Financial Impacts on the Tourism and Events Sector in the Gannawarra As a Result of the COVID-19 Pandemic

LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 051 Financial Impacts on the tourism and events sector in the Gannawarra as a result of the COVID-19 pandemic: Domestic Overnight Visitation in the Gannawarra is estimated at $42.2M. Murray Regional Tourism (MRT) research for the Swan Hill region (which includes Gannawarra Shire) shows a decline of 26.2%. This equates to a loss of approximately $11M. A Murray Regional Tourism report assumes “a loss of one job per $100,000 visitor expenditure loss”. The estimated loss of $11M for the Swan Hill region equates to a loss of around 110 jobs. The Cohuna Waterfront Holiday Park reported a 40% reduction in the occupancy rate during the pandemic and this was similar across many of the accommodation providers. A number of the accommodation and hospitality providers operating in small regional towns were not eligible for business support packages and received no financial assistance from COVID-19 initiatives. A large number of events were cancelled across the Gannawarra because of COVID- 19 restrictions. Cancellation of these events reflects a loss of around $850,000. Ski Racing Victoria hosts four Point Score events annually at Lake Charm. REMPLAN analysis shows these events to be worth $38,000, resulting in a loss of $152,000. Community groups have been significantly impacted as a result of COVID-19 with limited ability to raise funds. Groups have had to use limited cash reserves to continue to operate. Without events, many groups have limited capacity to contribute to their many community based projects. 2 LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 051 Many events have not yet recommenced, sighting the difficultly of navigating COVID Safe requirements and the uncertainty of future lockdowns. This has impacted on the confidence of many community groups. Some events have recommenced since restrictions have eased, but organisers have experienced increased costs to become COVID Safe compliant. Social Impacts of the pandemic on the Gannawarra’s tourism and events sectors. Events within the Gannawarra are largely managed by local community groups and their volunteer members. The opportunity to come together to plan, collaborate and conduct an event creates connection, happiness and wellbeing. Studies have shown that volunteering is good for your mind and body, it increases your sense of purpose, combats depression and helps you stay physically healthy. The cancellation of events has reduced the social connection and the many benefits associated with volunteering. The COVID-19 pandemic has seen some groups experiencing a decline in numbers as older members aren’t comfortable volunteering post-COVID. The COVID-19 pandemic has placed an additional burden on community groups to become COVID Safe. Many volunteer groups are tired and frustrated that they have not been able to maintain their services. There is the potential they may not return to their roles putting further pressure on community groups. 1. Support for the events sector. 1.1. Community groups require funding support for administration. Many of the volunteer groups don’t have the administration capacity to adequately manage the COVID Safe requirements. This is putting increased pressure on volunteers who run the majority of community events. 1.2. There is pressure on community volunteers and Council staff to guide people through the myriad of regulations. A Regional Support Officer could be employed to assist community groups with the administrative requirements, regulatory aspects and marketing and promotion. 1.3. Community groups require funding support for marketing. There is uncertainty across the regions around the status of many events. Some are cancelled, some are reduced and some are rescheduled. Community groups need funding assistance to develop strong marketing campaigns that promote and publicise their events. The events sector is a strong economic driver in the Gannawarra contributing to the accommodation, hospitality and retail sectors. 1.4. Long term regular events such as the Murrabit Market should have access to funding to maintain the structure and financial stability of the organisation. Many of these community groups that operate monthly have large workloads and budgets requiring a degree of paid employment. Some funding support would give them the confidence to regroup and refocus on getting the events back up and running. 3 LC EIC Inquiry into the impact of the COVID-19 pandemic on the tourism and events sectors Submission 051 2. Support for the Tourism Sector 2.1 The local tourism sector desperately needs visitors to return. There is opportunity to attract new visitors through an intensive destination awareness campaign OR through specific assistance at a regional tourism level. A 40% downturn will take a lot of getting over and maintaining hope and confidence is critical in an uncertain environment. 2.1.1 Cash incentives for small regional tourism businesses to keep them active in the market. 2.1.2 Cash incentives to undertake marketing campaigns. 2.1.3 Access to business facilitators to provide specific business assistance. 2.1.4 “Camp COVID” a free regional tourism forum/conference aimed at energising tourism businesses. 2.2 Regional Victoria needs assistance to market to metropolitan Melbourne. For too long metropolitan marketing has not been accessible to the smaller destinations due to the costs. Now is the ideal time to open up the regions to metro markets. 2.3 Co-ordinated marketing activities based in regions. Small businesses often have limited capacity to manage the added burden presented by COVID and further support and training in marketing and services would be beneficial. 2.4 Cross border communities faced a range of issues during shut down. An improved Cross-border agreement to support effective local solutions and minimise disruptions is required. 4.

Load more