism development
Attracting quality staff – 2%
Training and attracting quality staff, particularly in remote areas.
A study into tourism investment published by the Sustainable Tourism CRC in 2010 used Tasmania as a case study, and provides insight into the obstacles in attracting investment into the state’s tourism industry28. Respondents to the survey carried out as part of this research strongly believe that there has been limited investment in the state’s tourism industry. Other survey results included: •
There is a need to invest in the roads linking the state’s attractions;
•
The low levels of investment will impact on the quality of the state’s tourism offer in forthcoming years;
•
One issue restricting tourism investment is the low level of return, particularly in comparison to mining and property development;
•
The complex development approvals process in Tasmania is impacting on tourism investment;
•
There is strong community resistance to tourism development in some areas, particularly in relationship to the state’s cultural and heritage values;
The barriers to investment identified in this study are listed on the right hand side of Table 13, and are compared to the respondents to the Cradle Coast Tourism Business Survey, included on the left hand side.
Source: Cradle Coast Tourism Business Survey (LHS), Tourism Investment in Australia: A Scoping Study (RHS)
Although only 6% of the region’s businesses identified labour costs as an impediment to business growth, and 2% identified attracting quality staff, 50% of the business
Even though the two surveys come from different perspectives, one local operators
responding to the survey had 2 employees or less, across full time, part time and casual
reflecting on their own business and the other a broader consideration of barriers to
staff, and only 28% of respondents had more than 2 full time staff. This indicates that
investment, there are some recurring themes, including:
staff issues may be more of an issue for those businesses with employees than the data
•
The seasonality of Tasmanian tourism;
suggests at first.
•
Lower returns on investment, which impacts obtaining finance; and,
•
Government regulation.
One business in five businesses selected visitor demand as the most significant issue for business growth in the Cradle Coast region, yet tourism investment has also been identified as a driver of visitor demand. This indicates that the two should be addressed concurrently, with new product development supported by a marketing campaign highlighting recent developments.
28
Tourism Investment in Australia: A scoping Study, Sustainable Tourism CRC, 2010.
30
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
3.4.5. ACCOMMODATION DEVELOPMENT Table 14 summarises the changes in accommodations provision in the North West, West Coast, Tasmania, Victoria and South Australia, according to the ABS Tourist Accommodation Small Area Data. Although the data does not capture the full extent of accommodation offer, as the product audit identified 65 B&B’s and Guest Houses and 183 self contained apartments out of the 362 total establishments, it does provide a guide to accommodation investment in the past decade. TABLE 14 ACCOMMODATION PROVISION: 2002 AND 2011 North West
West Coast
Tasmania
Victoria
South Australia
Dec-02
Jun-11
%Growth
Dec-02
Jun-11
%Growth
Dec-02
Jun-11
%Growth
Dec-02
Jun-11
%Growth
Dec-02
Jun-11
%Growth
Establishments
33
29
-12%
10
11
10%
140
155
11%
714
809
13%
238
266
12%
Rooms
1,007
1,014
1%
425
507
19%
5,797
6,832
18%
33,183
41,824
26%
11,029
12,652
15% 12%
Bed spaces
2,950
2,749
-7%
1,211
1,282
6%
17,170
18,871
10%
90,199
111,830
24%
31,007
34,583
Persons employed
569
640
12%
258
232
-10%
4,129
4,490
9%
21,208
22,475
6%
6,745
7,138
6%
Room Nights Occupied
45,923
46,618
2%
15,694
13,970
-11%
315,718
328,580
4%
1,827,777
2,379,939
30%
620,464
717,515
16%
Bed Occupancy Rate
29%
31%
9%
25%
22%
-15%
36%
33%
-7%
37%
40%
6%
36%
36%
-1%
Source: ABS, 8635.2 Tourist Accommodation Small Area Data - Victoria, 8635.4,Tourist Accommodation Small Area Data - South Australia and 8635.6 Tourist Accommodation Small Area Data – Tasmania
•
Although the data collection method changed in 2005, by 2010 it had reverted to the same method used in 2002: only establishments with15 or more beds are included in both data sets, enabling comparison29. This data indicates that:
•
•
•
Although the number of rooms in the North West is the same, there are fewer establishments and bed spaces, leading to an increased Bed Occupancy Rate.
This implies that there has been investment in developing additional accommodation
Although the growth in establishments in the three states is equivalent, the growth in
capacity in the West Coast’s larger establishments, but this has been met with falling
Room Nights Occupied has been much less in Tasmania than in either Victoria or
demand for room nights. In the North West, the provision has remained essentially the
South Australia;
same in terms of rooms and beds, and occupancy has grown marginally over the decade.
Room Nights Occupied in the North West is at equivalent levels to 2002, but there
This data, in conjunction with the business investment responses included in section
has been a substantial decrease in the West Coast;
3.4.3, indicates a limited investment in the development and refurbishment of accommodation provision in the region in the past 10 years.
•
There has been a significant growth in the number of rooms in the West Coast, but total room nights and the Bed Occupancy Rate have fallen markedly;
29
(ABS 8635.0.55.003 - Information Paper: Future changes to Tourist Accommodation, Australia, May
2010)
CRADLE COAST AUTHORITY OCTOBER 2011
31
3.5. C RADLE C O A ST EX P ERIENC E S 3.5.1. INTRODUCTION A Tourism Experience is generally made up of a number of different product types for example, a food and wine experience combined with a wildlife experience in a natural area. These can be tailored towards each individual or group. This will ensure that the visitor perceives their experience as unique, a key component in creating a Tourism Experience.
3.5.3. KEY FINDINGS The main strength across the region is nature based and adventure experiences, with Cradle Mountain being the iconic tourism destination in the region. Other significant nature based experiences in the region include: •
The Nut at Stanley;
•
The Gordon River, Macquarie Harbour, Ocean Beach and the Huon Pines located
The industry workshops provided support for developing an understanding of experience, with attendees suggesting that experience marketing will need to be promoted through a
around Strahan;
state-wide strategy to the Interstate and International markets. In addition it was also
•
The bushwalks through the Tarkine;
suggested that tourism marketing and development should have a focus on young
•
Wildlife experiences within the North West, with the chance to view platypuses in
adventurous visitors who are higher yield markets, particularly for the wilderness and adventure aspects of the region.
the wild as well as penguins; and •
Wildlife at Narawntapu National Park.
3.5.2. METHODOLOGY
Food and Wine experiences are more prevalent in the North West than in the West Coast.
The experiences identified for this audit were collated via a desktop search of key visitor websites for the region. The main websites used in this research are as follows:
There are opportunities for visitors to meet the wine, cheese, whisky makers and fresh
•
www.discovertasmania.com.au
•
www.westernwilderness.com.au
•
www.tasmaniaswesternwilderness.com.au
•
www.tasmaniasnorthwest.com.au
•
www.stanley.com.au
•
www.strahantasmania.com
•
www.discoverburnie.net
This information was then provided to tourism industry representatives to refine and add additional experiences based on their knowledge of the region. The information collected in this process has then been assessed to identify the prominent tourism experiences in the Cradle Coast Region
produce growers in the North West. It was also noted in the industry workshops that the North West is unique with its cool temperate climate and rich soils, which presents tourism opportunities with a garden/farm focus due to the quality that can be produced. The quality of the produce on offer on King Island is also a significant experience in the region. The West Coast has limited agriculture, due to limited productive agricultural land. Seafood is the produce strength within the region, particularly in Strahan due to its fishing industry. However, this is not reflected in the online visitor information, with little presence on key websites as to where visitors might source and find seafood. Art and Cultural experiences are a feature of the North West, and the Makers’ workshop in Burnie is a unique experience that could be leveraged to provide greater benefits within the region. The history and heritage of the West Coast was seen as a secondary regional strength in the consultation process. However, few history and heritage experiences were identified
32
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
in the desktop review indicating that the current promotion of the strengths in promotional
•
Helicopter tours.
material and particularly via online sources. STRAHAN
3.5.4. CRADLE COAST DESTINATIONS
Strahan is located on Macquarie Harbour, near the Franklin-Gordon Wilde Rivers National
The following provides a summary of the major destinations within the Cradle Coast
Park which is part of the Tasmanian World Heritage Area. It is also the base for exploring
region, as identified by the product and experience audit, through the analysis of the
Sarah Island, a heritage convict prison, and is linked to Queenstown by the steam railway
visitation trends and industry consultation.
journey. With over 220,000 in 2010-11, Strahan hosts the second most visitor nights in the region, behind Devonport, although it has declined by 3% in the last two years31. Also
CRADLE MOUNTAIN
Cradle Mountain is within the Cradle Mt – Lake St Clair National Park, and forms part of
of note is the seasonality of the market in Strahan, which was highlighted in consultation and supported by the NVS data in section 2.4.5.
the Tasmanian Wilderness World Heritage Area, and is home to aboriginal heritage and
Of the 14 experiences identified in Strahan, 11 were adventure or nature based, and
European settler heritage as well as the significant natural attractions in the area 30 .
included wilderness, the Gordon River and Macquarie Harbour, and Ocean Beach and its
According to the Tasmanian Visitor Survey data included in Table 4, only Devonport and
surrounding attractions. Other experiences noted in Strahan refer to its history; convict
Strahan host more visitor nights from outside of the State than Cradle Mountain,
history at Sarah Island and the campaign to stop the Franklin River dam in 1980s.
highlighting it’s important to tourism in the region.
Strahan has the most accommodation establishments in the Cradle Coast region, and the
The experience audit identified 18 adventure, nature based and wildlife attractions on
greatest capacity if camping facilities are excluded. Other products identified in the audit
Cradle Mountain, the most of any location identified in the audit. In addition, the
align with the experience audit, highlighting the rich variety of adventure, natural and
experience on offer includes cycling events, spas and health retreats and food and wine
wildlife attractions on offer in the region, supported by opportunities to learn more about
tasting.
the history of the region.
As noted in section 2.4.10, Cradle Mountain has the fourth most accommodation of any destination in the region, with a capacity of 1,143. Other products identified include:
STANLEY
Stanley is had a significant amount of product identified in the audit, with 24 food
•
Over a dozen separate walking tracks;
•
Six food and wine establishments;
•
The Wilderness Gallery;
•
Waldheim Chalet, which provides accommodation, a heritage building and an Alpine
opportunities for reaching the top of the Nut, the walking tracks in Rocky Cape National
Spa;
Park and the seal and penguin viewing.
providers, 39 accommodation establishments, plus many attractions including The Nut. Stanley is also the main service centre for the Tarkine, and tourism developments in this wilderness region may provide increased custom for the town. Tourism experiences identified by local operators include the chairlift and walking
•
A day spa;
•
Tasmanian Devil viewing, and;
30
http://www.parks.tas.gov.au/index.aspx?base=3297
31
TVS: Visitor Nights by Town, 2011 – excludes Tasmanian visitation
CRADLE COAST AUTHORITY OCTOBER 2011
33
region, attracting 10,700 for the year to June 2011, which represents 40% of the total
KING ISLAND
King Island is a unique destination, and as discussed in 2.4.5, it receives most of its
business visitors to the North West32.
visitation directly from Victoria. The Island is known for its premium dairy and beef
Devonport’s position as a regional hub, underlined by the results of the experience audit:
products, and local produce features heavily in the tourism product identified on the
even though it has the most visitor nights spent by those from outside of Tasmania only
island, as shown in Figure 26. The development of an international standard golf resort at
one experience was identified in the audit: exploring the coastline from Victoria Parade to
Cape Wickham is expected to be a boon for tourism on the island; the product audit
the Bluff. The product audit did identify a range of offerings, including some adventure
identified one existing golf course.
and nature, art and culture and the only indigenous tourism product identified in the region, the Tiagarra Aboriginal Culture Centre and Museum.
FIGURE 26 KING ISLAND PRODUCT Adventure and Nature 2
Even though Devonport is not home to any of the region’s major tourism attractions, it is significant to the region’s tourism industry: the main source of this significance is the TT
Golf 1
Line, as many of the attractions in the region require a car to access; it is also many visitors’ introduction to the region. Local Produce 7
Art & Culture 2
History & Heritage 2 Touring 3
According to the product audit, the Island has the capacity to accommodate 250 people across 12 establishments. Most of the accommodation is in motels or are or the self contained type. The experience audit identified the high quality dairy produce, the shipwreck trail and the variety of wild life as the main tourism attractors to the island. DEVONPORT
Devonport hosts the most visitor nights, and including camping has the most accommodation capacity in the region31. Its significance to tourism in the region is as the point of departure from the Spirit of Tasmania, and it is also the largest city in the region. Over 130,000 people left Tasmania on the ferry from Devonport in the year ending June 2011.
Also, Devonport had the highest number of overnight business visitors in the 32
34
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
TVS: Port and Mode of Departure, Places stayed Overnight: Business or Employment, 2011
4.
R EGIONAL M ARKETING
4.1. OVERV IEW The North West and the West Coast are represented as having different products and experiences, as indicated by the regions’ attributes highlighted on the Discover Tasmania 33
website : NORTH WEST
largest amount of marketing expenditure was on either Zone Marketing or Tourism Tasmania cooperative campaigns34. The brief Discover Tasmania marketing overviews of the two regions reflect the findings of the product and experience audit. In the North West the local produce and food were seen as the key attractors in the region, alongside the nature based products. In the West Coast, the findings highlighted the many natural attractions in the region. The analysis of the key attributes of the North West and the West Coast, along with the
•
Vibrant cafe culture in major towns and seaside villages.
•
Breathe in some of the cleanest air in the world.
separate tourism destinations. Although this may indicate that the regions should be
•
Meet makers not shakers and share the creative spirit of local artists.
marketed separately, there are other considerations, including:
different markets for each region, indicates that they should continue to be marketed as
• WEST COAST
•
It’s out there on the edge of the world. One of the most unspoiled and wildest areas of Australia.
•
either region it aligns with. It may be marketed within either region, or both; •
•
strengths independently; •
themselves as competing directly in the food tourism market. This is also supported
The variance in the experiences promoted may be a result of the two regions being
by the data included in section 2.4.5;
included in different Zone Marketing Groups until the restructure of Tourism Tasmania’s •
offer. As the North West and the West Coast will be affiliated to the same Regional Tourism Organisation, the similarities and differences of the two regions as tourism destinations requires consideration to inform how they will be best marketed in the future.
King Island industry representatives indicated that consideration should be given as to whether they should be marketed separately to the North West, as they view
An area rich in convict history, wilderness adventures and a pioneering spirit.
regional structure; however the audits reveal that both have distinctly different product
By marketing the two regions together as one entity, the greater funding available for cooperative campaigns may outweigh the benefits of focusing on each region’s
Your entry to our World Heritage Area and home to the mighty Franklin and Gordon rivers, and Cradle Mountain.
Cradle Mountain sits across both regions, and is of significant marketing benefit to
Rather than regions, it is possible that separating the industry by product types may provide more presence in the marketplace.
•
There may be benefits in marketing the regions together outside of Tasmania, but as distinct locations within Tasmania.
This is particularly pertinent as the highest proportion of operators indicated that their
The industry perception that the Zone Marketing Groups did not work for operators located on the fringes provides insight into the structure of regional marketing in the
33
www.discovertasmania.com – Western Wilderness and North West Coast pages.
34
Cradle Coast Tourism Business Survey.
CRADLE COAST AUTHORITY OCTOBER 2011
35
region. This was particularly noted for the Mole Creek area, which was near the border of
Also, in 2010/11 survey respondents spent on average of $9,987 on business marketing
the West Coast, North West and Launceston, Tamar and the North zones.
and promotion, and expect to increase this by almost 10% to an average of $10,905 per business in 2011/12.
4.1.1. OPERATOR MARKETING AND PROMOTION The marketing of the regions has been extensively based on the two separate regions, as the Tourism Tasmania and Zone Marketing cooperative campaigns market the North West and the West Coast separately. The reliance on these programs for marketing is highlighted by Figure 27, where 48% of businesses in the Tourism Business Survey indicated that their greatest marketing expenditure was on cooperative campaigns. FIGURE 27 MARKETING SPEND Highest Spend
2nd Highest Spend
Tourism Tasmania Cooperative Marketing campaigns
33%
Zone Marketing Cooperative Marketing Packages
15%
Radio
14%
Online
11%
Visitor Centre brochure fees
10%
Television
10%
14%
14%
15%
22%
13%
Local Tourism Association Marketing Campaigns
Source: Cradle Coast Tourism Business Survey, 2011.
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
24%
18%
Advertisement in Zone Holiday Planner/ Visitor Guide
36
3rd Highest Spend
13%
21%
13%
12%
4.1.2. INDUSTRY PERSPECTIVES •
•
There was a lack of consensus on how the Cradle Coast region should be marketed
partnership to develop a regionally focussed destination management approach
and branded. Most participants suggested one of the following three approaches:
which would sit under the high-level Tasmania brand;
•
Brand the whole region as the Cradle Coast and market the strength of the
•
region as a ‘bundle of products’; •
Councils, Local Tourism Associations and operators. In particular, consensus needs
Separate branding between West Coast (wilderness, nature) and North West
to be reached between these groups as to who is responsible for intrastate marketing, as this is perceived to fall through the cracks;
products of Cradle Mountain and the Tarkine should be included in the West Coast marketing; •
As above but also a separate brand for King Island (because it is in competition with North West as a destination);
•
Most interviewees believed that marketing should be delivered through a coordinated approach involving Tourism Tasmania, Cradle Coast Authority,
(food driven). There was further discussion as to whether the key wilderness
•
Several participants felt that Tourism Tasmania and the Regional Tourism Associations. including the Cradle Coast Authority, need to work together in
•
There was no consensus on who should be responsible for destination marketing; several operators felt this should be Cradle Coast Authority’s responsibility and to a lesser extent the Local Tourism Associations’. Other participants believed this should be the responsibility of the operators themselves, either individually or in
It was generally felt that marketing the region along loose product lines as opposed
collaboration with other operators and/or their Local Tourism Associations’ and
to focussing on strict geographical boundaries (‘zones’) might make more sense;
Council.
Several people highlighted the need for a refresh of the marketing of the region. In particular, messaging needs to be revised to make the region appeals more to younger generations and to shift perceptions away from cheap accommodation towards experiential product;
•
Consideration should be given to marketing the Cradle Coast as a separate standalone destination, apart from Tasmania. For example, targeting the Victorian market by promoting Cradle Coast as an ‘undiscovered frontier’ or as an ‘authentic wilderness experience’;
•
Most participants agreed that Tourism Tasmania’s primary role in relation to marketing should be to get visitors to come to Tasmania by marketing the whole State and promoting the Tasmania brand;
CRADLE COAST AUTHORITY OCTOBER 2011
37
5.
T OURISM G OVERNANCE
5.1. INTR ODU C TI ON The following section provides an overview of the roles of each of the key stakeholders involved in the development of tourism within the region examined from a state, regional and local perspective.
5.2. SU MM ARY O F F IND I NGS The recommendations in the Regional Tourism Review: The Way Forward includes36: •
delivering regional and local tourism services in Tasmania to remove duplication,
The outcomes from both the industry consultation and operator surveys are also examined as they relate to each of the stakeholders.
improve efficiency and achieve economies from scale; •
A review of the Tasmanian tourism industry structure in 2010 found that35: •
There is a need for role clarity between the different tiers of organisation (RTOs, ZMGs, LTAs, Local Government etc);
•
There is a risk of overlap and duplication between different organisations with regards to promotional/ marketing activities and communications/ networking;
•
There is a risk of gaps in some key functions (infrastructure development, product development, skill development) that are not being adequately fulfilled;
•
Undergo structural reform to reduce the number of organisations involved in
Revisit funding arrangements to assess viability of aggregating larger pools of funds to a smaller number of effective and well resourced organisations;
•
Embrace the Destination Management Framework for managing regional tourism;
•
Identify new membership models to offer better value to operators; and,
•
Develop more structured and consistent two-way communications within the industry.
This informs the recommendations to review the tourism structures within the Cradle Coast region, as outlined below.
There may be a case for providing greater levels of funding to a fewer number of well resourced participants.
These findings form the background to Tourism Tasmania’s Regional Tourism Initiative,
CRADLE COAST AUTHORITY
The results of the industry survey indicate that the Cradle Coast Authority needs to
and the move to replace the five Zone Marketing Groups with four Regional Tourism
increase its links with the local tourism industry. This is of particularly importance of the
Organisations.
Authority is to assume the role of the Regional Tourism Organisation (RTO), as the intent from Tourism Tasmania is that the RTOs will be industry led. To improve its integration with the tourism industry, the Cradle Coast Authority should consider: •
Forming a Tourism Board, including some members from the local industry to direct the Authority’s tourism activities; and,
35
Regional Tourism Review: The Way Forward, KPMG 2010
38
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
36
KPMG, 2010
•
Moving to an industry membership model, to increase the direct interaction between the operators and the Authority.
VISITOR INFORMATION CENTRES
There are eight accredited VICs in the Cradle Coast region and two unaccredited: the Port Sorrell VIC that operates during summer and a VIC at Penguin. Seven of the
LOCAL TOURISM ASSOCIATIONS
accredited VICs are in the North West plus the two that are not accredited. The large
That there are in the order of 15 LTAs within the Cradle Coast region indicates that there
number of VICs indicate that there is a need to review the resources put into their
are opportunities for rationalisation, to increase the benefits gained from member
operation, and whether a centralised management, under the Regional Tourism
contributions. Rationalisation is also important for the relationship between the operators
Association, could provide better outcomes for the Cradle Coast region’s tourism industry.
and the Regional Tourism Organisation, due to the difficulty in communicating between so many industry groups. The Regional Tourism Review includes recommendations to: •
Undergo structural reform to reduce the number of organisations involved in delivering regional and local tourism services in Tasmania to remove duplication, improve efficiency and achieve economies of scale; and,
•
Revisit funding arrangements to assess viability of aggregating larger pools of funds to a smaller number of effective and well resourced organisations.
The Tourism Tasmania document defining the role of the RTOs states that one objective of the RTO is to increase the benefits derived from the resources given over to tourism by regional tourism organisations, local tourism associations, councils, marketing groups, chambers of commerce, individual operators, Tourism Tasmania and other agencies. The Regional Tourism Framework also states that for an RTO to be driven by the industry it is vital that the industry have input into the development and management of its regional marketing and development plans. The restructuring of the local tourism associations should reflect the need for both increasing the benefit from the contributions to regional tourism, and to provide clear channels of communication for the development of the region’s tourism strategies. It was suggested in the industry workshops that consideration be given to reorganising the LTAs to reflect industry sectors rather than locations.
Although there are some
benefits to this, such as sharing of innovation and best practice, it conflicts with the direction to embrace destination management included in both the Regional Tourism Review and the Tourism 21 strategy.
CRADLE COAST AUTHORITY OCTOBER 2011
39
The RTO category was included to give respondents the opportunity to distinguish
5.3. TOU R IS M RE SP ONS I BIL IT IES
between the Cradle Coast Authority and another RTO: that there was greater support for
In the business survey, respondents were asked to identify who should have primary
the Cradle Coast Authority than an RTO in all categories except international marketing
responsibility for the following activities in the management of tourism in the region, with
indicates a broad level of support for the Authority. In addition, if the Cradle Coast
the results shown in Table 15.
Authority assumes the role of the RTO, then the analysis of the combined data for these two categories indicates a strong support for a regional body undertaking intrastate
TABLE 15 DESTINATION MANAGEMENT- PRIMARY
marketing, product development, networking and communication, training, business
RESPONSIBILITIES
development and events.
Tourism Tasmania
Cradle Coast Authority
RTO
Local Government
LTA
Intrastate marketing
21%
30%
22%
7%
19%
responsibility of Councils. There was a view that Councils have some responsibilities in
Interstate marketing
58%
21%
12%
4%
5%
organising events, though the Cradle Coast Authority received a slightly higher number of
International marketing
86%
3%
8%
2%
2%
responses.
Product development
28%
29%
13%
14%
16%
21%
30%
21%
10%
19%
8%
13%
19%
29%
33%
26%
29%
16%
16%
13%
35%
34%
13%
14%
5%
development of the industry. It works with Tasmanian tourism businesses, associations
20%
24%
20%
23%
12%
and stakeholder groups to drive benefits for Tasmania from domestic and international
53%
23%
11%
5%
7%
Industry networking and communication Visitor information services Training Business development tools and advice Events management, development and marketing Visitor Markets and industry research
The industry respondents saw Visitor Information Services as the responsibility of the Local Tourism Associations, even though the Visitor Information Centres are generally the
5.4. TOU R IS M ORG AN IS AT ION S 5.4.1. TOURISM TASMANIA Tourism Tasmania is the government department responsible for the support and
tourism. It is part of the Tasmanian Government Department of Economic Development, Tourism and the Arts.
Source: Cradle Coast Tourism Business Survey, 2011.
As discussed in the previous section, the industry survey responses indicated that the These results indicate that the industry firmly believes that international and interstate marketing is the responsibility of Tourism Tasmania, and is a position that was also
industry sees the roles for Tourism Tasmania as: •
Interstate and international marketing;
indicates that local industry believes the Cradle Coast Authority should be responsible for
•
Product and business development; and,
marketing within the state. The survey also confirms Tourism Tasmania’s position as the
•
Visitor and industry research.
supported in the industry workshops conducted as part of this report. The survey also
provider of market and industry research for the State’s tourism industry, The survey also indicates that there is support for some training to be provided by Product development and business development roles were shared between Tourism
Tourism Tasmania, although there was marginally more support for the Cradle Coast
Tasmania and the Cradle Coast Authority: it is possible that the provider of development
Authority providing this service.
support may be related to the size and state-wide significance of the development in question, and both organisations have a role in this area.
40
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
INDUSTRY PERSPECTIVES
Tourism Tasmania was seen to have performed well in some areas, but several participants were frustrated by the frequent changes of direction over recent years. Others felt that Tourism Tasmania was too Hobart-centric: there was a perception that Tourism Tasmania needs to understand the region better.
CRADLE COAST AUTHORITY OCTOBER 2011
41
•
5.4.2. REGIONAL TOURISM
concept had been sold badly and implementation had been poor;
Tourism Tasmania is currently transitioning towards a regional governance structure based on four Regional Tourism Organisations, one of which covers an area analogous to the Cradle Coast Authority’s scope.
•
The ZMGs were widely considered to have favoured Hobart and Launceston at the expense of more remote regions;
This structure will replace the Zone Marketing
Groups, which are discussed below.
While some people accepted that the ZMGs were a good idea, most felt that the
•
A key problem of the ZMGs in the Cradle Coast region was that some destinations
In terms of the relationship to their region, Tourism Tasmania has outlined the following
were split between two or three different zones (the Cradle Mountain/ Central
requirement for the RTOs37:
Highlands/ Mole Creek area). The impression from King Island was that they were
•
Coordinating regional marketing, governance and industry development;
•
Facilitate collaboration between all regional tourism stakeholders, including
effectively overlooked by being subsumed into a larger region that was not necessarily representative of their area.
membership models; •
Have structured and regular two-way communication within the industry; and,
5.4.3. CRADLE COAST AUTHORITY
•
Play a key role in the development of an industry driven and strategic Regional
The Cradle Coast Authority is the regional authority working for nine councils within the
Tourism Plan, which must also consider effective visitor information provision across
North West and West Coast of Tasmania to help coordinate and resolve regional issues;
the region including both traditional and digital applications.
tourism is just one of the industries that the authority is responsible. The nine councils contribute to its annual budget and all the regional development activities are funded
Significantly for the Cradle Coast Authority, Tourism Tasmania also indicates that they will not support an additional layer of tourism governance, with the implication that the
through partnerships and funding agreements with other bodies. One member of the Cradle Coast Authority’s board is selected to represent the tourism industry.
Authority will assume the role of the RTO, or be replaced by a new body. The Authority’s role in tourism includes creating partnerships on a local, regional and ZONE MARKETING GROUPS
Zone marketing is a co-operative marketing program between Tourism Tasmania and the tourism industry. The Zone Marketing Groups (ZMG) are in the process of being phased out following a review in early 2010 and in future the marketing activity will be the responsibility of the each of the regional tourism organizations. There are two zone marketing groups operating in the Cradle Coast region: •
The North West Coast and King Island Zone
•
The Western Wilderness Zone
state basis and developing strategies to ensure the region reaches its full tourism potential. It also has a service agreement with Tourism Tasmania to deliver strategies and projects within the region, and partnership agreements the Commonwealth Government through the Sustainable Regions Program and the State Government through the Cradle Coast Partnership Agreement. The Board of Directors for the Cradle Coast Authority is comprised of eight business and community leaders appointed by representatives of the participating Councils. INDUSTRY PERSPECTIVES
The Cradle Coast Authority was generally regarded highly by interviewees and was seen When raised during the consultation with the region’s tourism industry, the following
as a role model for other regions within the Tasmania. Most of those consulted with in
observations were made:
forming this report felt that the Authority had performed well and had done an excellent job in building trust and respect and nurturing leadership in the tourism industry.
37
Tourism Tasmania: Regional Tourism. This is not a complete list of the expected RTO outcomes.
42
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
The structure of the Authority was viewed positively in the industry workshops and most
TABLE 16 CRADLE COAST AUTHORITY PERFORMANCE
felt that the organisation works well with local councils and LTAs. Several people felt that while the Authority performed well as project managers and dealt well with issues across
Very Satisfied
Satisfied
Neither
Unsatisfied
Very Unsatisfied
the region, there was a view that they could take a more strategic, leadership role for the industry.
Destination marketing
14%
29%
27%
18%
12%
Respondents to the business survey predominantly indicated they were neither satisfied
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%
Industry networking opportunities
13%
33%
35%
16%
3%
Access to business development tools
3%
31%
40%
24%
2%
Online & Social Social Media Communications
14%
27%
34%
14%
12%
Visitor and industry research
10%
23%
49%
11%
7%
nor unsatisfied with the performance of the Cradle Coast Authority, as shown in Table 16: The only aspect where Neither did not receive the most responses was for Destination Marketing, which received 43% as satisfied or very satisfied. The only aspect of the Authority’s work that received more negative than positive results was Industry Development. The high percentage of Neither results indicates that there may be a lack of awareness and/or engagement with CCA and their tourism initiatives. This indicates that although the attendees of the workshops with industry viewed the Authority positively, there may be a need to encouraged greater interaction with industry. The survey results also indicate that the industry is aware of the marketing initiatives
Source: Cradle Coast Tourism Business Survey, 2011.
undertaken by the Cradle Coast Authority, as shown in Figure. Only 17% of respondents indicated that they are not aware of the marketing undertaken in 2010-11.
FIGURE 28 CRADLE COAST AUTHORITY MARKETING AWARENESS
High level of awareness
39%
Moderate level of awareness
44%
Low level of awareness
17%
Source: Cradle Coast Tourism Business Survey, 2011.
CRADLE COAST AUTHORITY OCTOBER 2011
43
5.4.4. LOCAL GOVERNMENT There are nine Local Government municipalities that provide funding to the Cradle Coast Authority: •
Burnie City Council
•
Central Coast Council
•
Circular Head Council
•
Devonport Council
•
Kentish Council
•
King Island Council
•
Latrobe Council
•
Waratah-Wynyard Council
•
West Coast Council
satisfied and very satisfied results than unsatisfied and very unsatisfied was Event Management. TABLE 17 COUNCIL PERFORMANCE 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%
Source: Cradle Coast Tourism Business Survey, 2011.
The Neither responses were either highest or second highest in all five categories included in Table 17, which indicates a lack of awareness or engagement with the
INDUSTRY PERSPECTIVES
There were wide-ranging views on the effectiveness and performance of the Councils’ support to the tourism industry. Most participants in the workshops felt that Councils had a
activities undertaken by Council FIGURE 29 COUNCIL MARKETING AWARENESS
key role to play in encouraging and delivering tourism investment because of the benefits that tourism delivers to the wider community. Council investment was also seen as
High level of awareness
36%
important because they have the capacity to coordinate marketing on behalf of smaller operators who may not have the funds to do so individually, and it was suggested that
Moderate level of awareness
42%
Council could increase this support of the industry. There was also a view from the workshops that there is a role for Council in working with
Low level of awareness
22%
the Local Tourism Associations to ensure that they are operating strategically. The Tourism Business Survey results indicated that the operators are generally not satisfied with the performance of the Councils, particularly with regard to destination marketing, industry development and Online and Social Media Communications. Also, as discussed in section 5.3, industry did not see these aspects of the industry as the responsibility of Councils. The only aspect of Council tourism activity that received more
44
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
Source: Cradle Coast Tourism Business Survey, 2011.
Businesses indicated they had a moderate level of awareness (42%) of the tourism marketing and development activities undertaken by Local Councils in 2010/11. A further 36% of businesses identified that they had a high level of awareness of the marketing activities undertaken by Local Councils.
TABLE 18 LOCAL TOURISM ASSOCIATION PERFORMANCE
5.4.5. LOCAL TOURISM ASSOCIATIONS The Cradle Coast region has at least 15 Local Tourism Associations, in a variety of forms
Very Satisfied Satisfied
Satisfied
Neither
Unsatisfied
Very Unsatisfied
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%
and interests. The more prominent ones include: •
Burnie Tourism Association
•
Caves to Canyon Tourism Association
•
Circular Head Tourism Association
•
Cradle Mountain Tourism Association
Industry networking functions
12%
31%
33%
14%
10%
•
Devonport Tourist Association
Familiarisation Familiarisation tours
15%
19%
35%
13%
19%
•
Kentish Council Tourism Committee
Research
2%
21%
36%
7%
33%
•
King Island Tourism Association
•
Latrobe and Port Sorell Tourism Association
•
Project Queenstown
•
Waratah Wynyard Tourism Advisory Group
Source: Cradle Coast Tourism Business Survey, 2011.
Local visitor guide or map and Visitor servicing received a high level of satisfaction among businesses that responded to the survey: over half were satisfied or very satisfied with these activities. Almost half were also positive about their LTA’s public relations and communications. The highest dissatisfaction of businesses was in relation to the Research activity
Approximately 68% of respondents to the Tourism Business Survey indicated that they were a member of a Local Tourism Association (LTA).
The most common LTAs
highlighted were Circular Head Tourism Association, Latrobe & Pt Sorell Tourism Association and the Burnie Tourism Association.
undertaken by LTAs, with 33% indicating they were very unsatisfied.
Only 7% of
respondents indicated that they thought that this activity was a responsibility for their LTA, as shown in Table 15. One suggestion from the workshops is that LTAs for product types should be considered. This has been successful on Victoria’s Mornington Peninsula, but the distances involved
INDUSTRY PERSPECTIVES
are much less than in the Cradle Coast region.
Similar to local councils, workshop attendees had widely divergent views on the
business operators from places as far apart as Strahan, Smithton and Devonport would
performance of various LTAs, which was seen to be determined by their leadership. One
suggest that destination based organisations may be more successful.
The difficulty in regularly attracting
of the recurring observations from the meeting was that there were far too many LTAs in existence: as noted above, there are about 15 operating in the Cradle Coast region, indicating the need for consolidation. The industry survey asked respondents to rate the performance of their LTA in six areas. The results indicate that that most are generally satisfied with their LTA, as only Research received more negative than positive responses, as per Table 18.
CRADLE COAST AUTHORITY OCTOBER 2011
45
5.4.6. VISITOR INFORMATION CENTRES There are eight accredited Visitor Information Centres (VICs) located in the Cradle Coast region, out of a total of 20 in the State.
Six of the North West centres are funded and
managed by Council; the Stanley VIC is funded through Council, but managed by the Circular Head Tourism Association. The VICs in the region are: •
Wynyard Visitor Information Centre- Waratah-Wynyard Council
•
Sheffield Visitor Information Centre, Sheffield- Kentish Council
•
Latrobe Visitor Centre, Latrobe Council
•
Makers Workshop, Burnie
•
Ulverstone Visitor Information Centre, Ulverstone
•
Devonport Visitor Information Centre, Devonport- Devonport Council
•
Stanley Visitor Information Centre – Circular Head
•
West Coast Visitor Centre, Strahan
In addition to these centres, a VIC operates at Port Sorell during the summer months. Given the number of VICs in the region, and the cost to councils associated with them, it was suggested that a regional review be undertaken. The review would include analysis and make recommendations on whether the maximum benefit for the level of funding is being realised.
46
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
6. I SSUES AND
O PPORTUNITIES
6.1. INTR ODU C TI ON
The towns and cities along the Bass Strait in the North West may develop product and experiences based on their sea-side locations. Opportunities for marine activities such as
The purpose of this section is to summarise the issues and opportunities for tourism in the
boating, fishing, and exploring the islands off Smithton and Stanley may drive increased
Cradle Coast region, to inform the future regional tourism strategies. The issues and
tourism.
opportunities for further consideration are: 6.2.2. PRODUCT INVESTMENT AND REFRESH
•
Product Development
•
Seasonality
•
Regional Accessibility
•
Rationalisation of tourism organisations and services
Business Survey include:
•
Regional marketing
•
Visitor Demand
•
Expense of marketing
•
Seasonality
The development of new products and the reinvigoration of existing ones can lead to
•
Obtaining finance
increased length of stay and repeat visitation. Analysis of investment and new
•
Government regulation
6.2. PRODU C T DEVEL OP MENT
The available data and responses from the survey indicate that the region’s tourism businesses are not investing in new and renewed products. The barriers to business growth that over 10% of respondents identified in the Tourism
developments in the region indicates that the low levels of investment, particularly in some destinations. 6.2.1. NEW AND EMERGING PRODUCT There is a range of products either commencing development, or being considered for development, the most significant is the golf course at Cape Wickham on King Island. Another proposal that may drive further investment and development in the region is the tourist road in the Tarkine. There is also an opportunity to develop tourism product linked to the seafood industry based in Strahan, which does not currently offer any other local produce. The uniqueness of Queenstown, which has the character of a frontier town, may also be promoted and developed to attract increased visitation.
Further investigation of these barriers to business growth and their impact on investment decisions is required before strategies to facilitate investment can be recommended.
6.3. SEA S ONAL IT Y Seasonality was regularly identified as having a significant impact on business viability: this is supported by the data included in section 2.4.6, and is an issue for tourism across the State. There are two general courses of action that can be undertaken to address this issue: either market the region as a winter experience or review business models to minimise the financial impact of the winter slow period. There are tourism destinations around the world that close during their off season, such as some Mediterranean destinations in winter and some of the European Alpine resorts in
CRADLE COAST AUTHORITY OCTOBER 2011
47
summer. Some businesses from Strahan are considering closing for the winter months, but the concern for businesses is the losing staff due to the periods of no employment. Finding and retaining quality staff in remote tourism businesses was also indentified as an issue facing the region’s tourism industry.
6.5.1. LOCAL TOURISM ASSOCIATIONS Tourism Tasmania’s Regional Tourism Initiative requires RTOs to have strong links to their region’s industry, including regular communication, involvement in strategic planning, and board representation. Given the size of the Cradle Coast region, and the number of
A targeted events strategy should be considered to drive increased visitation during
tourism operators, this would be a difficult undertaking without a streamlined and co-
winter.
ordinated set of Local Tourism Associations. The current situation, with approximately 15 LTAs running in a variety of modes, also needs to be considered in terms of the Regional
6.4. REG ION AL AC C ES S I BIL ITY
Tourism Initiative’s efficient use of resources goal.
The change towards shorter but higher yielding trips to Tasmania has significant
Rather than selecting which LTAs will be supported by and represented within the RTO,
implications for the West Coast in particular, as its remoteness tends to restrict visitation
implementing a set of criteria may effective, using Tourism Tasmania’s Regional Tourism
to those touring the State over longer periods. It is approximately 4 hours drive from
Initiative as a model. By establishing goals for LTAs to achieve, which may include multi-
Strahan to either Launceston or Hobart, which indicates that it is not a short stay
disciplinary industry input, geographical alignment, level of funding contribution and
destination.
Council support, the region’s tourism industry will be responsible for selecting and/or
Suggestions made during consultation to address the impact of the accessibility to
creating the LTAs that will work with the RTO.
Strahan, and increase the number of visitors include:
In addition the Cradle Coast region’s tourism industry is dominated by owner operated
•
Scheduling regular flights from Melbourne to Strahan, with a stopover in Wynyard;
businesses. Many of these businesses have little time to be actively involved with local
•
Change the Spirit of Tasmania business model to the aim being economic benefit to
planned at meetings.
the State rather than direct profit: this may lead to reduced fares for people to bring
deliver to actions, which can only be achieved with fewer better resourced LTA’s than
their car to Tasmania and then tour the North West and West Coast;
many ineffective low resourced LTAs.
tourism associations and when they are have little capacity to action items discussed and
•
This highlights the importance for LTA’s to have resources to
Promote Tasmania as a touring destination, highlighting the driving experiences on offer, particularly on the West Coast.
6.5.2. VISITOR INFORMATION CENTRES There are eight all year round VICs in the region, seven within the North West plus the
6.5. RAT ION AL I SA TI ON OF TOU R I SM ORG AN IS AT I ONS A ND SER VIC E S
West Coast Centre in Strahan. In addition, a facility operates in Port Sorrell between November and April each year.
One of the underlying objectives of Tourism Tasmania’s Regional Initiative is to make the
The main point of the review of VICs is to determine the level of funding contributed by
most of the resources applied to tourism, including regional tourism organisations, local
Council for their operation, and whether this funding could be used for more benefit to the
tourism associations, Councils, marketing groups, chambers of commerce, individual
region’s tourism industry. The implication is that VICs would come under the auspices of
operators, Tourism Tasmania and other agencies. The three main considerations for this
the RTO, and Councils would provide funding on the basis of service agreements.
rationalisation are Local Tourism Associations, Visitor Information Centres, and the
A review of visitor information services across the Cradle Coast region is needed to
general consideration of funding efficiency.
identify areas of visitor information services to focus effort and resources on.
48
STATE OF THE REGION TOU RI SM I N TH E CRADLE COAST
6.5.3. OTHER EFFICIENCY MEASURES A review of funding and resources allocated to tourism by Councils, LTAs and other bodies to determine efficiencies and duplication may realise greater benefits to tourism in
6.7. REC OMMENDED AC TI ONS
the region from these allocations. Clear definitions of responsibilities between Tourism
There are a number of areas which should be the focus of action for the Cradle Coast
Tasmania, the RTO, LTAs and Councils will also enable a reduction in duplication,
Authority, which will address the issues and opportunities identified in this report:
improving the value realised from tourism resources.
•
Agreement on a Governance roles and responsibilities. This will ensure that there is
Areas for consideration include product and industry development services, Council
no overlap in responsibilities by Governance organisations and that there are clear
tourism officers, marketing, publications and networking.
roles for the RTO, LTAs Local Government and Tourism Tasmania.
6.6. REG ION AL MAR KET I NG
•
Tourism Product Development and Opportunities Plan: Plan A study which takes the product audit of this report and identifies investment opportunities across the region
The findings of the market assessment, product and experience audits indicate that there
targeted to gaps in provision and demand and preferences of future visitor markets.
are distinct regions within the Cradle Coast, and the RTO needs to consider how
This will ensure that product and experiences in the region have currency for future
marketing campaigns are organised to maximise the benefit to the region’s tourism
markets.
industry.
•
Marketing, Communications and Product Product Awareness Plan. Plan. There is need for a plan
The market assessment and product and experience audits both highlight the differences
for Cradle Coast region which clearly identifies key market segments for future
between the West Coast and the North West, in terms of both product offer and visitor
focus, media which should be used to target markets and product and destinations
markets.
which should be the focus of external marketing. This plan should also support and promote the recommendations of the Tourism Product Development and
The questions to be resolved in reviewing the approach to regional marketing area:
Opportunities Plan.
1.
Can the marketing be organised by experience rather than location?
2.
The size, and amount of driving required to travel through the Cradle Coast
changed significantly in the past 10 years and it is essential that resources and effort
region should also be taken into account if the region is to be marketed as a
are linked to demand and visitor needs. A review of the provision of online visitor
whole – will it make sense to prospective tourists?
information services, walk in VICs, collateral and the need for smart phone based
3.
What does it mean for each region, and the value it can obtain with its
•
Review of visitor information services:
Consumption of visitor information has
information should be considered.
marketing funding, if marketed separately? 4.
Can different regions be promoted in different markets?
5.
Which region does Cradle Mountain best align with?
6.
Does King Island successfully align with the Cradle Coast region and the North West, or would it be better off being marketed as a separate entity?
CRADLE COAST AUTHORITY OCTOBER 2011
49
APPENDIX A TO URISM B USINESS SURVEY RESULTS
INTRODUCTION
SURVEY SAMPLE
This report provides an assessment of the performance of the tourism industry in the Cradle
Urban Enterprise received full responses from 118 of the approximately 630 tourism
Coast region during the 2010/11 Financial Year. This assessment is based on an internet
businesses on the Cradle Coast Authority member database.
survey distributed to tourism operators in the Cradle Coast region between September and October 2011.
The following table provides a summary of the businesses that have responded to the Cradle Coast Tourism Business Survey by industry sectors in 2010/11.
The key indicators used to assess the performance of the tourism industry in the region include: •
Employment change;
•
Capital investment;
•
Marketing and promotion;
•
Visitor markets;
•
Online marketing;
•
Current issues and opportunities;
•
Regional approach to Tourism Destination Management.
METHODOLOGY
The link to the internet based Tourism Business Survey was sent to the businesses included on the Cradle Coast Authority’s tourism database. Survey Monkey was used to collect the responses to the survey.
50
STATE OF THE
REGION
TOU RI SM I N TH E CRADLE COAST
Business Sector
No. of Businesses
% Responses
Accommodation
60
51%
Attractions
16
14%
Antiques/Galleries/Art & Craft
9
8%
Golf
1
1%
Restaurants
6
5%
Tours & Activities
8
7%
Events
4
3%
Other
14
12%
Total
118
100%
BUSINESS LOCATIONS
105 Respondents indicated where their businesses are located, places with 5 or more
Q: CO MPARED WITH THE FINANCIAL YEAR 2009/10, HAS EMPLOYMENT
responses were:
INCREASED, DECREASED OR REMAINED THE SAME IN 2010/11? Location
Responses
Strahan
11
Latrobe
9
Devonport
8
Stanley Stanley
7
Burnie
7
Wynyard
6
Sheffield
6
Cradle Mountain
5
Smithton
5
Increased 18% Decreased 22%
Remained the Same 60%
60% of businesses indicated that employment has remained the same in 2010/11 when compared to 2009/10. More businesses indicated that they had decreased employment than EMPLOYMENT
increased: 18% of businesses indicated that employment has increased compared to 22% decreased.
Q: HOW MANY PEOPLE WERE EMPLOYED BY YOUR BUSINESS ON 1ST OCTOBER 2011?
On average businesses employed:
Q: DO YOU EXPECT THE NUMBER OF PEOPLE YOU EMPLOY TO INCREASE, DECREASE OF REMAIN THE SAME OVER THE FINANCIAL YEAR 2011/12?
The large majority (74%) businesses in Cradle Coast region expected employment to •
2.9 Full time staff
•
2.3 Part time staff
•
3.9 Casual staff
increase over the 2011/12 Financial Year.
Increased 15%
Decreased 11%
Remained the Same 74%
CRADLE COAST AUTHORITY OCTOBER 2011
51
CAPITAL INVESTMENT Q: IN DOLLAR TERMS, WHAT CAPITAL INVESTMENT DID YOU MAKE IN
Q: IN DOLLAR TERMS, WHAT CAPITAL INVESTMENT DO YOU EXPECT TO
YOUR BUSINESS IN THE FINANCIAL YEAR 2010/11?
MAKE IN YOUR BUSINESS FOR THE FINANCIAL YEAR 2011/12?
In response to the question regarding capital investment in 2010/1159 businesses indicated
Only 50 businesses indicated that they were expecting to make investments in 2011/12, with
that they had made a capital investment in 2010/11, at a total of $2.57 million. The average
an estimated total investment of $2.52 million, a marginal reduction. The most noticeable
investment of those 59 businesses was $43,500. If all 120 respondents to this question are
difference from 2010/11 is that fewer businesses are expecting to undertake renovations, but
taken into account, the average drops to $21,400. Only 10% of the responding businesses
the average investment is expected to much higher.
sought building approvals in 2010/11.
Fittings and Furnishings and Equipment/Office Supplies were the most frequently expected
Fittings and Furnishings and Equipment/Office Supplies were the most frequently reported
types of investment, and Renovations and Extensions accounted for the highest value, in line
types of investment, while New Buildings had the highest reported average investment.
with 2010/11 results.
Renovations/Extensions received the highest total investment, at $897,500.
Investment Type Investment Type
No. of Responses
Average Investment per Business
Total Investment
New Buildings
5
$108,046
$540,230
Renovations/Extensions Renovations/Extensions
27
Fittings/Furnishings
35
$7,839
$244,210
31
$7,751
$217,440
Equipment/Office Supplies
36
$4,440
$155,406
26
Vehicles/Boats
11
OVERALL
STATE OF THE
59
REGION
TOU RI SM I N TH E CRADLE COAST
$10,604 $27,100 $43,500
Average Investment per Business
Total Investment
New Buildings
7
$93,333
$560,000
Renovations/Extensions Renovations/Extensions
18
$54,889
$988,000
Fittings/Furnishings
26
$9,318
$206,600
Landscaping/Gardening
23
$7,423
$163,400
Equipment/Office Supplies
26
$4,667
$112,450
Machinery/Plant
19
$12,898
$245,060
Vehicles/Boats
5
$61,000
$244,000
OVERALL
50
$50,400
$2.52m
$897,500
Landscaping/Gardening
Machinery/Plant
52
$33,241
No. of Responses
$243,950 $271,500 $2.57m
MARKETING AND PROMOTION Q: WHAT DID YOU SPEND ON MARKETING AND PROMOTION OF YOUR
Q: IN REGARDS TO YOUR CURRENT ONLINE PRESENCE AND ACTIVITY,
BUSINESS FOR THE 2010/11 PERIOD?
PLEASE
INDICATE
In 2010/11, businesses spent on average of $9,987 on business marketing and promotion.
BUSINESS
WHICH
OF
THE
FOLLOWING
APPLIES
TO
YOUR
Q: WHAT DO YOU EXPECT TO SPEND ON MARKETING AND PROMOTION OF YOUR BUSINESS FOR THE 2011/12 PERIOD?
in 2011/12.
Online booking system
35%
33%
Q: ON A RATING SCALE FROM 1 TO 3, WHAT MARKETING ACTIVITIES DO YOU CONTRIBUTE YOUR MARKETING FUNDS TO?
Highest Spend
2nd Highest Spend
Tourism Tasmania Cooperative Marketing campaigns
3rd Highest Spend
33%
Zone Marketing Cooperative Marketing Packages
15%
Radio
14%
24%
18% 14%
59%
Website
Businesses expected to spend on average $10,905 per business on marketing and promotion
Blogging
4%
6%
YouTube
7%
12%
14%
60% of businesses had their own website or were represented in other websites in 2010/11. A further 68% of businesses participated in 'Online booking system' (35%) and 'Facebook'
15%
(33%) online activities. Online
11%
Visitor Centre brochure fees
10%
Television
10%
22% 13%
21% 13%
13%
Advertisement in Zone Holiday Planner/ Visitor Guide Local Tourism Association Marketing Campaigns
Cooperative marketing campaigns were the two most frequently cited marketing activity attracting the highest spend. Of note, after Tourism Tasmania cooperative campaigns, online marketing received the next highest combined responses.
CRADLE COAST AUTHORITY OCTOBER 2011
53
VISITOR MARKETS Q: OF YOUR CUSTOMER BASE, PLEASE INDICATE A "BEST ESTIMATE" OF
Q: AS A PERCENTAGE, PLEASE ESTIMATE WHAT PROPORTION OF YOUR CUSTOMERS COME FROM OVERSEAS.
THE PERCENTAGE OF YOUR CUSTOMERS WHO YOU THINK ARE VISITORS
Businesses estimated that approximately 12% of customers to the businesses in the Cradle
TO THE CRADLE COAST?).
Coast region were from overseas. Businesses were asked to provide a ‘best estimate’ of the proportion of customers who they believed were visitors to the Cradle Coast region in 2010/11. In 2010/11, on average 64% of customers were visitors to the Cradle Coast region.
Q:
RANK
THE
IMPORTANT
TOP
5
TO YOUR
INTERNATIONAL
MARKETS
WHICH
ARE
MOST
BUSINESS. (1 BEING THE MOST IMPORTANT, 5
REPRESENTING LEAST IMPORTANCE) Q: AS A PERCENTAGE, PLEASE ESTIMATE THE PROPORTION OF YOUR INTERSTATE CUSTO MERS FOR THE FOLLOWING STATES:
The ranking of important overseas markets, from 1 for most to 5 to least important, indicates that the UK, New Zealand, USA and Germany are the most important.
United Kingdom
ACT/NT 6% WA 8% SA 9%
New Zealand USA Germany
VIC 39%
Other Europe
Votes
Singapore
1
China
2
Other Asia
QLD 18%
Hong Kong
3
Japan
4
Netherlands
5
France
NSW 21%
India Malaysia Other 0
39% of customers to businesses in the Cradle Coast region came from Victoria. This was followed by NSW (21%) and QLD (18%).
54
STATE OF THE
REGION
TOU RI SM I N TH E CRADLE COAST
10
20
30
40
50
60
Q: HAS THE NUMBER OF INTERNATIONAL, INTERSTATE AND
Q: DO YOU EXPECT THE NUMBER OF INTERNATIONAL, INTERSTATE AND
INTRASTATE CUSTO MERS INCREASED, DECREASED O R REMAINED THE
INTRASTATE CUSTO MERS TO INCREASE, DECREASE OR REMAIN THE
SAME OVER THE PAST 5 YEARS?
SAME OVER THE NEXT 5 YEARS?
Increased
Remained the same
International
36%
Interstate
40%
Intrastrate
49%
36%
19%
26%
Decreased
29%
41%
Increase
Remain the same
Intrastrate
46%
Interstate
47%
Decrease
46%
36%
7%
17%
25% International
30%
26%
44%
Half of businesses identified that Intrastate visitation had increased over the past 5 years. 41% of businesses believed that Interstate visitation had decreased, while a further 40% believed visitation had increased over the past 5 years in the Cradle Coast region. The majority of businesses identified that international visitation had either increased or remained the same.
The large majority of businesses believed intrastate visitation would either increase or remain the same over the next 5 years. 47% of businesses in the Cradle Coast region believed that Interstate visitation would increase over the next 5 years. 44% of businesses believed that international visitation would decrease in the next 5 years.
CRADLE COAST AUTHORITY OCTOBER 2011
55
INCOME
BARRIERS AND CONSTRAINTS
Q; WHAT IS YOUR ESTIMATE FOR THE CHANGE IN GROSS BUSINESS
Q: WHAT DO YOU CONSIDER TO BE THE BIGGEST BARRIER TO GROWING
INCOME (TURNOVER) FOR THE FINANCIAL YEAR 2011/12 COMPARED TO
YOUR BUSINESS?
THE FINANCIAL YEAR 2010/11?
21%
Visitor demand 31% or more - Increase
7% Other
21% - 30% - Increase
5%
11% - 20% - Increase
The expense of marketing campaigns
12% 24%
1% - 10% - Increase
16%
Obtaining finance
1% - 10% - Decrease
16%
Government regulation
21% - 30% - Decrease 31% or more - Decrease
8%
8%
14% 10% 9%
Labour costs Lack of or poor marketing and promotion
4%
15%
Seasonality issues
No Change
11% - 20% - Decrease
16%
6% 4%
Attracting quality staff
2%
Access constraints
2%
Almost half of businesses in the Cradle Coast region estimated that their gross business income would increase in 2011/12, with over one-third of businesses expecting an increase in
Obtaining a planning permit
1%
income between 1% and 20%. 36% of businesses expected their gross income to decrease in the 2011/12 Financial Year,
'Visitor demand' was the most significant barrier in business growth in 2010/11, followed by
with 24% of businesses expecting a decrease in income between 1% and 20%.
high marketing campaigns expense and seasonality issues. A further 16% of businesses experienced 'Other' barriers in business growth, with the high Australian Dollar, time constraints, government planning issues and taxation noted as issues.
56
STATE OF THE
REGION
TOU RI SM I N TH E CRADLE COAST
Q: WHAT DO YO U BELIEVE IS THE KEY ISSUE CO NSTRAINING TO URISM
TOURISM GOVERNANCE
GROWTH IN THE CRADLE COAST REGION? Q: HOW WELL ARE YOU AWARE OF THE TOURISM MARKETING AND DEVELOPMENT ACTIVITIES UNDERTAKEN BY THE CRADLE COAST AUTHORITY?
Seasonality
20%
Other
20%
Access to/from the region
High level of awareness
39%
Moderate level of awareness
44%
14% 10%
Lack of investment
5%
Poor quality visitor services
5%
Lack of quality product
5%
Skill shortages
development activities undertaken by the Cradle Coast Authority in 2010/11.
15%
Lack of or poor marketing and promotion The expense of marketing campiagns
Poor quality infrastructure
Businesses were asked to identify their level of awareness for the tourism marketing and
Low level of awareness
17%
44% of businesses had a moderate level of awareness of the tourism marketing and
4%
development activities undertaken by the Cradle Coast Authority in 2010/11, followed by 39% of businesses that had a high level of awareness.
1%
20% of businesses identify 'Seasonality' to be the biggest constraint in tourism growth in the Cradle Coast region, followed by 'Access to/from the region' and 'Lack of or poor marketing and promotion'. A further 20% identified 'Other' issues such as high Australian Dollar, lack of events and activities and lack of high yield visitors
CRADLE COAST AUTHORITY OCTOBER 2011
57
Q: HOW WOULD YOU RATE THE PERFORMANCE OF THE CRADLE COAST
Q: HOW WOULD YOU RATE THE PERFORMANCE OF YOUR LTA IN
AUTHORITY IN REGARDS TO THE FOLLOWING?
REGARDS TO THE FOLLOWING?
Businesses were asked to rate the performance of the Cradle Coast Authority in regards to
Nearly 70% of businesses were members of a Local Tourism Association (LTA) in 2010/11.
the following activities in 2010/11.
Some of the most common LTAs were Circular Head Tourism LTA, Latrobe & Pt Sorell Tourism Association and the Burnie Tourism Association. Very Satisfied
S’fied
Neither
Uns’f Uns’fied ’fied
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 Tourism strategy development
11%
30%
38%
11%
11%
Industry networking opportunities
13%
33%
35%
16%
3%
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%
Very Unsatisfied
'Destination marketing' and 'Online & Social Media Communication' activities undertaken by the Cradle Coast Authority received the highest level of satisfaction among businesses that
Businesses were mostly very unsatisfied with 'Industry development' activities undertaken by the Cradle Coast Authority in 2010/11.
STATE OF THE
to the following activities: Very Satisfied
Satisfied
Neither
Unsatisfied
Very Unsatisfied
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%
'Local visitor guide or map' and 'Visitor servicing' received a relatively high level of satisfaction among businesses that responded the survey in the Cradle Coast region. The majority of businesses felt that the 'Research' activity undertaken by the Local Tourism
responded to the survey.
58
Businesses were asked to rate the performance of the Local Tourism Association in regards
REGION
TOU RI SM I N TH E CRADLE COAST
Association were very unsatisfied or neither satisfied nor unsatisfied.
Q: IDENTIFY WHICH ORGANISATION SHOULD HAVE PRIMARY
Q: HOW WOULD YOU RATE THE PERFORMANCE OF YOUR LOCAL
RESPONSIBILITY FOR THE FOLLOWING AREAS OF TO URISM DESTINATION
CO UNCIL IN REGARDS TO THE FOLLO WING?
MANAGEMENT
The primary responsibility identified by businesses for Local Tourism Association in terms of tourism destination management was 'Visitor Information services'.
Very Satisfied
S’fied
Neither
Uns’f Uns’fied ’fied
Very Unsatisfied
Destination Marketing
9%
22%
28%
11%
30%
Industry Development
3%
11%
34%
15%
36%
Online & Social Social Media Communications
10%
16%
26%
15%
33%
Industry Communication
10%
10%
36%
16%
28%
'Industry networking and communication'.
Event Management Management
5%
32%
27%
11%
24%
The primary responsibilities for Local Councils in respect to tourism destination management
Businesses identified that the primary responsibilities for Cradle Coast Authority were 'Business development tools and advice', 'Intrastate marketing' and 'Industry networking and communication'. The primary responsibilities for Regional Tourism Association were 'Intrastate marketing' and
were 'Visitor information services' and 'Events management, development and marketing'. 'Online & Social Media Communications' and 'Industry Communication' activities undertaken by Local Councils received the highest level of satisfaction among business who responded
The key responsibilities for Tourism Tasmania were 'International marketing', 'Interstate marketing' and 'Visitor markets and industry research'. LTA
Cradle Coast Authority
RTO RTO
Local Gov't
Tourism Tas
Intrastate marketing
19%
30%
22%
7%
21%
Interstate marketing
5%
21%
12%
4%
58%
International marketing
2%
3%
8%
2%
86%
Product development
16%
29%
13%
14%
28%
Industry networking and communication
19%
30%
21%
10%
21%
Visitor information services
33%
13%
19%
29%
8%
Training
13%
29%
16%
16%
26%
Business development tools and advice
5%
34%
13%
14%
35%
Events management, development and marketing
12%
24%
20%
23%
20%
Visitor Markets and industry research
7%
23%
11%
5%
53%
the survey in 2010/11, followed by 'Event Management'. The majority of businesses rated the 'Industry Development' activities undertaken by Local Councils to be 'neither satisfied nor unsatisfied', or 'very unsatisfied'. Q: HOW WELL ARE YOU AWARE OF THE TOURISM MARKETING AND DEVELOPMENT ACTIVITIES UNDERTAKEN BY YOUR LOCAL COUNCIL?
High level of awareness
36%
Moderate level of awareness Low level of awareness
42%
22%
42% of businesses had a moderate level of awareness of the tourism marketing and development activities undertaken by Local Councils in2010/11. A further 36% of businesses identified that they had a high level of awareness of the marketing activities undertaken by Local Councils.
CRADLE COAST AUTHORITY OCTOBER 2011
59
FURTHER COMMENTS The following section provides a summary of the key further comments made by tourism businesses in the Cradle Coast region. •
North West Tasmania is unique with its cool temperate climate and rich soils enabling gardens of outstanding quality and presents tourism opportunities with a garden/farm focus;
•
Experience marketing will need to be promoted through a state-wide strategy to the Interstate and International markets;
•
Tourism marketing and development should have a focus on young adventurous visitors who are higher yield markets, provided the focus is on wilderness and adventure;
•
Tourism marketing should focus on the Island itself rather than individual areas with fragmented marketing and development;
•
A firm direction would be needed for Tourism Tasmania before the Regional and Local Tourism Associations set their directions;
•
There are limited support for tourism businesses from Local Councils;
•
Increasing costs of ferry tickets would have an impact on Interstate and International visitation;
•
The primary
responsibility
for Tourism
Tasmania and Regional Tourism
Associations is to market and promote Tasmania as a whole.
60
STATE OF THE
REGION
TOU RI SM I N TH E CRADLE COAST