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TOURISM INVESTMENT GUIDELINES Your Guide to Tourism Investment in Victoria

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TOURISM INVESTMENT GUIDELINES Your Guide to Tourism Investment in Victoria TOURISM INVESTMENT GUIDELINES yOUR guide to tourism investment IN VIctoria tourismvictoria.com.au September 2008 Notice & Disclaimer Use of these Guidelines These Guidelines are intended to provide general guidance only and are not intended to provide financial advice or to be used as the basis for investment decisions. Specialist advice should be obtained regarding each project specific investment. While endeavours have been made to provide reliable and accurate information in the Guidelines based on data currently available, Tourism Victoria does not warrant the accuracy, currency nor completeness of the Guidelines or any information contained in the Guidelines. These Guidelines have been prepared solely for the purpose noted above and must not to be utilised or relied upon for any other purpose. Anyone using the Guidelines does so at their own risk and no responsibility is accepted by Tourism Victoria for any losses which might directly or indirectly result from any reliance on or use of the Guidelines. MESSaGE from ThE minister “ The Victorian Government is committed to working with local government, community groups and investors who wish to explore the exciting opportunities available in Victoria. ” Tourism is one of the fastest growing industries in Victoria, contributing $10.9 billion to our economy and employing 159,000 people. Under the 10 Year Tourism and Events Industry Strategy, the Victorian Government aims to grow tourism to an $18 billion industry, employing 225,000 people by 2016. To achieve this aim, we need to enhance our existing tourism infrastructure, attractions and events as well as facilitate the delivery of new projects that capitalise on the State’s tourism strengths. In an environment of strong international competition for the tourist dollar, partnerships between Government and industry, along with significant private sector investment, will be crucial for the ongoing success of tourism in this State. The new Tourism Investment Guidelines: Your Guide to Tourism Investment in Victoria contains planning and development guidelines for tourism projects and is intended to assist in advancing projects from concept through to business planning and statutory planning stages. The Victorian Government is committed to working with local government, community groups and investors who wish to explore the exciting opportunities available in Victoria. I strongly encourage you to take advantage of this booklet as you develop and enhance your tourism product. TIM HOLDING MP Minister for Tourism and Major Events tourism investment guidelines 1 Buckland Studio Retreat, Buckland Valley. Retreat, Buckland Studio 2 tourism investment guidelines contents Clyde Park Vineyard, Bannockburn. Vineyard, Park Clyde Photographer: Mark Chew. Mark Chew. Photographer: Message from the Minister 1 Introduction 4 Project Process Summary 6 Context For Tourism Investment 8 Market Identification 15 Concept Development 22 Project Approvals 32 Financing & Funding 48 Construction 56 Key Success Factors 58 Appendices 59 A. Summary – 10 Year Tourism & Events Industry Strategy 59 B. Sustainable Design 60 C. Key Organisations 61 Cover image: Brambuk, Grampians. Photographer: Bindi Cole – Snap Happy. tourism investment guidelines 3 INTRODUcTION Tourism is a global growth industry. Development and Investment in • Highlight local government’s central Walk. Ocean Great Apostles, Twelve In Victoria, tourism activity has grown Victoria’s Tourism Industry role in informing and assisting tourism dramatically over the last two decades. Victoria has a comprehensive approach investors. It is also the primary approval body for development and its role in these Victoria’s principal tourism products – to tourism development and investment. processes are described in this document. quality food and wine, events, natural The Victorian Government’s 10 Year Tourism • Provide advice on the special requirements attractions, cultural and heritage attractions, and Events Industry Strategy (October 2006) that come into play if you are interested in and retail diversity – have established a establishes a strategic platform for tourism investing in a project on public land. Mark Watson. Photographer: market identity and presence in Australia. growth over the next decade. • Describe the principal elements for Victoria’s key tourism industry objectives are: Victoria has a number of critical competitive business planning and obtaining funds advantages in relation to tourism options • Build upon existing strengths. to turn the concept into reality. and development – distinctive and consistent • Develop new strengths. • Finally, the realisation of your investment marketing, a wide range of lifestyle experiences, • Focus on long-term growth is likely to require skill in the management compactness and excellent accessibility opportunities. of the construction phase to ensure (internationally and throughout the State) • Strengthen the partnership between quality and cost control. to diverse destinations and venues that host Government and industry. major events for sport, culture and business. Tourism Victoria’s Role Assisting Tourism Investment Tourism is dynamic and competitive. Factors Tourism Victoria assists in the improvement This document aims to assist individuals affecting its performance and operation of Victoria’s tourism assets by identifying and organisations to become part of include technological change, market economically and socially sustainable the Victorian tourism industry and assist influences, societal influences (environment, infrastructure opportunities, which will its growth through investment and security, transportation, communications), maintain the State’s competitive edge. development of a tourism project. and consumer preferences and aspirations. Tourism Victoria’s strategic objectives include Understanding how such factors influence It is a resource and procedure guide that aims the expansion of private sector investment tourism choices made by consumers is to assist proponents with small to medium in tourism projects and the coordination essential for a successful and sustainable scale investment projects to conceptualise, of public infrastructure investment to gain tourism industry. The full spectrum of plan and develop their projects. optimum benefits for the tourism industry. factors that influence consumer choice The guidelines will: This is achieved by providing data, new – from global to local – also need to be • Provide key data on the recent concept and investment ideas, information considered together with how those factors performance of Victoria’s tourism and facilitation of project approvals to both affect different markets. industry and information on statistical the public and private sectors. resources available to help assess This guideline provides a broad overview market opportunities. of the tourism investment process in • Outline the vital considerations in Victoria. Opportunities and information identifying the market demand for an about specialised tourism areas such as wine investment idea, selection of a location tourism, golf tourism, nature-based tourism, and a site and creation of a spa and wellness tourism, alpine tourism, development concept. Aboriginal tourism and other sectors are • Identify the processes and pitfalls of also available at Tourism Victoria’s website obtaining development approval for www.tourismvictoria.com.au. Similarly, the concept. also available on this website are Regional Tourism Action Plans and Concept Proposals for Tourism Development in Victoria 2005, which identify opportunities and directions for future tourism investment throughout the State. 4 tourism investment guidelines tourism investment guidelines 5 projEcT procESS summaRy The following is a quick reference for developing new tourism projects from concept to reality. pROjEcT STaGE REqUIRED actions (ThE to-DO list) whaT needs to bE DONE Coming up with a ✓ Can a gap in tourism products be identified? If so, why? • Preliminary assessment of products Tourism Concept ✓ Does the concept have a ‘point of difference’? in selected locality. ✓ Identify the region/locality of the new tourism product. • Preliminary assessment of competition, quality and market strength. ✓ Identify the project team and specialist advisors. • Appoint architect, planner, and financial adviser as required. Market Assessment ✓ Collect and analyse data on the performance of the proposed • Market research, local and regional data type of tourism product in the selected region/locality. collection. ✓ Identify the market segments likely to utilise the new product/ • Research activities to include: discussions service. with Tourism Victoria, local government, local ✓ Are there opportunities in the region/locality to build on the and regional tourism bodies, and evaluation tourism strengths of the area or to form strategic alliances of national demographic and tourism data. with others? ✓ Assess consumer expenditure levels and preparedness to pay. ✓ Assess price competitiveness and marketing expenditure necessary to reach the market in both the start-up phase and once you are operational. ✓ Determine the risks to the projected market performance of the project. Site Selection ✓ Ensure that the site is accessible and appropriately exposed • Appoint planning advisor. to the target market. Ensure that the site is suitable to • Speak with local real estate agents. accommodate the intended use and all ancillary services • Discussions with local government and facilities.
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