YARRA RANGES TOURISM We market and sell the Yarra Valley and Dandenong Ranges to the visitor, driving economic growth. CEO REPORT October 2020 1 CEO REPORT HIGHLIGHTS October 2020 ● Minister for Tourism Business Roundtable ● State Opposition Roundtables ● Spring Garden Party delivers positive program of certainty, massive views, brand awareness and travel consideration ● Free 2020/21 ATDW subscription offer sign up extended to Dec 31 ● $11M Click for Vic campaign supports online growth in The Regional Pantry sales ● New Digital Visitor Information Kiosks on their way for Diamond Creek Adventure Playground, Puffing Billy Discovery Centre and Hurstbridge On The Horizon ● Continued Advocacy to get industry open in a safe way that is viable ● Importance of business support for mental health and mentoring ● Regional Pantry Online Christmas packs curation with Industry ● State Budget - Nov 2 KEY STRATEGY AREA: TOURISM CRISIS RESPONSE & RECOVERY MANAGE IMMEDIATE ACTIONS AND PLAN RECOVERY FOR COVID-19 1. Establish Special Sub Committee of Board to take a leadership role 2. Assess direct and indirect economic impacts to local business & employment and advocate to Government for appropriate support and funding 3. Keep up to date with latest updates 4. Communicate to Industry key information relating to the crisis 5. Identify key stimulus strategies when safe to do so and plan for recovery of region The Tourism Crisis Response and Recovery Sub Committee of the Board continues to address the issues and actions at hand to deal with COVID-19 continues and has met weekly from March to July and fortnightly since then. Communication to and from industry remains on of our top priorities, as the peak leadership organisation for the Yarra Valley and Dandenong Ranges tourism region during the COVID-19 crisis. This has been greatly supported by the openness of business to share the specific details impacting their businesses. Two significant advocacy Industry Roundtable sessions have taken place with: ● The Hon. Martin Pakula Minister for Tourism, Sport and Major Events The Hon Martin Pakula and Government colleagues, The Hon. James Merlino Deputy Premier and Member for Monbulk, Danielle Green Member for Yan Yean, Vicki Ward Member for Eltham. A copy of the Round Table can be viewed here. ● The Hon. David Hodgett Shadow Minister for Tourism, Sport & Major Events, Cindy McLeish Deputy Leader of the Liberal Party and Member for Eildon, The Hon. Ryan Smith Member for Warrandyte, Brad Battin Member for Gembrook, Bridget Vallence Member for Evelyn. A copy of the Round Table can be viewed here. A detailed list of issues raised by the a selection of Industry Leaders who participated in our recent CEO Roundtables was prepared with Industry asking questions of our representatives to ensure they were fully aware of the pain points being experienced on the ground by business. As follows: 3 Industry Feedback Summary Business support still urgently needed to keep industry afloat ● The key support business requires is cash. What additional support programs are being considered by the Government to support tourism regions forced to close for longer periods with more stringent restrictions in the Yarra Valley, Dandenong Ranges and Mornington Peninsula. This region is not classified as Regional yet is further away from the CBD in parts than Geelong and Macedon Ranges. It is just not a level playing field for our tourism regions. ● JobKeeper has been great for workers but not so good for Business Owners who are footing the bill of the administration of the scheme. Overall it is keeping people afloat, if the State Government’s Business Support Fund was consistent in its frequency this would make a huge difference. Implementing a regular State Business Payment or Utility support payment would bridge the gap of Jobkeeper in the Tourism Industry is desperately needed. We need to identify a way to keep business afloat over the next three months so the region does not loose key products and experiences, ensuring that business will actually be there to deliver an economic recovery. ● While grateful for programs like the Business Support Fund, much of this support has gone straight back out to pay state government licences, workcover (when our people aren’t even at work), fees and taxes or local government rates. While we remain unable to trade. ● Overall, the progress of Government and its Departments has been slow to respond when announcements are made. The tourism industry has been the one of the first industries impacted and will likely be the last to recover, there just seems to be a lack of urgency while business are withering on the vine. ● The Accommodation Support package seemed to be an example of something that could have benefited a lot of businesses but missed whole areas of of our visitor economy. There was no support for tour and transport operators, school camps or attrations who equally lost all of their bookings. The Government needs an improved understanding of the breadth and depth of sectors working within the Visitor Economy as it develops these programs. Hospitality, Tours, Events & Weddings ● The challenge of social distancing requirements leaves many businesses unviable. Will the Government work directly with some segments of the tourism industry to create site specific protocols. Eg, Puffing Billy, Healesville Sanctuary, Rochford Winery Concerts, large hospitality and wedding venues with outdoor spaces to apply sensible number capacities as has occurred in other States? No one want to do this in an unsafe manner. ● The Outdoor Dining & Entertainment Package will help us to provide new spaces outdoors but it won’t help to yield a break even product to the visitor with current caps on density quotients. 4 Industry Feedback Summary ● Density quotient need a sensible approach and revision to create viable tourism products for recovery: ○ One person per 4 sq/m rule ○ 10 people per indoor venue, not taking into considering the size or capacity of the venue, Eg a venue with indoor capacity of 300 can only have 10 people. ○ A cap of 50 people per outdoor dining venue, again not taking into consideration the size or capacity of the space to segment people. ● Cellar doors are not considered as an indoor space, after lockdown 1.0 we were told by the Government wine tasting had to be free and at a sit down table, can this also be reviewed to be more practical. The Yarra Valley largely charges for tastings under normal condition how can the Government tell us this now has to be free? What is proposed post lockdown 2.0. ● What is the Government’s strategy to stimulate the regional events industry? This segment is critically important and relies on many volunteer organisations who are walking away from the challenges of putting on these activities. Greater support is needed through the Regional Events Fund, which expired at June 2020. Tours and Transport ● Transport Sector in relation to buses not being permitted to operate given the 'Enclosed Space’ ruling. Public Transport is okay but restricted for private operators carrying tour patrons. ● The taxi industry has an exemption to this rule and can carry up to 10 passengers in a maxi taxi, but tour buses of a similar nature are unable to Operate. ● Household family bubbles must be reconsidered to count as ‘one’ within the ● group of 10 allowed within tour and transport guidelines. ○ Hot air balloons and tour buses should be able to operate Utilities Fixed Costs ● With the majority of businesses unable to open a viable product many have been crippled by Power and Gas contracts. Particularly those on fixed monthly charges. It is costing some businesses as much to remain closed due to so many fixed overheads. Can the Government negotiate with the energy sector about this issue? As was achieved with the Commercial Tenancy Relief Scheme. 5 Industry Feedback Summary Insurance ● Many businesses are continuing to be impacted by the State Governments Bushfire Management Overlay. Since this was recently tightened and is impacting a further 200,000+ properties across the state, securing building and business insurance is becoming increasingly cost prohibitive or unviable due to the conditions of partial cover only. Businesses may have never had a claim and yet can only get partial insurance. This is close to market failure, would the Government consider a State sponsored scheme to address this issue, like it did with the Fire Services Levy? Business Events & Conferencing ● Will the Government support bringing more of its Departments to regional locations for the coming period when restrictions are eased to support the Regional Business Events market which is critical to driving mid-week trade and employment of the region. Programs such as a the conferencing and business events pledge on the back of last Summer’s bushfires was a terrific example. Regional Tourism Review ● A lot of work, resource and ideas were contributed, the delays of this State Government led work have been an unnecessary distraction. Delaying Local Government support and providing industry with little confidence about the Government's long term support of regional tourism organisations. When will this proposed roadmap be released so we can reach an agreed approach between industry and government that is transparent. Skilled Workforce ● 482 Visa Temporary skill shortage workers are critical to the tourism industry’s sustainability but have not received any support from Government programs, leaving many Tourism operators carrying the responsibility of helping these important employees to ensure they will be part of our recovery solution. ● How can the Government support the growth and skills of the tourism labour force, given under business as usual one of the largest impediments to further growth is access to a skilled and reliable workforce. Registrations ● The cost of maintain vehicle registrations for large fleet continues to be a major issues.