7. Investment Attraction
Vision: Victoria's range of tourism accommodation,
attractions and service infrastructure matches targeted current
and future market demand.
Objectives
- Ensure Victoria's tourism infrastructure and product maintains
a competitive edge.
- To be Australia's leading state in attracting and facilitating
investment in quality infrastructure.
- Develop tourism infrastructure in Victoria which is economically,
socially and environmentally sustainable.
BACKGROUND
Overview
Investment and planning is vital to ensure Victoria's tourism infrastructure
and product maintains a competitive edge, positioning the State
to capitalise on future market growth.
Melbourne is a city of change and growth. It is important to look
forward, beyond the Commonwealth Games in 2006, with a vision to
create a vibrant, exciting and globally competitive city capable
of sustaining massive change to its social, environmental and economic
fabric.
There are a number of plans and initiatives in place or under development
for Melbourne. These include The Metropolitan Strategy being developed
by the Department of Infrastructure, City of Melbourne's City Plan
2010 and Parks Victoria's Linking People and Spaces. Further detail
on these plans is provided in the Marketing Melbourne section of
this plan (Chapter 4).
Marketing alone will not sustain visitor growth. There is a need
to focus on staying one step ahead of the market by delivering supply
led infrastructure initiatives that induce and feed market growth,
creating an economically sustainable industry.
Quality investment in major infrastructure that builds on Victoria's
product strengths will attract more visitors to the city, creating
significant flow-on to the regions. In turn this will drive growth
in key regional infrastructure such as boutique resorts, significant
attractions and restaurants.
Regional Victoria is rich in heritage assets. Heritage towns such
as Beechworth are being rejuvenated to become tourist destinations
in their own right. Historic events such as the Eureka Stockade
and the Gold Rush have left us with a legacy of culturally significant
sites that must be capitalised on. Another important event, Ned
Kelly's last stand at Glenrowan, also holds potential as a regional
attraction.
Where Victoria has come from
Significant major investment of the past few years include:
- Museum of Victoria.
- Federation Square.
- Mt Hotham Airport.
- Melbourne Aquarium.
- Melbourne Airport Hilton.
- Park Hyatt.
- Moonah Links Golf Resort.
- The Heritage Golf & Country Club.
- Sebel Hotel.
These projects enhance and complement the most frequently visited
attractions that Victoria has to offer, including: the Crown Casino;
Melbourne Zoo; Phillip Island Nature Park; Sovereign Hill and
Blood on the Southern Cross; Rialto Towers Observation Deck; Puffing
Billy Steam Railway; Central Deborah Bendigo, Victoria's Open
Range Zoo at Werribee and Healesville Sanctuary.
Current Situation
Tourism Victoria commissioned KPMG Consulting in 1999 to undertake
an analysis of current infrastructure, possible gaps and potential
investment. Findings from this research are still relevant. A
key input into the identification of strategically significant
infrastructure gaps is a sound appreciation of what already exists.
Accommodation
There is a prevalence of accommodation stock rated three star and
below in Victoria, constituting about 70% of the total hotels/motels
and services apartments in the State. A large percentage of this
accommodation stock comprises bed and breakfast establishments and
cottages. However there is a lack of accommodation rated four star
and above in regional Victoria.
Victorian Accommodation Establishments by Star Grading
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Source: Survey of Tourist Accommodation, September 2001, Australian
Bureau of Statistics.
Accommodation information collected from hotels, motels, guest houses
and serviced apartments with 15 or more rooms/ units. Establishments
with less than 15 rooms are not taken into account.
A large percentage (approximately 23%) of Victoria's accommodation
stock is centralised in Melbourne and about half of the tourism
regions have less than 5% of accommodation infrastructure in the
State. The following regions hold the greatest share of the State's
regional accommodation stock:
- Great Ocean Road.
- Goldfields.
- Melbourne's Bays and Peninsulas.
- Legends Wine and High Country.
- Phillip Island Gippsland Discovery.
- Yarra Valley Dandenongs and the Ranges.
The majority of regional accommodation in Victoria is rated three
star or below and is less than 15 rooms per establishment, while
high quality accommodation stock is predominantly located in Melbourne's
Central Business District. Melbourne contains 83% of the State's
indulgent accommodation.
More than 50% of convention facilities in Victoria are located
in Melbourne. The Yarra Valley Dandenongs and the Ranges and Melbourne's
Bays and Peninsulas dominate regional Victoria with regard to convention
facilities with a 20% market share of establishments between them.
The majority of regional convention facilities are less than 100
rooms and rated three star or less.
Transport
Three regions - Melbourne, Melbourne's Bays and Peninsulas (including
Geelong) and Phillip Island Gippsland Discovery - enjoy the primary
concentration of transport infrastructure for tourism purposes.
There are a number of key tourist destinations with an absence
of regular, scheduled public transport links. Some of these destinations
include:
- Eildon.
- Marysville.
- Mansfield/Mount Buller.
- Beechworth and Rutherglen.
- Wilsons Promontory.
Airstrips are spread relatively evenly across the regions. The
Grampians region has 20% of Victoria's airstrips, followed by the
Murray Outback (15%) and then the Goldfields, Goulburn Murray Waters,
Legends Wine and High Country and Lakes and Wilderness with an 11%
share.
There is a need to develop Victoria's waterways as an alternative
transport corridor. However, there is a lack of passenger boats
and terminals with a carrying capacity in excess of 100 passengers
per trip.
Victoria has an excellent network of quality roads. Recent improvements
in Melbourne's network of freeways has helped to reduce travel times
from Melbourne to regional destinations. With a greater focus on
touring and key destinations over the next few years there will
be a need to ensure current and future road development continues
to meet local and visitor requirements.
Victoria's rail network will be boosted with plans to introduce
fast rail links to Geelong, Ballarat, Bendigo, and Latrobe Valley
and the reintroduction of rail services to Mildura.
Attractions
In terms of tourism infrastructure, regional Victoria's dominant
attractions include the coastline, natural environment and food
and wine. The prevalence of food/wine infrastructure is consistent
with Victoria's dominant product strengths and with current and
future demand. A lack of family based attractions in Victoria is
also indicated by the small percentage of Australia's theme parks
(3%) and tourist railways (2%). Victoria has a shortage of world
class, competitive tourist attractions, such as Sovereign Hill,
in regional Victoria.
Almost half of the State's tourist attraction infrastructure is
shared between Melbourne, Melbourne's Bays and Peninsulas, Phillip
Island Gippsland Discovery and the Yarra Valley Dandenongs and the
Ranges. The Great Ocean Road and Goldfields have comparatively less
tourist attraction infrastructure considering their proximity to
Melbourne and their popularity as tourist destinations and touring
routes.
For the increasingly important nature based segments there is a
general lack across Victoria of high quality nature/wildlife interpretive
facilities, which provide the visitor with an educational and highly
interactive experience.
Major investment attraction priorities 2002-2006
Priorities for the 2002-2006 period are largely influenced by issues
and strategies developed throughout this plan. Investment attraction
priorities are intricately linked to strategies formulated for product
development, marketing direction (both national and international),
visitor services, sporting and cultural events and business events.
In forming a hierarchy of priorities the following criteria has
been used:
- Identified gaps;
- Enhancement of economic, social and environmental benefits;
- Meets the expectations of intrastate, interstate and international
visitors (market demand);
- Consistency with key destinations and attractors outlined
in the Regional Strategy;
- Increases visitor satisfaction;
- Compatibility with Victoria's key product strengths, i.e.
food and wine, arts, theatre and cultural heritage, touring, nature
based, shopping, events, ski; and
- Matches developing market segment priorities.
The following specific priorities and strategies have been identified
using the above criteria. Development of these projects is subject
to detailed assessment, feasibility and investment analysis and
does not signify government support:
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Stakeholder Participation
By 2006 the tourism investment sector will need to be identified
as having a broader and more coordinated group of stakeholders,
all working toward the common goals of sustainable economic growth.
Tourism growth will be driven by the collaboration of all parties
with a vested interest. Tourism stakeholders include:
- The property sector.
- The construction sector.
- Financial institutions, investment houses and property trusts.
- Local Government.
- State Government.
- Federal Government.
- Cultural, heritage and special interest groups.
- The community.
Tourism Victoria will seek the cooperation of the Commonwealth
Government in facilitating Federal projects of State or regional
significance. Projects such as the redevelopment of Point Nepean
and Queenscliff will be progressed in a coordinated way.
Industry will work with government to raise the profile of tourism
investment as a major catalyst for jobs and economic growth. As
with other sectors such as manufacturing, the tourism sector will
actively seek government assistance to facilitate major investments.
Tourism projects represent excellent value to the Victorian community,
as they require comparatively modest assistance in contrast to other
sectors, yet provide significant returns in job creation and new
export earnings.
ISSUES
Learning from the Sydney Olympics, Tourism Victoria recognises
the need for city planners and event organisers to consider Melbourne
as an event performance platform. The ability to use city structures
and vistas to showcase events and celebrate State and National events
will be a major avenue of activity. This will have implications
on city planning and building design.
There is recognition that for Melbourne to embrace its waterways
and bays, both local and State government will need to work in a
more pro-active way to ensure delivery of improved recreational
and boating facilities. Particular focus needs to be placed on Williamstown,
St Kilda and Frankston as hubs for recreational boating infrastructure
and activity. Integration of the Docklands and Yarra Tourism precincts
will also require strategic planning.
There is a lack of significant tourism infrastructure to meet demand
in large parts of regional Victoria. In particular, there is a gap
in three star accommodation outside bed and breakfast accommodation,
four and five star accommodation/resorts, major convention facilities,
transport infrastructure in a number of regions and limited dispersal
of major attractions.
Thirty percent of land within the State is Crown Land, managed
by the Department of Natural Resources and Environment and Parks
Victoria. The industry recognises the problems faced by investors
in developing this land. The industry will focus on finding development
solutions for appropriate Crown Land development, as well as exploring
options for the development of freehold land adjacent to national
parks and other high value natural assets.
STRATEGIES
- The tourism industry will form closer ties with the property
and building industries, seeking to increase their knowledge and
understanding of tourism.
- Accommodation capacity will be closely monitored to ensure supply
meets current and future demand. The industry will seek investment
in additional hotel capacity in Melbourne and key regional destinations.
Additionally, ageing accommodation stock will be remodelled to cater
for the growth in backpacker markets.
- Acknowledging Victoria's relative weakness in globally competitive
family product, the industry will continue to seek investment in
high quality infrastructure with broad family appeal, including
a major branded theme park.
- Design principles will further consolidate the existing visitor
precincts and create opportunities for others, including the
conventions and exhibitions precinct on the south bank of the
Yarra, a contemporary arts precinct associated with Federation
Square, and an outdoor performing arts precinct along the north
bank. Tourism Victoria will work closely with the Docklands
Authority, City of Melbourne, Parks Victoria, property developers
and the industry to ensure Melbourne receives the full benefit
of this opportunity.
- Tourism Victoria will work with industry and other stakeholders
to facilitate the development of Melbourne's waterways and bays.
A particular emphasis will be placed on establishing Williamstown
as a nationally significant heritage destination and investment
in a scheduled bay ferry service.
- Melbourne Airport will continue to develop as Melbourne's gateway,
by adding more major accommodation and retail outlets, and introducing
substantial entertainment activity to secure its position as one
of the world's best airports.
Major Regional Projects
- Maximise visitation and yield on the Great Ocean Road through
the development of the Great Ocean Road Interpretive Centre at
Port Campbell.
- Use Gippsland's maritime history as a theme to create and interpret
a nationally significant heritage destination, focusing on development
at Port Albert, Port Welshpool and the Port of Sale.
- Tourism Victoria will assist with further development of heritage
transport opportunities. Stakeholders will work together to build
internationally marketable experiences, such as a regular heritage
train service between Melbourne and Echuca and a theatre night
train in Bendigo.
- Develop quality geothermal and mineral spa resorts in regional
Victoria;
- Industry and government to work on the development of a car
ferry between Cowes at Phillip Island, and Stony Point on the
Mornington Peninsula, to close the gap on the final link in the
Victorian Coastal Drive.
- Industry will continue to support investment in golf resorts,
confirming Victoria as Australia's best golfing destination, and
one of the top five golfing destinations in the world by 2006.
The support of golf development on the Mornington and Bellarine
Peninsulas and along the Bass Coast will ensure Victoria's Golf
Coast has a depth of product, which is unmatched in the world.
- Victoria will improve its competitiveness as a 'green' destination
by leveraging visitation through the development of appropriate,
sensitive and sustainable visitor infrastructure at, and adjacent
to, our key natural assets.
- The revision of the Regional Tourism Development Plans will
identify gaps and opportunities for investment to match current
and potential market demand.
- The growing trend for vineyard experiences is expected to increase
along with the cellar door sales and visits to wineries. Tourism
Victoria will produce a prospectus to encourage private sector
investment in accommodation at selected Victorian wineries. It
will continue to support quality investment in wine related tourism
and associated niche accommodation.
- There is a substantial opportunity to enhance the Goldfields
region by further restoration and interpretation of significant
heritage buildings and assets. Projects such as the Bendigo
Night Tram will help establish the region as Australia's Colonial
Capital.
- Quality outcomes will be the bottom line for all regional projects.
Victoria will be a world leader in applying high standards connecting
heritage and culture with built structure. Facilities such as
cultural assets and visitor interpretation centres will benefit
from the application of cutting edge design principles.
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